Transcripts For RT Boom Bust 20240712

Revised estimates of 2nd quarter g. D. P. And said it fell at a 31. 7 percent annual rate thats slightly less than the 32. 9 percent that was originally reported lysol comes as lawmakers have yet to reach a deal on a new Coronavirus Relief package. Meanwhile the Federal Reserve announced thursday plans for a new framework that will likely allow them to keep Interest Rates lower for a longer period of time will. Change their view a little later on inflation rate of 2 percent is most consistent with our mandate to provoke promote maximum achievement and price stability finally we continue to believe that Monetary Policy must be forward looking checking into account the expectations of households and businesses and the legs of monetary policies effect on the economy thus our policy actions continue to depend on the Economic Outlook as well as the risks to the outlook. Well for more we turn to boom bust cohost and investigative. Line ben lets start with what the obvious here now now Federal Reserve new framework what does that exactly mean. If the new framework basically means that the Federal Reserve is completely changing how it views inflation how it views its role in america essentially meaning that whatever the rules were for the last 10 years are no longer the rules the way that the fed has essentially approached unemployment the way that the they have approached this mandate they have from congress which im not sure i agree with of helping to reach full employment the way that they essentially view the economy as a whole and their own policies which i think a lot of people are arguing including myself are actually hurting the nation in terms of fiscal responsibility in terms of the value of the dollar that all those things are essentially being thrown out the window and theres a whole new way according to drone pile of looking at the Federal Reserve and what it does and essentially saying that markets can be treated in a completely different way than they used to be treated almost acting as if theres been some kind of evolution in the markets that mean that the old rules no longer apply and i dont think i agree with that well informed claim it used to be at one point about 4. 5 percent now theyre looking at their a possible Different Number and looking at what theyve done and what obviously hasnt worked but Federal Reserve chairman Jerome Powell says that this move its in line with the feds mandate to to help reach like you said the full employment listen to what he said a revised statement emphasizes that maximum employment is a broad based and inclusive goal this change reflects our appreciation for the benefits of a strong labor market particularly for many in low and moderate income communities. In addition our statement says that our policy decision will be informed by our assessments of the shortfalls of employment from its maximum level rather than by deviations from its maximum level as in our previous statement this change made are subtle but it reflects our view that a robust job market can be sustained without causing an outbreak of inflation is this really going to help these communities hes talking about. I dont know that it necessarily well 1st of all i got to say that the whole announcement from drone power youve got to admit it seems super weird writing sounds like a robot of the ways talking is very stiff hes of are citing numbers in a very bizarre ways the whole thing in and of itself is strange but essentially i think when you break down what hes saying what hes really saying is we can continue to pursue the policies weve been pursuing which is printing massive amounts of u. S. Currency holding Interest Rates at near 0 and no worry about it because it wont cause inflation thats essentially what hes saying and that if there is a little bit of inflation just a little tiny bit its ok its not a big deal we can manage it when in reality what were seeing is the devaluation of the dollar not just here in the u. S. Were going to see it massively devalued as far as the way other countries view it we know sarah you and i talk about this all the time that other countries are decoupling from the dollar as quickly as possible countries like china and russia India South Africa brazil those brics nations getting away from the dollar is quickly as possible were watching gold increase at a rapid pace were watching cryptocurrency increase so all of that i think plays into the fact that what Jerome Powell is telling us is not the reality of how other nations or investors are viewing this hes saying one thing when the reality i think is something totally different while looking at this as a historic. Plan to what the Federal Reserve a thing that they want to keep the average the average rate at 2 percent meaning that it can go a little higher what would that even look like. Well thats what we dont know right because what theyre telling us is it wont look any different than right now what theyre essentially telling us is we can change what historically we have done in the past and its not going to really affect anything and and businesses will come back and jobs will be there and dont worry but the reality is and you and i both know this as well that the effects the market effects and forget about wall street the market effects in terms of Small Businesses in america entrepreneurs in america the job situation in america we have only begun to feel the effects of what these lockdowns have done so while wall street is jumping up and down and kind of moving and as christie likes to say good news is bad news and bad news is good news in reality what the fed is not taking into consideration are these essentially waves of unemployment that are yet to be felt the waves of. People losing their jobs the waves of people being removed from their homes and losing out where they live all of those things are going to hit the market in a substantial way in the coming months we havent even felt those yet but what drone policy telling us in his best robot in person ation is that in fact nothings really going to change and its all going to be the same and trust us because were the Federal Reserve and we have the power i mean take it so i mean technically lets play devils advocate here we know how you feel about the Federal Reserve right but im not a fed up to help the free market in a free market. No i dont i dont think they are i think theyre set up to help the market and theyre certainly in a position where they help those who control the markets big businesses massive banks they are all fed by the Federal Reserve but remember the Federal Reserve is a private entity it is not a Government Entity and so it acts as a private entity but it has control over Monetary Policy for the entire nation that is bizarre in and of itself why is a private entity in control of our money supply in control of Interest Rates in control. Of the value of our currency and yet again there are private companies that they actually have no through this year a duty to the taxpayer well ben i want to bring an dean of Miami Business School dena john quality to join in on the conversation quality i appreciate you being with us today we know how ben felt about the speech here today it was somewhat strange i will admit what was your take. Well i was very much enjoying listening to bens commentary i think i have a slightly more moderated view i think actually the. Federal reserve has been doing a good job of monitoring the inflation situation i think making the tradeoff that moving towards an average inflation rate as opposed to setting a 2 percent maximum ceiling is a way of liberating Market Forces and facilitating assuredly lower costs mortgage interest loans lower car loan costs and thereby stimulating the economy and hopefully getting some of the enormous number of people 27000000 people also back to work as soon as possible and taking a risk here on the stimulating inflation in order to correct the unemployment situation and i believe its a well judged move. Quite the opposite from what we heard from ben these qualities i want to shift gears here a little bit about that President Trump saying that through the covert relief package he signed into law that the administration actually saved over 50000000 american jobs how accurate if at all is this assessment. Well i would never want to comment on the accuracy of the president of the United States but let me just say that we had some commentry later that clearly stated that the 51000000 is the number of jobs in all companies that were approved for a p. P. P. Loan by the by the government and so its a little bit over a getting the all millet to claim that all 51000000 jobs were saved as a result of these loans but that is the fact on the lying the source of the 51000000 statement well. The unemployment numbers are continuing to climb this week theyre still up over a 1000000 like we saw im sorry from last week the week prior to that Unemployment Benefits are not what they used to be weeks ago how is this going to go moving forward. Well certainly the theres a great difference of opinion of course between the democrats and the republicans about what the level of stimulus needs to be and the democrats essentially went for 3 trillion dollars republicans went for one trillion the democrats tried to split the difference of 2 trillion the republicans declined that offer and have now put forward a package represents around about 500000000000. 00 not likely to be agreed upon i think by the democrats but in that package there is provision for the extent that for the extension of the added on employ. Human benefits but at the level of 300. 00 slash 400. 00 rather than the 6 on 100. 00 that was in the original package no doubt if that would proceed or if nothing would happen there will be more and more on employed americans who will be up against the wall in terms of exhausting those savings in order to keep their rental rental payments or car payments afloat and a lot of them already have and the numbers are supposed to continue to go up if theyre coming down any time soon john quality of the Miami Harvard Business School thank you so much for your time who must cohost ben swan stick around were going to have you on later in the show. Has been. The worlds richest man just got even richer while amazon c. E. O. Jeff bezos is now worth an estimated 204000000000. 00 which keeps him in 1st place for the richest man on the planet a title hes had since 2017 but hes not the only one whos making money in the middle of a pandemic will arties fear and fronsac joins me now to discuss fair and 204000000000 what do you even do with that kind of money i know seriously you know he really is the most loved and hated person in america right now because i mean he did bring us amazon but hes also made almost 90000000000. 00 just throughout this pandemic since january and hes changed the game completely and whats funny is bass was actually would have had more money but he went through a little sticky situation last year a divorce where he actually gave his now exwife 25 percent of amazon stock now worth a whopping 63000000000 so when the divorce was actually finalized his exwife Mackenzie Scott officially became the 14th richest person in the world overnight 2nd Richest Woman but as you mentioned bezos isnt the only one you see here youve got jeff bezos 204600000000 youve got bill gates with microsoft 116 were. Our our knowledge 115 zuckerberg with facebook 109 and then elon musk with tesla and you can actually believe that there are now more sente billionaires on the planet than ever before and that actually got me thinking you know right now we have about 30000000 americans who are unemployed as you mentioned before during this pandemic and while the house and the senate failed to even meet and talk about a 2nd stimulus payment to help those people out if they did find 25000000000 dollars for the post office believe it or not it got me thinking what could these billionaires do with the money lets do some math if they each gave 10000000000. 00 for some of them a drop in the bucket do the math 50000000000. 00 divide that by 30000000. 00 those 30000000. 00 unemployed americans could each get about 16 founder of the oculus exactly and thats something that americans definitely need to you know today so almost a month ago to the day you did have jeff bezos he was in the hot seat testifying before the House Judiciary Committee where he was called out for basically killing your brick and mortar mom and pop shops now this was his answer or lack there of when he was asked point blank does amazon have access to 3rd party seller data on its platform well heres the response. Check cant answer that question yes or no but i can tell you is we have a policy against using solar specific data to aid our private label business but i can guarantee you that the policy has never been violated do Category Managers have access to nonpublic data about 3rd Party Products and businesses. And the fact that we have such a policy is voluntary at the no other retailer even has such opposing. Policy we would treat it like any internal policy and if we found that so inviolate it we would take action against them you have access to data that your competitors do not have so you might allow 3rd Party Sellers onto your platform but if youre continuously monitoring the data to make sure that theyre never going to get big enough that they can compete with you that is actually the concern that the committee has. And there you have it nothing while what was even more disturbing about that hearing bezos richest man in the world wasnt even asked a question in that big tech hearing you had apple Facebook Google not a question until 82 minutes in really people really you know it was interesting in here much from him but lets shift gears here a little bit fair and speaking of you know when the middle of a pandemic and the rich are getting richer california is actually voting on a new law this week and it could potentially really buy these Small Businesses that are already hurting in a lot or have already been you know abolished by the pandemic you know its 2020 just keep you know mess and more and you know youve got california its the Consumer Protection bill a a. B. 3262. 00 it what it would do is that any on line or Electronic Retail marketplace would actually have the same liability standards as those brick and Mortar Stores now meaning lets say you buy a product that harms or hurts you you can sue the company that you bought it from however c. E. O. Of Etsy Josh Silverman he says that this is going to wipe out amazon competitors completely because amazon is strictly a middleman when it comes to their Business Model adding that amazon supports this bill and bad face them saying quote amazons goal is to be the only place to buy stuff online hobbling mom and pops that sell unique items in their own shops or more frequently since kovac through marketplaces like Small Businesses struggling now more than ever will ultimately bear the brunt of the overbearing burdens of a 30. 00 to 62. 00 amazon does say that it does support this bill only though if it quote holds an online marketplace all my marketplace is liable regardless of their Business Model but you know lets be real amazon knows that it can take on any of these lawsuits its got a ton of money and now jeff bezos with 204000000000 its interesting 100 or ability when you look at all their pictures they all have the worst haircut too and then with no hair no so at all 304000000000 really what would you do without my r t correspondent. Thank you for being with us. Time now for a quick break but states. Because. The world. Will take a look at the numbers and see how countries are in. Trouble. But what. I. Throughout its history john just with the selfproclaimed Islamic State terrorist group have recruited up 230000 following us from all over the world to fight for the. Sounds of russian citizens left their country to join the terrorists often bringing wives and children with them. From the ninetys imposed on you you see that as a good move. On you the. Hundreds of children and widows were held captive all disappeared. Back in russia those children families wait. If you go to the symphony in industry is warming up and each. Is tuning his or her instrument so you hear this year all these sounds or go as but it but its its a constant its disorganized and then the band the orchestra plays and you get music so what the brain does what the maker 2 mules do is organized orchestrated these one collapses. Is your 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. What is true. Is. In the world corrupted you need to descend. To join us of the dead. Or remain in the shadows. On wednesday the u. S. Commerce department added several Russian Research entities to its sanctions list alleging involvement in chemical and biological weapons while the list included a Russian Defense ministry facility working on testing the Coronavirus Vaccine well the agency deemed the entities to be acting contrary to the National Security or Foreign Policy interests of the United States while unlike other sanction programs the move imposes new licensing restrictions on Russias Embassy ambassador or at least new restrictions on the United States well u. S. Russian ambassador to washington took to facebook and rejected the allegations saying it seems confusing to us especially since no evidence was presented well familiar vague terms are used such as there is a reasonable cause to believe we would like to receive some clarifications from our colleagues regarding these groundless allegations. Because in 1000. 00 pandemic has wiped out industries across the board and perhaps none more than travel and tourism well as a result of the outbreak the United Nations has forecast a loss of more than one trillion dollars in losses around the globe in the sector. Which has already led to massive employee layoffs and while travel has slowly begun to resume around certain parts of the world strict Safety Measures remain in place limiting the amount of travel but are permitted to enter or leave certain countries for a deeper view lets turn back to boom bust. Of journalist ben swan ben lets start with europe where travel has been slammed a new world travel and Tourism Council actually reports that estimates are us to meet the u. K. Or lose nearly 29000000000. 00 from its economy this threatens about 3000000 jobs in the country what is the u. K. Government doing to address this head. Well of those 4 and all they can really do is deal with stimulus because unfortunately not just in the u. K. But all across europe there isnt a whole lot thats happening in terms of reopening travel routes or getting tourism back up and running and thats because most of europe including the u. K. Is still under a series of lock downs and economic lock downs as well as social distancing so theres a lot of concern about what this looks like in fact most analysts are looking at it saying that the travel industry for europe and specifically for the u. K. Wont be coming back until at least the middle of next year which means that the losses will only be compounded at that point and there are a lot of low Cost Carriers including in the u. K. That are looking at having to shut down completely so whether or not there are Certain Companies that even survive all of this remains to be seen well and we know the recovery is obviously facing this battle of europe theyre seeing in our recent 3rd and co 19 cases spain france and germany theyre logging their highest daily cases since april do you think that this recent uptick it has to do with that travel. I dont think it has to do with travel in fact because theres so little travel thats actually taking place the reality is this if were going to get outside of the politics of it in most of these cases it seems like what were being told about staying at home is not preventing the spread of coronavirus in a lot of these countries thats why over the weekend there was a huge protest in the in the nation of ireland where thousands of people turned out saying that they want it in the lockdowns because its hurting them and its not preventing the spread of corona virus a lot of other countries are starting to take to the streets it to you know that same reason theyre saying that its not stopping the spread and a lot of these countries are never going to shut down completely again because they know what it did to their economy but in china air travel has actually increased at least domestically as were going to forward keys airports actually reach 86 percent of 21000 levels earlier this month now its expected to fully recover by next month but still International Travel log. Isnt expected to recover even come back for years should we forget overall about International Flights for the foreseeable future and just stick to domestic traveling and i think for china in particular thats ok because china has such a strong domestic air travel program and so many people travel by air between cities in china that it really wont hurt them they can mitigate those costs especially when it comes to those International Flights so i think youre right about that they can kind of forget about the International Travel part of it because where youre going to go from there i do know that in terms of the International Travel china is offering incentives especially to students around the world trying to get students to come into china but whether or not they are taken up on that remains to be seen thats fair he true now i do want to get to this weve talked about this before how you know the american passport no longer is what it used to be you were banned from visiting many other countries around the world most are actually vacationing domestically there is something that caught my eye though on the some that are caught actually breaking rules an american thats actually facing fines for violating travel restrictions to our neighboring country canada. Yeah this young guy who apparently is in trouble for sneaking into a National Park twice each across the border broke the rules in order to get into a National Park which doesnt make a whole lot of sense but if you look at whats happening in terms of canada and mexico by the way you know that some administrator has put very strict rules on nonessential travel coming in from canada from mexico in mexico in that case youre talking about wait times at the border of up to 10 hours for people to cross the border and if youre in a border city that is absolutely devastating to local businesses exactly and that the u. S. For example in california san diego border is one of the biggest in the world most traffic is at that border those closures have been extended i think 2 or 3 times now but there are still people trying to travel back and forth who are facing some sort of fine or punishment the west coast an investigative journalist bent on thank you for your time. Thats it for today but you can catch us on a boom bust on demand on the brand of horrible t. V. App which is available on smartphones and tablets it will play and the Apple App Store by searching portable t. V. In the troubled 19 seventies a group of killers rampage through parts of Northern Ireland that was coordinated loyalist attacks protect the only catholic population tens of thousands are forced to flee their homes to put these attacks was a p. R. You see the Police Actually took part in the attacks so instead of preventing it they were active participants in the burning of coal streets in belfast at the time more than a 100 innocent civilians were. As the review can seniors and we found out more i was surprised about the extent. To which the solution was involved in some of those cases they killers would later be named. Getting i think it went to the very very top i think it is for all the water where all the take you on and give the go ahead. The oprah show here they are so being you. Yes for. Yes yes. Or a. Preposition here is a look to repeat here for just. A pretty girl would just be your boy yes or a soldier it is a good day for us to believe they didnt hear the word word or words for. These are the stories of men who cant imagine 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. A more of us have used it. For its for. There is no such thing as money and there is no inflation and there is no deflation and the only thing there is to think about are Interest Rates and Interest Rate apart devalue the. Gold and you can keep Interest Rates near 0 so that if you are a white guy on wall street your cost of borrowing is 0 if youre a black guy living in the ghetto your cost of borrowing is 2000 percent. And its practiced right here in america and all over the world ghetto of high Interest Rates if you dont borrowing money to 0 percent you live in the ghetto and thats. A very modestly that i have done more for the Africanamerican Community than any president says Abraham Lincoln was black large amount of protests. Look at how politicians are using the rest in this years election. Russias north stream to gas pipeline to germany must go ahead despite tensions over the alleged poisoning of prominent opposition figure. How the british media finds muslims disproportionate coverage in terrorism stories despite all the groups being far more likely to commit attacks