Transcripts For RT Boom Bust 20240712

Epidemic your my father should have been met would have meant to help special and i have big old industry he did not deserve big was treated like an animal a local media have shared on internal Police Report in which the officers actions were described as appropriate and consistent with their training however the mayor of rochester ny on stone thursday about the policemen involved in the death of daniel proved have been suspended i am suspending the officers in question today what i saw in that video. Was a man who needed help. A man who needed compassion a man who needed humanity. A man who we should have been suspected. A man who was in crisis. Our response to him. Was wrong. Next on our to International Week of Business News squeezed into less than 25 minutes your recap starts right after the shortest break season. I. This is boom bust the one business show you cant afford to miss branch of boring washington coming up jobless claims in the United States have fallen to their lowest point since the beginning of the copa 19 pandemic straight ahead we dive into the numbers and follow the trend on the cases as they continue to fall plus volatility has surged over the last few months causing safe haven assets to jump but it is the bull run here to stay later on were going to bring in some expert analysis to break down the performance of safe havens and the gold big point divide with a packed show today so lets dive right in. And we lead the program with those better than expected job numbers out of the United States new jobless claims came in at 881000 for the week ending the 28th of august according to United States Labor Department now analysts had expected 9950000 new claims for the week continuing claims thats the measure of those who have filed claims for 2 weeks or more fell by 1240000 to just over 13000000. 00 total now meanwhile as Congress Debates the next steps for a kopek 1000. 00 relief package the Congressional Budget Office is projecting the countrys deficit will triple in 2020 to 3. 3 trillion dollars now federal debt will account for 98 percent of Gross Domestic Product in fiscal 2020 and the largest percentage of g. D. P. Since 1945 the c. B. I. Also expects federal debt held by the public will eclipse the size of the overall economy by the end of december for more on this and other Economic News of the day lets bring in blue bus cohost christie now christie we have a lot to go over here as the federal deficit is projected to spike exceed annual g. D. P. Next year that will put the u. S. Where it was in the aftermath of world war 2 whats going to happen then kristie. Well this one to me really interesting because after world war 2 we had a massive growth and that was predominantly. Done by the u. S. And also with china we relied a lot on the trade between like u. S. And china in order to revive growth in order to boost a lot of that post the world war 2 in order to prevent this massive recession in order to get us out of the deficit but the problem is right now the entire world has kind of plateaued in this because theres no country that is currently in this v. Shaped recovery that every single economists predicted and theres absolutely very little chance that theres going to be a vaccine ready by the end of this year as many people have been optimistically hoping for so in that vein there is going to be a lot of heavy reliance on the u. S. As the global g. D. P. Power in order to try to in order to try to spur on additional growth but and right now with the conflict between us and china its going to be very detrimental because thats going to fry the entire relationship built on the past 10 years of trade between these 2 economic superpower so were going to get into a little bit more here about china in just a few minutes here but kristie i did were ask you about this one its a big fat red day on wall street the dow was down more than 800 points at one time actually swinging a 1000 points today what is behind this massive sell out sell off on thursday. Well this should sell off pretty hard with the s. And p. Down over 3 percent in the past ive got over 15 percent and the vix also trade about 30 for the 1st time since july as traders kind of loaded up on put some protections against a very sharp market selloff today so tech was primed the primary reason behind the sell off as we mentioned several times before this rally has been predominately led by tech and not much else so it was quite limited in terms of breath and scope and it really wasnt supported by much anything else aside from big tech so as a result tech has been basically untethered from the fundamentals for a while driven up by pure speculation and momentum but all that momentum had to come to an end on thursday you have all the big tech names and. Microsoft apple zoom and tesla losing between about 3 to 10 percent as the recovery has started to stall so a lot of that you have reduced Government Spending now as the expiration of extra Unemployment Benefits could trigger a drop in Consumer Spending and lawmakers are still not reaching any agreement on new spending packages after talks have stalled so all of that uncertainty is now playing into the sell off as a market which has just been afloat it up on all this extra stimulus now it isnt really getting any so were getting a little bit of a correction today chrystia there was some news thursday afternoon the trade deficit in july surge 18. 9 percent to 63600000000. 00 the highest level since july of 2000 and of course amid the Great Recession here in the United States now imports rose by just over 22000000000. 00 while exports increased by 12600000000. 00 now is this spike in trade deficit is it really due to the pin demick or are there other factors at play like that trade war we just talked about a little bit ago. Well a lot of this is also this additional level of protection i was on that has been spurred by this pandemic because all of this pandemic created they created this Chain Reaction from every single country because essentially the largest supply chain that the world has built up has been disrupted china so a lot of this you have every single country rely on china for manufacturing for Consumer Staples for a lot of crucial Electronic Components so because of the pandemic and because the stall that we had earlier this year every single country kind of realize at the same time weve become too reliant too overly dependent we have actually have to start producing some of these materials ourself so that has kind of spurred a lot of development internally for every single country and while part of it is rising protectionism from every single country and a lot of it is due to the fact that a lot of countries realize hey maybe total globalization isnt such a good idea so that is why trade has started to slow down a bit and on that note as tensions with china actually continue to rise japan india and australia theyre taking steps to reduce trade dependence on china tell us about whats happening there. So japan india and australia they are all Major Trading partners with china but however as global tensions continue to fray the commerce and Industry Leaders of those 3 countries they have raised the need for a more fair and predictable trade environment as you just talked about so this new Development Comes amid escalating us china tensions a standoff on the china and in border and an increasingly strained relationship between beijing and australia as well so these nations have realized theyve been to depend on china for trade and they have suffered 8 greatly this year from the massive supply chain disruptions which highlighted this need for more diversification and additional outlets so a lot of analysts are still very skeptical that this move will have any real impact at all because in the past india and japan they have all signed various free trade agreements they have lower tariffs with partner countries while also denying those in. Exact same privileges to china ultimately has never achieve this intended objective as goes just continue to flow from china so right now japan is taking the lead in this cooperate of effort as they are its largest importer importing about 169000000000. 00 worth of goods from china last year which accounts for about 24 percent of its total imports so if china stops production as a did during the pandemic that Economic Activity in japan is highly impacted still now between those 3 nations and also the u. S. It kind of forms what we call our cation in the Pacific Region there are signs now that the quad is on the verge of becoming a Security Group so all 4 nations are going to deepen their bilateral defense and security partnerships as the u. S. Is now contemplating decision to invite the air forces of australia and the end upin to the air force to conduct training and interoperability between the quad air forces so such action taken by them would fuel beijings narrative that the quad is turning into more of a military alliance meant to contain and threaten china then i want to actually kristie bring in john dean of the Miami Herbert Business School we had a little technical difficulties but we have a now do quote thank you so much for joining us and i want to ask you about the trade deficit that we were just discussing what do you make of this rise in the trade deficit the highest level since the midst of the Great Recession what are you seeing there being quote. Well i think there are a couple of elements to it one is the suppression of demond in the united. Bigger problem the suppression of manufacturing in the United States during the disrupted period of the crisis but at the same time of course the government stimulated the economy with the provision of the the additional 600. 00 a week checks etc and that of course enabled many households to sustain the normal level of spending in addition of course there was a considerable loss in overseas as for example in the the travel and hospitality sector so i think its explicable of short. Shorts. Supply and demand issues i dont suspect that it will necessarily be sustained we wont see month off the month off the month of deficits Going Forward i dont think but of course the the low level of the dollar versus the euro doesnt mean that u. S. Exports are advantaged and the cost of imports from europe for example is marginally higher and whats your take on india australia and japan all making efforts dean quotes to actually circumvent china in the supply chain. Well i think what whatever you may say regarding president trumps posture on china its no doubt empowered other nations that have been feeling behind the scenes nervous increasingly nervous about the rise of china to step forward publicly and make moves that limit the the as they say at the Security Risk incursions of china via mobile apps in the case of india robust cohost kristie idea john quotes thank you both for that expert analysis today. Thank you thank you. The u. S. Centers for Disease Control and prevention has notified states to prepare to distribute a possible koeppen 1000 vaccine by the 1st of november according to documents from the agency published on wednesday now in a letter to governors dated the 27th of august c. D. C. Director Robert Redfield wrote c. D. C. Urgently requests your assistance in expediting applications for these distribution facilities and if necessary i ask that you consider waiving requirements that would prevent these facilities from becoming fully operational by november 1st 2020 now this comes as the u. S. Government has funded billions in Vaccine Research meanwhile the nations top Infectious Disease specialist Dr Anthony Fauci responded to these reports saying while it is conceivable he does find it unlikely that there will be a vaccine by the end of october and with this in mind lets take another look at the trends and spread of the virus globally with our correspondent side tablature so where are we thursday. Just 34. 00 pm more than 26300000. 00 confirmed cases globally and more than 18500000. 00 have recovered so about 70 percent of are covered while more than 878000 deaths now just in the u. S. Alone theres been over 6300000 confirmed case says with over 190000 related deaths now with that i want to take a look at the daily new cases and deaths in the u. S. And how the country is doing compared to a few weeks ago so 40607 new cases reported on wednesday which makes it a weekly average of about 41618 so thats a decrease of 12 percent from 2 weeks ago. So but only a decrease over point 06 from last week now we need to do a much better than that point 06 percent in order to show some sort of improvement you know dr the nations leading Infectious Disease expert has emphasized that cases need to be below 10000. 00 per day to show that the country is heading to the right direction now lets take a look at how redoing with the daily death rate so on aug 30th and 31st which youll see right over here it appeared to the nation was doing a lot better you know we had less than 500. 00 deaths per day and then on temblor 1st we started hitting the 1000. 00 mark once again and then on wednesday september 2nd the us reported 1164. 00 new deaths so once again were headed into the wrong direction with he says and thats nowhere where we need to be brant no sorry were getting news out of the middle east regarding the spread there whats happening while the u. S. In the middle east is not doing well at all so here are the numbers for the cases and doubts for the 5 most affected countries in the middle east iran right here and now theyre hit the hardest country in the middle east and then also had the regions our 1st major outbreak so far theres been over 21000. 00 deaths with over 380000 confirmed cases and then Numerous Health experts also believe that the death toll to 21000. 00 is actually about 5 times higher than being whats being reported meanwhile all students in iran are expected dirt turn into classrooms this saturday now meanwhile saudi arabia which has a population of about 30000001 3rd of iran there almost a matching in terms of cases but their deaths the rate has been a lot lower so thats good now number 3. Comes in our pockets don theyve also got a very high case number but a very low a death toll which is many contribute to the countrys age demographic because their medium age and pocket sign is only about 22 and to give you a comparison italy had a medium age of 5047 scuse me which has recorded more than 35000 deaths while pakistans of fishel death toll is a little over 6300 now and then plus with the already extreme high unemployment rates the impact of the pandemic has been very critical on the social and economic stability of iraq now could tara on the other hand is a very different story there are extremely wealthy country with just a population of 2800000 people so while they have a very high case count with over 119000 as you can see their death toll is extremely low then lastly then there is war torn nations like libya and yemen that are almost impossible to get a proper count on how many are actually infected as testing is extremely limited brant r. T. Correspondent thank you for that excellent report. And time now for a quick break change here because when we return volatility has surged over the last few months causing safehaven assets to jump but the bull run here to stay later on we bring in some analysts to break down the performance of safe havens in the cold war divide that as we go to break youre the members of the club already are a couple. Throughout its history the hardest with the selfproclaimed Islamic State terrorist group have recruited up to 30000 fallenness 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. The. Hundreds of children and widows were held captive disappeared. In russia those children families wait and search for. Anyone who is a real careful those who say well we made it possible to have the best work and growth in the world. Yes but it hasnt been sure. And the answer is no the rich get richer the workers stay. At the old. And the poor no one is taking care of joe characters and their service criticism. Basically on the inherent inequity of the sharing of the game. Welcome back d a new report from the World Gold Council claims that golds latest balrog has come to fess but still has room for growth now according to the deputies see the combination of higher. Certainty easy Monetary Policy very low Interest Rates positive price momentum the depreciation of the u. S. Dollar and fears of higher inflation fueled record flows of 734. 00 tons into gold backed e. T. F. E. T. F. Said in the 1st half of this year now meanwhile the u. S. Dollar has started to rebound from a multiyear support level simultaneously the prices of both bitcoin and gold have dropped off so joining a start is just the bus coasting crypto analyst ben swan and c. E. O. Of Euro Pacific Capital peter schiff thank you both for being here now peter i want to start with you what do you make of this w g c report and where is gold headed. Well 1st of all golds had a lot higher i agree with the report and the price of gold is going to go up i think the World Gold Council thats actually under estimating just how high the price is going to rise because i think theyre also underestimating how much inflation global Central Banks are going to create in particular the Federal Reserve and how much value the u. S. Dollar is going to lose against other currencies but in particular against real money which is goal and i got to quit because i have to ask you this peter you have often been here touting the the popularity of gold why you should invest in it is there ever a time where you feel like its not the right investment. Well 1st of all i dont even look at gold bullion as an investment i look at it as a store of value as an alternative to cash so i think its always makes sense to have some cash right i mean especially if you think assets are expensive if you think stocks are overpriced if you think real estate is overpriced and you dont want to buy now you want to buy later how youre going to store that purchasing power i think storing it in gold historically is much better then just relying on a piece of paper even the best currencies i have a poor track record relative to gold so if you understand. Gold is then you should always have some but right now i think its particularly important given how much money the Central Banks are pretty particular the fed i think gold is going to make a much normal a bigger rise against the currencies but as an investment i think that investor should be a gold mining stocks i think Warren Buffett had it right by buying bear gold which i own myself and ive owned for a long time but theres a lot of other gold stocks that i think are particularly Good Investments right now given how much value i think gold is going to gain in the months and years ahead sometimes you have to go to square one i just have to cover that quick ben now since the dollar increase from its. Opening on september 1st the price of big decline from 1280621116 extension 0 now gold has seen a similar response to climbing by nearly 1. 8 percent in the past 2 days is strengthening dollar going to end because current surge. And though 1st of all i think that when we especially when were looking at what peter just said about inflation these numbers dont take into account as remember the federal the fed reserve chairman drone policy just came out a few weeks ago and talked about you know altering and changing the feds stance on inflation and letting it run moderately above 2 percent all of that linz itself into both that coin and gold would just simply are acting in different ways but both as a store of value assets now listen we can disagree about whether which one is better and which one you should go into but heres what i know i know there are a lot of companies right now that are starting to move some of their money over into crypto currencies and because theyre afraid of what the fed is doing to the dollar so listen this is a long term gain and if were talking about long term gains the fed is not winning a long term gain they continue to print money devalue the currency and continue to essentially run the american currency into the ground and i think its fair to say that you both agree that currency is not the way to go i mean as far as holding the store of value there but peter what do you make of what ben just said there. Well i mean 1st of all i agree with him that i dont think it matters what the dollar does ultimately to bitcoin whether the dollar is strengthening or weakening against other fia currencies i think ultimately bitcoin is going to collapse underneath its own weight i just dont think bitcoin is a viable alternative to gold i dont think its a store of value i agree that there are some people who mistakenly believe that it is and so they may buy it i think ben is overstating how much institutional money is actually moving in to bitcoin i think its a tiny amount and i think that to the extent that institutions pension is adamas are going to be correctly worried about inflation and a weak dollar they are far more likely to go to gold then to bitcoin as so i just was stay out of it i mean you could trade it but i think if youre going to trade you know trade the mining stocks i think youve got a lot more upside potential there if youre a gambler and i think theres less Downside Risk now ben cohen did fall on wednesday by 4 percent but it defended home held support zone of 11111200 ish are we going to see an even larger pullback over the next 2 to. Well we could see that but i dont think were going to drop well below that 11000. 00 mark but its got to go back to what peter saying there look i think there is a lot of disagreement over whether or not truly is a store of value and institutional money but there is so Much Technology being built around block change right now and consequently attaching itself to big crypto currencies i think that you cant ignore the fact that there is an enormous technological value and technological assets being built around the corner right now and its been that way for several years so when people do look at the way that that point fell off at the end of 2017 going into 2018 and say oh look its going to all the way back to 3000. 00 again i dont think that thats going to happen based upon the fact that the technological space around is very different today than it was a couple years ago peter go ahead yeah. Yeah that well that may all turned out to be mal investment that was a consequence or a byproduct of the bubble and to the extent that that technology has value it doesnt necessarily mean that bitcoin itself has that value i think its just a speculative additional token peter schiff of Euro Pacific Capital ben swan boom bust the crypto analyst thank you both for your time thank you sure thing. And Facebook Says it will halt new political advertisements in the weeks leading up to the u. S. President ial election on the 3rd of november now that social media giants cofounder and c. E. O. Mark zuckerberg announced the new policy thursday by a statement facebook also says they will work to make sure no candidates prematurely claim victory as a liberal Election Results may take days to come in due to the ongoing pandemic and the changes to the Voting System social media site has been instituting contentious policies to fight misinformation since the 2016 election Facebook Stock is down more than 4 percent on thursday but this is mostly attributed to the overall meltdown in tech for the day that we talked about earlier in the show and that just how do you judge who bought on demand on the brand new portable t. V. App which is available on smartphones a tablet through google play and the Apple App Store by searching portable t. V. Portable t. V. Can also be downloaded a newer model Samsung Smart t. V. s as well as a roku devices or simply check it out a portable t. V. Well see you next time. During the vietnam war u. S. Forces. There in laos it was a secret war. And for years the American People did not know. How much it is actually. Country per capita. Human history millions of unexploded bombs still in danger lives in this Small Agricultural country 200 i dont. Even today kids in laos full victims of bombs dropped decades ago this is the us making amends for the tragedy in laos wont help to the people need in that little. When else shows seem wrong. When old rules just dont all. Mean you get to shape out these days become educated and engage with equals betrayal. When something find themselves worlds apart we choose to look for common ground. But its that we have already commenced business and said we have nothing to hide russias Foreign Ministers says moscow continues to urge germany to share whatever information they have heard on the alexy novell need case thats after nato call for an International Probe into the alleged poisoning of the russian opposition figure. All to russian scientists prepared to start the 3rd phase Clinical Trials of the countrys 1st corona virus vaccine thats often the said medical journal concludes that the drug name sputnik v. Produced an antibody response in all participants during early stage trials. On indeed doubts 1000