Transcripts For RT Boom Bust 20240712

Stimulus for months but have remained far apart on the amount necessary to combat the pandemic so lets waste no time and bring in towson investigative journalist ben swan and tobin smith c. E. O. Of transforming research to discuss thank you both for being here ben i want to get right to you here since lawmakers from both sides have been saying for months that another round of stimulus is needed why are they so far apart on the details. Or is the cost of this whole thing i mean democrats of come down a little bit this latest you know bill that they put forth about 2. 00 trillion dollars thats about a trillion dollars less than where they had been so there are some compromise there hard to believe that 2. 4 trillion is a compromise but lets take a look at some of the things they want to do here because obviously this includes as you said a new round of 600. 00 stimulus checks but on top of those that new out of 600. 00 stimulus checks comes another round of 1200. 00 stimulus checks for each american. Yes 2400. 00 if it is a married couple its also going to give about close to 500000000. 00 in relief to local governments thats state and city governments also a 2nd round of those p. P. P. Loans and actually it would expand the number of businesses that can actually apply for the p. P. P. Loans on top of that theyre also looking at an issue with the airlines they want to get more relief to the airlines as well that would be on its way in this bill as well as education cos they want to put 75000000. 00 into education as well as new rounds of testing as well and they were talking about Contact Tracing as well as cobra testing so listen theres a lot in here in they also by the way want to add billions more in rental and mortgage assistance into this so look a lot of these things the republicans have agreed to in principle but some of these things they dont want to do they dont like the size of the checks that are going out p. P. P. Loans they agree with but more money into education maybe not so theres a lot of details to be worked out here. How important is it for some kind of relief package to actually get passed here and do you see democrats going too far or really not far enough. Well remember you just said they started it 3 to have trillion dollars i mean you have to put this in context. Were still in this emergency so you cant save everybody i mean yup just came out yesterday and said almost 60 percent of the Retail Stores that they work with around the United States have closed permanently now that business we cant save what we can do is sort of 3 things number one there is no question that the airlines got to get bailed out here they were never set up to be out of business for a year and a half and the Ripple Effect now becomes a political issue because look at where these gigantic airports are theyre in swing states youre going to see that thats a political deal the dems have always held on a 600. 00 a week deal theres no question that for 30 to 40 percent of people thats more than theyre making take home as. It is they have to come down to this 300. 00 or 400. 00 and do it now i mean this isnt posturing and posturing but now this is where the rubber meets the road and the final part of this is that you know the states need a loan they need some type of facility that can come from the Federal Reserve that doesnt have to come from the congress but there has to be a way for them to not have to lay off a 1000000 to a 1000000 to of their labor because then whatever group whatever momentum weve had in this economy with kovac now looking obviously to be deeper in the wintertime were going to go right back to where we were in april we dont passes. I mean we cover on this show virtually every day theres no question here that the u. S. From congress to the Federal Reserve bank has done quite a bit to stimulate the u. S. Economy but how does that compared to what were seeing abroad in europe and elsewhere. Well ok just quick numbers right so theres about 660000000 people in the European Union all together were you know excuse me about 440 im sorry and about 330000000 for us well if you look at it on the reserves our reserve bank has put out 7. 00 trillion theyve their whole reserve on their Balance Sheet and the e. U. Is now 7. 00 trillion so the United States has put out more per capita japan is out there at about 6. 00 trillion add up all those trillions bread its a lot of trillions is about 22. 00 trillion and then we havent talked about the physical so we have to separate monetary from physical but right now what really doesnt matter what that debt is in the United States we have so much savings so much cash out there the banks have bought about 2 trillion dollars of that debt so were actually financing it in our system so i know you have some guests on here that worry that were going to you know the dark ages but we have a system that can take this we cant take is another delay because then people sort of give up hope and at the margin they roll over and when they roll over now we get into election everybody is frozen weve got to act now and its interesting that you make these points that you know the u. S. Has spent quite a bit more than the even the e. U. Has in this situation what do you make of that bet. Well look i think that when we talk about main street i think oh and make it a good point but when we talk about the difference of the main street and wall street what the fed would say is look at all the steps that weve taken and i know they have their main Street Program that they pour money into but ultimately look wall street has kind of fluctuated and a lot of big corporations have done well during this time but mom and pop shops are not doing well the democrats are talking about p. P. P. Loans that they want to expand love that should have happened a long time ago in fact the p. P. P. To graham i would say didnt go far enough was not very successful in getting money to Business Owner small Business Owners who really needed it and a lot of it got sucked up by big corporations in the way that theyre shrunk sure to pretend they were a bunch of Small Businesses which was completely unfair so i think that more should have already been done in these areas and why everything has to be in one giant bill instead of pointing to the things that need to happen immediately why have we already gone almost 2 and a half months without extending the people that people and without extending that Unemployment Insurance thats ridiculous ben theres a 2. 2 trillion dollar gorilla in the room and that is a 1st big president ial debate this evening on top of the election and with democratic lawmakers are putting the stimulus bill forward how much do they actually expect to get passed as we were just talking about there and how much of this is about the politics of an election that is going on right now. I think we can all agree here no matter where we fall in the political side of this everything that happens in washington is about politics i think for both republicans and democrats they recognize as they near elections not just the president ial election but all those house and senate races that theyre going to find themselves in a position where voters say what have you done for me and why have you allowed this to stall democrats need to at least put a plan forward to say you know look were trying to get more money to you republicans have been saying no were trying to also we just dont want to bail out these other groups the problem is every Single Member of congress who has been inactive in my opinion should be should be taken out of office they should be replaced because if you have been that degree and not been fighting for the American People you have no business being there until i want to give you the final word on this about how much of this is actually politics in the state of where we are right now. You know right now its about 90 percent politics the one issue is is that we do know that if we get cash into peoples hands that works we need to focus on that and beds right weve got lost in the weeds and Everything Else get the cash in their hands now or we have a bigger catastrophe on our hands boom bust cohost ben swan and tovia smith Transformative Research thank you both for your time thanks for. And u. K. Prime minister Boris Johnson announced a new plan for Adult Education and Training Programs to support workers affected by the coronavirus pandemic the u. K. Is expecting a huge spike in unemployment at the end of october when a Government Program which pays the wages of millions of furloughed employees will no longer be in place johnson says the lack of skills training has left the country needing construction workers mechanics engineers Lab Technicians and i t professionals the Prime Minister spoke about the need on tuesday. Our economy has been shaken by i didnt hand to mouth scrabbling of the pandemic the shortcomings of our labor market and a rigid system has been painfully apparent we have to face the fact that at this moment we need them so much there is a shortage of u. K. Trained Lab Technicians just as a result shortage of so many crucial skills. And as we continue to look at the Economic Impact of the pandemic lets go ahead and take another look at the trends and spread of the virus globally with our 2 correspondents i attack sorry where are we today so rank over 19 has now reached every single country in the world and has infected more than 33700000. 00 people and its also killed more than 1000000. 00 people now half of those deaths or about 500000 of them are coming from countries like the u. S. Brazil india and mexico and the u. S. Alone accounts for about 20 percent of those deaths make unclothed 19 the 3rd leading cause of death in a u. S. Only behind cancer and Heart Disease but are staying on the u. S. I also want to take a look at the daily new cases and thats so on monday there were 37262. 00 cases now thats a 15 percent increase compared to last week and deaths on monday there were reported 344 now thats a 3 percent decrease as long as theres numbers going down thats good because the death rate is what we really need to watch since over 75 percent of that 33000000 people in fact that have fully recovered so we just need to stay on top of the death rate butt out. Besides the u. S. The virus is also obviously spreading globally and its spreading faster in india than anywhere else in the world now this is the charge just to show india and brazil and how the cases are going up in india theyre reporting about 95000 cases per day now even though india has kept a very low death rate given there are 1300000000 population scientists are now warning that the number of people infected there could actually be 10 times the official figure so verse says were looking at 6000000. 00 in india the true figure could be 60000000. 00 and in latin America Brazil is reporting anywhere from 15225000 cases per day and also has the highest number of this for the region with more than 141000 so far in brazil so as the 3rd highest case count in the world and elsewhere in our in latin america cases in argentina are also rising very quickly now with more than 700000 in effect infections in the middle east iran has hit the worst with the highest case count and also deaths now theyre also dealing with a double whammy of the virus plus a very battered economy due to us saying sions right now the dont seem to be going away anywhere anytime soon i should say now in neighboring iraq is also seeing a huge surge in cases so as you see there there are cases of just keep going up and higher and higher now in indonesia theyre seeing the worst of it plus theyre also handing out some very unusual punishments i should say for those people now wearing a face mask in public theyre doing anything from forcing violators to spend time in a open coffin digging graves for the deceit is or just doing pushups in public so thats what indonesia is doing right now to do. With people not following the rules so as you can see theres really no end inside right now and a vaccine seems to be the only way out of this pandemic brant what are the trends were seeing in africa right now. So you know earlier the u. N. And w. H. O. They wolf warned that a covert 19 could kill over 300000 africans is year but even as globally you know weve reached over 1000000 death africa is actually doing a lot better than expected and is not just the case also a much lower percentage of thats compared to other continents and if you take a look at this chart for example in north america they have a overall death rate from 19 a 2. 8 percent here is i broke it down to the u. S. Is about 2. 00 mexico is a lot higher 10. 00 and that compared that to europe that has a 4. 5 fatality rate due to over 1000 now to that stakeout italy which was had very bad there at 11. 6 britain 9 but overall theyre at 4. 9 not compared that to africa there are 2. 3 and the 3 hardest hit countries in africa south africa. Nigeria they also all have a very low death rate but theres also a couple of theories behind these numbers some experts say that some 1000. 00 deaths in africa are probably being missed and testing rates in a continent continent are also among the lowest in the world and also many deaths of all types go unrecorded theyre not just called 1000 but scientists are also looking into the possibility that a tb vaccine regularly given to children in most african countries could be the cause of their very low death rate and now they theory is that whether prior contact to other corner viruses except over 1000. 00 could be the cause of resistance in some african countries but so far all just theories brant. Correspondent site i wonder thank you so much for that insightful report. And time now for a quick break but hang here because when we return business closures continue to sweep the United States as the economic fall of the cold and damage is setting in across the nation will give you the details and as we go to break here the numbers at the. Back zone has. More behind for the future but so. Out. Of every news that you. Just. Came out if you did you can see my money as we move. On im going to give you shit oh my gosh. They are the house from. God since we. Dont hear you. This can only. Give. You the kind of system definition in. Minnesota the random shit. Now lets talk about tea and crumpets and scoundrels the London Bridge and the. Us economy was booming growing numbers of people with us. You can work 40 hours d in a week and still not have enough to get housing everybody believes america still is the only of opportunity the reality of it is that were not financially quality and the lack of housing living minimum wage many people know. Thats been a problem with the city you know it is time to make sure to stay with. The food if there is no answer because you know its the fires. Were abandoned on the streets to become invisible clubs. And welcome back retail bankruptcies in store closures in the United States have reached record numbers for the 1st half of this year as social distancing measures forced many businesses to close their doors to customers now according to professional Services Firm b. T. O. Usa 18 retailers filed for chapter 11 protection through june of this year while the wall street journal is reporting a levin more retailers file between june and mid august actually its july and mid august now this includes Department Store operators Neiman Marcus and j. C. Penney retailers lucky brands Brooks Brothers and Taylor Parent company siena retail group as well as home goods retailer pier one imports and vitamin seller gnc holdings now those are just to name a few of these companies now these companies of course rely on malls to operate at their full capacity for context retail bankruptcies this year have already eclipsed those of 2019 as a whole and video. 2020 is on pace to compare with 2010 when there were 48 such filings in the wake of the Great Recession so for more on this lets go and the state of the economy for the bring it boom bust cohost christiane and octavia marandi c. E. O. Of op of us thank you both for being here octavia i want to start with you in the midst of all these bankruptcies of course investors have remained focused on the prospects for a stimulus package to help the u. S. Economy recover of course we just spoke about the possible deal that was presented by the democrats earlier in the show but is more stimulus actually needed to stop these bankruptcy is or is it too late. Well i think if you go back and look. At that you mentioned j. C. Penney and and the scene of the Parent Company around taylor they were doing miserably badly for the company 90 crisis so if you look at the financial state was i dont remember when j. C. And he lost the. 2014000 of the meeting going way way back when theyve been losses so theres a whole bunch of companies that you mentioned. That were doing badly. And putting them our business is more or less of act of mercy i think were missing elsas of actor that i missed. And so on and these were companies of basic destroying resources racking up huge offices and there was no real reason for them to continue so i think it was a positive thing that kind of rushed out on those very weak retailers should the door. Shut the door is not going to get any more financing so i think its almost a positive thing and you can realize resources the companies. More effective and more so i think thats more a healthy thing than the else now the stimulus nice to miss going to the right so its very prevent bankruptcies but even then i think you have to question with d something that we want to do i mean do we really want to have a whole bunch of zombie airlines. And weve hundreds of them. People working. For. Many might make political sense it certainly doesnt make economic sense so i think theres a choice between those 2 things thats made sort of the the politics of it being Zombie Companies going and the components of the. Winding those companies and reallocation those workers who resources elsewhere where they can people. So youre essentially saying octavia that yes the pandemic may have caused a little bit of this but essentially what some of those retailers like j. C. Penney ecommerce was already pushing them well out of the system anyway so this just accelerated because people are forced to go to ecommerce more and more. Why i dont think is even just ecommerce i think i dont know when you last winter the j. C. Penney but i love some of what i was thinking back in 1986 it wasnt something a person ecommerce the basics branding of most dies and. Its like a time warp it was like a time worn them and they deserve to go and that had nothing to do with code that was well so so they face those kind of problems and tane as well as. Going into an antidote you have pretty much the same reaction these are companies that simply did not keep all the times that they lost the process of the consumer. And the scene of their stock prices already before. The stock prices down so this was a company in in shape and i think deserves a go and people type of financing that also is a so. Well theres no hope. And i think thats a very positive thing what else christina earning season is right around the corner here and with expectations really low do you think that we could end up higher if the results are actually better than initially expected. I mean sure i think when you get a quick pop in a rally off of a good beat but right now the bar is set so low for Companies Analysts across the board have just completely lowered slusher the math right now as theyve also received very little guidance in 2 quarters and so it wont be surprising to have a bunch of these across the board but like we said last arnie season is not about what happened in the past its all about for looking guidance traders are always looking for whats next whats coming and so even if we do get a couple good beats its always going to be about the commentary and the Forward Guidance that management provides or if management declines to provide guidance as they did last quarter then its going to be very difficult to forecast demand and thats not a good sign so we can put really see any of the pop that we get from a beat getting sold off so traders right now theyre continuously looking into the market for any sign of good news but right now they just arent getting any the s. And p. Is down about 4 percent for the month which is the 1st down month since march so its not a coincidence that the equity rally just stopped just at the same time that earning season is about to start because right now were going to get a strong dose of reality check right now with the earnings so even if we have a couple good beats the valuations of some of these names theyre completely stretched expression of the high flying tech names to the point that it just doesnt make any sense so micron is reporting after market closed tuesday and thats going to be a very Key Companies given the big uncertainty around the given that its in the Semiconductor Industry and theres a big disagreement between us and china regarding that entire sector so micron has really been left out of this entire years rally declining 9. 3 percent year to date so investors are going to have a lot of questions on Market Conditions and for our guidance and our studio no treasury yields remain flat and lower even after u. S. Consumer confidence jumped unexpectedly in september is this a sign that investors are not trusting the recovery and do you see kind of a double dip situation here. Well i think drew treasury yields a pretty low voice although so. Long chain since of those the late march so we have a little bit about unpleasant as a markets and you know its mid march with the fed to slash the rates right down some 60 basis points off the scent and thats a roundabout where we are about 65 basis so i think the market is more saying we the state will do everything needs to keep Interest Rates around very very low will future and thats the street it was driving expectations are states is not so much not coming so the fed has said were going to keep Interest Rates for the next few years. And they certainly have the means and ability i think the unchanged Interest Rates more question of the modern believing said and face and say yes theyve got the Printing Press if they need to suppress Interest Rates. As of the will do yet its looking its looking more and more likely in my mind to code cases are. Not looking good. Now christiane had one last thing before we get out of here there is a breaking news tuesday afternoon j. P. Morgan chase has agreed to pay 920000000 and admit to manipulation of Precious Metals and treasury markets what happened here at about 30 seconds left kristie all this was a record penalty for spoofing which is when trade us flood the market with orders that they actually have no intention on executing its actually to create the illusion of demand and to push prices up so going to Court Filings over the span of 8 years 15 traders at the biggest u. S. Bank caused losses of more than 300000000. 00 to the participants and Precious Metals and the treasuries market so this is a big one but j. P. Morgan is the one that got caught spoofing this time but i think actually a very common practice so common at the trial is that we argue that spoof bank was and evitable adaptations by self traders in order to fend off all the hype frequency traders that are now driving the markets christiane octavio morans e of optimists l. L. C. Thank you. All for your time. And thats it for today you can always catch us up portable t. V. Well see you next time. Always be polite never engage with a negative a good or confrontational. Dont get into any conversation or start answering questions just ask for an attorney. To survive and tear a geisha. Definitely dont want to be going to trial in the jumpsuit on cups. Youre more likely to walk free if youre rich and guilty or if youre poor and. Youve got 2 eyes and 2 ears and one mouth. So you should be seen in here and a whole lot more in your sand if you dont take that advice easy going to dig yourself a hole. Is your media a reflection of reality. In a world transformed. What will make you feel safe. Isolation whole community. Are you going the right way or are you being led so. Directly. What is true what is faith. In the world corrupted you need to descend. To join us in the depths. Aura maybe in the shallowness. My name is. On the old social media office jack see what i dont see its a. Bit of order you know if you. Want but enough. To cause looks nice enough moving up. From. The speech and i use down 6 to make any babies you know suits me school on drugs used to people. Whove been forced to close because clubs do really hes trying to fit life music but. I see jobs because he makes me copy i love he dies because he meets me and copy plane food to food. And when you get to. Be on dialysis if the cost is spot on fox who loves you daryn. I doubt. Trade. Disputed territory. Exclusive access to the halls of the complex. Right now where between the positions of the Armenian Army which is over there and joining forces to stations right over this hill for the 1st International News crew allowed here by the armenian forces. Spilled over to the diplomatic spear with the 2 sides waging a war of words at the un while the Security Council calls for an immediate cease fire. Everybody knows hes a liar and theres nothing smart about. It so youre number 2