Out of the woods. For more on this were joined by boom bust cohost chrystia and former fed insider danielle de martino booth danielle fed minutes are in focus today and are specifically investors are going to be focused on inflation averaging an extended rate guidance this is these are the last minutes before the election thats just weeks away give us some color on that and how is the market digesting this latest update. Well so i think the market is interpreted in todays minutes as saying the fed is standing ready to monetize to print money to satisfy any stimulus spending that comes out i think the obviously the hurdle here is is actually Getting Congress to act but again the fed is showing a willingness especially with what powell said yesterday. There was no way that there could be too much stimulus and that is fed speak for saying whatever it is if its 2 or 3 or 4 trillion dollars whatever the price tag is however many treasuries are issued we will buy them in the open market and ensure that there is a smooth transition to getting that money from congress out to the people we get that in spades the problem is that fed policy so far has proven that it doesnt do a lot in terms of satisfying its 2nd mandate it can keep the stock market out thats what quantitative easing does thats what money printing does thats his part so to speak of Monetary Policy but again that policy is not doing a lot and the stimulus that is expected to come after the election really also doesnt address the underlying obstacles and challenges that are facing this economy right now when theyre planning to maintain the Interest Rates near 0 something that they continue to say with inflation monitoring at about 2 percent on average so it could go a little bit higher than that do you see that happening. It doesnt really matter if i see it happening or not i actually i think if theres a lot of stimulus spending to the degree that were going to potentially talking about in the years to come that the fed could get a lot more inflation than what theyre expecting what the fed officials are expecting out to 2023 according to their own inhouse forecast is for the p. C. Either core p. C. Either they gauge Monetary Policy off of to get as high as 1. 7 percent which means that they dont even see 2 years out the need to begin to think about thinking about lifting Interest Rates off of that 0 bound they anticipate going years and years and years into the future my biggest guess would be that if theyre talking about possibly you know growing the debt by 50 percent or 75 percent which is what is conceivable again giving how poorly conceived stimulus spending. It is at the moment how unproductive it is its not providing people with with job skills its not providing Infrastructure Spending right now that people put people back to work it is paying people to not work that kind of stimulus spending simply needs to be replenished every 3 to 6 months over and over again as long as the feds there to print it i suppose that works but it doesnt do anything in terms of achieving long term escape velocity for the u. S. Economy well Kristie Powell has said yesterday that the risk of further stimulus is low as we heard is it really it whats your take on this. Well i mean i think were in a very difficult position right now and there really is no good option because as of right now if there is no stimulus we risk falling further and given that were in a weakened state already after being battered by the coronavirus for the past 7 months that downside is going to be pretty ugly Going Forward however on the other hand if we do get more stimulus if we do print more money as we have been we do risk run the risk of hyperinflation because since september 19th the fed has pumped over 9. 00 trillion dollars to prime made dealers and in 2020 alone the u. S. Has created about 22 percent of all of the u. S. Dollars issued since the nations birth so the usa has been around for about 200 years so if you have a quarter of all the u. S. D. Ever printed in one single year thats just mind blowing at this point so this massive creation of money stemming from the fed will eventually cause hyperinflation especially as the dollar has already lost considerable value since inception 113. 00 the cumulative rate of inflation is now sitting at about 2625 percent which means that something that cost a dollar back then now today cost about 26. 00 so the risk of hyperinflation is real weve seen it before in other countries weve seen it quickly spiral out of control and history has shown that you simply cant print your way out of money it always comes due and the dollar has played its role right now for about 100 years and also history has shown that a 100 years is about the average lifespan of a global reserve currency so thats always something to keep in mind when were talking about this unlimited printing that the fed can do still still an eye on that the u. S. Economy its in danger of shifting and her verse once again as cases are actually beginning to rise along with flu season a 2nd wave of coronavirus cases more significantly limit this Economic Activity obviously especially as it will be heading. In this p. Consumption holiday period here in the United States how is the 4th quarter looking. Well and you know it really depends on whether or not theres stimulus spending to allow for all americans to go out and go Christmas Shopping i hate to say that thats the case but it is but to your point with Colder Weather despite the fact that weve seen some very encouraging news in terms of treatment for the corona virus but with Colder Weather the ability to be indoors and closed to other people improperly social distance is indeed going to hurt a lot of restaurants that wont be able to accommodate at that capacity limitations that are being set forth especially again as as regular cold and flu season kicks in so we have right around it right now in america one in 7 Small Businesses has closed their doors permanently and were starting to see much more importantly white collar layoffs increase and that will trickle down in the form of further Small Business closures because those are the customers who theyre relying on so right now the wrist the Holiday Season outside of what the stock market is doing for the half of americans who do own stocks the risk is that there is a disappointment in spending in the 4th quarter again barring any massive consumption spending that is able to quickly enough be delivered to the recipients and they really are keeping an eye on what the wealthy are spending on it and more so how the poorer less fortunate are cutting back on their spending for this Holiday Season boom bust cohost christine former fed insider booth thank you for being with us today. On wednesday us chip maker broadcom announced it will and its exclusivity deals with europe putting an end to a year long investigation the European Commission accepted a deal stating broadcom will suspend all existing agreements containing exclusivity or quasi exclusivity arrangements and or leveraging provisions concerning systems on a chip for t. V. Set top boxes and internet. Modems and has committed not to enter into new agreements comprising such terms the deal comes after trust regulators launched an investigation into broadcom in june of last year over anticompetitive practices this ends the inquiry without a finding of wrongdoing broad concessions are valid for 7 years. Are Congressional Democrats laying out a plan to break up these Big Tech Companies a slew of proposed laws being introduced by House Democrats could potentially do just that the proposals by democratic staffers on the house judiciary antitrust subcommittee would be the most significant changes to federal antitrust rules in decades they are the culmination of 16 month bipartisan investigation that drilled into the practices of Facebook Google apple and amazon joining us now to go tell about his proposals bonus cohost and investigative journalist swan then break this down for us what are these new rules looking like. So essentially what the House Democrats have done is theyve put together about a 450. 00 page memo which takes a look at these Tech Companies and essentially tries to to before solid treats them as if they are robber barrons right specifically mentions that not since the days of the Railroad Tycoons and the oil tycoons when antitrust was 1st created have we seen the kind of monopolies that we see now but specifically these this report focuses on a couple of things that focuses on amazon on google on facebook and on apple and what it does is it essentially says that these companies are creating essentially anticompetitive practices by setting up systems where they are able to monitor their competitors they are able to buy out any rivals who come along and they are able to create a system where they are competing directly on their own platforms that are supposed to be open to competition against their own competitors so if you think about amazon for instance thats probably the most obvious case of this where you see. Amazon has set up in the past its own product lines that then competes directly with 3rd Party Sellers who are on their site so thats one of the things that theyre looking at here but the Bigger Picture of what theyre saying is that these companies have an unfair advantage and if this these these proposals that theyre setting forward were to become laws it would have an enormous impact on the big tech landscape because one thing it would do is it would actually ban those companies from having their own products on their own platforms they have to either be a product platform or they have to be a product creator and maker but they cant be both and the other thing it would do is it would ban them from being able to buy up a rival in the event of their rival to their own Company Emerges and that would also have a huge impact on the talk about the timing of all of the thing its pretty interesting here is that the Trump Administration already pushing to get antitrust case against google. Yeah they absolutely are so attorney general bill barr has actually pushed government lawyers to get this antitrust case against Google Google excuse me moving forward as quickly as possible in fact he had said that he wanted it by the end of september to file this it has not happened yet but he wants to file this case essentially against google again for anticompetitive practices and whats interesting about google specifically though is that as a company you know if you think about google you would say well heres a company that has you know in the enormous market share more talking about such a large market share that its difficult to even comprehend almost 80 to 90 percent of all searches in the world happen through googles platform and so when you think about that you have to say well google has a an unfair competitive advantage thats what the driving ministration says but remember googles not just a Search Engine the Parent Company of Google Alphabet owns all kinds of Mapping Systems it owns you tube it owns Google Search it owns the enjoyed operating system so it has so many Different Companies that allow it to then use data to essentially compete with other companies and we know that in europe sarah theyve had a lot of problems google has in terms of violating antitrust laws across europe but they just pay fine in fact they paid a record 5000000000. 00 fine just a few months ago but they continue to take on the same socalled anticompetitive practices that they got in trouble for in the 1st place but then you talk a lot about google of dominance here as a Search Engine but isnt that what consumers want. Oh so thats thats debatable right it really is debatable so what google would say is the reason that we dominate searches more so than any other company 80 to 90 percent of all searches globally happen on google is because were the best Search Engine but what in this case these lawmakers are essentially alleging and staffers for them are alleging is that google and by the way the german ministration is also alleging this in their antitrust case is that google is not given this competitive advantage because they are a superior technology or Search Engine its because they created an android operating system which they then use to make google the default Search Engine on basically every mobile device that uses enjoyed and really here in the United States theres really only 2 competitors there you have apple the i. O. s istomin you have the android operating system well worldwide android is a huge number of phones and when its the default Search Engine on the Android System there is an unfair competitive advantage that violates antitrust and by the way thats what europes looking at right now as well where google was forced to do this auction where they auction off it allow companies to to bid and then when that happens they say that theyre making it open but again Search Engines around the world are saying googles not doing that is a pay to play scheme that google set up that they always rate for themselves. That just because thats the default doesnt mean its necessarily the best as we know with other products absalom less cohost and investigative journalist ben so on. There are things i can after a quick break but when we come back stocks rallied on wednesday in response to President Trump reversing his course on stimulus and calming on congress to pass a smaller amount of aid we have a panel standing by as we go to break here the numbers that because. I. I. Dark industry comes to life in los angeles every night. Dozens of women sells their bodies on the streets many of them underage. Los Angeles Police reveal a taste of their daily challenge no if youre going to exploit for a child here in los angeles there were going to come out you see officers going undercover as 6 workers and customers to fight the 6 trade. Nuclear power plants of become a battleground in the u. S. In vermont people are demanding the shutdown of a local plant from my yankee is right now my focus because its a very dangerous oh no care power plant the owner is attempting to run the reactor beyond its operational limit this case just sort of puts a magnifying glass on wheres the power in this country where is it going is it moving more towards corporate interests or is it more in the idea of a traditional participatory democracy is or power lie with the people this case demonstrates that struggle in very real ways our struggle on r. T. And it remains i dont clear wholl be the occupant in the white house this january which. Is the state of the economy tens of millions of citizens it appears what is called the case shaped recovery is permanently dividing the country in the house and you have now. This seems to be acceptable for those who are. The us economy was booming growing numbers of people were made homeless. You can work. d in a week and still not have enough to get housing everybody believes america still is the leaders of the reality of it were not financially. Living minimum wage many people naturally say. Theres been a problem with the city goes to the rich and always doing well a little bit cold this is the food this is the way its yeah its the 4th. Vulnerable on the streets to become invisible. Just hours after President Donald Trump tweeted for congress to halt stimulus negotiations pushing stocks down while the president is reversing his course on a call on congress to pass relief for airlines paycheck protection programs for Small Businesses and a new round of 1200. 00 stimulus checks for americans trump announced these new measures that we have twitter lay on tuesday and said that hes ready to sign these measures and hes ready to sign them now to take a deeper look at what this means were joined by host of the news with bricks and. Self and host of economic day professor Richard Wolfe gentlemen thank you for being with me today rick lets start with you were just weeks away from the president ial election President Trump is clearly frustrated that he cant be out on the campaign trail with after having tested positive for corona virus hes been without symptoms for a few days now is what doctors are saying hes been in quarantine now could this move by supporting a bill for direct payments to americas could this affect the outcome of the election if theres no stimulus bill at all before election day could this negatively affect the chances for reelection. All the. Jews. Give money out to leave older in the weeks before an election its a pretty naked effort to buy votes and mr trump could be counted on to run around the country making that claim which will be that he somehow didnt write this to the people on the other hand by losing it in. Not getting that big stupid wish that the democrats had all to or which itself isnt big enough to hold back for example on the massive monies needed by cities and i dont triple the biog trying to tackle isnt rationed by that endemic i holding all that is under tidy any chance for an economic upturn at all let alone time for the elections so its very confusing again the only again off again policy is also it sounds same trajectory rick what do you think. I think the president is in a very tough situation right now and he really needs a hail mary at this point look hes no dummy hes a very astute man hes looking at the numbers the numbers arent good for him he needs something that can not just affect his base but something that can somehow grow his base even by 2 or 3 Percentage Points to put him over the top or carry him over that threshold that he needs right now in states like florida even North Carolina where right now according to the average by real clear politics biden is ahead by 2 points so whatever it is he does it needs to be done in such a way so that it kind of shakes things up a little bit i mean the mistake he made last night by essentially killing stimulus and then changing his mind and saying now that hes for it even though he was originally against it certainly doesnt help him i think what hurt him the. Most was by making that move anybody whos in the middle whos in that 2 or 3 percent who may have lost their job that didnt reflect well on them and im sure the democrats are going to make sure they hear about it so look hes in a tough place right now because of coronavirus because of the economy and because of all the other things that are obviously going on hes got to be able to pull a rabbit out of a hat somehow but mowbray quite why the sudden reversal here there of us of course the numbers i mean the economy and different from the market the market took a deep dive. Well you know thats an interesting question youre talking to to richard gere normally richard as opposed to the very handsome richard because i know what i know what the handsome richard is going to say in a minute here but. I really believe that what affected trump and i bet you was going to agree with me is not so much that he was worried so much electorally or even in terms of the pushback that he was going to get from the american populace because he usually makes decisions based on other things i think what got him was he didnt think wall street would react the way it did and wall street all but panicked yesterday they they essentially saw that as a kick in the pants and i think politically speaking when the president saw that he knew his immediate step was to do something to certified to wall street that he is watching them and he knows whats going on final point before i let richard pick up on this if hed like to is that i think to a certain extent rick that the wall street panicked because they were looking kind of for a payday here i dont think wall street gives a damn about the average american whether or not theyre going to get 1200. 00 what they know is that there was a last time there was a stimulus the average millionaire in the United States got 1200000. 00 and obviously thats not millionaire to millionaire but when you average it all. Including the billionaires they average 1200000. 00 thats a hell of a lot more and thats in taxes thats a hell of a lot more than the 1200. 00 the average american got maybe one or 2 times so i think thats what wall street is seeing its a boon for them well professor you have this market so they took a big hit following at trumps trump tweet and other picking up again what do you think. Well i think its another demonstration as if we needed it that you have an Economic System so broken down that its literally on life support it needs stimulus from the federal treasury and it needs money creation by the Federal Reserve and it needs it in the trillions of dollars because the Economic System doesnt have the capacity to even if properly deal with this pandemic level wolf and get us back to an economy that these for the mass of people these are serious strains of breakdown and the failure youre not going to fix this with an extra 1200. 00 of course not thats silly youve got to do we massively interventions to offset the disintegration of our economy and thats even before the risk of the return of raising the numbers of old big cases which is also under way i think too many problems just down the road too long theyre all coming a whole now and its its a system that really is in a way ive never seen in my life grasping for whatever it general for to keep itself all right weve talked about this this before the wealth gap i know how it is increasing you mention the wealthy and now theres a new report published by u. B. S. And p. W. C. Showing billionaires wealth grew to its highest level ever over 10 trillion dollars since the start of the pandemic now with trump now saying that hes going to provide more stimulus to it to these airlines to these p. P. P. Small businesses and the stimulus talks to the American People is he catering here to to investors as well to the wealthy to his his friends. Absolutely you know its a raising story it seems to me is really the way you know that richard youre probably going to youre going to go ahead richard please i mean go ahead. All right i dont want to belabor the gerbil dead of course this is an Economic System that not only has enriched rich people relative to the middle of the bottom for the last 35 years but hes managed shoulder stand game and that even in a National Emergency where more than 50000000 people have had to go to file for unemployment if ever we needed to tap the rich now was the time they didnt believe in real well just 35 years but when you do we know that were making them rich even as demands will have to be downed was less it really has low your mockery wreck quick answer here ill give you a chance to respond quickly. But if area in fairness to donald trump obama did the same thing and other president s in the past have done exactly by then well probably do our same as well resident of the United States and biden will probably do the same thing i mean its its its in the recipe and they cant seem to get it out of there back to the matter is the last time the president faced with a bad Economic Situation actually created jobs and gave money to people in the United States and every one of your other rick sanchez or grandads or dads out here are going to remember what flight for a frankel of Franklin Delano roosevelt f. D. R. Did it since then we just have seen people essentially help the rich more than they are the people who need it by creating jobs and again let me underscore obama did not do it either through a conversation here thank you so much rick sanchez host of the news about sanchez and professor Richard Wolfe host of economic update thank you thats all for today but lets take an x. Time. Its wrong with us as american citizens and i hate to be blasted off by. Asked to die and i think. I would vote for a republican i would vote for anyone who does not and has half a brain defeat. Defeated. My 2nd wife. She can handle. She and i divorce because our trouble is elected president and i floated for him and she crashed and. The most important election. In a history. List of the months to go before the next president ial election how is the atmosphere in the us now. Want of the highest priority problems now live and should they do next. Just some of the questions we put to the america. During call that we hear about the us we hear about china we hear about brazil you know what we dont really hear much about japan and yet japan i think in the grand scheme of things is in a data point in the intersection between the end of the end of the u. S. Dollar as the World Reserve currency and us up higher because japan is has bed and shall remain the cheapest source in the world. Nuclear become a battleground in the u. S. And people. From. Right now my focus because its a very dangerous. Power plant the owner is attempting to run the reactor beyond its operational limit this case just sort of puts a magnifying glass on wheres the power in this country where is it going is it moving more towards corporate interests or is it more in the idea of a traditional just a. Power lie with the people this case demonstrates that struggle in the very real. Struggle. Nothing but an excuse for sanctions russia reacts to the Global Chemical weapons watchdog confirming germanys findings that kremlin critic only was poisoned with. Its purpose is obvious denigrate russia with unsubstantiated accusations and thereby create a far fetched reason for introducing another tranche of sanctions against our country. From speaking at the Un Security Council about a controversial probe into an alleged chemical attack in syria 2 years ago. With britain chalking up europes highest in the country seeing a new surge of Infections Health ministers praise for the governments handling of the crisis is called into question