The future of the peso an argentine economy 3 day weekend is over were roasted or ready for a great show lets go. We lead our global report today with new allegations from why we technologies accusing the United States government of using every tool at its disposal to stymie its business and a press release issued tuesday waterways said the u. S. Had used one foresman to quote menace its employees launch Cyber Attacks on their networks and detain shipments related to its business the release was specifically in response to the opening of an investigation into whether wall we had stolen for Smartphone Camera technology from portuguese multimedia producer rui olivera in the release a Telecom ChineseChinese Telecom giant accused olivera of quote taking advantage of the current geo political situation without citing any specific examples a company said the u. S. Had sent f. B. I. Agents to while away employees homes tool up to attempt to collect. Information on the company the release also purported that the Us Government has been conspiring with wild ways rivals to bring. In some studio negations against the company while we has consistently pushed back against allegations from the us regarding their business and recently made a point to their employees that this is a make or break moment for the business saying they will persevere. Asian stocks rose on monday and tuesday while over on the us side futures weekend on mondays holiday opening down tuesday as we began our september trading new terrace of 15 percent on 112000000000. 00 of chinese goods went into effect on sunday as did retaliatory chinese tariffs on u. S. Products on its 75000000000. 00 target list china got a boost as manufacturing data came in better than expected and the state council had announced more measure to support its economy on sunday sectors that were highlighted include infrastructure high tech and Traditional Industries as a valid to continue to boost growth and liquidity meanwhile the dow opened 1. 5 percent lower as its latest round is the 1st to directly cover many consumer goods hitting middle class staples like food Apparel Footwear and Consumer Electronics the average tariffs on chinese goods is now over 21 percent compared with a 3 point one percent when president 1st took office it is estimated that these tariffs will cost american households at least a 1000. 00 a year as companies are now increasingly at a loss on how to respond more than a 150 trade groups sent letters to trump last week pleading for a postponement in this latest round of is different as previously the administration has largely avoided hitting consumer items this represents a crucial Inflection Point in the trade war with china as now the tariffs threaten the u. S. Economys main driver Consumer Spending despite headlines i go back and forth calling for progress has become ever more clear now that the trend is towards escalation not to deescalation in addition. Increased duties on american exports china has now lodged an official complaint against the us at the w t o saying that the latest actions by elated at the consensus reached by leaders in osaka this lawsuit is now the 3rd that beijing has brought to challenge the. The us says that they are penalizing china for theft of intellectual property that is not covered by the rules although many trade experts say that any tariff above the allowed maximum must be justified at the w t o under the washington now has 60 days to try to settle this dispute then china could ask the to rule a process that would take several years this move however is largely symbolic as trying to pull the u. S. Out of the w t o so there is no way to actually force the us to do anything even if china wins this case but this lawsuit was primarily intended to send a message rather than to force an outcome it is that china values multilateralism and defending the International Trading order even as trump is pursuing unilateralism the latest clash has rewritten the rules of trade in ways that have no historical precedent and are driving the worlds 2 largest economies further apart trump a new shouldnt have expressed confidence that another meeting will take place later this month but china has yet to offer an official confirmation. And now to break down the latest effects of the ongoing trade war we bring in Jeffrey Tucker of the American Institute for Economic Research and Todd Horowitz chief strategist at trading. Lets start with you jeffrey this latest round of tariffs is a big deal as now more than 2 thirds of consumer goods in the u. S. Imports come from china now face higher taxes as businesses pull back on investment spending and exports slow down american shopper so far has been the one bright spot for the u. S. Economy and now that last growth segment is now at risk so are we going to get any relief before the end of the. Or is this just going to accelerate our risk by recession. Look ive been predicting for 3 years its going to get worse and get worse and get worse and i think wall street has been kind of in denial because they dont believe that were really going to turn our backs as a country Global Trading relationships which cause to 60 percent of global g. D. P. To decouple or otherwise impose tariffs is a disaster for the u. S. Economy but look this is what trump promised. 3 and 4 years ago so it was obvious it was coming its just i think it surprise or but i think hes had the power to act basically on his own according to his own ideological convictions to do this its a very bad thing for the american as america as a nation and American Consumers are paying the price contrary to what trump is claiming that somehow. China is paying these tariffs is absolutely not true this is being 100 percent paid by americans American Consumers american businesses and you know its very interesting distinct from past rounds of protectionism in American History the american producer merchant class does not support these things as you noted everybody is begging from the fisheries to the farmers to. Energy to retailers please stop this tear for but nobody can seem to do anything about it because trump has all the power. And meanwhile u. S. Factory activity in or contraction territory for the 1st time since february 26th seen but looking over the equities market we are still not that much off of all time highs it looks like there is still optimism that the u. S. Will weather the storm with help from the fed do you think thats enough. Why dont think its and i do think that we are in the very early stages of a recession i think that again one of the youre the conflicting things you have here is that the world is searching for yield and places to put their money so right now the u. S. Is still the best. Market is still the best bond market is still the only place you can get some real but generally i think were seeing a slowdown i think it has nothing to do with the trade whereas in china i believe that the trade with china the importers were importing are not being penalize because their one hit your all time low against the dollar today so were buying with better dollars but the end of the day youve got to be slowing down and again i think that is showing in the numbers but that doesnt change the fact that there is still money looking for a home and that home is the stock market or the u. S. Bond market which is why were seeing such a massive bond bubble on top of a stock market that doesnt want to go down yet. Back in march 20th famously tweeted trade wars are good and easy to win but now most recently in france he had expressed regrets over starting a trade war in the 1st place as businesses and consumers become more fearful and are holding off on spending so every single recession have had their poster child we blame the 2007 on the subprime mortgages and the 2000 on the dot com bubble so will trump be the poster child for this one as he said that where im currently already in the early innings of it. I dont think so and i think that was more of a play by trump you know the typical way that he does business in the go shake shoes as like well were giving you a chance to come back to the table i think he has no no regrets and i think he has no intentions of doing anything until chinas and china stock market is on 10 percent so they continue to fade and no matter what the numbers they report they have a hell of a lot more problems than we have and i think that we will eventually wear them down and i think we could step on a little bit further in the meantime think the markets are going to melt down on their own and i think the biggest culprit here would be the Federal Reserve and not because they didnt lower rates fast enough because again they dont let the markets tell them what theyre supposed to free market should decide Interest Rates not the Federal Reserve and the free markets are saying right now with the bonds exploding the other side with the yield curve and burn. Their rate should be over and they should just be lower based than the free market system and prices govern not on whether or not a drone pilot gets out of bed on the wrong side one day i mean thats the real problem here is that they are not letting the free markets work and thats the end of the day problem and jeffrey back to this lawsuit against us at the. What about the us sort of legal strategy here china seems to be showing by using this existing institution that theyre willing to play by the rules willing to play ball while the u. S. Is blocking approval of any new judges to the bodies Appellate Division that could sort of sort out this mess in an accepted International Forum so is the u. S. Doing some long term damage to their standing just generally. Of course and i think your comment is right about china i mean its mostly china has conducted itself in these negotiations with rationality and decorum at some point even explaining how supply and demand works to trump himself which is something. For the communist Party Official to have to explain to trump how supply and demand works in those back when he was claiming that china was driving down its currency it wasnt the markets that were doing that but look heres the key thing about the w t o the great failing or i should say just thing about the toes theres never been an unfortunate mechanism ever the thing works by consensus of nations thats how us got into it realize fundamentally on the goodwill of all signers to the document trump has absolutely 0 regard for the wu he doesnt think it should exist he actually is doubtful about world trade has made that clear about that from the beginning his really trying to drive us back and his off handed cop with the comment about decoupling i think he was actually serious about it so he doesnt care about the b. T. O. I mean its shocking is that just doesnt care so the w t o could rule and the put it out it could take 2 years i dont think trump gives a flying flip about its not even on his radar screen at this point Jeffrey Tucker and Todd Horowitz thank you both for and i but stick around because we have some more starting to like to get your takes on later in the shell. And saudi aramco is looking for a new chairman to replace Current Energy minister coleader folly as a Company Works toward going public in what is used as the worlds biggest initial Public Offering folly was in charge of the i. P. O. But has been blowing recently for the oil giants delay in going public. The governor of the Public Investment fund will be taking the reins according to a tweet from foleys official twitter account follow he will remain the head of the Saudi Energy Ministry despite leaving his post with a ram co last week it was reported that the state run oil company is planning a split i. P. O. Expecting the 1st half of the 100000000000. 00 offering in saudi arabia this year and the other half likely taking place in tokyo in 2020 or 2021. Time now for a quick break but. Argentina has the reins on the countrys economy happened. In alabama elevated standing by to break down the details of the. Greatest challenges on the downslope in the wake of a major move and. We welcome back our panel. For us. To remember that it was. Working. It was much worse. But there was an expectation that things were going to get better. There was a real sense of hope. To do 2 days in america where shape by the turn principles of concentration of wealth and power. Reduced democracy attack so low down engineer elections manufacture consent and other prince holds according to. One set of rules for the rich. To thats what happens when you put her into the. Roof will switch who is dedicated to increasing power for chills just as youd expect one of the most influential intellectuals of our time speaks about the modern civilization of america. You know so many people reference. That let them eat cake and then you know historians have gone back and they said you know its actually like a 30 ish brioche you know that so i brought in actual oh my god what a mess weve brought in actual brioche this is a brioche just a slice there at the patisserie and so this is what she suggested that the peasants this should be eating because they run out of they say this is a brioche is a slightly nicer version if theres a few in the cupboard lets throw that to the peasants that maybe thatll shut them up but. Im. Ready ready ready ready ready sure to stop at the to do we need to grow. Oh. I just never told very good about the idea of bringing children into the world because i didnt feel like things were in very good shape that a life was just going to be a lot of software programs. Theres no reason youre more world you take things that are to me the theres no use of them if Something Else that in some everybodys scared to talk that is survival is really to can then harness addressing this issue and if we can even talk about it every chance even have a conversation or that it then. Were in trouble ready. Welcome back the pound sterling stabilized from a fall earlier today after u. K. Prime minister Boris Johnsons government lost their one vote majority in the house of commons that latest plot to plot twist came courtesy of conservative m. P. Philip lee who crossed the floor to defect to the liberal Democrat Party which has seized on opposition to braggs it as an issue as a labor party wrestled with what looked like a no win political scenario mr lees defection actually halted the pound slide which was already in progress after Prime MinisterBoris Johnson threatened to call a snap general election in response to the introduction by inside brags that m. P. s of legislation that would force the Prime Minister to request a delay in braggs it until january 31st of 2020 pound dipped just below 1. 20 before recovering in the afternoon eventually closing above its opening price mr johnson later took a hard line on the am on the no deal breaks a bill saying that conservative m. P. s who voted for the forced budget delay request would be diesel elected as Party Candidates in any slap snap in. Election as we prepared to go to air the commons was debating the move to proceed toward consideration of the bar on a no deal brags that the conservative leader of the house of Commons Jason jacob riis mog is warning m. P. s that if the bill passes on tuesday they will narrow the real options to dropping opposition to the irish border backstop severe delays of braggs it or a full out revocation of the article 50 notice. Argentinas leader has flip flopped asking the countrys central bank to impose capital controls which he once staunchly opposed president mary snow mccray has administration as likely as final days maybe a move in hopes of pulling the countrys economy out of its downward spiral with my lifetime i change my head of it in toronto so alex president mcrae has opted for a policy that he was fought against in the past so why the drastic measures now. If you look at the pesos dropped by 35 percent in the month of august that is kind of astonishing a massive plummet and of course what people do when things like that happen the nations people went to Greener Pastures and when i say Greener Pastures im talking about the greenback the dollar as well as other currencies so they start trading in their pesos getting rid of their National Currency and of course that contributes to the downward spiral but lets take a look at this graphic kind of gives a good idea of what exactly is going on here now were looking at the depletion of foreign currency reserves it was rock celebrated last week when argentina said that it might try to defer payments of its knots of debt of 101. 00 or 100. 00 plus 1000000000. 00 if you see this graphic you can see this plunge taking place last friday the peso or i should say the reserve plunged by 2000000000. 00 we saw another plunge of a 1000000000. 00 just yesterday on monday so you know this is something that is not turning around for them too well and thats why these emergency measures came into place we know weve talked about this before with president one of the main issues. It was that there was a preliminary poll of the beginning of august that sort of got this ball rolling his party most likely will not win the next election which is happening this august over and