Transcripts For RT Boom Bust 20240713 : comparemela.com

We take a walk around the globe plus as the Companies Remain under lockdown around the world what constitutes an essential business and where does crypto currency fall in that designation we bring in a boom bust handle for insight into the sector with a packed show today so lets dive right in. And u. S. President donald trump on thursday escalated tensions with china over the handling of the coronavirus pandemic saying the trade war between the worlds 2 largest economy is now of secondary importance. And then we signed a trade deal where theyre supposed to buy and theyve been buying a lot actually but that now becomes secondary to what took place with the virus the virus situation is just not acceptable you know the situation stems from the u. S. President s assertion that china could have done more at the onset of the pandemic. This is something could have been contained at the original location and i think it could have been contained relatively easily this china is a very sophisticated country and they could have contained it they were either unable to or they chose not to. Trump was asked whether the u. S. May retaliate by not paying its debt obligation to china in response he suggested further tariffs against china maybe in order to do it differently i can do the same thing but even for more money just by putting on tariffs so i dont have to do that you know. Its a power its approximately a trillion dollars a little bit more as i understand a trillion dollars but we could do that in a. I think probably in a little bit of a more forthright manner you Start Playing those games and that stuff you know we have the dollar to protect we want to protect the sanctity of the dollar and the importance of the dollar insignias currency in the history of the world. And for more on all of this and Market Reaction to the news of the day lets get some expert analysis from peter schiff c. E. O. Of Euro Pacific Capital and boom bust cohost Christine Peter i actually want to start with you here u. S. National Economic Council director larry kudlow is saying that china will be held accountable for it now it being the coronavirus pandemic how do you hold a country responsible for a pandemic is that like trying to hold the country responsible for an earthquake or any other type of natural disaster. Yeah its certainly very difficult to put the blame on china or to try to assess financial responsibility or liability but you know the mere threat of potentially not paying the chinese on their bonds to default or selectively cancel out obligations that the chinese own is very dangerous road to go down because not only could that scare the chinese into selling but it might scare other creditors into thinking that we may do the same thing down the line to them but you know when trump says that he can hes going to punish the chinese with carrots to get the money that way look at chinese dont pay the terrorists any terrorist put on chinese imports are paid by American Consumers so if thats true plan its the americans who are going to pay not the chinese absolutely now kristie theres actually a shifting focus from the virus back to a breakdown in relationship with the 2 Worlds Largest economies here what is that risk here when we talk of new tariffs and as peter said now i know the president downplayed the idea of not paying off that debt but what are the risks that we have here. Well has different material risk here because we saw that already in 2019 and no one wins in a trade war harm sentiment damages Business Productivity especially. In an environment that is already so fragile wrecked and we can in the wake of the corona virus that has the potential to completely fly in any new shape the coverage that we all remember the volatility we had in 21000 in the algos going into overdrive every ringback single morning on trumps tweet well the same thing will happen again and a big risk off move will send the treasury back down the road back down to the stress level so even without the coronavirus today the trade war between us and china lowered global g. D. P. By almost a point the couple that now the pandemic and the result is going to be devastating and i think that the path that were on at this right there is an eval kind of decoupling between us and china we saw what it looked like in 2019 a supply chain that took decades to build up worse train that kind of rooted well the u. S. Doesnt want to be dependent on china for Manufacturing Capabilities well thats fine but that just means that we will see the price of goods or the futures a companies try to scale domestically and plus the parent so well see the price increase in month consumer goods rise drastically and now peter to kristis points right there which you talked about volatility are we going in store for another cycle of volatility that that we might start dropping down back to those and maybe retest those lows that we saw in march as so many analysts have actually called for already. Well we could actually take out those lows i mean 1st of all the rally was simply a function of the fed the fed bought this rally with inflation they printed a lot of money and theyre buying up a lot of debt and thats whats pushing up the market but also the market began to intice a pate a rebound in the economy when we you know turn the light switch back on and everybody goes back to work and i think the markets have overestimated what were going to recover to because i think were just going to recover from a depression to a severe recession and i think the markets going to sell off as investors really start to realize just how bad the economy is going to be even after everybody gets the green light to go back to work well actually peter ive been saying this for weeks on this show is. That look i mean when you see whats happening here when that light switch is flipped everybody is unfortunately not going to go back to work its just you know weve already and people have been hurt enough and a lot of these payments and things have been deferred you know kristie i want to go back to you it is hard to know what the economy will look like once it reopens analysts are trying to price in the recovery and the magnitude of the bounce but we can look at china to see how they are actually recovering whats going on there. Well you know i agree with peter completely on that that this entire balance has been way too optimistic on a reopening we can look at china because china is about a full 3 months ahead of the u. S. On the coronavirus curve and what they found is that simply we opening is not enough and that has not resulted in the return of consumer buying now that is particularly important when were talking about the u. S. Because the consumption accounts for about 2 thirds of Economic Activity and i think the market started to realize that now that we priced in way too much we have all this data now coming from the big our needs call and its been shown that we got too optimistic in the past and we just loading up on hope and optimism and the that and the possibility of a reopening so today were definitely getting a big self in the market were down about 2 and a half percent certainly not as violent as the capitulation that we seen in march but youre seeing capital hold back and the spark was of course the possibility as well also now that weve seen this Morning National Manufacturing Survey is and everythings coming in below expectations once again you know peter i want to hit this quick before we wrap up here treasuries are getting a bit up today on the china terror threats its like 2018 all over again but heres the red meat what about gold is this rise to sustainable or is this just another bubble waiting to be popped and i have about 45 seconds for you. Well look nobody should be buying treasuries i mean were basically warning people against the added dangers of holding treasures people should be buying gold gold was up today too but it should be up a lot more and its going a lot higher as people start to really appreciate the risk in u. S. Treasuries and the u. S. Dollar and peter schiff of europe are civic capital and christiane thank you both for that insight but chris i want you to stick around well get more of your take on something in the 2nd half of the show. Equities are mixed on the week as a possibility for a treatment of coping 1000 raises hope despite the concerns of more trade tensions between the u. S. And china now. Most World Markets are closed for Fridays International Labor Day Holiday but lets start in moscow where the mo x. Is up on the week now the ruble pushed to its strongest reading against the u. S. Dollar in more than 6 weeks this before losing about 1. 2 percent overnight in asia asian markets are all green this week again in hopes that Gilead Sciences vaccine has a positive effect on treating the coronavirus the shanghai composite is closed for the holiday gained 4 percent for the month after seeing steep declines in march when they were hit hardest by the credit now sentiment improved as the virus seems to remain contained in the country and positive news on potential treatments now the c. S. I. Of 300. 00 gained 1. 2 percent and the tech focused china rose by 1. 9 percent in hong kong the hang saying same thing it is green but it was also closed for the holiday itself some significant gains this week for 3 days in a row the index crossed above its 50 Day Moving Average japans nikkei was actually open on friday finishing just slightly in the green after a volatile week stocks slipped on friday afternoon by 2. 4 percent Semiconductor Manufacturer Tokyo Electron dropped more than 5 percent while the topics index also dropped 1. 81 percent moving to india this is it was also closed for the holiday to finish that week shares jumped more than 3 percent on thursday alone again an encouraging data from the coronavirus drug trials now the index finished out april gaining 14 percent thats the largest monthly gain since 2009 lets move to australia where we see our 1st red arrow for the week the aztecs was down 5 percent on friday alone its worst day in 5 weeks major minor b. H. P. Shares plunged more than 6 percent major banks Commonwealth Bank of australia and australia and new Zealand Banking Group all saw a loss of 4 percent each in their shares and then were going to go to south africa for the all shares that ended the week in the. Mostly in a response to easing some of these lockdowns now were going to go ahead and take a walk across the studio here and we want to take a look at markets in europe and the americas where were seeing very very similar trends as the discussion of vaccines and reopening economies is really starting to pick up some steam here so were going to go with the footsie the cac and the dax they are all up in the green the pan european stocks 300 saw its biggest monthly increase since october of 2015 this spot eurozone g. D. P. Contracted by a record 3. 8 percent in the 1st quarter in london the footsie close slightly higher on the week after a plunge on friday after president threatened china once again with more terrorists over the alleged mishandling of the pandemic now nearly all sectors were down with Energy Taking the largest hit now in france the cac closed on friday for the International Holiday saw some gains this week france entered a recession as g. D. P. Fell by a record 5. 8 percent now the sharpest decline for europes 2nd largest economy since records began in 1909 the german dax is following along with the trend in the green for the week and close for fridays haliday lets move across the atlantic to ebo best in brazil is coming back from its 9 percent plunge last week after 2 top ministers resigned in less than 2 weeks it was closed for the friday holiday and the index though is even though its got a green arrow this week is still down 47 percent this year aside from the ongoing pandemic political turmoil its crippling the south American Country now lets move north to the to mexico where the b. M. V. Its also closed for the holiday but it was up for the week in the u. S. All 3 major indices in the dow s. And p. And nasdaq and the week slightly down wall street posted its largest monthly percentage gain for april in decades but stocks tumbled on friday after a new flare up between the u. S. And china over the possibility of new tariffs are racing all of this weeks gain and then finally were going to move up to canada where the ts sex. It is a finished week up but just slightly as the next futures fell for many of the same reasons we are seeing elsewhere Lower Oil Prices are also affecting the index as well so as we look forward into the month of may all i seem to be both potential treatment of the coronavirus and americas next move when it comes to escalating tensions with china and that major Global Market walk. And time now for a quick break but hang here because when we return essential versus nonessential is a debate that has raised a big global lock down but where does cryptocurrency mining fall into the mix straight ahead we take a deep dive into the topic with a boom bust panel and as we go to break here todays numbers at the close. With who. Are you. Going to do. Walking into the words we no longer know what were walking into you. Arent. Sure what you. Think that. Is youll be a reflection of reality. In a world transformed. What will make you feel safe from. The isolation of full community. Are you going the right way or are you being led to. Direct. What is true what is faith. In the world corrupted you need to descend. To join us in the depths. For a mate in the shallows. Join me every thursday on the alex salmond show and ill be speaking to guests of the world of politics or business im show business ill see you then. And welcome back one of the more interesting side effects of coronavirus lockdowns are the impact being made or not being made to the environment there are reports of the ozone layer being restored in parts of the world due to decreased Greenhouse Gas emissions and pollution and while we are seeing cleaner air and a better environment some Industries Like cryptocurrency mining have continued so does this mean that activities like big quinn mining are not as bad for the environment at some critics have claimed well joining us now this is just the 2 of us cohosts christiane and ben swan thank you both for being here as always now ben i want to start with you over the last few years theres been a lot of claims being made about Bitcoin Mining being terrible for the environment what were those flames well it was basically Everything Everything that was wrong with the environment could somehow be traced back to big question whether it was using too much energy whether or not it was causing you know fossil fuel usage to be too high and there was there were a lot of different claims about it that essentially acted as if and ill quote one of the articles the oceans were burning and boiling because of big oil and that was the way it was treated for a long time the problem is is that right now as you just pointed out were seeing a lot of environmental effects of these lockdowns we can you know argue about the political social side but theres no question that environmentally the world seems to be better off as a result of it and as thats happening in mining has continued in fact according to some analysts its actually very close to its peak high worldwide right now and yet the environment is doing better so apparently big cohen and. I was getting a bad rap for all the things that were being claimed about how mining was ultimately destroying the environment so cars and traffic and things bad for the environment because of mining maybe not so much 1000 kristie what about all of this how has this pandemic or stay at home orders affected because of mining this is the work that you have to leave your home to take a part in in many cases correct in fact i believe that when you could go to work you could actually just set your computer to do it if youre not talking about big because you know Bitcoin Mining farms and yet these countries because money is being called essential and in other places its being locked down completely. Well were talking about 2 Different Things here because mining farms they usually dont have a ton of stuff on hand but know it is work you actually do have to leave your home to take part in if youre directly in the Mining Operations if youre part of a mining pool and merrily contributing your own Computing Power over at home and youre working off with a larger mining pool thats completely different you can be in your heart right you dont even need to leave your home but then the actual operations of a mining farm it actually works closer to a power plant or utility plant it runs 247 there always has to be stuff on hand all the time even if it is a Skeleton Crew so that prevented a question of whether or not at the Central Business thats classified differently in different regions so in places like canada mining is considered an essential business as canada they do have Energy Subsidies they tend to be very friendly and quick to friendly other places like argentina its not just like here in california cannabis is considered an essential business other places its not so at all the vary from place to place so thats what makes it very different for mining operators to have a competitive advantage because simply their geographical location contribute so much to their operations places like canada china russia they have significant they are significantly che