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tv   Boom Bust  RT  August 4, 2017 8:29pm-9:01pm EDT

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thank you i thank you betty thank you guys because. i do. all the food we don't need something. everyone in the world should experience. and you'll get it on the open road. the old according to just. welcome our world come along for the.
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all the worlds and all the news companies merely players but what kind of parties are into america play r.t. america offers more artsy american offers more. in many ways than using landscape just like the real moves big names good actors bad actors and in the end you could never know your audience so the park and all the world's a stage all the world's a stage all the world's a stage and we are definitely a player. i'm saying modellers ario filling in for lindsay france you're watching broadcasting around the world from right here in washington d.c.
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coming up over under fire the company is constantly thinking multimedia goes after one catches fire the driver inside and job jubilation we look at how july's jobs report beat expectations and what. that means for the economy in terms policies moving forward later sky high rents are kicking more people out on the streets how other international cities compare with the u.s. homelessness problem that. starts right now. or is again catching heat this time for knowingly renting out defective cars to its drivers in singapore the ride sharing company was slow to pull the recalled cars off the road until one of them caught fire with a new driver inside luckily the driver was not hurt but goober admitted in
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a statement we could have done more when learning of the recall the wall street journal was the first to report this story seven months after the fire because car ownership is so pricey in singapore the company was having a hard time attracting drivers so the country's operation bought a fleet of thousands of used cars and rented them out to drivers and some of the cars it buys are from grey market importers instead of dealerships that will honor recall repairs when some of the honda vets' old cars were recalled in april twenty six thousand for a part that could overheat continued to buy the faulty cars for eight more months in a statement said as soon as we learned of a honda vettel from the lion city rental fleet catching fire we took swift action to fix the problem but we acknowledge we could have done more and we have done so all of the faulty that's all cars have since been fixed and it says it's proactively responded to six additional recalls this year. it's
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a golden day for the u.s. economy experts are getting over the july jobs report released friday. u.s. employers added two hundred nine thousand jobs in july beating wall street's expectations with the nation's unemployment rate ticked down to four point three percent the last time it was lower more than sixteen years ago in february two thousand and one still wage growth remains sluggish average hourly pay for workers rose to twenty six thirty six from twenty five seventy one a year ago a two point five percent gain but it typical target rate when unemployment is this low is around three point five to four percent industries driving employment growth include home health care services outpatient care centers and metal or mining all up point eight percent weighing it down jobs in retail down point seven percent and ten thousand jobs for the month and logging down one point eight percent and nine
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hundred jobs joining us now to get more in-depth on what these numbers really mean i'm joined by former u.s. trading commissioner bart chilton part another strong report it beats expectations what's your take on it. hi samone yeah well the expectations of the economists that it looked at this was one hundred eighty six thousand jobs but as you say this is the second time in as many months that the performance outweighed what the experts the sos poses as for experts said last month we had two hundred twenty two thousand jobs and two hundred thousand two hundred nine thousand this time so by and large this is really positive news i mean it's not unbelievably great but it's a lot better than what we've had in a few recent months remember back in march we had a below one hundred thousand so as we look forward you know this is pretty good news for the economy and also by the way for the president i suppose or is it
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a standalone report is it good news or are you seeing a significant trend when you put together the past couple of months. if you look over the last couple of months and you go through the last three months i'm on it's all averages out at one hundred ninety four thousand that's because some of the estimates have been revised over the last for the last couple of months and then if you go back to the beginning of the year it's one hundred eighty four thousand jobs on average that have been produced you know this is about what was going on at the beginning of last year and and you noted that the unemployment rate is four point three percent the lowest in sixteen years as you as you said but a year ago july in two thousand and sixteen when president obama was still the president we're four point nine percent so we've been making progress but this is about a million jobs this year and i guess you could call that you know during the trumpet
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ministration right right that's what i don't know a great way. but by the same token i mean this is an eighty two month expansion since the great recession jobs have been created in every month for the last eighty two months so it's not like donald trump was a nod. rated all the sudden we created jobs and quite frankly i don't see any policy proposals that have led to increases in job save a couple of deals that he's tried to to work on like with carrier and in the end except for a there's been a lot of betting on what he would do on policy tax reform infrastructure health care the big beautiful wall as he calls it but none of those things have come to fruition and so i'm not sure what it is that's really you know he's done that's created this million jobs but i don't want to take it away from him. doesn't seem to have messed anything up in that regard so i guess a minor buya it's still it's still going in that direction while he's president it
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could have reversed on friday morning president on a trump tweeted excellent job numbers just released and i have only just begun many jobs stifling regulations continue to fall but as you mentioned unemployment was already at four point eight percent when obama walked out of the white house in january so my question is what is still be trending this way regardless or do you think that his talk and his policies will have something to do with the fact that we have matched the lowest unemployment rate in sixteen years that should be a big accomplishment. well i mean i want to be positive on the president but it would have been real hard to mess up what had been done in the last nearly seven years of an economic expansion i mean could have could have messed it up. so i give him some credit for not messing it up i give him a zero a big whopping zero on getting some of these things done like infrastructure in particular trillion dollar infrastructure proposal and the tax reform proposal both
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of those things could majorly fuel injected our economy and they haven't lifted off whatsoever so he's got lots of work to do and if you want to take credit for the million jobs so far. sheriff i don't have any problem whatever is president gets credit or blame for what happens with the jobs but there's still room for improvement here you know there are still areas in the unemployment sector me look at you know blacks have a something like a seven point three percent unemployment rate team i think they have got a thirteen percent unemployment rate so there is room for improvement big time one of the rooms for improvement is pay raises why are we still not noticing a significant increase with pay when we have an unemployment rate that is so low. well you're absolutely right and that is something that bunch of people including the fatter are looking at but they did rise nine cents or well on average pay rose
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nine cents in july to twenty six thirty six an hour now if you're making minimum wage you say wait twenty six dollars an hour i'd like to make that but that includes the folks the c.e.o.'s and the executives that are making a lot more than twenty six dollars and thirty six cents an hour that's by the way up. sixty five cents an hour over year over year the wage increase so it's an improvement but as you noted in the opening segment to this it's only two point five percent wage growth as opposed to three point five which you know the experts sort of look at when they're determining monetary policy so gauge the optimism here coming from mubarak my question is once the next target. well i think we'll have to see if this maintains i expect it to you know i wouldn't i'd be really surprised if we end up at anything lower than the average again one eighty
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four for on the year so far i think that you know if we can get above two hundred that will be super if you take that and you combine that with the g.d.p. growth that we're starting to see a tick up a big improvement since the first quarter at one point two percent you know i think that we could be headed for a real recovery that we've been waiting for all these many years as sort of been struggling right but i'm hopeful that if we if we go along the course we're going now we can get there those could definitely happen that stuff could definitely happen samone if we got those two policy proposals that i discussed earlier through tax reform and infrastructure we'll be looking for it commissioner bart chilton always a pleasure to have you on thank you so much things. well the u.s. is the third most populated country in the world so let's take a peek and see how the second most populated. country india is doing on this one india is blowing the rest of asia pacific out of the water when it comes to job
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confidence according to quarter two numbers released this week by the michael page job applicant confidence index eighty four percent of indian professionals think that their country's economic situation ranges from good to excellent the next six months that's compared with sixty six per cent among their asia pacific counterparts despite recent layoffs and increased automation seventy three percent of respondents were confident of securing a job for the next three months while seventy percent of respondents expect a promotion in the next year now india is brained eight on the global foreign direct investment in confidence index the us germany and china top the list here but there is trouble in the g twenty where member states make up the world's largest economies inflation has slowed to just two percent in june that's the lowest level in almost eight years when during the depths of the world recession growth had slowed to one point seven percent in october of two thousand and nine central bankers are puzzled by the sluggish growth as they look for clues it's time
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to raise interest rates. well time now for a quick break but stick around when we return is it tough trade talk already having an impact on the deficit the latest numbers that give him reason to celebrate as we go to the break here the numbers at the closing bell. what do you have for breakfast yesterday why would you put those up for your wife or. what's your biggest fear. of a big moment when so let's talk a little bit what would you say if you have that. quarterback. that's one topic so simple. now i need to do due to. more.
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i'm a trial lawyer i've spent countless hours of the morning through documents that tell the story about. corporate media everything uses to talk about the. i'm not a pretty clear picture about how disturbing our work would be. these are stories that no one know. i might have to own your home or. where.
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exports from the u.s. have hit its highest level in two and a half years the commerce department announced friday in june exports rose one point two percent to one hundred ninety four point four billion while imports slipped point two percent to two hundred thirty eight billion that means the trade gap slid nearly six percent to forty three point six billion dollars the rise in exports was driven by higher foreign demand for american soybeans computer accessories and other products the u.s. may also be getting a boost from global economic growth in the weakening value of the dollar against other currencies in june the u.s. imported fewer cellphones and household goods president trump has vowed to tackle the u.s. trade deficit claiming unfair trade deals with countries like china but while the overall u.s. trade deficit fell the deficit with china actually rose more than three percent for
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the month where it slid it is with mexico the goods deficit slid eighteen point three percent with our neighbor to the south while the trump administration works to renegotiate nafta the trade deal with mexico and canada. and oil giant saudi aramco is potentially investing billions into a chinese oil refinery owned by petro china the deal has been valued at over two billion dollars and would give saudi aramco a thirty percent stake in the company it could also be a give and take relationship with saudi arabia supplying the refineries need for crude oil and iran buying retail assets from petro china this isn't a passing fancy for iran co either for years the company has looked to strengthen ties with china saudi arabia has been one of china's top oil suppliers and has even looked to build refineries with chinese companies but while all this takes place banks have cut forecasts on oil prices this is the third month in a row that this is happened a poll conducted by the wall street journal of fifteen different investment banks
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predicted that brant crude will average just fifty two dollars a barrel while the west texas intermediate u.s. oil gauge is estimating an average of fifty two dollars. it's no secret that a rise in cost of living can exacerbate homelessness especially in urban areas but a new study shows just how strong that connection is in some american cities many of which are already struggling to provide affordable housing boom bust bianca sheeny has more on this one for us now are we talking about buying homes or are we talking about the cost of renting we're talking exclusively about renting homes so over the past decade more americans started renting instead of buying which pushed up rental prices which then impacted the growing rate of homelessness and several american cities in some ways the u.s. housing market never fully recovered from the two thousand and eight recession
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potential home buyers into renting instead which explains why the rate of home ownership is still below its pre-crisis peak and that explains why rental prices continually rise and are starting to affect. homelessness across the country in nearly every american city a jump in rent prices almost guarantees an increase in the area's homeless population that's according to a new study from zillow using its own data and figures from the u.s. government but the scope of the impact varies depending on the city for example if there are five percent in new york almost three thousand people will become homeless as a result and los angeles almost two thousand will pursue moller cities like houston or tampa the number is far less because of one key factor in areas that have a greater rental vacancy rate a spike in rent prices is less likely to push people into homelessness in order to maintain that vacancy rate both houston and tampa approach affordable housing and
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shelter head on but those efforts could stall in two thousand and eighteen budget cuts proposed by the white house would remove seven point four billion dollars from the department of housing and urban development that would be new lumination of two hundred fifty thousand rental assistance vouchers that renters often rely on to avoid homelessness some of those cuts could be protected from turnover but most local housing authorities will have to cut back on assistance or take it away entirely but to be clear it's not just rent costs that contribute to homelessness are several other elements to consider too but if affordable housing gets harder to come by and rent keeps rising it will be difficult for cities to keep it under control. it may not be the only reason but clearly there is a correlation when it comes to rising rents i'm wondering if we see the same correlation in other global international cities or is it just happening here in the u.s. actually there are a lot of parallels between the u.s.
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and australia particularly in sydney there has been suffering from an affordable housing crisis for the past few years and the local government in sydney conducted a study in two thousand and sixteen that showed the homelessness rate between twenty fifteen and twenty sixteen increased twenty by. five percent just in sydney alone and if you look at the other numbers about their local economy it makes sense since two thousand and six which starting from a longer period behind rent increased by sixty percent and wages only increased by forty eight percent so again parallels with with the us here we're seeing increases in rand but wages haven't really picked up which is why people are having trouble paying their runs and paying their mortgages so it's certainly not just a problem unique to the u.s. and it's not something that people on the international community have not looked at before too i mean there was a u.n. report earlier this year that talked about the global housing crisis what can you tell us about that so far who is a housing expert. issued
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a report with the u.n. that basically argued the world is approaching a global housing crisis because of how many people are being priced out of cities in her report she basically argues that housing was once considered globally as a social function and importance to society but is now just more of a financial commodity and really used for personal investment and so as a result she is basically saying we need more regulation of the private sector involvement in housing markets across the world or people will be continued to get pushed out of housing markets and ultimately we'll have more homelessness struggles all over the world which is why it's so important for all of these countries to start seeing some more wage growth absolutely thank you so much for that report. if you've been watching the dow break records this week you may think it's only a matter of time before it all comes crashing down but according to one very influential financial voice it's not a stock bubble investors need to worry about it's a bond bubble former federal reserve chairman alan greenspan recently said this in
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a bloomberg interview by any measure real long term interest rates are much too low and therefore unsustainable when they move higher they are likely to move reasonably fast we are experiencing a bubble not in stock prices and prices here to talk about what that could mean is marshall our back research associate with levy economics institute marshall first of all i want to just break it down real quick what is a bond bubble. well first of all thanks for having me on simone well you know a bomb bubble is like any kind of financial asset bubble it's viewed as a situation in which prices are well above sustainable levels or well beyond historic mean levels and the. prediction is that if you have a bubble ultimately it bursts and that there is some economic fallout from the after effects of that so what is your take i mean is greenspan right here are we racing toward this impending bond market bubble burst. well i thought it very
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interesting that he's made this comment because of course when he was chairman of the federal reserve there was exactly the same question posed to him in relation to the equity markets specifically to the nasdaq high tech bubble and in the late one nine hundred ninety s. he then said that it's very hard to anticipate a bubble in advance and who are we in effect to second guess the views and wisdom of millions of investors who have come to make these investment decisions so i do find it rather interesting that now that he's retired he sees fit to put out some bubbles again to answer your question yes i mean i think we're closer to the end of the bubble market than the beginning that's all because we've had a thirty year virtually nonstop rise and yields the fall of two historically very very low levels but we had a similar situation in japan in the aftermath of the great crash in the one nine
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hundred eighty nine hundred ninety period and you know if you went ahead and shorted in. response to that you know you've had a very hard time a bit over the last it's been almost three decades where you had historically and anomalously low interest rates in japan so greenspan might be right in the sense that we are in a bubble but i think in terms of timing and also in terms of the after effects. in regards to his prediction that you get rapidly rising rates i'm not sure that's that's believable lie for a number of reasons you've given me a number of things to talk about i want to hit all of them i want to i want to start first with your mention of how greenspan seems to be changing its tune from when he used to be chairman to now in his retiring years do you think he's saying that the fed should step in with this bond bubble. you know he i suspect that he does have that as part of his agenda because he doesn't make he's a very political animal he always has been and he doesn't make those cars. it's of
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statements lightly i think also if you look at his own tenure at the head of the federal reserve what he probably has in the back of his mind was we did have a bond market bubble in the european bond markets in the in the early one nine hundred ninety s. this is before we had the own and you still had individual national currencies and this was one of the first instances we had of hedge funds engaging in carry trades they took they took advantage of low rates leveraged up not to the same degree they do now and they bought bonds on a leverage basis in a lot of these european countries sweden norway france germany but the problem is that the trades got very crowded and they were not particularly easy to unwind because many of those bond markets such as sweden for example or the netherlands were not particularly liquid bond markets and so when the unwind finally did come as a result of margin calls long term rates spiked up very quickly and in those days
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none of the central banks monitored positions like hedge funds or took any notice of of leverage positions so i think they were taken aback by this call of god and really didn't have a problem response for that to things have changed a lot in the past two decades so ok well so if this bubble does or could we see the effects rippling globally not just here in the united states i mean japan you mentioned it before is having its own crisis in the past but it's also one of the biggest foreign holders of u.s. government bonds right now so how would it affect other countries that are heavily invested. well look at japan first of all i would query whether it's actually been in crisis the last couple of decades and by a lot of metrics economy there is done reasonably well and the point is that people always expect that because you've got this these very very low yields and the so-called bond bubble in japan that you're going to have disaster following and i don't think it follows as far as the u.s. goes yes if you had a collapse in bond prices and rates spike
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a lot higher than that. would have an impact a material impact because you've still got very high levels of consumer personal and private the private debt levels in general are very high in the us and of course the housing market particularly mortgage rates. the bond market so clearly that would impact on that as well but of course the fed could easily step in and modify that they can easily control rates of both the short and the long end and they've done that for many many years so i'm not sure that you will see this big bond market to balk that greenspan is talking about the minutely if it does come i don't think it's going to be because of any. anything particularly in policy and i think the fragility in the u.s. economy still remains in the private sector you still got very very high prevailing levels of private did and i think that's where the risks are not as far as the u.s. bond market goes interesting take io like hearing different views as to what is
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going on right now marshal our back i always try to give those to you perfect and having a global perspective too is very helpful marshall our back research associate with levy economics institute thank you so much for your time today thanks for having me on thanks to money. when we think of vending machines we usually imagine putting a few quarters into a machine and getting a coke or a bag of chips well the ali baba group in china is bringing a new type of vending machine to the country it definitely costs more than a little bit of pocket change t. mall which is a shopping site in the ali baba group it's looking to create a vending machine for get this you can see right there luxury cars but they're not sold in a rinky dink the average dispenser no these cars will likely be stored in a garage like structure you can view on your smartphone of course well how does that work essential all you need to do is select the model you want pay a ten percent initial fee then pick up your car and off you go but don't get too
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wrapped up about your new ride this didn't happen in china but in. the u.k. a new ferrari owner destroyed his two hundred sixty thousand dollars vehicle an hour after he purchased it so be careful when you're out driving this weekend if you're driving in your new ferrari i wish i were but that'll do it for us for now check out the show on youtube youtube dot com slash boom bust r t thanks for watching see you next time. please. call the few we don't agree on. everyone in the world should your theory of illegal and you'll get it on the old the old. the old according to josh. the modern world coming from iraq.
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our culture is awash in lives dominated by streams of never ending electronic hallucinations that bird fiction until they are indistinguishable we have become the most deluded society on politics as a species of endless and needless political theater politicians and just celebrities are two ruling parties are in reality one part of the corporate world and those who attempt to puncture this. breathless universe of make new designs to push through the cruelty and exploitation of the little or are pushed so far to the margins of society including by
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a public broadcasting system. has sold its soul for corporate money that we might as well be mice squeaking against an apple squeak we must. be getting now the one. some musicians want to change the world and some musicians want to entertain. want to change the world sometimes you can be ahead of the curve by not want to change a game change and entertained at the same crime when you get right being black in america this is so volatile mix. between what's going on now and when n.w.a. first came. in on. the great divide is a shame that a country is so rich you know who is being. more pressure.


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