tv Boom Bust RT September 13, 2017 4:29pm-5:01pm EDT
i'm cmon dollars ario filling in for lindsay france you're watching boom bust broadcasting to you over around the world from right here in washington d.c. coming up on the show fear as victims of hurricane harvey and face getting back on their feet past hurricane victims have a cautionary tale about flood insurance plans and storm scammers our country is these the best in people and hard times but it also seems the worst scammers look to take advantage and are bart chilton tells us what to watch out for then market value oil demand goes up the gold goes down and the dollar strengthens we'll tell
you why all that more in today's show so stand by boom bust starts right now. after seemingly. unstoppable rallies world markets are pulling back some fearful a market correction is right around the corner the s. and p. is flattening out and equities markets in both asia and europe are yielding mixed results right now the markets could react to any number of developments in north korea disappointment from apple's i phone reveal or just a disappointing earnings report billionaire hedge fund founder leon kuperman said we could have a five to eight percent correction at any time but while many investment managers and analysts are on the same page as kuperman telling investors to brace themselves
others believe that act alone will keep the market from correcting goldman sachs' strategist david costin says with so many investors expecting a market correction that means it likely won't happen the thought here is that markets around the world are fully valued but not overvalued and despite the skepticism brewing with investors consumer optimism will be the driving force that keeps markets strong goldman's constant describes the current attitude of investors get this as tormented fools. well despite goldman sachs optimism on market strength it cut its third quarter growth forecast for the u.s. economy after two disastrous hurricanes harvey in texas and the latest irma in florida goldman currently estimates hurricane harvey cause eighty five billion dollars in damage and arm attacks on i know there are thirty billion in losses for florida the area hit hardest is the keys the federal emergency management agency or
fema says no structures there escape damage in fact officials believe one in every four homes in the keys has been destroyed and sixty five percent suffered serious damage now residents are slowly making their way back to the island but most will be without electricity and other utilities the power might not be completely turned on for seven to ten days now while property loss and evacuations are not directly. counted for in figuring out gross domestic product investment experts say hurricanes and natural disasters are naturally associated with near term slowdown in several growth indicators consumption inventories housing and the energy sector are expected to suffer the most. all right let's change gears here and talk more about the storms like a demented show host might say but wait there's more unfortunately it's at times of greatest need when unscrupulous fraud is more likely to take place joining us now
former u.s. trade commissioner bart chilton who wrote the book ponza minium monium how scam artists are ripping off america part thanks for being here you know what is it about these disaster circumstances that they really bring scammers out of the woodwork. yeah it does i mean this is a time when people are more vulnerable than they would normally be and therefore the scam stirs think that they have easy prey and that people won't do the due diligence that they need to under normal circumstances and it is just a really sad circumstance and hopefully people will because of things like your show and others be more wary about what they do given these desperate times with the hurricane disasters but it's just amazing that it really does people end up driving down to impacted areas and taking advantage of people through a variety of different frauds and bart you know on the show we've been reporting
this all along with your help about some of the price gouging that's been taking place you know ahead of hurricane irma florida's attorney general said she already received more than nine thousand complaints and said if people go after storm victims she's going to go right after them you know we heard about the case of the ninety nine dollars case of water in a ten dollar gallon of gas in texas what else is out there. well there was also a lot of gas. in florida not quite as high as texas that was six ninety nine a gallon when they were advertising between three and four dollars and in texas you mentioned the ten dollars a gallon the attorney general there can paxton is going after that station who was selling texaco gas it was just that independent station that was selling texaco gas but they also went after prosecuting a best western plus for tripling the price of hotel rooms and the same thing was
taking place in florida with with irma but you know it's not just those. that are out there but it's certainly that can still happen the gagging the samone it could happen with lumber it can happen with with food so people need to keep an eye on it and the definition by the way and this is the same in texas florida and other states too is that it is excessive price jumps so if you look at like the rolling average of thirty days if it's more than doubled that would be considered an excessive price jump that could be considered and it's only for essential items you know food water gasoline housing except so it's not for you know beer and cigarettes or anything and this only occurs when a state of emergency has been declared by the governor of the state in which case both of both the neighboring states to florida also have declared state of
emergency so all over the southeastern united states price gouging can be a crime right now and if people violate the log just like they did in texas the attorney general's will go after them and people could end up not just with big fines but they can go to jail well and it sounds like the attorneys general are you know staying on top of this but there's other frauds and scams that are out there when it comes to disasters like this what can you tell us. well i mean they do all sorts of things and you know my wife and i became were a victim of a hurricane several years ago and you are in this desperate circumstance you if your house is flooded and you know if you try to go to regular construction folks to replace it they'll get to it in six or nine months so you'll find these folks that will come down drive in from other states and be willing to do the project for you maybe it in a higher rate than normal but they'll do it sooner but they may just take their
down payment and then bolt i have to be very careful you always want to check out you know what's going on with these people also we have charities or charity scams out there despite the fact that there are many worthy charities are doing great work and people traveling all over the country from some of these organizations volunteers rushing to help there are scams toure's out there will show up with a red cap and a red shirt and say they're collecting for a charity and it may even sound the charities name similar to a charity that you know but you've got to be careful with these folks try to get the information never give them cash always a check and never do something when somebody to scald you you know they have a lot of these robo calls that people call and say they're one of you to contribute to a charity never provide information their particular your credit card information and
you know that of course can affect people all over the country not just in the impacted area because we've all witnessed the devastation on television and so you could be anyplace in the country and people will call you and house to to help donate to the cause so just be very very careful is my advice i am glad you mention charities too because there are a lot of good people that are traveling to these places to help out but you do have to look out for the bad as well now in your book about financial scams terrorism ponza. monium you listed some red flags of fraud i'm wondering are they the same red flags that we see in disaster circumstances. they are a lot of them in just a little sidebar samone that's not a book that i make any money off of i wrote it when i was commissioner and working for the government and people can get it it's actually they can download it for free at g.p.o. dot org or you could go to a public library and get that book which helps to protect you from financial scams
by set one to every public library in the nation but a lot of the advice there the red flags of fraud that you've mentioned are the same and it's that old saying if it's too good to be true it probably is so be careful about that make sure that you don't just react very quickly when something is taking place that you think about it and the other thing is make sure you do your own due diligence checked and these scams can be really sneaky they can create fake websites so make sure they're real they can if somebody can come up and show you an invoice and say you need to pay this or you're not going to get any emergency assistance well just be very careful before you take any action whatsoever and let loose of your hard earned money and you're talking about some of the things that happened in the media after and after effects of these disasters looking down the road we have about a minute left bar but what sort of things to be looking to be looking for in the future. fake fake insurance scams where people call maybe at the beginning of
a hurricane season next year and say the government says there's going to be x. number of hurricanes you better buy a more to protect yourself those could be fly by night deals and the other one that people should watch out for and this is all throughout the country simone and that is cars that have been damaged with this storm and flooded we had it with katrina nearly four hundred thousand vehicles will have over a million vehicle. who are totaled and get claimed people can go to vin check via end check dot com and check to see if their vehicle was reported as being totaled before that vehicle maybe get shipped off to another state pretty tough put a little vote bill aroma in it and be seemingly ok for a while until after maybe a few weeks and it smells like low tide so buyer beware and real quick ten seconds left but if you see fraud who do you reach out to. the justice department has
a fraud hotline and that number is eight six six seven two zero fifty seven twenty one eight six six seven two zero fifty seven twenty one simone and that's on your screen to viewers so you can be sure to dial that number very helpful information former us trading commissioner bart chilton always a pleasure having you on he's the author of pawns ammonium how scam artists are ripping off america and we need to pay attention to that as we go through these storms together now still more to come we're going to talk more about natural disasters and the funding fight that some people are having with years later also ahead italian politicians desire for a dual currency as our next guests phone or hawkins rolling her eyes we'll tell you more and as we go to the break hear the numbers at the closing bell.
and all the world's a stage and all the news companies merely players but what kind of parties are n.t. america play ninety america offer much more american person. many ways. just like. real news. good actors bad actors. you could never your own. so the parking. world of the world all the world's a stage we are. on a trial that we have spent countless hours boring through documents that tell the story of. corporate media everything uses to talk about the. i'm not a pretty clear picture about how disturbing. for her conduct has been marked these
are stories. from my parents or your post of american. question. would you have for breakfast yesterday why would you put those for the. two dogs and. what's your biggest fear in the bin on a hay ride with the less time medical board you say if you ever met the best quarterback. exploring the topic that doesn't belong in the piece now i've interviewed you to question more. all of two disasters in just two weeks hurricanes harvey in armor not only cause death and serious injury but the cost in tens of billions of dollars will be
calculated for months and years to come but before victims prepare for recovery victims of a previous storm are warning them to be cautious of fema we're joined now by boom bust machinery who has more for us for that on from the capitol you were at a conference that was held by victims' advocacy group capitol hill earlier today what are the groups have to say about harvey. they had a lot to say today so the conference was held by a group called stop and now it was formed in two thousand and thirteen by victims of hurricane sandy which of course affected new jersey and new york and the reason they formed it was because fort lee after the storm they realized they were all having the same problems with thema they claim that they're not getting their money back even though they were paying insurance for mirrors prior to the storm heading and they also said that they saw a premium spike after the storm which made their financial struggles after the storm much harder to deal with so they formed today on capitol hill and they were
joined by a law group or me law firm that has been helping them sort through victims' claims and that firm is actually now represented by michael cook who was a former trump advisor and during the conference today he started talking about hurricane sandy and then very quickly expressed his concern for victims of hurricanes and. we know for a fact what's going to happen to the families and homeowners of her her harvey and her. well they've gone through a terrible terrible thing and a lot of laws been lost the torture of those borders begins today. a measurable flood insurance program it's broken. so you know he went on to emphasize that victims of hurricane sandy were simply low balled and that's why they had to seek legal help to help them actually get the
money that they deserve so then one of the lawyers from the firm also spoke and he's sort of talking about how a lot of people have been asking him well since this is what happened to victims of hurricane sandy what does this mean for victims of hurricanes harvey and irma and this is what he had to say about that and i tell people over and over you need to look at hurricane sandy survivors for the answer to that and here we are five years later and out of our twelve hundred clients in the review nine hundred of them are still waiting for their checks nine hundred people five years later so that's the answer right now. so as you can see there's really not much hope left for fema at all well it's troubling to hear you know we were just talking earlier on the show about scammers taking advantage of these victims but to hear that there are issues with federal programs that's very troubling what is the financial strain been for victims of sandy looked like since the storm hit there. well most victims
that i spoke with today said it's just been go and ongoing nightmare for them and one woman i spoke with from jersey who lived in the tape and which is down the shore said i was in the process with a total nightmare and said it wasn't until recently so five years after the storm hit that she actually got some of her money back not even all of that but take a listen to what she had to say about her experience. between them shorting me between the room which is our insurance carrier and which is again if i pay it's been nothing more than a nightmare i had just received a check almost five years later. bringing me from royally screwed to all family history. she also told me that tend to paid. one female told her that she would have had to pay twenty seven thousand dollars out of pocket after the storm hit even though she had her own insurance so a lot of people today told me they had very negative experiences which is why
they're here trying to lobby members of congress to fix the mess flood insurance program a lot of good warnings there for the millions of victims from the past two hurricanes . thank you so much you're reporting for us from the capitol. in part because of hurricane harvey which caused oil refineries to shut down global oil demand is expected to exceed expectations in two thousand and seventeen that's according to the international energy agency which just revised its twenty seventeen growth estimates it's the third month in a row that a has raised its forecast for the year from its original estimate of one point three million barrels a day up to one point six million barrels a day now that makes one point seven percent growth on the year now the change comes with changes to global oil supply opec output fell in august for the first time in five months that was after turmoil in libya disrupted flows and other members countries worked to reduce production and as i mentioned supply is also
been affected by hurricane harvey the storm shut down roughly two hundred thousand barrels per day in production for august and the loss is expected to dip to three hundred thousand barrels per day this month of course the effect of the hurricane is expected to be relatively short lived but the expectation overall is that markets are tightening and oil prices will rise modestly in twenty seventeen and eighteen. where prices are not rising is with gold the price of gold has dropped every day this week three straight sessions of losses marks the lowest finish for the month to date gold has pulled back as the dollar strengthens now the dollar surges seem to be tied to president donald trump's tax schools we know truck met with cabinet and senate members tuesday to talk taxes and house speaker paul ryan promised we'll have an outline of a tax plan. before the end of the month some members of congress are hoping a budget plan will come first priorities now the dollar index is also being driven up as traders look to consumer inflation data due thursday if the result is
positive that could result in the fed again raising interest rates which always benefits the dollar and typically hurts gold now if a currency needs a boost it's the dollar right now it fell to its lowest level in more than two and a half years ahead of hurricane irma and north korea worries but has since signaled a comeback italy is facing a crisis of currency as more italians grow impatient with the eurozone the country's opposition parties have been radically rallying to completely leave the euro but now call for a dual currency which they say will boost growth and jobs something the country has struggled with for some time but is it a feasible proposal let's begin with lenore hawkins founding partner of marathons advisors author of cocktail investing who is joining us today from genoa italy lenore what's your reaction to politicians proposing a parallel currency to the euro. well i think politicians in the end only of
a much of the world have learned that the best way to garner headlines is to say something headline grabbing and offering up a secondary currency for the euro zone is definitely going to get a lot of headlines but the proposal really deserves not a whole lot more than an eye rolls because if we actually think of why they want to do it and if we consider who's also introducing it we've got silver silvio berlusconi the former prime minister who definitely really likes to catch the headlines and you've got the rolex socialist leader of the five star movement big grillo on the far left both of them trying to say that this is a legitimate way to help improve italy's economy. what they really want to do here is use the time honored tradition of government spending your way into prosperity which is never actually worked but they want to do that because politicians as they do you really want to spend money and the problem with the euro is that it doesn't allow italy to print so they're very frustrated you've got the italian government
debt is keeps growing and growing but the economy is barely growing and you cannot indefinitely have government debt growing faster than the productive part of the economy the private sector and that's what italy has suffered from for a long time so they propose the second currencies saying like you said that it is what's going to bring back jobs in a stronger economy to the country of but that hasn't really worked anywhere where people who are trying to print their way into prosperity now when are you talked about grabbing headlines by these politicians are actually backing away from stronger more radical calls to completely we the euro they say that a referendum would be the last resort if doesn't win in a fiscal concessions from the e.u. with that as you mentioned do you see brussels making any sort of concessions for italy. it's going to be a little tougher i mean there was there was definitely more momentum going before the french elections were mark on iran and on her. merkel is doing so well she's getting a lot more support when those leaders of france and germany were kind of struggling
it was looking like there was a bit more negotiating power but right now the euro zone has got much stronger as a whole from a political standpoint that it was a year ago and italy's economy is actually getting a bit better i mean we're seeing some signs of strength you know i'll be the not exactly robust but on a relative basis with what italy has been struggling with over the past ten years we're seeing a bit more strength starting to come and brussels why is brussels going to cave to italy right now and the rest of the european union is feeling a little bit better about it now the big picture is that the euro currency i think is unlikely to survive because never in history has any kind of a currency survived when you had a monetary union without a fiscal union and the challenge here is you got brussels in control of the currency but not in control of the fiscal policies now they're definitely trying and not where a lot of the pushback is coming you have people in brussels telling people and say
genevieve o'reilly that is famous for its pesto and that's all about the bay's all they're trying to do trying to regulate how you produce and grow from brussels and that's going to infuriate anybody so it's understandable that the italians are very frustrated with all that regulation but if the politicians in italy really really want to grow this economy there's an awful lot of things they could do here at home that would make it a lot easier for example if you look at the world bank's their recent study on the ease of doing business italy ranks one hundred twenty six out of one hundred ninety for the e.u. taxes yeah can you measure that for paying taxes we come out and is it any wonder if it's that difficult to pay taxes here then roughly twenty percent of the italian economy is estimated to be in the shadow economy still off the books will of course you're going to do it it's too darn hard taken. look at ireland who suffered greatly during the financial crisis and look at how robust that economy is ireland
ranks fifth for the ease of filing taxes and one of the great ways to grow an economy you make it easy to start a business italy ranks sixty third ireland ranks ten and there's an awful lot that can be done there when you look at the level of regulation and laws in italy it is so burdensome to get anything done here's a simple little example i go to a doctor i get a purse i have to literally go and buy a stamp to put on the prescription before i can take it to a pharmacist and get the drugs i mean that kind of thing is everywhere you want to do anything you need a notary you need a stamp you need countless countless paperwork that just makes it so much harder the tougher action that makes it more costly for businesses to grow so when are we don't have very much time left about a minute for your answer but when it comes to being on the ground in italy there are about half of italians that report being unsatisfied with the euro so suppose
italians did push for a dual currency what do you think the reaction would be from the european commission. know this isn't a party to be sure be a good condition there's only one the legitimate currency and it's the euro so they've come back now the people that have been supporting this have said well it wouldn't be obligate or you wouldn't have to except it would be purely voluntary ok well who would accept this currency right because why do they want the currency if they want to so that they can print more money now who's going to accept a currency when you know the purpose behind it is to continually devalue it just so the government can spend more than it takes an intact so we'll see if this kind of pressure from opposition politicians does have any weight when it comes to managing policies out of brussels as they deal with italy will definitely be keeping an eye on this is the elections come in in the next year eleanor hopkins founding partner emeritus advisors author of cocktail investing always a pleasure having you on thank you so much thank you that'll do it for us for now
thanks for watching be sure to catch boom bust on direct t.v. you can find us on the r t channel three two one and if you missed us there on the you tube you tube dot com slash boom bust our teeth thanks for watching see you next time. the american middle class so it's been railroaded by washington politics. big body work that's thrown down a lot of boards that's how we use them in the culture in this country now that's where i come in. one or two america i'll make sure you don't get railroad you'll get the straight talk and the straight. what.
would you have for bread. it's just that why would you put those. now i need to do due to two more. years of people been saying about rejected in the sixties full on awesome the only show i go out of my way to launch you know a lot of the really packs a punch oh yeah there's the john oliver of marty americans do the same we are apparently better than that and see people you've never heard of love jack tonight i'm president of the world bank so take. it seriously send us an e-mail people have got to know whether or not fair presenter supply american people deserve to know you and your friends at this point does it make you must guard against the military industrial. we shall never go.
to war you should know that. yes we do but we must. go. on are the missiles fired on the korean peninsula but this time they're coming from south korea they're bringing the latest from seoul. and bill from bernie sanders to overhaul america to health care system is gaining steam in the senate. then it could artificial intelligence soon detect a person's political leanings or sexual orientation all in a facial scan what it could mean for your privacy. it's when.