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tv   Boom Bust  RT  January 14, 2020 1:30pm-2:01pm EST

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this is happening around the world and covering all aspects of business and how it affects us all i'm kristie i am bridgeboro in washington here's a look at what we have on deck for you today we are virtually approaching the january 15th signing of the bay's one trade deal between the u.s. and china but this is just the 1st hurdle in a long process to soothe tensions sparked by the trade war or was about the trading of peter schiff of euro pacific capital where both wanted to break down the negotiations and as technology continues to progress so too have concerns for privacy let's get a journalist friends one joins us to take a look at the privacy in the cell phone sector and later as retail giants continue to grow more and more dominant in their sectors some regulators are competition crackdown molly barrows contributors american lawyer takes a look at how india is looking to take on amazon and wal-mart in the empire state building the brand today with stores so much brighter. as markets worldwide got a lift from the announcement that a phase one trade deal between china and the u.s.
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will be signed on january 15th china remains distinctly unenthusiastic this lack of enthusiasm from beijing is something reminiscent of the last time we thought a deal was on the table buck up cold at the last minute and keep in mind this phase one is by no means a resolution to the trade war significant challenges still remain ahead and china still hasn't publicly made any commitments to u.s. demands these add quotas as we reiterated are unreasonable targets for china to meet china isha note of caution ahead of this week's signing on social media saying the quote trade war is not over yet and that just the 1st round of the game doesn't sound very optimistic here so we shall see what transpires on the 15th if it gets done will be optically pleasing for the trumpet mr ation despite heavy balance of whether the agreement will be implemented in full by both countries know that one only covers a low hanging fruit and if china and the us. even come to an agreement here phase 2
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which will involve industrial policy ip items that touch on sovereignty while that will be near impossible and while fears of an escalation between the us and iran seem to dissipate in the market president issued a new sanction on iran to punish the regime and crack down on its few remaining sources export revenue the latest sanctions target metals as well as construction manufacturing textiles and mining making basically the entire iranian economy off limits to any nations that have diplomatic ties with the us china is now caught in the middle as it has long been iran's largest trading partner maintaining a friendly cooperation spokesperson addressed the new sanctions monday in beijing. for a long time china and iran have been conducting mutually beneficial and friendly cooperation in various fields under the framework of international law it's lawful and justifiable and not harming the interests of anyone other than we already it certainly should be respected and we urge the u.s.
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side. to stop on the wrong practice of sanctions against chinese businesses that we will firmly defend to the law and interests of chinese don't getting that we china is now calling for the u.s. to immediately halt sanctions on chinese companies for maintaining business ties with iran as a reminder iran's critical oil exports were already sanctioned in 2019 but india and china still remain importers given their necessity for cheap crude chinese foreign ministry said beijing opposes unilateral sanctions and called for washington to stop punishing chinese companies for importing these basic necessary commodities. and boeing's new chief executive officer david calhoun has officially taken the helm of the embattled aerospace giant calhoun who served as a member of the company's board of directors for many years was put in place following the firing of former c.e.o. did a small and berger in december troubles related to 2 fatal crashes of $737.00 max jets which led. the ouster of ma and burger have the cut have cut more than
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$50000000000.00 off the company's market value and now on that news u.s. treasury secretary steven the newton thinks that the loss in value could affect the overall u.s. g.d.p. by up to 50 basis points telling fox news sunday for this year we've been looking at 2.5 to 3 percent as i said it may be closer to $2.00 because of the adjustments of the boeing numbers and joining us now to take a deeper look into the state of u.s. china trade relations china trade relationship and boeing's effect on the economy are peter schiff c.e.o. of euro pacific capital and todd but before was chief strategist at bubba trading now i want to start with you with the situation regarding bubba boeing what do you make the treasury secretary's assertion that this one aerospace giant is poised to cause an issue for the overall growth of the u.s. u.s. economy moving forward. as you know brian thank drove me back it's a big deal because they're the biggest export of that we have so it's going to have
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a direct effect on g.d.p. and certainly it has slowed sales and it will allow you know airbus which is their only really main competitor to possibly because of the sales from their i mean this whole thing has been really a mess and that's what happens and you let a company get in bed with a government agency and they get a plane that's been told things like that's going to definitely hurt the g.d.p. going forward and you know what do you think already boeing has lost over 62000000000 dollars off of its mark what do you think there's a chance of recovery here. well i'm sure over the long term they'll be a recovery but in the short run certainly you know this will weigh on our exports which also could weigh on the dollar you know i've been thinking the u.s. dollar was headed lower anyway but if we end up with bigger trade deficits in part because we have fewer exports of aircraft that is going to be another factor of many that i think will be weighing down the dollar and the u.s. economy and now peter but we want to shift gears sort of start with peter here 1st
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now china's currency is now gaining momentum as the market is optimistic that a trade reconciliation is underway now the r. and b. is now at $6.00 against the us dollar climbing one percent from its august lows but it's still about 7.5 percent weaker compared to before the 1st tariffs were imposed by the u.s. in 2018 now do you think the market is cautiously positioning itself for a deal or does this lack of enthusiasm signal investors don't believe that a phase one is truly going to happen despite it being scion dealer in 2 days. well a phase one might happen because a phase one is insignificant the real deal is supposedly phase 2 that's the one that's not going to happen so if anybody thinks we're going to have a substantive deal they're wrong but the reality is i think the chinese you want is undervalued relative to the dollar and i expected to rise rather dramatically. over time and that's not going to be a good thing for the u.s. that's going to be a bad thing because it's going to make imports more expensive for americans so it's
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going to reduce our standard of living and i do think ultimately it's going to push up interest rates as well as the chinese a lot of other creditors are no longer lending money to americans and so we have to draw from our own savings pool which is extremely shallow it means the federal reserve is going to be printing a lot more money as it monetizes the debt that the chinese and other nations no longer want to buy and this is going to further lower the american standard of living. now above it is said that the u.s. is going to be removing china's title as a trade manipulator as part of this phase one deal so what do you have to say to that do you agree with peter that that currently the army is undervalued. would mayor it may or may now be undervalued the one problem with the air and bearer with the wada does not trade frilly it so it's always tanned by the chinese government so you could never get are true or read of what there are trying to do with their current see i mean there are going to keep dead current so you're low busy there's long as they can because
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a again all there are trying to is off set the terrors so we keep by in there are goods i don't agree it all with peter here that it's going to explode to the up site because there are government will not allow it to explode today of side that is one currency that is totally controlled that is pinda could only move x. amount per day all other than their 3 of fota and russ the 3 i currency now the thea courage is systems another story which is a joke all together but and the whines case i don't think that get there it's going to change whatsoever and now a peter out i want it way here peter go had a give us your reaction of that while the too busy try to get the sun out of my face because as a you know that i'm fortunately there's a sun coming into a window here so i didn't even get the hear what was saying i was to busy trying to to do this but what i said oh it's actually i agree but it so i agreed with through peter a little bit but i used to say that because the you why on is so try government controlled they do not allow at their free float nor trade is far as it should in
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either direction which is one of the issues with well want a low the big it the big mistake that the chinese made over the years is undervalued their currency i mean they did that deliberately because they wanted to maintain exports to the united states but i think that was a keen mistake i mean it helped america because we got to live beyond our means but i don't think it did anything for the chinese economy fight by it help undermine it because they cumulated a huge pool of us dollars at they ended up you know doing things would that crated mal investments at 0 distortions i think to best thing that can happen a china is to simply allow their currency to appreciate to reduce their exports to the unite states because we can't afford to pay for those products to let their own nations consume those that production so that their own people can benefit from their hard work but unfortunately americans are going to have a rude awakening when all of a sudden we have to live within our means and our means have been dramatically diminished over the years we haven't been investing we haven't been saving we've
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been relying on an overvalued currency import what the rest of the world produces and we have a say very much we've just been borrowing money to consume and all this is going to come back to bite us now above all we are now at all time highs in the market but it seems that the stock market is come clean divorced from the economic reality and the auto industry has contract and gotten worse the retail pocalypse continues with more big box store closures the u.s. p.m.i. has been in contraction for 5 months in a row now and it's at the lowest level we've seen since 2009 so what does all this tell you and how would you position where. you go right now it's telling me the markets are going to go up until they don't and if i did because they exist friendly they should go see a doctor because again these markets will at some point melt down but for today and for now they're going to continue to go higher in till they don't as long as the cheap monetary policy is in play there's no place else to go they have forced
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everybody into the equity market which is not a good thing to peter's point however i don't know that we could live beyond our means i mean i don't believe that we can hear there's no inflation and ask a farmer if there's inflation in this economy when their input costs are going up in the meantime they're outputs are coming down so there's a lot of issues here but the markets will go higher until they don't and again anybody who thinks they can time it out and say that this is the top of the market is not because it can't be done it's been tried and many have been broke trying to predict the top it will go down and you'll have plenty of time to get out if you don't panic once it starts to sell off but for now. the way it looks i don't know all the reasons why would you go lower if you are. going to think i don't think people are going to have time to get out i think with this this is a bubble it's going to pop i agree there's no way to know what he's found let you know what areas that you have time to get out and blow now you have time to get out of no one you've got time to get out not every time you have the time to get out
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with except with a given head you know because the minute it drops everybody says the correction is over you've got to buy the dip so i think most i'm not saying that they're right for profits vanish yet like it's going to say that they're right oh peter it's not just going to be it's not just going to be that people are going to lose dollars when the stock market bubble pops but the dollar bubble is even bigger and when that pops even the dollars you haven't lost are going to lose most of their value so i think americans are going to be wiped out in the u.s. stock market and the bond market i mean people are going to be surprised at how much of their wealth they lose playing it safe in the bond market because you're not played safe and you're playing with dynamite there there are no u.s. dollar denominated assets that can be considered safe right now it is a giant casino and yeah you know people think that the economy is good because they've managed to blow more air into the stock market bubble of the bond market bubble but the economy is in worse shape now than it's ever been it's in far worse
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shape than it was before trump took office mainly because he continued to pursue the failed policies of obama who pursued the failed policies of bush right all we've done is spent our way here for a 100 years it's going to be over almost every decade but 2 so again you could be right but i have i would tend to doubt that the united states is going to collapse because of all the issues that you pretend 'd to bring to the party top of the horowitz peter schiff thank you so much were to do this again really soon because you guys are obviously fiery about this and we got to get to get more from you thank you so much for your time today. ok. for motor china's sales fell for the 3rd year in a row and $29000.00 and the company is bracing itself for further declines in the broader auto industry in 2020 sales declined 26 percent year over year partially due to the softening economy and trade dispute with the u.s. and also in part due to the rise of bride hailing apps china's auto market is said to contract by 2 percent and 2020 and ford sees additional sales decline in the
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value segments to combat this ford announced that it will continue to put more effort into strengthening as product line up with more customer experiences to mitigate pressures and improve dealers possibility for plans to launch more than 30 new models in china over the next 3 years which about one 3rd of the fleet will be electric vehicles. and time now for a quick break but hang here because when we return it as technology continues to progress so too have concerns for privacy investigative journalist ben swan joins us to take a look at privacy in the cell phone sector and later as retail giants continue to grow more and more dominate in their sectors regulators are a competition crackdown molly barrows tribute to america's lawyer takes a look at how india is looking to take on amazon and wal-mart in the extra space and as we go to break here are the numbers at the close.
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basically ponder the future and look into 2020 what fascinating stories will come our way you know i've often said on this show that you can't have capitalism without capital capital without positive interest rates encouraging people to say and this next story this next whole show this next entire segment is going to be dedicated to this very notion.
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you are no offense but you no longer a young woman in fact you are one of the last living survivors of the nazi ellis asked i'm aware of it. all you like. and you can never forget maybe you can know i was really like to be inhaled because he would never believe that want to go to as a hobby of course for 30 years and over the curb it. seems a lot over by the side to make it right when i get out on the farm saw you don't want to take my song to their next meal so you can listen in hopefully bless my heart hurts.
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bob bob bob try to. google's parent company alphabet will soon be the 4th big tech company to join the one trillion dollar club google success comes that is the biggest beneficiaries of global online advertising the advertising division brings in 99.6 percent of the company's revenues with revenue growth accelerating to 26 percent year over year who goes all their revenue include this cloud efforts and that it represents a substantial upside for investors google is increasingly trying to make themselves
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more than an advertising and search engine company but also is services company with hardware and platform capabilities as google is poised to hit this milestone the company is undergoing a leadership transition co-founders larry page and sergey brin announced last month that they are stepping back with sundials pichai who will be the new c apple was the 1st company to reach the one trillion dollars mark in market cap followed by amazon and microsoft these 4 tech companies have since been surpassed by saudi aramco who now has a market value of 1.9 trillion. a new push by privacy international is calling on google the developer of the android operating system to remove something called bloatware now if you're not familiar with that term think about when you get a brand new cell phone or even a p.c. computer that is already stuffed with pre-loaded apps and these apps can not be removed from the system now privacy international is leading a coalition of more than 50 organizations which is demanding google give users the
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opportunity to delete any and every app from their device part of their open letter to the group said to be from the group said to google states we have the underside agreed green with you google c.e.o. sundar pichai that privacy cannot be a luxury offered only to those people who can afford it and yet android partners who use the android trademark and branding are manufacturing devices that contain pre-installed apps that cannot be deleted often known as bloatware which can leave users vulnerable to their data being collected. shared and exposed 'd without their knowledge or consent joining us now to discuss this is investigative journalist ben swan ben thank you so much for joining us today now i think the 1st and most important question here is now where it can be annoying sure but is it actually harmful to the user in most cases it's just kind of sits on your phone it takes up space or is there more to it that were missing. no i think there is more to it than that and it's the problem that we have with so many apps guys over and over we see
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this problem right which is that many applications go into your system and essentially take information from you that it's they're not really supposed to have or in many cases don't even really need to have so what you'll find is that some of these pre-installed apps will automatically access your camera features your pictures your videos your contacts lists even though you haven't given permission to do so or again it might not necessarily need to do so because we all know that the real product everyone's after is data and so what we see with bloatware is that and i'm sure you guys have experience as you go on to your phone you're trying to make space and you have about you know a half dozen to a dozen apps that are sitting on your phone and you say i don't ever use this i don't need this i don't even want this but there's no way to actually remove it and so privacy international is saying to google that people should have the right to remove any app that's on their system that they do not want to have now the letter also claims that the devices carry the quote google play protect badge but in actuality 91 percent of these applications do not even appear in the google play store why is that you know well that's
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a big problem kristie i mean if you think about it because it's the google play protect bad essentially comes with the android system google saying we're we care about your privacy and we care about protecting you the problem is a lot of the apps that are actually on the device and this is the really scary thing that are pretty loaded wouldn't actually be allowed on the google play store because they don't necessarily pass all of the the rules in terms of google standards for privacy and data collection and that seems kind of weird doesn't it that you can be a preloaded app on the android device but if you weren't pre-loaded you wouldn't make it onto the google play store because you don't follow all the rules and so that's that's probably the biggest issue here with this whole thing why is google basically force feeding you an app that they wouldn't even allow in their play store if it were being forced upon you bet i would want to get to another story but it doesn't i will have time for today so i'll get the eye on that later this week but i think the question i do have asked about this bloatware is now are these apps that we're seeing here that don't appear on the google play store but appear on the
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phone are those usually like phone based like a samsung app for instance or something like that. it can be but it could be any number of things there are video plane apps that are already put on their sports apps some of them airy even you know more legitimate looking like in f.l. app right so some of these were already come free loaded onto your phone but again the problem that you're going to have with some of these different you know devices is you might not use this you might say listen i have all my phone netflix h.b.o. a few things like that but i don't want these particular kind of unknown apps to be on there i'm never going to use them the problem is you're not using them they're using you. thank you so much for that fascinating insight ben swan thank you for your time. does things. india is ordering an investigation into e-commerce giant amazon and wal-mart's flipkart over accusations that the american based companies violated competition laws for more on the investigation we turn to legal journalist stranger with america's lawyer some ali what are amazon and flipkart accused of
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doing. hi kristie will the complaints against the 2 companies was filed by a group in india that represents small and medium sized businesses and they're making accusations against these companies that have been made for a number of years now they allege that several of amazon and flip cards so-called preferred sellers were affiliated with or controlled by the companies themselves either directly or indirectly and remember wal-mart purchased a majority stake in flip car back in 2018 well as a result the country's watchdog group the competition commission of india ordered a wider probe this is according to reuters in the c.c.i. outlined for problem areas if you will lead to anti-competitive practices including exclusive launch of mobile phones by these e-commerce companies promoting preferred sellers on their websites deep discounting prices prioritizing some seller listings over others so basically in general the brute group bringing this complaint says that this is preferential treatment it's hurting small businesses and again this comes after wal-mart just invested $16000000000.00 to buy that big stake in india's
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flipkart it's the biggest deal ever for wal-mart also amazon founder jeff bezos will be facing protesters most likely is expected when he comes for a planned company visit to india next week to talk about exactly this making more connections with small and medium business owners to expand e-commerce so amazon walmart other companies they've really been trying to make inroads in india for some time and this is just the latest problem that they're facing trying to tap into that growing market looks like the 16000000000 dollar question here is how will this impact their ability to do business in india because that's what they're trying to do in the 1st place. that's right while they're still there that you know for exam. well wal-mart is really pushing wholesale to a lot of the smaller retailers this is one of their 1st steps in getting there but each time they try to take that 2nd step which is to create more of that e-commerce relationship it seems the country implements more regulations and so even though amazon flipkart say they're abiding by these regulations. the companies just
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continue our country exactly for example continues to sort of push back against them out of fear that they're going to take advantage of india's you know smaller mom and pop type businesses and this is a huge market we're talking about india it's got tremendous e-commerce potential 1300000000 people it's the world's 2nd biggest smartphone user base so of course it's a key market for online retailers is one of the reasons wal-mart was even interested in flipkart to begin with but again these are the same allegations that keep coming up each time they try to expand and target these smaller businesses and create these relationships that these companies are violating india's foreign investment rules they're burning billions of dollars are for these huge discounts that end up hurting smaller businesses so even though the countries continue to pass these new regulations to curtail their growth amazon flipkart say they're in compliance with all rules and they're not going anywhere even if bezos does get protested when he makes it to india. whereas contributor with america's lawyer thank you so much. thanks christine. and finally general motors is planning to unveil
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a brand new all electric pickup truck under the branding of hummer according to a report from the wall street journal now according to these reports the new hummer truck will hit dealerships in 2022 under the g.m.c. brand and at this time it doesn't appear that there will be a full revival of the hummer line of bessie's which was the h one h 2 n h 3 now previous versions of the massive s.u.v. were based on military humvees g.m. also sold 2 smaller versions branded as i said the h 2 n h 3 now the brand went defunct in 2010 following the global financial crisis crisis which sent fuel prices skyrocketing and resulted in a bailout for general motors and several other automakers here in the united states now the new evie version of the hummer is part of g.m.'s multibillion dollar plan to release 20 brand new evey's by 2023 of the new vehicle will apparently get a star studded roll out during this year's super bowl with an ad featuring n.b.a. superstar le bron james now kristie i do find it interesting because these were
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massive heavy vehicles which is not generally conducive for and evy so it's a wonder if they'll keep those big body styles if they when they move forward well apparently it seems to be the new trend of us must come bail his new cyber truck so apparently it's very very masculine very bulky very muscle cars that are electric driven so it is interesting when we're going to see that what i think that's 3 or 4 weeks away so we will get all the details about this brave new hummer that that's it for this time you can catch boom bust on directv channel 32180. 7 on the t.v. ad. or as always have us up at youtube dot com slash boom bust r.t. see you next time. corruption summed up the tasing even for the owners so how to choose the pet food
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industry is telling us what to feed our pets really more based on what they want to sell us and was necessarily good for the pet turns out may not be as healthy as people believe and we have animals that have you know diabetes in arthritis they have auto immune disorders allergies we are actually creating these problems it's a huge epidemic of toms all of them i believe can be linked to sherry simple problem of diet and some dog owners so heartbreaking stories about their pets less treats to larger corporations are not very interested in proving or disproving the value of their food because they're already making it a $1000000000.00 on it and there's no reason to do that research. just one magic bullet you could actually come up with some of the top of these baby talk about ways we get access to capital and capitalism is important so we could
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actually have programs that actually help folks who want to do that but when you give everybody a $1000.00 i'm a poor person i'm going to consume that and then you're rich you're going to invest that equity the wealth the spirit is going to grow because you're not using your money to do good so you're literally buying more crazy things and then my landlord knowing that i got a $1000.00 you just go raise my writ so then you get your flesh and go all in there . and the money isn't isn't my. idea. of a devise of a time about the same position as if that were in a sense as if i'm up as a more about. when they're putting aside the. scene that i'm going to buy. before.
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him by the. u.s. secretary of state. america's strategy of terror and saying the killing of the arena in general kelson solo money was part of an overall approach it will apply to russia and china. ultimately callen as prime minister suggests the us was partly responsible for a run this downing of a passenger plane last week saying the victims would still be alive were it not for the recent escalation. over a 1000 french doctors and hospital workers resign from administrative duties claiming that government is failing to provide proper funding for the health sector
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