tv Boom Bust RT January 22, 2020 8:30am-9:00am EST
hour of the american economy will dissect his comments in davos plus following it's looking for billions in loans to keep afloat as $737.00 crisis continues well tell you what that means for boeing's largest competitor and self korea is considering changing the way it classifies cryptocurrency for tax purposes and it could be a very big deal a lot happened on this very busy day so let's get started. and we begin in davos at the world economic forum where president trump is addressing world leaders and as you would expect he is talking up the u.s. economy. when i spoke at this forum 2 years ago i told you that we had launched the great american comeback. today i'm proud to wear that the united states is in the midst of an economic boom the likes of which the world has never seen before. we've regained our stride. rediscovered our spirit in reawakened the powerful
machinery of american enterprise america's thriving america's flourishing and yes america is winning again like never before well in his address at the w e f president trump talked about the success of completing phase one of the u.s. china trade deal about the end of nafta and the signing of the u.s. in ca and he also talked about the completion of a new trade deal with japan but all in all the president urged other leaders to reduce their own use of regulation. we've also launched the most ambitious campaign in history to reduce job killing regulations for every new regulation adapted we are removing 8 old regulations which will save an average of american households about $3100.00 per year today i heard generations to follow our example in to liberate your citizens from the crushing weight of bureaucracy and meanwhile during his address to the world economic forum president trump spoke
about protecting the earth announcing that the u.s. will join the one trillion tree initiative. today i'm pleased to announce the united states will join one trillion trees initiative being launched here at the world economic forum one trillion trees and in doing so we will continue to show strong leadership in restoring growing and better managing our trees and our farmers but as the us president extended the olive branch in reinvigorating the green spaces which serve as the lifeblood for humanity it took a shot at climate activists for their dark world view. but to embrace the possibilities of tomorrow we must reject the perennial prophets of doom and their predictions of the apocalypse they predicted an overpopulation crisis in the 1960 s. mass starvation in the seventy's and end of oil in the 1990 s.
and the u.s. president went on to insinuate those who advocate for change are trying to grab all the power and change our way of life now ben i found this kind of an interesting term because he touts the u.s. economy trade deals are huge he talks about getting rid of regulation as we just discussed here but then he makes this turn and says hey you know and we're involved in resupplying the forests if you will but then goes on to this attack on climate change activists and it appears at least to me that this was a shot of great a thunder who was at the world the world economic forum and has been all over the world discussing this very topic yeah it might have been pointed towards here but i have a little bit of a different theory on it my belief is it was less about anyone at davos and it's more about setting himself up for the 2020 reelection campaign and contrast in himself against really the democratic field because anyone in the democratic field right now whether it's bernie sanders or elizabeth warren whoever it might be have been taking this this climate change initiative saying it's imperative that we enact climate change legislation we have like 10 to 12 years before we can't
reverse course and so that has been a major talking point in the democratic primary so far i think the president is. his kind of opposition to that and his counterpoint to it which will be hearing much more of i think over the course of this year and i think that's an interesting take because it is very possible is everything that trump does about winning and maybe he's yet exactly and maybe he's pushing then say this is less about the world stage and it's more about the u.s. election now we want to take a deeper dive into this and we're going to bring in steve keen right now professor of economics on patron all the way from amsterdam. steve thank you so much for joining us today let's start with this idea of prophets of doom number one what do you make of the u.s. president taking on climate activists while in davos and how big of a role more importantly does climate policy play into the state of the global economy. well it is going to get some of the crucial for the next stick i just it's not prophets of doom it's engineers to apply that system of thinking to looking at
the capacity of the planet 50 years ago this is the limits to go study they weren't going to use in fact with us and behind it was the institute is on to beat the mathematics for the weapon tyrants on american ships that helped america win world war 2 so the idea that it's going to use is causing in profits of germans engineers that work at the systemic constraints on the planet and we're now seeing those coming home to watch. the chicle of trucks on somebody to disparage and mischaracterize the people who suppose. the president trouble also kind of dug in on the strength of the u.s. economy he talked mostly about that stating that we're having a blue collar boom and touting trade deals with north american partners and also with china we talked about those deals a minute ago do you agree with the assessment that america is in the midst of an economic boom because when you look at some of the surveys that are being done right now steve most americans are saying they think the economy is doing better but when they're asked especially middle class americans if the economy is doing better for them they say no only 34 percent of americans think it is doing better
for them. yeah this is i mean 1st of all in terms of the right have got aggressive the a car. iraq now it has risen quite substantially and it's like some of the credit for that from the lows if you look back in 2007 saying the growth rate was about $13.00 quarters of one percent it's now running at 3 and a half a century now that is a substantial improvement in the lodge thought of why is the trade is the is the guy got the. government deficit he's running he's running a deficit of about 4 percent of g.d.p. that stimulates the economy economy economy should run deficits and this is the course there's always this problem and he deficit decision in the in the in the congress the ironic thing is it's not only republicans who are anti deficits when they're out of office and run deficits when they were in office and the deficit actually adds to demand and still income and that's one reason why the economy has sent around quite substantially but a society of the greatest in the history of america i'll come on the insights as
you go to look at the data on that so you know it's a composite the 3.5 percent right that he's is now substantially above anything since before the financial process is of that the average joe la-la between the fifty's and sixty's so yes it's a boom but it's nothing like the skull of the fifty's and sixty's and back then the share of income going to work as was odd than it is now and workers had tried unions by going on it off with white crosses when it was a recovery so they got a lot out of the increase and in employment setting up as an increase in wages as well now they scouted they are in the cycle get caught i mean i think it should be called the gag economy it's all about gagging the working has the capacity to bogen and they're not sitting the benefits it is going to the office sections which of course is trumps real constituency you know on your point about deficit the touch a good political talking point because people can totally gather that but overall you're right deficits can actually be good for the economy and they're really just using it as a political fodder now i want to stick with the idea of trade what's happening with
trade now president trump and president french president many mccrone have agreed to delay a possible trade spat between the 2 countries. which could have included 100 percent tariff on french goods including wine and wines and cheeses now you remember this all stems from the french tax levied against u.s. tax companies and the white house said monday the 2 leaders spoke and have agreed it's important to complete successful negotiations on the digital service tax and mccrone also tweeted about the conversation saying we will work together on a good agreement to avoid tariff export escalation now where do you see this heading and what would a trade war between france the u.s. do to the european economy into the global economy. not a lot because you not talking economy the size of china obviously it will be about economy which is one of the world's largest but about one quarter the sauces that must sauces of china so it's not as is not as dramatic and french trench there is certainly high quality and very odd level of engineering in that country the explosive i have to america. essential for american manufacturing is chinese
exports subtly destructive a bit nothing nothing like the scale of what's going to happen between china and america i can understand a crime back in the us in this i would have a lot to baseline a little watching that conversation but it would've been like a realist at negotiation rather than the status sort of thing politicians and bureaucrats get involved and steve kean the economics professor of patriotic thank you so much for joining us to break this down for us today. well for years the department of justice and apple have been fighting over the issue of encryption and in fact as recently as last week attorney general bill barr renew calls for apple to build 'd in back doors to with into encrypted for law enforcement apple has refused but now apple apparently has caved in at least just a little bit turns out that apple has dropped plans to let i phone users fully encrypt backups of their devices in the company's i cloud service because the f.b.i. complained that the move would harm investigations according to reuters that decision
was secretly made by apple 2 years ago and had not been reported until now. now in fact the f.b.i. and the department of justice began complaining that apple would not unlock 2 i phones used by a saudi air force officer who shot dead 3 americans at a pensacola florida naval air base what turns out did in fact turn over the shooter's icloud back ups in the pensacola case something they could not have done had they allowed for backup encryption and that decision to not move forward with the backup aggression that was after the f.b.i. had demanded access to the san bernardino shooter's i phone several years ago so what this alternately means is that apple cannot read your device data technically they cannot but they can read your backups and ben just to clarify almost every i phone user has their i phone backed up automatically regularly so they can reach under they can so here's what's crazy about this so apple and i disagree with
apple on almost everything but something that apple has said which is absolutely true you cannot create a backdoor into into encrypt that only law enforcement can use the idea of that is crazy it cannot happen so this idea that law enforcement going to have access and no one else will is not true hackers would be able to get it but yes it is also it turns out that there really isn't a security there because unless you don't use the i cloud unless you keep everything on your device which technically if you're a terrorist you might do then. apple can see it and law enforcement can see it and we know in the pensacola case law enforcement did see and now there are a couple of things that struck me here i don't necessarily want to give apple the benefit of the doubt but i will for a minute here now could they have made this decision 2 years ago not announced it publicly because if they announce it publicly that makes them vulnerable because then people who can then people will try to attempt to hack i cloud database and they could get all the information knowing that it's not encrypted or was it that they didn't want to be seen as kowtow into i think they don't want to be seen as
kowtow and they stay still don't want to be seen as counseling right apple is trying to trying to resist that but it's also interesting that we also recently learned that apple is not only doing this but they're actually scanning your i cloud account they're scanning it looking they say for child pornography because they want to make sure that that is not kept on i thought a moral and noble cause for sure but it also demonstrates that while apple says we don't want government to see into your account we ourselves we're going to scan it because it belongs to us and that's the problem with any i cloud storage it doesn't belong to you it belongs to the tech company and it's fascinating because i think what you are to see it and nobody we talk about software but nobody's made a law to say that they have to provide this data and so i mean this seems like it has supreme court privacy written all over it right well you know there is no law going to go to the supreme court right because there's not a law because every time it comes up republicans and democrats say you better do this app or we're going to make a law they don't pass a law that it's fascinating time now for a quick break but hang here because when we return slowing is looking for billions
in loans to keep afloat as the 737 crisis continues to tell you what that means for boeing's largest competitor and in south korea's change considering changing the way it classifies cryptocurrency for tax purposes and it could be a really big deal here and as we go to break here the numbers at the close. this is a story about what happens auster a stray bullet kills a young girl in the streets. what happens to her family and daughters in florida
the mother daughter is buried in a cemetery it really messes with your head what happens to the community the public was screaming for a scapegoat the police needed a scapegoat so why not choose a 19 year old black kid with a criminal record who better to pin this on him and what happens in court the. shock shock as far as we feel. we don't know just from. end of this trial unfortunately you. will still love no children. so what we've got to do is identify the threats that we have it's crazy. let it be an arms race. very dramatic developments only and.
i'll see how that strategy will be successful very. time to sit down and talk. now welcome back boeing is in talks with a number of banks to secure a loan of $10000000000.00 or more as the company continues to deal with fall out and costs associated with the $2.00 deadly crashes of at $737.00 that explains reports indicate that so far boeing has been able to secure about $6000000000.00 but the total amount needed by boeing could actually rise if there are additional demands from banks analysts had predicted that boeing would need about 5000000000
only but the 737 x. issues have dragged on for some time remember boeing has been a production only weeks ago was the jets have been grounded for over 11 months well meanwhile boeing's biggest competitor european playmaker airbus said on tuesday that it is decided to create new a $321.00 production capacity at its french plant in order to cope with strong demand citing quote an unprecedented high demand for air bus jet. and has sold its online food order and business in india to use a motto in exchange for just under a 10 percent stake in the on demand food delivery startup since launching food delivery in the country in 2017 overeats has faced an uphill battle gaining any presence in the market over the last 3 years has failed to gain traction against rivals swaggy and amount of those names are great which are just the top 2 delivery apps in india which is a very competitive market now being the 3rd most popular company in the sector is not acceptable to which also left south korea in october of 2019 because the same
reasons that they could not be the leader in the market elsewhere in the food delivery space spain's globo announced tuesday that they will be leaving turkey egypt herb y. and puerto rico as they attempt to turn a profit for the 1st time globo which remain plans to remain active in $22.00 markets hopes to make an impact in regions including south america southwest europe and africa. well with the world economic forum taking place in davos most of the mainstream attention will be on world leaders like president trump obviously and what they're focused on we got our show with that but what you won't hear much about in the mainstream are crypto currencies and yet the issue of crypto and digital currencies will certainly be on the forefront of many economic discussions this includes talk of facebook's libra digital currency as well as china's efforts in the space to create a digital currency as well and how central bankers are responding to all this it's
just does is rockefeller the c.e.o. of it simple things for being here so in 2019 you know central bankers had to deal with the issue of crypto currency and what it would mean to become part of this digital currency economy what nations do you think seem to be ahead in the space. right the central bank i didn't currency definitely a topic does your. and you know the the international bank of settlements did a survey they talked to 63 central banks and 70 percent of them are actively working on a digital currency alternative using the block chain so this this is taken over as as the topic for a lot of sovereign nations you know there's sweden there's u.a.e. . singapore 5 and of course in the forefront is china with its own aspirations of creating a digital currency and it's interesting to note because that report that you're actually talking about the international bank of settlements now while
a lot of them are looking into it and reading into it right now and researching it none of them have any plans within the next 5 years correct to to actually start implementing any sort of digital currency at the central bank level. that's correct i think sweden is probably closer than most but you know china is definitely taking the leap ever since president xi came on national t.v. to talk about china embracing the technology and also opening up its own research into its own central digital currency they've really taken a huge leap in moving at moving that forward with a lot of very detailed presentations and details leaked out to a lot of outlets about what and how they're doing this yet of course the u.s. is so far behind everybody else in this space but we do know this that a number of nations have for many years been subjected to heavy us sions and a lot of those nations have begun to expedite interest in this is well and development and use of we're talking about iran north korea venezuela how are these
actions do you think helping to shape that world view crypto and certainly seen it as a workaround to the dollar as the u.s. the world's reserve currency. yeah the world view on crypto unfortunately is the the world view on everything these days very fractured but if you look at the underlying reasons as you mentioned you know these countries are looking at this as a way to avoid sanctions but also these are countries where there their own sovereign currencies are facing a huge amount of devaluation and lack of trust by their by their own people so if you think about 6 iran you can see that there's a flight to quality coins come in as a as a stand in for where people can keep their assets and you know they're not even trusting other governments now they're trusting coins so some of this is to to counteract this flight of capital into into bitcoin but you know at the end of the day whether this is a to avoid sanctions and to make their banking system more sanction proof for this
will be effective in any you know main major cross border transactions. now the reserve bank of india the nation central bank has explained that. ring fenced financial institutions from dealing with crypto currencies over a range of perceived risks now the r.b.i. further said that in restricting bank involvement had not banned crypto currency used generally in india but what do we make of this as a whole because it's like they're saying well we've we've taken an issue with it but we're also not banning it exactly. yeah i mean you've hit the nail on the head it's a very contradictory stand straight from buy them saying they're not banning it but at the same time depriving industries that are in crypto currencies to not get access to a bank account which is basically the bloodline of doing any business they are in effect banning it you know this this is taken of heated debate in the supreme court there's going to be continuing conversations in the coming weeks so we'll see what
comes out of that but you know india needs to look at and i think this is what was argued in those cases would look at other other nations and what they've done to curtail some of these. issues that the r.b.i. is bringing up in terms of money laundering terrorism financing etc so there are other strategies than just basically denying bank accounts to their own economy and you know india is very big it's it would be a shame for them to not you know come to terms in a more regulated fashion with this and one more here for the record because obviously south korea as a government of the country is very friendly. by the people there so south korea is now said to be considering imposing a 20 percent tax on income generated from crypto currency transactions essentially south korea is considering reclassify and returns we don't crypto currencies as a type of quote other income placing it in the same category as money earned from lotteries rather than as a form of capital gains as it's currently treated there and by the way here in the
u.s. so obviously this would be a very positive move for crypto holders any chance we could see that come to the us or is the us still so far behind on this in the ira so far behind on this no chance of. yeah i think the u.s. as you know. issued guidance just as you know as soon as new as october and you know calling it a property and subject to capital gains i don't really see the u.s. tax stance to moving much away from that mainly because in the u.s. crypto is still seen as an investment as speculate of investment. so until it becomes more mainstream and you can you know go to the corner starbucks and buy buy coffee with get paid with it in a more real. way i just i don't see that happening in the u.s. any time soon regular so you were busy and thanks so much for your time. thanks for having guys. and with companies like subaru saying they hope to only sell electric
vehicles by the mid 2030 as it would appear it is where automakers are putting all their money but in reality some car companies have bigger aspirations taking their vehicles to the skies for instance just last week toyota announced a new $394000000.00 investment in california based air taxi start up job be a shit job he develops all electric vertical takeoff and landing aircrafts that look more like a consumer drone then the flying cars you might see in a movie now the company's 4 person aircraft has 6 propellers a range of 150 miles and can responds of up to 200 miles per hour now it should be noted that these vehicles are still in the experimental phase but the investment is very very big now a few weeks ago at c.s. hyundai also unveiled their a one urban motel of the vehicle which they have been working on with guber to make air taxis more commonplace now but it was also interesting because when i talked to
the folks from hyundai about this particular thing i said why did you guys partner with this they said because we know how to make things we make vehicles we make aircraft and over doesn't make. anything so it's interesting to see them do this but what do you think about this overall idea of flying taxis cars they're really quite copters i don't know why we have to call in cars right now they're not cars at all there are like quad copters or drones right that you're flying around and the problem that i have is that most people can't even fly their own little home consumer drone without crashing into a tree how are you going to put somebody behind one of those and expect them to be able to do much better i don't know absolutely well that's it for this time you can catch boom bust on direct t.v. channel 321 dish network to 80 or streaming 247 include a t.v. the 279 or as always have us up at youtube dot com slash boom bust our t. and we will see about here.
i. from the must lead people by as you could see the slums you force knew the focus of us to do so. when you wanted to get what. you see in the draft almost not just because most would nobody. really believe. that insane yet in this little. operations understand that a cost of doing business is buying and building support in washington d.c.
and that includes staffing up with former members of congress put them on your payroll you want to hire a chief of staff from a powerful senator or a committee. member get their chief of staff put them on your payroll as a lobbyist this is what washington does on a bipartisan basis in fact i think it's the only point of true bipartisanship in d.c. is corporate influence over government. as
the psychologist undesigned of now banned cia torch techniques in the wake of 911 and justifies his actions during the pretrial testimony at one time the bay detention center. believed there was a genuine 1st of an imminent attack or get super to die you do it again. a u.k. faced watchdog publishes a report looking at how drone strikes could be normalized as a new tool for assassinations off to u.s. forces targeted no radio top military chief. and a bottle of morals as an electric car giant tesla divides residence in germany its fast european factory could create thousands of jobs but also an environmental.