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tv   Boom Bust  RT  February 6, 2020 3:30am-4:01am EST

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downsizing we are moving forward 'd at a pace that was unimaginable just a short time ago and we are never ever going back. and many are calling this the president's best speech ever president trying to explain the power of the u.s. china trade agreements of which phase one as we've told you has been agreed to he also talked about resolving the us china trade deficit which was one of his biggest campaign platforms in 2016. i also promised that i would impose tariffs to control it is massive theft of america's. our strategy has worked days ago we had the groundbreaking new agreement with china that will defend our workers protect our intellectual property bring billions and billions of dollars into our treasury and open vast new markets to products made in grown right here in the usa well no question a lot of the president has done a lot to resolve the u.s.
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china trade deficit in fact the decline in the deficit is about $65000000000.00 but in reality the ratio of exports to imports is going to be the same between 20182019 the president also hit on the signing of the u.s. in ca to replace and double what the president focused on the most that was the historically low unemployment numbers for so many groups of americans including african-americans hispanic americans asian americans and young americans. women reached the lowest level in almost 70 years and last year women filled 72 percent of all new jobs added a record number of young americans are now employed well the president also touted the while under the obama administration more than 10000000 people were added to food stamp rolls under his administration more than 7000000 americans have come off with food stamps and 10000000 americans have come off of welfare. and now moving on
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to what some would say is the only metric of the trumpet ministration success is the global markets that are solidly in the green for the 2nd day in a row with the nasdaq hitting a new 52 week high as the markets digest progress in the battle against the chrono virus markets gain as such a university and the u.k. both announcing if it can break through its in the in vitro cell experiments while there are still no known effective therapies against the 200-1000 c.o.v. virus the deadly h o. interested in guilty as remedy rendez here guilty as experimental drug has not been approved by any regulators but it's currently being tested in 2270 person trial china has also applied for a national patent on the drug to treat the corona virus as it has shown early signs of being highly effective it is not clear yet whether or not this patent will be granted as it will have to show the drug works on the virus strain in a different way than how it works with other viruses in the same category this would also significantly. bottom line going forward now finding
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a vaccine is now of the utmost importance as the outbreak has acted to cause the global economy up to 4 times what sars did in 2003 johnson and johnson the novak's and more drug makers are all rushing r. and d. to find a cure global equities are once again taking cues from china as a massive stimulus by the p.t.o. see underpin the rebound so the bad news is good news is still in full effect as everything now hinges on the confidence of the strength of the p.l.c. to stabilize markets leading to a risk rally around the globe so you know as we kind of have the background of the coronavirus which the president spoke a little bit about that as well last night. in the state of the union address and all that's taking place here i think it's kind of fascinating to see all these things converging at the same time and what the president seems to tap into more than anything else and that includes with the coronavirus is ability to tap into what a lot of kind of middle americans middle class americans and middle of the country americans think about these issues for instance wanting to ban air traffic between
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the united states and china a lot of people are in favor of that a lot of people like that idea so he taps into a lot of these areas years these very like populous views and stuff about. very populous views of we want to strengthen america want to bolster trade trade deficits are bad he's saying this is the misnomer is that economists say that trade deficits actually aren't bad especially when you're the leading global economy you're supposed to have a trade deficit. but for most people who don't actually know what causes trade deficit why there's a trade deficit they just believe the rhetoric and think oh trade if it's a bad it's a good thing that we know it well and it's easy to sell that idea though in terms of the trade deficits when you also talk about jobs that have moved away so trump you mention is populism he has been a populist since he started running i don't know that he actually is one in in fact we certainly as a campaigner and this populism idea certainly when it comes to nafta when it comes to moving jobs out of the country that has happened for so long and people are so
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tired of it that now when he talks about a new deal with the e.u. when he talks about a new deal with the u.k. i mean there is a lot of confidence in him from americans who will say whether i like him or not i believe that he is going to fight for america 1st and is that america 1st mentality that is winning over a lot of people that is debatable when you're actually shifting jobs away from high tech because so many companies and consumers are now moving to 5 g. and huawei which apparently it's banned in the united. it's not the beta born terms maybe in terms of facts and reality but it's not debatable in terms of perception and that's the war he wins his perception of and for more on the economic virus let's bring in john quote of the university of miami harvard business school so 1st of all the w.h.o. now has reported that new cases have surged over the last 24 hours more cases than any single day since the entire outbreak started and nowhere near combined so yet the markets are all roaring up on the back of government stimulus so should we even care that so many businesses and industries are being disrupted what is an expected
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global loss of 220000000000 when the p.p.l. see itself injected 170000000000 worth into the market. thank you christie well yes it's true that the p.b.'s c. had to intervene of course on monday when the circuit breakers were traded on the shanghai index but if you look closely you'll see that. the drop of around about 8 to 9 percent both in shanghai and in the hanging saying in hong kong brings those markets into line with where they were 6 months ago so not a precipitous drop but obviously off to a week of shut down in the market in shanghai necessary. fer coming into play into the market and obviously the p.b.'s c. was prepared to intervene as a did but let me just say that i think that we have
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a lot of uncertainty around the duration of this particular shock to the chinese economy if you look back at saw as you'll see that. the epidemic peaked around about 7 to 8 months after the 1st cases were reported if this follows the same patton it could of course be july before this stabilize ation restored to the chinese economy i'm a little bit more optimistic than that but frankly i'm not sure that the markets of fact today in the full down down would draw off on g.d.p. both in china around the world economy that this particular public health crisis could result in you know one thing a slightly different though is that sars didn't have the kind of quarantines that we've seen with the coronavirus correct. correct but at the same time
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they the attack rate and the and keep asian rate were also. the incubation rate before shit symptoms were apparent was also different and those 2 factors also have to be taken into account we do seem to have seen the spread pretty much contained within china or and hong kong but still a little bit early to be confident about that i think i want to move on to the trump administration we talked about of a minute ago you might have heard some of this pointing to the trade deficit with china shrinking i could see huge when the annual deficit shrink to its smallest since trump was elected in november the question though is is that really like in fact truly a when did the trade deficit even really matter in the 1st place or as i said before is that facts versus perception because a lot of people perceived it as being a big deal. well the trade deficit and 2019 when down
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1.7 percent around about $11000000000.00 which is not even a rounding error from a global economic perspective so directionally the president can of course out the the result it was the 1st time that the deficit had gone down in 6 years so there is a bit of a political story there but the same time as the deficit was closed somewhat with china it expanded substantially with mexico and with the european union so economists will of course say that the trade deficit does not really figure prominently into economic success or economic strength but it is from a public perception point of view a number that can be easily understood and therefore regularly talented for
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political purposes and now on trade we mentioned multiple times that pays one really didn't accomplish all. established impossible quotas and no means of enforcing them but that was nonetheless pallid as a win for the us after an 18 month battle and that's apparently great for us ag farmers and all but now it looks like that hard fought battle was an entirely wasted effort because it looks like phase one is going to get scrap with what even goes into a back mid february so what's going to happen on the trade from between china and the us now. while china are committed to purchase $200000000000.00 extra in goods and services over 2 years with the with the obvious hit to the chinese economy from the corona virus outbreak it's quite problematic as to whether or not the chinese economy will be able to absorb those commitments and whether or not those commitments will be fulfilled remains to be seen. my guess is that
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the moment everyone in the central administration in china is focused on the coronavirus issue the concept of time being taken to worry about phase one or phase 2 with the united states i think that that's just not on anyone's agenda at the moment the important challenge is to get the economy and china back on track by getting this public health crisis under control i do think it's unlikely that we'll see a face to deal until the circumstances before the end of the year i would say though to your comment phase one was wasted effort it was very important that the phase one discussions be held and came to fruition to stabilize the trade dialogue between china and the u.s. and prevent of the downward spiral in the relationship so one more for you here
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because obviously we talk about the state of the union last night and pretty much like clockwork u.s. equities rally the market. let's face it it's currently in the longest bull market ever whether it's pumped up money based on central bank manipulations or overvaluation but money is money the fact is this $12.00 trillion dollars has been created and well that's a massive bubble which the president is kind of moving into his 2020 reelection campaign saying if he's not reelected that will pop that will go away. is trump in a position where there is some truth behind that concept that as he is one of the 1st presidents to move into a reelection cycle who has not gone into a recession it has not happened in a long time as he is in that position does the market fear a change in leadership do they fear someone else coming in to this position and fearing that the bubble will pop if he loses. i think so and i think it's related to in large measure deregulation i don't think anyone imagined the degree to
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which the rollback in prior administrations regulations in the energy sector for example but in many other areas of call most would have such a stimulative effect in terms of investment and market confidence and the fear would be of course that if someone other than the current president is elected that many of those regulations which were promulgated and removed could have order would simply come back into play again and dampen therefore enthusiasm for further investment very likely that they would junk well it's the dean of the harvard business school at the university of miami thanks for your insight. thank you. time now for a quick break here because on the other side in the care that the russian economy is actually stronger now than it was before the u.s.
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and european allies again placing thanking fixie as they go are going to take a look at thank you and how they're not only failing but they have faith in the russian economy in a reply you won't see anywhere else and i think at a bank here the numbers at the close. from. the.
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thank you. chose to build their economy in such a way as that spawned the crisis of the problem buyers and for that there is an economic. and the u.s. could inherit a benefit of that economic baldrick similarly the us build its economy in a way that causes other kind of extra analyses that are highly detrimental to the u.s. economy. going
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i want. and there's a number she knew not. all of them ok it. was not known to most of them anyway it will be like a battle they only. get large that it will be. even for people. who give their name not. what the how do we. know those they need to hold. them in.
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rosslyn state television propaganda machine propaganda outlet propaganda tools we are in information. that can change the world. we send out you tube videos the. worst russia today is the largest network on. russian brushes russia russia russia today. but i want to show. you that i would say these are shots of the kind that really have to put drugs out to sea and then on r g. 4 are so proud and. are just getting through
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a number. why have you not shut down r t on you tube it's a propaganda machine mr walker. the trump administration plans to further curb technology exports to china and its flagship telecom company amid pushback from the defense department the administration will meet on february 28th to address how to approach while and the broader technology war with china policy makers apparently see the world's largest telecoms equipment maker as a serious threat to national security now this comes after the u.k. despite the numerous campaigns protests and threats from the u.s. have allowed to build portions of its 5 g. network the u.s. now wants to finalize new rules to limit tech exports to be so-called adversaries
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despite harming u.s. business interests meanwhile is doubling down on europe to combat the growing pressure from the u.s. as it announced that it will set up manufacturing hubs in europe and lessen its dependence on the u.s. i mean components it will also help to persuade countries to turn away from washington's pressure by investing massively into the country's boosting production increasing workforce and advancing the ease 5 g.'s capabilities. so it was just 5 years ago that the russian economy was teetering on the brink of collapse right around the height of the annexation of crimea from ukraine you remember this it was then that western nations including the united states imposed huge economic sanctions on russia those sanctions along with the steep drop in the price of oil seem to have russia backed into a very serious corner of fast forward to 2020 the russian economy is doing well the $1.00 trillion dollar economy is actually better off than it's been in years and while growth is slow it is stable with the $124000000000.00 sovereign fund in place not only that but the reach of st johns has been slowed with russian exporters
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finding new markets and importers being able to find domestic alternatives now what analysts are saying that if the u.s. actually wants to harm russia it should lift all saying sions immediately so how does that make sense. according to the financial times the single biggest danger to the russian economy quote would be if the us woke up one day and lifted all 'd the sentients end quote joining us now to discuss is the host of the tape which is so richard under this idea the claim is that by lifting all sanctions on russia overnight quote there would be a massive inflow of capital the currency would spike all the government's policies would be in tatter it would be a disaster again that's a quote does that theory hold water. no there is really no nice way to say it other than no because what it presumes is that if the flood happened and there's no prospect at this point that it would but if the flood happened that the russian government would sit there and not do anything that's not the way the russian
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economy works the government is a very powerful player and they would take all the usual steps to slow down the influx of capital to control the value of their currency so it doesn't do this very terrible scenario laid out that would only happen if the government sat there you know frozen in its tracks and let all of this play out i think the more interesting question besides the cute reversal idea in the quote you gave is the recognition that hopefully americans will pick up on that the levying of sanctions against russia against china in the old days against the south africa and so on and so on against iran they mostly don't work these are not really powerful weapons and the reason is simple it's because it's so easy to evade them what you can't do with the united states you will find plenty of people who will buy and sell with you
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from china from russia but also from the so-called allies of the united states who are willing and indeed very interested to rush in so signing sions have this nasty way of boomeranging of in fact over the long run hurting your economy after you've made such a theater of how you are punishing the bad old folks if it doesn't work by the way most politicians if they have half a brain knows this so it's important to understand imposing sanctions is a political theater it's a dumb way to appeal to your base to look like you're doing something the russian. well they then took crimea and you're going to do something what in fact there's very little you can do so your play added that's really what is sanction is now here economists argue that the overall economic picture and russia is better today
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than it would have been without any sanctions at all so how has russia been able to adapt so well to meet the pressures of the sanctions. here's the interesting thing and it's a wonderful question that you ask what sanctions do is allow a government that is getting sanctioned to point to the sanction to excuse things that could never otherwise have been possible had mr putin in russia moved to develop his economy in a variety of ways that hurt some interests which is usually what happens they would have fought back he might have been blocked but under the threat of the sanctions under the suffering of the sanctions you have a kind of unifying of the country around this assault on the country as a whole and this leads to the government being able to do things in the name of paper of fighting back against these sanctions remember in the in russia the sanctions look to be very unfair very selective they took
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a little piece of ukraine they had a plebiscite where the people voted to do this they look at the united states you invaded afghanistan you invaded iraq nobody sanction what why are we being picked out by the way you see the same thing in china you hear the trade war the tariffs unifying the chinese allowing the chinese government to do things that would have been much harder to do without the excuse that we have to deal with a trade war in russia we have to deal with this site so we have about 30 seconds left but i've long argued that sanctions are ineffective for the reasons you're stating here right that they themselves are an act of war the ultimately do not harm governments they do harm people. does this case with russia demonstrate the lack of success from sanction policies of the us in the e.u. and is russia going to kind of have a certain blueprint for other nations i mean this is kind of the point of the brics nations right brazil russia india china south africa to get around the u.s.
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about 30 seconds. absolutely that's one of the long term costs of the ministration tariff war on the world you're teaching the world don't rely on the united states don't assume any relationship with the united states is so you build relationships with countries that are not behaving like mr trump in europe they're not for good latin america absolutely the long run costs of this trump experiment are going to be with us and the burden for the whole country for years to come yet the long term effects of trump obama bush clinton presidential wolf author of understanding socialism thank you for your time. and as we reported tesla has been on a massive run up 112 percent since the start of the year as of tuesday's close as the shorts just keep on getting squeezed like pebbles as 3 and a leg supported loss of $8300000000.00 mark to market in 2020 as bears got trampled and one by one gave up their possessions. got $16000000000.00 richer as he of 1000
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percent of the company but as we approach a $1000.00 valuations are getting lofty as it seems like the tide might actually start to turn and it did when the slightest hint of bad news started to tip the scale shanghai's has like gigafactory reported that model 3 deliveries will be delayed due to the coronavirus traders have now started to pick up shares all day long sinking tesla down more than 18 percent today and wiping off $30000000000.00 from its market cap now some analysts are questioning the unsustainable rise of and how it relates to the bonus scheme that awards must 350000000 dollars if the company achieved a market cap of $100000000000.00 over a sustained period of time the company is now currently worth $130000000000.00 after its recent run up now on must is incentive by. with a $2300000000.00 compensation package over a 10 year period on the condition that tesla achieve a market capitalization of $650000000000.00 it certainly is motivation to keep the chatter and the pump on the stock alive and just as traders turn their backs on
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tells it today musk pops in on twitter wednesday to tease the possibility of a gigafactory in texas so this is news or is this just another way to prop up the stock pop in like. this time you can kind of boom us on the man on the brand new portable t.v. app a bail bondsman google play and the apple app store by searching parvati or stream us to your t.v. by downloading the portable t.v. app on apple t.v. and online t.v. . will be available on more devices very soon see about your next. join me every thursday simon show and i'll be speaking to us of the world of politics sports business i'm show business i'll see that. thinking of getting in on the once begun or should i want to know what they're
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tracking this time you know why are you going to use a crate with him he was. freaking out and he was going to bring in anywhere near thousands of breeding dogs caged in your lane conditions on puppy i mean 67 years you know they've been locked up in a cage outside you see no protection from the weather the heat you know the cold air the rain the snow the funder they have no protection. thank you. it's a good. across the u.s. crude puppy mills are supported by dog shows and stores most of the puppies that are coming from this large scale factory farming. if operations are being stolen and put stores even joined a good businesses are involved but can't get them sent to there has been a shocking amount of the organized opposition to adverts to increase the standards of care for dogs bred in commercial breeding for so many most of that opposition is
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coming from huge agricultural groups and industries that have nothing to do with jobs don't buy a dog on a. tough and find him on the phone interesting my fellow huevos to subsume. they could still move to. closing this we've got to dog him so hard not to think of the mother disappeared this is the work of the what they call it and i don't mean to start them if. this is the only thing that we do is music because everybody fights his own way. thank. goodness lord lucan the fee was out of this bill frist would have called the ability to put the payment on the. what i think is this is the fund that is
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a computer. thought. protests erupt across germany as the ruling centrist party breaks its own pledge and joins with the right wing alternative from germany and a regional tactical alliance. also this hour as the u.s. election primary start twitter owns you tube and changing policy on altering the videos and images of the baby wording of the new rules concerns the tech giants may use it to censor supporters of all tissues they dislike. and in moscow a court gives custody to social services of a completely healthy child left by parents in hospital my dears.


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