tv Boom Bust RT February 19, 2020 11:30pm-12:01am EST
and of climate to a media organization that is what he makes that was the 1st. i didn't the toy anticipate that he would be for a short while world right and wrong one of the world's most powerful you use organizer i should put your expander founder julian a song in a subtle tongue and there was a great deal of jealous in the mainstream towards him particularly why won't he be more like off the bat you seem. sneering feces on the walls. smile. we have julia in solitary confinement in the prison for terrorists away team that has a life in person the person. i don't want to see him die in a prison. and i think that's what he's facing.
this is the one business show you can't afford to mess i'm christiane and i'm going to board washington coming up the federal reserve on wednesday release their minutes of their january meeting but what path has the central bank decided to take we'll break down the fed's moves and how it's close choosing to react to global instability what wall way has lost a case in court relating to the purchases of its products but how will the embattled telecoms giant bear going forward will analyze the future of cross the globe. in the great. german europe. and later the u.s.
has sanctioned russian oil giant ross now as the nation has ramped up the effort against venezuela well do a deep dive into the penalties and what it means for the petro sector. today so let's go and dive right in. the federal open market committee released edited minutes from his january meeting during which policymakers voted to keep interest rates unchanged between 1.51 and 3 quarters percent drone policy now says that the u.s. economy remains in quote a very good place after 3 rate cuts last year to keep the expansion running 2 of the most dangerous threats to the global group growth had been removed as china and the us signed phase one of the uncertainty has lifted but now the new threat will be the effects of the car on a virus and how long that will last traders and investors now want more details on the fed's plans to wrap up its balance sheet expansion specifically how and when that will happen without speaking the markets so to help us answer that we welcome author of fed up and former fed insider danielle. so danielle this is the really
the big question of the day right now beyond the balance sheet everything else expects and is expected to be quite unremarkable so how and when will the fed taper treasury bill purchases because if they suddenly the liquidity just isn't there anymore that really would split the market and bring us right back to square one. you know it really does and the fed has backed itself into a corner with the moves that it's made i hear that the willingness and i hear the desire on the part of policymakers to rein this in but i don't think that the market's going to allow it just because every single day it pushes the fed further out on the spectrum and the fed is saying april the minutes reiterated april we will have to see you know if we get through tax season and the fed is truly able to unplugged this because to me it's a monster of their own making. we want to move to the outlook for inflation and
employment here right now inflation is steady on the low side with personal consumption rising just 1.6 percent in 2019 despite the jobless rate ending the year at a 50 year low now does the fed intend to return inflation back to 2 percent. well i certainly think that they think that they can but again the inflation metric that the fed utilizes imputes health care costs which is really going through the roof for the average working family it imputes health care costs using medicare and medicaid reimbursement rates so it artificially depresses this number to $1.00 that you're reading about in the minutes but if you look at the core c.p.i. the core consumer price index which strips out food and energy it has been running at or above 2 percent which is the fed's target for 23 straight months now so i think that there needs to be some soul searching at the fed because the average american family is not going to tell you that inflation is running too low so how
would they be able to actually combat this. well look they say that they want to get inflation up to a certain range and that is code that is fed speak for saying we want to keep monetary policy easier for as long as it takes to get to that 2 percent bogey and where how investors rightly read that message is that they're going to continue growing the balance sheet and if need be and we know that the need be could could be happening with the coronavirus shock to the to the to the economy not just in china but here in the united states if that means further rate cuts in 2020 that is certainly what the markets have begun to price in now speaking of how does a poem see participants view the corona virus outbreak is this a threat to global growth and if so how much is there a cause for a material reassessment in the outlook and what would that possibly mean for additional easing next year or this year well so i think that the coronavirus is in
a way i think the fed is treating it similarly to how it treated the trade war that it's going to be a depressant on supply chains but we also have to bear in mind that we're some of the largest importers of chinese goods in the world and there's also going to be a supply shock when back to school merchandise doesn't get here as we thought that it was going to be the case of the fed could could be carefully treading into getting the inflation it does not want so again i think that the coronavirus has the potential to act as an external shock and force the fed to cut rates again while it keeps growing its balance sheet at the same time. if we don't get these using motors that christie is talking about here in the fed decides to slow down and stop expanding its balance sheet the u.s. equity markets will stop making these new all time highs every couple of weeks i think even today we had the nasdaq hitting record highs. because there's nothing
actually pumping it up any more are we going to see the correction then and at that point is it actually too late we're falling off a cliff. well you know it remains to be seen because right now the fed is playing with fire you've got continuing jobless claims the number of americans collecting unemployment insurance that's been going up year over year since october so 4 months in a row the most recent job openings data show that 73 percent of industries 73 percent of industries have fewer job openings over the same time last year so again like i said the fed is playing with fire because there are some fundamentally weak underpinnings to the job market to the. u.s. economy that could push push employers to start writing more pink slips and then they're going to have a real problem on their hands if you combine that with the shock of the coronavirus outbreak so to essentially sum it up right now the fed is playing with fire and you don't believe that they'll be able to keep their word of stopping by april i doubt
that the fed is going to be able to keep their word and pull the plug they can try we'll see what happens every time they take a baby step back you know sure enough the stock market also takes a baby step back as if to say don't try me fed because i'm going to disappoint you if you try and unplug all of this massive amounts of liquidity pushing the momentum stocks higher on a daily basis and what they have any additional tools in their tool kit in order to stop they stop the market from crashing once they do take their hand out. well i mean it's very difficult because whether you're talking about negative interest rates or the fed possibly buying corporate bonds or stocks these are things that require congressional approval and congressional approval typically comes when the economy is already in the soup when you're already in recession so the fed could find itself very much being behind the 8 ball on this and again this is this is a monster of their own creation this is frankenstein of the feds making they've put
themselves in this park areas position scary outlook for the future damage danielle de martino booth former fed inside it thank you so much. thank you. and china announced on tuesday it will begin accepting applications for the tariff exemptions on roughly $700.00 products imported from the u.s. including pork beef soybeans natural gas and crude oil now the news comes as the country fights the corona virus outbreak which we just mentioned that has infected tens of thousands importers will have the opportunity to apply for the exemptions starting on the 2nd of march according to china's customs tariff commission of the state council now the exemptions will only be in place for one year and each application would need to be complete complete the approval process now meanwhile the coronavirus is taking a toll on apple's business the i phone maker warned on tuesday of lower sales in the current quarter due to the viruses effect on their supply chain which has
caused the company's stock to plunge by 2 percent shaving nearly $434000000000.00 off the company's market value but we're not here as is generally the case in big tech apple was able to recover the majority of those losses by wednesday's market close. in an effort to mitigate the perceived risk of chinese telecom giant huawei the u.s. is urging even to consider using alternative competitors for their 5 g. build outs specifically ericsson nokia and samsung who claim they are on par with and just as good as technology wold claim considering that huawei spent 15000000 dollars last year alone on r. and d. to help it achieve market leadership and has already started work on 60 mobile networks we sat down with any party chief security officer of the usa earlier this week who said this. can handle more speed more amounts of data in terms of latency we are at the front end of the of the latency of the shortening of the
response time and in terms of multiple devices we. we can service a whole lot more devices and our equipment provides a much smaller carbon footprint so the energy efficiency can be absolutely tremendous and at a much lower price point as well and interesting idea that was recently floated by the u.s. attorney general william barton order to combat the rising power fall way is to have the us take a controlling stake in nokia and ericsson now that's an interesting idea but the optics certainly don't look good here especially when the u.s. is already accusing qua way of being a front for the chinese government now this is just plain hypocrisy at its finest to suggest such a desperate idea the legal battle also continues for a while as it is charged by us with bank fraud and vialli sanctions against iran while away retaliates claiming u.s. prosecutors overlook violations of u.s. sanctions against iran by the h.s.b.c. a claim that h.s.b.c. continued to process around transactions there is new york branch and conceal the
conduct from the court appointed monitor holway is now seeking documents from h.s.b.c. of the investigation into the company and reports on the monitor which it says quote appears certain to contradict the allegations in the indictment this comes just one a u.s. judge rejected a separate lawsuit filed by a fall by challenging the constitutionality of a law that banned federal agencies from buying its products the judge ruled that contracting with federal government is a privilege not a constitutionally guaranteed right dealing a major blow to always broader strategy of fighting washington's pressure campaign . kristie it's fascinating because you know we see a lot of these. cases brought up in courts here in the u.s. but while we really think they're going to be able to win a court case in a federal court here in the united states when it's our government who is actually ruling against or is already you know going against them as it is i think what it did was it did manage its image that it is working within the u.s. legal framework in order to bring
a very important fact in order to challenge the fact whether this is or is not a constitutional issue and even though they lost the court case. they did bring up some very interesting points to all the listeners who actually listen to their case on what they presented when they presented solid evidence in kit in that case they show that they're willing to work within the framework of the system so that this shows that in future cases you can say that huawei is doesn't follow rules that it just does its own thing that it plays outside the bounds that no longer applies because that shows that they are willing to fall the rules dictate it in american legal structure like them or not i mean when any party was actually in studio yesterday he was trying to do that he was trying to say here look we're playing by the rules we're trying to do this these are the these are this is where we are everything and this is where the government believes we are but it felt like it was open and honest and they were trying to do their best to move move things forward yes so it's actually very interesting when you see a company being so transparent specially america when you have other companies such as rising t. mobile all these other companies that were actually caught gone under indictment in
recent years for such things such as blackballing competitors squashing competition and all of that stuff so it's actually really interesting to see a chinese company coming in and opening their books and say hey we are happy to compete bring it on we'll show you that while the where the best and of course if you missed the full interview with the full show this week with any party from while away the chief security officer while we take knowledge is usa you can catch their on port of the portable t.v. app and of course you tube dot com slash boom bust r.t. it's time now for a quick break here because when we return the u.s. has now sanctioned russian oil giant rosneft as the nation has ramped up its efforts against venezuela would do a deep dive into the penalties and what it means for the petro sector and as we go to break here the numbers at the close.
near period of 0 money velocity where money has gone directly into the pockets of the few oligarchs in countries of doors in america and around the world in these silos like these $12500000000.00 properties when they when the infrastructure for that starts to crack and illiquidity starts to seep out you get inflation for real for stuff like food and we're seeing this happen now where people are noticing that the cost of every day living is starting to spike crier.
i. i i. and welcome back the united states on tuesday and sanctions on a subsidiary of russian state oil giant ross now after claiming the company helped the venezuelan government circumvent an american oil embargo now the u.s. treasury department placed the sanctions on trading as a geneva based trading arm of raw staff claiming actions from the company aided the government of nicolas maduro now much of this stems from the u.s.
decision to recognize one of why go as the rightful president of venezuela over mitt doro u.s. special representative for venezuela elliott abrams spoke about the decision on tuesday this is a campaign of pressure and it began. 5 weeks ago. and with over a year ago continues to mount. i would not see that any individual step. can be calculated to bring it into the crisis but i think this is a very significant step and i think you will see. companies all over the world you will see here now. from dealing with rosneft trading. and venezuelan foreign minister jorge said the action was unilateral claiming that the u.s. continues quote attacking the venezuelan people. and joining us now to break this down as professor richard wolfe author of understanding socialism and host of
economic update 1st of all thank you so much for being here i want to get right to it what do you make of these sanctions that are affecting rosneft. well i think in an earlier program of this of our show here we talked about this ever since the sanctions put on russia after its activities in the crimea and with ukraine. the graph simply goes up the russian economy has been doing fine and i think it goes to show that whatever the effect of these sanctions and i assume there's some negative effect they are marginal they do not change the basic layout russia has not returned the crimea has been changed its activities in that part of the world in any significant way mr abrams talks about the many weeks and steps of pressure but the fiasco of the united states supporting one why it all and being on able now
for a long time to get anywhere with that effort which is an interference in another country's internal affairs goes to show you that these sanctions are mostly acts of frustration because the implying country the united states is not getting very far with its plans and it's theatrical for your own supporters because it's a sign you're doing something when in fact nothing you've been doing has worked. and now i want to address the timing of all of this these sanctions kyra came as russia and belarus have been locked in negotiations with guarding all supplies so is there any coincidence in the timing of all this. i wouldn't call it coincidence but you're absolutely right you're looking at the context which is the international oil market and absolutely it plays a role here they sickly the problem in the oil market for the oil producing countries and companies is that the price of oil has been too low 'd for many of
them to be profitable i'll give you one stock example the fracking sector here in the united states is in desperate trouble because it has borrowed hundreds of billions of dollars to drill all those wells on the premise of a profitability which requires oil to be at a higher price than it is now anything the government can do anything that happens in the world to brive up the price of oil help stabilize the underlying anxiety that that whole sector could go belly up because they can't cover the debts that they've accumulated so i think you're seeing here by sticking a little bit to venezuela you do something to depress build up the price of oil which has become even more urgent because the coronavirus is cutting activity around the world and that decreases the demand for oil which pushes the price down so that is also playing a role here and no as you mentioned
a few weeks ago we had you on to discuss that at that exact report which claimed that russia was thriving amid sanctions and doing them could create some economic turmoil now if you remember if i remember correctly you were always exactly on board with that exactly that exact line of thinking here but i mean what are these specific sanctions on russia that they are they going to have any impact on the nation's economy or is this just kind of like you said more of a political move here. it's more of a political move it's more political theater it's to give the venezuelan who are very disappointed those that support why go those that are enemies of madieu are already has many of them inside that is where they had been led to believe the united states was going to come in and fix all of this and put them into power a little bit like what happened in bolivia and all that's been disappointed the united states has been on able to do that missed them
a dural remains with the support of the military and large sections of the population so this is an active choice we're still added to an otherwise wondering population and not just in venezuela but in the rest of latin america as well and there's one more issue much of the oil that venezuela markets around the world is not being technically sold it is be used to pay debts that the venezuelans have gotten they've gotten big loans from india from china from other parts of the world and they pay back the loans principal and interest by delivering oil so here's the irony when the united states blocks them from doing that they can go to the people they borrowed from they already have the money that they borrowed and explain we can't pay you back for a while it's a little bit of a back handed gift to the venezuelans which of course elliott abrams doesn't want
to explain so professor wolf doesn't and i was actually going to go right to the exactly what you just said there which is they're paying back loans but doesn't that specific situation then i mean you're not really messing with the economy at that as well as much you're saying like you said they don't have to pay the loans back but now what you're doing is messing with china russia and any other nation who has those loans out to venezuela you're hurting their economy by saying shinning venezuela and obviously now you're sanctioning russia on top of that but so this isn't really working the way they plan is it. no i think it's making worse their relationships with russia and china and by the way threatening 3rd world countries people that are not directly involved in the u.s. venezuela disagreement or the struggle whatever you want to call it that is something that the all of europe all of our allies they don't want that they reject that they were not willing to go along with the embargo against iran after the
breaking of the treaty there and they're not willing to do these things so they're looking at what is being done to rosneft as an attack on them if not immediately in the future in which the united states thinks it can dictate to the whole world who you do or do not trade with depending on a dispute that is none of the affair of norway or germany or italy or france or russia for that matter other than the fact that russia tends to support the duro but this idea of the united states throwing its weight around that's over i think americans and the rest of the world has to kind of begin to wrap their minds around you can't do this any more the way you once did and pretending isn't going to make it happen in a tragic case is very disturbing image now you know me as reliance industry which purchases made its way that oil said that they're monitoring these sanctions against iran as well alliance says that their purchase of crude from mass when i had been reported to and permitted by the u.s.
government so it's harder to impose sanctions on india where the u.s. is trying to hammer out a trade deal with. yeah it makes that it's a perfect example of making life more difficult you can be sure that the public statement of reliance on the other indian companies and the same is true in other countries the nice polite statements we're going along are public the private activity is the lobbyist for those companies in new delhi or living the indian government know that if the venezuelans are blocked from paying back in the oil. the loans those companies and countries have made it's damaging to india it's damaging to any future contracts it makes the in the indian companies wonder who else the united states will have the decide to go after and therefore punish them so you're going to see behind the scenes tremendous pushback from all kinds of countries that's what i meant before united states tend not do this without
incurring more enmity and pushback which is becoming tangible for example around the hallway decision where the europeans are simply not going along professor richard wolfe author of understanding socialism and host of economic update thank you again for your time thank you. and sticking with india india is planning to switch the world's cleanest switch to the cleanest petrol and diesel starting on the 1st of april the nation will jump straight from euro 4 emission compliant fuels to euro 6 grades what this means is india's petrol and diesel will contain just $110.00 parts per 1000000 of sulphur india is hoping the move to cut vehicular emissions will help fight the pollution plague plaguing major cities though according to reports it took the nation just 3 years to join a handful of other countries were on the same standard. now while canadians are
known as being friendly folks there crabs are apparently insanely aggressive we're talking about green crabs from nova scotia an invasive species known for being angry that's also threatening to accelerate harm to the coastal ecosystem by gobbling up soft shell clams and destroying native grass but scientists from canada have a plan to turn these angry little suckers into biology cradle plastic they do this by crushing of the shell crab shells and extracting chintan a polymer found that can be used to make bio plastic that degrades in the oceans brilliant plan right 2 birds one stone they can reduce the number of invasive species and create an alternative to plastic this project is run out of nova scotia's catching national park seaside to make cups and cutlery out of hordes of green crabs while it's still in its initial stages this project shows enormous promise for the future of bio plastics and sustainability this is actually fascinating it invasive species invasive species can be such
a huge problem that our water supply is all over the world but so it's fascinating that they're actually moving this forward so what happens to be able to shellfish allergies there's a good question that's if by this time you can catch a boom bust on demand on the brand new portable t.v. ad bail bondsman found the google play and the apple apple. by searching portable t.v. are stainless to your t.v. by downloading the part of all t.v. app on apple t.v. and online at www dot tv quality and you will be a very bell on my devices very soon see you next time. the world is driven by dreamers shaped by one person or those with.
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a little the politics sports business i'm show business i'll see you then. furious exchanges at the u.n. security council over syria's province where turkey's president warns of a launch military operations in a matter of time. also this hour a suspected shooter allegedly killed in western germany is found dead at home authorities have launched a huge manhunt after trying to drive by shootings and she should bars in the town of snow. and the norwegian concrete company fails in a bid to sue its government for financial losses from failed attempts to recruit its workers in russia.