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tv   Boom Bust  RT  February 25, 2020 5:30am-6:01am EST

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here are the latest numbers on the virus as of monday there have been 409 new cases of the virus and 150 new deaths that brings the total to 77150 confirmed cases in china with the death toll of 2592 in terms of china in the majority of the new cases 398 were in the who by province and that includes all but one death it's also important to know that many thousands of people have already recovered from the corona virus which again mostly places at risk the elderly and the very young as is common with these kinds of things among those countries though that we were just talking about italy is now looking to take more drastic steps after a 6 person has died there italian authorities on monday get this they shut down schools universities and museums across the country's north they also banned the public and private gatherings including soccer matches and cultural events in venice indeed its annual carnival early and catholic church leaders announced the suspension of masses. we have
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a total of $265.00. in these last few minutes yes. it is an adult i mean years old from. as i said earlier there are 200 in 1000 and. one. or both of the people affected italy were in the wealthy northern part of the country around alone and as a result there are a number of border crossings around italy including in austria holds in trains from italy romania demanding written statements from all arab passengers about their whereabouts in the country and germany stating that quarantines of entire communities could be required in germany if the virus spreads their. major u.s. indexes are off about 3 percent with the dow dropping a 1000 points mid day before recovering slightly as coronavirus cases outside of china surge there still remains a high degree of uncertainty surrounding the virus as no one knows how this all to milly will play out many analysts have predicted
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a sharp recovery similar to that of sars however it will all depend on when the situation will come under control the treasury yields are sinking as investors flee to safety assets with a 10 year at his lowest level since 2016 and the 30 year hit a record low of $1.00 to $3.00 and the 10 year yield had inverted again and this is the deepest inversion since october 9th where the trade war was at its peak gold now continues to surge as demand is almost up 2 percent with investors seeking safe haven and starting to factor in the potential for a central bank rate cut to offset any economic damage from the outbreak and the yen however which is a safety currency and generally moves in parallel with the treasury in gold that however is down with the corona virus spreading within other asian countries and this in turns the yen now from an asset into a liability and it's almost down another percent monday and looking here at the equities heat map you can see how bloody this entire selloff is with apple disney tesla. new video and all the oil names subsequently falling with them with the most
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exposure to asia however if we take a look at the little green specks of green on the map and there's not many green you can see that gilliatt here which is a front runner in developing a new experimental drug treatment to cure a coven 19 that was up almost 4 percent today and then over here you have all the gold miners here newmont barrack harmony and beta goldcorp all them up about 3 percent on the gold rally and then finally interestingly enough we have a z.m. here is in communications and peloton rallying as workers rely on telecommuting and avoid public areas like jinns to prevent further spread the news flow now on colvin 1000 has taken another more negative tone over the last few days and we're starting to see a sizeable risk on the move this economic toll is also starting to expand with manufacturing around the world showing the negative effects of the outbreak. and to break this down further let's bring in peter schiff c.e.o. of europe as a capital so peter last time for this law we saw the fed step in with an insurance
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type cuts in 20 so do you think the rhetoric will still be the same this time around or will they actually commit to cutting all the way down to 0 to a pandemic fears and possibly even going negative. whether they commit to moving to 0 or not that's exactly where they're going and in fact the bond market is telegraphing right now that we're going to have several more rate cuts likely between now and the end of the year and i think the bond market is right but it's not that this is the appropriate policy the feds should not be cutting interest rates but that's what they're going to do because that's the only thing they can do but it's not going to cure the coronavirus or the economy it's simply going to make the u.s. economy sicker. so you know we're watching the virus spread outside of china now it's a countries that are not as strict with quarantines checkpoints going these all city lock downs even though italy may have had a big effect on the markets because of the fact that their response has been to you know institute. a lot of these lockdowns if you will read about 50000 people
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roughly are under some kind of quarantine in italy not even close to the 60000000 we're talking about in china but for a european country to take those steps is that causing some of these fears to rise and in terms of the spread of the virus. well certainly i mean the coronavirus fears are out there it's just one more thing to worry about look you know the u.s. economy for example is a gigantic bubble and maybe the coronavirus is going to be the pin i mean i have no idea but if it wasn't this it would be something else but there are some of much deeper problems than the coronavirus the markets are in general are very overvalued you have a lot of leverage in the system if we had a healthier economy we could better withstand the coronavirus whatever it turns out to be but the bigger problem is the fed's cure is actually worse than this disease because if the coronavirus actually becomes an even bigger deal the real threat is that it bottled up production that fewer people are on the job so fewer goods get
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produced companies can't get the supplies that they need so you bottle up the supply change and we get a shortage of stuff and the correct monetary policy is to drain liquidity to match the reduction in supply but if instead the fed and under some other central banks poor and even more liquidity and create increased demand for a diminishing supply of goods then you really get a big increase in consumer prices and that worsens the downturn you get worse case of stagflation now u.s. treasury secretary mineta chen said that apparently he does not expect that kind of bias to have any material impact on phase one of the china u.s. trade or even the economy just like he said that the task are also paid by china and not the consumers but whatever given the slowdown how is china supposed to deliver on its $200000000000.00 worth of purchase commitments when even previously before this entire coronavirus even started and less risk. not all of it. minutia
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is going to put a positive spin on any news and in the 1st place the chinese were not going to live up to those commitments anyway they weren't even real commitments and there's no way they know how much agriculture for example the chinese are going to buy let alone how much they're going to buy from the united states so the whole thing was a smokescreen to cover up the fact that we really didn't have a deal but now the coronavirus actually gives the chinese a better excuse as to why they're not living up to a deal that they were going to live up to anyway and on trade you know we saw the u.s. dollar is continuing to strengthen at this point shooting to a 3 year high versus the euro we've also seen president trump accuse other countries of devaluing their currencies to exports what do you think is going to start becoming a problem for u.s. corporates and u.s. exports and also in light of what's happening with the dollar right now we're also seeing gold going way up i know you're big on gold how do you think that shakes out . well 1st of all i don't think other central banks are deliberately weakening their currencies i mean they're pursuing the same type of inflationary monetary
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policies that we are but what's happening is traders speculators are buying into the dollar because they falsely believe it's a safe haven it's not they should be buying gold and of course other people are gold hit all time record highs today in the euro in the year and in the swiss franc ozzie dollar canadian dollar a lot of countries currencies in the rupee you're seeing prices for gold that you know were gold was never traded at in the us were near a 7 year high but we're getting close to an all time high in $1.02 so all currencies are we getting right now it's just that the dollar is weakening more slowly than a lot of other currencies but that is going to change because people who are piling into the dollar because they think it's a safe haven are eventually going to pile out and the dollar's going to start to fall and in fact it didn't even hold on to most of its gains today it had some early morning gains but by the end of the day it had lost most of those gains. yeah pathetic i don't make that much. if you're going.
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for president trump has kicked off a 2 day visit to india with a huge campaign style rally alongside the indian prime minister monti on their way to the rally the president and 1st lady maloney and they visited this spiritual center where mahatma gandhi once lived that site is now a museum and a national monument president trump then spoke at that rally they called the nama state rally in a massive 110000 seat stadium which is still under construction though you couldn't tell by looking at the pictures it's incredible he was praising india as a growing economic power and said that the nation would soon be home to the biggest middle class anywhere in the world. for the 1st time in history every village india tao has access to electricity. 320000000 people more indians are right down connected
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to the internet. the pace of highway construction has more than doubled over 70000000 more our households think of this 70000000 more house elves have access to cooking fuel 600000000 more people have access to basic sanitation and incredibly 12 eat the and citizens are lifted out of extreme poverty every single minute of every single day. well of course president trump also took time to encourage india's leaders to continue army in their military with american made missiles and rockets and ships in fact the president also one now nst $3000000000.00 worth of u.s. made helicopters which the in the indian military plans to purchase and the rally was i mean when you see the numbers just absolutely incredible how many people
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showed up with this thing absolutely now do you think that come with actually turning his attention to india because face to as apparently delayed and whatnot i think there's a very very strong chance that that is the case right obviously he and modi seem to be akin to each other they seem to be getting along pretty well and the president kept talking about the importance of developing the trade relationship with india because of that growing middle class but it's also interesting to watch the president doing this at the same time that amazon's c.e.o. jeff bezos has set his sights on india as being the next big market so it seems like there's not just the president's eyeballs but a lot of eyeballs on india right now as that next 20 year for u.s. relationship the money does seem to be open and because his entire platform is basically built on economic reform for india time now but a specialty. the u.s. is asking france for safe haven for u.s. companies in order to help. what is that about and isn't the digital tax for u.s. companies. and as we go to break here the numbers at the close.
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to shape.
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nuclear become a battleground in the us. people of demanding the shut down of a local plant. is right now my focus because it's a very dangerous. power plant the owner is attempting to run the reactor beyond its operational limit this case just sort of puts a magnifying glass on where's the power in this country where's it going is it moving more towards corporate interests or is it more in the idea of a traditional participatory democracy is or powerline with the people this case demonstrates that struggle in the very real ways.
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thanks guys or financial survival. when customers go by the reduced price. well reduce and lower. that's undercutting but what's good for the market it's not good for the global economy. in the troubled 19 seventies a group of killers rampage 3 parts of northern ireland that was coordinated loyalists attacks protect the only population tens of thousands were forced to flee their homes and what was striking to put these attacks was that the or you see the police actually took part in the attacks so instead of preventing it they were active participants in the burning of the streets in belfast i think more than a 100 innocent civilians will. as the review continues and we found out more i was surprised about the extent to which the collusion was involved in some of those cases the killers would lead to be named. and i think it went.
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very top i think if the. washington. politicians you. give the go ahead. and. welcome back france says it is ready to listen to a proposal from the u.s. government over a potential safe harbor for u.s. tech companies in order to shield them from a new international digital tax though francis finance minister says that he still doesn't know exactly what that safe harbor actually means but he went on to say that it's fair and useful to give all the attention to this new proposal and quote
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well meanwhile the world's top economic leaders warned on saturday that an international tax fight between the united states and europe would pose a new threat to the global economy of a resolution is not reached this year so joining us now to help break this down is hillary for what's your board member with the british american business association and she loves to talk to juggle time so good to have you here pleasure and i would start with this talk about creating a safe harbor or a safe a been for those u.s. tech companies because at 1st blush when you hear that terminology it sounds like the u.s. is asking for tech companies to be given some kind of special protection across europe from digital taxes but the whole point of these digital taxes the entire conversation surrounds exclusively u.s. tech companies like amazon apple facebook google cracked yes and that's how can they name me the european big global tight right now these unicorns are all american companies and that's because the nation be obviously the inspiration
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that's here in terms of the entrepreneurial spirit as well as all the other info. it is financially tax wise etc in the u.s. i think what you're seeing though is you're beginning to see this global consensus you mentioned the finance minister of france that's bruno him saying this 2 days ago he was at the g 20 summit. saudi arabia i think what you're seeing is that actually the tech executives are going to eventually want this because what they don't need is to have different kind of regulations in different countries and eventually my prediction is you will see a global taxation the question is what level and how that's the issue at stake what level and how now france isn't the only country looking to do this apparently italy spain austria and the u.k. they have all announced plans to have some sort of digital service tax and these taxes will actually be based on online activity by the people residing in that country regardless of whether their company has a physical presence there are not yet that's correct and actually stephen ocean our national treasury secretary he's actually said this is not really
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a tax he calls it a tariff because it's actually it's a gross sales tax it's not on income and he's right it's not a tax it's a tariff so yes it's a tariff when you mention the countries you're right totally it is also includes hungary as well as the other countries that you mentioned and many others they've already instituted some of these local taxes so i think again you'll see sweet you'll see a sweeping consolidation of this is interesting to note when you look at certain countries you look at different places where they like like ireland they actually incentivize companies to come there because of their low low tax rate that's what it's all been about and that's been a great rub of course between the u.k. and ireland has been them undercutting global companies and wanting to attract them to ireland which i think it's 80 percent of the country's revenue comes from global u.s. high tech firms so when you talk about the size it for the i think you're spot on when you say they don't want to deal with a hodgepodge of regulations across or taxes excuse me across europe because when you're having to deal with different rates in every country but they love the idea of the hodgepodge system that allows it to become
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a tax haven rather they go right for which country they want to be settled an alphabet alphabet. apple and facebook pay pay effectively under 10 percent in taxes right and that's because of their position in ireland and right now as we know facebook is actually in court right now with the i.r.s. over a 9000000000 dollar tax bill the iraq claims that you have right because of this position in ireland so at the end of the day do both of those things change is that ultimately going to be the compromise or you can't hide your taxes in one country but you're going to pay a flat tax worldwide or or globally i think that's what's going to happen in the long run that's got to happen because you've got to have some kind of uniformity i think what's a pity in a way is a lot of countries actually benefited from having these global tech companies that from the jobs and the cash flow and everything and what we were if everybody's looking for basically i underpinning all of this is do we want stability and jobs to flow and income to yes so in some ways it's been good for the global economy on the other hand it's different countries pointing and saying we don't want them doing now we want to and i certainly the positive of the competition that's created
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by lowering the sox's right contractor able to compete but when you can't compete on the taxation side then that creates another problem that's and while it is a race to the bottom of the. member with the british american business association always great to have your insights that i just pleasure bad because a. fascinating story as the state of new mexico is now suing google for the secret collection of information on children which included their location their browsing history and the videos that they were watching and all of it was done through a google suite of programs provided for free to schools across the state but the state says google was actually taking advantage of kids and families without their knowledge and was simultaneously breaking the law joining the charges while the girls contributor to america's lawyer molly glad that you're here. so
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my how hard is that for google to be able to fight this thing because right now. we know that this has happened to them before so is this something that they are familiar with or what is their defense. absolutely kristie google is saying hey this lawsuit is factually wrong we would never spawn kids we took a pledge several years ago that we wouldn't gather this information to use to do bad targeting and lo and behold the a.g. of new mexico says wait one second we're not buying this we think that that's exactly what you're doing so essentially a good portion of schools in new mexico about 2 thirds of them use these inexpensive often free educational tools that google provides and what this lawsuit states what they found is that even though under the educational products when these things like you know google docs or chrome books are being used in a course that's owned by google koren books work with their operational software so
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they're using these educational sources to further their education and supposedly it's not being used to gather information and it's not certainly not being used google says to use that to target ads however when kids do log on to their chrome books under these educational products if you will when they log on at home there's a feature that automatically syncs all of their devices to all the information that they're sharing with google through their educational products so basically it's a feature that google current turn off but they allow it to stay on automatically so basically as soon as a kid logs on after having utilize these educational products as soon as they log on to some of their other devices that chrome browser unites all those devices and so they're able to see what these kids are watching where they are physically where they go who they talk to how long they're watching what videos they're watching who's in their contact list who's they're texting and so parents are pretty outraged as you might imagine and certainly this is not the 1st time that google has heard these accusations is that it's why they had to take that pledge several
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years ago that they would not take advantage of children it's against state laws it's against federal laws and that's what they. new mexico is alleging even though google is saying hey you're factually inaccurate that's not what we're doing he's basically saying yeah well prove it yes so 2 quick points on the number one google was essentially giving away these chrome books right they give them away for free they actually believe google is more pervasive in public schools across america than even apple is because they give away so much product but now we know why the other point is that google doesn't really deny the trucking right there just denying that they were using it for advertisers so there's no good there's no argument here and i think what it comes down to molly would give you the last word here is it really comes down to who owns this data to google have the right to collect this data and collect all this information even if they are not selling it or do they have to get permission before they do it. yes absolutely you're supposed to according to federal law children under 13 have to get consent from
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a parent in order for their act information to be accessed by companies like google or amazon or any of these other giant tech companies that are essentially like you said gathering data harvesting it on any and all things that we do so while they're saying they're not using it to target as new mexico says you know we believe otherwise and so you're exactly right i think what's going to happen is that you're going to have to see legislators federal and state take a hard look at what can be done to keep these companies accountable and keep these tech companies from basically profiting off of private data where we in turn perhaps can have the option to sell it to them or at least give our permission by going to the u.s. factor of it these laws really need to be addressed i think we're behind the times when it comes to federal and state laws when it comes to protecting children and their information because tech giants like these guys they can gather that information and they want tell us they're not doing anything and as we've seen over and over again they do what they want with that and they pay a fine it's a slap on the wrist and they keep doing it while the birds contributor with america's lawyers acting so much. so how hard is it to remember your password to access nearly $60000000.00 or if you really can remember it can you manage to keep
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your password in a safe place and not lose it well up. only clifton collins an irish drug dealer could not do either and in the process lost access to a stash of $16000000.00 worth of decline so collins printed out the keys for as they went accounts and hid them in the aluminum cap of this fishing rod case which was then stored in a house in county galway ireland so so far so good but then he was arrested after police busted him for $2000.00 worth of cannabis and his car and was sentenced to 5 years in prison break so his landlord who hasn't been able to collect rent vacated the house and dumped all of collins possessions including the fishing rod into the dump the dump was shipped to germany and china to be incinerated and the keys to $6000.00 bitcoins were then lost forever. i mean it's unbelievable you have $60000000.00 worth of big coins and you can't go get a safety deposit box some place to put this in instead of keep it in a piece of junk inside of your apartment everybody wants to steal
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a safety deposit box so maybe he thought that hiding it in a fishing rod was apparently a good idea right i mean that apparently thought so now we know that was clearly a terrible idea but i guess the question becomes what are the steps that you take i guess the other thing you could have done is it could have put it into a google doc and sent it to exult on the internet it would have been just as unsafe to do that or you could just remember it not that hard or you could do what you do get a little tattoo that has all of your your numbers on your arm right there always and always doing that is it does actually hide in a little to the safe and then put that safe with a good location and then only tell your best friend. so one other person will know them like that well that's it for this time you can kind of boom bust on demand on the brand new portable t.v. app available on smartphones through google play and the apple app store by searching portable t.v. or extremis to your t.v. by dialing a viable t.v. ad on apple t.v. and online at www dot tv one t.v. only available on my devices or as always you can check us out on youtube dot com slash boom bust r t no secret password required see is there see you next time. in
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the troubled 19 seventies a group of killers rampage street. that was coordinated loyalists. population. were forced to flee their homes and what was striking to put these attacks was a p.r. you see the police actually took part in the attacks so instead of preventing they were active participants in the streets in belfast at the time more than a 100 innocent civilians were in the. can seniors and we found out more.
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about the extent to which the collusion was involved in some of those cases that killers would later be named. i think it went to the very very top i think it is. the water where. you. give the go ahead. the point is should we actually be charging for it because this is when we charge things it's because it's been a benefit to the person who is buying it and that's the audiology to education about 30 or 40 years ago but the perspective of education was originally that education is a benefit for saudi in general i wouldn't want to live in a society without doctors or engineers to happen without economists. saying it of
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being a profit. if and ignoring the public means that we're ignoring that the skill bias we need for a sophisticated society and putting the burden of that school on the individuals who were turned it into is just now the trying institution. that is not the basis for a functional society. today each day.
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is here. to be reached. 2 pm tuesday afternoon right now here in moscow in the headlines for you in corona virus cases in europe in asia. for a wave of confirmed patients now and its neighboring countries are questioning the open borders lot of people. elsewhere in the headlines it's the 2nd day of june this is us extradition hearing in london as a grieving british family weighs in. pleading with the u.k. to release the wiki leaks founder unless the u.s. hands over the suspect to. hear from the family's lawyer. in the u.s. u.k. relationship. public. police.


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