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tv   Boom Bust  RT  September 21, 2021 5:30am-6:00am EDT

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the in a world transformed what will make you feel safer type relation or community. ah, you go in the right way or are you being that somewhere? which direction? what is truth? what is faith? in the world corrupted, you need to defend the join us in the depths will remain in the shallows. ah ah, working machine in the back. she popped in. she said, well, i'm getting ready to go shopping for christmas and we recently there was a grim device. another shooting another safe part of american life shattered by
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violence. the gunman was armed with a r 15, semi automatic rifle. when the issue comes home, it's time to act. when we're filing on this issue, the other side wins by default, lady that lived over there. i was walking one of the dogs. she said, why do you wear again? were you scared? i took it off and i think the people need to take responsibility in their own hands and be prepared if those kinds of weapons were less available. we wouldn't have a lot of shootings and we certainly wouldn't have the number that i is blue bus. the one business, so you can't afford to miss branch of or in washington coming up. tremors from the chinese real estate sector are making their way around the globe. it's beers of a default from real estate giant ever grand group. mount straight ahead. we,
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the response from global market and back in caden is spreading beyond equities as the crypto currency sector has also deaf. later on, we think you inside the industry to see how prices are bearing. then we move to the situation in northern ireland as post direct trade issues for later on we bring you the latest from the sale may in 5 minutes or boards. johnson visit to the united states with jam packed show. today. let's get started. and we'll leave the program with more fall out from china. ever grand saga, ever grant is due to pay more than $83000000.00 in interest on its march 2022 bond on thursday. and faith is another $47.00 and a half $1000000.00 due next week on march 2024 by growing fears of
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a default by one of the world's most indebted companies is having a ripple effect across global equities. ever grand group side stock, which is traded in hong kong, dropped more than 10 percent on monday, having lost 45 percent in september alone, causing the hung song index to lose more than 3 percent as investors down the chinese property related stock. mainland chinese equities were mostly flat, but things got dicey in western markets as investors are also keeping an eye on the u. s. federal reserve, which kicks off 2 days of policy meetings on tuesday, where the central bank may set a timeline for capering its bon purchasing program in london, the foot the dropped just under one percent. the german dax found more than 2 percent, while the french cack is down more than one and a half percent. here in the united states, the down f m p. they lost more than 2 percent on monday and the tech having nasdaq shut upwards of 2 and a half percent. so to take a look at just how bad this fell off might be left brain michael guy. he's
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a portfolio manager at toronto investments and publisher of the lead lag report. thank you so much for joining us today, michael. there's a lot to go over here and there are concerns about the adver grand dog of contagion risk, and that this could spill over into entire property sectors. china, the overall economy, and affects the global recovery. what do you make of those concerns? well, i mean, i think there no valid to an extent, but i says, right, because everybody is saying that this is just another iteration of lehman brothers . that's not going to be the case. it seems a little bit too obvious. i saw some staff that show that ever granted me is make about $3800000.00 jobs per year. we know china has been on the warpath internally for this common prosperity. i find it hard to believe that the governors talking to step in and try to prevent contagion, especially if citizens are obviously at risk of being unemployed because of the criminal that every brand has taken on this. and he is not as clear as people think
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. i think a lot of people are seeing these headlines, seen these numbers, and they're assuming that this is sort of the real catalyst for a black one that it could be. but my point is that when it's this obvious, it's probably not gonna be what you think that's gonna bring marcus down will be something else. and i think it's interesting that you mentioned that the chinese government will likely step in because that would be the assumption. but a lot of the issues they're having are due to the curb that the chinese government has put in place. correct? yeah, that's true in, but look, they can come in and simply change management or swap that for equity or did any number of way you can restructure this? this is this, you know, and trying to think as much more power to control the private sector than more develop economies like the u. s. so you are correct, and you can go to conspiracy. and you could say that maybe this is all part of the plan for trying to take ever grant itself and become a developer from that standpoint. but again, i, i find it
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a little bit too obvious that this is sort of started something major. absolutely. now we generally see the types of sell offs in september. this isn't something new . plus we have the big fed policy meeting this week with markets that have been going pretty strong so far this year with the dow still up 12 percent year to date . so what are you seeing behind what is happening in markets just this week, or in the last couple of weeks when you go back last several months? i mean, the reality is everyone looks at the market and defines it by, as you know, to the dow jones industrial average, or the s and p. but the reality is, you had this rolling series of corrections really, since february, small caps have gone nowhere in the u. s. since and emerging markets picked out early february dollars been strong, treasure yields have been dropping. behaviorally, we've actually been an, i would argue, in a pretty risk off environment, even though the headline averages, which are really just being driven by 4 or 5 stocks have pushed and you highs. the reason i mentioned that is because prospective matters here. right. it's not like
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you could suddenly make the argument margaret are due for correction, we've been in a correction. i would argue for some time, it's now maybe just to make it happen. disease as a source of liquidity, which are starting to realize the message of everything else. if i'm right about that, i think that would actually suggest that you end up having a reversion higher by all the areas which have lagged all year, which means everything except us, large cash and the being where you want to allocate money to just that everybody's worried about china and now with that the fed meeting this week, do you expect the fed to lay out plans for a taper and getting out your crystal bar here? how our market is going to react to that? if they do say, here's our plan for tapering. yeah, i mean maybe, i mean, the reality is there is, i think, tune the uncertainties of everything if you know, 12 other central banks meeting globally this this week. so keep in mind about the depth feeling, you know, coming up from headline that them want to try and put out the expiration 2022.
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that's concrete. as grievance certainty ever gram into being the ultimate cover for the fed to not cheaper and not do anything because they argue that that's a risk. they have to be monitoring carefully. i think we have to hung up on this tapering issue. the reality is the fed has no incentive to really keep keep things volatile. they are going to want to try to make sure the things are not dangerous going forward. and if that means they have to hold off on the tape or they will, what's the risk, michael of continuing this q. we continuing, you know, the interest rates near 0. i mean, do we have risks to that? i mean, we know that the markets are going to continue to go up. yeah, the risk is that you end up having the wealth gap, keep widening. i mean, that's the reality. the end result of all this or monetary policy and stimulus in general, is a wider and wider wealth gap. and i mean, let's face every single iteration, the history of whitening wealth gaps tends to occur prior to major evolutions. so societal issue,
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i can argue as to why it ended up being very dangerous. if we keep going into this constant stimulus environment that only favor is a small section of the population. those that own assets as opposed to the income holder, which is everybody else. but look, the reality of these things can take a long time to play out, and the federal reserve is pot committed. they put so much capital since the pandemic into this. that if it's going to take another crisis for them to keep doing more with their, they're going to full use it as an excuse us, you know, keep the mike and you mentioned earlier that, you know, you, you believe we are, we've already seen the correction. we've, we've been in that mode for, for quite a while. what are the hedges right now? i mean, is it still just group gold is where you're looking right now. yeah, it looks to me, his circle is risk off assets are really the dollar gold and treasury's interestingly enough, about today's movement with the sell off treasury yields did not draw aggressively . and gold, even though on them was not positive in a huge, huge way. so yeah,
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so historically are your places to allocate campus to as we've clearly seen, it's not because it's not corporate currencies. these are all larger, the same lever play on reflection. gold benefited treasury benefit there, but again, the, the magnitude which they've out performed today. again, confirmed this idea that this is probably not quote unquote it in terms of put some potential real risk markets. well, we're definitely going to keep an eye on it. we know it's going to be a crazy week this week and probably for the foreseeable future. michael guy, thank you so much for coming on. we hope to have you again soon, portfolio manager at toronto investments and publisher of the lead lab report. thank you so much. thank you. bit points, price has bled again. this time down as much as 10 percent to below $43000.00. that points on monday as a risky assets tumble globally, even though bitcoin is often seen as a safe haven asset, the world's largest crypto currency does seem to struggle when risky assets decline
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. but why is that? well, joining us now to discuss this boom back home, correct. okay, and the analysts are friend, ben swan, ben, why do you believe that bitcoin sees could drop alongside risky asset if it is perceived to be a safe haven asset? and despite what michael guy had just mentioned, they're sometimes seen as a hedge against markets and inflation. yeah, i think i think overall, brent, that big point is seen as a hedge against inflation. i think that's the reason we've seen been going go up quite a bit recently but, but remember, the big coin is kind of blessed and cursed by the same hand. it's blessed because of the fact that government policy, monetary policy that requires printing money devaluing currency and confusing markets with fake money. cheap money, bad money helps to drive the value of bitcoin. because because was created specifically for the purpose of combating bad government monetary policy. however, simultaneously,
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government is also because of the desire for regulation and the insecurity that i would argue government creates more insecurity in the big coin market than any hackers do than any bad players do. it's. it's the indecisiveness of government, of how to deal with the coin of what to call it, of how to treat it of how to attacks it. i think the i arrest does more to actually hurt the price of bitcoin. then then, you know, these other issues do so on one hand, government, yes, absolutely helps to validate bitcoin. but at the same time they become a threat to big going and other crypto currencies as well when they push for for tighter regulation or very insecure regulation. because no one really seems to know where they stand on regulation and now, but as we just talk about global equity markets overall, they're down as investors fear. the spreading risk of that shake out in china as property market tied to highly indebted developer ever grants. so how does bitcoin play into all of that? yeah, so i think with the ever granted story, obviously, as, as you guys have been talking about, there is a huge fear, right?
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that this is going to cause a domino effect. and we're going to see markets crashing. you mentioned the markets that are all down today across asia and even in the united states across europe. but i think that big point is a separate issue from that, but we're seeing with big coin i think are certain investors who are selling bitcoin in order to cover these other losses that they're seeing right now. so while bitcoin is not being treated necessarily as a hedge in this moment, i think what's being done is between being sold because of its value in order to prop up or secure other areas of the market that are extremely weak right now, it's not that big coins week is a big coin is going through a sell position right now, because a lot of these investors want to protect their other positions. so they're selling bitcoin in order to pop it up. but i don't think bitcoin is being sold just by what some people may be claiming because it's not being sold right now because it is insecure over the rest of what's happening with the market. it becomes, again a stabilizing force,
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as those investors sell it. and then you actually just mentioned this in your 1st answer there about how bad monetary policy helps to drive up the price of coin. and it's kind of a weird situation where you have a lot of se bitcoin evangelists who believe that the fact is they don't like the fact they don't like the fed monetary policy. but what they do like is when bitcoin price goes up. so if the fed continues with this easy monetary policy, that is good for bitcoin investors, right? well, it is, it's, it's some extent. yes, it's good for, for big point investors. but why is it good? it's not because every time the fed infuses more bad money into the system, it automatically causes bitcoin to go up. so it's not like a see saw right where the weight of one lifts the other. it's more of the revelation, right? it's the idea that people see the bad policy. so because the benefits, as more and more people see in competency of the fed, bad fiscal and monetary decisions that mean that their value,
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their savings are going to be robbed of value. but inflation means that every single dollar you work for is worth less than it was the day before. right? so what the fed is doing is they're not necessarily bringing up the price a big point. they're proving the concept of bitcoin and that drives up the price a bit quite, totally understood. now you mentioned that part of the volatility in the crypt market is the result of a lack of clarity about re, could regulation. now currently the financial stability oversight council is looking at stable coin and could begin regulating those. what's happening there? this is kind of interesting because that particular agency is an oversight board, is looking at stable coins because it's claiming that stable coins threatened stability in the financial markets just kind of crazy, right? because the whole point of a stable coin is to bring stabilization into the crypto market. the, the problem is, is we've talked about before is that the fed is never going to be happy with the treasury department's never going to be happy with any concept of
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a digital currency unless it is controlled and owned by the united states government. that's what we're saying, and a lot of countries around the world right now, right? they want to pretend on one hand at digital current, these are so dangerous while they're simultaneously working on the technology to attempt to emulate, into copy and to create their own digital currencies. so yeah, the idea right now is, is there has to be regulation because stable points are dangerous, bitcoin is dangerous, the theory is dangerous. the but the real reality is if you look at what's happening in the markets and what's happening right now in the ever dram situation is a great example of it. what is a bigger threat to markets, right? crypto currencies, or heavily indebted companies that are allowed to, to grow with enormous balance sheets that they can never pay off. and they're on the verge of collapsing. and they're waiting rent as you know, waiting desperately for a government which means taxpayers to build them out. and save them, that is far riskier to markets than anything the crypto currency is doing. boom, bus bend, swan is leave it on
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a hard note there. thank you so much. thank you. time now for a quick break, but when we come back, the northern ireland trade conflict continues to be a point of contention. as prime minister boars johnson is in the united states this week. ahead, we're going to bring you all the latest detail as we're going to break here, the numbers that close the o. right now, there are 2000000000 people who are overweight or obese. if possible, to sell food that is 20 and sugary and faulty and addicted, not at the individual level. it's not individual willpower. and if we go on believing that will never change as obesity epidemic, that industry has been influencing very deeply. the medical and scientific
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establishment, ah, what's driving the its corporate, me. ah, the ah, ah. join me every thursday on the alex salmon show. and i'll be speaking to guess in the world, the politic sport business. i'm show business. i'll see you then me
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you know, one thing we don't talk about america is class or other countries from class war like great britain is a prime example. but in america to play no take step now. yeah. the and welcome back. energy prices in europe are continuing to spark concerns as a perfect flory flurry of events are causing futures in the sector. despite with winter, quickly approaching on the continent, surging demand is threatening to send inflation even higher as vital gas prices in the region have tripled since the beginning of 2021. but demand isn't the only factor behind the rise in prices. abnormal weather events in europe and the united
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states have also damage the length and the supply chain with high demand already causing some businesses to halt in the region. some are looking to the recently completed nordstrom to pipelines from russia to germany, as a means to ease the growing pressure on the sector. and a follow up to a story we've been covering in recent weeks, u. k. prime minister boris johnson warned that post breakfast trade disruptions in northern ireland. can't go on forever. as analysts warned, the so called sausage wars could effect the holiday season. johnson also told reporters traveling with him to new york for the un general assembly. the dutch prime minister mark ruta, had offered to mediate the issue between the u. k and e u, adding that the country wants no barriers for trade and criticize the way it was being enforced. johnson's comments also come ahead of a tuesday meeting with us president joe biden at the white house. joining us now to
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discuss this and some other issues based on the british prime minister on his trip to the u. s. is hillary for which board member with the the american business association. now, hillary, i want to start with the northern ireland protocol. does having the dutch prime minister involved and is this a real thing? is this actually going to help the situation find a resolution? what pleasure to be back with you again, brand. actually one of the things that are strong kind of said is he said that this is absolutely unreasonable. more than 20 percent of all the checks on the perimeter of the e. u. a conducted now in northern ireland. so really the use just trying to make a point about this because he don't need that little tiny border and all that. so now to answer your question directly, the british and the doctor historically had a very good relationships. there are probably of many multinational partnerships and corporate a lot says between adoption and anger. doctor arrangements, we can think of b, p and shell and unilever and i and g and all the rest of them. so the very good relationship can help. yes. among routes, certainly,
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obviously he's far more ingrained with you and he has far better relationships with you. having mark root in involved is really a good idea. however, the dust diplomats have questioned what boys johnson said that actually mark router had not offered his help. it's more that they, the doctor advocating that there be this conversation with them and involving them in the conversation because they want to protect themselves. they don't want to look like they're going behind the backs of the you. but having the doctor involved is nearly always good. and now also, i guess that there's this big trip to the united states for boys, jesse speaking at the united nation now monday. yes, and then he's going to be at the white house on tuesday. one of the big issues that they were hoping or he was planning on discussing with president biden, was going to be that travel band that we see from the u. k. to the united states, but the white house earlier today actually announced that there would allow starting a november u. k. and you said it's into our fully vaccinated will be able to travel to the
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united states. how important is that? yeah, it was actually just the u. k. wasn't to do with you, but yeah, it's very important actually brand what a lot of people don't realize know a mirror, a 1000000 brits. what can the u. k. u for a 1000000 brits. what can the us a 1000000 americans work in the u. k? so you imagine there's at least 2000000 people who've been kept away from their respective families during this whole cova devil. so that's been really bother a strain. and then there are those of us who, having to check since we have relatives over then hoping our relatives can come over and vice versa. but it's more important in terms of an overall trade route. yes, an extensive amount of trade is done. this is viewed as a boost post to the u. k. economy and the u. s. economy. of course nancy pelosi is over in the u. k. traffic house and she's been barking on about the fact that she's going to, obviously for the u. k. u. s tre. deal in the northern protocol as hell too, but that's another issue why i wanted to hit on that. why is that? an issue that an american law maker would start to criticize and say, such a thing. you should remember that over a 1000000000 dollars with
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a trade is conducted between just california, her district and the u. k alone. so she's actually the british and she's been very small about this. the british embassy is going to congress with a report by congressional district and state state congressional district of how many american jobs are in those respective u. k. jobs and american jobs are dependent on u. k. business. so it's very smart move by the british empathy. but what it is, is that in colors you have a lot of american politicians that have irish roots and don't want to see that protocol broken, but not to does anybody in the u. k. in the u. k. they will piece also to good friday agreement has to be maintained in terms of peace. and now there's another issue that's obviously been a big news over the last several days. and that is the pact for building nuclear powered submarines between australia, the united kingdom and the united states. and france is none too happy about the how is that going to affect the economic relationship between france in the u. k? well, couple of things. number one, the french have to pull their french and out of the u. s. and actually the french,
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if you remember that the oldest allies the u. s. because they actually ganged up on us, but to our new orb independence. i think it's very sad move in actually, particularly when they micron declared about now it's great that the adults are back in town when biden was elected. because this is being very childish to withdraw on bassett, but now to your question brand, we've gone to the trade with the u. k. i mean, this isn't good for any kind of relations. although the issue is not that the u. s . and the u. k. form this pack with the australians, it is that the diesel submarines are not viewed as being as competitive and what is necessary to for the chinese in the pacific because these are submarines have to surface and the nuclear submarines can stay under the water for fall greater amount of time, so the diesel submarines were viewed as obsolete. so this agreement was more about what is best for the protection of australia. not a some thumb against the french from the brits, but it doesn't help in terms of your exact question,
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which was with regard to trade. it doesn't help because of course that's still that the fish was, have not ended. and there was still a lot of friction between the british and the french, and i have just about 30 seconds for hillary. but another thing that prime minister johnson is going to do well here is meet with jeff bezos. yeah. of amazon, about their tax basically requirement they didn't pay very much as they saw a 50 percent increase in business in the u. k. why is this? it's an issue that he's talking about. this goes back to the g 7 summit that took place back and i think it was june and como. and that was the agreement for the global minimum tax. what this is, is this is a tax particularly on the high tech funds. and the important part for the u. k. and actually all countries in europe and countries around the world actually because it's been reported this could actually, and global poverty is that the taxes be paid and in the origin of where that business is conducted. so amazon is booming in the u. k over 50 percent increase in sales via amazon during coded and taxes on those products should be paid in the u. k, which is where they were purchased. and so both johnson was that income coming back
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to the u. k. and you're never going to hear me argue against that exact point hillary for which of the british american business association. thank you so much for joining brent oil. and finally, an extremely rare, 1st edition printed copy of the us constitution will go under the hammer at the other b. as in november, the auction house said friday. the document is from the 1st official printing of the final tact of the constitution. it's believed there were roughly 500 copies of the document produced and were given to delegate of the constitutional convention in 1787. now there are just 11 known copies with the one up for auction being the last in private hands. document last old for $165000.00 in 1988, but said to be estimates, estimates the value is between $15.00 and $20000000.00. today, the seller dorothy tapper goldman says the proceeds will go to a charity created in her name to further the understanding of democracy. and that's
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it for this time, even catch boom, but on demand on the portable tv app available on smartphones and tablets through google play and the apple app store by searching portable tv, portable tv can also be downloaded on newer model, samsung smart tv, roku devices, or check it out at portable dot tv the next time. mm. i aah! working machine in the back. she popped in. she said, well, i'm getting ready to go shopping for christmas and we recycle by. there was a good good bye to another, shooting another safe part of american life shattered by violence. the gunman was
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armed with an a ar 15 any automatic rifle. when the issue comes home, it's time to act when we're filing on this issue. the other side, when by default the lady that lived over there was walk in, one of the dogs. she said, why do you wear again? were you scared? i took it off. i think the people need to take responsibility in their own hands and be prepared if those kind of weapons were less available. we wouldn't have a lot of shootings and we certainly wouldn't have the number that i when i was shot the wrong one. i'll just don't the room. yes. to see out the thing because after an engagement equals the trail, when so many find themselves well the parts we choose to look for common ground
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in the, in the moon the headlines this, our man, she's dead is jim gas station cashier who asked him to wear a mask sparking horror and debate from the countries media over growing fury. again, co restrictions stay morning is and i sent for russian 15 per mouth, universe to shoot and kill 6 hazel hundreds and paid their respect to the memorial to the victims of correspondence and spoke to the teacher to witness the attack. my next class was due at 11 30 am.


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