tv Boom Bust RT November 4, 2021 9:30pm-10:01pm EDT
it has figures from the report and whether it could weigh use it. last as supply chain issues have taken a toll on the auto sector. car sales were up for the month of october in the industry, out of the woods just yet will bring in or and fix the car coach to discuss what the future holds. there's a lot to get to it soon. as we leave the program with a follow up on the u. s. federal reserves move to taper monthly asset purchases chairman jerome pow laid out the central bank policy on wednesday afternoon. today, the form c kept interest rates near 0. and in light of the progress the economy has made toward our goals, decided to begin reducing the pace of asset purchases. with these actions, monetary policy will continue to provide strong support to the economic recovery. beginning later this month, we will reduce the monthly pays pace of our net asset purchases by $10000000000.00 for treasury securities and $5000000000.00 for agency mortgage backed securities.
we also announced another reduction of this size in the monthly purchase pace. starting in mid december and as on lookers worried up a so called caper tantrum. it was apparently nowhere to be found as equity here in the united states were mostly muted on thursday, while global markets pushed higher into the days trade. elsewhere in the world's 5th largest economy, the bank of england also decided to keep interest rates near 0, while keeping its quantitative easing measures in place as investors thought it would be the 1st central bank of a major economy to institute a rake hike amid the $900.00 demick recovery. so what effect will these latest central bank policies have moving forward? well, joining us now discuss, boom, but co host chris d i n michael pen. so ceo of pen, tow portfolio strategies. christy, i want to start with you on this. why are we seeing that caper tantrum in markets after the fat? and now these cutbacks, it was quite surprising seeing,
as most investors and market watchers were expecting a tailor tantrum, but the opposite is happening now. investors are just rather placid, and the market is taking everything in stride. so there's a couple of nations for this, although right now we'll never know the real answer because some are arguing that the fed has done a really great job of preparing investors for a shift and policies than it did back in 2013. and that the market largely agrees with this approach. so with inflation rising, investors are comfortable with the plan to taper off and proceed slowly. so that's a nice rosie explanation. the other explanation is that the fed is going to have to then shift its policies more abruptly or aggressively than expected. and the market is in for a rude awakening later on. so the market is too comfortable right now with short term interest rates, not going out much in the last cycle, and it's essentially learned from the past. so now the fed, old roadmap doesn't work in this new post pandemic economy. it knows that the fed
won't be aggressive and that the fed put is always there. so equity investors are going to remain perfectly content that the major world money printers are in no rush to move the policy punch bowl. so we really don't know which one of it, one of the explanations is correct. as of now, we can just say that the fed has done a good job of priming the market and nothing in the data points suggest that there should be any higher market pricing than what we have now. so for now, if there's going to be a waiting game to see if they change gears and turn hawkish like the bank of canada later on. now, michael, i mean you've been long been a critic of the fed policy here on the show. and obviously short of abolishing the fed, you haven't really love. 1 to give them any policy ideas, but in this tapering of asset purchases. all just too little too late at this point . what i want you to there is an organization that regularly destroys your currency
in the middle class. that is, when they're not too busy gambling on best futures contracts in the morning before they go about their money printing. talk about insider information. so please don't blame me for not, not liking the 13 is an odious organization, but of course it's, of course, it's too little too late. i mean, we have the highest rate of inflation. if you measured it prior to the boston commission, we measured the way we need. inflation is running about 14 percent. ok, that's going to shadow statues are into my data. we have home price of their up 20 percent year over year in the last few months. so there's no doubt that inflation is running amok. yes, it's too little too late. defense balance sheet has increased from $800000000000.00 in 2008 to $8.00 trillion dollars. today. there is no way on god's good earth that they can magically and innocuous
li extricate themselves from this massive manipulation of interest rates and money supply without damaging the economy and the stock market. and, you know, as we see that they haven't pulled it back very far. i mean, obviously this is a slow taper, michael, and we haven't heard that rate hike, which we're gonna get to in a 2nd. but you know, what is that negative implication for the economy if they continue to just drag their heels here? ok, so let's just be honest. i mean, at the peak of the money printing under ben bernanke, they are doing $85000000000.00 a month. well, 2 months from now, they're going to be doing $90000000000.00 a month. so you're not going to feel this until probably the 2nd quarter of next year. and then you're going to probably run into a huge problem. because you have the biggest fiscal and monetary experiments the world has seen the world as ever seen is coming to an end. and when that happens,
you're going to have a blow up in the repo market above and the credit markets, or you can have asset price. it's not them, that's my prediction. and you know, of course, i could be wrong. i have a 20 point model that measures and maps all these dynamics, but you just cannot stop printing look at the flow of funds. the flow of assets are . busy a $120000000000.00 a month. the average, by the way, rent has been $250000000000.00 a month since coven broke out. you can go from that figure to 0 and expect the credit markets to remain crescent, expect the repo markets, the function normally expect the commercial paper market the function normally. it's just not going to happen. so i'm on my alert because, you know, i'm going to say something. the crash is going to be something like we've never seen before. not because i'm being hyperbolic, not because i want to improve your ratings, which i'm sure who your guests are,
and i'll answer you are, i'll say this, we have never before had a stock market that is 215 percent. it's asked it's asset valuation 215 percent of ged and it has to correct all way down to 80 percent just to get back to normal. and christy, i want to give you your opt out opportunity to respond. of course you can leave out my handsomeness and that one. well, i mean he, everything that he said was absolutely correct that the fed literally has not done anything but basically gamble with the market. and right now they're just trying to wait and see to figure out what the market is doing and basically trying not to spook the market to too much to make it go into a panic attack. because everything that it's taught the market so far is that the fed will always be that, that the fed put and their hand will always be there to help it out is to that out . basically, this isn't really a market market,
a free market economy anymore. real markets, they have boom cycle, then they have bus psychos that goes into recession. there are crashes. but at this point, the market has learned that crashes are bad and the fed doesn't like crashes. they will do everything in their power to avoid another potential profit. and another potential is after, so basically it has free reign to do whatever it wants. and right now, what is essentially doing is just bubbling up into new all time highs. new all time highs with very little regard to inflation with very little regard to the fact that wage inflation has not kept up. that the entire evaluation of the market is entirely unrealistic at this point. and it definitely seems like the fad has fallen for that little trap of the economy is the stock market when it's not at all their job to boost the stock market. i boom bus, christie, i and michael pedo. append to portfolio strategies. thank you both. as always pleasuring you and your support from the private sector as emerging for c, b, d,
c's, or central bank. digital currency is in fact according to a new j. p. morgan report, a central bank digital currency network could save global corporations over $100000000000.00 a year in transaction costs when it comes to cross border payment to go over the details. let's bring in boom, but co host, an investigative journalist been won. now ben, why does j p morgan believe so much could be saved by creating a cbc? well, i think the general idea here is that obviously cross border transactions are expensive. there's no question about that in the crypto space. this and digital currency and crypto currencies have completely revolutionized banking, which is not just what they set out to do. they set out to obviously replace the banking system, but they have revolutionized that. and so j. p. morgan actually has been a part of this for a long time. remember a couple of years ago, they released something called j. p coin, which was essentially designed specifically for this purpose. because whenever you
have any kind of an international transaction, you have to use a system is called the swift system, which allows you to be able to make those transactions across borders. it is a process, it's expensive, it's time consuming. it takes a long time to get it done. crypto currencies completely change that. and so when jamie morgan is saying, is that, yeah, it's central banks have their own digital currency. so c, b, d, c's. they will be able to follow the trail that's already been blaze by crypto currencies create a much less expensive prospect for banks to be able to send money overseas. and basically they're bypassing that swift banking system. and there was always one of the most interesting things i found about crypto currency in general, when i started to learn about it was the importance of those cross border payments were remittances are so expensive, take so long when it can be done so quickly and easily traceable through the block chain. now a separate report indicates that one of the biggest beneficiaries of cross border cbd c networks could be the association of southeast asian nations. why is that?
yeah, because you essentially have about 10 different nations that are constantly having to change curves. and they all have their own currencies. so there's a couple of things that happen. you were mentioning this when you think about the process, right? that that money goes through. when it transfers across borders, it essentially has to not only be moved from one place to the next, but you also have to deal with the actual currency itself and the differences in the pricing in order to make those transactions work. and that involves basically trading dollars for dollars trading, any kind of currency for another kind of currency, and it becomes complicated. so the way you simplify that is you actually do it through the ledger that's built into crypto systems by going into those crypto systems and saying ok, we all agree on the price based on our currency of this digital currency. then at the point of purchase, those issues for the currencies themselves are dealt with and then you don't have to deal with it. basically moving from one place to the next. and, and you mentioned this a minute ago, but it's so simple. but you have to ask the question,
why hasn't this been done before? why did it take the, the private market through crypto currencies and digital currencies to bring this? why didn't central banks do this in the 1st place on their own? now they're running behind crypto currency and trying to, to essentially catch up with it and mimic what's already been done, working. and when we talk about this regularly bad, because when we talk about c, b c's and you hear, you know, j. p. morgan embracing that idea, why so much toward c, b, d, c rather than any other traditional crypto currency? is it all about the volatility there? now it's about, it's about being in bed with the powers that be listening to cbd, sees the central bank back digital currency. what does that mean? it simply means that government 2nd print their own money will soon be printing their own digital currencies. course. it'll have to print them, right? they'll be mining them, mining their own digital currency and all the concerns they have, by the way, about the mining process and the cost of electricity. suddenly they won't care about that anymore when it comes to their own currency. but here's what will be happening,
is now you have again limitless supplies that are created because unlike a crypto currency, like a big coin that has a set market supply that will ever be mine. central banks won't do that. they'll have limitless supplies of digital currency because that's what they do right now with the currency though, they will be able to mine those. and essentially, if you're a j. p, morgan, or if you're a mastercard, of your, any kind of big player in the space, that's who you want to be aligned when you want to be aligned with the entity that not only has the ability to mind the coins into infinity. but it has the military power behind it to enforce that. and you just mentioned mastercard, because their ceo said on a recent call that the company is making plans to support the b. c. is that different of an approach supporting been supporting the traditional currencies like we just mentioned? well, it is a little bit of a different approach. one of the reasons for that is because you don't have to decide which currencies are going to be winners and losers, right? so right now you have thousands of crypto currencies out there. if you're mastercard, you're looking at that same or i which ones do we want to support and we want to
support big coin, ethereal ripple, which, which ones do we actually one of the top 10 crypto currencies out there. we're going to adopt all of those. it's kind of the same process that you have with companies like robin hood right when they're trying to decide which currencies will they carry on their platform. well, mastercard has the same issue. so what they're saying is, rather than even worrying about that, let's just plan for the inevitable because it is inevitable. the, the cdc, the central bank backed federal reserve backed digital dollar and that's on the really put all of our money behind. but what's really interesting about that to me is that mastercard is preparing the way a meaning. mastercard is helping to actually drive forward the creation of that c, b, d. c. even though the federal reserve says, we'll see if it ever happens, it will definitely happen from boom bus. ben swan, thank you so much for clarity on that story. the other after the united states pentagon abandon plans where it's 10 year 10000000000 dollar jet cloud computing contract earlier this year,
google is reportedly preparing to bid for its replacement, the head of google parent company alphabets, cloud division, met with pentagon officials earlier this week to discuss why the company would be a good fit for the contract, according to people familiar with the situation. google interest in the project may come as a surprise after employees raise concerns about a pentagon contract, which would have provided its imaging tools for use in drones. a few years ago, they later promised not to use it's a i products in military weapons. the new 3 year contract is called the joint war fighting cloud capability, and will be split across multiple bitters. you will remember the jet, i contract was embroiled and legal wrangling between microsoft and amazon and time now for a quick break. but when we come back, auto sales have begun to come back from a summer beating. but has the sector completely rebounded, just on the other side, will break down the latest figures. and as we're gonna break here, the number that the for
me when i would show the same wrong one, i'll just don't need you to fill out the thing because the after an engagement equals the trail. when so many find themselves, well, the part we choose to look for common ground in ah, virginia has roared and democrats are really republic, england, youngins, gubernatorial. when is nothing less than stunning, he is
a political novice and not a trump surrogate this bo, other election will, how far reaching implications, and it could signal the end of the biden presidency. the british and american governments have often been accused of destroying lives in their own interests. while you see in this, these techniques is the state devising methods to india essentially destroy the personality of an individual of by scientific means. this is how one doctors, theories were allegedly used in psychological warfare against prisoners deemed a danger to the state. that was the foundation for the method of psychological interrogation, psychological torture, disseminated within the us intelligence community, and worldwide among allies for the next 30 years. and how the victim say they still live with the consequences today.
oh, just welcome back. as supply chain constraints have caused major issues in the auto industry, u. s. sales for the month of october, ticked up, showing signs that things may be getting better, auto sales in october. we're up to 13100000 for the month compared to 12300000 from the month prior and september. now, along with the number of cars being sold, prices are also up. the average price of a new vehicle is 20 percent higher than in october of last year, sitting around $45000.00. while the price of a used vehicle in the u. s. is up nearly 30 percent year over year to $30000.00. while this may seem like great news for the industry,
many analysts believe that global chips shortage could last well in the next year. joining us now discuss is the car coach herself, lauren fixed lauren: always pleasure to have you on what's the take away from these latest numbers? it all seems really good for the industry has major, including toyota, are able to squeeze out a profit, but consumers are just being forced to pay more, aren't they? right, and that's going to be across the board. you're gonna start seeing increase in prices on everything. and with this chip shortage, you're going to see some impacts to the economy that people aren't thinking about for every vehicle that doesn't roll off the line whether be south career or stood guard or even anywhere in the united states. that's going to be lack of money going into the economy and it could potentially cause a lot of other repercussions. and plus we've got oil going up and everything else is just going to add up. now and for consumers, we've got gas prices that are high, even though the cost of fuel is high, higher car prices are higher, like you just said. so you start adding all this up and for the consumer you have
to be very aware to buy a new car. does it make sense? it makes more sense to maintain the vehicle you have because like you said, prices are just going to keep rising. and with the average price of vehicles continuing to rise, are automakers moving away from those lower price volume vehicles? the honda civics, the toyota camry that way we saw years ago. the key is whatever key is a little lighted and pushing is more is real or a control doing pushing towards more higher price vehicles. that luxury vehicles. right. you're going to see more luxury vehicles that are fully loaded and also pick up trucks and you're looking at the domestics. that's where the profit margins are . those are their cash cows. whether before. ringback g m or ram, that's where they're making their money. so you're seeing a big push to selling the pickup trucks and also toyota with the tundra and the front tier which is help them raise their profit margins. and then you're also seeing the fact that if it's fully loaded, like a mercedes or an audi, you're watching all those more. heavily loaded optioned vehicles. that's what consumers want because it's all it's left on the lot. you're not going to find
a lower margin, like you said, a key, a rio or a honda civic. they are selling them, but they're obviously the manufacturers need to sell those big profit margin vehicles 1st. and now the chip shorter has obviously weight on the auto industry, as we said there. now we keep hearing analysts pushed back the projection for when those concerns may actually be able to ease. is this going to continue to be a problem well into next year or beyond and or do we have any idea at this point? laura? it looks like it's going to be the end of 2022 for the chip shortage. there's really nothing we can do right now. we've got every manufacturer trying to come with another way to make this work. and what they're doing is they're focusing on bringing whatever they can get. and moving that to like you were saying trucks and luxury vehicles. but at this point, i don't the grid of a relief at all for consumers until the end of 2022. but my concern is there's going to be a huge glove on the market. once they catch up, everybody's going to be dumping products. so if you can be patient way to the next year, there will be some deals available and then say the price is actually come down at
that point. if there is that glut vehicles, because when we talk about inflation throughout all the sectors that we've been talking about it in, in the last year, you know, what we notice is those prices don't come down when you talk about a 4 percent inflation rate that like things kind of stabilize in within the deflation. it's just they stop rising at that point, but we're going to see in the auto industry, we probably will see the price is going down. well, i think we're going to see more incentives at some point once we can get some production into the dealer. lots. once you see those empty lots, get full again with new product. they're going to want to sell them after 30 days. anything that sits, they have something called floor planning, and those finance charges can add up very quickly. and obviously dealers want to sell cars and get more cars there as long as that pipeline continues to fill. and that will take some time. you're going to see some potential deals coming on those more mass volume vehicles that we've been waiting on. i, the consumers have been very patient, but i also know they've been very impatient at the same time. and i want to hear one last story before we go, because there was that big story about hurts entering an agreement to buy 100000
tesla's to add to their fleet with a plan of being, being to rent, half of them out to ober drivers. but earlier this week, test the c o l on mosque actually said there isn't a contract in place and they essentially are just buying these at the same price consumers are and for that matter, right? demanded oh, go ahead. right, right. mark fields used to work at ford, i'm surprised actually didn't get the mach e, i was actually talking to afford executive about that over the weekend. and i, it's funny because what you're seeing is these tests are coming in and they're going to rent them out. and if you buy drivers, want to work a deal with hertz that's between them, but there is no contract in place from what we hear. so and of course, deal on must, and he's not gonna offer them a discount because he's got inventory and they're going to get a break from the federal government. absolutely, and this is a fascinating one too, because generally those rental car companies like hurts they do get a deal. they work out the deal with the manufacturer to be able to, to get them at a lower price. and they're paying the same price that you are. i will maybe not you cuz i know you got the inside track there,
but i think it for it as well. lord fix the car, go to thank you so much for joining us today. thank you. and what began as a pipe dream of supplying the world with internet access is slowly changing, but it could soon become a reality. well, the latest approval from the federal communications commission, boeing is looking to move things for the aerospace giant has been cleared for entry into low or an earth orbit, satellites, or leo. this week the decision was cheered by boeing, but the measure was not without its own controversy. eli musk space ex has filed the complaint, citing interference in the sector. it is as it has long been developing its star link satellite constellation. those complaints, however, were swiftly rejected by the fcc boeing is currently planning to launch more than 100 satellites in the coming years to cover the u. s. and some of the caribbean
territory. that, that for this time you can catch boom bus on to bad the portable tv app available on smartphones and tablets. google play and apple app store by searching portable tv. portable tv can also be downloaded on newer model, samsung, smart tv, and roku devices, or simply go to a portable tv with the next time on the bus. mm . i we're empowering ourselves to be more efficient or quicker with our transactions. we can make mobile payments from our starns. this truth is that every device is a potential entry point for security attack. i think okay, but annoyingly with anything but oily. eventually
there's malware on that thousands, maybe sometimes millions each day. they use the cyber. they used the think apology as an extension of traditional artificial intelligence has not many main threat. this is due to the 3 laws of robotics. one of the things that's happening at the many cyber impacts. right now, i'd be where you're really worried about it. most people, when equally b you can put a chip in my brain. so there has been a lot of progress from the hacker side using ai and using other advanced technologies. there has been on the defensive slayton with
oh, in russia this close of car was discontinued more than 20 years ago. even though stay more with the model in the move. sort of can you sell it because of the shot dealing, but it's just important factors. it took 5 years to close again up the well calling industry from the drawing board to the 1st finished model description. so we'll go over the next few of dealing with my food motion from a small school. well, would flow from us with
the narrative this year is climate change. climate change is being swapped out for we need growth and it's being used to justify money printing. and just like printing money doesn't create gross printing money doesn't solve climate change. and either it's been 30 years since the soviet union collapsed long miss colanda go to chill them on to water pump nuclear, you know, talk so. so shown where you swore trust on one coil or tom ukraine was one of the independent states that emerge from the ruins of a super bow. doing awesome good. would you also get on google greens?
come on board, the surely confusing semester yet, and less new lucian with better lung or law. totally different. the realist, what as a, as a resource for you, the business resumes responded to school for sure. with water the past 3 decades when likely ukraine, eye witnesses were cool, the events. this would be more or less of judiciary wilson, a deficiency of chipotle. what i knew to know if that order, i'm not sure. but if i told them once with modern windows and what other forces were at play, you have to do so to whom you show to ensure mushy in you are in the kid. what it? oh, middle currency, little bit. when is it shows us the most of the versions worldly? slower. take a look at ukraine. 30 years after gaining independence with almost unless, unless you mean yet. but unity retorted was late, but
a will. it could be issue ok of lush williston, holding still for a key researcher for the infamous steel dossier on trump selected ties to russia has been arrested in the u. s. on false testimony charges it comes. it made a probe into the real reasons behind a major investigation concerning supposed collusion between the 2. something the ex president branded all which also ahead. lee investigation found no violation of law including the law of war. the u. s. and negation concludes that in august, drones strike and couple that killed 10 afghan civilians including 7 children, was not caused by misconduct or negligence. and the white house announces it will impose mandatory cobra vaccinations for the private sector and new year in the.