tv Boom Bust RT November 23, 2021 1:30pm-2:00pm EST
reserves president viking has nominated the current head despite push back from some members of his own party. straight ahead, we're gonna dig into the fresh nomination and what it means for the nation's economic recovery. and oil prices are coming back down to earth as hopes of fresh supply can help ease the global demand. but we're going to bring you up to speed on the very latest developments from the energy sector and regs. it continues to strain trade relations between the united kingdom and the european union. as issue persists along the irish board, we have a factual today, so let's get right to it. and we begin today with this announcement to keep things as they are with the federal reserve bank. yes, president biden is set to nominate federal reserve chairman jerome pal to a 2nd term to lead the central bank. so let's break down exactly where things stand at this point because keep in mind it is the fed policy of printing u. s. currency non stop and without concern for impact of the economy, that may be the biggest single contributor to skyrocketing in inflation, inflation that is not transitory and it is here to stay. so here's the statement
from the white house quote, if we want to continue to build on the economics success of this year, we need stability and independence at the federal reserve. and i have full confidence after their trial by fire over the last 20 months. that chairman powers and dr brainer will provide the strong leadership that our country needs. this was a statement from president biden on monday. so let's break down exactly what this means because it means a lot and who better to talk to them. former fed insider danielle dee martino booth . daniel, thanks for being here. so jerome pal will say on as the fed chairman, it appears and president biden will also nominate for governor les brainerd as the vice chair of the central banks board of governors. but in the statement that we just read, president biden the same, we need to build upon the economic success of the past year. it's obviously spin, no doubt about that. but come on, economic success as a result of fed policy. what am i missing? it doesn't seem like you're missing a thing and by the way, thank you so much for having me on this afternoon on this historic day. you're not missing anything. there's to call this year at economic success when
a pound of bacon yesterday at the grocery store was $9.49 is absolutely ludicrous. inflation is eating americans alive, especially though the lowest income earners inflation is a regressive tax. and it's also hurting the fixed income, the retirees of the world, who they don't have the capacity to spend more at the grocery store. they don't have the capacity to fill up their gas tanks. when when gas prices go up, they don't have the ability to pay a much higher rent if their rent is increasing by $10.00 or 15 percent. they're on fixed incomes. so i think what he's, what he meant to say was that he wanted to ensure stability in terms of the fact that the stock market not going down, which is obviously part of the fetch mandate and, and, and accomplish through the conduit of, as you said, keeping that printing press going 20047 monetizing every last penny of us debt. yes, absolutely credible. you know if you're rolling down a hill right, you're crushing and falling and tumbling over yourself. it does create instability to stop yourself at some point and i feel like that's what they're referring to
when they're trying to keep stable stable, they fall down the hill and keep the momentum, but it would be easy for us to sit here and beat up jerome powell all day long, we could probably do it for the entire hour, but honestly the issues with the fed, they are just power issues. right? that the very nature of what the fed is trying to do, whether it's drone pal in that seat, whether it's janet jaelyn doesn't really matter. they want to manipulate the economy in a way that allows for the most control over markets possible. they believe that's the answer right? the question is though, because it doesn't seem to work what needs to be done to deal with the broad scope of what the fed does to have a meaningful impact on all those things you just talked about were real. people are feeling incredible financial pain right now. well, clearly we need reform at the federal reserve. clearly we need individuals who are appointed in the name of diversity. and when i say diversity, i mean intellectual diversity. i mean, true sources of pushback on these policies that have proven to be such failures over the years. and you know, the idea of,
let's keep the continuity of j power going we, we also have to, i'm going to push back a tiny bit though, because j. powell does have ultimate vito authority in the same manner as the president of the united states in the sense that he is going to continue to push back. i think, against the fed being mandated to control climate control for climate control. that's not something that the fed has the tools to do, i think the j pow wow. we'll stop, we'll draw the line at negative interest rates or having a central digital currency. so what i'm trying to say is it could have been worse. you could have appointed, he biting kind of a point in somebody who was even more devilish and would have made the progressive happy, but probably not been confirmed at the senate, but clearly, clearly we're so far past. do i read a whole book about it? we're so far past due when it comes to fed reforms. it's an embarrassment as a nation to have an entity constantly trying to get to take away the value of the u . s. dollar. there are accomplishing it alongside fiscal stimulus gone wild,
and it's hurting those who need inflation to come down the most. yeah, absolutely. and obviously what you're referring to when you're talking about the, the climate change issue, a lot of democrats, or at least some of them were angry about this re non nation of drone power because they want him to step in and do that. they think this is a mandate of the fed is actually control climate change issues. but let's ask you this though, because the fed that what they are doing, aside from what they're not doing, what they are doing, right, slashing interest rates to 0. that's obviously happened over a period of the last couple of years, purchasing trillions with a t trillions of dollars a government debt, offering the buy trillions of dollars more in loans and other assets to backstop credit markets. there are many people and i'll just be be transparent. here, including myself, who believe that the fed is destroying the economy and believe that the fed is destroying the value of the us dollar. is there any positive side right now to any of these policies? i think, you know, in the, in the, in the long term look in the long term we're all dead. right. but also in the
longer term, rome fell in the longer term. the british pound, sterling fell. and if we continue to do this, if we continue to facilitate as a nation, to basically back fed policy, that creates zombie corporations. they couldn't even cover their interest expense if interest rates were even remotely normal level, instead of at the 0 bound where they are. if we were only able to get rid of the dead would in the system, then we would be a much more productive nation going forward. and we wouldn't be at, at such a risky, vulnerable point in world history. so i think we have to, to keep in mind the damage that the federal reserves policies since 2008, when they 1st went into and when they 1st took interest rates to that 0 pound when they 1st started buying now up to 8 trillion and more dollars of us securities to blow their balance sheet, these policies will eventually threaten the stability of the u. s. economy. and i
think that that needs to be addressed and recognized. yeah, absolutely. in the future, we're all dead. maybe in the future, we're all broke as well. but stand by daniel, because i want to bring into this conversation, or tabio, emergency, the ceo of openness, l. c, and our tabio at a time when the new seems to send any kind of news. right. seems to send the stock market into a tailspin. i have no doubt the wall street probably wanted to hear that nothing's changed. in fact, they're the ones who benefit the most. i would think from the re nomination of j pal to a 2nd term for the markets. is this good for market to certainly seem to be today. i think it's very good for marcus, at least in the short mediums have such a power has been a fantastic support for the market. i think he's on for then move the market. any fed chairman in history. i mean, he's been actually sensational terms, driving marcus up look, all the programs to put into place all the monitor policies to kids. so he said we invented on the fly. it was, it was absolutely storing it just when i thought he had run out of trixie, come and came out with a new program buying new kinds of securities and bonds like that. so. absolutely.
so he's been fantastic for markets and of course mom is very, very happy to see him. the question is, how good is this in the medium term now? and it's looking like he's reached the end of the road in his bag of tricks, i think. yeah, my expectation nazario is that if any one group in the world we're talking about here, right, is excited about this idea of more of the same or what president biden referred to in his statement as economic stability and success. it would be wall street, right? because after all, the fence policies, cheap money, abundant cheap money. and if your world is to take on debt and to leverage debt, this is kind of been a dream scenario. and again, we see that with markets up today, they're very happy about it. but how does the fed when wall street off of its increasing dependence on these policies without ultimately causing a crash? i don't think it does. i don't think there's a way to do that effectively. so i think what's going to happen is the going to start to win wall street. and when that happens, people going to run for the door and we're going to run for the door the same time
. so we're going to see a quite rapid crash once that happens when that occurs. but i think we've seen in terms the biden instruction, some of the comments that maintenance in recent days in recent weeks is probably was in the offering for us because inflation is becoming enormous political liability for the administration. and going to have to do something about we have to show that can be taking a hard line on that. and we've heard themselves make noises about looking at corporations. price gouging and increasing prices too much, and the oil companies are forcing the price of oil too. i. i think the getting very, very close to stop say, in certain sectors least oil. i think the 1st one, the look at is actually pushing some of the price control into place and doing that . and that's can be very, very bad for corporations and very difficult profitable. if you're looking at a price control racing. i expect that to start with oil and then expand out to other areas in the coming months. yeah, and that's going to be interesting to watch how that plays out. danielle, same question to you or give you the last word here. fed policies. as i mentioned, they feel like they're creating a level of complete dependency. markets can't be sustained without intervention in
the future and everyone's afraid of the pain. every, every addict is afraid of the pain of cutting out dependency because there is very real pain. last word here. absolutely, i mean all you have to do do is look back to the durham house other 1st year in office 2018. so we'll have to wonder what 2022 looks like going forward. but in 2018 when the fed did try to normalize policy in 2018, when the fed did attempt to shrink its balance sheet. boy markets did not like it one bit and it forced within a year's time at force. what we now know as the power pivot in january of 2019 and markets have been going straight up ever since then. outside of the covert flash recession for 2 months, recession and it's actually proven to be the best thing that's ever happened to the stock market, given the violent rally that we've seen ever since then. is our investors addicted to fed liquidity? absolutely, it will not be pretty if they truly tried to normalize monetary policy for yvette
inside or daniel dean martino booth october. we're in the open with. we'll see. thank you both for all of that. thank you. all prices were up on monday, but still down overall from the past few weeks, there is a lot of pressure on the oil market right now. things to rising cove in 1000 cases in europe. and then there's potential release of japanese in indian oil reserves. in fact, prices of the brand and west us west texas intermediate w t i crude benchmarks, they fill more than a dollar and early trading, hitting their lowest levels since october 1st. so that is good news for oil prices . hopefully it translates into lower gas prices at the pump. remember oil prices, they're all driven by speculation. and one way to get prices down is to create supply, but not just create supply. have a plan for abundant oil. i want to talk to edwards about this former chairman of the permian basin petroleum association. kirk, thanks for being here. a been thanks for having made it. absolutely. so let's run
through these numbers. just the news alone that the u. s. may open up the strategic petroleum reserves and the idea that indian japan might do the same. i'm really not sure that can happen in japan because under law, there it prevents using strategic reserves to lower prices. but again, they at least the appearance, right, of more supply should be causing prices to drop. correct? well it's, it's interesting been because you've got 700000000 barrels of oil in the strategic petroleum reserve. and we probably use 18 to 20000000 barrels a day to day here in the united states. so as you would say, quite a dumping of oil from the s p r to a fair process and they can't get it out that fast. it may be 2000000 barrels a day. they can get it out. what was your it can only go to a certain number of pharmacy. can't go to the east coast. you can't go to the west coast. so to me it's all smoke and mirrors. the strategic petroleum reserve is supposed to be there for our nation in crisis or catastrophic climate. of that, that might happen, which is not what's going on around,
or there's plenty of oil in the world. and you shouldn't be trying to affect the price a politically. what the in the league of us are using right now in the senate in the house? well, i that i think that's a really important point, right. the fact that this is not an emergency situation, other than an emergency of the administration's creation. we'll talk about that in a 2nd, but on friday, just as an example, right, the white house, once again, pressing opec and opec plus to increase production. fascinating, because many critics would say that the u. s. just 2 years ago was actually competing with opec, not begging opec to do more. why can't we get back to that situation and is that entirely, again, a crisis of our own making. when you see us in the permian basin, they're going to produce $4900000.00 barrels a day in the permian, which will be record in the month of december coming out. that's incredible that we could do this in this country, but yeah, we have our administration look into overseas, asking them increase of production,
but not put people back to work and get good clean. and that's what's really important here is the cleanliness of oil that we produce here in the state versus coming out of opec or bruship. we're especially canada. and we're, we're importing 4000000 barrels a day, easily as the dirtiest all in the world, from how much they have to plan to burn their tar sands up there. so we should be putting people back to work here in the permian basin and mexico and go from mexico to because that's what's important for this country to get jobs in the keep people work here working here in our country. yeah, you mentioned the gulf of mexico. let's talk about that for a minute because it was immediately after taking office. president biden announced the temporary pause on the new oil and gas leasing on federal lands and waters. but then just a couple of days ago, his administration quietly put 80000000 acres of the gulf of mexico. it's an area by the way, twice the size of florida on the auction block. it happened on wednesday, energy companies led by exxon mobil. they place bids, i think on just total of about $1700000.00 acres. so the question is,
this is president biden kind of forced to stealthily drop prices by doing this without actually saying how he's doing it. so he doesn't get criticism from the left in this party. well again, i think he ran on the premise that he was going to ban all the roaming and get rid of all the oil. and as a country, we can't do that. you saw in britain, in the north sea, all the wind died down for a couple of weeks there. and then everybody went into electricity crisis. we can have that happen in our country. we need been all for some energy we need to when we need to. so we need the power this out there, but we've got to have only gas until we can transition to something else in the future. but for right now, we can cut off gas in this country, and i'm a christian, really of the, by the administration looking back favorably on oil and gas. this is probably the 1st step that we've seen is at least going on. but we probably some more. we don't, we asking united states producer to produce this overhead and put people back to
work. and we've got plenty of what we could drill in the permian that the code has a nice meal. and everyone else in here in the united states, if the administration will let us do. but the administration's not right now you, you pointed out that they're kind of looking back. but my, my question i gave you one more on this is that it's the administration to whispering back that, hey, let's go back to fossil fuels and get some more, you know, pumped because we needed to lower gas prices. it feels like if you, if you just make some noise about this and say we're taking a hard stand gas prices are too high and we're going to fix this problem. the prices would automatically drop to some extent if you'd actually take action. because so much of it's based on speculation. i give you the last word. well, again, ok in open, close you. you do realize like control the world or price and so whatever their actions are right now and also been were see, coven, joan, back up in europe. so that's creating a softening effect of demand that's going to take place over there in other parts
of the world. and until we can get everybody on the same flying feel, knowing how much energy we need a century. it's a very interesting balancing act that we have to have in all parts of the world. so i'm very optimistic that we're going to have good production in united states. and i think administration is thing we've got to have. we've got to have these jobs going forward, and i'm hoping this is just again the start, the some under this administration, kirk edwards, formerly of the permian basin petroleum association. thanks so much. thank you. well, i'm now for a quick break, but when we come back, we're going to take you back to the british isles, where trace engine continue between the united kingdom and the european union. we'll talk about it with hillary ford, which are the british american business association. and as we go to break here, the number sent, the quote was
oh, is your media a reflection of reality? in the world transformed what will make you feel safe, isolation, whole community? are you going the right way or are you being led to some with direct? what is true? walk this way. in the world corrupted, you need to descend a join us in the depths or remain in the shallows.
oh yeah, we're still an al, sabotage now or in san salvador. it's done all popping off here. the country is that the big one is legal. tanner's transformative country, transforming the people, transforming the culture and transforming the region. oh my god. so what we've got to do is identify the threats that we have. it's crazy confrontation, let it be an arms race is on a very dramatic development. only personally and getting to resist. i don't see how that strategy will be successful, very difficult, time time to sit down and talk with
well, go back. if you watch the show regularly than you probably know more about briggs than most of your friends, right? maybe all of them. you also know that the u. k broke away from the e. u in an act of self determination. and you know that at times it's been messy, which you probably don't know, but you're about to is about northern ireland. it's a british province that shares a land border with the e. u. member of the republic of ireland and post brags it, there been a lot of issues between northern ireland in the u. but now the european union says there has been progress meetings to fix those issues with again northern ireland. so one of those issues who benefits claimant hillary toward which board member with the british american business association, hillary good to have you here? pleasure back to. so let's start with that kind of the biggest issue here, right? the trade issues between the you and northern ireland. what exactly are they? everything of the trade issues cover everything to do with goods and products and services. and there are, there are checks and border checks and this is a huge issue. i'm just going to give you 3 small examples,
which are totally an awfully indicative of the big picture. one. there is a welsh company that exports lobsters. and when those loves does have to go to spain, the e, you actually will stop them at the border, including that you border that is that border now in the irish, see because the color of the ink from the inspectors was the wrong color and hold them up for weeks, well, lots of can't wait for weeks till they get to spain, and this is what the e was done by imposing this border. second example was that donuts that have cream in them. they have to prove that the insides on sausages before they get into the e u, across that irish border. and the 3rd one is that the queen's jibley is coming up next year and an island just like in the u. k. they want to plant oak trees to the jubilee, who now the soil going into northern ireland has to be proven that it's not contaminated . so what do these 3 small issues indicate been they indicate that a lot of these trade issues are to do with the excessive controls and executive regulations that the you has impose. and that was the very reason for breaks it. it
was these bureaucratic burdens that were imposed on businesses. yeah, exactly. by the way, how do you, how do you prove that the donor has cream in that sausage right there to curry, maybe cut one open, but there's, there's a bullying that's happening here is exactly right. minutia, it's pick how you. yeah. okay. so then when we think about this original briggs, it agreement, right. deal between the u. k. in the you to say we're going to officially separate of us. there is something called an emergency break. yeah. that was built specifically for this purpose, right? to say, if you, basically, if you're poking at us, if you're creating problems, if you want to have a trade war, we can have a trade war, right? well, it was, it was actually, it's unilateral. it's on both side, guy to side can call it and what it's called is article 16 article 16 is supposed to be in terms of any excessive disruption of social life, business life. anything that affects the community and this has been affecting the community is been adversely affecting businesses, thus it's affecting protect,
affecting particularly medicines, going into northern ireland. the pharmaceutical checks are abhorrent and particularly those with diabetes and haunt issues. the pharmaceuticals are being checked to such an extent that does excessive delays, and that's one of the main sticking points and trade issues. and so again this, this comes back to this idea that briggs, it happened in the 1st place because the u. k said, we don't like this bureaucratic bureaus idea, any buttons, right? and so instead will just make trade deals and we'll operate on our own. we don't need yes, unless trust actually the voluntary secretary, now foreign secretary, she implemented 68 tray deals with the rest of the world. so there's a lot of what a lot of people saying is let's just pivot and turn to the rest of the world. let's pivot to asia, let's pick patient pivot to indo asia. let's pivot the pacific and that's what it basically being put forward rather than dealing with you. and then there's the other thing was you people saying, which is why put the border in france, put the border at the french border? not, not. and not in ireland. yes. right. and you mentioned about the irish c. right?
so that's also problematic because in this i guess scenario in which you're trying to fix it, you would essentially be saying then, so let's not send the lobsters to spain will send them someplace else. right. and work out the other place. yeah. other places in the world are to lutely, but of course the issue is an issue remains that southern island, the republic of allan did vote to remain. and that's why there's this border now, which means that you really stopped at that bordering in island. and the debate about crossing back and forth over that border, even though in the past, it's never been an issue still an issue now christmas, for example, people passing across the board to visit relatives and friends. they would have to have pet passports to even cross. now what is being called as is it being called as actually this is not the full fontanello. this is skim milk legislation because it's only been adjusted full fat. in other words, all of these regulations, the checks are supposed to go into effect in january and what both sides are trying to avoid it. all of those checks going into effect in january. sounds like a mess. hillary ford, which with the british american business association,
you made a clear thank you so much. tasha finally, today i want to talk about my 2nd favorite country in the world. el salvador. yes. the soon to be bitcoin capital of the world. why soon to be. because el salvador, not only has made bitcoin legal tender, but the country is now planning to construct something called bitcoin city. oh yes . bitcoin city will be constructed near a volcano. it will be funded by you guessed it, bitcoin. the country president announce saturday, the bitcoin city will have residential and commercial area services, entertainment restaurants, and an airport construction in the southeastern part of the city. country, excuse me, will begin in 2022. the city will have no taxes except from of that tax of value added tax love them hate them, doesn't matter because regardless of how you feel, el salvador is experimenting with concepts that so many people in the austrian economic encrypt currency space have only theorized for decades and el salvador is now testing those theories. it's a beautiful thing. well,
that's it for this time you can catch boom bust on demand on the portable tv app, which is available on smartphones and tablets. you can get if you google play or the apple app store by searching portable tv. portable tv can also be downloaded on the smart sung samsung, smart tvs, excuse me, and roku devices. or you can check it out at portable dot tv. and we'll see about here next time. ah oh is you'll need a reflection of reality in the world transformed what will make you feel safe? isolation, whole community. are you going the right way or are you being that somewhere? direct? what is true? what is faith?
in the world corrupted, you need to descend a join us in the depths or remain in the shallows. join me every thursday on the alex, simon, sure. but i'll be speaking to guess when the world of politics spoke. business i'm show business. i'll see you then. oh, driven by dreamer shapes bankers, those with
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