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tv   Boom Bust  RT  December 13, 2021 9:30pm-10:00pm EST

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i in the world corrupted. you need to descend a join us in the depths or remain in the shallows. ah ah ah ah,
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with this is been by thorn business or you can't afford to miss. i'm rachel blevins in washington coming out and we need to come together strongly to stand off too aggressive. the day 7 alliance once again makes russia and china the main topic of their latest meeting. but what can we expect from the massive consequences they are now threatening? we'll discuss what inflation is rising out as fast as rate in nearly 40 years. handling increase in wages hasn't come close to catching up. we'll take a look at the impact on the u. s. economy with the holiday season right around the corner. then do you pay is economy comes to a standstill as the construction sector. take the hit and those tensions over breakfast continue to take a toll. we'll look into whether that fishing more with hell be coming for an
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anytime soon. we have a lot to cover. so let's get started. we leave the program with the latest statement from the group of 7, as the alliance came together over the weekend to condemn what they call russia. the military build up on the border with ukraine, along with continue talks on why china could have such a massive economic threat against the rest of the world. now, in regards to the statement on russia, british foreign secretary lives trust describes the meeting by saying the g 7 members are showing a united front. and what we've shown this weekend is world's largest economies, all united. we sent a powerful signal to our adversary's and our allies. we've been clear. the jedi incursion by russia into ukraine would have massive consequences for which there would be a severe cost. yes, once again, even after russia has repeatedly deny that it plans to invade ukraine and president
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putin and biden spoke for 2 hours last week. the g 7 countries continue to focus their attention on russia and china, which may be the reason that the leaders of those 2 countries have announced they will meet virtually on wednesday for the 1st time since june. so joining me now to discuss the latest and investigative journalist benz want, now been, let's start with this plan meeting between the leaders from russia and china this week. what are we expecting to come out of it and how did it come to be? well i think it comes to read because of exactly what you just said. you have the g 7 which has been gathering, they've been talking. this happened back in the summer, as you mentioned in june, happening again now the g 7 needs and they exclude to countries, right? they exclude russia and they exclude china. china is not allowed to be a part of this. they're not part of the g 7. russia was part of the g 8 before they were kicked out in 2014 because of issues with the ukraine and crimea. and so now it's the g 7. and so essentially what you have are these 2 countries who say,
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listen, we're being talked about at the g 7 more than any other nation. so let's talk to each other. what i, i'm betting this happening though. i'm not privy to what whatever's gonna be on that phone call is, is a, an agreement on pushing back against some of these countries. western europe, the united states, and nato countries that are essentially viewing russia as is hostile threat to ukraine and viewing china as an economic threat to the rest of the world. and the reality is, is that russia and china have a lot in common in terms of common interest, common interest in removing the dollar as the world's reserve currency and common interest in their ability to help each other, especially when it comes to issues like energy where russia has an amazing ability to help solve an energy crisis that china is going through right now. right. and it is interesting to see how these meetings have almost turned into the regular russia, china meeting, because that's just about all they talk about. now on the topic of the latest statement that we did get from the g 7. they say there will be, quote, unquote, massive consequences if you crane is attacked by russia,
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do we know what that may look like or even what would constitute an attack in that case? well, i, well that's a really good question. the 2nd part of the question, what constitutes an attack? if you listen to what the language has being used at all, seems to be that ukraine has this, you know, right to its own territory. how important is the territory as them for russia to not either militarily, cross into the country or try to take any of that land from them? again, there's no indication right now russia keep saying that they have no interest in doing this. the nato keep saying that russia wants to attack ukraine plans to attack the brain, and that it could happen as early as the 1st part of next year. they would attack ukraine. listen, i don't have a crystal ball so the russians might be lying. but right now, it seems that there is no reason for russia to attack ukraine. certainly, the one thing that russia keep saying is that if you crave work to become a part of nato, that would be crossing a red line. so foreign nato is, has not agreed to make ukraine part of the nato alliance. so that's part of it. and
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then the other part of it is whether or not missiles would be placed in ukraine. specifically, you know, missiles that could reach moscow in a short amount of time, including including hypersonic missiles. so, you know, there's, there's ratcheting up on both sides in terms of rhetoric. the question is, where are the actions coming from? right now, there seem to be more actions on the part of nato than they're due on the part of russia. i guess it remains to be seen what actually takes place next year. yes, certainly, and i know a lot of times we were drawn sort of that parallel between what if this was happening on the us border with mexico? what if it was china that was grinding millions of dollars over to mexico and really ramping this up? how would the united states be reacting? think we all know exactly how that would play out. but another part of this that the g 7 was talking about where they were expressing concerns, specifically about china and about what they called coercive economic policies from beijing. now it seems like this is an ongoing theme from the latest g 7 meetings. are they actually doing anything about it? or they just sitting around and complaining about it once again?
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well, it's a lot of complaining more than anything else because the question is, how do you deal with china? one of the issues on the economic front is that, in most of what western europe depends on most of what the united states depends on, in terms of products. as you know, rachel is created in china. it's built in china and therefore getting away from that. it's very difficult to do that doesn't mean the united states shouldn't be doing that. but if you look at the policies of the us right now, what are the actual policies in place to make us less dependent on china? that doesn't seem to be happening on virtually any level at all. so that's a huge problem. and then the other problem, i think that you face when you do talk about this issue is, is invariably the fact that when it comes to china, china is taking a lot of steps right now to be couple itself from dependency on the united states, especially on u. s. investors, the us stock market valuation for companies, the expansion of chinese companies into western markets while still allowing western companies to come into china. and so the reason for that, i think is because they're continuing to create a corporate dependency on china as opposed to just manufacturing dependency. if you
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create a corporate dependency where major corporations have huge investments in china, they will apply a lot of pressure on the government and the military to not strike china or not bring about any kind of retaliatory tariffs on china. because their bottom line as companies becomes dependent on that chinese market and that seems to be happening at an increasing pace. yeah, certainly a lot of say here, and it is notable to see how those words differ from the actions from bus bends on . thank you for your time and insight. thank and staying on the topic of tensions with russia, germany's new government is now responsible for certifying than northridge to pipeline while trying to keep their western allies happy. chancellor, olaf short has been in office for less than a week now, but he used to visit with leaders and polen this weekend to assure his neighbors that he will use his influence to make sure russia extends its energy contracts with ukraine. meanwhile, germany's new foreign minister noted that the pipeline continues to be delayed
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because it needs approval from the country's federal network agency, as well as the commission. now that could take up to 8 months, which gives the new german government a little bit of breathing room there. but it doesn't do much for the ongoing energy crunch in the region where electricity prices hit a record high last week. as temperature is dropped, the block is in desperate need of all of the natural gas it can get right now, a growing crisis that could be ease when the north stream to pipeline is able to double at supplies coming from russia. and to say that inflation continues to skyrocket here in the united states would be an understatement. as the latest data from the labor department shows, prices have increased at their fastest rate since $982.00. but for many employees across the country, their annual raises won't include 7 percent just to account for the cost of inflation. and that's the case of google, where executives were specifically asked about their plans to handle the soaring
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cost of living in this country. now, google's vice president of compensation said there are no plans for a company wide pay increase, but he said they are aware of increasing prices and plan to compensate their employees through bonuses based on their work. but even with more companies offering higher wages as a grapple with an ongoing labor shortage, it's the impact of inflation that is leaving many americans with larger paychecks, but less spending power as they find themselves paying more just to survive. so joining me now to discuss our boom, the host, the i and john quotes, dean of the miami herbert business school. it's great to have you both on the show today, dean, cultural, start with you. what you make of the current situation. we're in, we're businesses are paying more to higher, but that increase is getting cancelled out by the increased cost of living. rachel, it's the case, but in november versus october, real alley wages. net of inflation fell. 0.4 percent.
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reflecting what you said, that wage price increases are simply not keeping pace with price inflation at the gas pump, et cetera. what we're seeing is a large number of workforces in the united states, taking advantage of the supply of labor shortage to go on strike. there is a large number of strikes on the in the u. s. at this time, and the bottom. and here is that we're just not going to be able to see a level of wage inflation. that is gonna keep pace with this current price inflation. and of course, companies like google don't want to respond precipitously because after all, they've been hearing the fed say 4 months that this inflation is only temporary. so why lock in permanent wage increases in response to watts claim to be temporary,
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retail price inflation based on supply chain challenging challenges? yeah, that's a great point. if you've been listening to the fed, you've been expecting all of this to just kind of go away or dissipate in the months to come. now christy, at the same time we have seen businesses across the board and they will increase prices in order to keep up with the rising cost of both goods and labor. so what is the long term impact on those that survived locked downs in 2020 and now we're struggling to survive. once again, for businesses survive lockdown, it seems that this battle with inflation is their next challenge to be able to survive this price hike, readjustment period. and there's plenty of repercussion for businesses because most small business owners, they don't have sticky products. what that means is that it's not something like a cell phone plan or google storage, something that's sticky and forces repeat. customer buys most for businesses, operate off of discretionary income and as the price of goods and services increase
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. so portion of discretionary income, wallet shrinks and gets smaller. so other things will be prioritized ahead of discretionary spending, not to mention hiking the prices of these discretionary goods will not benefit them as when previous customers look to alternative cheaper. com. that's when businesses will come. you, the scales will benefit, but not the cheaper mom and pop retailers. so apparel cars, for example, were notably higher november rising 1.3 percent and the 5 percent for the year ahead of the holiday shopping season. restaurant prices. i've also over 5 percent of the last 12 months, which is the largest 12 month increase in 1982. and so one of my very good friends who runs and apparel business, she is reported that on top of all these pricing issues, the new increases and minimum wage has been brewed. also, not only are companies forced to pay more for workers, they're also being squeezed for inflation, increase manufacturing costs to. so businesses are literally being squeezed from both and, and this is totally not sustainable. and with her business is forced her. i'm
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probably many other businesses to relocate. we allocate and move business away from the u. s. for the us in the end will lose many independent businesses as this continues. certainly as a lot at stake here, especially when it comes to those businesses that are trying to find long term strategies to do with all of this because they've learned it's not transitory now, dean quality, when we're talking about inflation, as christy mentioned it's, it is at its highest point in nearly 40 years in the last year alone, we've seen that gases up nearly 60 percent energy prices are up over 33 percent. and the cost of food in groceries is up over 6 percent. so what are some of the long term impact on the u. s. economy, and i know you mentioned the fed earlier, is there anything that they can and should be doing right now? well, certainly the fed should respond by increasing the tapering events asset program and the widespread belief as that starting in january. the fed will double,
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it's tapering to $30000000000.00 a month. and that'll be a good thing that'll set up the opportunity when that asset program ends early in the spring. that'll set up the opportunity for potentially the fed to consider raising interest rates. now the problem with the raising of interest rate says it's a very delicate issue because any precipitous raising of the interest rates will of course depress asset prices and cause problems for those small businesses that christy referred to. that have taken out loans, potentially resulting in bankruptcy. so the fed having, having, i think, been a little bit slow off the mark to quench the inflation that was
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clearly evident. 6 or more months ago is now faced with the dilemma of whether or not to increase interest rates at a pace to dampen inflation. that could result in as significant blow back in terms of unemployment asset price declines and bankruptcy. yeah, they certainly seem to be in iraq in between iraq in a hard place, no matter what they do now. kristi, when it comes to what the fed could do, i mean, we know that right now, inflation is more than triple their 2 percent target, even if they do move to taper asset purchases faster and even if they do move to raise interest rates earlier, do you see that having much of an impact on what we're facing right now. well, anything the fed does will not have an immediate effect. any effect from tapering is going to be very gradual. so the 1st step is to obviously reduce the amount of bonds they are buying each month. and at this rate,
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they should be done making purchases by the middle of 2022. what this will mean is that there will be less money floating around less, but still a lot, considering they literally pumped in trillions of dollars already over the past year, year and a half. so 40 percent of us dollars in existence or printed in the last 12 months. so think about that. that's a tremendously inflated supply. so it's no wonder that we're facing this ramp and inflation problem right now. yeah, and truly the question remains to be seen as when it goes down. and if it ever gets to the point of transitory, like the fact claim that it would be from the very beginning team john quality of miami, herbert business school and boom bus. kristi, i thank you both for your time and insight. thank you. thank you. and time now for a quick break, the only come back, we'll take a look at the british economy performance, our supply chain pressures and trade issues persist. and as we go to break here, the numbers at the clothes with
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the west relations with russia or record lows. and there is no reason to believe this will change any time soon, however, is a grand bar impossible as some of suggesting also as a bait of julianna's song. being scientific knowledge has never been so readily available to everyone across the globe, but overwhelmed by information. can we distinguish the real science from the one being imposed upon us? we're living in a world where there are many people who have a vested interest in finding information, finding scientific evidence, and discredited. even the notion that science could provide the truth about the natural world in the pursuit of business goals and large corporations. a challenge
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strongly by scientific evidence if you're emotionally invested and free markets, them climate change is a serious emotional threat because dealing with that means we have to change our approach to business industries or on the war bond attempting to debunk legitimate science by producing the evidence it's science writing science. that's how ignorant says manufacture their attention only seeking to the rail. buying this rolling, using cy against the shell. i look forward to talking to you all. that technology should work for people. a robot must obey the orders given by human beings, except where such order that conflict with the 1st law show your identification. we should be very careful about our professional intelligence. the point obviously is to great trust, rather than fear a very job with artificial intelligence. real,
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somebody with a robot must protect its own existence with a with welcome back from soaring and place it into an ongoing labor shortage. the u. k. sides growth flow to nearly a standstill in october. has a g. d. p grew by just point one percent, which was notably less than the point 4 percent that was expected. the world's 5th largest economy is still struggling to get back to pre pandemic levels. while that
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landmark was achieved by the services sector in october, the office for national statistics found that the construction sector saw it's a largest decline since april 2020 was supply shortages, taking a toll on the countries recovery. this all comes as the bank of england, which previously signaled it would become the 1st major central bank to start raising interest rates decides on whether it will carry on with that plan or wait until the beginning of next year. and joining me now to discuss the latest is hillary for which for a member of the british american business association. and president of straw mark, be great, have you on the show today. now, when it comes to the bank of england decision, what all is at stake here, and do you see them actually moving forward with an interest rate type or pleasure to be back with you again, rachel? and what they're going to do is they're going to look at a lumber of data points. so what we could do is we could look at what a number of economists, the thing i'm sarah shell, she's invest tag is agreeing with rory mcqueen. and he's with a national institute for economic and social research as well as jon a,
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jonathan gillingham and he's at p w. c. the economic expert saying they really think that most of the issues are due to the supply chain problems and the fundamental underpinnings of the economy in the u. k. on any worse than they have been and the projections are in line. but i do think what they're going to take into account of things like video is just come out with the economic optimism study that they always deliver. and that is that it's highest rate, it's been and it's been out for the last 2 months. so business optimism is off. one of the prove points of that about that is that the temporary employment agencies are booming in the u. k. so the labor demand is up, holiday bookings are up in the u. k. so obviously the consumer is very optimistic. the supply chain issues have also caused a lot of consumer purchases because people are concerned they won't be able to get those christmas holiday gifts prior to the holidays. so that's also what's kept the retail sector, boyd. so my bet is again,
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look at the experts. i think the probably the bank of in england will hold steady because what they don't want to do is they don't want to court they, they don't want to, i because inflation and they don't want to send me the economy. so will they raise them? that's kind of highly doubtful, given the statistics that you just raised, in addition to the consumer confidence, right. so they may back off a little bit. i know there was so much it play there and yeah, right. and another thing here is the fact that, you know, we're not quite out of the way just whenever it comes to cobit 19. and of course we've heard some different messages from prime minister boars. johnson, he was apologizing after some of his staff members were caught. joking about a christmas party at the height of lockdown last year. yeah. and then it's the same time, he was also talking about really warning about a title way, the infections from the latest cobra varian, even though we know that so far the symptoms have been more on the mild side. are there still concerns about a possible locked down going across the u. k. really? well, you're right, rachel, you're totally right about that was actually allegro, stratton was his practice press secretary, who was caught,
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actually giggling on camera deflecting, went off the questions about that notorious. now christmas party and it's actually really interesting, i could make the point that is amazing how politicians can be brought down by the simplest things you know, the savings and loan scandal and the keating scandal and the u. s. was dramatic and actually affected the u. s. economy drastically, but it was too complex for the consumer to understand. whereas odyssey, obviously monica lewinsky, everybody can understand and that's what broken down. so they do say that obviously johnson's approval ratings are in the gutter in the u. k. so now to your point, i do think this is going to affect people's confidence in his plan be that he's just issued. and so yes, there is speculation that that's going to slow the economy down and actually interesting that you should raise that point because that was in p w. c's projection, i just mentioned jonathan gilling, i'm not, she mentioned that that if oh, micron is taken seriously. this could slow down the economy. i will say there's great pessimism across the u. k right now because of that christmas party,
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not so much that they had a christmas party, but they knew it wasn't as frightening nor as serious as they purported to be. the same thing here in the u. s. nancy pelosi having i had done in san francisco, gavin newsom, going to a close dinner party. the french laundry in california. the politicians know that it's not so scary, know that it's not so di, but they're empowered and they want to remain there. wanted to raise a lot of questions for the average consumer, the average resume whenever you have politicians carrying on with their normal lives or they're being told to stay and like down. absolutely, yes. now we've got about a minute left. i do want to bring up these ongoing fishing more between france and the u. k. it sounds like it may be cooling down a little bit for instance saying that they've got 93 percent of the fishing. like right, is what they were supposed to have under the brakes. it agreement. what's the latest? yes. you're right. fishing was no more. i think the both sides are pretty backed down. the you had a should, a shouldn't ultimate him in terms of being last friday. and they actually even said, literally stated that if you could just give us a token, a few more licenses and the u. k. did. but i think the contention has been that
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these french fishermen need to demonstrate that they have fished in those waters. historically the u. k has also some gps data because a lot of them don't have the documentation that they should have had, you know, whoa, between those that don't have the right kind of paperwork that they should have had in the 1st place. but yes, the percentage has been increased and it's always been in the ninety's. so it's exactly we're basically should be. we'll continue to fall out from fishing or saucers, words to political scandals and all of your hillary for it would thank you so much, rachel, always and finally, with trade disputes and supply chain issues slamming not just the united kingdom but the entire world right now. some are looking for more sure things in their investment. well, many of turn to the new frontier of crypto currencies or classic routes like metals as their new haven. a new report shows us that not everything that glitters is gold . well, that's according to a new study from the higher school of economics in russia. it says that lego have shown to be a safer investment. the most of the tried and true methods of the path that
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a found that old lego sets on the secondary market typically get a boost of around love, 11 percent each year, topping jewelry, gold and wine, and a whole range of other investments. now the popular danish building toys are a classic for kids around the globe. so now your kids favorite toys can also double as an investment set, who would have thought it gives a whole new meaning the whether or not you're going to get rid of the story that your kids get too old for them. well, that's it for this time you can catch boom bus on demand on the portable tv app available on smartphones and tablets through google play and the apple app store. by searching fordable tv fordable tv can also be downloaded on samsung, smart tv, and roku devices, or simply check it out at portable dot tv. well, see you next time. mm
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oh, right now there are 2000000000 people who are overweight or obese. it's profitable to sell food that is fatty 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. oh, that industry has been influencing very deeply. the medical and scientific establishment, what's driving the obesity epidemic? it's corporate. ah, ah,
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ah, ah, all central banks, all banks, small, unfair bible committees and verifiable centers of our arc run. some of them are very corrupt. some of them are extremely current here in el salvador, their money system is completely absence of any corruption because it's only dealing toward the pure monetary premium and truth of bitcoin. on top of that been rock of trip, you can build a fantastic country. the fantastic culture with,
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with the pentagon says it won't hold any one liable for a botched drone strike in cable that killed 10 civilians, including 7 children, a former u. s. military drone operator. brandon. brian's express to us, his frustration over the decision to see that nothing has changed, even when it's blatantly out in front of re one's face. how we operate and no one's being held accountable. like we've been talking about this for 10 years now. vladimir putin calls for immediate talks to stop further nato expansion towards russia's borders and a telephone conversation with british prime minister boris johnson. that's made ongoing speculation over the situation in ukraine and accusations against russia.


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