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tv   Boom Bust  RT  January 14, 2022 8:30pm-9:00pm EST

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china's trade surplus with the world's number one economy has been whiting over the last 2 years after narrowing during the trump administration in 2018 in 2019 it's that trade war. so let's go ahead and take a little deeper into all of this with boom, boom, co host chris d. i and john quality, the dean and the miami herbert business school. they both for being here. d quotes . i want to start with you on this. once the takeaway here from all these numbers, is this more about increase production out of china or nations elsewhere? just consuming more. thanks brand. on the demand side, china has done a very commendable job. since the start of coven, of clamping down hard on outbreaks of cove, it and doing its absolute best to maintain production and it's factories and flow through its ports. and the fact of the matter is that other parts of the world did not do as good a job in that regard. and so china has been able to maintain its position as
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factory to the world. in fact, very little supply chain relocation has occurred from china to other countries despite political efforts in that regard. and then on the demand side brand, you had millions of people around the world, including in the us, staying at home, instead of going out and spending money on experiences in the service sector, they were buying more goods to enjoy at home. whether those were automobiles, automobile components, i electronic components, home furnishings, and all of that product as opposed to service expenditure boosted demand. and that, of course, fueled further production demand and china. absolutely, that's an excellent explanation. exactly. what's going on there doing quotes? christy, we've been talking about strange supply chains for nearly 2 years. and there was a lot of talk about how this whole thing with miss managed state side. but there is
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also the point that the port of los angeles saw a record year of 4 cargo, a 13 percent increase from his previous record in 2018. so it is having more products coming in from china to elsewhere. actually have something to do with the issues that we actually saw with supply chain. i mean, it certainly contributed to the congestion that the poor, but you can't blame it entirely on increased imports. sure, an increase in imports mean more container ship with goods waiting to be loaded, but the fiasco l. a ports was caused by the entire breakdown and the supply chain, which runs much deeper than just an increased demand appetite for chinese goods. so it runs the lack of infrastructure and also the georgia workers at the ports to load, unload, move and ship cargo, and part of that was cold. it's fall as a made everyone short staff as people called him sick. and the other. a was just that the us courts are outdated. the ships today are double or triple the size of the ships of the the ports were used to think 1015 years ago. so they took longer
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to unload and you need more truck, more train, more warehouse stores to put the cargo. and that infrastructure problem cannot be solved over at night. and as i mentioned, many companies have now shifted back to chinese production to take advantage of the nation 0 cobit policies. so too many that's less disruptive than not knowing what new policies are. mandates will come down tomorrow, leaving companies family to adapt to the changing regulation. so china is coming out ahead in that respect as global dependence has now shifted back to china from places like se, asia that it's still recovering from their virus outbreak. and the cloud sure. now there's also another aspect of the whole china situation, which is that china has obviously face tensions with daily recently as well. but export to the nation still rose 24.2 percent, while import surge to 40 percent with the 2 sides actually in the are step agreement, which is the world's largest trek agreement. are these tensions more public facing than going to be actually economic yes,
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i think in this case brent economic realities trumping political posturing. and it's kind of analogous to president trump's relatively inconsequential efforts through the tariff war to rein china. trade in the latest figures clearly show that that was not done on a sustained basis. and likewise, the australian government has been subjected to considerable risk constraints by chinese efforts to limit bali imports, etc. but those have also not had the desired result. because in december, the australian positive trade surplus phase of a china was $5000000000.00. and the fact is that china needs iron war and it needs wheat from australia. there are not other alternative convenient sources of supply
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for these commodities. adjacent to the pacific rim. and china therefore needs these goods from australia, just as american consumers need product from china. that's a, that's a great point because that was exactly what i was going to make it the same thing. you see that exact saved that gotta be a chinese australia the same way, the u. s. needs china and going back to that trade more that the trump administration. was it the last time we saw the gap actually narrow christy was during the trump administration in 20182019. was there something to that trade where that actually worked in favor of the us or did it just mean we got less cause or life the product? i don't know, we can definitively say that clothing this trade god worked in favor. the us in trump's overly simplistic view, he said that immense since the u. s. is importing so much, it hurts, domestic job creation and growth at home. but inherently, a trade deficit is neither good nor bad. a trade deficit can be a sign of
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a strong economy and under certain conditions can actually reach a stronger economic growth or death at the running country in the future. so the reason why the u. s. can incur such a massive trade deficit is because it has credit and they can borrow money from foreign lenders. and that is basically a vote of confidence that that credit is another source of long term economic growth. and that was the case for the u. s. for several decades in the $1800.00 and south korea also for the same kind of productivity while running trade, that's in the 1980. so no strong trade surplus doesn't necessarily mean strong economic growth, because japan, for example, has run a significant trade surplus for most of the past decade. yet its economy has been stuck in a very low gear, for most of that time. germany as well runs a very strong trade surplus, but they only register mediocre growth. so the current situation is actually kind of funny because in the short term, trump close the trade gap a little bit. whether that's a good or bad thing that's subject to debates. but in the long term that he made,
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that trade got wider than ever because now as a result of trump, policies and strengths of the u. s. dollar, the stronger dollar means that us products are less competitive and foreign goods are cheaper. so whether it's from china or elsewhere, the u. s. is on pays for record and import, while exports will continue to decline on a global stage and digital quality have about 30 seconds. let me give you the final word here. what chris sees analysis is absolutely right in the among metrics of economic health of nations, a trade deficit. all surplus is not that significant an indicator. but i would say that president trump's efforts right or wrong from an economic point of view did magnify and bring into the for, for china. and that was a wake up call to many people in the united states who hadn't heard it before. so there are longer lasting ramifications from the trade war. ringback be on the
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economic impact. absolutely, boom bus. kristi i and dean john cloud. thank you both for your time. thank you. and global markets are mix for the week in the future. federal reserve policy continues to remain in focus as investors continue to keep an eye on the state of inflation, which is still running rampant in the world's largest economy. we start in russia where the mo, x is down for the week, 54 and a half percent stocks in the index to hit on thursday afternoon go shooters said there was no reason to renew talks with the us and nato after a summit in geneva earlier this week, friday wasn't any better as the nation's largest lenders. burbank fell more than 8 percent at one point on friday, leading to a sell off that saw the mo, excludes another one and a half percent. it's moved to asian markets where the shanghai composite is down falling, just shy of one and a half percent. the index fell nearly one percent on friday despite that positive data regarding its trade surplus hitting a new record high. meanwhile, we also saw chinese producer prices in december slow along with consumer prices in
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the nation. also reports indicate china will release oil from its national strategic oil reserve around the 1st of february. and hong kong we have a green arrow for the hung sign. earlier in the week, chinese property developers soon next side shares far more than 20 percent after now it's a plan to sell 452000000 new shares while getting hong kong plummeted nearly 60 percent after the firms that it would not be able to meet a series of obligations, but it was a tech stack rally on wednesday that held up the index with big names like 10th and ali baba thing significant gains. we have a red arrow for the ne k in japan following that tech surge on wednesday. the new k gain nearly 2 percent for the day on the back of investors soft back, but the run was short lived as the new k close out the week losing those gains as car companies in japan fell along with tech heavyweight sony. moving to india, the syntax is up this week by more than one and
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a half percent in text back to help to keep the same sex day in the read for the week or in the green. that is to say for the week the un issued a report this week. it expects the indian economy to grow by 6 and a half percent this year off the pace of the estimates of 8.4 percent in 2021. but there are concerns that a 3rd wave of cope in the nation could slow that growth in australia, the assets is down, but by just under one percent, moving into negative territory on friday as the bank in fact really took a hit. their tax tax also fell as investors moved in line with the nasdaq here in the united states and rise in cases of the i'm a crime variant in the nation are raising concerns of that flowing economic recovery. and that's the thing we see pretty much everywhere, and the all share in south africa, it's up for the week. the index did see significant gains throughout the week, but fell into friday as we've talked about is with a shop a few weeks for the all shares. investors continue to watch moves by the federal reserve, the world beg as forecast,
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the south african economy will grow by 2 point one percent this year, reverting back to pre pandemic levels. now let's go ahead and move to europe and be america. starting in london, the foot, the it's up by just over one percent on thursday. the puts the $100.00 close that nearly 2 year highs and financial stock lead the gain. but it did take some losses during fridays trading the world. the 5th largest economy grew by point 9 percent in november, taking a ged be g d p. that is to say, back to pre pandemic levels. the french captain, german deck, they're both down for the week. data shows europe's largest economy in germany, grew by 2.7 percent for 2021 after falling 4.6 percent and 2020. 1 thing that was pointed out here is that that ongoing semiconductor shorted, it's really taking a toll on the auto industry in germany. grants registered a new record of daily coban, 1900 factions this week. but that actually doesn't seem to be having a huge impact on the country's economic recovery as it remains resilient. let's
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move across the atlantic to brazil where the eco vest, but it's up for the week by more than 3 percent. retail sales in brazil were up in november just over a half a percent. again, a sharp spike in cases of code 900 in the nation are putting heavy pressure on the health care system. and analysts warned that it could weigh on brazil's recovery, moving north to mexico. we have another green arrow for the b, m. b strong commodity prices are propping up the market despite concerns about economic growth. in fact, bank of america on tuesday cut g d p forecast for 2022 from 2 boy, 5 percent to 1.5 percent over week domestic economic activity. here in the united states, the 3 major indices in the tao, the s and p 500 and tech heavy nasdaq. they're all down bags took a hit after the nation. number one, financial institution, j. p. morgan chase bank reported earnings exceeding estimates, but warned that there could be a key profit targets in the next few years, and they sent the entire sector down. now, as we've mentioned throughout the week,
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investors are concerned about the future of monetary policy in the u. s. as we see inflation search to nearly for decade, hiv friday was a rough day finished things out in canada. the toronto stock exchange is up by more than one percent. again, high commodities propped up the market as a whole, but a little volatility costing to drop on thursday. something keep an eye on here. economists are warning that can this heavy push towards green energy could make inflation even worse in the nation. and moving into next week, we're going to continue to keep an eye on the state of supply chains. those rising crisis talk so much about and any indication we may be getting from the federal reserve on the future of it's easy monetary policy and time. now for a quick greg, but when we come back, bitcoin advocate, jack dorothy is waiting further into the crypto currency sector as this firm is set to step into the world of mining over you all the latest that is going to break
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here, the number that the ah oh, emotions, medieval institutions and then i go like technology and the combination of these 3 very you could say historically distinct seeks fixes within our psycho physical makeup have rendered us pretty dangerous to ourselves to get to the planet
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while our officers are facing an increasingly dangerous environment, we are seeing a growing debate about so called warrior cops. the term that i've heard in the militarization of police. this is an admirable vehicle we acquired through the 1033 program, very free program with the government program that follows military property that is no longer use to local law enforcement with building an army over here. and i can't believe people. i see those thing an agency elder care can think of terrorism here because it's again a feeling that hey, you have to deal with our practice who you putting in a uniform cover. bands is a powerful thing and sometimes is like money in play tricks and people mind they think they've done the bad knows what was out the door. very bad. johns are coming . good news. yep. job security is the world desperately need with
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it really is happening here and i was on day also on the door and then to be known globally as the home of big coin city. and we're witnessing the demise of gold as a monetary. the monetization takes place. yes me, i didn't know where it's in fact will i lisa chip is only 9, but already 8 university students that away and rational. if academic i give it back to the breakfast that you don't like to teams and you must win. let's see. yep, you got the floss, there's dos padilla that he did and i'm local to able to hold on. yeah. but the next little only thing that i feel good. yes. so the loss of these multi point, younger terms, the he may come can only cost, he really shows control center program, use them now brochure, nebraska and of course with them when you're special, but i'm looking for yeah,
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my is what i said and i was thinking what the plan was to kinda push him was, and you mentioned in the something that evaluated for doug that he was not to colleague. i knew it with soon losing that needed to do to put a good lead you most of judge the wlan could be produced. teacher was also the reason is balise, we'll coordinate their welcome back, blocked egg seo. jack dorothy continues to forge ahead into the world of crypto currency saying in a tweet on thursday that the fintech firm is building an open bitcoin mining system block. formerly square is looking to continue to expand beyond its payments business and into new technologies like block chain. back in october, dorsey claimed that the company was looking into building a big coin mining system based on custom silicone,
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an open source for individuals and businesses. world wide security is now to discuss, sar, boom, us co host, an e mail and crypto analyst that it's a ben swan. and david to will. he is the ceo of pro chain capital. aah! david, i want to start with you on this one. would an open bitcoin mining system actually mean for the entire sector? what it means for the sector? well, let's 1st unpack what it is, which is i think jack dorsey wants to make that coin mining like the p. c. anyone can go ahead by mining greg? plug it in and go ahead and become a minor. jack dorsey's vision is decentralization, decentralization, decentralization. he does not, he's had a, an out right tiff with, with, and recent horwitz and with some other players in the sector regarding defy. he
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wants bitcoin to be the crypto currency of choice to control all of what is going to happen with respect to financial instruments. going forward, being digitize, what it means for this sector. couple things. first of all, i think be coin mining will become much more prolific. there will be a lot more of it, and that will go ahead and take some power away from the biggest players. because if there are a lot of fragmented players, that would be certainly together on an aggregate basis. they go ahead and have more computing power than the biggest out there. and i think that that's great for decentralization if that is the goal. the 2nd thing is probably the power and therefore the environmental effect backlash, that is going to happen from this. if the hash rate, if the computing power is now going to go sky, because jack dorsey is going to put
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a mining operation in every single outlet. there is in the country, there is going to be an incredible demand for power. and i think that dorsey is probably now going to put himself front and center when the, when the con, the congressional energy committee meets next week to discuss issues relating to power usage and the crypto currency industry. that's why i thought of that interesting story because when you read kind of the comments from the black team that's actually working on this, they made, made several different points. and obviously, you know, we talk about bitcoin mining companies where you get even a little bit more of that in the segment. but the fact is, is, you know, when you're starting a company, just because you believe in the technology, you get a small when you're somebody like block who was formerly square, you are huge and could actually put the money behind it. also something that's interesting about putting that computer in every home they mentioned, the idea of, you know, we want it to be quieter, which also to your point david might mean that they're actually going for maybe a little less power in those rigs. and so if they can white and out that the
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centralization put a rig in each, how him it usually vastly makes the network better. but maybe it doesn't take the toll that we would see. like you said, maybe it's like everybody who has a p. c going on, but i went ahead on another bitcoin related story on this though because it has continued to drop to $40000.00 planning place to get close to what is known as the ominous founding death cross. what does that mean in your opinion? yeah, we'll talk about that if i can just say one quick thing about the mining by the way, this is already being done in other homes by the way, with other crypto currencies like hex. so there's already a mining rigs that people are using, but bitcoin would be the 1st to do this would be interesting to see how that plays out on the big coin issue of the death cross yet look, this is something that gets talked about every single time big coin starts to come down basically the 50 day, moving average drops below the 200 day moving average. it creates a cross symbol. and basically the idea is once you hit that, then you're going to plunge. and so there's a lot of talk, the big coin may drop 30000 or even dell the way down to 20000. listen,
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it absolutely might happen. i don't think it will necessarily happen because of this. so called death cross. but it certainly might happen that a lot of what's being discussed right now was the idea that you got to get some kind of footing at around 45000. the bottom line is based upon what was just said, right, a, just a minute ago in this conversation should tell you that even if today or tomorrow, bit coins value perceived value, i should say drops. because if it's price, that doesn't mean the big coin is. you know, in the cross hairs of a death cross or is dying, right? in fact, it's quite the alternative to that big coin is continuing to lead the way as well as other crypto currencies in extra completely new financial future. and that's not going to change just because at the moment, some of those institutional investors have pullback. absolutely bad. now, david, i want to go back to mining because crypto miners that are slated to go public soon are likely to face a tough few months following this recent drop off in price and the broader and amid the broader cra crypto market. now,
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is there an appetite for public offerings for crypto mining at this current time, or would it be best because some of these companies this hold off i think it's better to hold off. i mean, i think the drop in price, 1st of all, certainly discourages new entrants into the field. the crypto miners that are public have seen challenges to their share price, certainly through december and now january. i think that this is part of a broader conversation bred when it comes to investment in technology companies and their stocks, which have not done well and that to knock on from what's going on with the said. and so i do think that we're going to see some footing, you know, reached soon. i don't think, you know, frankly, the coin has not ruined in the latter part of this week as much as the nasdaq has. so i think that big point is, is, is holding up right now, and i think some of those private minors should go ahead further develop their
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business, acquired more rigs continue to raise their computing power and then eventually go public. and by the way, just one last point, we're seeing a lot of innovation when it comes to big coin mining in terms of how to power those rigs we approaching are investing in companies that have existing power contracts that are very low. we're also invested in company that uses otherwise flared natural gas to go ahead and pass power dear rigs. nobody could take issue with that . that's otherwise natural gas. that's good to go ahead and get flared and off and not used for anything productive. so there is folks that are doing that as well, and certainly there are those that are using alternative forms of energy, renewables. and so no one with environmental concern can go ahead and knock that either. absolutely. let's not forget, volcano powered bitcoin in el salvador, eventually. boom, buck, ban swan and david towel, approaching capital. thank you both for your time. thank you. and finally,
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it's no surprise that social media influences have been raking in big box in recent years. and as tick tock has become incredibly popular, its top influences are brought in more than some of america's top business executive. according to a forbes report, charlie de emilio who started posting the videos of herself dancing on the social media app in 2019 made 17500000 dollars last year. the average pay for c, e o. s p 500 companies. it was about $13400000.00 in 2020, according to analysis from the wall street journal. in fact, the top tick tock star made more than the ceos of exxon mobil, starbucks, delta and mcdonald. those are some pretty big names there. the next highest earner was charlie sister, dixie at $10000000.00. with addison re at $8500000.00 earnings from the top tick tock. celebrities even grew by 200 percent from the year earlier. and with all of
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their business dealings, movies, commercials, and all that you can expect that the balloon in the years to come. and that's it for the time you get boom bus on demand on portable tv, find it at portable dot tv will see you next. me now we have e cigarettes, i just heard that it was a healthy alternative to cigarettes. do we trust tobacco companies with their message that these new products are actually going to reduce these sugar as are making the tobacco up into over 3 years? ah, we have recently of course, so the un, sorry, did the united states talking about human rights talking about press freedom. if
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you go to the top, the top, you got a wall to wall. in other words, you gotta be consistent. you cast out on the one hand, we believe you press freedom, but on the other hand we're going to exclude julian massage. and i think the property of the united states is tracy's really makes it a little bit really mad about the caching. turning here in australia where they just don't understand them, rival want to start in citizen which comes down with july, an annual festival in st. petersburg dedicated to dust i epsky. ah, the great writer, thinker and psychologist, people often turn to his work to understand russia and russians, perhaps even themselves. he cooked a single movie to see what they think about the matting vehicle of why the phoenix changing a rita transforming them as they read that to dust. i asked as unique ability to
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stay ascii wants to tell us you can better yourself. he makes you face your true self serve a wicked man beyond conventions, rules of schemes, beyond boundaries. in the time, dostoevsky is a global brand whose classics, everyone knows. i'm never out of style. i it really is happening here in el dante salvatore and then to be known globally as the home a bit going to city and we're witnessing the demise of gold as a monetary. the monetization takes place. i look forward to talking to you all that technology should work for people. a
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robot must obey the orders given by human beings, except where such order is a conflict with the 1st law. show your identification. we should be very careful about artificial intelligence. at the point, obviously is to make trust rather than fear. with the area with artificial intelligence, real, somebody with a robot must protect its own existence. with over the past 2 and a half years, russia, nato agreed on very little. if anything, however, both agreed to meet for a high level meeting and they did in brussels, both sides made their case. nothing was really resolved lots of words. what happens next? maybe actually a
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west when to fall, let's be frank in violation of old international obligations and common sense they chose to escalate this situation. russian foreign minister doesn't hold back journeys on your press conference with nato expansion dominate. thought. the gale of rob, once again outline moscow's red line. the cia has reportedly been training a lead ukrainian special operations teams, u. s. territory, amid bouncing tensions with russia. also on the program, joe biden fell on voting rights is effectively blocked by his own party. that the day after the american supreme court struck down the president's mandate, monday taxi monday for businesses.


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