A no deal exit for the u. K. From the European Union mr johnson then said he would introduce a bill for a snap election to take the issues out question to the people but Opposition LeaderJeremy Corbyn of labor insisted that labor will not supply the loots needed to call a snap election unless and until the answer is no deal bill is passed or securely on its way to becoming law today Prime Minister johnson spoke on behalf of his election bill before the 122 committee where he was reportedly rebuked by speeches supporting the conservative rebels who voted to advance the bill from ben of labor barring a no deal braggs it and as we prepared to go to air the ben bill had just passed a vote for a 3rd reading in the commons setting it to the house of lords. And joining us today for a special power panel across both blocks of the show are peter schiff the c. E. O. Of Euro Pacific Capital and Richard Wolffe professor emeritus. Am hurst and the author of democracy at work a cure for capitalism gentleman brags that i feel as if every headline weve done as long as i can remember leads to one more now what moments and were at that point again in the cycle but while we may not know how this will end it seems we can be fairly certain that confidence in the u. K. Is political system to handle handle paul challenging policy questions and process democratic input seems have been severely undermined so my question is what is the economic effect of the one sure consequence it seems of this adventure which is loss of confidence and u. K. Institutions peter do you want to take that on. How much or how much confidence there was a u. K. Institutions to begin with and you know it seems like both sides have a political interest to kick the can down the road to avoid dealing with the consequences of braggs it but you know i still think from a long term perspective getting out of the e. U. Would be a net positive for the british i mean i think theyve been their own worst enemies when it comes to dealing with this potential way out but actually i think if they actually do something the pound my rally i mean theres been a lot the pound has gone down theres been a lot of selling it is a patient of a potential heart braggs it so we might get to buy the rumor sell the fact and if that happens that be a Good Opportunity for the british to buy some gold. And now richard as the loss of confidence the one outcome that we can plan on and what exactly is the Economic Impact of that very intangible a very real factor weve already previously saw a saudi aramco pulling out of their planned i. P. O. And choosing to actually i. P. O. In japan on the nikkei rather than put me in the there in london. Well it seems to me a number of effects and i think theres serious the one is obviously uncertainty which has its own consequences like the a ram co decision but there are literally thousands of other companies around the world in britain and europe and the who do not know how to make tea. Investment decisions because they cant figure in what the consequences or even what the final decision is going to be number one number 2 britain is a small part of the world relative to the rest of europe i believe that doing what they are doing a distraction from their basic problems is going to make life for that country and the people in it worse because theyd break away that if they tried to find a more acceptable way to participate in what is one of the majored trading and investment blocs in the world and finally it seems to me that particularly since the crash of 20081 and austerity was imposed on the British Working class far more serious than almost any other country say except greece that you are seeing the building of a rage and the anger of the working class once they figure out as they will that in or out of break that theyve got the same problem of the structure of britain youre going to see in the acceleration inside britain of a very powerful class struggle of the sort we havent seen for quite a while in history has not ended since like moving to the other side of brags that the incoming president of the European Central bank Christine Legarde said in a confirmation hearing for that post on wednesday she seems to offer some very mild concessions on the issue of negative Interest Rates and quantitative easing suggesting a review of the policy and said that while it continues to be positive we need to be mindful about potential side effects and take peoples concerns seriously so i already hear you laughing peter is this just the usual kind of statement that political nominees in these kinds of scenarios make so that creates can claim some influence in the nominee can make minimal changes if any in their actual position. That well 1st of all the fact that rates are now negative is positive proof that the policy is an abject failure i mean clearly it didnt work i mean europe said oh the. And that we have problems is that we dont have low enough Interest Rates and so they keep lowering Interest Rates yet the problems dont go away in fact the problems get bigger and then when they get to 0 they dont question the fact that maybe lower Interest Rates is the wrong prescription for what al the economy no no no they decide they need to take them down into negative territory this is insanity we are at the end of this experiment it is going to blow up hopefully maybe some of the people over the bundesbank will be able to cause the e. C. B. To the year from this course they keep saying that they want more inflation they want more inflation which is ridiculous theyre going to get a lot more inflation and they bargained for and its going to be very hard to put that genie back in the bottle busy but i do think that potentially they may have more success at doing that then will the United States. Now richard the same question should we expect more of the same from the e. C. B. And miss legard if correct and the policy is basically a fact that. Now i think peters right about this this policy has not worked it hasnt worked for quite a while thats true of a quite a few of the policies that have been turned to in the wake of the crash in 2008 i think the real question is whether the i. M. F. Gets beyond or the world bank or any of these institutions get beyond the policies that havent worked to begin to grapple with the seriousness of the dislocations in global capitalism and come up with new ways of scuse me to intervene i dont see that so i become quite pessimistic that theyre just going to be treading water especially with the uncertainty of braggs it and the uncertainty of the United States china trade wars and the trumpet ministration all of that theyre gonna stick keep doing what theyre doing crossing their fingers at the problem doesnt get worse my guess is it probably will and back to the issue of Interest Rates you are to gurus on this issue the era of falling global Interest Rates seems to be settling in and shifting behaviors some from some Major Players one datapoint there is apple has now started borrowing in bond markets for the 1st time since the trump tax cut theyve been on a buyback spree and they say they want this these funds to raise cheap money for more of the same buy backs are there any lessons here above and beyond one very Large Company responding to low Interest Rates peter. You have to remember that low Interest Rates are not the solution to the problem low Interest Rates are the problem Interest Rates need to be much higher than they are today and the longer Central Banks succeed at artificially suppressing them the more screwed up the economies are going to get the bigger the imbalances. The more speculation the less legitimate savings were going to have the less real Capital Investment were going to have and so were just going to continue to blow air into a bubble until eventually it blows up and richard what can we infer from apples return to the bond market here. Well i think i disagree a little bit with peter but i think on many things we do agree heres my take on it the whole point of lowering Interest Rates has always been the hope that if you make it cheaper for business particularly but also for the consumer to borrow money that the consumer and the businesses will borrow the money and invest in the real economy hire workers buy more rigid bullets increase production and thereby lift if you like all the boats that hasnt happened now for a long time instead the cheap money is being used not to put the real economy into gear but rather to hype up the stock market to use the borrowed money just like apple is proposing to do to buy shares of stock and to have the inflation that isnt happening in the real economy happened in the stock market getting its prices are all out of whack with the rest of the economy therein lies the continuing danger of this kind of policy peter schiff in europe you know helpful and points you know you had peter you know there is inflation and there is inflation in the real economy the government just not being honest about it but we dont want the government to try to artificially manipulate Interest Rates to encourage a we want their free market to do that and remember it takes 2 to tango if you want to have people borrowing money somebody has to save that money to lend it to them and were not going to get savers unless we have higher Interest Rates right now the government creates the money out of thin air but this is not legitimate savings this is inflation this is not how economies grow this is how bubbles are inflated and all bubbles you know burst and they have very profound consequences when they do interesting was always well get back to this in the power panel and peter schiff and Richard Wolfe will be back in our 2nd block thanks so much for your insight viewers stick around well get them on the other side of the break. Google has agreed to 100. A 70000000. 00 settlement with the f. T. C. And the a. G. Of new york due to violations of the 1980 how is Online Privacy protection act the company will pay 136000000 dollars to the f. T. C. And 34000000 to the office of the new york a. G. The capo requires companies to obtain parental consent if they will be collecting data on children under 13 years old the f. T. C. Claim due to collected personal data from users who watched videos that were directed at children in turn use that data for targeted advertising following the statement you tube will now require can content creators to designate if their videos are intended for children if that wasnt enough of a headache for google to enter a titan is now facing an investigation from the irish data regulators over how they use information such as race health and political users to target ads a process which circumvent European Union privacy laws. And now for a quick break but stay tuned because on the other side of the break bonds are back on the microscope and while the fragility comes under scrutiny we welcome back our panel to break down what we said the headlines in the sector mean for the future of Global Finance and as we go to break here are the market numbers that. Sashing stressed to make sure that the british and the bill of india will. Stop the show so your street dentist that these traditions have a choice which quite all shall. Go to which you dont have time and look what youve seen on the list which you took a moment in there for sure. Or to talk to you sort of your remarks your bonus for each of you look. At the mistakes of the words are still with them to the spirit of 4 days you seem to be arguable that its a student actually of course a person has to be vocal or should step up and speak. Expressed she. Dares thinks. We darent. Well you know that they were kind of adopted because we were called pirates for so long. Ive been there in the smaller boats next to the hard pool of ships and its going. To be a lot on. The little self to beak told fish already 90 percent of the dot and he wont recover. Concept 15 scoops 75 to. Do it several times a day. You get an idea. We have to understand we cannot stay still and just. Be with this he is the deal going. In this because i want the future world. Future generations to have enjoyed the ocean we. While argentina is already struggling with a sovereign the quiddity crunch and asked the i. M. F. To restructure its debt payments there is also a 15000000000. 00 pile of provincial bonds that is threatening to saddle Foreign Investors with even more losses the nations provinces where political issuers when the International Capital markets reopen to argentina in 2015 offering Interest Rates of 9 percent yield hungry investors investors believe that these provinces had the support and assistance from the federal government and argentina wouldnt default under pro market mccree well that pieces blew up last week when the government announced that it would postpone payments on the caps short term local notes that a move the s. N. P. Considers to be a selective default now Money Managers are racing to dump the debt amid concern that the local governments will use a sovereign restructuring to lessen their own debt loads many of these provinces are almost wholly reliant on disbursements from the federal government for dollars needed to make Interest Payments which only further increases the risk to creditors the countrys bond plunged with many now trading below hat their face value and to make the situation worse the debt is also mostly in foreign currencies and when they collapse in the past so many provinces dont have a large dollar read. Strain the province of own half of all the outstanding prevention of debt and is seen as most likely to default given its significant foreign currency obligations and the weaker credit metrics. Italian government bonds surged on wednesday pushing yields to record lows a point 83 percent on the 10 year investors are now placing bets that the new Coalition Government will avoid confrontation with the European Union over the blocs budget rules and expect a more conciliatory tone towards europe members of italys 5 Star Movement voted overwhelmingly in favor of forming a government with the center Left Democratic Party with nearly 80 percent of 5 star members voting to back Prime Minister just up the conti 5 stars forming a new administration with former foes from the Democratic Party with an expansionary 2020 budget at the top of its agenda to help the stalled economy grow with large chunks of the eurozone now trading at subzero yields italy looks to be relatively attractive to fixed income traders italy currently accounts for 62 percent of all eurozone government bonds with a positive yield as the market has been supported by expectations of renewed bond buying from the e. C. B. As early as next week having agreed on the outlines of a Coalition Pact the 2 sides still have to decide on ministers with uncertainty surrounding the role of 5 star leader demaio. And now to give us their take on the turmoil in argentina and italy we welcome back richard wolf and peter schiff. Now peter the results of the election we just heard the political maneuvering we just discussed in italy the 5 star ballot was actually quite strong but this is enough to give investors confidence in this new coalition its a lot of shuffling chairs but only still has a 2nd largest debt burden in the e. U. Will they be able to be able to deliver an acceptable budget. Well you know i wouldnt have any confidence at all in loaning money to italy or any other of these. European nations at the low rates of interest that are currently being offered i mean they dont reflect the type of inflation that the euro zone or the rest of the world is likely to experience based on the amount of money that is now being created by Central Banks and how much money theyre going to create in order to artificially suppress Interest Rates so they can continue to pretend that they can service an enormous amount of debt that has been piled up so nobody should be buying any of these bonds theyre a lousy deal for everybody people we should look like should be looking for alternatives thats why the price of gold keeps going up thats why the price of silver keeps going up its better just to stack gold and silver and put it in a safe then lend money to any of these government said negative or barely positive rates of interest. Now wolf while italy is on a temporary upswing now argentina is in crisis again and usually at least as weve seen in history when a sovereign borrow gets into trouble and experiences a rollover risk and they cant refinance material debt due to a sudden stop in the market financing a policy choice must be made and we can either monetize the material debt and send the country into hyperinflation as bulgaria did in 1906 or you can default and restructure as russia did in 1908 so here in this instance why did the government choose not to monetize the caps last week and let the puzzle just blow. Well the problem is for both italy and argentina and indeed for many other countries they have gone through these cycles repeatedly they havent as peter said in the 1st segment they havent learned the lesson that the problems the dysfunction the deep crisis of the economies of italy argentina and many other countries requires structural changes theyre not willing to do that so they pump in money they drop Interest Rates i disagree with peter if you raised Interest Rates given the absurd levels of government industrial and. Consumer debt the in possibility of continuing would only become even more extreme the kind of cold water bath that he suggests is exactly what theyre of fraid of i why they do the things they do and the irony is only for me as watching the investors if you lend money to italy under these circumstances or you live money to argentina youll know that they have defaulted in the past you know that they have enormous unsustainable debts youre taking an enormous risk to which the rest of us orders say if youre willing to take that risk do you have to come to the community of the world at the air for help whether it turns out the risk you took was as big as it looks to us the. Be even from this moment and given those risks that you cited you know century that the sterett. Steady medicine to improve economy prevents the economy from growing enough for them to. Manage their debt italy obviously you know were looking at italy in the in the view of past crises greece is probably the best example italys managed to avoid a momentary crisis for now but they still have to pass a budget within weeks to block a automatic rise in the value added tax is set to kick in on january 1st if the government doesnt reach its Debt Reduction target so are we seeing you know are we just on the road to crisis slowly or do you see professor what do you see a chance for real significant revolution resolution here i dont see a resolution i dont see it. Well i dont see a resolution i dont i dont see i dont see a resolution i dont even see the coordination of discussions about a real resolution i see them turning to very problematical monetary increases negative Interest Rates. Partial for a given this is this is exactly what theyve done in the past that did not solve their problems and brought them to this brink my fear is that they will produce another crisis on a scale of 2008 and 9 and the mass of the working people who went through that who watched the collapse who watched the bailout of the big businesses and watched the austerity will not permit that to happen again ok peter did a bait and switch on you and a question you want to take out on. It well 1st of all the next crisis is going to be on a much larger scale than 2008 you know the problem is that the chickens are really coming home to roost now for all the governments who have borrowed too much money politicians have been getting reelected around the world promising something for nothing and they pay for it with debt and because theres more and more debt rates have to go lower and lower so that the politicians can avoid defaulting on the debt that theyve accumulated and still accumulate more by creating a false impression that they actually can handle the money they borrowed they cant and so this whole thing is going to come to an end and the question is how are politicians going to deal with the reality how are they going to finally make the difficult choices that theyve been afraid to make in the past with respect to being honest with their citizens and their voters and cutting back on all these promises that governments have made that they cannot keep and how are voters going to react how are the citizens going to be react to hearing the truth and finding out that they cant get all that theyve been promised and will the politicians alternately decide to keep these problems. This is where the Printing Press and i have you know unleashed hyperinflation around the world i mean that is a situation that were at it and people had better be be prepared for whatever the outcome is because its not going to be pretty and again i said earlier people are buying gold and silver right now the prices keep moving up and theyre going to go higher and higher and people should not wait they should by now while they get afford it we are in uncharted territory professor richard welcome peter schiff thank you both for your time today. Sir thank. And french auto maker book god he says they are the 1st part auto manufacturer to make a vehicle that exceeds 300. 00 mph a modified version of the 3000000. 00. On held by bugatti test driver and he wont miss coopt in 304. 8 mph on a straight away on books wagons a test track in germany according to the automaker the manufacturer point is key in all of this cars built specifically for the purpose of setting speed records have exceeded 500 Miles Per Hour now this isnt exactly the version of the car when you would purchase from god this was a prototype developed in tandem with italian race Car Manufacturers dont lara the prototype featured some safety alterations for high speeds they modified the body to improve aerodynamics and had specially made michelin tires which are modified to handle the incredible speeds and if youre in the market for a Production Model of the cairo on the top speed is electronically limited to just 261 Miles Per Hour due to safety concerns. Where can you even drive something at 260 Miles Per Hour like the only place in the autobahn but its like limited right so you have to test it on a straightaway obviously you cant take any curves at 261 mph not recommended thing that if by this time you can catch boom bust on you to dot com boom bust the next time. You know world big partisan mockeries and conspiracy its time to wake up to dig deeper to hit the stories that Mainstream Media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the bad and shouting past each other its time for Critical Thinking its time to fight for the middle for the troops the time is now were watching closely watching the hawks. And the big 10 years since crosstown started to 10 years i think its time to shake things up maybe change the branding maybe the format here is what ive been thinking about next season related episodes filmed on an island 10 experts fight it out for a trophy what do you think ok a more affordable option 25. 00 text birds. And one red rose another suggestion geo political jeopardy parody no political cookout where we will literally wrote the elites. Late night show its a rare form out these days and its cheap all you need is an old microphone in a printed banner if i actually agree with them i guess i can do this candle after politics gone wild like music. Ok crosstalk is not about hype its about meaning 10 years of talk and still going strong. Peter if you want to change something why dont we get rid of the bow tie no that is too much. Thank you im thinking. I. Ready ready ready am sure to stop for continuing to grow. I just never know very good about the idea of bringing children into the world because i didnt feel like things were in very good shape that a life was just going to be a lot of software programs. Theres no reason in the world you take things that are to me. Is a myth Something Else that. Everybodys scared to talk to that is certifiable is truly dependent on us addressing this issue and if we cant even talk about it every chance even have a conversation or that it then. Were in trouble ready. Thank you. Thank. You i was not. Serbian made weapons are allegedly ending up in the hands of terrorists in yemen and syria after being bought by the u. S. And its allies that is according to leaked documents obtained by a bulgarian internal. I had a baby. Right and i do think. The. British Prime Minister suffers 2 more defeats in parliament as lawmakers reject his call for an early general election and pass a bill to prevent a no deal. And the wrong announces plans to excel a breakthrough to uranium enrichment activities raising the pressure on your oath to uphold the international nuclear