Transcripts For RT Boom Bust 20240713

Protests in venezuela took place earlier this year where tens of thousands took to the streets in dueling protests in support in opposition of the standing government under president nicolas mother would go on as well as have turned to rely heavily on bitcoin some using it to pay for medical costs or even food eating gold in the hyper inflated economy and several reports revealed Venezuela Central Bank is allegedly looking to stockpile of variety of crypto currency is like a coin within its internal reserves stay operated gas company but theyre a little less than a swell hour by the vessel has asked to send big corn and a theory of payments to uncle sam but i live a nice way to save evolves to pay for oil and gas operations with us ancients on some of these countries like venezuela iraq and iran terror on is allowing for big queen mining but with some regulations head of the Economic Commission of the Iranian Parliament and yes hotshot the said we do believe that the crypto currency industry should be. Nies as an official industry in iran to let the country take advantage of its tax and customer revenues. And for more on crypto and its stance around the world we bring in boom bust host christiane whos joining us from los angeles and editorial director of the American Institute for Economic Research Jeffrey Tucker in new york welcome both of you thank you so much for joining us today. Good to be here now jeffrey looking at all of these global protests is this the new norm what it when countries who are facing political unrest will turn to cryptocurrency. Well you know we have to remember that krypto was born this is exactly the kind of unrest it was 2008 when the white papers were these 2009 january 2009 when the big coin was released to the world theres a lot of incredulity of the time but smart people got in on it and 5 years later started looking pretty awesome now here is living years later later yes it is now a safe haven for the world and you need you need that you know weve needed it for a 100 years ever since the governments around the world took over the Banking System. Put in question whether or not we really own our deposits we need some independent store of wealth and i think big calling is becoming the big question another crypto currency is also you mentioned venezuela there are many many different cryptocurrency that are being used there are now thousands of them and theyre all fungible one with another each other its a Wonderful Technology and i personally believe Something Like a private crypto currency a global basis is good for the future of medium of exchange and stores of value around the world. You know sort of the devil are living in Interesting Times someone once called it the age of rage because we have global unrest and global protests that are all stemming from bad years and years of bad Monetary Policy collapsing currency and financial inequality as actually summarized earlier so this created the perfect storm for just a huge disruptor like big point to emerge as an equalizer for all the citizens who are being affected so when theres unrest when there is uncertainty people want to regain some lengths of control and crypto is the big equalizer here and something that happened really recently was malaysia last week the u. S. Told malaysia that any iran ian citizens cannot have a bank how you go out and close all the Bank Accounts well how is that fair this isnt a targeted they are not targeting. Any Government Entities this isnt targeting any terrorist financing ordinary citizens are now being affected whether you are a student you are a farmer youre a construction worker every Single Person every single aronian citizen living in malaysia not even living in iran is being affected and now they have no access to Capital Markets they have no access to banks how is the city how is someone living in malaysia supposed to survive if an entity such as the u. S. Can come in and strong on the country into shutting down your bank account well like you said kristie a lot of these people are now relying heavily on these crypto currencies but could countries really ever block the use of them because theyre becoming so popular. Part of the problem doesnt. It well it does have the on ramps and they say on ramps and they are fab sort of a problem theres theres absolutely no censorship in the network itself so if you own crypto you can pay with crypto you can own a transfer and thats one thing but if every tried to move in and out of the National Currencies thats where governments become very significant they can they can ban a 2nd taxes they can regulate its they can regulate the exchanges and i must say over the last 11 years thats become the big problem in the crypto world so its becoming its own ecosystem and and its really true that the worst governments get the more sense sorry as they get and the more regulatory they get the more theyre incentivizing people just to get into crypto and stay there to provide for their media needs and provide a permanent sort of wealth and thats whats very interesting about this kind of dynamic between governments and the Banking System on one hand and crypto on the other is more and more people are being incentivize just to get into cripples stay there and thats fascinating thing that in the 1st world you see in the countries with a lot of political instability and kristie its up to say about that. Yes we actually seen this happen before in 2017 china actually banned. A currency and then also around the same time india also issue regulation to start to stop because of mining as well but ever since then the regulation in india theyve been trying to bring down a new law that actually bans ownership of crypto currency that you can actually go to jail or be heavily heavily fined for even owning took their currency however despite these bans by the Central Government crypto currency trading has actually accelerated in india in the past month this actually came out over the past week and now that the currency trading is actually up 13 percent for the month and so this will actually affect 5000000. 00 indians if this were to pass so even if the Central Government is banning cryptocurrency as weve seen that in china that does not work the regulation came out in 2017 and yet china has remained the undisputed leader in decline mining china is also the leader in crypto currency trading as over 90 percent of trading activity happens around asia so even with the Central Government trying to quash down the tide of crypto currency and watching technologies weve seen that as long as you have access to an internet crypto currency and watching truly makes it a huge equalizer game for ordinary citizen and jeffrey i want to actually play off of what christie just said there talking about china because theyve kind of rolled back some of that now that you see the u. S. Is very restrictive on crypto currency but most recently china said its looking at implementing cryptocurrency on a massive scale and that would include bringing in while way into the mix is the u. S. Following behind on this. That its been the good of about 5 years so you have to slowly roll back and understand what happened when record is invented it was dismissed for Something Like 3 or 4 years nobody took it seriously and then for the next 2 or 3 years prove a thought well this is a tool for geeks it doesnt really matter banks are all some of the dollars are some theres not going to be the competition but then as time has gone on weve seen that things are getting more and more serious so the Us Government and you can see it in the debates in congress in the senate. The house and the where the regulars are talking this trying to get scared and panicked because of crypto really does become a big mainstream thing it disables Monetary Policy and it actually threatens the legacy incumbent financial powers in the u. S. So that were going to see growing fights over this in the u. S. And i think the days of laissez faire in the u. S. And in terms of crypto are truly over we saw how abusive the congress was towards a sucker who wanted to have a very innocent idea story and then turned to me and next thing you know is treated like some sort of criminal well were already seeing growing fights like you said and even india has played instructions around whos playing restrictions on big coin but well see what happens here and continue to follow kristie i and Jeffrey Tucker thanks so much for your time. The auction for drilling rights to deep Sea Oil Fields off the coast of brazil raise well below initial projections the mega sale of the oil fields only raise 17000000000. 00 rather than the 26000000000. 00 government officials had hoped for the only block that was awarded during the auction went to Brazilian Oil form petro brass and china c n o d c a subsidiary of China National Petroleum Corp both of which only offered the minimum bid according to reuters 4 other blocks which were up to for auction received no bids this was the 2nd Brazilian Oil auction that received little interest from the worlds major major oil players now the blocks are estimated to contain as much as 15000000000 barrels of oil the oil rich patches though located but need to see if the floor of the sea make it increasingly expensive for producers to drill there also requires Huge Investment for extracting the product compared to shale fields seen elsewhere. In the latest update in the u. S. China trade war the 2 countries have agreed to cancel some of the tariffs imposed during their month long trade war the Chinese Commerce Ministry Announced some progress in these trade negotiations. Well if you dont go in the past 2 weeks the leaders of the 2 sides have conducted serious and constructive discussions properly addressed in their core concerns and agreed to a strange cancellation of tariff increases depending on the progress of negotiations for referring to how much was cancelled in the 1st day it can be decided based on the content of the 1st 3 minutes. And both sides have imposed billions of dollars worth of punitive tariffs on each others exports and china has been resistant on rolling those duties back as part of any agreement earlier this week u. S. Commerce secretary will said phase one of that deal would only cover some general trade specifics such as increased sales of Agricultural Products to china bonnie olds move higher and europes share markets hit a more than 4 year high after beijing signaled that a phase one deal is indeed close a source familiar with the matter told reuters chinese negotiators want the u. S. To drop the 15 percent tariffs on about 125000000000. 00 worth of chinese goods that took effect on september 1st but no specific timeline was given in terms of when those tariffs will be removed. In time now for a quick break but hang here because when we return we have seen several fabled unicorn listings flop recently so what does that mean for the future of hyped up listings christiane add a measure of standing by to look past the club and whether these uniforms truly have a point and as we go to break here are your numbers at the close. Oh oh. Live. Live. Live live. Live. Live live. Live live. Live. Live live. Oh. Play. Live. Live live. Live. And very well might continue watching on since last. Thousands of american men and women choose to serve in the countrys military. Every thing came to a complete. The day that i was raped. You know told to shut up or theyd kill me and i see how it destroyed my life any screamed at me and he made me come in and he grabbed my arm and he write me with his birthing area if you take into account that women dont report because of the extreme retaliation and its probably somewhere near about half a 1000000 women have now been sexually assaulted in the us military is a very very traumatizing thing to have happen but ive never seen trauma like ive seen women who are veterans who have suffered military sexual trauma reporting rape is more likely to get the victim punished dont be offended and almost 10 year career or chose very invested in and i gave a sex offender who was not even put to justice or put on the registry this is simply an issue of our in violence male sexual predators for the large part of target whoever is there to prey upon whether thats man or woman. One else truths seem wrong. But all roles just dont hold. Any. Get to shape out just they become active and engaged equals betrayal. When something find themselves worlds apart. She still look for common ground. Up. Thank you. Welcome back a blockbuster takeover is in the works of copy machine makers xerox has made an offer to purchase Hewlett Packard xerox has offered h. P. 22. 00 per share in the bid do acquire the Company Sources close to the situation say the bid is for 77 percent cash and 23 percent stock h. P. Is worth roughly 29000000000. 00 and is nearly 3 times the size of xerox in regards to market cap at the end of the deal h. P. Holders will own 48 percent of the resulting company h. P. Issued a statement confirming that the reports of the talks were true saying theyre discussing a possible Business Combination and after speculation started earlier this week h. P. Stock traded on the New York Stock Exchange spiked more than 3. 00 also witnessed a gains of more than 3. 00 after news of a possible acquisition. The u. S. Department of justice is charging 2 former twitter employees with spying on behalf of Saudi Arabia Court documents revealed the 2 as a u. S. Citizen. And. From saudi arabia ahmed tyree a 3rd former twitter employee and saudi citizen is also being accused of spying now the 3 men are accused of working with head of a Saudi Charity founded by Muhammad Binns home on bond. Sacar who was working for and at the direction of b. S. The charges range from making false statements to the f. B. I. To financial fraud for Consulting Services the saudi government allegedly paid the 3 men hundreds of thousands of dollars to spy in a statement the social media giant responded and said the company limits access to sensitive account information to a limited group of a trained and that it employees adding we understand the incredible risks faced by many who use twitter to share their perspectives with the world and to hold those in power accountable we have tools in place to protect their privacy and their ability to do their vital work. This week gave us a check up on 2 of the biggest unicorns of 2019 both ride sharing and fitness bike manufacturer peloton released earnings reports that were less than impressive and as we look at the landscape of investing coming down in the next 12 months there is a much anticipated i. P. O. Of air b. And b. And the apparent constant failures of the we work there are far more questions that we have answers and this may seem like a redundant one but are unicorns too good to be true we may not have an answer on that but we do have some folks on hand who really do joining us now to discuss we welcome back boom bust host christiane and adam mesh c. E. O. About a mesh trading welcome. Now having me now adam i want to start with you on these 2 unicorns are reported this week peloton at newburg both now trading well below their i. P. O. Price whats going on here. Around 40 percent. A little over 20 percent more concerned about over so you know you mentioned we work and well talk about where we work loses around a quarter 1000000. 00 every hour over loses a familial dollars every hour and people dont have an appetite for a company thats and they wont be profitable for 2 years they just lost a 1000000000. 00 in the quarter no ones going to stomach. Thats a big concern peloton im less concerned with theyve been aggressively marketing to grow if they wanted to they could be profitable now if they just stop their expansion their biggest risk will come from sole cycle whos launching a competing product and i wonder how much of the market share that will take and i did want to quick follow up on the point that you made no i did see that when they when they reported their earnings now theyre saying theyre going to make a move towards and less from rapid growth and more to efficiency does that change your opinion on them at all. No because they havent shown a clear path to profitability some of the experts say yes they will be profitable we see how thats going to happen others say we dont see you know they spend they spend more than than they make and theres the fighting to compete with alternative options so as that market grows more competitive it could be a challenge all of the intel youre not losing half a 1000000. 00 every hour i dont want to stick in your company. Kristie i want to turn the topic which is a topic to your that weve been hearing in the Business World which has been we were consistently they couldnt make an i. P. O. Their founder has been criticized for these crazy practices the valuation has been knocked down again and again and its now down 83 percent in just the last 3 months to 4900000000. 00 now just this week it was reported that the we were debacle caused softbank to post their 1st last in 4 teen years what do we know about these failures of we work. Well its not just the failings of we work in the failings of the v. C. And the private Capital Markets because theyre the ones who are actually fueling this entire boom of unicorns you know who arent you actually dont even deserve to be called that as the Economic Research institute actually showed that 50 percent of you know course nowadays are overvalued they dont deserve this valuation because they actually arent generate any profit for us you know core market topped out. 242015th when there were 42 unicorns newly minted unicorns that year weve never seen levels since then and that pace is just completely unsustainable Silicon Valley now has this competitive mentality and this phone will rush to bid on to like these new ideas these new disruption disruptive ideas and because theres so much capital theres so much private capital within that little bubble if they dont compete if they dont bid if they dont give companies a higher valuation they could potentially lose the deal and so the v. C. Is actually under constant pressure to constantly over perform every single year to beat expectations and make their earnings too so hence they have to fill their portfolio with winning deals and compete for these deals by offering higher valuations to companies that frankly dont deserve it i dont i want to stick with we were here a little bit despite all of their issues Real Estate Firm c. B. R. These Research Shows that the Company Least a total of 2800000 square feet in the u. S. Alone and it was the number one leaser in 9 out of 10 markets for flexible growth and the company even accounted for 69 percent of coworking space leases in the 3rd quarter of just this year how how is this not working. Well we worked out a valuation of 47000000000 the mather coming out now saying its closer to 5000000000. It was never a profitable model to begin with. Im not trying to but im just very proud of this. Says its profitable they said theres no believe that. Their their power point has an hour pointing up and thats their plan so hes probably. Going to turn around without any details just an arrow pointing up 4 months before they cancel the i. P. O. I was on here and you guys asked me about we were and i said i dont see how theyll ever go profit because the thing is this this is the most important thing they act like a tech company they spend money like theyre a tech company. Like theyre a tech company theyre not a tech company and thats the biggest thing theyre not a tech company and thats why they should have never had that valuation so i dont see how it sustainable and the arrow pointing up doesnt do anything for me. And a follow up to a follow up to that peloton is pretty much the exact same thing theyre trying to market themselves as a Media Company because they streamed these hundreds and hundreds of hours of video and theyre trying to attain the valuation of a tech company of a Media Company when really its just a very expensive stationary bike with an i pad on it. I want to look at air b. N. B. They have a much anticipated i. P. O. Coming up in 2020 and according to a report from the Financial Times the company is valued at up to 42000000000 dollars by investors who are trying to buy a stake prior to the i. P. O. Now weve seen criticism of the companys Business Model is this another one of those over valuations were talking about and do you really see an i. P. O. Any differently than these other field unicorns. Well lets just look at the market cap of the Largest Hotel chain right now in the world which is marea marymount current market cap is 43000000000 and thats and you can drive to that market have based on their generated revenues air b. N. B. Is air b. N. B. As big as do they have the same Consumer Base as america can the world sustain to marriotts and have consumers like feeding revenue into these 2 giant entities if not that valuation is completely overblown and theres something very wrong with it. Well thank you so much adam and christiane for that discussion on these you know koreans there i know there was a lot of hater ada as i called it earlier today but thanks for giving us an update on that. Thank you. If youre a follower of the american football and the n. F. L. Specifically you no doubt remember the deflate gate scandal that rocked the super bowl champion new England Patriots after the 20142015 season the scandal revolving around deflated footballs was exposed in part due to Text Messages between equipment managers and Team Officials future hall of Famer Tom Brady who received a 4 game suspension following the beds would have been implicated had he not destroyed his cellphone following the season something he says is a regular practice when he gets a new phone but now according to a new report from yahoo sports coaches and players throughout the world are switching to signal an end to end encrypted messaging app to communicate with each other when using the app users can set messages to delete after being read and they can create issues throughout the sports world imagine College Football coaches can communicate with recruits with no records being able to be pulled basketball stars can talk with each other to discuss building a super team before anyone is on the open market and its even possible that Team Personnel can discuss the air pressure of footballs prior to important playoff games at the end of the day no one will be able to request the messages because theyre gone but dont worry according to the New York Times the n. B. A. Is already trying to get a hold of this sending a memo to teams requiring them to keep records of all contract or collated communications for at least one year but is that enough its hard to say right now but we can only assume that other leagues will follow suit in the future and actually start to create these types of rules and listen for the team is about whats have whatsapp already does it deletes here your text doesnt have any it does but i think signal actually ended up getting a little bit more publicity because it was the one that. I believe Edward Snowden said at one point was that if your in any community because of the n. S. A. Was using it thats how you should do it is signal i think people are a little concerned with whats out because its owned by facebook so theyre not fully trust like they do signal absolutely well thats it for here today the poll the time we have you can catch boom bust on direct t. V. Channel 321 dish Network Channel 284 streaming 247 on pluto t. V. The free t. V. At channel 279 or as always had us up at you tube dot com slash boom bust r. T. See you next time. It was introduced at a change global geopolitics forever and you cant on an event gunpowder coyness change now the whole notion of what money is and you cannot uninvented theres no turning back. You mentioned the 635 if you have a career and unclear involves using your eyes filling your computer and things like that in an office. Perhaps you sort of get things in excess or kids. Are going to have to stop doing this and this is how you do the minutes must be from my world became smaller and smaller and smaller until i ended up living it and the box. Of very strong Magnetic Field on my head. Think of it like a real hard time assured my skin burned and that Wireless Access Point your sister continues on saying with our students in the schools. We are just continually our citizens. In this microwave radiation it is certainly electoral smaug and its getting worse. In my i phone or have a 1000 times the capability of the of the computers we had on board the space for at that time i mean its ridiculous that in my back pocket i have much much more capability than we had in the hood and the entire apollo program. Cookers in the best of us challenges to form a twit to stop it being found in spite of them gathering thousands of users critical of riyadh. Whistleblowers become the new frontline in the political battle being waged in washington and the bill to protect their identities is a blow to the us senate. Tackling hate in hospitals the health trust in england plans to root out racism by threatening to withhold treatment for people who have you stop. A message theres 0 tolerance towards a lead to a level of selfcontrol to treat people they should treat people. Without question