Transcripts For RT Boom Bust 20240713

Daniel booth author of fed up and inside his take on why the Federal Reserve is bad for america and former Federal Reserve insider so danielle starting off this is the 2nd time that the fed has made a move that the market has now interpreted as being panicked so instead of boosting confidence it actually spooked the market causing this massive selloff right off the open so was the feds response here appropriate could have they have done anything else differently here. Well i think what we have to really focus on is that the fed didnt have very much of a choice the asian markets had priced in a much messier day than weve had today bearing in mind that today was the worst selloff since 1987 but again markets had already priced in the fed coming in and making an emergency move i think at the fed ben silent that we might have even seen more disruption in Financial Markets than what we did see today so they sadly theyve backed themselves into a corner and they had to deploy all of the weapons that they had all at once and as we see with todays trading that still wasnt quite enough and i think the message in the markets and i think what the market is trying to tell the Federal Reserve is that they need to look to another part of washington d. C. Because the Federal Reserves tools are probably not designed to get down to the average american working american man and woman whos about to be displaced and have their income take a big hit and its interesting that you say that danielle because senator but romney has now actually tossed the idea around of a 1000. 00 stimulus package similar to what bush did i believe in 20072008 when they gave every american i think at the time was 1200. 00 im sorry i dont have that number off hand but so they basically returning it through the i. R. S. And giving a 1000. 00 thats the kind of stimulus i assume youre talking about there but what are the implications of hitting this hard 0 percent Interest Rate floor hitting this floor means that virtually all reserve Countries Central Bank Interest Rate stimulation tolls wont work. Well it means that the that the federal funds it means that the Interest Rate mechanism has been exhausted certainly doesnt mean that that was what occurred in 2008 and clearly the stock market took off for the races after that as the fed fired up the Printing Press so but again they also threw out. 700000000000. 00 of fresh quantitative easing in last nights announcement and that also was not enough to me earlier rate the markets i think right now were still waiting for the next shoe to fall with concerns that that next she was going to be in the credit markets not necessarily the stock market now what do you think is going to happen in the credit markets with the crisis in the credit market that is pretty much sparked by big oil would that actually cause us to pretty much fall off a cliff would there be any any way to turn the ship around once that happens. Well its very difficult to say because you have to understand where the credit crisis is coming from you just have exxon mobil for example downgraded for the 1st time since 2016 when Oil Prices Went into the twentys as they did today that thats going to take quite a few Energy Companies down but you also have the likes of m. G. M. The huge casino operator draw down its entire credit line kraft heinz also drew down its entire credit line this afternoon that company has recently been downgraded to junk and because we have 10 trillion dollars in the corporate debt market in america you have to ask yourself where the potential Sleeping Giant lies and where the disruption might come from we have to remember that several years ago when it was our to october of 2018 it was none other than General Electric debt which started off a daisy chain so this point we dont know but we know that this entire cycle has seen the inflation of a huge Corporate Credit bubble in america and that that is likely where the source of risk in the system is existing right now me mentioned 10 trillion dollars there is 4. 00 trillion dollars right now that is at risk of being downgraded to junk as we speak now Monetary Policy is going to be very limited in its effectiveness thousands of businesses and millions of households are now about to suffer extreme Economic Hardship as theyre starting to see losses and layoffs so is there anything that could be done at this point to prevent the economy from falling into a technical recession. Well i think that that discussion is probably moot at this point and im not trying to be insensitive its just the very idea of social distancing nationwide is so dramatic in an economy that last year was 78 Percent Services it was even a bigger year in terms of the Services Contribution to the economy than your typical year when you see about 2 thirds contribution because Business Investment fell off last year so if youre talking about social distancing in order to get the virus under control. All that is going to put the economy into a technical recession and do so very quickly again the onus falls back now on congress and the white house to help the average american working american so that they can bridge this gap without without bankruptcies and evictions and all of these crazy things that we think of when it comes to true familial hardship in this country things to keep track of former fed and sided and you know too much you know but thank you so much thank you. And as the world takes increasing measures to control the spread of covert 19 the director general of the World Health Organization says nations arent running enough tests which are crucial to understanding and controlling the spread of the virus we have a simple message for all countries test test test. Because every suspected gays and with the number of confirmed cases shooting up above 175000 with more than 7000 deaths the spread of people is being taken into account as germany has limited those who could across their borders for not only german citizens those who reside in the country but work elsewhere and vice versa can enter the country germany joined austria the Czech Republic denmark hungry lithuania poland and switzerland as european nations with border controls due to the virus argentina will also close its borders to nonresidents for 15 days as will peru here in north america canada has also made a decision to close its borders to those who are not citizens or permanent residents as is always the case some exceptions will be made in each one of those countries countries state and local municipalities are also making a greater effort to promote social distancing in france french Prime Minister Edward Philippe announced the closure of all nonessential businesses and locations including restaurants cafes cinemas and clubs spanish authorities are taking similar measures as the number of confirmed cases in the country jumped to 8000 with nearly 300 deaths of course in the situation stores like supermarkets and pharmacies will remain open here in the u. S. Cities across the country are taking various levels of precautions the governors of new York New Jersey and connecticut have called on bars restaurants and movie theaters as well to close several other states have made similar measures including massachusetts and washington. And in the midst of the coronavirus essentially causing the u. S. And other countries to grind to a halt there are enormous questions looming about how many cases will their ultimate lee be how willing will all of this go on and in the short term where will we be struck next and how bad will it be in those areas currently there are 2 companies that are using a Artificial Intelligence to come back rotavirus the 1st company a canadian startup blue dot. The virus by analyzing news reports social media posts and government documents by doing this is reportedly able to help detect an outbreak the 2nd company is in for vision and they have launched a coronavirus solution that helps Frontline Health care workers detect and monitor the disease more efficiently so joining us to talk about how they are is on the front lines of the fight against corona virus and to give us an update on how the rest the world is dealing with the virus we join it or were joined by boom bust cohost ben swan ben thank you so much for joining us today. Ben when it comes to our how efficient is ai in terms of tracking this virus. Yeah you know i guess thats kind of a big question a big umbrella in terms of what you can do obviously its wide but if were talking about the specifics you know you mentioned that company blue dot and one blue dot is doing is very interesting is taking information specifically from social media posts from news reports from Government Agencies its compiling all of that together and its trying to anticipate where theres going to be an outbreak interestingly guys if you look at what they were able to do blue dot and its a i was actually able to predict some of the locations of where coronavirus was going to be the hardest hit before the World Health Organization even declared a public warning about it even before by the way the c. D. C. Did so the ai seems to be working pretty well in that respect also interesting. You have the alibaba now has a power diagnostics system this they claim its 96 percent accurate for those diagnoses that they can detect the virus within a matter of seconds and theyre using a i they say to do that so theres a kind of a wide umbrella here but it seems to be doing at least helping in some some aspects now a lot of the current concerns over the virus are how quickly and severely these cases could build up so many Health Experts are talking about what has happened in italy as a guide for the u. S. And theyre saying about the u. S. Is about 11 days now behind italy in terms of the spread. So how does it only provide a possible blueprint for the us yes your question you know italy if you consider the fact that they are the hardest hit country at this point outside of china so you have china and then you have italy has now moved into the 2nd place slot obviously a much smaller population than the United States but what were watching is the number of infections that take place there and then how they begin to spike up they begin to climb very rapidly thats what happened in italy thats what were expecting to see happen here in the u. S. But i got to remind you guys and i know you guys know this but for viewers out there its important to remember that there are true cases the true number of cases out there and then there are the reported cases and one has nothing to do with the other reported cases means of those just the ones that we know of and thats a very small number right now the true number is probably much higher the c. D. C. Has even taken a couple of stabs at it and they claim it could be as many as half a 1000000 people in the state of ohio they think there could be as many as 100000 cases alone just in the state of ohio so we dont actually know what the true number is and thats one of the reasons there is i think so much for lack of a better term panic on the part of authorities because theyre not sure you know when those numbers continue to climb when they finally get a level off and thats why were seeing so many calls for no public gatherings and no benefit at this point virtually everyone across the world is basically being affected in some sort by the lockdown limitations on events etc now if we look at china is there any clarity in terms of how lockdowns might have actually prevented the continued spread of the disease when they say you know theyre actually beyond the worse still. Yes china is a really good example there kristie you can talk to this all day long she she understands it shes actually explain it to me well so heres how shes explaining to me which is that you know in china when they Say Something they say youre going to do something everybody does something thats part of being in that top down communist system that they have and so they were very successful at locking down cities about 60000000 people in those cities so you would think they would have still had a lot of spread but they didnt have that in fact when you look at what i just mentioned but the true cases versus the reported cases what we saw was after the 1st lockdown in china that was their initial lockdown the number of actual true cases kind of slowed and then after they locked down those additional cities as well a total of 60000000 people in population the actual spread of the virus stopped in china and its been declining in the true cases declining ever since so for china at least this whole process of locking down cities and and people corney being quarantined has been very successful in stopping the spread bennis one cohost of boom bust investigative journalist cryptocurrency currency analyst just a friend of our little they have so much for her and. I think. Time for a quick break but hang here because when we return several in those days have been in the household he is on the recent economic slowdown but hell have been slammed as hard as the oil sector straight up the promise we have a live report on how falling demand and the price war has drilled into the trial and as we go to break the numbers as the clubs. Is youll media a reflection of reality. In the world transformed. What will make you feel safe from. Isolation little community. Are you going the right way or are you being led so. What is true. Is. In the world corrupted you need to descend. To join us in the depths. Maybe in the shallows. Blusher sunday. Morning the only. True team youll be set its chances that always shifting against. Him. Beautiful to go see it myself included. A little bit i was called but im counting that in the scheme to show. You shine hes. Given to a spot in the south korean his or stow them t. Come forward summed up all. The money i took of the british mr west imo sure because. The world is struggling in different ways to cope with the coby di 900. 00 endemic and governments are taking the heat for their actions and inactions for the coronavirus be a referendum on globalization. You are no fan speed you no longer a young woman in fact you are one of the last living survivors of the nazi else asked am aware of their. Leverage at. All you like. You can never forget america now auschwitz was really like to be in hell because you would never believe it was a human can do to as a hobby horse for 32 years im open to be. Heard of it it all seems so a lot of fire will decide to make it right when i get out on the farm saw you dont want to take my song to their next meal so he can listen in hopefully bless our heard screams. And welcome back as the crow virus pandemic continues to take a toll on airlines more american carriers are cutting Flights United Airlines announced sunday they will reduce 50 percent of their flight capacity in april and may the airline said he expects flights to be at most 20 to 30 percent full down from close to 90 percent before the onset of the pandemic united stock is down more than 15 percent on monday alone and down more than 50 percent on the Year American airlines also announced cuts of 75 percent of their Long Distance flights starting monday and going through the 1st week of may in the u. S. Alone they will cut flights by 20 percent in april and 30 percent may now according to a report monday u. S. Or lives will ask for 50000000000. 00 in assistance to ease these losses meanwhile in europe German Airlines and their subsidiaries announced they would cut long haul seat capacity by up to 90 percent with european flights only operating at 20 percent capacity things could get worse for airlines as us acting Homeland Security Homeland Security secretary chad wolf said all options remain on the table in response to a question of whether the Trump Administration is contemplating a complete halt of domestic air travel. Meanwhile the president of the European Commission proposed a restriction of nonessential travel to the e. U. Today our g 7 tartness that we propose to introduce a temporary restriction on nonessential travel to the European Union why thats because we seemed nonessential travel should be reduced right now to in order to not to spread the virus for those of. Us in the European Union or by leaving the European Union but also to avoid nonessential travel not to have more potential strain on our health care system. And has been as this and travel takes a hit due to the Coronavirus Oil prices are down yet again monday further denting the Global Demand for crude oil joining us to discuss all the chaos affecting the Energy Markets is r t correspondent. What exactly are we dealing with in terms of the oil surplus well at the moment we are facing the largest supply glut in history last time we had such a crude crude surplus was between 20152016 at 360000000 barrels but adam oh man that could reach between 801300000000 barrels so here are the few reasons 1st we had slower than anticipated growth in china so of course the demand was down then came the chrono or iris which really slowed down the economy and then brought down the demand for Energy Markets more bad news again for Energy Markets then all of a sudden when we had this pandemic and which has really slowed down the economy all of a sudden and we had the largest the biggest oil nations on the planet starting a or Oil Price War and then now in this by this supposedly really good news from the feds oil markets are just not reacting well the u. S. Benchmark has plunged below 30. 00 while international brant crude has crashed and. And also below 32. 00 per barrel so no matter what the u. S. Government is doing right now Energy Markets are just getting scoop spooked for there are just so you know good news at the moment for Energy Market and theres a service in the midst of all this the u. S. Actually decided to purchase crude from Strategic Petroleum reserves. Which really was or what we need to know about that well the u. S. Plans to buy 77000000 barrels for the s. P. R. Strategic Petroleum Reserves within the next 2 weeks now s. P. R. Has the capacity to hold about 713000000. 00 barrels not currently it holds some 635. 00 now the main reasons behind Us Government to replenish the s. P. R. Is to take advantage of course the extremely low oil prices and its also to give some kind of support to the u. S. Shale industry at 77000000. 00 barrels purchase that could bring that could give the shell industry about 2400000000. 00 now whether thats enough to give the shell industries some kind of relief thats very questionable because even with the 1. 00 trillion dollars injecting back to the markets we saw markets move very little so that still remains to be very questionable so at this point that brings us to our next question what can Energy Companies still gain well where can they actually profit at this moment well take a look at this chart im going to have to put up for you these are our u. S. Shale producers and they know they need they require the price of crude to be very high you know even some in the 7280. 00 range previously in previous years and thats the longer the case due to technological advances right we have hydraulic fracturing or our horizontal drilling so oil prices at the moment need to be in the 40. 00 range for them to make any kind of profit now shell producers have mostly budgeted it for 50. 00 to 65. 00 to make any kind of profit for 2020 by falling 50 percent this year at 31. 00 a barrel only. Handful of us shell producers can actually make any kind of profit and thats because drilling cost producers about 20. 00 per barrel to actually make any kind of profit so that leaves shell producers facing prices way above their costs or production and only a few handful of producers can even make and he could even stay afloat and like for example in north dakota theres only 6 producers that could actually still make a profit at this level in the permian only a dozen can and this is from a few 100 shell producers are were talking about and to give you an example like occidental they have their them one of the few that has their cars is below 30. 00 a barrel but this by their low cost advantage their shells are critter shares are being currently traded 12. 00 and thats about 65 percent down from previous years so even having such a low cost advantage its not doing Energy Stocks any kind of favor so the moral of the story is there is absolutely 0 good news happening right now for any Energy Company when oil prices are at this low and so we have theres a little bit of time left but i did one just ask you this i mean visit Oil Price War thats happening right now with this have happened had we not had the coronavirus and this completely you know shutdown of the airspace space i mean its not shut down legally its just shutdown where people are flying anywhere with this it still might have happened because we still had such a lower demand and asia so that we still had a crude prices are very low so biggest producers like saudi arabia like russia like iraq like to you a still needed to bring up the price of oil but never did they think by doing this it could actually get so much lower there are to correspond to thank you so much for me. Bob a cofounder jack ma is making good on a promise to send 500000 coronavirus test kits and 1000000 facemasks to america in his 1st ever tweet posted photos. Of a China Eastern Airlines jet loaded with pallets of test kits and masks headed to the United States the Jack Ma Foundation and the ali baba find foundation said they had previously donated supplies to other countries in need including japan south korea italy iran and spain ma isnt the only billionaire stepping up the bill and Melinda Gates foundation has also announced it would give 100000000. 00 to the effort to fight the spread of the virus other Chinese Tech Companies including 10 cent ticktock owner bite their heads have pledged resources to fight the pandemic as well. By this time you must on demand on the brand new. Smartphone and the Apple App Store t. V. Or streaming. T. V. App on album t. V. And online. And you can also find our coronavirus tracker on the portable t. V. Where you can get the latest news and information about the spread of the virus and as always check us out on you tube dot com slash start to see you next time. For the super cool for sure google to look like it was and is new york at the slow to ensure the. Deal and i mean the citys full wolf what you want to do it is nice and i will. Share the. So she and i as a nation from which says something to us and investors. I say oh shes a mother for 4 youve got the hood of the truck jumpers for. Your mom happens you know to try to predict. The. Problems. It was because of global what was going to have to close to this needs it in your voice do just of us have the flavor of us moving this focus of the funding youre fighting with the left or somehow. The left coast approaches and thats 4 to 6 months because in the south. Max geysers financial survival guide. Housing bubble. Oh you mean theres a downside to artificial mortgage through dr carried away thats cause report. Blushes and. More snow bleached he cut a hole close to the team your he said its not that its indeed some chance that all the shooting against. Them. Beautifully built in a circle included at least they used a little bit over my squad but im counting that in the scheme to show. Form which will leave you shirleys. Beautiful spot to the south korean these are still some the tea from corn summed up. The money of which of the british mr bush starts a little sooner because. Of these Headline News global stocks nosedive as best as panic over the coronavirus the us market suffering its worst sell off in more than 3 decades. The rest of the world overtakes china and confirmed deaths from the virus because nations now seeking beijings advice on the best. Russia is among the latest countries to close its borders to foreign nationals in a bid to slow the spread of. Global stock markets the latest kaiser report