American family is not going to tell you that inflation is running too low so how would they be able to actually combat this. Well they say that they want to get inflation up to a certain range and that is code that is fed speak for saying we want to keep Monetary Policy easier for as long as it takes to get up to that 2 percent bogey and what how investors rightly read that message is that theyre going to continue growing the Balance Sheet and if need be and we know that the need could could be happening with the coronavirus shock to the to the to the economy not just in china but here in the United States if that means further rate cuts in 2020 that is certainly what the markets have begun to price in now speaking of how does the f o m c participants view the corona Virus Outbreak is this a threat to Global Growth and if so how much is there a cause for a material reassessment in the outlook and what would that possibly mean for additional easing next year or this year. Well so i think that the coronavirus is in a way i think the fed is treating it similarly to how it treats the trade war that its going to be a depressant on supply chains but we also have to bear in mind that were some of the largest importers of chinese goods in the world and theres also going to be a supply shock when back to School Merchandise doesnt get here as we thought that it was going to be the case of the fed could could be carefully treading into getting the inflation it does not want so again i think that the coronavirus has the potential to act as an external shock and force the fed to cut rates again while it keeps growing its Balance Sheet at the same time. If we dont get these easing measures the christies talking about here in the fed decides to slow down and stop expanding its Balance Sheet the u. S. Equity markets will stop making these new all time highs every couple of weeks i think even today we had the nasdaq hitting record highs. Because theres nothing actually pumping it up any more are we going to see the correction then and at that point is it actually too late were falling off a clue. Well you know it remains to be seen because right now the fed is playing with fire youve got continuing jobless claims the number of americans collecting Unemployment Insurance thats been going up year over year since october so for months in a row the most recent job openings data show that 73 percent of industries 73 percent of industries have fewer job openings over the same time last year so again like i said the fed is playing with fire because there are some fundamentally weak underpinnings to the job market to the. U. S. Economy that could push push employers to start writing more pink slips and then theyre going to have a real problem on their hands if you combine that with the shock of the coronaVirus Outbreak so to essentially sum it up right now the fed is playing with fire and you dont believe that theyll be able to keep their word of stopping by april. I doubt that the fed is going to be able to keep their word and pull the plug they contrive will see what happens every time they take a baby step back you know sure enough the stock market also takes a baby step back as if to say dont try me fed because im going to disappoint you if you try and unplug all of this massive amounts of liquidity pushing the momentum stocks higher on a daily basis and would they have any additional tools in their tool kit in order to stop the stop the market from crashing once they do take their hand out. Well i mean its very difficult because if youre talking about negative Interest Rates or the fed possibly buying Corporate Bonds or stocks these are things that require congressional approval and congressional approval typically comes when the economy is already in the soup when youre already in recession so the fed could find itself very much being behind the 8 ball on this and again this is this is a monster of their own creation this is frankenstein of the feds making theyve put themselves in this book carious position scary outlook for the future dammit danielle de martino booth former fed inside it thank you so much. Thank you. And china announced on tuesday it will begin accepting applications for the tariff exemptions on roughly 700. 00 products imported from the u. S. Including pork beef soybeans natural gas and crude oil now the news comes as the country fights the corona Virus Outbreak which we just mentioned that has infected tens of thousands importers will have the opportunity to apply for the exemptions starting on the 2nd of march according to chinas Customs Tariff Commission of the state council now the exemptions will only be in place for one year and each application would need to be complete complete the approval process now meanwhile the coronavirus is taking a toll on apples business the i phone maker warned on tuesday of lower sales in the Current Quarter due to the viruses effect on their supply chain which has caused the companys stock to plunge by 2 percent shaving nearly 434000000000. 00 off the companys market value but were not here as is generally the case in big tech apple was able to recover the majority of those losses by wednesdays market close. In an effort to mitigate the perceived risk of Chinese Telecom giant huawei the u. S. Is urging even to consider using alternative competitors for their 5 g. Build outs specifically Ericsson Nokia and samsung who claim they are on par with and just as good as technology wold claim considering that huawei spent 15000000 dollars last year alone on r. And d. To help it achieve market leadership and has already started work on 60 mobile networks we sat down with any party chief Security Officer of the usa earlier this week who said this. Can handle more speed more amounts of data in terms of latency we are at the front end of the of the latency of the shortening of the Response Time and in terms of multiple devices we. We can service a whole lot more devices and our equipment provides a much smaller Carbon Footprint so the Energy Efficiency can be absolutely tremendous and at a much lower price point as well and interesting idea that was recently floated by the u. S. Attorney general William Barton order to combat the rising power fall way is to have the us take a controlling stake in nokia and ericsson now thats an interesting idea but the optics certainly dont look good here especially when the u. S. Is already accusing qua way of being a front for the Chinese Government now this is just plain hypocrisy at its finest to suggest such a desperate idea the legal battle also continues for a while 1 as it is charged by us with bank fraud and vialli sanctions against iran while away retaliates claiming u. S. Prosecutors overlook violations of u. S. Sanctions against iran by the h. S. B. C. A claim that h. S. B. C. Continued to process around transactions there is New York Branch and conceal the conduct from the Court Appointed monitor holway is now seeking documents from h. S. B. C. Of the investigation into the company and reports from the monitor which it says quote appears certain to contradict the allegations in the indictment this comes just one a u. S. Judge rejected a separate lawsuit filed by a fall by challenging the constitutionality of a law that banned federal agencies from buying its products the judge ruled that contracting with federal government is a privilege not a constitutionally guaranteed right deal a major blow to holloways broader strategy of fighting washingtons pressure campaign. Kristie its fascinating because you know we see a lot of these. Cases brought up in courts here in the u. S. But did well i really think theyre going to be able to win a court case in a federal court here in the United States when its our government who is actually ruling against there is already you know going against them as it is i think what it did was it did manage its image that it is working within the u. S. Legal framework in order to bring a very important fact in order to challenge the fact whether this is or is not a constitutional issue and even though they lost the court case. They did bring up some very interesting points to all the listeners who actually listen to their case on what they presented when they presented solid evidence in kit in that case they show that theyre willing to work within the framework of the system so that this shows that in future cases you can say that huawei is doesnt follow rules that it just does its own thing that it plays outside the bounds that no longer applies because that shows that they are willing to fall the rules dictate it in american legal structure and like them or not i mean when any party was actually in studio yesterday he was trying to do that he was trying to say here look were playing by the rules were trying to do this these are the these are this is where we are everything and this is where the government believes we are but it felt like it was open and honest and they were trying to do their best to move move things forward yes so its actually very interesting when you see a company being so transparent specially america when you have other companies such as rising t. Mobile all these other companies that were actually caught gone under indictment in recent years for such things such as blackballing competitors squashing competition and all of that stuff so its actually really interesting to see a Chinese Company coming in and opening their books and say hey we are happy to compete bring it on well show you that while the where the best and of course if you missed the full interview with the full show this week with any party from while away the chief Security Officer while we take knowledge is usa you can catch there on port of the portable t. V. App and of course at youtube dot com slash boom bust r. T. Its time now for a quick break here because when we return the u. S. Has now sanctioned Russian Oil Giant Rosneft as the nation has ramped up its efforts against venezuela will do a deep dive into the penalties and what it means for the petro sector and as we go to break here the numbers at the close. This 10 year period of 0 money velocity where money has gone directly into the pockets of the few oligarchs and countries the doors of america and around the world in these silos like these 12500000000 Dollars Properties when they when the infrastructure for that starts to crack and the liquidity starts to see balance you get inflation for real for stuff like food and were seeing this happen now where people are noticing that the cost of every day living is starting to spike higher. This is a pretty you would know to move through market in your circles modest you. Need a move that would be much for the group with a little would have made it to do more when theyre. Looking. At. The white in good part of the unit already in the instruments but you made it seems the choice. To be. That is that. What holds his hands to you so. He put themselves on the line to get accepted or rejected. So when you want to be president or injury. Or somehow want to be rich. And to try to be for us this is what will befall 3 of them or cant be good that im interested always in the waters of our. Pursuit. And welcome back the United States on tuesday and sanctions on a subsidiary of Russian State Oil giant ross now after claiming the company helped the venezuelan government circumvent an american oil embargo now the u. S. Treasury department placed the sanctions on trading as a geneva based trading arm of rocephin claiming actions from the company aided the government of Nicolas Maduro now much of this stems from the u. S. Decision to recognize one of why go as the rightful president of venezuela over medoro u. S. Special representative for venezuela Elliott Abrams spoke about the decision on tuesday this is a campaign of pressure and it began. 55 weeks ago. And it was over a year ago continues to mount. I would not say that any individual steps. Can be calculated to bring an end to the crisis but i think this is a very significant step and i think you will see. Companies old with the world oil sector now. Dealing with rosneft trading. And venezuelan foreign minister. Said the action was unilateral claiming that the u. S. Continues quote attacking the venezuelan people. And joining us now to break this down as professor. Understanding socialism and host of economic update 1st of all thank you so much for being here i want to get right to it what do you make of these sanctions that are affecting rosneft. Well i think in an earlier program of this of our show here we talked about this ever since the sanctions put on russia after its activities in the crimea and with ukraine. The graph simply goes up the russian economy has been doing fine and i think it goes to show that whatever the effect of these sanctions and i assume theres some negative effect they are marginal they do not change the basic layout russia has not returned the crimea has been changed its activities in that part of the world in any significant way mr abrams talks about the many weeks and steps of pressure but the fiasco of the United States supporting one why it all and being unable now for a long time to get anywhere with that effort which is an interference in another countrys internal affairs goes to show you that these sanctions are mostly acts of frustration because the implying country the United States is not getting very far with its plans and its theatrical for your own supporters because its a sign youre doing something when in fact nothing youve been doing has worked. And now i want to address the timing of all of this these sanctions kyra came as russia and belarus have been locked in negotiations with guarding all supplies so is there any coincidence in the timing of all this. I wouldnt call it coincidence but youre absolutely right youre looking at the context which is the International Oil market and absolutely it plays a role here they sickly the problem in the oil market for the Oil Producing countries and companies is that the price of oil has been too low d for many of them to be profitable ill give you one stock example the fracking sector here in the United States is in desperate trouble because it has borrowed hundreds of billions of dollars to drill all those wells on the premise of a profitability which requires oil to be at a higher price than it is now anything the government can do anything that happens in the world to brive up the price of oil help stabilize the underlying anxiety that that whole sector could go belly up because they cant cover the debts that theyve accumulated so i think youre seeing here by sticking a little bit to venezuela you do something to depress build up the price of oil which has become even more urgent because the coronavirus is cutting activity around the world and that decreases the demand for oil which pushes the price down so that is also playing a role here and no as you mentioned a few weeks ago we had you on to discuss that at that exact report which claimed that russia was thriving amid sanctions and doing them could create some economic turmoil now if you remember if i remember correctly you werent always exactly on board with that exactly that exact line of thinking here but i mean what are these specific sanctions on russia that they are they going to have any impact on the nations economy or is this just kind of a. Like you said more of a political move here its more of a political move its more political theater its to give the venues whalens who are very disappointed those that support why go those that are enemies of madieu are already has many of them inside that as well and they had been led to believe the United States was going to come in and fix all of this and put them into power a little bit like what happened in bolivia all thats been disappointed the United States has been on able to do that missed them a dural remains with the support of the military and large sections of the population so this is an active choice were still added to an otherwise wondering population and not just in venezuela but in the rest of latin america as well and theres one more issue much of the oil that venezuela markets around the world is not being technically sold it is be used to pay debts that the venezuelans have gotten theyve gotten big loans from india from china from other parts of the world and they pay back the loans principal and interest by delivering oil so heres the irony when the United States blocks them from doing that they can go to the people they borrowed from they already have the money that they borrowed and explain we cant pay you back for a while its a little bit of a back handed gift to the venezuelans which of course Elliott Abrams doesnt want to explain so professor wolf doesnt and i was actually going to go right to the exactly what you just said there which is theyre paying back loans but doesnt that specific situation then i mean youre not really messing with the economy at that as well as much youre saying like you said they dont have to pay the loans back but now what youre doing is messing with china russia and any other nation who has those loans out to venezuela youre hurting their economy by saying shinning venezuela and obviously now youre saying russia on top of that but. So this isnt really working the way they plan is it. No i think its making worse their relationships