Transcripts For RT Boom Bust 20240713 : vimarsana.com

This is one business show you cant afford to miss washington. U. S. President donald trump has already been executive order aimed at social media giants fact check on a twitter feed what consequences will the move have Going Forward. Markets are still on the rise but kind of fell late in the day despite mass unemployment in the United States when a lot of the spike in markets this week and we also dig into the rising tensions between the u. S. And china and later told at 19 outbreak has caused a major disruption in the travel industry particularly airlines as we dig into the struggles of this sector we have a packed show today so lets dive right in. And there is a big move coming from u. S. President donald trump the president will reportedly target facebook and twitter in an executive order regarding social media according to a draft that appears if leaked online now the draft version of the order which could still change names Facebook Google and twitter and targets a section of u. S. Law under which tech platforms largely are liable for what theyre. Users post and are fairly free to police content joining us now to discuss his boom bust cohost investigative journalist of course ben swan now ben theres a lot on pack air what exactly is the rule that President Trump is attempting to amend and why is the actually doing that and how big of a deal would it be for these social media companies. Yes so for started at the very end there its a very big deal its actually something ive been calling for for about 2 years the president now talking about whether or not he can or cannot do this the truth is we dont even know if the president can do this lets talk about what hes trying to do so what the president is trying to do is issue an executive order that would essentially clamp down on companies that are using section 230. 00 of the Communications Decency act to protect themselves with online users essentially what section 230. 00 does is it says if youre a platform like twitter or facebook or you tube you can exist as a Company Someone comes on your platform and they post something that some supposed to be there whether its a copyright issue a piracy issue or they you know theres hate speech or whatever it might be the platform on which that content is posted the company cannot be held liable for the problem is that and this is what ive been saying for the last 2 years is that the problem is that Companies Like facebook and twitter have been not acting as platforms but they shifted after 2016 to become publishers in fact Mark Zuckerberg in front of congress repeatedly referred to facebook as a publisher meaning that they are actually liable for everything that goes on their platform thats why come Tech Companies think they have the right to police and control whats on there so the president had a couple tweets that were fact checked by twitter it made him angry and now he says hes going to issue an executive order to clamp down lastly on this 1st part the big question is whether or not he can legally do that it would have to go through the courts this is a congressional issue and the president im not sure has the authority to do what i do think though that congress should do it and then the question also becomes i know that the president s executive order that would kind of put a lot of things in the hands of the federal Communications Commission correct thats where a lot of this would be redrawing. The f. C. C. And also the Commerce Department apparently apparently he wants the Commerce Department to have more access to crack down on these companies as well not exactly sure how it applies to commerce other than the fact that it crosses state lines i suppose because its internet but thats apparently one of the agencies that would be looking at you know this wild west of the internet and social media obviously has been around you know. 1520 years now of this type of stuff but we still are in a situation where we havent been sure to how to characterize it as you said are you a publisher or are you social media what are you and it seems like this just gets more and more complicated as we go. Well it does heres the problem is that up until 2016 i think pretty much all the Stock Companies were just platforms you could go on to facebook you could create a page you could post content on that page and people wanted to see it they would follow you they would like it in they would see it the problem is since 2016 facebook shifted twitter shifted and you tube shifted and they decided that they needed to police content on their platforms and control what was what people had access to and i dont think that weve seen anything like it as dramatically as we have during the past few weeks during this coronavirus pandemic we are seeing an immense amount of content being filtered and sincere and controlled you tube the president of you tube or the c. E. O. Excuse me came out and said just a couple weeks ago that you tube would take down any content that contradicts the w. H. O. How does a journalist supposed to feel about that if youre told if you do not agree with the w. H. O. Which by the way as you know brand doesnt always agree with itself the w. H. O. Have issued you know guidelines saying you dont need to wear masks and then 2 weeks later that you do need to wear masks well which what is it so the problem is is that information especially when it comes to journalism is always changing now there are facts that remain but as new information comes out journalists provide new information and this idea that everything is static is a very strange idea thats being pushed by Tech Companies right now and it certainly doesnt apply certainly to journalism now twitters head of integrity your wrath is in charge of developing in enforcing twitters rules like the one that led twitter to actually slap a new misleading warning label onto a president tweet concerning concerning nationwide mail in balloting on tuesday now is that misleading label what is driving the president s action here well it is it was because 2 of those tweets were labeled as misleading information thats what twitter is using facebook uses a different term they say partly false information is how theyre doing it twitter essentially has an internal system but the guy who actually is the head. This people of an earth tweets from him in the recent months in years where hes been extremely critical of President Trump has attacked him in a lot of very you know personal ways that dont reflect necessarily journalism and so heres the problem the problem is when you have an internal system inside of twitter that says that we will control essentially you know the information that goes out there is people involved in that and whenever people are involved now you have bias involved and so you dont have a a clean slate at all to be able to operate from that doesnt mean that the president s tweets werent misleading it means the socalled Twitter Police who control it are policing maybe one side but then they dont Police Another point of view look the same thing is happening with facebook but they spoke does is instead of having an internal system theyve now set up a Supreme Court where you can it would that ultimately decides if facebook actually calls it that there Supreme Court to free speech which is insane and then on top of that they have these different Fact Checking partners like kalid a factor usa today but ill tell you ive had 2 stories that have been since are my political act in usa today in just the past 2 weeks and in both cases neither usa today nor political fact actually fact checked my information in fact the political article specifically stated the are there the report that i did the 15 minute report which we did not fact check so this whole concept of Fact Checkers and whos doing the Fact Checking has made these companies and completely open them up to attack and i think that they have put themselves in the crosshairs and now President Trump is going to squeeze the trigger and i bet i want to hit this last point before we let you go here you know facebook c. E. O. Mark zuckerberg actually told me see this morning i know you know its coming it is not think social networks should be Fact Checking what politicians post however his platform as you just mentioned fact checks journalists it and i think i have a broader question about this band which is this a little bit of twitter versus facebook that weve never really seen in the. We only see it when it comes to these policies is that whats going on here i think thats part of it look mark that one of the other differences between twitter versus facebook on the issue of politicians is that twitter makes almost no revenue from political ads and facebook makes about half a 1000000000. 00 in one year from political ads theres a big difference in terms of revenue facebook always a half a 1000000000 thats nothing for us but they dont act like its nothing and the idea make your head explode by thinking about this Mark Zuckerberg says politicians dont need to be fact checked but journalists have to be fact checked by non journalists on facebook in order to exist does that make any sense at all what hes essentially saying is if youre in a position of power we will fact check you but if you attempt to hold those in power accountable youre the ones that were watching boom bust cohost ben swan we will follow the story and bring it back to talk about it thank you so much thanks for. The u. S. Economy contracted in the 1st quarter of 2020 by a faster pace than initial estimates according to a new or 2 new data from the Commerce Department Gross Domestic Product fell by 5 percent from the year prior for the month of january through march of last month the number was estimated to be a 4. 8 percent drop over that time frame but was revised down now this marks the biggest quarterly decline since the dive of 8. 4 percent in the 4th quarter of 2008 now as home orders persist in the u. S. Some economists estimate the economy could shrink by between 30 and 40 percent for the 2nd quarter of 2020 meanwhile more bad Economic News as the 1st time unemployment claims in the u. S. Hit 2100000 for the week ending may 22nd claim since the beginning of march have now eclipsed 40000000 for more on this in the state of the economy and what markets are doing on thursday lets bring in blue bus cohost Christine Christie thank you so much for being here as always now the u. S. Economy shrank by a faster pace as we just mentioned but the real question is up until about the final hour of trading markets were up today and theyve been up all week whats going on. Well right now there is this very heavy rebound narrative that is driving that sounds and some think that this squirrels will rebound sharply in the july to September Quarter but there are a couple factors are playing out in this risk on ships the 1st of all you have the fiscal stimulus acceleration from europe and germany that we talked about yesterday this is huge and this is a very big shift away from its very traditional very conservative stance so that you also have the ongoing rush to reopen the Global Economy mobility and credit card data our national indications that American Consumers are trying to return to normalcy and then of course finally have the nonstop helicopter money that is artificially putting a floor onto the entire Market Driving traders to flip the switch and start buying in order to cover shorts but despite all this despite the markets now going above the 3000. 00 again in the s. And p. Big money still remains sidelined in this rally so you can see that in the data the flows data the hedge funds and the large Asset Managers have not been participating and they have instead pushed their net short positions on the s. And p. Futures to the most aggressive stance since february of 2016 so right now this tells you that the majority of this rally its being bought by Retail Investors which is exactly of what happened if you recall just a few weeks ago when all the Oil Speculation trading was played out that was driven and then crushed with retail traders Retail Investors taking all the losses and now we just mentioned these unemployment numbers and while its higher than expected once again the market still really taking it as a good sign why do you see that. Its funny how the markets try to put an optimistic spin on things sometimes by saying this is bad but not so bad in comparison apparently so in this last week 2100000 more americans filed for Unemployment Benefits for the 1st time now this brings the 10 we are told to about 40770000 which is dramatically more than any period in American History so now while these figures are quite disturbing the fact is that the carriers bailout itself has been a contributor and all of this the keris act increased the eligibility for jobless claims to selfemployed and get workers and extent of the maximum number of weeks that one could receive these benefits so this created a lot of incentives for some businesses to furlough their employees knowing that they will all be covered by nan chalet so anyone making below about 50000. 00 are for the most part made whole so you have a lot of people who are happily taking Unemployment Benefits now as theyre receiving war that they have ever made or when they were employed so ill obviously these numbers arent great but there is a Silver Lining and that is the continuing claims or the measure of by those that have been collecting for at least 2 weeks that number has now dropped by 3800000 from the previous week so this decline in continuing claims suggests that businesses are rehiring some people back again especially in states that have reopened so it very well may be the case that we are seeing a bottom in unemployment and were nearing a turning point now chris i want to move on to you know the kind of the topic of your lately the u. S. And china appears to be escalating into this cold war but that is not what china wants according to the chinese premier was one of those are being we have all along rejected the cold war mentality and decoupling lines were Major Economies of the world will do neither side got to religion that will also harm the world. It appears also that President Trump is going to be giving a News Conference on friday afternoon to discuss the situation with china a lot having to do with a National Security law a law that is being put in place in hong kong at all as well but what is the latest on this situation in the cold war between china and the u. S. So it seems like china is trying to diffuse the escalation and this comes after the transmission to a plan to cancel the visas of thousands of graduate students and researchers in the u. S. So china will have to take their bids us cancel that will be expelled while those are already outside the u. S. Will not be allowed to return so the purpose of this apparently is to clamp down on spying and intellectual property that it is expected that there will be significant pushback as Chinese Student enrollment is a big source of funding for institutions over 360000 chinese nationals attend u. S. Schools and annually generate Economic Activity about 14000000000. 00 largely from tuition and other fees so now while the u. S. Continues to try to escalate the situation china wants to take a step back and it doesnt want to decouple an escalating to a cold war hong kong right now is the main battleground so this rivalry between the u. S. And china just escalate on all fronts from technology and i. G. N. Ai over to politics to trade and economic so its just a mental difference in ideology that isnt easily reconciled boom bust cohost christi i will have more about this friday thank you so much for your insight. Thank you. Time now for a quick break but hang here because when we return the kowtowing to an outbreak has caused a major disruption in the travel industry particularly airlines we dig into the struggles of the sector as we go to break here the numbers at the close. The. Every single culture on earth has prohibitions against. At the same time virtually every culture on earth will reward you enormously if youve killed the right person in one setting it is the most horrendous down machine seeing the match in the world and in the other setting him saying. You know what she couldnt have she told me yesterday. But you might its always at the k. It was a. Moment. Not so much you know we didnt see immediately it was taken to the us but we didnt get the clue to the. Smithsonian bush knew it the new capital. City they. Just. Say. Yes but. Tough and i mean another one of the highest a month long way to go through a food. Bank itself mukti about. Closing this way got to dog so hard not to think of the mother describe this woman the work they call it and i know mr upton if. This is the only thing that we do is music because everybody fights a useful way. To. The floor you can fall to the feet of this wolf this would be a whole movie about a dog with a payment on the. What i think is this is the funds that is all come from. Welcome back a 9000000000 euro bailout of German Airline new phones is up in the air as the companys board said it is quote unable to approve the rescue due to conditions put forth by officials in the European Union as part of the deal the German Government was set to take a 20 percent stake in europes 2nd Largest Airline and maintain the rights to just over 25 percent to block any attempt at a hostile takeover but the point of contention comes as brussels suggest the airline must give up some takeoff and landing slots at airports in frankfurt munich to break all that sound was joined by r. T. Correspondent peter oliver from berlin peter thank you so much for joining us at this point what are the prospects of this bailout actually happening. Its probably going to happen needs to happen if you really look at the state is full of toms point of view it isnt going to happen just yet and that all comes down to the 72. 00 prime time takeoff and landing slots at germanys top 2 airports thats frank and munich frankfurt sees just over 70000000. 00 passengers a year certainly last year around 50000000. 00 for me you know the e. U. Commission competition regulators they said they would allow the 9000000000. 00 German Government bailout tons and tons it was to relinquish these slots on a permanent basis so that was on monday tuesday wednesday the board of love tons they got together and they said its not really going to work for us we dont want to give those up on a full time big. What about if we did it temporarily they actually said in a statement that they were going to assess the Economic Impact of giving up those slots they also said in that same statement that this bailout was the only viable alternative to essentially the Company Going bust senshi this is going to come down to who blinks 1st lufthansa doesnt want to give those slots up on a full time basis the e. U. Commission who usually have incredibly stringent rules when it comes to this type of thing how of east these things slightly in the post trying to get things back on track after corona basically tons has got a good deal to make it a better deal for themselves does seem like there will be a deal at some point in the future is just a matter of when so where exactly the. Airlines operations have been reduced to one percent of normal operations amid the pandemic. Well it leaves them annoying every other airline it isnt getting one of these bailouts one of the major low Cost Airlines and Europe Ryanair based out of out of ireland theyve been very vocal particularly their c. E. O. Michael oleary Michael Oleary never backwards about coming forwards hes described this bailout is another example of illegal state aid as he puts it saying that it will give lost tons of it unfair advantage in the marketplace the German Economy minister though hes the one thats been signing off a century on these checks that they put forward this 9000000000. 00 bailout he says the reason the German Governments getting involved is to keep essentially an Aviation Institution in german hands. And that. Is one of the most traditional german as well as. We have done a convincing signal free market economy but also for the federal governments will to defend the technological and economic sovereignty of this country. Well the German Government for the head 9000000000. 00 euros 20 percent of the rice to 25 percent plus one share in the event of a hostile takeover. Not a case thats the only way that the German Government would get a vote on the love tons of gold the plan is for the German Government to sell whatever share it ends up having all of that by 2023 by the end of the year this is very much being looked at as a temporary bailout a temporary presence i beg your pardon on the left on the boat r. T. Correspondent peter oliver thank you so much for keeping up on the story and give us that update. And for more on the state of the Airline Industry amid the pandemic lets go ahead and bring in gary lef author view from the wing and gary i want to start with this actually situation with the phones as we just mentioned it appears theyre going to refuse the bailout terms with the e. U. How big of a deal is the for them to lose these spots as peter just mentioned and really what does this mean for live thousands of customers. Well 1st of all i mean i think we really do expect a deal to happen but obviously the slots are incredibly important a little confidence to the extent that theyre going to play chicken with 9800000000 dollars you know world where there are planes flying and you know airport operator at capacity these slots are very valuable to the airlines to their business d theyre basically stayed in their own right because the government is given the for not saying the right to take off and land wind and exclude others from doing so that is a way that they are an outsized returns on your normal operations and then also frankly the government will get their ability to sell their shares for something close to what they paid for them and now i want to keep on the theme of bailouts here because in the u. S. As capacity has to be limited are we going to see u. S. Airlines actually asking for more of a bailout after the one we received back in april because when you look at the airlines were in exactly giving consumers of break at the height of air travel but now they have asked the consumers or the taxpayers here in the u. S. To bail them out to keep them afloat and what do you make of all the situation. You know i dont think the earliest point in knowing it could lead to position themselves for more money if theres more being handed out theyd like to be a recipient already of the u. S. Has supported its Airline Industry no more than anywhere in the world on the order of 25 percent of you know prior year revenue which is about 2 to half times what weve seen in europe so its certainly a significant us thats been made on the other hand though they recognize that the cares that restrictions on laying off employees are going to lift one month before the president ial election the airline lobby Shop Airlines for america has already mentioned to congress a desire not to have to ask for more bailout money which is a way of preceding the argument and so you know positioning themselves with the recognition that the. Airline industry is going to be shedding employees is in some ways setting themselves up for more money but it seems like thats going to be a very unpopular and a. Likely ability to get Something Like that done given the amount of money. And frankly because the earlier industry is going to be right thing it will be smaller in the future and the airlines will need fewer employees Going Forward and so more government aid to the airlines rather than the people who are going to be ultimately transitioning into a new position somewhere else seems like an inefficient way to helping people who are affected by this and that and now gary were seeing a new report from the United Nations World Tourism Organization saying global tour with tourism is going to drop by 70 percent in 2020 due to the pandemic other issues of cause a drop by 10 maybe 20 percent but this pandemic is really taking effect as you know what is going to have on me and history as a whole and like you said i mean things are going to quite bounce back but what is air travel really going to look like when things go back to what will probably be the new normal. Well thats a 1st of all i think you know its not like you flipping a switch when you see numbers like 70 percent fall you know international you realize that your trouble going to come back or more quickly to mess to clean than it will be internationally because there will be continue to be restrictions that many countries have in place on international travel. To come back to or leave your travel for Business Travel with Business International clearly being lost and a lot of Business Travel centers around things like conventions and large group of bet to take many years in order to plan. These are going to be the last ones to come back because a large group answer going to be the target theyre not valuable until they know that everyones going to show up for that so its going to be growing im sure the ins wont recover gary left author of you from the way i had a whole bunch more for you but well have you back really soon thank you so much for your time and thats it for this time and you can catch blocks of a brand new portable t. V. App the next time. Join me every thursday on the alex salmond show and ill be speaking to guest of the world of politics sports business im showbusiness ill see you then. Because you give me that much as they call a couple gets to see him and we said you just said honestly how long. Is enough. But im also the most companies you know so im going to give this is it a. Little emotional when i meet. People in the school yeah you know because you didnt you know its just you do as you see as. So you get your uncle. Someone gets you from a. Museum in the little you kind of them is. Fit to. Go to your list. Because he. Wants a clip of she will be more use to you. But the k. It was. More what. You needed me to. Take with us the mood at the. Smithsonian bush knew it didnt look at him to. See the. Yes. The. Yes what he. Said not about the rest in minneapolis to the Police Station told by protests in south fieri about the dead can Police Custody of a black man white to cross the United States. And france will further relax his lockdown starting during the 2nd easing restrictions on cafes honks and travel inside the country. On the new study shows us 13 prescriptions for antidepressants in the u. S. With doctors raising the alarm about the risks they have addiction