Transcripts For RT Boom Bust 20240712

Are projecting a deeper downtown in 2020 and a c. E. O. Of a company in 2021 to growth to 2020 is projected at minus 4 point one percent which is 1 point one percent points below our april focused now this reflects the fact that in the 1st tough economic outcomes came in somewhat worse than we had anticipated and because there was no medical see you should we are expecting social distancing to persist for more for a long time into the 2nd half. And downgrading the growth forecasts 242021 the i. M. F. Expects a growth rate of 5. 4 percent instead of earlier estimates of 5. 8 percent the fund is predicting an 8 percent contraction in the United States in 2020 while the eurozone economy will decline by 10. 2 percent brazil will take a 9 point one percent hit with the economy of mexico shrinking by as much as 10. 5 percent just this year now the Organization Also pointed to a catastrophic toll on the labor market due to the pandemic saying their client in work hours for the 2nd quarter will be the equivalent of losing 300000000 full time jobs worldwide the funds chief economist also spoke about the unpredictable nature of the pandemic making it difficult to judge where the worlds economy will head in the near future so there is tremendous uncertainty around the full cost on the one hand you could get positive news you could have this news on that scenes and on treatments and greater policy support and that can trigger a fast as a cavity but on the other hand there are important Downside Risks to ease that the virus could come back up you could have financial tightening that could lead to dest distress. And for more on this lets bring in some expert analysis from c. E. O. Of Quill Intelligence and former fed insider daniel de martino booth and host of economic update professor Richard Wolfe thank you both for joining us today that professor wolf i want to start with you here what do you make of this latest Global Forecast from the i. M. F. Is this what you are seeing in the worlds economy or do you think it might be much worse and what are you looking at when it comes to recovery. No i think my hat goes off to the i am after being able and willing to correct their own. Now we can see room g. Projections and to take into account i was serious. Im in that relationship probably going to tell my colleagues here the United States that this is the worst collapse of capitalism since the Great Depression of the night there. We dont know how deep it will cut we dont know how long it will last or one thing we know for sure is that it is already the most severe contraction and if history is any guide the ramifications of that with us and hurt us 3 years to come and no danielle the i. M. F. Chief economist also spoke about the role of Central Banks in fighting this economic crisis as well. Substantial monetary and fiscal support we need to be continued but appropriate safeguards should be put in place the should be proper fiscal accounting fiscal transparency and when it comes to money policy Central Bank Independence has to be maintained and with the i. M. F. Advocating for Central Bank Intervention danielle if this is going to be the new normal for the foreseeable future. You know i cant see a different path forward that the Federal Reserve for one has had such an impossible time trying to extricate itself from its very large Balance Sheet its attempt at quantitative tightening failed and the fed was it was the chief central bank on planet earth that was able to normalize the most for as little as it accomplished headed into this next crisis when we saw that the European Union went into recession with Interest Rates are already in the negative the same goes with with japan so i think to the i. M. F. Point there its going to be very difficult for Central Banks to step back from where they are given the projections for how long this this downturn is expected to be were not expected to get jobs back for years and years to come so i think that the Central Banks will become a permanent fixture of sorts and now were hearing a lot of bubble talk of the earlier this week we talked about Jeremy Grantham the investor who called the last 3 financial bubbles saying that this bubble is the real mccoy as far as bubbles go and youre do any of your do any research in that if the fed continues to flood markets with liquidity it could risk the greatest financial bubble of all time now do you know is this a real concern of the fed actually worried about this bubble bursting or are they just trying to keep everybodys head above water at this point. So i think right now the fed is is its the latter the fed is trying to prevent this bubble from popping but the problem is that in doing so its unleashed all kinds record junk bond issuance even as companies are being downgraded to junk theyre issuing bonds on the open market weve had the most brisk few days in high yield issuance in history we tacked on over a trillion dollars of debt to an already over indebted Corporate America Balance Sheet so were setting ourselves up for a monumental decline and to your dennys point this truly is the mother of all bubbles and if the fed doesnt have some kind. Internal recognition of this maybe not external maybe theyre not speaking about it publicly but internally there has to be a tremendous amount of discussion about the potential ramifications of a 2nd wave of reclaim the u. S. Economy and what thats going to mean for these lofty valuations you know professor of i want your opinion on all of this fed intervention what are you looking at here do you buy this as the biggest financial bubble in history. It sure looks like it and i would have to argue that we are in one of those very dangerous situations whether Federal Reserve cannot stop supporting the the Financial Markets because it has tried and they choose not that even the last few weeks of cutting that at had already troubling results they cant stop it but they realize that if they dont they are in fact a rising stock market at the same time that the underlying economy is going extremely other way it would be hard to imagine this having a happy ending and i think it speaks to a level of problems that have not been that are blowing up inside of our economy and that i want them this system can cope with and thats the future i think weve raised and now on this show we often talk about how the stock market is not actually tied to the economy but but we constantly see movement on Economic Data and when the u. S. Equities saw substantial losses with news outlets attributing it to obviously the increase in covert cases that were seeing here in the United States and this Economic Data from the i. M. F. Then you know what what is really going on here what are markets reacting to i mean after weve seen is this really just a normal ization after what we saw this last week with some pretty substantial gains. So i think a lot of us in the world of economics these days rely on at data so to speak anecdotal data and i can tell you that the drive time to the studio is half of what it was just 2 weeks ago this afternoon and that weve seen reservations in route restaurant reservations in many of the cities that have reopened come crashing back down as people say begin to shelter in place doesnt matter if the government is mandating it a lot of people that theyre seeing the data these are some of the the highest income earners in the nation and theyre deciding to call. That is their pocketbooks up again and to shelter in place once again this is going to have a ripple through effect on the economy and i think thats what markets are reflecting most of all today professor wolf what are you saying i mean weve saw this record run in tech i obviously again when we talk bubbles tech is obviously there just keeps going up and we saw that record run actually kind of and today as we saw the markets not i dont think plummet but we lost what 6700 points on the dow what are you seeing here when it comes to the u. S. Stock markets i think i see extreme anxiety just and your other guest pointed out reservations at restaurants currently backwards and that. Investors everywhere that you ring out for trying to game. Out on the wrist upswing funded by the last and how soon will something happen whether its in the damage or whether its in the underlying weak economy to make people begin to think like cutting the reservation they want to cut their exposure to the market and once that begins with the loss the level that had been funded by the Federal Reserve then crashed down and be as accurate if not more so this time than it was a few months ago professor Richard Wolffe host of economic up the c. E. O. Of quill intelligent former teligent and former fed insider daniel d. Martino both thank you both for joining us today. Thank you. And as markets real over reports of the surge in corona virus cases lets take a look at the Global Trends and spread of the crow virus with our chief correspondent saya tabular now saw it we know that nations are doing everything they care to fly in those curves but how well are they doing right now or brand some are doing better than others and others are just starting to see a surge in cases now the u. S. And brazil are both doing worse followed by india and russia and that countries that are looking better and are illustrating that they are flattening the current are spain u. K. Iran peru and chile and mexico but theres Something Else that i want to i want to take a look at that amongst the countries with the highest reported cases now for example of the u. S. With a population of 330000000 and they have conducted over 29000000. 00 tests now thats 90000. 00 thats about 90000. 00 per 1000000. 00 population of the u. K. And russia have conducted a lot more testing theyve done anywhere between 1222125000 per 1000000. 00 people but i want you to take a look at this for example brazil now they have a population of about 212000000. 00 people yet theyve only conducted about 12000. 00 testing per 1000000 population now india the other hand theyre doing a lot worse now theyre down just 5000 test per 1000000 population and india with a population of 1300000000 people so expect those numbers in india to go up significantly in the coming days as they do more and more testing the same for brazil. Can you break down the numbers here in the u. S. Where we put it so specifically 7 states are reporting. Record high numbers obama hospitalization since to pandemic now the u. S. Is also recorded its 3rd highest total with over 36000. 00 new cases and again thats the largest single day increase since the start of the pen demick but its also not just about the cases youre right its also how many of those infected would eventually need critical medical care and overwhelm the Health Care System and thats where again these 7 states come in a story where theyre having the Record Number of hospitalizations now for example in their distro ported Record Number of deaths today and california gess hit a record today with more than 7000 new cases and texas more than 4000 people are hospitalized now thats more than double the number at the beginning of june and and these 7 same states are also among the 1st and most aggressive to reopen for example florida most restaurants and stores open back on may 4th while gyms and stores are actually in full capacity in early june of the same went for texas and arizona but to give you a comparison you know a state like maine thats fewer than 2100 cases they announce that restaurants would not be open for Indoor Service anytime soon so were obviously seeing a trend here the sooner the states open up the more cases that were seeing right now and because of all these spikes in numbers states like new York New Jersey and connecticut have Just Announced a 14 day mandatory quarantine for travelers coming from states with a 10 percent infection rate or higher and right now these states all have that 10 percent infection rate or more plus Something Else i want to point out is that none of these states that you see right here every mandated a wearing a mask in public but again expect all of these to change because as you recall new york started with as the epicenter of the virus but now theyre only at a 1 point one percent infection rate brant so correspondent thank you so much for keeping us up to date. And time now for a quick break but hang here because when we return could we soon see if in tech giants moving into the cryptocurrency space will bring you a boom bust panel understand the sector and as we go to break here the numbers at the close. They seem to say many of the protesters on the streets of america want social justice nominally speaking thats a positive message the problem is that message is translated into concrete political demands and what happens if you dont agree with those political to. Do national will discover you know when youve been able to molest that solicit it. From the regular morgue youre more your partner. But oh. What a source like you would all get us lucifer mistletoe is just that im like i dont im just. It is not my achievement mr davies are 5 you have plans were conceived. And carried out by the people themselves if gallo would produce or even florek it with the idea of making a film like this he probably be branded as crazy. Now is the sentiment during the war the soviets were brave heroes resisting the nazis thats going to change of course after the war but once the cold war begins. Little people think that hollywood is a free place but really what is strictly defined by one side of the business and the other side is. How would i define hollywood is they call it the dream manufacture which i thinks true but i think equally its a. And if. We start to add to. Your need for good in each. Other than the human for those who want to. Make it on the potters are going to do the book on useless all that business and just. Consider. Me emotional running t. V. Im mum to screw up youll still be stuck or your muscles in the course of your knee which mrs jim used to sloth could also go chill the fuck should. We think she minds be soviet soldier shes also the boots shes wearing. Which so so looks like to move the opposable opinion more than the book and then youll like it ill be sure stuck with summarizing the police force. Is youll be via reflection of reality. In a world transformed. What will make you feel safe from. Tyson nation full community. Are you going the right way or are you being led so. Directly. What is true whats his face. In the world corrupted you need to descend. To join us in the depths. Or a maid in the shallows. And welcome back nations throughout the world are struggling to combat the coronavirus as it continues to ravage economies sending some into recessions now economists claim an increase tax on the wealthy might help alleviate some of this pain but so far not many have done so just days before russias scheduled to vote on constitutional reforms russian president Vladimir Putin announced a tax increase for the wealthy as a way to stimulate the economy. Some a little of what it was since the beginning of the pandemic was the main goal was to keep the basic revenue of russian households employment to help people and solve their problems to support the economy as it was through them. Taxes will increase from 13 to 15 percent for those earning more than 5000000. 00 rubles thats the equivalent of roughly 72000. 00 american dollars this is the 1st tax hike on wealthy russians since a flat tax was introduced in 2001 the countrys g. D. P. Is expected to decrease by 6 percent due to the pandemic russia wont be the only nation raising taxes during the pandemic beginning in july saudi arabia will impose a 15 percent value added tax on all goods produced in the country raising the vet rate from its current 5 percent level. And huge news in the Digital Currency world as Digital Payment giant pay pal is reportedly looking at whether or not to offer direct sales of bitcoin and other crypto currencies to more than 300000 w3cw users globally through its mobile subsidiary then well some reports indicate that this service could be available in the next 3 months or even sooner joining us now to discuss our. Swan and Christy I Ben i want to actually start with you here how big of a push was this give kryptos currencies like that calling. Yeah if you want to know how big its going to be it goes back to right now when you had a little bit of a pause there when you almost said 300000 had to correct it 300000000 users using paypal worldwide thats how big this is all were talking about the ability for pay pal to reach into audiences that where big coing and alternative coins have never been before just to give you an example of how big were talking about you know coinbase is probably the most Famous Exchange in the United States for big coin they have about 11000000 users 11000000 on coinbase buy nance which kristie is very familiar with knows the guys over there by nancy very well theyre the largest in the world they have about 15000000 users so when youre talking about a company a Behemoth Company like possibly stepping into this space and introducing about 305000000 users to cryptocurrency its a very big deal the real i think issue is whether or not its just because or which alternative coins are all coins get to be a part of this is well because if you are an all coin and you managed to get on to pay pals platform it would send you skyrocketing so itll be very interesting to see how that part of the story plays out kristie we know the other payment processors have gone down this road before pay pals primary fin tech rival square launched Bitcoin Transactions in its cash app in the 1st quarter of the service it generated 306000000 in because revenue alone now is it only a matter of time before pay pal gets into this space at this point. Yeah it was doubly only a matter of time before all of these legacy payment processor has jumped on board the crypto bandwagon and its not because theyre necessarily believers are quick to the yes or anything but because of the opportunity because its profitable and became trendy and pay pal just like square and Facebook Libra theyre all seeing this as a very lucrative opportunity so at this is a big deal but its also kind of sad when crypto which was designed to be free and get access to the masses but instead now you have these tech and the heem at stepping and self appointing themselves to be the good keepers the middleman to get access very small margin point base and then just mention when the entire point of crypto is to cut out the middleman but sadly we do kind of live in an age of convenience and so the easier the more convenient the more dumbed down and at makes it for the ordinary user to get access to bit quiet the more people continue to do use it and adopt it and the more powerful that middleman gatekeeper becomes so pay pal right now is in a really good position to capitalize on this opportunity seeing that they are already have that partnership with base so by offering to sell script on the platform they acquire within reach of its 300000000 active users so its a double edged sword on one hand it will increase their points exposure and visibility to the average person but then on the other nor completely and trusting an intermediary to hold and store and transact your funds which is completely defeating the purpose of the name but quite now ben we know that crypto currency faces that a lot of regulatory hurdles specially here right here in the United States so what is that what is standing in the way of pay pal actually going down this road or saying that we could see it in as soon as 3 months maybe even sooner so whats in the way of this well i think theres a couple of things remember the that there is a still a big disconnect between the way the i. R. S. Views cryptocurrency and the way the rest of the world these crypto currency so here in the u. S. When we talk about crypto currency we refer to it as a currency an Actual Exchange of value the same as with the do. Dollar and thats an exchange of value and so thats how the general public views cryptocurrency the i. R. S. Use crypto currency as property or as a as a as an asset so if you say im going to purchase you know some bitcoin today the i. R. S. Says you just purchased property not that you that youre trading currency so there is a big kind of disconnect between the way the government in this country and Government Agencies view cryptocurrency versus the way that its viewed on these platforms so even though or a pay pal is treating it like you know any crypto currency like it is a currency but i also want to say very quickly to christies point i think this is important you know she was mentioning that there is kind of a standard view of how it should be for if youre a purist for big coin or a purist for crypto currency that youre supposed to be cutting out the middleman and that is absolutely that is absolutely accurate the problem that were going to run into with a company like pay pal coming in is that it will also help to drowned out or crush smaller crypto currencies that have different function than that coin and might in some cases even be more effective or a Better Technology than that point but because people can access it in a very convenient way or as she said a middleman in between which a lot of people like the idea of those alternative currencies are going to get crushed. Kristie is there something that stands in the way of getting onto an exchange like this or why is it so different sometimes you see only 5 coins offered obviously because its offered everywhere but how do you how do you get as many coins onto a platform as possible. Well one thing is out as a always a huge process of the on boarding fee but then the other bigger issue is the fact of the cordy decline and all the top 3. 00 quines are going to be the most likely going to rebel those are going to be the most liquid and therefore the most accessible so when i have a middleman such as the transactions for you of course want to limit their risk and exposure so obviously in our to do that they have had a quick access to spot markets with all the exchanges so the way that to limit their risk on. Holding all of these assets to minimize the Price Fluctuations is to of course transact in the most liquid currencies and thats the barrier for a lot of you all coins simply because theres not a lot of training volume and i know kristie i cant let this segment go without talking a little bit about the price of big coal and what are your thoughts on the price a big point seemingly being stuck around 9600 dollars of course today as everything went down a drop down to 9300 but what are you seeing here why is it having a hard time specially this month breaking through that barrier. Well it did take a little dump this morning but we are Still Holding well above the 10 day and the 50 Day Moving Average so were kind of mirroring the equities market a little bit but the big reason why we are currently stuck in this 1000. 00 range is basically the Derivatives Market the Derivatives Market is continuing to grow and theres currently a record setting 1000000000. 00 notional set to expire this friday the 20 sets so thats actually quite exciting but if we look at where the open interest is concentrated the majority is at 10011002 the upside but on the downside were looking at the 1000 strike which is currently in the money so now looking at the slow data a good amount of traders are selling these 10011000 strikes and buying the 1000. 00 so thats why theres so much resistance at the 10000 because of prices start to rise the call sellers are going to take a short positions to keep the market from scaling the 10000 mark so it has to stay within this range into expertise for all of these call sellers to profit so this is definitely the largest they quit option expert by a mile right now this week so it is expected that the aftermath could be quite all tell. Ben swann and christiane thank you so much for breaking all this down for us. And thats it for the time you can catch boom bust on demand on the brand new portable t. V. Up a billboard smartphone through google play in the Apple App Store by searching portable t. V. Could also find it on apple t. V. Devices or simply just go to portable dot t. V. The next time. I see the biggest change has come out education ill just try says its us highlighted the shootin equality exists and i think one of the 6 that educationally. Changes access to the internet for educational purposes needs to be added to lists and truly chuma runs. Every single part of america pretty much just doesnt do what it says it does of good food the Car Companies dont make cars the computers dont make computers they dont do what they say theyre doing all theyre doing is theyre gaming the system by getting a free pass from the spread if youre part of the privileged class and then you know whipping that up to be cheered paydays for the extent that its. Become a battleground in the us. And people are demanding the shutdown of a local plant from yankee is right now my focus because its a very dangerous. Power plant the owner is attempting to run the reactor beyond its operational limits this case just sort of puts a magnifying glass on wheres the power in this country wheres it going is it moving more towards corporate interests or is it more in the idea of a. Traditional the gist of. Our lie with the people demonstrates that struggle is very real ways to struggle. To. Live from the World Headquarters of the r t america in our Nations Capital this is the news with rick sanchez oh get everybody im rick sanchez and we want to welcome all of you who are watching from around the world whether youre doing so on t. V. Through your cable or Network Provider on your phone using the portable t. V. Which is just a click away were going to get our newscast today with what is nothing short of an astonishing change of course in u. S. Foreign policy look if we take the u. S. Envoy to syria at his word right now that long held demand that quote assad must go. Hes no longer in effect think about that for more than 10 years the words the expression assad must go has been the u. S. Mantra