Transcripts For RT Boom Bust 20240711

The same time there seems to be a lack of clarity on whether the by the administration will continue some of the specific policies against Chinese Companies such as wally joining me now to discuss boom bust. And so on and host of economic update professor Richard Wolfe professor lets start with you President Bidens nominee to head the countrys Commerce Department gene armando told senators on thursday that she would use punitive tariffs and export restrictions against china is this going to be a continuation of the trumpet ministrations trade war with china. I certainly hope they are hopeful that she said those things in order to those senators who want to hear it that was the policy of the trumpet ministration and my understanding was that biden was going to at the very least of moved back from that kind of confrontation let me remind you all of the viewers over the last year of the trade war on the tower of war the chinese economy i scroll through a 4 percent of your marital economy has shrunk through the 4 percent it didnt work we didnt win that struggle in fact the chinese economy is gaining on the United States even more under these circumstances then before so i dont think this is a successful policy it has all kinds of dangers so im hoping this was an exceptional statement by her and that it will not reflect the basic parts well professor weve talked about this time and time again here on the show specifically especially as of late where we see we saw a report a study that showed that basically the u. S. Shot itself in it in the foot and its that that 2 to briley overcome to be the 1st the Worlds Largest economy falling but falling behind the United States would essentially fall behind china sooner than expected and let much like you said given the handling of the pandemic they are seeing growth the only place in growth during these times but i want to ask you ban on the u. S. Side how much pressure is there really to lift the thanks vent on china are we going to see again like professor well said hopefully not but another trade or an ill prolong trade or essentially. Yes i would not believe necessarily what ms romano was saying there and theres a couple of reasons for it one is i do think shes positioning herself in terms of her confirmation hearings in order to say look senators were going to be tough on china because that is the belief right now is that the u. S. Has to be tough on china otherwise were going to get overrun and overtaken in terms of the economy and in terms of Foreign Investment in terms of trade deals and tariffs and all those kinds of things but in reality there are more than 3000. 00 u. S. Companies that have asked for these tariffs to be lifted Companies Like tesla Tech Companies are asking for those tariffs to be lifted and i do not believe that the Biden Administration is going to continue to be tough on china the way they trumpet ministration was that we could argue about whether or not thats a good thing or a bad thing but i use dont think that there is any question they are not going to take the same kind of hard line position and you know it really depends on the long term aspect and outlook as to why you would continue that you continue it because you say hey look in the short term the job of ministration didnt seem to really win any victories and so the bite ministration have to make an argument that long term this is beneficial and again when you have so many corporations in america saying lets not continue this i just dont see him doing it yet time seems like both sides want to come to some sort of an agreement or consensus and not prolong this trade war that weve seen for too long a professor was at the World Economic forum in davos where leaders there encouraging president to extend efforts to reignite this International Cooperation that were talking about what to civically what that look like. Well it would be a dramatic change from what weve been doing because remember the trade war and the tariff war while i believe focused on china was not limited to china there were serious conflicts with mexico canada there were serious conflicts with your up some of those are still very much alive i would like to caution everyone that over the last 2 or 3 weeks the German Government the most germany to cooperate with china i think any trade war or relaxation as ben says quite rightly is what almost everyone once who isnt positioning themselves for herself in some political limelight with strong gone i think biden has a chance to try to work out a live than let live relationship with europe with china and so on and it would be a terrible tragedy for the world if this opportunity were missed when a lot of people are saying are expecting at least President Biden as a politician for so long to be at least more predictable not as abrupt as we saw President Trump during the last couple of years then one thing rimando did not make clear was whether or not to crack down on Chinese Companies such as while were going to continue why didnt she emphasize the right about that well thats thats a complicated issue right if we as weve talked about before it is one thing to say were not going to take as heart of a stance to listen i can support the idea of saying were going to be very hard on the Chinese Government and on our relationship with them because if you believe that they steal intellectual property that they are taking advantage of other companies from around the world if you believe all those things and i think many people do rightfully so you can take a hard stance on the Chinese Government but that is a separate issue than taking a hardline stance on a Company Simply because it is. Annis own and i think as a Free Market Society that we claim to be its very difficult to make that case ive been arguing about that on the show for several years now that i dont see the correlation between a government stance and a private Company Stance having said that i think its important to note that as weve talked about with wild way its complicated because so many u. S. Agencies have banned the use of weiwei products have made very bold statements about weiwei being involved in data gathering and back doors connected to the Chinese Government which i want to remind the audience still never actually been proven no evidence of this is ever been shown but because of that its very difficult to untangle that you cant just say well we declared today suddenly that while way is not a threat because all these agencies and heads of agencies that have gone along with this how do you walk back all that information so i think the fact that she wouldnt comment on it is a sign that that is a very complicated issue and its going to take a lot of kind of unraveling to undo whats been done there and doug if it sound like theyre going to actually reverse course on this much like you said theres a lot thats already been done even though we havent seen anything yet that shows that they are and National Security threat they theyve said too much and its almost like theyve gone too far and now professor what i want to ask you given the entre deal that we signed so long ago it seems like years ago it was it was the beginning of 2020 where are we with that now. Well we were in really limbo it was a temporary stop gap measure to get across here you know that time has gone a new regime is in our era the United States a new set of conditions i really think that thats simply. A feeding bedwetter everything now depends on what initiatives the biden that ministration. The chinese have indicated what theyre going to do what their position is very strong on International Trade on multilateralism their busy signing agreements around the world with governments that with very few exceptions are eager to work deals out with the chinese let me add one kind of caution if we continue to go after a while way and the other Chinese Companies basically by suggesting they have quiet relationships with the government and the military tried or that could come back to haunt us all our leadership Tech Companies apple Google Microsoft any of them they all have complicated relationships with the United States government and the United States military if youre going to was stabbed wish precedent that this is not trustworthy then we made me end pulling our all of the companies in as much danger as we have put while away this would be again a step in the wrong direction well again we just hope that they can find some sort of consensus negotiations we dont want to cope back to what we thought last couple of years with the u. S. China trade or bill with cohost bent on professor richard well thank you both so much for your time today. An update to the ne a tiny ban on one thank tennis Foreign Ministry for. Affairs opposed to indias decision to ban 59. 00 chinese apps including ticktock Chinese Embassy spokesperson you wrong it urged india to correct its what they call discriminatory measures adding these moves and are in violation of w t o nondiscriminatory principles and fair competition principles of market economy severely damaged the legitimate rights and interests of Chinese Companies. After weeks of mostly Peaceful Demonstrations in new delhi india farmers angry about new agricultural laws well theyre losing their patience with their own government recently thousands clashed with police demanding their government protect their livelihoods and their earnings attention in india are now being felt right here in the United States with several demonstrations in support of those farmers taking place in some major cities including new york city r. T. Correspondent tony chavez has more of what was supposed to be a peaceful rally to celebrate indias republic day quickly taking a turn for the worst. Chaos and turmoil unfolding in the streets of new delhi thousands of Indian Farmers and their supporters protesting controversial reforms seen here clashing with police. Scuffles breaking out with Law Enforcement after a group of protesters driving tractors drove through the spirit to enter the store read the work site leaving one protester dead ill never do anything good for the police fired tear gas and those farmers with the. Demonstrators defying tear gas and flash bangs as the march through the streets told you something testers would still. Protest leaders condemning the violence. So what happened up the road for sure damaged violence outside and hoisting up the floods we do not have anything to do with such poise we condemn all such incidents the protests in the country growing now for nearly 2 months as farmers demand the withdrawal of new laws they say favor large corporate farms and devastate the earnings. Of smaller scale farmers the legislation exacerbating resentment among existing farmers who have long been seen as the heart and soul of india but say they are ignored by the government but im going to get the message for the Prime Minister is that it is not simply in government it is the farmers dont know the farmers will rule it we will do as we want to the force your laws on the border and from your women the movement garnering the support of dozens of demonstrators from around the u. S. Federal gathering in new york on tuesday this is a really good moment to Community Around open up a community in the next 10 years we need to. Do this when it was really so bloody from the family just the same although there have not been to the tune of going to were going to now the demonstrations are expected to continue until those laws are repealed reporter boom bust trinity child those are key. Good news for boeing as europe union regulators approved its 737 max airlines to return a Service European Union Aviation Safety Agency executive director patrick i said we have every confidence that the aircraft is safe which is the precondition for giving our approval but we will continue to monitor 737 max operations closely as the aircraft resume service on the planes theyve been grounded since march of 2019 following the 2 fatal crashes that killed a total of 346. 00 people on the 737. 00 mark already resumed flights in the United States and brazil and its already been cleared by transport canada this comes on the day or aircraft maker reported a record a loss on its new 777 x. Jetliner all deliveries of the plane were pushed out too late to 2023 which is a huge delay due to aircraft demand over the pandemic boeing reported a 6500000000. 00 loss in the 4th quarter with an annual deficit. A whopping 11940000000. 00. Time now for a quick break but when we come back the u. S. Federal reserve cut its benchmark Interest Rate near 0 after there today policy to discuss the game stop rally the one many are calling ridiculous and insane but are we seeing and see the markets. As you go to break here the number is a. Little low. In 2040 you know bloody revolution here to crush the demonstrations going from being relatively peaceful political protests to be creasing the violent revolution is always spontaneous or is it you know here i mean your list put me in the. New school and you go to the former ukrainian president recalls the events of 2014. Those who took part in this today over 5000000000 dollars to assist ukraine in these and other goals that will ensure a secure and prosperous and democratic. L. Look forward to talking to. That technology should work for people. Must obey the orders given by human beings except where such conflict with the 1st law show your identification for should be very careful about Artificial Intelligence and the point is to create trust. Areas with Artificial Intelligence where some of. The robot must protect its own existence is. The. Secret prisons and usually what comes to mind when thinking about europe however even the most prosperous can be deceived within this 0 zone there were 2 view houses were. Prison were located and only cia people had access to the story for investigators she held the uncovered the darkest dealings of the secret services but i mean. The great ignore. Box. You saw. For justice. U. S. Markets were on the decline all of one day ahead of the Federal Reserves policy statement with federal chairman Federal Reserve chairman Jerome Powell reiterated his stance on helping the economy during the pandemic without raising Interest Rates. Overall Economic Activity remains below its level before the pandemic in the path ahead remains highly uncertain overall on a 12 month basis inflation remains below our 2 percent longer run objective. While we should not underestimate the challenges we currently face several developments point to an improved outlook for later this year a full recovery is going to take a very long time powell also said real Unemployment Rate is closer to 10 percent for more on this lets bring in boom bust. And former fed insider dannielle de martino booth danielle lets start with you Federal Reserve chairman powell he tried to avoid sounding rather hawkish in any way on wednesday afternoon after the fed commitment to to its easing policies particularly when it came to Bond Buying Program how is the market reacting to the latest comments from the fed. Well you know i think on a day like today its very difficult to tease out how the market reacted to the fed markets did close down lower than they were before chair powell came to the podium but he was extremely careful and measured in saying when he was pointedly asked you know how will you taper when the time comes he gave constant pushback that this was not the appropriate time to even begin to have the discussion of what that exit might look like that the fed knows what to do when the time comes but again that right now is simply not the time to open this discussion i think he was definitely trying to call my markets down and emphasize that there is a lot of scarring that has been done in the in the economy and that it will take a lot of time to heal those scars we did hear a long recovery maybe some sort of return to normal or some sort at least by the end of this year we also saw the dow on track for one of its longest losing streak the s. And p. Also down the dow also stocks are at session lows is what were seeing but christine i want to move on to the stimulus thats really been propping up the markets in the last couple of weeks it looks like democrats are now preparing to pass a covert relief bill without republican votes or going for a nuclear vote is what theyre looking at with a democratic seat and passing it and fitting all of their priorities into a final product. Well the democrats have started to lay the groundwork now to pass the package without any republican votes through using budget reconciliation now this would allow the democrats to pass a bill by simple majority vote in the senate but republicans and a few democrats in congress have questioned the need to spend so much money in mailing just a month after a 900000000000. 00 release plan became law so Democratic Leaders that congress should not repeat the mistakes of 20082009 when the lawmakers were too timid and responding to the Global Financial crisis however theres still a lot of pushback from both sides and this will not be an easy process for democrats because the budget reconciliation right now only applies to bills that change spending and revenue levels and that kind of restricts what lawmakers can actually put into legislation so democrats may not fit all of their priorities into a final product that comes as the senate will and also as you mentioned before not all democrats are on board with the current plan either so there might be some tweaks afore this get passed including who is actually eligible for these 400. 00 check will be interesting to see given how close they are in numbers and from the senate danielle obviously before we go i really want take this time to talk about game stop now Anthony Scaramucci said the game stop short shows that a concept like bitcoin can actually work because it really shows how effective these decentralized and democratic democrats sizes investment how it can be he called it the age of the micro investor with forms like credit are we seeing a new phase of the markets is this kind of where were headed where heavily short stocks might be targeted in the future. Well im not show so far how far into the future we can actually have a rational discussion given that this is clearly unadulterated speculative behavior that is going on these are massively credit trades and and theyre targeting big short sellers many of whom have decided to logically rationally cut out of these trades cut their losses and move aside rather than get caught up in this mob flash mob if you will so with all due deference to mr scaramucci i dont see that this is going to be a new pathway forward for investors is the small investor is mike are investing ever going to go away no its not there are proper forms and there are ways for smaller investors to be able to get in and out of investments where they dont have to have a huge huge pile of cash in order to to be to be a participant but again this type of speculative fervor this type of mania is certainly not what you would call a new type of investing because investing does not imply rushing in and out of companies that are effectively or at least on the pathway towards bankruptcy goes to show how easy it is to really manipulate Something Like this kristie a lot of had my conscious christie a lot of Hedge Fund Managers theyve described the game stop short as the ridiculous theyre insane some of you can argue that its market manipulation but many institutional short sellers over the past 3 years they shorted 150 percent of the low thats driven the stock price down about 95 percent over the last 3 years shorting 150 percent of the flow may not even be legal yet these are the same people that are calling reddit user is a market manipulators is it sort of the pot calling the kettle black. It is but really its actually not illegal it just creates a hazardous situation in the market especially with a nice then we traded stocks especially in the event of a short squeeze but neither is what we tellers are doing so what we see also doing thats not market manipulation thats crowd investing so the editors are doing the exact same thing as what all the Hedge Fund Managers have been doing for years how do you know positions on social media or on c n b c pushing their names all the time so its very hypocritical that theyre trashing whether there is a traders when theyve done the exact same thing and todays price action clearly shows the power of retail in the crowd because the heads are retreating hedge funds are now being forced to liquidate their favorite tech losses in order to cover the short squeeze losses so thanks to all the stimulus checks which were originally intended to help economic recovery many households have instead put it into the market and in the late its a looks like me tell us have officially one to gain stop war where melvin capital finally capitulated and puked up its short position now g m e today hit a new record high as really 5 as news of melvin short coming broke and Citron Research fund also announced that they covered most of their short yesterday and while these 2 big shorts may be out countless others will remain as more shorts have come into a place the ones who left right now maple lane capital might be the next mel them and right now its not only game stop thats popping today all of the most shorted names are popping double digits in a very big down day for tech this market selloff and that right now names like e. M. C. Which you talked about experience Eastman Kodak and more theyre doing pretty well i do want to ask you this before we go when asked about this recent trading in game stop shares a general powell chairman said quote i dont want to comment on a particular company or a days trading in the stock market what do you make of that. Well thats a rational thing for jay powell to say but he was asked a more pointed question and that was would you advocate for raising margin requirements and he flat out said the answer is no to that but just to go back. To the issue of retail traders are winning the day over these large hedge funds you know but the time this is the end of these trades comes and goes im not quite sure if they can actually run a victory lap for holding the stock at a very elevated price that is not worth even a fraction of what it is and my concern is that these retail traders are going to have to learn a very hard lesson about what intrinsic and fundamental value is as opposed to having sway over a particular trade because there are enough of them to create a crowd so i would i would i would raise that flag of caution up there because not everybody is going to have the benefit making it to the exit on time to not lose their shirt definitely thats where its headed so people need to be careful but they are finding these new ways obviously that maybe not new like you said but it is. More access to to the investors and what theyre doing more creative ways rather than most cohost christine that insider danny de martino both thank you both for your expert analysis. That tip for the time you can catch him bust on demand on the portable t. V. App which is available on part phones and tablets to play the Apple App Store by searching portable that he. Is going to use it in the white house. For us is if you look at the j. C. Pure its not just the signature that counts as the chase if you the new kid was in fact that she should be picked up that she was. Unremitting you begin to see that if. If he returned to duty with full effect benefiting did on in people knowing their policy go back soon pressure has already. Willing to go back to do food. On the phone line smoke why dont they couldnt put them in the moment when the Supreme Court appointments you know them going to come down to a phone company to get a. Lot of. Advantages that they had nothing. She drew. 0 interest them. But from the sun no money to go to the british of course theyre going to have been brought up. I mean the guy. Who wanted. To. Take. One fella says were going to go and its fine if shes going to print scads more and many many chinese war chest understand that shes pouring that money into something thats structurally broken its like a bucket of the bottom is missing it doesnt matter how many like liquidity she pours into that bucket is structurally broken and just come right out the bottom doesnt matter how much of course of the stick the economy is fundamentally broken all the distribution all the finance everything every piece of the puzzle is been decimated by the command and control money printing psychopaths on the economy sunscreens fam. Im sorry to have to tell you the number of deaths recorded from in the u. K. Has surpassed 100000 grieving u. K. Families demand a Public Inquiry into government failings that have made britain the 1st european country to register more than 100000 deaths from the pandemic. Of an accident. And they did not. State it was in america much and most of these lives could have been saved. Or side of the countrys declining french lawmakers and doctors wringing their hands at their failure to develop an effective covert vaccine