tv Boom Bust RT July 27, 2017 3:29am-4:01am EDT
soon but by relatively soon they may mean they may mean never because you know shrinking the balance sheet is a lot harder than expanding it you know quantitative easing was the fun part quantitative tightening is not only the hard part it's really the impossible part but it is possible that janet yellen may in fact begin the process but it's never going to be completed long before that day comes we're going to have to go back to zero percent interest rates the fed's going to relaunch quantitative easing q e four maybe it won't be janet yellen that does it maybe it'll be whoever donald trump appoints to replace her why do you say that we're going to go backwards now was pointing toward that happening. well look the u.s. economy is long overdue for recession anyway i mean this is one of the longest expansions in history it's certainly the weakest expansion in history and it's required the most amount of artificial stimulus in history but look the economy is
slowing down dramatically even the way we measure it the consumer is dead he is loaded up with debt retail sales are plunging we can't be far from a recession and so what is the fed going to do in the next recession they're going to do exactly what they did in the last one they're going to lower interest rates and they're going to quantitative easing do you see a disconnect between what you are saying to us right now and what janet yellen is saying in her federal reserve statement she continues to point toward positive things happening in the economy and kind of brushing off things that look a little bit more negative like this stalled growth. because that's all the fed ever does i mean they're always optimistic they're always positive they never acknowledge the problems even if they see them they're not going to admit it i mean they were very positive going right into the financial crisis of two thousand and eight i mean it's like you're a weather man and there's a category five hurricane right off the coast and your forecast is sunshine in this great weather i mean that's the federal reserve so they're never going to give you
an honest assessment of the economy even if they honestly understand it so what doesn't surprise me that the fed is very sanguine about the future but the future unfortunately is quite bleak is specially as a result of the policies that the fed has pursued because everything that the federal reserve has done in the aftermath of the two thousand and eight financial crisis has made the underlying economic problems that caused that crisis worse and now the fed has set us up for an even bigger disaster and one of the takeaways from today's statement really stuck out to me it seemed pretty counterintuitive the fed said it wanted to get economic levels to a point where it neither encourages nor discourage is economic activity peter what does that mean. i don't even know if the fed knows what that means because you know we want the free market to set interest rates so if you want an interest rate that is conducive to economic growth let the market set the rate when the fed sets to rate it's never going to get a right it's either going to be too high or too low and in most cases it's too low
but the interest rate being too low distorts the economy what it's resulted or what it's produced is slow growth because we have minimal capital investment we don't have enough savings and real production so we divert resources from main street to wall street so we get asset bubbles and we get a weak economy and that's but what we've had what would you suggest then we're talking about a stage right now where it looks like interest rates are going to stay between one and one point two five percent probably at least until december what would you be doing instead at this moment break to. for what's to come in the next couple of years. well i think the dollar rally that we had in twenty fourteen twenty fifteen was really a sucker rally it was a bunch of currency traders betting on the efficacy of fed policy and i think they bet wrong in fact coming into this year the most crowded trade on wall street was long the dollar the dollar did rally the dollar index rallied about six percent
between the time trump was elected at the time he was inaugurated well since inauguration the dollar index is collapsed about ten percent right a new low for the year today and i think the air is only just starting to come out of this bubble so i think the dollar's going way down especially when the fed has to do it about face and you know donald trump basically is daring janet yellen to raise rates because he basically has that angle and the carrot that he might reappoint her provided that she keeps interest rates low and i don't think is going to reappoint her but i don't know that yellen is going to take the bait i mean maybe she will have to raise rates because she doesn't want to appear to be caving into his pressure but i don't even if it matters if the fed manages one or two more rate hikes before janet yellen leaves office you know they're pretty much done they never really normalized interest rates so the rate hikes that we're getting are too little too late to help the dollar is going down and what might be a real problem is if the dollar really tanks the trade deficit is going up because
americans are going to have to spend more for their imports and that lot rising trade deficit could annoy president trump because he doesn't like the trade deficit is a problem but he always strengthens protectionism and that could be an even bigger problem so the president of the federal reserve bank of minneapolis said that the fed has been raising rates too fast and the next rate hike isn't expected until at least december so obviously that goes against what you are saying is increasing rates quicker something we should be concerned about i think you've answered that obvious where does that come from that idea that. that it was too fast and we weren't ready when it's been well eight nine years. well they've been you know i don't even say they've been raising them in as at a snail's pace because i think snails are faster but you know they have certainly accelerated ever since trump was elected the fed has hike rates three times before the election during the entire eight years of obama they raised rates just was so
you know they have certainly picked up the pace even though the economy is no stronger and in many cases weaker now than it was in the years before trump took office so i think the fed has been emboldened to raise rates because they have a fall guy and donald trump i think donald trump has made the mistake of claiming ownership of this economy claiming ownership of the stock market taking credit for the stock market's gains that is supposed to strengthen the economy and so he set himself up perfectly and the fed could take advantage of that because with everything comes tumbling out coming down they can blame it all on trouble peter schiff c.e.o. of europe pacific capital certainly a pleasure talking to you thank you so much. well coming up after the break norad make over the north american aerospace defense command may force canada into uncomfortable political territory we go to toronto without report and as we go to the break here the numbers at the closing bell.
if we take for instance the size large enough to destroy a city say forty meters or so of the million or so asteroids out there oh we have discovered perhaps a percent or so of that ten thousand of them for him so in other words i means that ninety nine percent of them are undiscovered so you. should expect that the great majority of asteroids are very close to the earth to come as a surprise. flurry used to be a professional hockey player won a stanley cup and the moment the girl who was living the dream was to sit in a dark side of the time i was fourteen to sixteen i was raped one hundred fifty
times by a coach i was mawson in a dark room and so you know every time i close my eyes or from sleep after many years of silence he speaks up and unites with other victims so you are going from toronto to ottawa walk in an hour walk and. walk just to create awareness and promote healing around the subject of child sexual abuse this type of behavior is obsolete because of the sentences that are handed down through the justice system. talk about the one nine hundred eighty s. of course the crash of eighty seven gave us. the program trading and the bailout meisters down there at the punch protection team and they government stepped in and started to have control of price discovery.
this then was there with me and. those get a little bit too much as well plus animals i knew but i you. know both it was a problem but i guess sort of kind of this side of this yes. if you dump a lot and just see if you saw. where the blue you won't get a specific good area for immigrants. it's miss we never really know for sure but this has been a active area. and yeah. i know. when i started knowing.
the future used to strengthen the pop machine retrieve the member states and the secret to get of course and this partnership combined night has to be governed by one basic understanding or principle that really makes this a group behavior try to have the flexibility to undertake the programs and. must do more to treat. people wants all of men but speak. that's a very rough terrain just so it's rough climates and you have to find suitable to them if. it was gunshots on top of them and so many friends they would have been aiming and i've been. telling.
you no i don't want. to see it but it will be in this world is it to punch you straight in the good. old to me a book to read and. you don't think about these movies so to one know you've got three teeth like and you know and the other patients. feel. to hear about solar shall thank their really. solid lead earl told a hero to all this is how the bank. her family.
can't close your solo shut the load of their anger. at her dad told her thank you. thank you thank you. the senate made some moves on health care overnight but it took a tiebreaker to get there the senate voted fifty one to fifty to move the health care bill to the floor to debate with senators split fifty fifty it took vice president mike pence as time breaker to get it done well all this vote does is say that the senate is now officially considering legislation to repeal obamacare but
passing any amendments to do so seems unlikely at this point senators voted last night on a full fledged bill that would have repealed to replace the affordable care act and unsurprisingly it failed fifty seven to forty three and a new amendment wednesday aimed at just repealing it also failed forty five to fifty five republicans are now starting to talk about doing what's called a skinny repeal which could repeal just certain parts of obamacare they don't like like individual mandate but keeping most of it intact. in other news the u.s. is facing major international backlash after the house of. senate overwhelmingly voted tuesday to impose new sweeping sanctions on russia over its alleged interference in the two thousand and sixteen u.s. election the measure passed four hundred nineteen to three putting pressure on president donald trump to eventually sign such legislation when it reaches his desk but the measure is getting pushback not just from russia but the european union as well the e.u.
warning wednesday it would act right away to counter the post sanctions on russia saying it would unintentionally harm europe's energy security interests and firms that do business with russia brussels could also file a complaint with the world trade organization if the u.s. and e.u. cannot work things out diplomatically meanwhile russia says the latest push for sanctions leaves no room to improve ties between washington and moscow and that the frayed relationship is reaching unchartered territory. an upcoming make over of the north american aerospace defense command is expected to push canada to invest into the modernization of the aging defense system norad most notably protect both canada and the united states from intercontinental ballistic missile attacks but an increased threat from low flying cruise missiles will likely be a priority in any updates to the system or tease out smile of it is in toronto for us with this story alex first of all just want you to give us a quick break down of what norad is you know
a lot of people don't know that this thing you can exist in norad was put in place back in one thousand nine hundred fifty eight that was its first incarnation and it was basically to combat the cold war of fears that the u.s.s.r. might attack north america the surveillance systems basically to see if any planes were flying over north america that were on friendly at the time and that eventually grew into something much bigger it was empty missile system so you know you could might remember back in the day the threat of nuclear war these missiles coming across from russia were trying to wherever this system is just big strong radars on all lot of surveillance back in. all along the northern shores of canada down to the bottom of the state's planes up in the air just basically seeing that our skies are safe and that missiles aren't coming in and now nine hundred eighty ronald reagan actually pushed us a little bit further you might remember the war on drugs while norad became a player in that and in two thousand and six that agreement actually pushed it into maritime properties as well so we're talking about
a water boats coming in and just can do that in the states knowing what's happening at all times now in this relationship the reality is that the u.s. is the big brother here they make the most of the calls but both countries have planes involved they have systems involved so it's a big investment on the part of part of both canada and the united states and what if both parties hope to achieve with modernizing the system well you know things have changed once again so looking at just back to february when the president trump and prime minister trudeau met they were already talking about norad and one of the biggest threats that some generals are saying are cruise missiles no cruise missiles flying a very different way than intercontinental ballistic missiles they fly low they are quick and they're hard to detect so what we're saying now and what a lot of generals are saying is that cruise missile missiles should be put into the equation and systems and systems need to be put into place to combat that now there's a different philosophy when it comes to these things in the states and canada and this might be a little bit of area of contention the americans are saying that you know what we
need to have a first strike type of idea we need to know if the cruise missiles are coming out of a submarine where they're coming from we have to hit those submarines for the first be a chinese summer in a russian submarine or a comparison for that matter we have to take them out before those things go up in the air canada has a very different approach preemptive strike is not a part of our vocabulary so what we're saying is that possibly batteries in canada that would just basically knock down these things once they are in flight now again this is where canada is a big issue even how big that to that degree and what really might happen and just i mean the american planes are here. every once in a while we know that our systems are tied together quite tightly it might come down to the us sending up their systems to canada to combat this just a part of the agreement but when it comes to donald trump we know it's in america first thing and he wants to see his partners investing money in these things so he might be pushing canada into the corner saying you need to invest in this and this preemptive not preempting language might need to change when it comes to canada but
it would be very tough for justin trudeau and the liberal party to sell that to canadians and what we might see are batteries on the ground the problem is that there's nothing here right now and these type of things that these batteries that are against are cruise missiles or they're they exist but are still in development to a certain degree they're not one hundred percent yet but like i said donald trump wants to see there's a problem and it most likely it will happen soon and it will both countries will have to cooperate well and it will be interesting to see how the rest of the international community reacts to it because we've already seen some negative reactions coming in different parts of the world from other ballistic missile defense system so alex the heil of interpreting for us from toronto thank you so much for that thank you. driving cars are expected to hit the market within the next four years believe it
or not as of now a lot needs to happen though to make that a reality california is the mecca of self driving vehicle development and it's now taking the leap and actually changing roads and regulations to accommodate the cars of the future. joins us now from los angeles with the latest on this procedure how many companies are we talking about that are testing autonomous vehicles in california. simone there are about thirty six companies in california right now that have been permitted to test and they're currently testing about two hundred different autonomy vehicles on our public roads here now these not only include car manufacturing companies but also technology companies like google and even systems manufacturers as well so now this testing has been going on sorry for about twenty years in california so that's something that's really exciting to see as you mentioned they're going to be rolled out in the next four years. you know what needs to happen before these cars can be safely rolled out on the road especially
when we're talking about mixed traffic situations. that's a great question there is a lot that still needs to be done in terms of infrastructure rules and regulations right now testing does require a driver to be present but the california department of motor vehicles has just proposed rules that would allow completely driverless testing california is also starting to modify its roads to accommodate autonomy vehicles for example they passed as one which is a new transportation revenue package that will allocate funds toward maintaining intelligent transportation systems and this includes things like cameras signals signs meters and charging stations and it would also build infrastructure to vehicle communication systems so that these autonomy vehicles can communicate with traffic signals and things like that to make traffic flow a lot better but we do still need some federal regulations before. or this can really be rolled out on a mass scale simone right so we're talking about the state of california right now
and the things that they are doing to try to prepare for this your talk and then you mention federal regulations has the federal government taking any steps to try to regulate autonomous vehicles or is this kind of the wild west right now. it is sort of the wild west but just last week a u.s. house panel did approve a sweeping a proposal allowing automakers to deploy up to one hundred thousand self driving cars without meeting existing auto safety standards so why would they want to do this is a good question to ask as well now this rule is meant to make it so that automakers can build prototypes without backup manual controls which are required by law now but critics worry that this is going to have a negative impact on public safety the proposal also has rules that would prohibit states from regulating mechanical software and safety systems for autonomy as vehicles which critics say takes away the state's rights to regulate vehicles in favor of the federal rules but supporters do say that this will help streamline
regulations for these cars nationwide now automakers will still be forced to submit safety assessments to the federal government and meet certain safety requirements and while states cannot impose performance rules they can set rules on registration licensing liability insurance requirements and safety inspections so these lawmakers say that they're open to hearing some comments on this and that they are open to changing the proposed rules but they are likely to vote on this in september after the summer recess is over and if they pass that this will become the first real set of federal real regulations surrounding these autonomy vehicles ok ten seconds you're sitting in los angeles worst traffic in the country how do you feel about personally riding in one of these driverless cars eventually. i am so excited for this and if i could in a way because if i could sit in my car and do some work on the hour plus that it
takes me to get to the office every day i would be so perfect artie's pretty despondent reporting for us from los angeles thank you so much. well following following an effort from international law enforcement agencies to take down dark web site alphabet the underground economy has taken a sizable hit but could the dark web markets eventually recover we're joined now by boom bust bianca sheeny outside mandalay bay hotel in las vegas nevada to talk more about this one. bianca what can you tell us. well just to give you some insight alphabet a was about ten times the size of silk road and alphabet also had its own backup website that users could go to an alphabet it was initially taken down so i'm here at black hat my spoke to a lot of people to get their professional insight and also just our general thoughts on the dark wet and on alphabet a and they all sort of share the same sentiment on one side it's a positive success for law enforcement that they were able to take down the black
market of this i mean there were tens of thousands of vendors on that day and they also had hundreds of thousands of customers but on the other side the dark web is massive and there's a lot that we have yet to see so they think that we're going to continue to see more alpha base and more so growth in the future and we don't really have the ability to stop that that said they do recognize the downside for the dark web but they also are telling me that there is a positive side to that their web just overshadowed by the negative sides about it so take a look at what they had to say about. much of what's known about the dark web is negative to many it's simply a digital version of the underground economy that's the tracks nearly all physical human interaction which is its biggest selling for their criminal underground. tends to conduct most much of their behavior from a cyber perspective because software like tor provides complete anonymity criminal
groups have thrived in the hidden part of the internet whether it's illegal drugs weapons money laundering and so on in the dark with this chock full of black market products and services even global law enforcement initiatives aren't expected to deter the high demand we see online it was just an international growth right so of course there's going to be many others to come off it is like they're just making huge amounts of money out of this and unfortunately there is obviously a really high demand for be able to goods trade and they can't really be stopped so the downside of the dark web has made itself loud and clear but overshadowed in those negative implications for the other reasons people use it most people think about illegal activity monitor what comes to mind but a lot of security experts here a black hat say it has advantages that are keen to open society without the ability to search the internet anonymously fear over privacy rights and mass surveillance only gets worse whenever there is oversight folks will try to do their business and
do it out of the public eye and so the dark web is a place where people go to do that so while we acknowledge the bad we should also consider the good and remember the tradeoffs between privacy and security reporting in las vegas. r.t. . so bianca you said it in your package right there that the dark sides to the dark web are really obvious let's talk more about the positives of it what examples can you give us. so most of the positive side of the dark web really comes down to privacy for example if you live in a country where there is intense regulations of the internet or how they were strict and the dark wet allows you to browse the internet without fear of interjection from the government yourself other sort of authority but in a more general. sends the dark wet a lousy consumers to browse for you know products that are not legal in so on the
other side if you're using this service web and you're on amazon and you're looking to buy a television or something the next second you open another search browser you're bombarded with ads from sony or from other companies that also want to buy that television so it all comes down to privacy and trying to subvert mass surveillance even if you're not looking to do anything illegal i think a lot of our viewers are going to be looking to see how they can start searching on the dark web now boom bust bianca she'll be reporting for us live from vegas you can catch more of bianca's reports on the dark web from the blackout briefings in las vegas throughout this week thank you so much. as zuki being a fruit parfait pumpkin or flavors you don't usually associate with kit kats but in japan those flavors are turning chocolate into money since two thousand and ten kit kats sales in japan have increased by more. global warming sell you on the idea that dropping bombs brings to the chicken or
forcing you to fight the battle. to do socks for the so you could be gossiping template. off the bad guys and tell me you are not cool enough to buy from. a bill that we all already know what. what politicians do. they put themselves on the line they get accepted or rejected . so when you want to be president and should. want to be next. to going to be press it's like the before. can't be good. i'm interested always in the waters of our. city. if we take for instance the size large enough to destroy
a city say forty meters or so of the million or so asteroids out there we have discovered perhaps a percent or so of the ten thousand of those. so in other words i means that ninety nine percent of them are undiscovered so you should expect that the great majority of asteroids are very close to the earth to come as a surprise. so . yes this is how the good. old.
flurry used to be a professional hockey player one stanley cup. the moment the girl who was living the dream but who sits in a dark side. time i was fourteen to sixteen i was raped one hundred fifty times. i was more us in a dark room and so you know every time i close my eyes or from sleep after many years of silence he speaks up and unites with other things so you are going from toronto to. walking and walking the walk is to create awareness and promote healing around the subject child sexual abuse this type of behavior is absolutely
unacceptable because of the sentences that are handed down through the justice system. breaking news so germany says counter measures could be taken in response to a u.s. anti russia sanctions bill targeting the energy sector e.u. officials have already raised concerns that european businesses would be hit more on that coming up and also in the next thirty minutes a longtime aide to a number of high profile u.s. house democrats is arrested on charges of committing financial fraud will try to leave the country but that so many one of the many controversies surrounding stuff we'll tell you more to. has fed this why is gripped by violent national strike school football the opposition we speak exclusively to the country's press.