tv Boom Bust RT July 28, 2020 4:00pm-4:30pm EDT
this is the one business show you can't afford to miss. in washington coming up senate republicans unveiled the much awaited counter proposal on another trying to fire a stimulus package but it doesn't come without democratic critics that. it's frustrating because they did there were 3 months when there would steer various very serious cliffs that hurt lots of people. and the us and australia officials are holding their annual summit on tuesday but china is expected to be
a primary focus for those discussions we have a tough so today so let's go and dive right a. big stimulus this week as the g.o.p. rolled out their new one trillion dollar coronavirus relief package bill on monday senate majority leader mitch mcconnell unveiled that plan dubbed the heels are. we manage senate republicans ministration have been consulting over the last few weeks to come up with a realistic proposal. with what we think is an appropriate amount of additional debt to be good to the economy at this time. we think it is about a trillion dollars. and we've allocated it in a way that we think makes the most. for the country at this particular time. already there's a split between senate republicans on the bill but next come to go sheesh and what the democrats this is ahead of some looming deadlines all senate minority leader
chuck schumer called the relief package totally inadequate perhaps the most controversial is the unemployment a that runs out on friday and unemployment insurance their proposal is fraught with all kinds of problems 1st you don't tell someone who's lost his or her job to know fault of their own that you're getting a 30 percent pay cut. that is just not fair and not right there are so many people unemployed they need to help 2nd this program which we extend till january 31st in the heroes bill has done more to remove people millions of people from poverty or prevent millions of people from going into poverty than any other. well republicans have criticized the $600.00 a week benefits they argue that quite often the unemployed workers are actually earning more money on unemployment than on the actual job in may the democrat run house approved a plan to extend those $600.00 through january for more on the market and we're
joined by bill west co-host christi i and c.e.o. of open healthy octavio morency a fabulous start with you i want to start to dig into this chrono virus relief bill that's now going to congress there are still several points of contention one of them i just mentioned was the decrease in unemployment benefits what are some of the other issues we're looking at. what i think we're basically talking about the overall scope and scale of it is a question is that one truly knows it's 3 trillion over all but one big point of contention is the amount of aid to local and state governments so the democrats true to their cause want a greater amount of relief to state and local governments and republicans are being rather stingy on that front there's also a question that various things have been some snuck into this bill. might sort of reduce social security payments in the future so it's basically the unemployment benefits the size the relief checks that families are going to get and then also
the aid to local and state governments those are the 3 points of contention but i think both sides want to find a solution here they both want to get stimulus out into the market so i think they'll find some sort of compromise fairly quickly it sounded like a speaker or house speaker nancy pelosi said that they're ready to start these discussions that will probably take a few days ottavio there is there are some big banks that might be benefiting from this what came out of that. well the big banks would benefit me because the other points in there like student loan relief and things about solar and luis and so the big banks are looking at a problem with their feet looking at a cliff and saying we're going to have a horrible loan in short order so they're very much afraid that they're going to have a problem with people defaulting on loans basically credit cards and answer. lines of credit this country is of course going to make you that much easier for people to carol lin's and will basically bail out the banks in direct so the banks look like they're going to be some some easy going into looking out with as far as the
loans they're giving out kristie the fed is extending its lending program until the end of the year now now that was originally set to expire in september on the 30th while that may sound like a good thing initially goldman sachs is actually issuing a massive warning now on an inflation threat to the u.s. dollar as a reserve currency what's happening there is there are we looking at possible hyperinflation well so it's kind of like what we were saying yesterday with the massive failures of the central bank the constant manipulations and the interference of faith and it right now is that all time low and goldman sachs basically is shining a big spotlight on this growing concern on inflation saying that the dollar is now in danger of losing its status as the world's reserve currency now that's a really big warning because right now you have congress as you just spoken about closing in on another round of massive stimulus you also have the fed balance sheet which is now inflated to over almost 3 trillion so u.s. policy right now is triggering currency defacement fears that could end the dollar's reign as being the dominant global force in f.x.
markets so right now the dollar spot * index is at an all time low in decades right now and this is something that didn't really happen overnight this is something that has been growing in fears in many people many many investors for multiple months now because right now you have gold skyrocketing and money printing historically has always always triggered inflation the government is debasing their feet and pushing real interest rates to an all time low so now going back to what you said extending its lending program now for another 3 months that really shouldn't come as a surprise to anyone because the fed has already printed themselves into a corner and the only way out is to basically continue printing so these lending programs are now pretty much as permanent as death and taxes so we should be expecting probably. another 3 month extension and another and another afterwards there's a lot of stimulus going into it busters are keeping an eye on the federal reserve meeting that's taking place on wednesday i do want to change gears here and talk about the euro with its near 2 year highs traders are obviously betting on the euro
against the u.s. dollar because of the rate we're looking at chris you just mentioned it's reflecting some concerns about america and the and their inability to contain the virus but there are some european countries now that are tightening some controls to cut a spike in even a possible 2nd wave of the coronavirus is a euro a real threat to the dollar as the recovery funds jointly issued now an alternative to u.s. treasuries as a safe haven. well i just wholeheartedly agree with what christie had to say about the fed pumping more money into circulation and deep bass in the currency and i think that's what's a play more than anything else i guess looks like it's out of control in the us and fairly well under control in europe so that leads to the the assumption that could be even more money printing coming down the pike in the u.s. so i think that's the real issue the fed has injected trillions of dollars into the
market you know really an unprecedented move in matter of weeks to come and 3 or 4 trillion dollars on the pump into the market and bear in mind the fed has also got all sorts of other facilities that they've created the commercial paper facility the corporate credit facility the 2nd remark a facility the prime there's a whole host of new facilities a whole alphabet soup of them and these things are just getting going so there's going to be more and more money coming in there and that's what i think has currency traders concerned is that more and more dollars that mean this could be worth less and less so i don't think it's a question of the euro being a stretch to the dollar it's more the dollar being a threat to itself and undermining itself more than anything else well christiane the topic of this falling currencies levanon as now entered hyperinflation with 462 percent annual inflation rate and food prices rising by almost 200 percent just this month what's the situation like there are probably a word of warning like giving the us a firsthand glimpse of what it looks like our country to be in hyperinflation so
right now there are 2 ongoing hyperinflation economies you have levanon where as you just mentioned inflation right about over 400 percent and also venezuela where the annual rate is 2219 percent so other emerging markets right now are also experiencing some sort of inflationary problem but not as drastic as these 2 there's also zimbabwe syria sudan and iran they're all facing surging inflation that's quickly ramping up but the underlying causes of all these inflation scenarios are always the same the government starts running a larger and larger fiscal deficit. and then they have to call on the central banks in order to fund these deficits because simply taxes and bond financing mentors there are inadequate and not enough so they've got to fire up the printers again and the a central bank then virtually has to fund basically the entire government fiscal operation so right now the lebanese pound has already lost over 80 percent of its value against the u.s. dollar food and clothing so costs have surged almost 200 percent and the citizen savings in the banks are literally frozen the banks have no more dollars to
exchange and have imposed very strict capital controls and strict withdrawal limits in order to avoid complete collapse which is really scary as a citizen because all of a sudden your life savings are basically in excess of all and it's basically becoming increasingly worthless day by day so in these 2 regions you've actually seen massive flight to safety such as gold such as crypto currency as well as that has really started to shape up as citizens and quickly realize that the only way to have financial freedom is to basically bank yourself do you agree with christie here is this where the united states even could possibly be heading as we we keep on a fitting feeding this stimulus to to the market. well i've heard addictions of a pending hyperinflation the u.s. since the financial crisis in 2008 and somewhat before that and i suppose the fed has always been able to sort of hold back a bit more to go kowtowed out of control so i wouldn't expect to see a symbolic would like scenario i think the fed is small enough that they would know
about states have to raise interest rates quite dramatically like we did on the paul volcker when inflation was out of control they raised interest rates through the roof. inflation under control the question is does the spin out of control for the fed and do they go down and so there was a bubble a scenario i think that's highly unlikely i think was more likely to happen as we'll see inflation to come up it's going to be very very unpopular and the fed will then jack up interest rates the markets will crash absolutely although that is actually what the federal. service there for christie one more question before we get the s. and p. is still on track to the best july in 7 years here in the united states what's helping that well a lot of the only thing that's pretty much helping is a massive fed stimulus because right now you have a lot of investors who are chasing this alpha because of all of this capital that's employ a lot of money and nowhere to park except for u.s. equities in order to get returns because basically with interest rates so low you can't really park in treasuries if you're chasing off on and with no planet to change those interest rates for now at least the federal reserve is what they're
saying i mean i'm sure it will only continue to go where it will go from here. the c.e.o. of openness and boom bust co-host christi i thank you both so much for breaking this down for us thank you. on tuesday officials from the united states and australia are holding their annual summit where the conversation is expected to include plans for future exercises in the south china sea this is amid the increasing tensions with beijing but will the 2 allies me how. this joins me with the latest rachel what did we hear from from the united states about these talks well we've heard secretary of state my pompei o talk about wanting to really ramp up this campaign of getting all u.s. allies to put pressure on china and today following a meeting with australian officials defense secretary mark chimed in and he said that part of where that pressure campaign is going to target is right there in the south china sea take a listen to what you said earlier these exercises not only bolster interoperability
but also send a clear signal to beijing that we will fly we will sell and we will operate we're ever international law allows and defend the rights of our allies and partners to do the same amid these challenging and uncertain times the u.s. australia alliance remains a powerful force for stability and prosperity. now the south china sea is a body of water known for being rich in natural resources while china claims it has historic rights to portions of the sea it is run into territorial conflicts because the region also includes the exclusive economic zones of brunei indonesia malaysia the philippines taiwan and vietnam and we've seen the us really insert itself right into those conflicts and it's now calling for increased military exercises in that region and it wants australia to help which will put it of course directly in conflict with china the south china sea has especially in the last few years been a huge point
a major point of contention between china the united states and other countries but rachel i want to ask you this what does australia say what position are they taking in this whole conflict well up until this point australia has tried to sort of be the neutral party here whenever it comes to the south china sea but that all changed last week when they follow the formal complaint with the united nations against china and that followed a confrontation with the chinese warship and in this complaint australia specifically said that they see all of china's claims as having no legal basis when it comes to the south china sea now if we take a look at the text of that complaint they went on to say the australian government rejects any claims by china that are inconsistent with the 1982 united nations convention on the law of the sea in particular maritime claims that do not adhered to its rules on baselines maritime zones and classification features now not only is this a significant shift in policy but the timing is also incredibly notable here as we have australia's foreign minister in defense minister in washington for talks with
the trump administration at a time when they are of course looking to a sickly involvement in the region well china has been very vocal about protecting their sea or their waters that they claim are theirs what have they said in all of this what china was very clear to fire back to this complaint and they accused australia of trying to provoke a conflict intentionally to show their loyalty to the united states now we saw in our. that was published recently in the global times which states that the relationship between china and australia has now deteriorated to a very bad point and the chance for a turnaround is slim in the near future one of the main reasons is that australia's policy lacks independence and its current choice is to closely follow the us lead now as many may remember earlier this summer we saw a dispute break out when australia accused china being behind a cyber attack china fired back and the result of that was that china put tariffs on barley from australia and it even banned certain b. from certain for firms in australia now at the time australia didn't really fire
back they didn't retaliate so many are saying this meeting as a way for australia to kind of come back around encounter china while also showing their alliance with the us also trying to be careful i'm sure are to correspondent rachel evans thank you for that report thank you. i'm only a minister and i feel was found guilty and one m.t.v. trial is sentenced to 12 years in prison well discuss one of the world's largest financial scandals as we go to break here the numbers at the club. i.
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know it doesn't really matter where you've been but matters is where you're going right we'll see you church generations look back at the establishment media as the lead in the water pipes that drove the romans mad do you find yourself watching t.v. to turn your brain off to relax i want you to watch t.v. to turn your brain on i'm rick sanchez. it's time. to do news again.
on tuesday china announced hong kong will suspend extradition treaties with britain canada and australia well the move comes in retaliation after they took similar steps over hong kong's new security law china's foreign ministry spokesperson wang when ben said the decision deviates from judicial cooperation. canada australia and the united kingdom's wrong actions of politicizing judicial co-operation with hong kong has severely damaged the basis of judicial co-operation between the hong kong special administrative region and canada australia and the united kingdom and has deviated from the fairness of justice in the legal system maintained by judicial cooperation he went on to add that new zealand is also that on that list who along with the other 3 countries are members of the so-called 5
eyes intelligence alliance well canada and australia suspended their star dition treaties earlier this month and britain became the latest one to do so last week but the u.s. also signaled its plan to do the same with the tong extradition treaty. a major development in the one scandal is former malaysian prime minister najib razak on tuesday was sentenced to 12 years in jail and handed a fine of $210000000.00 ringgit which is worth about 50000000 dollars but is already planning his appeal. right what appeals to the appeals court will be submitted as soon as possible. and this appeal will be heard as soon as possible to because i want to continue my struggle to clear my name. is also facing 4 other trials including an investigation from the u.s. justice department well joining us now for an update host an investigative journalist and so on than what was even found guilty of doing. yet in this case he
was found guilty of several things legally receiving funds from this one in the b. which is essentially the sovereign wealth fund in malaysia into his personal bank accounts up to $10000000.00 that there are accusations that he has received up to $700000000.00 worth of he says he's returned a lot of that money and then also abuse of power was $1.00 of the charges that he was also found guilty on but as you mentioned this is the 1st so that's one of 5 so there's 4 more trials that he has to go forward with so ease certainly not out of the woods by any means and it's a huge scandal i mean there's obviously a lot that goes into this story it's a it's a massive web it's not just for prime minister resigned but a massive web of people involved in this in essentially taking advantage of this sovereign wealth fund that by the way he was the one who instituted it in the 1st place years ago and pushed for the creation of this wealth fund that was supposed to bring by the way massive foreign investment into malaysia instead it didn't it
said it created about $12000000000.00 in debt exactly in its surface that he use this money to term ali he has properties for luxury goods to even buy ww dollar necklace or jewelry for his wife this is a very big deal and one of the world's biggest financial scandals but let's be clear isn't the only one facing prison time here and some of these massive fines right so this can also involve other high profile malaysian businessmen and even executives who. goldman sachs it does in fact that's what one of the things u.s. justice department is looking at is certainly the southeast asia head of banking for goldman sachs is in trouble here facing potential charges himself in this but apparently a lot of this has to do in the goldman sachs side with them helping to essentially vouch for these bonds that were being created as part of the sovereign wealth fund in order to again attract foreign investment into malaysia that goldman sachs
allegedly knew wasn't going to be used properly was going to be mishandled and there are a number of people who are involved in this who reportedly been a fitted in the terms of tens of millions if not hundreds of millions of dollars i mentioned when i reported on this last week that one of the more interesting elements of this is the movie wolf of wall street had to actually return. tens of millions of dollars to the malaysian government when it was found out that money that was essentially taken out of this $1.00 d.b. fund was essentially used to help fund the wolf of wall street so that money was spread everywhere and quite a few people were in on it and what's interesting about this is we don't usually see sarah people in these high profile positions not get away with it so many times they're able to financially benefit and escape in this case is that's not happening well and the odd thing here too is that rock is now appealing priming to appeal saying that he want to clear his name that he's he's done nothing wrong and that
now so if he does appeal the verdict could then be partially are even completely overturned. in theory but i seriously thought that's going to happen look when you're facing multiple other trials what else can you do you have to try to appeal it because one of the things he has to hope for at this point is that he some of these other jurisdictions that are looking at prosecuting him will treat it as if like the u.s. justice department for instance has a policy of what they call not piling on which essentially means that yes you were found guilty in this one jurisdiction you've already had to pay a fine you already have prison time so we're not going to keep going after you as well we're not going to pile on so if you appeal this and you hope to drag it out one of the things you're hoping to do is to try to stay away some of these other jurisdictions from coming in and hitting you with a heavy hand but i doubt it's going to work the fact that he was has already been found guilty in this case and been severely sentence a fine of almost $50000000.00 is not a small fine especially when you've got 4 more trials ahead of you and that would
take years to do anyway but the u.s. justice department like you mentioned is investigating this as well any word on how that trial might impact the u.s. investigation. well it certainly should continue to push the u.s. investigation forward based on the fact the result as you mention was found guilty here so certainly shouldn't dissuade them as i mentioned the u.s. justice department has this policy of not piling on what they're looking at trying to do is essentially get some followings involved here on companies like goldman sachs possibly up to $2000000000.00 return that's what they're considering doing but they may ask for more they may ask for less it's hard to say i would say right now where the kind of political climate is you would expect the justice department to come down hard on this because as the malaysian people and the malaysian courts find more and more in justice here and try to resolve that certainly you would think the u.s. justice department would not back we're keeping an eye on that. during the pandemic you may be catching up on your favorite movies from home as
a future of movie theaters remains uncertain but one designer is taking inspiration from the movies themselves in order to make the next safer theater will almost cinema a design firm based in france they want to create a new movie going experience which may look a little familiar to some star wars fans out there well the idea of small pause for groups and families of families and friends and it looks a lot like the republic senate 1st seen in the phantom menace well almost cinema claims that design will mean every seat is the best in the house the firm is looking to open up a theater just like the one you see here by next year that's it for this time catch boom bust on the man on the brand new portable t.v. app which is available on smartphones and tablets it will play on the apple app store by searching portable t.v. level t.v. can also be downloaded on newer models of samsung smart t.v.'s as well as broken devices or simply check out a part of the portable the t.v. the next time.
a dark industry comes to life in los angeles every night. dozens of women sells their bodies on the street many of them under-age. los angeles police reveal a taste of their daily challenge no if you're going to exploit our child here in los angeles father we're going to come out as a officers going undercover as 6 workers and customers to fight the early sex trade .
seems wrong. but all in all just all. the world is yet to shape out just because etiquette and engagement equals betrayal. when so many find themselves worlds apart we choose to look for common ground. welcomed on contact today we discussed the book pain the land with its author joe sock i look at my old interviews like the transcript and you see that how often i interrupted people and when you're talking with the denny elder you really just let them talk you might ask a question and they might start talking about something and you think this doesn't really relate to my question. but they will get around to answering your question
so in a way it was like a real lesson in patience again in learning that there are other ways to listen and other ways to sort of deal with with someone than just sort of constantly interjecting and sort of corralling them into the space you need to go. in the fall of 1905 i joined a convoy of french un peacekeepers traveling from the besieged city of sarajevo in bosnia to the besieged city of gorazde in the convoy i met another journalist joe sako who drew book wang comics i know a little about the world of comics but i knew something about the world of journalism i watched him interviewing gorazde and instantly realized he was immensely skilled as a reporter we would later work together in a story from gaza for harper's magazine and from camden new jersey in a piece for the nation magazine as well as publish a book together called days of destruction days approval joe invented the genre of
comics journalism a marriage of rigorous reporting with meticulous drawing that delivers a visceral visual an emotional punch his books including palestine safe area gorazde footnotes and gaza the fixer and the great war have become classics. repeatedly elevating journalism into art his latest book is paying the land a poignant and moving portrayal of the plight of the denny people of the remote canadian northwest territories their struggles against cultural genocide in the social economic and environmental destruction caused by the extraction industries in the book he chronicles the battle by the dennett people to protect their identity and their communities the competing ethic of communal existence is.