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tv   [untitled]    November 22, 2013 8:30pm-9:01pm EST

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i got a quote for you. it's pretty tough. stay with substory. get this guy like me you're about done stead of working for the people most missions the beach meet your work for joe wright brothers vision. of the road it was. there i marinate it this is boom bust and here are some of the stories we're tracking for you today. first up china says thank you but no more to the u.s. dollar how they had their fill of u.s. treasuries as well we'll tell you all about it coming right up also adam minter author of junkyard planet sat down with want to talk trash trade and well it might
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not sound that glamorous the billionaire trash tycoon behind it they sure are and finally rachel corrie's is joins me later on in the show to discuss boy bashing via social media is this girl power or just gender equality gone awry that's the question on deck in today's big deal but now let's get to the center. of. kicking off your headlines today china they say they're no longer interested in accumulating u.s. dollars this week the people's bank of china so that the country does not benefit from increases to its foreign currency holdings you gang a depute. the governor of the central bank said quote it's no longer in china's
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favor to accumulate foreign exchange reserves the marginal cost of accumulating foreign reserves has exceeded marginal gains now china's foreign exchange reserves now stand three point seven trillion dollars and a large percentage of that is made up of u.s. dollars now if china does indeed ended stockpiling of u.s. dollars many analysts believe they may also stop buying u.s. debt as well china is by far the largest foreign creditor to the u.s. holding just under one point three trillion dollars in u.s. treasuries could this have the potential to create a bearish long term attitude towards u.s. bonds we're just going to have to wait and see. elsewhere thursday the senate banking committee voted to confirm janet yellen his nomination is chairwoman of the federal reserve changes to the senate filibuster rules now virtually guarantee she'll be confirmed by the full chamber the senate voted thursday to eliminate filibusters for most presidential nominees now in an op ed piece published in the
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journal were guarding the filibuster matter former senator phil gramm said quote her confirmation is virtually assured less certain is what mr yellen ultimately intends to do with fed policy i want to take it easy now entering its thirty fourth month she is committed to maintaining q.e. for now but does she have an exit strategy. it's a fair question and one that we will be keeping a close eye on and finally add some point your life you might have been told it can't leave the table into a finish or dinner well that is exactly what a new bill is saying to congress the house rules committee they introduced legislation this week that would prevent congress from leaving town for the holidays if the house fails to possible agreement five minute december the no budget no vacation bill that's truly its name it holds lawmakers accountable for their pledge to settle vastly different house and senate budgets by december thirteenth now i know most of us can't leave our offices for holidays until we
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finish our work so it only seems fair that congress be held to the same standard. no. well there you have it as always we'll be tracking each and every one of these stories and keeping you posted on all the latest. we turn now to the trash trade and just trash in general have you ever wondered what happens to a soda can after you toss it into the recycling bin well believe it or not it probably goes half way around the world most likely to some exotic place like india or china and back the u.s. exports forty six metric tons of trash per year fueling what has become a multibillion dollar industry and while we see a shredded automobile is garbage a scrap collector they see it as a tremendous treasure trove of copper aluminum zinc plastic you name it it's all in
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their eyes that down without a mentor author of junkyard planet travels in the billion dollar trade and i started off by asking him about the profitability of the reusable industry and here's what he had to say. dreamily lucrative business and the fortunes that have been built on this are some of the more elusive and sort of global commerce today but i can assure you based upon what i've seen there are also some of the biggest just in china you can think about if i tell you the largest private copper smelter in china is a private company you probably are thinking that it's built on recyclables but it is largest private copper main you factor in china that's a huge industry china has forty three point one percent of global copper demand last year so just think about the scale of the wealth that's built up by that and that's just one example can you explain the business model of a private scrap exporter it's you know the we always say in the scrap business that it's easy to sell scrap because everybody wants it but it's very difficult to buy
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it and so even though we may. next being an export of they're spending a lot of time worried about where they're going to export actually the average scrap export business spends most of their time worrying about where they're going to buy the scrap developing the connections to buy the scrap convince seem the people who generate the scrap to give it to them remember most of what we think of as scrap or cycles we put in our home recycling bins but that's usually less than twenty percent of the total recyclables that are generate in the united states every year mostly scrap recyclables are generated from commercial enterprise and so it may be a commercial printer you know they have lots of excess newspaper general motors generates enormous amounts of scrap recyclables for making automobiles well if you're a private scrap exporter to get those contracts to recycle their metals very difficult so you spend a lot of time worried about that servicing those clients so that you can then easily sell their material overseas is
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a market is saturated in terms of private private companies and i mean the g.m. contract started saying what else is a radical well you know it's very interesting about the scrap of cycling business is it's always going to be an entrepreneurial business so a big scrap recycler that does hundreds of millions of dollars a year they are going to bother to go down the alley to get those cans you know in a box but some whole boat some guy in new york city he's going to do that and if he does anough of that he can build up a small business becomes bigger and bigger and bigger and so there's always this opportunity within the business to grow from small beginnings in the something bigger and the other flip side of that is we found it's a very strange thing but there seems to be a size at which scrap companies start losing their profitability it becomes very hard to buy the scrap intelligently buy and scrap metal isn't easy if i show you for example a truckload of old brass faucets and pipes i don't know what an experienced eye
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knows how to price that. so if i'm buying just for my scrap it's fine but if i have twenty scrappers i can't do the buy so with the big scrap businesses they start to lose their ability to buy smart and so that provides opportunities for the small guys certainly not now. the biggest volume export like you said from the u.s. to china. they need it we have it but it's not as simple as supply and demand shipping plays a mouse over all. absolutely so as we all know the united states runs a huge trade deficit with china in short china exports more stuff to the u.s. than the u.s. exports to china u.s. just doesn't have many products that the chinese want to buy as a result you have shipping containers forty and twenty foot shipping containers going from china the united states being held up basically in places like los angeles san francisco all the major ports waiting for cargoes to go home now to
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ship a cargo from shen zen which is a big port in south china to the united states cost about twenty four hundred dollars today because you have all these empty containers and very few cargo is put into a shipping companies are so desperate to get them back they discount those containers in l.a. to about three hundred dollars right now ok so it's three hundred dollars to go back the other way well that makes it very cheap to send back scrap recyclables to china now there's an added layer to this that's even more interesting in my opinion and that is it's very expensive to ship within the united states so for example if i have a container of scrap cardboard and i want to ship it from l.a. to chicago that's going to cost me about twenty four hundred dollars ok so but it's still only three hundred bucks to go to zen well at that point i mean the guy in chicago can't even compete for it because the shipping is going to be so expensive he can't give the same price as the guy engine and so it's going to go to china ok why not what happens in the global economy if china's access to scrap metal was seriously even cut off well i think the great way the easiest way to answer that
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question is what would be the. effect on the global economy if china suddenly lost the source for say fifty percent of its copper or forty percent of its paper you know fifteen percent of its steel it would you would you would set off an immediate recession you do china's manufacturing juggernaut is essential to the global economy functioning it's not something you can cut off anymore it has to be there it's an essential component to the globalization story that whether we like it or not and i personally like it is a part of our lives and he said that trash trade is a good predictor of you know the ebbs and flows of the market can you expand on that yeah sure i mean it's sort of legendary within the industry that alan greenspan's favorite economic indicator was scrap prices they said he would look at those first thing every day because what is a scrap price it's an indication of raw material demand and it's a much better indication than say virgin materials because those move in very very
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big lots and they tend to be contracts that are out a year or two ahead of time but scrap is bought primarily on a spot basis it's a spot market so the spot market for scrap oftentimes reflects the short term and mid term thinking of manufacturers in particular so for example in two thousand and eight of course we know what happened in september october the global economy in a century crash we had indications of that in the scrap industry is early as early summer of that year we started seen steel prices across asia scrap steel prices slipping very quickly i remember being in bangkok and it was you just could feel something wasn't right because people were talking about we're going to have new records and scrap steel prices and yet at the time you are starting to see things slip so you had this you had this sort of buoyancy there which we felt in the u.s. with the real estate as well but the writing was on the wall things were slipping very quickly and that's that's happened many many times before wow now developing countries they're obviously the main market for scrap imports yet a lot of america and africa remain scrap exporters why it comes down to
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manufacturing. africa i mean africa has some of the cheapest labor in the world but they're not making that much stuff at this point and it comes down to making stuff so they don't need the raw materials in fact there's a pretty good business right now of exploiting scrap out of africa into china which is an extraordinary story when you think about it but it's that's how big the manufacturing jobs are not is in china south america is a more complicated story so i've spent quite a bit of time in brazil looking at what goes on there in brazil in some ways has become a very developed economy some of it scrap remains in brazil but they are starting to export some of it out of there the problem with brazil is that the shipping is very expensive but you know latin america in particular is a more complicated story because there's developed components of it that actually have a manufacturing base and there's parts of it that don't so you see much more flow it's much more fungible in a way like mexico i would imagine they would have
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a large scrap and they do and what's interesting and i'm quite familiar with a couple of very large scrap exporters in mexico who actually send material to china even though you know the labor rates in mexico quite low and also because the man there is the manufacturing there but the issue there in many cases is shipping again it's very expensive and oftentimes very dangerous to move scrap in mexico especially high value scrap like copper scrap so it ends up being cheaper just to ship it right out of mexico that was adam minter journalist and author of junkyard planet. coming up it is a country where armed forces are banned in public banking is the norm where could this place be and why is it working so well i'll tell you coming up plus one of your friends were reading you behind your back while many a better watch out rachel courteous and i talked about who might be ranking you in
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today's big deal and as we had to break here's a quick look at today's closing numbers come back. and. i would read that as questions to people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on our t.v. question or. the
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plastic. over. did you know the price is the only industry specifically mentioned in the constitution and. that's because a free and open press is critical to our democracy correct albus. role. in fact the single biggest threat facing our nation today is the corporate takeover of our government and our crass cynical we've been hijacked why a handful of transnational corporations will profit by destroying what our founding fathers once it's all just my job market and on this show we reveal the big picture of what's actually going on in the world we go beyond identifying the problem for trucks rational debate and a real discussion critical issues facing america. join the movement and welcome
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to. the little known coastal rican banking system involves a mixture of public and private banks now out of twenty nine license banks mutual so seasons and credit unions in costa rica four are publicly owned now i should note that in the us out of the thousands of depository institution there is only one public bank and it's in north dakota on kusturica the four state banks which do compete with each other housing eighty percent of all retail deposits i spoke with ellen brown author of the public banking solution and i asked her about the difference between public and private banking in costa rica here's what she had to say. things that are publicly owned by the government which means the profits go back to the government so that their major advantage they're also guaranteed by the
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government so they're much safer particularly and some more like costa rica where they don't have insurance the private banks can continually going bankrupt and then the people lose their money so eighty percent. deposit are now in public banks people just like them because they're safer they make loans that are good for the economy so they're directed by by the government for the public now like you mentioned there's no sea model in. what other countries employ the model that is public the public model that is a model and is it only appealing to those countries that don't have such backing and i get to see. well even in the us it would behoove our government to put its money in for local governments to put their money in their own banks because
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they they too could lose their money the f.d.i.c fund only has thirty two billion dollars in it to insure six trillion dollars so we're we're into a false sense of security if a big bank goes down j.p. morgan for example has a trillion dollars in deposits america has a trillion dollars in deposits and they both have over seventy trillion dollars in derivatives and because glass steagall has been repealed they are allowed to coming their deposits and their investments so if they did another big derivatives like the one that we saw with lehman brothers in two thousand and eight and if there is no government bailout as the government has said they're not going to do in the event of another big derivatives crisis that's right in the dark frank. or act then depositors could lose their money the new bail in procedure involves going after their creditors money and turn turning that money into stocks so
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recapitalizing the bank through their creditors money well it turns out the depositors both public and private are the largest class creditor of anything so we're all liable just like in cyprus now this is a pretty obvious question but i'm going to ask you because it kind of leads to my next one do you believe that this is a better system the one grocery. compared to that that we have in the u.s. today. definitely and the ca's three can they the i.m.f. is lean and then the u.s. is leaned on them to try to privatized their system and they just don't want to give up they're probably banks they're very safe and they are designed to serve the community and they do serve the community has been called to reconsider and. the happiest people in the world and happiness index they've they've been there for years they were doing way better than any other country in central america and it
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was largely because of this public banking system where they use public credit to find public infrastructure to. find government generally they owned a lot of businesses and so the government had a lot of money and it used that money it invested money in the economy which made for a booming economy lots of jobs in general a general strong middle class and well being of the people they have thirty percent of the government's money goes to health and education and they can do that for one reason because they don't have a military but also because they have a very strong public sector which is supported by their public banks now and what is it possible to implement this model on a large scale in the u.s. right now we kind of have a have public private thing going on but how would you how would you go about implementing it if it were to be implemented. well because three could to attach
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probably kept private it's just that it's a different part of the economy that's probably because they don't have a military which is the biggest part of our public sector they have room for some other things but yes i think it would work very well but getting from here to there could be difficult what would be easier would be to set up a public bank on the model of the bank of north dakota in every state and north dakota has its own bank which serves as a sort of mini bank for the state it is the on the state that escaped the credit crisis it has the lowest unemployment rate in the country the lowest default rate and the lowest foreclosure rate so they're doing very well and this state takes all the revenues of the state and then they leverage capital and deposits into credit for the state. so works very well for their economy and i think every state should have one now it's no secret that close to rica like many developing countries they struggle with
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a certain degree of corruption is it dangerous to rely too much on the public banking system. recent works so well is that it's totally transparent and totally accountable in other countries public banks have sometimes been corrupted and that's because politicians have gotten hold of them and have used them for their own ends but in costa rica because it says in the constitution that the profits go back to the government the government wants to know what the banks are up to and so they are entitled to see all the books on like our federal reserve for example which wants to be not only independent but not to be audited they want to be acting in secret well that's a recipe for corruption but it does beg the question does a public banking system allow for easier government tracking of its citizens banking transactions. if the mandate is to make it all
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transparent it definitely does i mean you have to write their charter for the public banks from north dakota is also completely transparent and completely accountable and that's why it works so well in both north dakota and in costa rica they have a strong democratic government and it really works. that was ellen brown author of the public banks so we should time now for today's big deal. joining me now the lou lovely rachel curtis i like in the pink lady and we're going to do today is we're going to discuss all things social media now first and foremost here's the question how would you feel if your friends were ranking you behind your back aren't they already one hundred all of us just raking each other
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one time you tell them yes i'm judging each other and. well anyway we digress remember this scene from social network check it out. we're getting used to and chess players are you were asking girls. i need the algorithm he needed the algorithm the experiment it didn't and so well but it ended pretty good down the road anyway now there's a new out and it's for women to anonymously review and rank men who appear as their friends on facebook it's called lulu and the site has taken off in the past six months having grown a whopping six hundred percent women can rank men on a scale of one to ten and ascribe house tags teach profile things like. here we go friend zone porn educated or do you think that i don't know what that means i don't have any obsessed with his mom that's kind of cute and could be bad dude can cook
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that's a positive one no i start off asking rachel would you view this as you know substantially different if it were men ranking women i think the ad would substantially be different if it were men ranking women they would be ranking different things than for instance their relationship with their parents or their ability the cook i think that. if men had the app it would probably be a lot more appear in space and it seems like the lulu is based a lot more on skills and personality traits tricking mom you know i mean these are very helpful things. you know speaking further about ranking apps in general things like ok cupid do you have an internal rating system already so this isn't so crazy it's different in that you can't see the rating that other people get but internally ok cupid is using those ratings in order to sync up the forwards with the fours in the threes with the three and so now here's the question if i'm a guy and i want to check out my ranking. no one knows what are you ok and actually
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you can check your will. in order to have the app you have to be registered as a woman on facebook if you're a man and you try and they're going to say sorry do they have some like it up like we like do. they have but if you recommend the app to twenty five friends then you'll at least be able to see your ranking you won't be able to access a lot of the internal parts of the app but you will be able to see oh look i'm a seven point seven really thought of all you have to do is continue to grow the app on the i have. now do you think the anonymity of these reviews like is it is that fair or is there a little bit of cowardice. i mean i don't think it's unique to lulu i think that that's something that the internet more generally is having to deal with all the time it's something we see a lot on for instance you tube comments and stuff like that people feel more free and empowered to say things when they're anonymous but we're seeing with things like the internet that it's you can't really be anonymous anywhere even you tube now is connected with your mail and all of your google accounts and i think that
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people are finding that and on their body on the internet is an exhibit going to happen it just doesn't really exist especially i'm sorry you can't expect an on in the if you're linking anything through your facebook. i don't know if you don't deserve it if you think that you do you think you have an unlimited new facebook account think again. thank you again now what is the sentiment behind an app like this now the out that the ads for the out they have you know people smiling and ranking women with their kissy face is did a g.'s think that it's use predominately for happy kid happy kissy face stuff or there's a lot of kicks his dog do i think there is a lot of kissy face stuff going on on lulu no i mean i think that this is probably when you're ranking people you're trying to tell people more like watch out for this dude because he's obsessed with his mom trying to make sure that people avoid all these potential landmines that any relationship might have finally a force for good or evil lou evil evil you know i mean how did say it's honestly
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it's something that's happening already this is just a way to kind of codified it on apps very very so evil and all well there you have it that's all for now for you can see all segments future than today's show on youtube out youtube dot com slash boom bust r.t. well so love hearing from you you can keep your anonymity separate check as the one facebook are not on facebook dot com slash groomed us r t from all of us here a boom bust thank you for watching see an x. times by.
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i'm betting. a society that i don't think race in mind. can do and i think. all about money and other families that for politicians write a lot and recipes that. come out. here just to let. today's buying. that.
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larry king it's just call him and when the bill clinton covey to a comedian forces a line for the new comedy the go birds i never thought i'd be on a network show it's not i'm not i can network kind of guy you're a cable guy. and then i get the script and i'm like oh my god this is quite right i'm not jewish i'm not jewish. and yet i mean i'm playing one on t.v. is doing right look overbearing mothers there you know first of all and i had one plus so you're everywhere i'm everywhere what was it like to i was going to hug your dream and study what it deserves make just me you know right you know i want to else really when you think about it when you think about all of showbusiness who deserves major success jerry or anyone else know that's all next on larry king now .

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