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tv   Boom Bust  RT  June 28, 2017 8:29pm-9:01pm EDT

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you know an acceptable to use the system you wouldn't buy the. from your exhaust on your car engine can but the century when i do it takes me. from the compressor stage on be engine feeding it true into the cabin for the passengers to bring according to the report over three point five billion passengers were exposed to low levels of engine oils in two thousand and fifteen however a spokesperson for the international air transport association says airlines are complying with requirements and a statement to r.t. he said the safety of passengers and crew is of paramount importance to the air transport industry there have been substantial studies on cabin air quality over recent years which have guided regulators in the same area regulators monitor cabin air quality to ensure safety and airlines comply with their requirements and a press release the european aviation safety agency also conducted two studies investigating the air quality for commercial air transport and determined that
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a contributing link between exposure to cabin or cockpit air contaminants and health symptoms is unlikely reporting in new york trinity job as r.t. and that is our news and i'm ed schultz thanks for watching we'll see you tomorrow . the future we don't go. there every the world if you really are. there you can get it on the old roll. according to a gesture. program am sure there are you do.
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i'm worried you're watching our american sports juden more. i'm going to france to boss broadcasting around the world from washington d.c. knights more settlements are rolling in court cases tied to the infamous ponzi scheme perpetrated by bernie madoff is paying off for some we now see is a total recovered funds hitting above ten billion dollars chinese retail giant ali baba plants a flag in new territory it's knapped up over an eighty percent stake in a quick growing internet retailer focused on southeast asia and my guest says federal reserve chair janet yellen is. key said another planet.
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to day one. on. the bus starts right now. georgia banks went out on an inflation limb which put it on track to lose up to sixty million dollars the issue at stake is whether traders went around the risk limits on derivatives trades which were tied to u.s. inflation this of course calls into question the quality of george's risk controls which have already drawn scorn worldwide let's go back to short months to with the federal reserve find out your bank for not keeping its traders in line with the
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volcker rule which restricts lenders from using their funds to make speculative trades those close to this matter say the sixty million in losses because of this that does not look like it's going to shrink the german lender which earned about two hundred seventy million dollars in the first quarter of this year it's now seeking to overall how it manages its risk. and gold jumped on wednesday gaining support due to a weakening dollar it rose point two percent on a call back to one thousand two hundred forty nine dollars thirty cents an ounce silver also edged higher up by point seven percent to sixteen dollars seventy six cents an ounce but it's not just a weak dollar that metals have to thank the combination of u.s. political risk bret's that fears and italian bank bailouts could keep it afloat the rebound comes almost just two days after gold fell to its lowest price in six weeks the drop followed an accidental large sell off the order of eighteen thousand five
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hundred lots of gold which equals one point eight five million ounces it was quickly bought back but not enough time to prevent some market movement. one of the factors that led to gold dropping so drastically was the speech federal reserve chair janet yellen gave tuesday while in london she said we may not see another economic crash like we saw in two thousand and eight in her lifetime and beyond check it out which i see you will never ever be in those or financial crisis you know probably would be going to four but. i do think we're much safer in hopes it will not be in order i don't believe it will be. my guest says that is outrageous he says there is no excuse for janet yellen so-called complacency thieve
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head of economics history of politics that kingston university joins me now thieve good to see again what do you make of that statement. i just can't believe it i mean that is so delusional it is simply going back to saying before the cross as i said no crosses could have. the only explanation i have for across this was a huge exultation a shock something from outside the economy like thing struck by media from new york or really really bad luck and just bad sort of economic numbers absolutely and i'll explain and then also to the cross as janet yellen spoke at the harman minsky conference in two thousand and nine on raids very very superficially a piper by minsky where the argument is that these two crosses a systemic ten years later a coming up to the tenth anniversary of the cross and the only accept explanation for those beliefs is she still thinks it's going to shocks she still wasn't going
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to be on the media or from the loft she has still no idea of what the cross is it could and that advice is just like a criticism fortunately she's completely the wrong person to be managing the federal reserve wow harsh harsh decisions they're not unheard of that a lot of people are reacting very harshly to with those statements she made but she was for their take a listen to what he said about effects on the little guy. i do think that range of leaders should think about the burdens that they are imposing on those who are regulated and we hear consistently in the united states that especially for smaller banks for community banks now they're not subject to the same regulation that systemic firms are but in general good looking for ways to reduce kraken with tori burden but without any way compromising the stress testing capital liquidity requirements that have done what to make the system safer what do you think of her
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saying that the effect on the little guys should be lessened with the regulation relative to the big banks you know she seems like she's talking about some sort of a deregulation there what do you make of that. you know possibly i mean again this is the insanity of going completely homogenised as well as the regulated financial sector because you cost them on back before ronald reagan abolished the sidings in law school made it possible to citing the laws to be done by people who weren't in the local community mad and made it possible for them to lend not just for housing but thought of the speculative activities as well you had a diversified ecosystem of banks now that diversified ecosystem you do not need to worry about whether the regulations on the big guys affect the regulations on the little guys because they're two different systems now that they've abolished all that stuff in the belief that would give them greater efficiency and it actually simply gave a greater capacity for those big banks to be for editors and take over the small
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ones and then become distance from the communities and make decisions by on point scoring rather than actually knowing who was a good credit risk and who wasn't it's it's set us up for another process and yet what is she doing saying we'll go to reduce the regulations let's flip a little gauze get away saudia will have to reduce some of the big gaza's well it's far from. guaranteeing we won't have another cross is good behavior is setting up the possibilities of one well a president donald trump has talked about ripping down regulations yellen says that she's got an ok working relationship with treasury secretary steve notion but he is also talking about easing restrictions on big banks now facing true when we talk about their trading operations do you think this is going to go over well i mean what do you think the reception of this is going to be when it comes down to sort of the brass tax and janet yellen the federal reserve and this as this argument goes on. well i don't see having much capacity to resist from
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wanting to be regulated for them so i think we're going to see a return to the kind of capacity for the banking sector to do what bill black describes so well which is the best way to rob a bank is to one one and this is just going to go free up to fifty yet mole. frankly illegal what should be illegal behavior by the lindas so it's i thought it was enough of a shambles with what's happened with my over here without needing to show that america can also you know when the shambles rise well let's talk about the o.e.c.d. back in august of two thousand and seven you say in a recent article there is no excuse for janet yellen for complacency and it you say according to the o.e.c.d. back in august two thousand and seven the current economic situation is in many ways better than what we have experienced in years and then crash. coming
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right up in two thousand and eight do you think they've just lost their memory is. well they they they they come with new across italy comic theory if you stick with that in theory you can't remember anything it's all about equilibrium the system returns to recall agreement after him on a shock value even offer a major shock it just takes longer and they think well they've got processor shock now. so they can forget about what happened back in two thousand and eight and they see that as being a huge external shock the odds of another huge one but trivial in the future this is a model which which rules out memory would mean. that capitalism is driven by a credit driven by do days as you accumulate more debt than it should dish and all boom makes it more locked are you going to have a crunch that's what happened back in two thousand and eight is why when god and i both independently predicted the process by stanley dynamics of the profit that we are looking at yellen has no idea of that and this is what's so dangerous she is
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going to now try to put up interest rates believing that back in a normal period again and then she puts the right side up with the level of profit there people are going to go from borrowing money to replying get one small going to go back in to do leveraging and she'll be forced to change direction and she will have as little a clue as what's happening there's been one key and greenspan had back on the crosses for. what i think you point out with this sort of a complacency both personally and and with the system as you say as you said they had the concept that capitalism is inherently stable the financial sector can be ignored and that the great depression was in it and normally and that it was just some sort of you know. shock bad government policy point to whatever you want to but it wasn't no one could see it coming what do you what do you say to that sort of the great depression was an anomaly thing because there's a lot of economists that are saying something could be coming. here something
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is coming it won't be happening in america in the u.k. so much it will happen initially in china canada australia south korea and the build room sweden a few other countries which borrowed their wife through the profit through the cross with more profit falling on them and causing credit growth when the other economies were collapsing about your loans she's very appropriately managing a zombie economy the american. american economy is never going to revive again in the way i did back in the not in. because of the overhang of debt which is what todd the japanese of all this stuff was predictable the only way the only way you cannot predict this if you believe mindstream a comic theory and this is the best evidence of had for a long time that we should get rid of my instrument can all mix because if it leads people in managerial positions like elam's to believe that one big across is coming she will be totally unprepared when the american economy starts to go backwards courtesy for putting up interest rates and causing another delay verging chill
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certain to be unprepared when countries like australia canada china and so on career and so on side having financial crises that cascades through the american banking system right so are we seeing a pattern by the fed of not really considering the global community even you know bret's it at things like that as you say the u.k. in the united states may be buffered from some sort of another great depression but really taking into consideration the global community and other financial systems kind of you know falling apart. i mean even the on the whole front the on the or there won't be a financial process what happens if the euro folds and the odds of the euro surviving to twenty twenty two i think is approaching zero if the italians to believe in the next two years the french will in five years time of macross problems she's done turn the economy around and across policies are a continuation of the lions and many wise so they want to and the economy around the vote to get rid of the euro will be overwhelming with the euro falls i think
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there might be a small financial process going to see of that how on earth can she actually say that statement in a world where one of the major currency systems is so obviously front well it's going to really quick i do want to talk about you know you and i have talked about this many times the bounce back that occurred and people step on the backs of boat goes through and in the months down the road the economy's going to crash we're going to face a massive crisis. as you said that didn't happen the u.k. is going to bounce back pretty well i just want to get your take on that right now as we're going through the process of these after the you know snap elections we're going through the negotiations now what's your take down the road on the resiliency or the lack of it regarding brac that. you know i was one of the ones who didn't think much of the big much of a big deal certainly when it first happened because momentum would continue people were going to be buying the milk the next morning they'd be doing all the things they usually do that the panic about bricks it was all because my instrument called
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i must believe everything is driven by special laws and so if you do anything in reverse especially the world will end tomorrow well that clearly didn't what's happened since then of course has been a substantial devaluation of the pound ending this the surplus tog that the conservatives had in the first place which they feel means a stock slide stimulus coming to the economy that's why so it's it's all doing really well but i'm sure they're going to mismanage the negotiations have already rolled over backwards of of seinfeld discuss the terms of the payments for the divorce settlement before they say who takes the furniture and who types right it's exactly they won't do it in tandem thank you so much steve king head of economic history in politics the kingston university. time now for a quick break the stick around when we get back to sheba and western digital are in a fight over memory that they got to break here are the numbers that.
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would you have for breakfast yesterday why would you put those for. your wife or. what's your biggest fear. of a big moment a right when the last time you read a book board you say if you ever met the pope who's the best quarterback. that's one topic that doesn't belong in the future now i need to do due to. more. global blogs selling you on the idea that dropping bombs brings police to the
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chicken hawks forcing you to fight the battles they don't. produce offspring to tell you that will be gossip and tabloid bias file for the most important day. off the bad guys and tell me you are not cool enough to buy their product. all the hawks that we along with our audience will watch. that giant of asian online retail ali baba is set to invest one billion dollars in e-commerce company the value of the deal between the chinese e-commerce leader with the singapore based startup is around three point one five billion dollars it was not a group operates sites in southeast asian countries such as indonesia malaysia the philippines singapore and thailand this will speed up ali baba's future drive into
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the asian market taking its stake in lizotte or from fifty one percent all the way up to eighty the takeover of e-commerce from brick and mortar stores online hinges a lot on payments infrastructure and transport of goods which lays out a relatively lax this particular geographic location is among the fastest growing of this internet sector e-commerce preferences for shoppers is only around three percent currently but at six hundred thousand inhabitants are warming to that idea control of this fast growing startup which is basically a gateway to south southeast asian expansion makes it ali baba's largest overseas move to date. and it's a feud over memory japanese electronics and energy giant toshiba is suing its joint venture partner western digital over the u.s. company's position to plan to sell toshiba's memory chip unit to shiva said in a statement that it was seeking a permanent injunction and one point one billion dollars in damages for it called
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interference in the effort to sell to a memory corp financially to sheeba memory corp chips rather financially strapped to sheba needs the cash from selling its memory unit to survive but western digital content its japanese partner has no right to sell the memory chip unit without his consent to sheeba is already in big trouble losses have mounted in recent years and its u.s. nuclear unit westing. filed for bankruptcy protection in march in two thousand and fifteen to acknowledge it have been systematically falsifying its bugs since two thousand and eight to meet overly ambitious targets. and many conservatives in america will tell you that our neighbor to the north canada is soft it's a country that prides itself on liberal values universal health care and immigration policies that welcome refugees instead of turning them away one of us conservative however seems to think canada has some things right when it comes to immigration you may be surprised to hear that man is president donald trump with
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more on this artist alex who joins us from toronto alex trump talks about building the wall deporting people and what does that have to do with canadian immigration policies they're. also interesting if you listen to president donald trump on a couple of occasions including that state of the union address now just last week in iowa he's talking about mimicking the canadian system of immigration i'm going to call for a quote from him he wants a total rewrite of our immigration system into a merit based system and guess what canada as a merit based system we allow a lot of immigrants into this country a record last year of three hundred twenty thousand you know it sounds huge or maybe it's different the year before when the conservatives were here but it's not that's always been around for the past few years at least two hundred fifty thousand and so we see a lot of people coming into this country but guess what these are educated people these are people with university diplomas people who can speak english people that
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become a part of the system quite quickly become business owners buy homes and that really works for canada so if you ask canadians it's a popular thing to do and i actually i have some numbers here which is interesting a recent poll says that eighty two percent of canadians think that immigration has a positive impact on our economy two thirds see multiculturalism you guys are a melting pot we say we're multiculturalism they see it as a positive. thing here in this country if you look at the states more than twenty percent of canadians here are foreign born that's almost twice as much as the states including your illegal immigrants so we're ok with that and it seems to be working for economy some would say talent poaching you call it a merit based system doesn't sound too bad for the country though president trump dorson the canadian system though is not about a popularity contest as it. no because the system is quite ruthless it's a nine point plan that we let people in on they have to fulfill nine points of this is a vast majority of people since the one nine hundred sixty s.
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they come into this country they have to fill fill these nine qualifications is such as canada new zealand have something very similar sure other countries do but what things that we ignore which is really important really important when you look at break it down is race religion ethnicity and we look at their age education their job skills their language abilities so when we let people in here we want them to be able to work i mean i've talked to cab drivers in the city and i actually met a guy who was a parking attendant years ago so when the war was going on in the balkans bosnia guys moved to canada he was sitting in a little cubicle in back of a parking lot with at this ancient computer the guys tapping away for three years guess what he was a computer engineer two years later he disappeared i bumped into a park is working for one of the biggest banks in canada that's the type of people that we let into this country and that's what donald trump is saying they as the pretty united states and educated population and educated immigrant population instead of what's happening now which is more reunification of families that's what
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your system is based on more so than who these people are so when you have that pretty much letting in anyone just as long as they have somebody in your country that is a relative so this system it would probably work well for you in the u.s. as well you can call it poaching or brain drain from other nations you call whatever you like it or not and i always really well for our economy i'm not saying it's that i think it works well for a lot of economies i don't think we can get away with that socially i think canada can play the nice guy card that all throughout their you and i know that but we could never get away with that if it is really as you can even now have to be the nice guys just do it so we don't have the problem that here sixty is that much allison highlights from toronto thank you. nearly a decade on some of the hundreds of victims of bernie made off ponzi scheme are finally seeing some justice the slew of new settlements bring the total amount of
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recovered funds to nearly twelve billion dollars for she is here to fill us in on this bianca and the question on everyone's mind how much money is left to reclaim here so investigators believe at this point in time that made up was able to swindle about twenty billion dollars over the scope of the entire scandal so based on what we learned this week it shows that they have made some progress but still have a long way to go right around the time of the two thousand a recession wall street was dealt another major blow with the bernie madoff investment scandal and it's taken nearly ten years of the billions of dollars lost to be recovered on tuesday investigators announced that more than twenty three million dollars in assets for made off son's estates had finally been retrieved his children mark and andrew worked for him and made off investment securities and during the investigation they claimed they didn't know of their father's fraudulent scam both sons have died since her father sentencing their representatives have
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maintained their claims of innocence the bigger settlement this week came from to offshore funds that invested and made off from lagune investment ltd which is based in the british virgin islands will be coughing up two hundred forty million dollars and thema fund ltd based in bermuda will fork over one hundred thirty million dollars in a statement stephen hardback president and c.e.o. of the securities investor protection corporation said we're covering funds from offshore defendants is always challenging the settlements announced today represent significant accomplished accomplishments by the seat but trustee and his legal team we look forward to additional distributions to the victims of the fraud in the near future of the eleven point six billion dollars recovered during liquidation nine billion of it has been distributed to the victims meanwhile made off himself is currently serving his one hundred fifty year prison sentence in north carolina. you
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gotta admit bianca it's not hard to imagine this guy could hide it from his family look at how many people he hid from who were close to him as well and for so long i'm just saying you have to you have to consider that even though people want to claim they didn't know what talk about these sums further does this totally technically clear them of any alleged involvement alternately yes in the beginning prosecutors did not believe that they were innocent they of course maintained their innocence throughout the entire night and they said they had no idea what their father was doing but prosecutors said allege that they owed up to over one hundred fifty million dollars to investors but of course both sons had passed away the first in two thousand and six second in two thousand and fourteen so they went after their estates instead so now that they have settled for twenty three million dollars they can move beyond the sons now and both estates were actually left with a few million dollars in total so it's very different than the one hundred fifty million prosecutors initially thought they would be retrieving from them but in the
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grand scheme of things you know the sons of states have been pushed aside they're not going to have as much as these offshore guys anyway even though twenty billion seems like a drop that hundreds of million these offshore funds are having to give as a drop in the bucket what about these how exactly did they get them to contribute it's a sticky process to get that done yeah the easiest way to think of it is that they were just feeder funds to made off firms but they of course and tell their clients that they were using these funds on so now that they have finally reached a settlement they'll be able to repay essentially their clients money that they were using when they were involved and made off grand scheme so many years later we've only got upwards of twelve we've got to get along with one minimum thank you so much for shooting. well god save the queen queen elizabeth the second has ruled the u.k. since one nine hundred fifty two she's a veteran at her job she and her family bring in lots of tourism and licensing dollars to united kingdom but she's up for a raise and some of her subjects aren't too happy about that the queen receives
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what's called the sovereign grant a set payment given to the royal family this year's grant but increased by eight percent to over eighty two million pounds the money comes from u.k. taxpayers but is based on the profits of the crown estates in real estate business that oversees properties held by the crown now keep in mind this is just for the queen the money goes toward staff salaries travel expenses and massive renovations on places like buckingham palace the timing though may be bad as it comes on the heels of a heightened time very public austerity measures and unemployment. that's all for now for more of all from all of us here by us thanks for watching the next time.
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there's a real irony going. to want to play something very responsibly boys need people and there are always well that's what the terms of dollars always seem it seems to me if you live or you know hold still surveillance you feel you have all read well as soon as she was in trouble as you use the social you don't really sort of the story goes it's garbage real sure and you see. all the world. and all the news companies merely players. but what kind of part does. america offer it's more artsy american personal. in many ways the news landscape is just like this either real news fake names good actors that act and in the end you could never. serve up parking
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for all the world all the world's a stage all the world's a stage and we are definitely a player. what's with. that i'll take them on to one of your hard hitting questions. because. it was the right time for. there is no way i'm going to change and become better you didn't get the choice to be brought into this life but every man every woman has the choice. and i think they should be seen as noble and we should be able to talk about it so i try to. make a. good. point.


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