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

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because of the political pressure he feels here at home he's got to show he's not a patsies not putin's puppet so i think that all goes into his calculations you think it'll go well next month i really don't know there were there have been reports or fights within the administration about should it be a subject of beauty or just a side bar handshake or something like that and that mr trump wanted to have a substantive b.d. i think they will get one and i hope they will especially with the developments in mosul in iraq we are looking at some kind of end game here with regard to isis held territory we need to figure out where we're going here and not have a conflict brewing love each other or hate each other there's got to be some sort of cooperation in syria at this point right i agree thank you so much jim jatra former u.s. diplomat thank you. all right that is the news tonight i am an elegy and sitting in for ed schultz at will be back next week follow me on twitter at manila chan it will be you that i'm going to.
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i'm going to do just that and you're watching solitary. slashing. i'm going to do just that if you're watching are. slashing. watch the hawks founded by three young americans who love their country but we have to constantly question our government watching the hawks brings the stories the
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give voice to the voice. we dig a little deeper we get the stories that the average one else is afraid to touch is afraid to talk about because they don't want to upset their corporate sponsors or interrupt their government access now is the time more than ever we need to question more. we're in this post truth world we're world words have to matter again it's about educating people and giving them contacts instead of telling them what to make dialogue is far more valuable than debate. lindsey francis has been broadcasting around the world from washington d.c. tonight a revised travel ban is set to take a taxi it will hit those from a number of predominantly muslim countries and refugees across the board
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a big change from former world we've had here also we take a look at where we are headed with oil it's way below what opec thought it would be for an extended amount of time and my gas and i take a look at what this could mean for the future and the upcoming eighteen tee time warner merger it's highly scrutinized it predicts a time warner c.n.n. could face a management reshuffle this comes after a very public embarrassment surfaced this week for the network stand by boom bust starts right now. the state department has new guidelines for who gets admitted to the u.s.
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under the travel ban that was partially restored by the supreme court because applicants from six mainly muslim nations and all refugees will require a close family or business tied to the united states to enter the move came after the supreme court partially restored president onil trump's executive order that was widely criticized as a ban on muslims visas that have already been approved will not be revoked but instructions issued by the state department wednesday saying new applicants from syria sudan somalia libya iran and yemen must prove it relationship with the parent spouse child adult son or daughter so. law daughter in law or sibling already in the united states to be eligible the same requirement with some exceptions holds for would be refugees from all nations around the world that are still awaiting approval for admission to the united states. and an ultimatum from regulators in
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the state of mississippi has been issued for one of the nation's largest utilities the mississippi mississippi public service commission set a deadline of july sixth for a mississippi power unit of southern company to begin negotiations on the cost of a botched clean coal project regulators say the cost overruns must be absorbed by shareholders and not electricity rate payers relying on the company currently so the dream of completing a first of its kind coal fueled power plant there is history for now the plant was seen as a model for coles future designed to emit only as much climate warming carbon dioxide as a natural gas plant and the project is now three years behind schedule and comes at a cost of about seven point five billion dollars that's four billion over its projected budget on top of that its equipment never worked as designed shareholders have already lost three point one billion dollars in this deal mississippi power
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said it will keep making electricity and part of the plant burning natural gas as it has since two thousand and fourteen the mississippi public service commission allowed the company to raise rates on customers by fifteen percent in two thousand and fifteen those customers number in the nearly two hundred thousand range now on wednesday the company issued notices of possible layoffs within sixty days to about two hundred fifty employees the site. one minute it's up the next it's down but it doesn't seem to be breaking even fifty dollars lately i'm talking about the price of oil and despite global cuts to clear a massive glut it doesn't seem to be improving much joining me now to take a deeper look at this chris martenson economic researcher and co-founder of peak prosperity dot com thank you so much for talking to me about this we need to dig in here what's your take on the oil price that you ation right now and what it
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indicates for the global economy. well lindsay good to be with you here today and oil is telling us that it's very weak situation right now we've got a global supply glut there's a lot of it floating around in tankers on land storage is also full to the max so the economy when it's growing demands oil we're seeing very low demand at this point in time and the market is very heavily oversupplied and on top of that you have a lot of desperate countries that are busily producing as much as they can in some cases desperate companies like those in the shale patch who are being incentivized to produce as much as they can whether that makes sense or not plus a couple of trouble spots are coming back online nigeria libya also producing more so everybody's producing and there's not a lot of demand right now i want to talk about this extension by opec on the cuts of millions of barrels pulled per day libya particularly one of the organizations
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are i'm sorry nations that is exempt from following these rules because if it's a political plight does not seem like it's a bit outdated right now they are they are pumping like gangbusters and it's offsetting. efforts and do you think that's a bit outdated they should be brought up to snuff as far as following the other rules of technicians. well in theory yes but libya heavily. damaged they had many years of very very heavily depressed production and all of that because of the war so they badly need the revenue to come online iraq needs its revenue to come on line rent just brought back into the fold of selling internationally they also heavily incentivised need to bring what they've got of course this conversation is incomplete without russia who for a variety of reasons some of them economic the rest may be geopolitical also incentivized to really be maximizing production right now i don't think opec really
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has the cohesion it needs to deal with this at this time right now to be seen in the the upcoming meeting in russia to see if they're going to make the rules and actually stick by them which we'll see after that now because we've just talked about by any assessment has made big moves to clear that blot but the agreement isn't panning out so well and aside from the exempt countries a lot of these countries have paid lip service the original cut they seem to be going by pretty well saudi arabia in particular and then some of his some people got a bit lazy on it i mean do you think that an agreement like this which was precedent setting is really going to do anything in the future you think do you see a trend going on i guess is what i'm saying. i'm not really detecting that there's a lot of purchase on this right now in part of it is because of the sheer desperation of the countries involved when you look at venezuela i know their oil production is plummeting but anything they can produce they're going to produce they need the hard currency really badly there and we could go around the world and
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point to the fiscal woes of opec country after opec countries even all the way up to the top saudi arabia hemorrhaging foreign reserves badly needing revenues so everybody needs the revenue nobody's willing to take the cuts right now because the problem is if you do take the cuts in the price goes up it's possible you might lose that market share to somebody else including the u.s. shale drillers who have been really pouring the production back on over the past couple of years now gas going to about ten percent according to a lot of. analysts looking at not only the shale but then the oil rigs going up so much it's almost shocking now goldman sachs has revised its its revise its estimates three month price forecast was fifty five it's been revised down to forty seven fifty with a lot of this growth you mentioned a lot of people say it's not so much growth it's that people are not driving like
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they used to the use of hybrid cars it's not what it was even ten years ago do you think this is also a contribution. well it is but the number one thing that will suppress demand by far in history has been economic activity or the lack thereof so one thing we might look at is looking at china which has been one of the largest increases of production in importing the globe this point time india as well but looking at china their expansion seems to really be slowing down at this point time we've got a lot of data to suggest that they're slowing down they've got their own strategic reserve topped off so there are a variety of points of demand that are starting to be missing from one of the largest increase in economies in the world so when i look at the demand side of this you know we're very far along in this economic expansion is weak as it's been it's very long in the tooth and we're starting to see some signs that maybe there's economic reasons for understanding why we're seeing less driving less demand not
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just in the united states but in europe as well and in china let's talk about the united states and we're talking about the economic effects on non driving people you know opting not to drive it's not is that public transportation is improving in this country saying people can't afford it is that is out yeah save out of smiles their face you know exactly what i'm talking about there that's another time for another sort of infrastructure spending let's talk about these drivers why are they dropping off the face of the u.s. . well you know there's a lot of theories around why this could be clearly one theory can't be the price the price of gasoline is very low at this point in history in this time so what i'm looking at is saying well look at where we're seeing a lot of the weakness we're seeing retail really starting to fall off and particularly at the bottom end of that the dollar stores you know the wal-mart pieces places like that showing that there is a lot of economic weakness where does that always start we always see economic
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weakness start from the outside in we might notice greece falling before we see france get in trouble outside of. but in side of the united states we see the people who are at the bottom of the socio economic ladder there where you're going to get your first read on the situation i think that's where we're starting to see a pretty big fall off in driving and i think it's for economic reasons at this point in time you know something we talk about a lot in the show is the effect on the millennial generation and student loan debt the job market health insurance a lot of these people are living on their mom's couch as they're not buying houses they're not buying cars you see this as a reason when you mention the outside in from the from the bottom up when it affects us consumer consumer spending is down so do you think that the this sector is what we're talking about this younger sector that strapped with the debt. absolutely this is part of the equation in the story and you know it just drives me nuts personally to see somebody like janet yellen come on and say well wave your hand and say we don't know why you know younger people are having trouble or why
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a wealth gap exists or why an income gap exists of course we know why it's part of the federal reserve policy so let's pick an example if you live in san francisco apparently no you are below what they consider to be a poverty line if you're not making one hundred thousand dollars and it's almost impossible to get housing there if you're a teacher earning eighty thousand dollars a year let's say your millennia just come out you're earning fifty sixty thousand as a teacher you can make it there without doubling tripling up on an apartment you have forget about owning a car all of that so it's really a whole generation has really been tossed into the bus in this case just so the federal reserve could attempt to achieve a few of its policies so it's absolutely part of the story and that's just the fact we're not even talking about the business of education now i want to thank you for coming on to talk about this always and lightning to see oil prices all the way down to the people at the bottom of the barrel so to speak thank you so much chris martenson economic researcher and co-founder of peace prosperity dot com. time now
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for a quick break stick around though when we get back we. the state of illinois on the red alert to pass a budget or face the dreaded credit problem. and i'm not talking about. the walking selling you on the idea that dropping bombs brings police to the chicken hawks forcing you to fight the battle of. the new socks for the tell you that will be gossip and public but most important news today. off an advertising telling you are not cool enough and lets you buy their product. all the hawks that we along the border will watch.
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what you have for breakfast yesterday why would you put those through. your wife. now i did did you do drink blood boil. well president. trade europe and japan are close to striking a major free trade agreements it is seen as a signal that two of the world's largest economies are against protectionism and that this is a jumpstart to talks for other potential deals the two traded one hundred forty billion dollars in goods last year japan wants to remove high e.u. tariffs on products such as cars and electronics also seeking lower regulatory
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hurdles for japanese companies doing business in europe the e.u. is pushing for improved market access for agricultural products and lower tariffs on food such as cheese pasta and wine this means the u.s. agriculture sector could be set on its back foot japan says that negotiations would continue into this weekend with the aim of concluding a dail at the upcoming g. twenty summit. and one german finance minister has called out regulatory loopholes which forced taxpayers to carry the burden of risky banks wolfgang schauble underscored his country's concerns over the e.u. when it gave italy the green light to spend around nineteen billion dollars on a bailout for two italian banks and then transfer the good assets into insists on pay low the country's largest retail bank urged the strict adherence to existing european union guidelines meant to protect people he wants them followed actually
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strictly now these regulations were put into place after the two thousand and eight financial crisis and subsequent bank bailouts schauble says it's a perfect example of the benefits of these scandals acting as a boon to owners and investors. and state lawmakers in illinois have just two days left before the start of the fiscal year if they don't pass a budget by then they could have a severe credit problem on their hands. joins me in this. audio here for more on that bianca what's likely to happen at the budget isn't passed just a look on the rainy side of the issue well if they don't pass a budget then illinois will likely be given a junk credit rating which would be the first time in u.s. history that a state receives that for a few years now illinois has been dealing with some serious financial troubles and if they aren't taken care of soon it will get much worse very quickly if lawmakers don't agree on and pass a budget by july first s. and p. global reading said it will issue a junk credit rating for the state that kind of downgrade would make borrowing
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costs rise which would undoubtedly turn away investors and it would make the state's other problems worse too illinois already has fifteen billion dollars in unpaid bills and owes nearly a quarter trillion dollars to public employees at the moment the state has the lowest credit rating in the entire country but receiving a junk rating would make it history only american cities counties and territories like puerto rico have been given junk ratings before eventually arling for bankruptcy on wednesday gov bruce around or warned state legislators that they better be ready to work together in a tweet he said at the general assembly fails to send a balanced budget package to my desk by friday we'll have no choice but to continue session until the job is done regardless of this weekend's outcome illinois credit crisis could end up shining a light on other states experiencing similar issues connecticut which has a deficit of five billion dollars has to reach
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a budget deal by june thirtieth meanwhile new jersey's credit rating has fell eleven times since governor christie took office in two thousand and ten on the bright side illinois has a pretty healthy underlying economy and annual revenues strong enough to prop them up for a while. wow illinois any other state on its way to becoming the next puerto rico caused max mass exodus and god forbid but you know it's interesting we've. about this on the show about unpaid pensions and when they're taken into account how they come back to bite the states i can't assume that's part of this but they're in a pickle it is and so when it's pretty different from puerto rico i mean it's a similar problem when in regards to pensions both cannot pay them out right now but the biggest problem for illinois government is partisanship getting in the way of them passing a budget that's the biggest obstacle to them i know shocking not any different than here in washington that's the biggest obstacle for them to get through if they can
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get through that they might be able to pass a budget by saturday but you know illinois is not exactly on the brink of bankruptcy like puerto rico is i mean people are not leaving illinois in droves like they are from puerto rico people can so they saw jobs they're going to go relatively decent modest economy that will be able to help them get through this so it's not exactly like puerto rico there are some similarities but different in the way that they can fix their problem they don't need right court system to come in and restructure everything for them right so it would be the biggest bailout in modern history what happens not snow thank god what happens to the taxpayers of this budget is i'm guessing it'll rest on them yes to be cynical although i know so it looks like it will either see a tax increase if they don't then they'll just be cutting school funding infrastructure funding you know any sort of publicly funded entity is so either way taxpayers will end up paying more for less if they do pass
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a budget it's not really clear what would happen because we don't know the details of said budget if it works or pass so you know they might not end up having a massive tax increase but either way they have a lot of people that are you know about to retire and people that have been retired for a long time but they all lot of money so it's not a problem that could be solved within just one one budget on saturday it will be a long time issue for the government to really sort out because they have a lot of debt to pay right and that debt i mean could it also bleed into sort of the little guy we're talking about the teachers who are trying to make money. raising taxes and then cutting their income or cutting teachers and it just seems like education is one of the first things to be cut in these situations puerto rico but also illinois if that's even on the table yeah i mean that certainly it would be schools to be hit the hardest in fact in illinois a lot of their public universities have bad credit ratings too they're not junk status yet but if they were to get
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a lack or less funds going into this year or next year that would really obviously put a damper on students that are applying there for financial aid and then of course with infrastructure we know that's a problem everywhere in this country but that's something that would also likely be you know the first or second to get those cuts and that just spells even more trouble if you and i and the let's wait to see what it what it is that happening they're setting a bad trend here or good one we'll see we'll see thank you so much boom bust competition and. c.n.n. is in the hot seat this week as producers are caught on camera giving their honest opinion about the outlets trump political editorial policies trump stories at the network are redacted retracted foley actually trump story writers are then fire and c.n.n. talking heads call the trump scandal story line
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a nothing burger not that the head of the network appears to actually care very much but that might change as a merger is in the works and there are whispers that the management landscape there could be altered here to straighten us out on this dirty business is legal and media analyst lionel of why and all media oh oh what we have to talk about today you mentioned this is you call this a recalibration in the news media matrix enlighten us. well this is one of the most interesting topics around lead story because normally lindsay we talk about him. trust sherman and dress segment not believe. all no no no no this is good first let's talk about this everything is happening right now with c.n.n. everything involving zucker the goings on the scaramucci case the possible one hundred million dollar lawsuit all of that has one thing and one thing in common
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only and why it's important because it may get in the way of the eighty five billion dollar merger and the thing that that would have clued would apply a problem would act as an impediment is going to be addressed i hate to say it it's not about intellectual integrity or journalistic ethics it's about not having a problem because that must get through now. when you have this eighty five billion dollar merger that's being looked at who is going to be looking at that the department of justice the antitrust division and who runs the department of justice what's that guy's name again oh yeah donald trump and now we also have another issue we have now follow me on this one it gets better you have democrats led by al franken bernie sanders elizabeth warren who are filing a letter of objection or dare i say caution to the notion of vertical mergers versus horizontal mergers and vertical mergers historically have been considered
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safe because it's like if a car company were to buy a tire company and basically in your sonata that. version is horizontal where chrysler by several a virgin it's a different story you also have susan collins who's weighing in she doesn't like this either she's showing great concern and you have the initial words of one donald john trump the candidate who said i'm not liking this merger i've got problems with this i'm normally mergers for the most part people say well they're kind of interesting but this in view of this c.n.n. curfuffle and brouhaha this makes this merger even more rigorous thing and right now lindsey france as we speak eighty indeed people are leaning forward in telling zucker i don't want you to do anything if we have two three days you put
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you away you move you to an island i don't care your not going to get in the way of this because remember what happened with fox knows why we're there all those changes why ailes why o'reilly because of the sky to the sky projects in the u.k. so while everybody lindsey's to. journalism and secam knows they couldn't care less about this this is a business and anything that gets in the way of business is going to be smoothed over well with this here's what here's one thing also if you're talking about voters the media is under scrutiny right now like never before the democrats as you mentioned al franken and the like they've also got constituents that are angry at the media and if this goes through with the optics involved it's not going to look good for anybody and jeff zucker i mean there are whispers that he might be shelved a bit but i purport that it would be bad optics for politicians to let this go
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through and i think that that would have a very very big implication for them personally well you proport we report wait a minute that's a slogan here's what's happening though eighty is going to say guess what we're in the entertainment business you think see it as a problem get rid of c.n.n. we don't need this it's not worth our trouble they're talking about billions of dollars in content it entertainment they're talking about h.b.o. they're talking about directv they're dumb believe me this this is just this is also trifling impediment it's not worth it but let me tell you something what's going to also happen to this is i didn't know with this alternative media foreign media citizen journalism all of them are going to reap the benefits of this because this is a cataclysmic revolution. that's what this is about we've got to keep an eye on this story because this merger and the business and the optics to me are very interesting and i can't wait to see what happens or who claims he's made c.n.n.
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so much money beg to differ trump has made you money and he's owned you in the process but i think you see a lot of what's happening is that right exactly here's a copy the home game have a nice day we'll see how this comes out out in the wash justice department yeah right like it's going to like this thank you so much for joining us media and legal analyst lionel of lionel media thank you. that's all for now everybody check out the shelf on you tube you to dot com slash the by far to the right.
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i'm a trial lawyer i've spent countless hours poring through documents that tell the story about the ugly side of. corporate media everything uses to talk about the carnage. i'm going to pay to clear picture about how disturbing council blood corporate conduct is because mom these are stories that you know no explain to my parents or your host of america's little question. there's a real irony going. toward a responsible choice of the people and it was always well that's what the terms because it was always expensive it was a big deal and already know it still civilities here you have already while there isn't three stories in the us that in front has used the social ill that it will
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release or if they're worried because it's garbage real it's. the white house on all fronts against the media is this really a winning strategy on this edition. welcomes of politicking i'm laura schwartz in for larry king nearly from its start donald trump's administration has been at war with the media the president's claims of mainstream press reporting he calls fake news about him and his staff have become all too common of an occurrence but lately it seems the accusations have taken on a darker tone and the very important relationship between a free press and the white house seems to get a little more strained each day we'll get very different perspectives.

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