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tv   Boom Bust  RT  July 31, 2017 4:29pm-5:01pm EDT

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so when you want to be president or injury. or someone want to press. that's it right to be press that's what before three in the morning can't be good that i'm interested always in the waters of my. question. here's what people have been saying about rejected in that it was actually just full on awesome the only show i go out of my way to launch you know what it was that really packs a punch oh yeah it is the john oliver of r t america is doing the same we are apparently better than blue the things that i see people you've never heard of love are down for the night and i'm president of the world bank so are you going to work for me seriously send us an e-mail.
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time simone dollars aureole filling in for lindy france this is broadcasting around the world from washington d.c. coming up a constitutional crisis the u.s. lots of venezuela's president would think after sunday's chaotic election and shiny are than gold with the dollar dipping gold doesn't go too but a different mineral could end up dominating the market plus freezing assets the e.u. is looking at ways to keep residents from cashing out during an economic crisis that more coming up on boom bust it all starts right now.
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the trump administration is slapping saying since directly on venezuela's president a follow through after promising swift action. against nicolas maduro for carrying out an election sunday the u.s. considered to be a sham in a rather unusual move against a foreign leader the treasury department is freezing any of those assets subject to u.s. jurisdiction and bars all u.s. persons and companies from dealing with him claimed victory in sunday's vote to form a constituent assembly a legislative super body that has the power to draft a new constitution for the country the opposition boycotted the vote and refuses to recognize the results the day was marked with protests and violence the country's chief prosecutor's office reports at least ten people are dead from the day's clashes called the election the greatest constitutional victory in the history of
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venezuela and says the new legislative body will be a place for dialogue with those who want peace he's repeatedly blamed president donald trump in the u.s. for his country's unrest claiming america is trying to orchestrate a coup in response to the election the us state department announced they will continue to take strong and swift action against the architects of authoritarianism in venezuela including those who participate in the national constituent assembly as a result of sunday's election it's unclear if there will be any more sanctions and if so what form they may take so far the u.s. has stuck to individual saying sions against venezuelan officials but u.s. oil markets are bracing for a potential fallout with venezuela if the u.s. decides to go after oil the harshest penalty would be banning venezuelan oil shipments to the u.s. most analysts believe trump will not go this route venezuela accounts for nearly ten percent of u.s. oil imports but he could block sales of lighter u.s.
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crude to venezuela which would force the country to buy elsewhere at a premium and further harm its economic standing crude oil jumped to more than fifty dollars a barrel sunday driven by possibility of new sanctions expect prices to remain volatile as venezuelan crisis continues well the dollar has been dipping so far in two thousand and seventeen which can drive invest. to the precious metals market to buy gold but what about an indian man's mineral financier and mining industry player robert friedland made the case for copper in vancouver last week he's incredibly bullish on the mineral estimating it'll increase nine fold in the next twenty years out shining gold copper is currently trading around two eighty nine a pound a two year high meanwhile gold is bouncing back from a dip in december still chasing those two thousand and sixteen values to talk about how comfort could come out on top i'm joined by peter schiff c.e.o. of euro pacific capital peter friedland says he's confident copper will outperform gold as an investment in the coming years but obviously we have to look at where
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his opinion comes from his company is currently developing one of the world's largest com for projects in the congo so i want to ask you what's your outlook on copper do you think that he's right that it could outperform gold. well if anything could happen and i'm bullish on copper i think he's right to be optimistic you know there's going to be more demand for copper particularly if the dollar keeps falling and hit a new low for the year today i think the dollar is going to keep falling that's going to keep stoking worldwide demand for commodities particularly out of china you know i am expecting a very sharp move up in the value of the chinese currency you're going to see more copper imports in china so all that is bullish and of course you know you have a lot of people now looking at electric cars i mean copper is very important ingredient or a component of the batteries in the engine so to the extent that more people want to left it will power vehicles that's another source of demand for copper that wasn't there before so i like copper i'm invested i have exposure to copper i own
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companies that mine copper that own copper but gold is a monetary metal and so i think the price of gold is going to be basically marching to a slightly different drumbeat than the price of other industrial metals like copper but i think they're all going to go up but i think it's a stretch to say that copper is going to outperform gold because i do believe that we're going to have a monetary crisis a dollar cry. this and i think people are going to rediscover the monetary properties of gold and gold will be used as money again and when that happens i think it will have a premium so i you know i wouldn't i wouldn't i would be selling all my gold by copper and i mean you're saying you're bullish on copper but nine fold in twenty years that's pretty silly. well he's talking about the dollar price so hey anything is possible there i mean i very bearish on the dollar but if copper is up nine fold it probably means a lot of other things are up a lot against the dollar to the question is is the price of copper going to go up in terms of gold and that's a totally different question in there i'm not so sure i mean i'm confident that
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copper prices are going up in dollars i even think they're going up in euro zone yeah another few currencies that might not lose as much value as a dollar but it's hard to say whether the real price of copper meaning copper in terms of gold is going to go up or down because i think demand for both is going to go up in the years ahead but both don't really have the kind of meet the demand that's facing both the copper and gold industries what are some of the challenges that gold tases. well you know gold still faces a lot of skepticism i mean look at gold is not really up that much this year i mean it's up but given how much the dollar has fallen you would have expected and i expected gold to be up more in fact in terms of currencies that are not the dollar the price of gold is barely moving so i think you still have a lot of investors who believe that rising interest rates are bearish for gold or still believe that the central banks were successful in solving problems that now that they can take
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a victory lap and normalize interest rates or shrink their balance sheet i think this is all fantasy wishful thinking at best or outright denial or just lies but i do believe that as the truth rears its head you're going to see investors flocking back to gold again maybe even more so than they did in the early stages of quantitative easing when the price of gold moved up to one thousand nine hundred in two thousand and eleven i think that reaction investors looking to buy gold was the right one i think when they gave up on gold because they believed all the hype coming from the central banks regarding how successful their policies were i think that was the wrong reaction and investors will go back to their initial kneejerk reaction which is. to buy gold in self currencies well even argues that unlike copper gold doesn't really have the same kind of disruptive technology entering the marketplace so for example you spoke about this earlier copper has the electric car and that's going on right now. they also have the china ban on scrap metal imports
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so those are things that are driving copper prices to go up but he argues that gold doesn't have that same thing to keep boosting it forward. it does i mean it has a different dynamic but of course you know as there is greater demand for copper there will be more money invested in capacity to mine copper and that's going to happen eventually but in the short run i agree there are a lot of commodities that are going to be in short supply and the prices are going to go up but would gold has going for it is the fact that the world's monetary system is a mess and i believe that the dollar is going to lose its role as the reserve currency and the world is going to have to find a new monetary system and nothing works better than gold and i think that the world central banks of the people around the world are going to be rediscovering why gold has been money for thousands of years and i believe that we will return to a gold based monetary system rather than a dollar based monetary system and so when people around the world and banks around
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the world rediscover the monetary properties of gold then all of a sudden there's tremendous demand for gold that has been absent for decades and ever since nixon took the world off the gold standard in one nine hundred seventy one the gold hasn't played the role that it has historically played and the world has suffered the consequences but when we read brace gold that's a whole new source of demand and i think that's a lot more revolutionary or potentially disruptive than electric cars when we first started this conversation i mentioned that the dollar's been dipping for all of twenty seventeen how much lower do you think it will go. but i think it's got a long way to fall i mean all we've really done is reversed the the trump rally and that and a little bit i mean i think the dollar rallied about six percent over the dollar index from the election of trump to the inauguration of trump it's now fallen by better than ten percent in fact if you look at the dollar index we just cracked below ninety three today so we're now trading at a ninety two handle i think the key support is just below ninety two ninety one
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ninety if we close below that then we could return to eighty on the dollar a day actually that would take us back to where we were at the beginning of two thousand and fourteen and then below that maybe you know once we crack through seventy one ish that's the record low right we got down to just below seventy one in two thousand and eight right before the financial crisis then return to that level again in two thousand and eleven so we've got a bit of a double bottom just around seventy one but i think by next year we could take that out and then it's you know if the bottom drops out i mean sixty as a minimum would be my target on the dollar index by ultimately think it's going a lot lower than that i mean imagine this the dollar is weak right now with everybody believing the fed is going to keep piping rates with everybody believing the fed is going to do quantitative tightening imagine how much weaker the dollar gets when the fed has to admit run a recession call off the rate hikes go back to the rate cuts and launch q e four we're going to have to wait and see what happens when that does happen peter schiff
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c.e.o. of euro pacific capital a pleasure to have you on thank you so much. last month spain's bronco couple are was a victim of the biggest bank run in the european union as a result of the bank spent billions of euros in emergency funds and needed to be rescued by government regulators to prevent similar scenarios from happening in the future the e.u. is proposing new measures that critics say. it actually makes things worse boom bust bianca sheeny has more on that for us now bianca how long have you regulators been working on this proposal so regulators have actually been working on it since the beginning of the year but once bunco popular have their crisis about a month ago they really have been hitting the ground running to get this official proposal to everyone for approval one of bank fails the impact structures far and
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wide across the economy is that it operates in and even though it's been almost a decade since the global financial crisis some countries still haven't agreed on how to deal with struggling banks and the european union a new proposal on how to do that could make the decision harder regulators are debating whether to allow banks to block people from withdrawing money from their accounts to prevent a bank run however the world would allow customers to take out a limited amount of money in case of emergencies it was officially proposed by the stone ian presidency of the on july thirteenth but envoys haven't reached a decision on it yet talks are expected to continue sometime in september but nothing would move ahead without the approval of lawmakers plan would certainly work in favor of the european central bank as it almost totally be off the hook when it comes to lender insolvency but the actual banks aren't exactly on board yet if the measure were to be implemented they're afraid that it would discourage
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saving with them at all oddly enough it's a concern that the european commission once shared with them back in november the commission proposed a similar rule that excluded insured deposit hers fearing it could have a negative impact on market confidence according to the latest proposal no depositors would be safe in the commission has yet to comment on it and most euro area banks have with held their thoughts as well. if this proposal were to be implemented is it the first of its kind not exactly so as i just said in november. european commission proposed a similar one but it protected insured deposit others who have had under a certain amount in the bank this one does not protect insured deposits no matter how much they're holding and more importantly some other states like germany have policies like this already in place so those companies that already have this type of rule support an e.u. wide rule because they are anyhow then for what you know it's work for them but
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also when you consider the debt crises in italy and greece and portugal you know they say that it's more important now than it's ever been to have this sort of rule in the e.u. considering the crisis that are really slowly imploding all that i'm thinking of right now is the images back in greece where the long lines out for an a.t.m. where they were limited in how much they could withdraw bad news for people if it comes to that but some analysts say could be good news for bitcoin why is that so the cryptocurrency community is probably the only group that's excited about the news of this because you know the idea is simple if people feel that they can trust banks to hold their money and be able to take it out they're going to put it into bitcoin because there's no central authority and they know it's safe there and in two thousand and thirteen cyprus had a banking crisis and we saw that coin jump in value by eighty percent so you know if the e.u. were to impose this rule we could see bitcoin which is already kind of doing well
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and has been performing well so far this year already it could be a big win for the bitcoin cryptocurrency community but they also don't really like bitcoin so we could see new rules regulated on the cryptocurrency end as well right . you think for bringing us that report. all right well time now for a quick break but stick around because when we return the koch brothers may despise donald trump but they're still willing to put their money and muscle behind one of his plans as you go to break here the numbers at the closing bell. play. a. little. all the worlds are still in the news companies merely players but what kind of
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partners are anti american player marty america offers more artsy america first lead many ways to slim just like the reviews the new series bad actors and in the end you could never know you're on. the market the world's the world's all the world's a stage and we are definitely a player. i'm a trial lawyer i've spent countless hours playing through documents that tell the story about the abuse side of the. corporate media uses to talk about the carnage. i'm going to get a clear picture about how disturbing how the love for the. future stories that no one else. might have to hold the american look which.
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would you have for breakfast yesterday why would you put those through the face. of. what your biggest fear. of the moment you lose so let's let it hold you say if you have that. but what about the next one tough. if you did the. work. today in the t.v. world a multibillion dollar merger means one company will now control one fifth of all cable viewership discovery communications is buying scripts network's interactive for fourteen point six billion dollars discovery brings to the table channels like animal planet and the discovery channel with a primarily male audience scripps is home to h.d.t.v.
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the food network and travel channel a largely female audience together the two will account for about twenty percent of all cable viewership according to barclay's this will give the newly merged company a heavy hand when negotiating contracts with distributors at a time when more people are watching online video through subscription services like hulu netflix and amazon prime cable t.v. is struggling to stay competitive with this new deal discovery now has more to offer when negotiating skinny bundle packages with cable writers what's unknown is how the now combined company will compete in the long term as the cord cutting trend continues well as of close monday discovery stock dipped more than eight percent on the news well scripps was up more than half a percent. and the koch brothers have made painfully clear how much they dislike and disagree with president donald trump but the billionaires are willing
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to put aside those differences for one reason only to overhaul the u.s. tax system on monday trump admin officials appeared with top leaders of coke's network to promote a tax plan at the newseum in washington the koch brothers are putting their money and muscle behind the overhaul but so far the details are slim what we do know is. both trump and the koch brothers want to see the corporate tax rate cut from thirty five to fifteen percent they also want to see individual tax rate brackets cut from seven to three categories koch affiliated groups are spending millions on grassroots efforts to promote overhauling the program while the white house and republican leaders have just released a one page statement that promises to reduce tax rates as much as possible allow unprecedented capital expensing place a priority on permanence and encourage american companies to bring back jobs and profits trapped overseas the trumpet ministration has promised a more detailed plan by early september.
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the number of new people filing for unemployment each week in the u.s. has been below three hundred thousand for one hundred twenty five straight weeks it's the longest stretch of this kind in more than thirty years initial jobless claims have been a quiet economic indicator my next guest thinks maybe a little too quiet joining me now danielle de martino booth founder of money strong l.l.c. financial columnist and author of fed up an insider's take on why the federal reserve is bad for america danielle we know there is a lack of skilled workers in the united states which is why we've been seeing companies holding on to these qualified employees for dear life big reason for seeing such low volatility in the workplace what do you think happens next. well it's interesting you know we've seen the level of carnage that we have in the retail space in brick and mortar store closings we're starting to see some follow
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through with some of the larger scale restaurant change but beyond these things that we know are kind of coming down the pipeline we're also seeing a slowdown in commercial construction we're seeing big names like microsoft and boeing announce layoffs as. well we know that the automakers have hit a plateau in terms of production i've been hearing anecdotes that auto suppliers have been asked to cut back on production as well so my thesis here is that we have a lot of of coming layoffs that are building in the pipeline what's to come and it's interesting because if you look at the volatility of jobless claims you can cruise through every single recession that we've seen since world war two we have never seen jobless claims this quiet you speak to analysts and they say one thing there's only one way that they can go from here and they i want to show our viewers what you're talking about about how quiet the volatility of the job market
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is if you can see that over span of decades there and then at the very end of the chart that our viewers are seeing right now it's a big stretch of jobless claims with no spikes are you arguing though for more volatility i think that you know i will i will actually agree with where this is going i think that there's only one way for jobless claims to go at this juncture you know we had seen some weeks where there were spikes downward spikes downward and what we've seen is that claims are now having near a three month high and again they don't reflect yet a lot of the layoff announcements that we've already heard so obvious paying closer attention going forward to the challenger gray and christmas numbers that we get this week during payroll week and i'll be also paying really close attention to the reasons companies are citing for laying off employees for a while there it really has been store closures which again we we've all seen the
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bloody headlines about retail this is something that we know it is the no known but for the last several months challenger gray's data has shown that it is cost cutting that has now taken a front seat if companies are beginning to get concerned about profit margins and they're cutting back on their payrolls in order to reduce their. boss this is a game changer for the current recovery which is just stretching into its ninth year and how is that idea of cost cutting so significant to you as far as layoffs i mean some people would say a layoff a layoff so why the fact that you're seeing this trend of cost cutting why does that stick out to you. well it's one thing to say that there is a merger and acquisition and therefore there's redundancy it's another thing to say well we're closing down x.y.z. number of stores if you're serious or macy's or j.c. penney obviously these are these are positions that are going away that don't have to be come back that won't come back but what if you're a company saying you know what i've got margin pressures my costs have gone up my
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fixed costs have gone up i've got to figure out where i can cut things because the demand i see looking forward is not there that means the economy's slowing down if you start just to begin cutting payrolls in order to cut costs that is saying something about people who hire and fire people not seeing the demand going forward for their product or service then you know we used to watch jobless claims very closely to gauge how the economy was doing but they've been steady for so long you arguing we've gone the other way really what's your case for paying closer attention to this economic indicator again my case is the fact that we've seen a we've seen a shift in the behavior of companies we've seen a shift in the reasoning behind the layoffs and we've seen a broadening out beyond your usual suspects that are just victims of amazon that's not what it is anymore these are no longer headlines that we can ignore and i and
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we've seen a follow through in continuing claims so i would be paying and i've quit muting my television at eight thirty am eastern standard time on thursday mornings i'm now officially paying attention because we're starting to see follow through at a higher level i think that this and press. didn't it post-war era of zero to know volatility is going to come to an end here now do you expect any of these changes to be featured in next week's jobs report i mean do you think it's going to happen immediately or do you think at least for now it'll still say pretty stable from everything that we have seen especially in the confidence data the stickiness of the jobs the lack of skilled workers it's still present but i would say that the coming months as we move into the fall as we start to see an accumulation you know i'm looking very closely at the back to school season because there was an overabundance of pain that came out of the christmas selling christmas selling
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season that we weren't expecting i'm expecting another round of pain after the back to school season also disappoint and at some point you will see the critical mass of layoffs that are building finally pan out in the monthly payroll data which industries do you think are most at risk right now for layoffs. well again beyond beyond the regulars i would say that the lack of project and worse announcements that we're seeing a commercial construction indicate that we're going to see a peaking in a rolling over in those payrolls same thing with residential real estate as we learned with with fresh data about pending home sales home sales have gone nowhere literally for six months in a row so i would suspect that we're also going to see a rolling over in residential real estate and then we're seeing valuations start to come down in these unicorn type of industries microsoft might not be the only technology company that is looking to pare back there might be others that follow as well oh it's interesting to hear you list all that stuff off because we do know obviously retail is dying we know that big department stores are shuttering their
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doors but they hear all these other industries that they have may be slighter indicators that we are paying attention to and we need to pay attention to restaurants as well going forward because they've committed an identical sin they've got there their footprints are too big because they followed retail brick and mortar into over expanding to neil de martino booth founder of money strong l.c. financial columnist and author of course of fed up an insider's take on why the federal reserve is bad for america thank you so much for joining us today thank you. all right that's all for now and check out the show on youtube youtube dot com slash boom bust our teeth thanks for watching see you next time.
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i do not know if the russian state hacked into john podesta emails and gave them to wiki leaks but i do know barack obama's director of national intelligence has not provided credible to support his claims of russia i also know he perjured himself in a senate hearing planned three months before the revelations provided by edward snowden he denied to be n.s.a. was carrying out wholesale surveillance of the us. the hyperventilating corporate media has once again proved to be an echo for government claims that cannot be verified you would have thought they would have learned something after serving as
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george w. bush's useful idiots in the lead up to the invasion of iraq. it is vitally important that the press remains rooted in a fact based universe especially when we enter an era when truth and fiction are becoming indistinguishable. people have got to know whether or not fair present or surprise people deserve to know the answer first at this point does it mean a guard against the military industrial come. we shall never go. to war you should know that. we do what we must with a. future.
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would you have for breakfast yesterday why would you put those through. your wife. now i've had to do due to one more. we have on our t. tensions here that between the u.s. and russia as russian president putin orders u.s. ambassadors conduct the country in response to sanctions are we heading toward a second cold war. and western nations are criticizing china saying it needs to take more responsibility for north korea but china has a different story. than the u.s. lab same sions on venezuelan president nicolas maduro after an election this weekend that many are calling a sham the latest. it's mind.

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