tv Boom Bust RT August 16, 2017 8:29pm-9:01pm EDT
loan down to the next. president of the world bank very. seriously send us an e-mail. time simone dollars ario filling in for lindsey france you're watching broadcasting around the world right here in washington d.c. coming up dilemma americans have taken on a record breaking household debt driven by credit card funding and mortgages are they overstretched and trade talks north american officials descended on washington wednesday to renegotiate what president trump has called the worst trade deal for then business blunders after a sea of c.e.o.'s resigned from a presidential advisory board from announces he's closing the council for good standby buba start right now.
and the two thousand a crisis fades in memory americans are quickly taking on more crippling debt this week u.s. household debt reach a new record of twelve point eight trillion dollars for this year second quarter it's being driven by rising mortgage debt auto loans and credit card debt which has reached its highest level since two thousand and nine and part of the increase reflects americans confidence in the economy and willingness to buy homes and borrow money which does fuel spending but there is dangerous sign some households are being overstretched especially when it comes to swiping plastic total credit card debt climbed twenty billion dollars in the second quarter to seven hundred eighty four billion the highest level since the fourth quarter of two thousand and nine an increasing number of americans have delinquent credit card balances thirty delinquencies. are up to six point two percent from about five point one percent
a year ago and ninety day delinquencies are also up an early sign some borrowers are taking on too much still the numbers are nowhere near the heart of the financial crisis but economists will be closely monitoring this trend to measure consumer distress. now for a currency check first russia is rising the government is taking steps to reduce the value of transactions using the dollar according to russia's central bank sixty percent of russia's external debt is in u.s. dollars while it's still the majority it's the lowest level in three years the country is also reducing its investment in u.s. treasuries dropping five point eight billion in june russia's move to become less dependent on the dollar coincides with worsening relations between moscow and washington last week the deputy foreign minister said russia would intensify efforts to drop the dollar as a settling currency over to europe now where a weakening euro has boosted european shares which are on track for the best week
since april europe's stock index rose for the third day in a row along with a weakening euro this week basic resource stocks like metals and oil are behind the boost but if the euro looks weak to you it is nothing compared to the pound which had a seven year low against the euro on wednesday at point nine one per euro. u.s. vice president mike pence is in south america this week talking trade with u.s. allies and reiterating on behalf of president donald trump that america first does not mean america alone in argentina he stressed u.s. interest of creating more trade deals with its partners the united states wants more tree with what we want to do. with the regime. not only in free trade will have surgery. well his speech comes on the eve of trade talks in washington.
where trade officials from the trump administration are meeting with their counterparts from canada and mexico for the first time to discuss the future of the north american free trade agreement the talks come just a few months after president trump decided to renegotiate terms of the deal rather than completely scrap it but how much change can we expect in what trump has called the worst trade deal ever we have team coverage on nafta negotiations today boom bust in the washington at the white house alex mileage joins us from halifax canada i want to start with you has trump's rhetoric on now changed since he called it the worst trade deal ever. it certainly has changed a lot or halt during the campaign he famously called nafta the worst trade deal ever in the history of the u.s. trade deals and had a lot of negative rhetoric not only on nafta but also on t.t.p. . and just trade deals in general but once he was elected to office his tone really
softened and then in april he announced that instead of scrapping nafta all together like he did with p.p.p. he would be open to negotiations so as for the u.s. side what we can expect out of today and the talks moving forward tromp officials want to see a change in labor regulations in particular how it impacts wages and how you know we can prevent the pushing down of those wages through outsourcing labor they want to see a change in the way we combat currency manipulation and they also want to update the dispute resolution process which if it were to be changed would just make it easier for all three sides involved enough to meet and talk about changes they would like to see in nafta in the future without having to put on this big production but in addition to those three points we're seeing and hearing a lot from trump officials on modernizing our because it was created almost two decades ago over two decades ago at a time where we didn't have access to as much. ology so take a listen to what u.s.
trade representative robert light hisor had to say about that today. nafta needs updating it's a twenty three year old agreement in our economies are very different than they were in the one nine hundred ninety s. . we need to modernize or create provisions which protect digital trade in and services trade e-commerce update customs procedures protect intellectual property improve energy provisions enhanced transparency rules and promote science based culture will trade. so you know by the way even if trump does approve a deal that officials come up with which by the way will take at least six to seven months even if he does approve it will have to get approved by congress and there's no implication that that would be any sort of easy feat at all because on one side we have republicans and democrats that want to see big changes now but then on the
other side we have plenty of republicans and democrats that only want to see minor changes so even if he comes up with a deal or if they come up with a deal that he likes it's going to likely be a difficult process to appease both sides of the aisle you're absolutely right but it's not just about what the u.s. wants alex over to you now what are some of the demands that we can expect canada to make during the nafta negotiations. when you know much of what has been said already a canada wants a lot of things that the u.s. wants we're talking about one point one trillion dollars in trade annually which is a big deal for everybody involved let's just look at a chart here this basically shows you just the amount of growth that we've seen on an annual basis from a nafta for all three countries of involve us mexico and canada and of course you know let's go to the wish list was really what we're trying to talk about here what canada wants a lot of things that america wants but when you break it down a new chapter on labor standards is something that was already mentioned but also environmental standards are important gender rights indigenous rights progressive
things they can unions want to push this forward to make it not just an economic agreement but a social ingredient for people in the labor market for people of minorities for indigenous people that supported thing when it comes from the canadian side also. reform to the investor state dispute settlement that's chapter of leaven of not stuff basically the government a canadian government wants to have the right not to be sued by companies they want to have the right to to protect the health of people within canada expand procurement that's the third one procurement meaning that you know cities in the states if they're building infrastructure they can or can try to sell let's say it's steel for bridges etc we know that a lot of protection has been protectionism has been happening so canada would like to be able to see this go across the border both ways if we want products from the states the same way that americans want the products from canada to keep things at a lower price freer movement for professionals that's the big one with the high tech game coming into play this time around after almost twenty five years we know that technology is a huge they want to see these as the able to make people move from the states
canada canada the states you know for everything from video game companies to google to facebook we need to have this freedom of movement especially in the high tech sector and also freedom of movement goods that canadians want to see the borders actually loosen up become easier to ship things from a to b. as we see in the e.u. for example now protect canada supply management system we know that's a big one when it comes to dairy and also the similar industries to that cultural exemptions that's a huge one in canada for example on radios in canada certain percentage of music has to be actually canadian made music were smaller country than you are it's thirty five million people so if it wasn't for that i think everything we'd be seeing on t.v. and our hearing on radio would be actually of american origin and finally maintaining the process to regulate antidumping that's a big one when it comes to softwood lumber we know that's really a hot button dispute between canada and the states so that's something that's going to be discussed at length for sure they were being honest here the fact that we're talking about nafta negotiations at all is because president trump made it
a priority when he was running in during his campaign but bianca it's not the same tune that he had during the campaign how the american businesses responded to news that. might not see as many changes as trump initially suggested and promised. so far we're seeing most businesses respond pretty positively to the fact that we will most likely not see major changes to nafta and that it won't be totally scrapped away with you know that doesn't mean that there are businesses that don't have their own grievances with that because they have been vocal about that but ever since nafta was implemented back in the ninety's it really tied together the three economies of nafta the us canada and mexico in fact you know on top of that dependency you know the jump in u.s. exports to canada and mexico skyrocketed in fact there are two biggest export markets we're talking about over a trillion dollars
a year and you will trade so if there was a major change to now that there would be a major change to the u.s. economy and businesses and jobs and i mean most analyst estimates are expecting that if there were big changes to nafta we could see up to fourteen million jobs at risk so not only would it look bad on the businesses and obviously be a struggle for them it wouldn't exactly look good for president trump either considering the reason he goes after these sort of trade deals is to protect the american worker so you know it's it's not something that they are upset to hear about at least not right now you know as long as that we only see minor changes and renegotiation of the tenets of the deal and it's part of the reality that there's going to be some sort of disconnect here what politicians may want and what business realities are they may conflict during these negotiations alex what can you tell us about how supply chain management is a good example of this. was a great example of it because i was just mentioned by bianca our systems are tied
together and globally we're tied together when it comes to north america mexico canada the states were so closely tied since nafta that would be very difficult to change things so let's see just the auto industry we know that each and every day trucks pass from the states. canada back and forth to build a single car so auto parts of moving back and forth between the two countries to change that would mean changing the whole entire system changing the industry we know here in nova scotia where i'm at right now in nova scotia we have thirty two hundred people that work for michelin tires there was some talk about moving some of the operations to the states or leaving some things in canada if you if you move this supply chain you're trying to change it around so companies will just get up and leave north america all together because they could actually save money by working from let's say europe or from asia so the supply chains that we have right now are actually helpful to the people that we have our labor markets here in north america can canadians are not in competition with americans when it comes to even moving across the border we make the same type of wages you do so it's not about
somebody trying to undercut somebody else that same way with the supply chains they are relevant to one another we work on the same level and that has to be maintained and kept up to date and of course pushed forward so people are hoping here at least that nafta does stay the same when it comes to that or maybe that we could even improve like i mentioned before that that movement is easier than it was before a lot of implications for north america here bianca sheeny alex niall of edge thank you both so much for that report. all right time now for a quick break stick around when we return trump calls amazon a jobs killer and his latest twitter feud and will artificial intelligence and robots present more risk overworn and bring line along to give us his take as we go to break here the numbers at the closing bell. i.
called the senior legal. everyone in the world should experience. and you can get it on the old the old. the old according to cheshire. welcome world come along for the. pledge you have for breakfast yesterday why would you put. your wife or. what's your biggest fear a little bit on the hayride was the last time the medical board you say if you ever met the pope comes the best quarterback or exploring the topic that doesn't belong on the piece now i've interviewed you to question more.
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. to support his claims of russian 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 the government claims that cannot be verified you would have thought they would have learned something after serving as 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.
you know what you treat it looks like a real victory would be analyzed from the bottom. just like with the like you know i got. three. weeks so. it's a seemingly grim picture for us inflation according to federal reserve minutes released wednesday afternoon while some policy members are sticking to their original two percent forecast for the year many more saw the likelihood that inflation might
remain below two percent for longer than currently. expected some called for a pause in future interest rate hikes until it was clear the economy had more strength they voted unanimously to keep rates unchanged for now it still forecasts one more rate rise before the end of this year though twenty seventeen has seen two great hikes so far compared with one each of the previous two years it is a sign of low unemployment in moderate economic growth though the fed agreed to pay closer attention to inflation in the meantime policymakers are more eager to start reducing the balance sheet that is selling off the central banks bond portfolio while many were prepared to announce a start date for the selloff in the end the fed decided to wait to make a concrete announcement the fed's next meeting will be in one month september nineteenth and twentieth when many analysts believe they will trigger that reduction.
in a bombshell announcement president trump said he is shutting down two of his business councils after a sea of c.e.o. resignations the update came in the form of a tweet of course the president said rather than putting pressure on the business people of manufacturing council and strategy and policy for him i am ending both thank you all after violence in charlottesville virginia over the weekend between a white supremacist rally and counter protesters which ended in the death of one counter protester and several injuries the president laid blame on both sides the comments triggered a mass exodus of c.e.o.'s serving on one of the president's advisory councils let's bring in former u.s. trade commissioner bart chilton to talk about the impact all of this is going to have on it bart trump doubled down on those initial comments in a press conference tuesday that was meant to be talking about infrastructure that led to more business leaders like a.f.l.-cio president richard trumka to leave the manufacturing council republicans are denouncing his comments that k.k.k.
leaders are praising his comments what do you make of how all of this is unfolding . well i think really and i've been samone pretty you know helpful i think at times to the president in talking about his stuff that's in my lane business strategies except try and i've tried to be really fair but this one just takes the cake i mean this is really pulling i think the white sheet off the the white house ronald reagan famously talked about isolated groups in the backwater of the united states that had perverted views but i think the president's breathing new life into some of these racist and anti-semitic groups and it's just a shame and i think it's going to have a residual impact upon the economy and markets and his entire presidency quite frankly it's sad it's scary and it's really a shame or looking behind you add to all of the business leaders and c.e.o.'s that resigned in the wake of charlottesville merck c.e.o. ken frazier was the first to take
a stand after the weekend's events to those public announcements though do they do they help or do they hurt these companies well i mean with regard to merck i mean their stock jumped right after that and in the morning and overall merck is up seven point two two percent from their low not too long ago and by the way you know the president tweeting that he was canceling these councils one had already been canceled the c.e.o.'s met this morning on a call the other was due to talk a little bit later this afternoon right around now they probably would have done the same thing so the president tweeting that he's canceling them is sort of like you know quitting before you were fired by your. so but it's really a shame because these business leaders these councils you know they're not the most productive thing in the world it's not the president's fault none of them really are that productive right they're more about photo ops and they're ceremonial but they are importantly about relationships and presidents need relationships with
these business leaders and i think the. relationship he has with them now is gone to heck and i am basket he can't call upon them they're embarrassed by him and i think what people have questioned is that a bubble in markets now i think the hot air that the president himself has filled some of this bubble with will slowly be seeping out as the confidence in markets and company uses decrease because of what's gone on it's not all due to the president the profits are rising in many of the tech companies and mcdonald's and others but a lot of the rhetoric that's been going on with the president since day one when markets of skyrocketed as you've reported simone i think some of that's going to be seeping out so aside from the faces that we have behind us there are there's a lot of c.e.o.'s that did not resign in the wake of all of this that decided to stick it out with the council for the time being are those people heard if you're saying that merck's shares went up after the comments are that are those c.e.o.'s
and the companies that didn't step away from the white house and distance itself are they look down upon what's a good question and i think a couple of them came out right after the president we didn't i was going to resign also same sort of dynamic i described you know look in general companies don't want to pick sides in sort of the partisan politics of any time but that doesn't mean that they don't have a moral obligation to stand sometimes and that's what i think not just frazier but the others here behind us on the screen done that they've you know we can't just sit by and let this go on challenged i want to read what the intel scene said when he stepped down he said that politics and political agendas have sidelined the important mission of rebuilding america's manufacturing base do you think that's true i do i mean anybody know what they were supposed to be talking about infrastructure yesterday i happened to end it with not much by the way some executive orders say the though
a wave environmental protections if we start building more bridges etc in flood zones and the. like the bottom line is the president has only produced six pages on the trillion dollar infrastructure program that's going nowhere fast in congress and that's one of the things that business leaders and markets are looking at to boost the economic engine of our democracy and it's just not happening and this administration doesn't seem to have a clue as to what they're doing what is it do to his reputation as wanting to be a jobs president for the next four years well it's horrible i mean i mean look they give him credit he hasn't messed things up so far until this event with charlottesville i mean there is a time and i think this is why these leaders are leaving when you've got to look to like dantes quote about you know there's a special place or a dark place in hell that's reserved for those who claim neutrality in times of moral crisis that's what these business leaders have done they've said enough is enough and the economy i'm worried is going to suffer companies are going to suffer
so it's a shame like i say it's scary and a little depressed about it quite frankly let's talk about the economy though is this something that's going to be strictly u.s. based is there going to be a rippling effect globally or do you think the economy with with the signs of strength that has been showing will just continue to try john i think some of it will try john but i think there is a little bit of a bubble within markets and i think that slowly going to be seeping out and i think you'll see the residual impact in global markets i mean around the world leaders have to be and i read what they've been saying in the last twenty four hours either just disgraced and bummed out by what this president has said or our enemies those who would wish negative things upon the country are sort of smiling and you know can't wait to deal with various actions in the future is just a horrible situation that we're in right now simone and this president has brought it upon him self period all right former u.s. trading commissioner bart chilton always a pleasure to have you want to get your thoughts on this thank you so much. while
trying continued his attack on. amazon dot com wednesday likely in response to recent unflattering articles and commentary by the washington post also owned by the amazon c.e.o. trump tweeted amazon is doing great damage to tax paying retailers towns cities and states throughout the u.s. are being hurt many jobs being lost now the president is not wrong in a lot of ways amazon's growth has turned the u.s. retail market upside down and retail sales continue to drop but amazon is touting fifty thousand job openings and even held a nationwide job fair this month to fill those positions still the company's moves to expand reach for example buying whole foods does raise questions about jobs following the tweet amazon stock traded more than point three percent lower. beliefs in technological advances leave us with
a world of possibility but not all outcomes are positive the world economic forum recently weigh the benefits and the risks of advancing technologies and found that in many areas human attempts at regulation are too slow to keep up and we can't see far enough in the future to imagine all of the native consequences to top balance before all the jobs are gone and all of our information is hacked is legal and media analyst lionel of vinyl media leinil this report found that artificial intelligence and robots carry the most risk followed by cyber security risks associated with the internet of things how can he keep up with technology. well a couple of things let's focus on robots and ai for a moment robots are machines that are basically programmed to do some artificial intelligence ai is programmed to program it so that the difference very very important difference now luckily for us so well known in areas such as
cloning there have been statutes and treaties that science and universities and countries have agreed upon not to clone humans not to attempt certain forms of cloning which is great many countries have made great great success and headway in terms of banning let's say g.m. all those and there are very very new attempts now to replace and to act almost as a penalty for those people who replace human jobs with robots when we get to the notion of artificial intelligence when it comes to warfare when it comes to anything that involves something other than productivity that's the problem and that even goes beyond technology where we have less than a minute lionel but i wanted to get this out i mean the goal really when we're thinking about technology is to avoid stifling the positive advancements what suggestions do you have. the first thing there was to realize what it is that we're doing ahead of time oftentimes technology the first move is to do it marvelously isn't that cool and never think about the repercussions in terms of jobs in terms
of unemployment and in terms of the impact on society that too often comes afterwards so we must very simply put think ahead before we act all right any other thoughts that you have line along robotics quick twenty seconds left. very simply does artificial intelligence is what frightens me robots are great robots are cool robots are funny artificial intelligence remember the joke or the doc is when something replicates itself that is what scares me and as they say keeps me up at night all right legal and media analyst line all of one all media always a pleasure having you on thank you so much thank you. that'll do it for us for now you can catch us behind the scenes on twitter out boom bust our teeth check out this show when episodes you've missed on you tube you tube dot com slash boom bust r.t. thanks for watching see you next time. would
all the world. and all the news companies merely players but what kind of partners are anti america play r.t. america offer much more artsy american person with. many ways to use landscape. just like the real news big names good actors bad actors and in the end you could never you're all in. so much parking for all the world stage all the world's a stage all the world's a stage and we are definitely a player. in. global war hawks selling you on the idea that dropping bombs brings produce to the chicken hawks forcing you to fight the battles of the stone and. the new socks credit tell you that what we gossip and probably worth while for the most important news today. while i'm off the bat has been telling me you are not cool enough and
that's to fight their product. all the hawks that we all have or will walk. on larry king now from london they indelible anyone if i feel like i want to write music and continue recording it will be a time for the i like to be free i don't like to schedule i'm one of those performers that. i get nervous and i put so much into my performance that i find it exhausting and a lot of musicians love nothing better than being on stage and i don't get that i don't know some of the things i think about one and a half hours is really maximum you could change one thing i would give a gift of intelligence and humanity and compassion to.