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tv   Boom Bust  RT  September 16, 2017 3:29am-4:01am EDT

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we all do what i did was. to leave. just because. i. need filling in for lindsay if you're watching boom bust broadcasting around the world right here in washington d.c. coming up on the show were how is it that point exchanges in china don't have a very bright future ahead i sat down with the former u.s. trading commissioner to discuss what it could all mean. and natural disasters could the impact of perkins and irma offer a positive turnaround one guess will tell us what she thinks and where did it go and new report shows just how much money can tara has blown through its diplomatic row what that's called neighbors stand by starts right now.
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i. the possibility of a crypto currency trading ban in china keeps getting closer to reality on thursday china which is the country's largest exchange announced it was forced to suspend operations it also said that it will officially shut down by september thirtieth is caused going to fall nearly eleven percent and the price is now hovering around thirty five hundred dollars far below its all time high of around five thousand dollars and this comes just about a week after trying to ban initial coin offerings the government accused. of being scams and pyramid schemes and the central bank said anyone who raised money through them should pay it back because of strict capital controls in china crypto.
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currency has become very popular among investors in fact the country currently accounts for nearly ninety percent of all bitcoin trading on exchanges now there has been more talk than usual about digital currency is as bitcoin loses twenty seven billion dollars in market value and j.p. morgan c.e.o. says because it's a fraud that won't and well. a former u.s. financial regulator who years ago was the first to speak out about the appropriate role of digital currency as joins us now bart chilton thanks for being with here being here with me today part as a financial regulator you were out there early and often as the first u.s. government official to talk publicly publicly about digital currency is and in two thousand and thirteen in called bitcoin a shadow currency that c f t c should regulate so clearly you have some strong feelings about digital currency is so what are your thoughts on the chinese decision to band trading on these digital currency exchanges. hey bianco well i
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think it was you know it's to some extent in evitable that this was going to happen to some place i'm a little surprised that it took place in china because of what you just reported about the large number of investors over there but that may be exactly why they ended up doing it so what i've been saying for years is that digital currencies have a place in our modern financial society system but they need to be appropriately regulated not overzealous regulation and if they didn't if the enthusiasm for bitcoin and other digital currencies didn't embrace some sort of regulation that you would see overzealous regulation and they would do things like the chinese have done both with the i c o o's banning the use of coin offerings and what they did in the last twenty four hours with regard to stopping exchange trading of good. currencies so you know it
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was something that i sort of predicted not necessarily in china and you know we'll see what happens going forward beyond go one other digital currency news j.p. morgan chase c.e.o. jamie diamond said that bitcoin was a fraud that people are wasting their time with he also argued that there will never be a currency that gets around government control period so in your opinion having served as a financial regulator for years will lawmakers and regulators allow these digital currencies to be used or will they be shut down. well it really depends upon what happens they will be regulated for sure i mean one hundred percent they're going to be regulators regulators aren't going away they're not taking a hiatus the question is can the bitcoin enthusiastic come up with some sort of structure themselves which i've been arguing for all these years perhaps and working in tandem naish in tandem with groups like the international organization
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of securities commissions i osco come up with some principled protocols or on the trading side with the world federation of exchanges coming up with some basic rules of the road that can provide some consumer protections but if they don't do that if the bitcoin enthuses don't get together with those sorts of folks and come up with these basic protocols then when some bad thing happens like we were called mt gox in japan where they lost four hundred seventy five million dollars initially several years ago if something bad happens then the regulators bianca will come in or lawmakers and over regulate and i'm also concerned about that the over regulation but there's a real kneejerk reaction when you know constituents when citizens are damage so i think it's a fine balance but so far it's not the been achieved i don't think anybody's got it right quite yet or despite the success of the sound digital currency as they still have not been adopted day to day so why do you think that is do you believe that
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some people are just scared of the whole concept. well that some of it i mean you think about it think about digitizing recording and transferring data whether or not it's music or movies or computers or. other things that mean money is the next logical thing to be digitized and it will happen and i think it will be of great value the question is how fast does that happen and does it happen in an appropriate way with meaningful. consumer protections and so far like i said that nobody seems to have gotten it right and i think that's going to china is a great example of that slowing things down so i don't agree with mr diamond the bitcoins a fraud it's not based upon much it's based upon you know the error i guess is not based upon much and i do think it's not just you know a risk for people but somewhat of over of
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a raffle but people are adults they know they could lose their money and if they have that disposable income that they could go poof that's fine but i do think there's just this trepidation and reluctance to embrace digital anything like there was with you know moving from floppy disk other types of computing technologies of moving from tapes and tracks and to c.d.'s and and now digitized stuff so it'll happen it just a matter of when and how or what about some of the other issues that are holding digital currency is back and there are these things that can be remedied or will they just can we not do anything to fix them. well there are some key thing so all the banking regulators deal with these two things that people always call them by their acronyms but it's k y c which is know your customer so that's one and know your customer means i know that it's beyond me and she's the one that's trading here and it's not some pseudonym and the second thing is the money laundering am
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l. and banks all have to deal with this to ensure that people are purchasing illicit drugs or involved in human trafficking or weapons or from a government perspective of voiding paying taxes governments care about that a lot so when the bitcoin enthusiasm and others try to come up with some structure they're going to have to figure out those two things the and i money laundering and the know your customers in order to have just a modicum of regulatory scrutiny those are the things they really need to work on going forward what about the trading value is that what's behind these digital currencies being in retreat is that public skepticism from people like jamie diamond or is that china or is there simply a bit when bubble. well i mean it's hard to say i mean we've seen you know just bitcoin in the last you know a few days and even the last twenty four hours i mean it started at about five
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thousand dollars the beginning of this this month one bitcoin but even yesterday you know i think it went from like thirty five hundred down to three thousand went up to somebody i think propped it up which as a regulator when i was back at my old agency i would have been calling the enforcement people on this it went from three thousand to thirty eight hundred and i think that was somebody trying to prop it up in light of the news about china bianca so that stuff shouldn't happen i mean that's a rock n roll roller coaster that i wouldn't want to be on and as you reported it was down to about thirty five hundred so there is there is i think some sort of bubble but we'll get through it digital currencies are going to exist they just need to be configured a little bit differently ok part shelton former u.s. trading commissioner thanks so much for your time today. thanks a. lot
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while puerto rico is burdened with more than one hundred twenty three billion dollars worth of bond debt and unfunded pension obligations it's now been hit by hurricane and on top of that the devastation of hurricane harvey in texas temporarily wiped out more than a fifth of the u.s. refining capacity but our next guest says the aftermath could turn our economy around boom bust host lindsey france sat down with danielle de martino booth president of money strong and author of fed up an insider's take on why the federal reserve is bad for america and asked her how the hurricanes could provide economic benefits here's what she had to say. well it has to do with this specific damage that's been done because of hurricane harvey we had the auto sector enter a recession we saw the first spike in construction worker layoffs. in august as commercial real estate volumes have collapsed over the past year. we've seen the
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residential housing market begin to turn because home prices have gotten to be so high that we saw not not just a disappointment in the new but also the existing home sales report pending home sales are in the toilet it's just not been a pretty picture in a lot of sectors of the economy that will by the way directly benefit from the aftermath of hurricane harvey well let me i want to refer to a very interesting piece you just wrote it's entitled houston we have a solution so what is that solution. well i think that it's a matter of i'll share one story with you friend of mine apartment developer one of the particular units that he that he happens to have developed four hundred units two hundred were destroyed by floodwaters he bussed in one hundred forty construction workers from florida the fifth day after harvey had hit it was still raining and a whole batch of construction workers hit houston and started tearing out the sheet
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rock pulling up the floors repairing these units that's one one story one story and one story alone houston prior to harvey had an oversupply issue when it came to apartments that's vanished overnight all of that excess inventories been absorbed by homeowners as they move into apartments while they start to repair their homes there's also been a hotel issue in the houston market sense of oil prices collapsed houston had the distinction not a good distinction of having the most distressed hotel mortgage loans in the in the country that's going to. well of course there's price gouging going on with those hotels but that's got to be controlled whole nother story but i see what you're saying there is there and i'm just saying accounting had an oversupply issue in a lot of renos and that that's been eradicated. overnight to say nothing of the fact that there were too many cars and united states that used car prices were falling that's true you know what's interesting here is that back during hurricane
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katrina we saw that devastating catastrophe a lot of people didn't have flood insurance because they were on that one hundred year flood plain classification the government makes a lot of people here weren't catastrophic flood insurance is expensive how can we expect people just in layman's terms i'm just wanting your opinion on this how can we expect people to be able to foot the bill for that type of construction that needs to happen in these neighborhoods i mean it's estimated two thousand dollars for every inch of damage done in your house well lindsay this is going to mitigate not eliminate the odds of a recession barreling down on the u.s. economy you are absolutely correct fifty percent of homeowners who are affected by katrina had that flood insurance estimates right now are that maybe you upwards of one million one point two million do not have flood insurance who got flooded so there will be a lot of economic long term economic damage that emanates from this storm because
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a lot of homeowners simply will not have the means as you described to be able to repair their homes i think that we will see quite a few homes demolished in the coming weeks and months remember it's still summer time in texas very difficult to stop the mold from growing and the devastation from getting worse if this heat doesn't let up right and you know texas what are we facing as we head through christmas into the holidays gets mighty cold up there can they still build through this and help to revamp that economy well so in the case of texas unless we have an unusual winter it's much more so the case in dallas where we get ice storms and snow from time to time houston is not as affected come winter time by severe winter weather so the construction workers should be. able to keep hammering and nailing all through the christmas season they really should be well thank god for that as these people try to rebuild things that interesting look
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what we need any silver lining we could possibly get in the wake of these terrible storms that's right and who knows about puerto rico and what it's facing with its huge burden and what we're facing now much of it is rubble people without power we should definitely bring you one soon to talk about that of course the hard part is we can't exactly assess all of the damage but that will be assessed thank you so much for talking with us about this daniel de martino both president of money strong and author fed up an insider's take on why the federal reserve is bad for america thank you thank you. time now for a quick break but stick around because when we worked we'll have a report from seoul south korea covering the impact the u.n. sanctions are having on its economy and we'll tell you how much money qatar hasn't burned through as a remains isolated from its neighbors. years ago traveled across the military exploring america's deadly love affair with. a bad
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guy trying to get to one of my family members he would have a better a lot better and i think they are inheriting whenever my my baby. book was published in the year two thousand a million americans have been killed by us how do we did this is a middle school we go through drills and we put ourselves in real scenarios it was interesting to see who actually got hit. just to return to the subject to try to. do all those years ago. but we are not. reaching out. community continues to be emphasize about one iraq war united iraq as a slogan may be an approach to the politicians but in reality on the ground iraqis
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want a new record called united and. courage that was to be blamed school what is happening in the rest of iraq and the direct wrong directions that iraq has gone through. the nobody thought of. the marshall and. islamic states claims it was behind the manchester terror attack by the north front so kill the priest every time a terrorist attack happens all these people are out there screaming and i says so bad someone needs to do something against them. yeah why don't. you. know. that if.
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you challenge. these he. has got to. live. with his show. it's been three months since that's called neighbors imposed a blockade and qatar is still struggling financially according to a report from lou. the country has spent over a levon percent of its reserves or thirty eight point five billion dollars to keep the economy going that's a problem to about twenty three percent of g.d.p.
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and the problems go beyond cash qatar has also had to rely on food and other imports from turkey and iran compared to last year imports have dropped about forty percent and other sectors like trade tourism and banking have also suffered since the crisis began in june and he said it expects a problem to persist but added that other nations in the gulf cooperation council like bahrain could suffer from the sanctions to the to the crisis also poses problems for the twenty twenty two world cup which is scheduled to be held in qatar however the stadium hasn't been completed yet and prior to the diplomatic row the country was relying on imports from saudi arabia and the united arab emirates to finish constructing it. last week the eastern economic forum wrapped up talks in russia where leaders from
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around the world met to discuss investment in trade and transportation we have a piece from artie's on your part and paul who spoke to you got the chance to speak with a member of south korean president. in seoul. well the east asia economic forum that wrapped up earlier this week and in light of these high level regional meetings i spoke with a member of president of south korea's delegation who traveled with him to russia for these talks i first asked mr hughes and how these unprecedented sanctions passed by the u.n. security council on monday could impact the south korean economy true. north korea doesn't offer. a better be. the reasoning is no solace trade even before the sanction and during the ninety's during the two
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thousand the omanis for example just the one billion want to believe. you think about that korean i mean the republic of korea now trade porto trade to be the wall these one trillion so you suggest one billion versus one trillion so it doesn't make a big difference for our economy. maybe that's saying a show i have some very slight indirect. impact on court rule for example the secondary sang shown on chinese company where chinese banks. but even in their case those chinese companies and chinese banks that tabulation meed north korea use earlier is a smaller company smaller bangs so it doesn't have a direct relation on the south korea so that doesn't have a big impact either but one point that i like to say in that regard is that
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even the sanction carbonized the chinese economy chinese beanies seem janner and then sees korea has a big business relations with china that may all facts on other possibilities because of this difference of opinion or a trade war between us and china even that's happened that would be a big concern for korea you recently returned from vladivostok where you attended the east asia economic forum with the president in the delegation what was your impression of the meeting it was a successful meeting and particularly the president put our president and the prime minister of japan. present as they had the plenary session and they talked about. the reason our corporation has you know all the rush.
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to try and. not just about everybody down the road and the corey said i will present on. north east asia. me being a two year old so the contras have a. really high. future possibly even. propose our was proposed by leaders in the countries coming out of the meeting how vital would you say the relationship south korea has with russia and china is in terms of economic development in the region. i think. we have some has already. just for example gas
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line prozac or. fisheries prozac. so i think those. days our business the poor business people had even won. i think. some many. that. president seemed eager to restart or give another shot to the sunshine policy which would include it in joint economic development between the north and south as well as perhaps the reopening of. industrial complex. these things that are possible under current circumstances. i think that i think phrasing mentioned these very important of costs that the president direction is
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through with sanctions or whatever they'll find out of quarries are also in the wrong on. that. one back around. the sun says i think it is because it's on north korea has. nuclear has the mrs has some all months i think that countries even. all wrong you know other countries at the moment it's not the pine for seeking the battle god wants to so at least north korea has to have one has to make to keep the commitment blog i will present on even at the. fires the new comic parliament he mentioned that the long term goal of the koreas gore is a fine out of all reason dialogue so our goal is to let them sit at the diet over. one way to buoy. our president suggested
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even color on a sea change shown it is not appropriate to. north korea include then out of korea and russia begin the cooperation and project parade of the pro has forced down after some time he can be shown to be calm so why don't we. north korea join so. you may shut up about because of the industrial complex more i think can mean a palm project might be i think that our problems are between korea and north korea or a sob process is the goal of this joint economic. development to slowly encourage the north to transition to a more capitalist system although our i don't want to i think
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designate in that all i define team that comes i think you have the countries every so side has their all in philosophy but one goal really is to let the people i think be call mall prosperous or let them people who have or a good believe being as who know the north korean leaving condition is very harsh and so you in their sense our glories through this prozac lead north korean people or make more i think decent to lead being i think that is to call on wednesday officials in seoul met to discuss how exactly to implement these sanctions against the north however it's clear sanctions against the north aren't always so simple there is a wide regional repercussion when we see these very extruding economic measures passed by the united nations and exactly what the impact of simply saying she is
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against north korea will be on the region remains to be seen in seoul on your parm till june but. if you're looking to blow some euros in case italy does away with the currency and you have love for a limited pasta don't worry because all gardens got your back the restaurant is bringing back the unlimited pasta past fifty lucky customers will be able to challenge down on two months of unlimited pasta for just one hundred dollars if you're lucky you can try and buy a two hundred dollar pasta passport and not only gives you two months of unlimited pasta but also sends you on an eight day trip to italy now may seem silly getting into a food fight over these passes but they are highly coveted last year one person sold there on limited pasta pass for more than four thousand dollars on e bay. that's all for now be sure to catch us on directv you can find us on channel three through one and if you miss us under a t.v. you can catch us on you tube at youtube dot com bust or thanks for watching.
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it's one of the instruments to drive. but it could also lead to tragedy i didn't live in a home just i can go and live in the day. and you are not. broken
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really since. the bags going through. bankers can't be. on the go on the banks but i just didn't think of the men and women who lost money through the back under don't buy creditors people see no future bad things happen you know you become ill you do two job your relationship breaks down you become a casualty is debt a life long or is there a way out i was actually trying to argue no wooden reichl to ditch been for. a few more.
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fierce sounds of police brutality protests break out of the us city has since lowy with activists hurling bricks of police officers on the home of the mayor of london . so the mistake of the mayor there not london of course in london islamic state claims responsibility for friday's bomb blast on the london underground train the fifth terror attack in the u.k. this year. and the un security council holds the emergency meeting over north korea's missile launches as the international community looks for new ways to diffuse the crisis the pro occasional visitor should learn another provocation moving.

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