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tv   Boom Bust  RT  October 7, 2017 1:29pm-2:01pm EDT

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in moscow between saudi arabia's king solomon and russia's president vladimir putin to produce some enormous deals in energy my guest tonight take a look at the implications for oil and gas also predatory lenders could soon feel a big squeeze on their businesses as lawmakers push for tighter regulations to protect consumers and more trade talks between japan and the united states are coming up we take a look at the topic set to dominate that agenda. start right now. a global deal to stem the oil glut and raise barrel prices has been strengthened according to the leaders of russia and saudi arabia in the first visit of a ruling saudi monarch to russia saudi saudi arabia's king salmon and russia's
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president vladimir putin met in moscow they worked out a slew of deals including trade and economic cooperation telecommunications security weapons and oil agreements it's ushered in bilateral ties reaching a new level after decades of rivalry nearly a year ago the two lead to deal with the organization of petroleum exporting countries and its affiliates states to cut oil production by one point eight million barrels per day for six months it was a bid to shore up prices that deal was extended in prices have gone up hitting now above fifty dollars dollars a barrel though it cannot be said that all countries involved are sticking to their promises after an extension to that agreement we may see yet another. to dig deeper into the oil issue between saudi arabia and russia and how it affects the wider world as well as the future of the opec cut extension i'd like to bring in chris martenson the c.e.o. and co-founder of peak prosperity dot com chris thanks so much for joining me on this saudi arabia russia looking to sign
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a three billion dollar deal enjoying investments which include one point one billion dollars and an agreement for cyber and a russian petrochemical plant to build that plant in saudi arabia is this just the first of many new energy and petro deals between these two countries that is a a very big deal especially considering what the past relationship was between saudi arabia and russia this is a very very big deal the three billion dollars itself a kind of a notional amount given the size of these two countries and what they're up to but look at the realignment that had to happen saudi arabia and russia kind of on opposite sides of the whole syria conflict so looking for a change in that it just means that putin is established himself really as a key player a leader in the middle east this is a really big deal first monarch to visit moscow ever in the in some deals one point one billion go into a gas chemical plant and surprise all kinds of other things thrown into the mix as
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well so interesting sort of a honeymoon stage here very big deal what do you think this said for the the future of the obviously it's ben as you mentioned this is a very big deal in and of itself but those opec cuts precedent setting saudi arabia was one of those countries that really stuck to the rules and some of these countries as that cut has been extended haven't stuck to the rules as much they must have talked strategy on this correct so the cuts are been talked about for a long time there was an agreement struck in january of two thousand and seventeen this year in a call for by march they were going to have one point eight million barrels per day of cuts that included russia in the deal when we look at the do. across all of opec we see basically no cuts whatsoever up through here in october of two thousand and seventeen except russia is down two hundred thousand barrels per day from the moment that deal was in it so so rushes down a little bit nobody else is down they're going to have to make up
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a lot of territory if they're going to get to that one point eight million barrel per day cut by march and this deal i think cements the idea that actually could happen now what do you think of the effect this has on the wider market there are guesses that it could head over thirty dollars by the end of twenty seventeen many people were surprised to see it hit over fifty not long ago what do you think well the market is really tightening and starting to rebalance it was very much over supplied through two thousand and fifteen sixteen we're seeing that come to a close and these cuts of course if they come due would really go a long way to not only rebalancing the market but bringing it into a tightening environment this deal between saudi arabia and russia you have to look at what's happening with china in that story china now the number one importer of oil russia having overtaken the kingdom of saudi arabia as the number one supplier particularly with the new pipelines that russia just put in to china so really this
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is a whole realignment that say who is going to supply the world's number one importer of oil it looks like saudi arabia and russia decided to shake hands on that which means i think there's a better chance of the cuts actually coming through what do you think about people who are watching these two countries competitors even partners and watching and engaging their reactions to the product of this meeting a lot of deals we're talking weapons energy oil safety it guy is runs the gamut. absolutely and see we had agriculture was in the deal information technology weapon systems the into deal on the s four hundred which is the top of the line aircraft system and it had to take missiles as well those are not things that i would expect russia to be supplying to the kingdom of saudi arabia if they were still going to be on opposite sides of the conflict in syria so that's a giant realignment right there but i think the most surprising thing was they
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actually talked about supplying nuclear power plants that technology from russia to saudi arabia who's been interested in getting that technology for the day when their oil runs out but for that to have been talked about was a real surprise i think almost every observer we're not seeing a lot of loud reactions from the united states yet you think the u.s. is biding its time on this and we've just had you know massive hurricanes run through texas knock out a ton of the oil infrastructure there u.s. output has not slowed down it's actually done the opposite during these opec cuts what do you think we're going to see into into the following week as a reaction on the back of these agreements. well i would expect behind the scenes locke's is going on in the united states this is a very very large realignment it basically on a slow burn fuse what we're seeing here is i think the failure of the obama policies in the middle east you know there was an including north africa we had the bombing of libya we had the tearing apart of syria of course we had the whole
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fiasco in iraq you put all of that together and this is a giant realignment and it looks like russia's coming out as a power broker people can trust and we're starting to see not just saudi arabia we've seen delegations from other countries jordan israel you name it starting to go to moscow because this is the new reality so if the united states is a silent behind the scenes as they are in public right now i'd be very surprised because you know this is really upsetting about wallace standing u.s. policy in the middle east wanting to keep saudi arabia clearly on our side very interesting shift as you say on policy and the alignment of these countries interesting to see to watch going forward in the near future more u.s. reaction on this thank you so much for weighing in on this with me chris martenson c.e.o. and co-founder of pick prosperity dot com thank you you're welcome. if lawmakers on capitol hill have their way the payday loan industry could be in for
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some trouble and nearly proposed regulation of would severely limit the way lenders can operate but what are its chances of approval rating has more on that for the payday loan industry rakes in billions of dollars in the u.s. each year but if the consumer financial protection bureau can get newly proposed rules passed the industry will see a big drop in profits on thursday the bureau said in the statement that all lenders must now determine if borrowers are able to repay their loans and the number of loans they can offer to borrowers will be limited c.f.p. director richard cordray said the c f p p s new rules puts a stop to the paved. traps that have plagued communities across the country too often borrowers who need quick cash and up trapped in loans they can't afford the rules common sense ability to repay protections prevent lenders from succeeding by setting up forwards to fail however the rules aren't set just yet in order to take
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effect in two thousand and nineteen the have to get the approval of congress and that could pose a problem when it comes to certain members many republican leaders on capitol hill have accused the bureau of being too burdensome and even suggest ousting cordray and on top of the political obstacles the c.f.p. could have to deal with pushback from wonders according to the bureau's estimates the entire industries revenue would drop by two thirds but would therefore save consumers a lot of money the average borrower makes thirty thousand dollars a year and an average payday loan requires a repayment of four hundred thirty dollars on the next payday which is over a third of what most of most borrowers pay check according to pew research over half of borrowers have trouble paying their monthly expenses so if the changes are approved those figures could change dramatically but even if they are the bureau made exceptions for community banks and credit unions to fill the void that would
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be left by the rest of the lenders. a powerful lobby these lenders what exactly would the new rules be that would be so damaging to them well so the payday loan industry is incredibly reliant on indebtedness in particular extended or eternal indebtedness to give you one crazy statistic seventy five percent of payday loans go to customers that take out on average eleven of these payday loans per year so if there were a captive you put in place that would just cause an immediate drop in profits another crazy statistic eighty percent of payday loans are taken out two weeks prior to a scheduled repayment of a previous loan so it just goes to show how many people unfortunately that take these right out get stuck and. vicious cycle of indebtedness right and. a lot of people that take these loans out are coming from a far they're financially struggling so people just get stuck and it just they keep having to take them out in order to pay their bills and they could also be taking them out just to repay it loan what's the response to that proposal but like there
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have been some pretty mixed reviews in the banking industry there are some trade and lobby groups like the american bankers association and the independent community bankers of america that have suggested this would protect consumers and help prevent them from getting in these cycles of debt but i don't there are other trade organizations and some lobbying firms like the community bankers association they all sound the same they have a different version of the same name and they are you that this is going to hurt consume consumers because it limits the types of loans that they can take out and they argue they should have the ability to do this that they want even though we all know it's. causing a lot of the right handle problems right now so it certainly a mixed bag of reviews here but again unless congress approves it and they're not you know threatened with a million legal exactly we don't know if these rules walk slowly become implemented it we wouldn't know for another year and a half and of course a lot of these lenders rely on repeat customers yes which is very scary thank you
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so much for the short. time now for a quick break but stick around because when we return we have our jobs report and it looks like the hurricanes took a toll also the u.s. and japan are set to talk trade we take a look at the hot topics as we go to break here are the numbers the closing bell. despite all the efforts of the central banks to kill the economy by keeping bankers solvent when they should have been declared bankruptcy years ago the index is showing that interest rates are going to go higher this means two things number one property market's going to crash and number two bond market's going to crash.
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it's taken these children. know it's ready to take that future. the ball came in here it could erupt again at any time. most people have a strong choice. to live in poverty. which willing to. put some of following a different. point . that.
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thanks. after hurricanes harvey norman made landfall and closed thousands of businesses in texas and florida and forced widespread evacuations the u.s. shed thirty three thousand jobs in september according to the department of labor it marked the first monthly hiring drop in nearly seven years the unemployment rate fell to four point two percent from four point four percent the lowest level since
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two thousand and one the job market remains fundamentally solid hiring is expected to rebound in coming months as businesses in the area reopen and bring back employees and construction companies and they ramp up repair and renovation work last month drop was driven by huge losses in restaurants and bars which accounted for one hundred five thousand fewer jobs a sign of the damage to florida's tourism industry in roughly one point five million people were unable to work last month because of the weather and that's the most in twenty years. the man responsible for the massacre in las vegas on sunday attach what is known as a bomb stock to modify the semiautomatic weapons he used to rain down bullets on a crowd of concert goers from his hotel room killing nearly sixty and wounding hundreds the sales of bomb stocks have spiked the devices fit over the stock and grip of a semi automatic rifle and allow the weapon to fire continuously some four hundred
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to eight hundred rounds in a single minute at the beginning of the week as news of the tragedy unfolded the stock market was friendly to gun and ammunition makers in the usual anticipation of americans rushing to stores to stock up on weapons they rushed and shares jumped. sir ruger climbed four percent to fifty three dollars and fifty cents on monday rising on to fifty four sixty five on tuesday same story for american outdoor brams the parent company of smith and wesson it jumped three percent to fifteen dollars sixty seven cents at the close monday then closed a six hundred twelve the following day and then news emerged about the use of bump stocks in the killings the national rifle association the trumpet ministration and top congressional republicans swiftly embraced a proposed restriction on the devices it's turned out to be a boon for sellers the usual retail price rested at a little under two hundred dollars but before the tragedy that is after the las
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vegas attacks rose to three hundred dollars then the n.r.a. made a statement supporting regulation of the product and we now see it hitting at seven hundred dollars on auction. the island territory of puerto rico remains largely without power after being hit by hurricane maria weeks ago after it one mosque was asked via twitter whether the solar city energy arm of his company tesla would help out he responded the tesla team has done this for many smaller islands around the world but there is no scale ability limit so what can be done from puerto rico to such a decision would be in the hands of the puerto rican government public utilities commission commercial stakeholders and most importantly the people of puerto rico well ricardo rozelle of the governor of puerto rico picked up on and he said let's talk do you want to show the world the power and scale ability of your tesla technologies puerto rico could be that flagship project and now it's off to the
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races they've expanded on talk of working together solar cities specializes in high volume electricity storage for grid and power banks. at a meeting with military leaders thursday president donald trump warned media they were witnessing the calm before the storm on the agenda talks iraq about. on the self-proclaimed islamic state in north korea the president's cryptic message didn't explain which of these storms is brewing but one thing is for sure the iran nuclear deal could face major changes in the next week artie's month over zero is in the newsroom with me with the details simone president obama's expected to decertify this deal so what does that actually mean for people well it means he's not killing the deal but he's not willing at this point to recertify it which is something that he has to do after every periodic moment of time facing an october fifteenth deadline to tell congress whether iran is living up to its end of the bargain so we expect some sort of announcement before that happens this is what he said thursday night while meeting with military leaders must not allow
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a red to attain to obtain nuclear weapons the iranian regime supports terrorism and exports violence bloodshed and chaos across the middle east that is why we must put an end to a rare and continued aggression and nuclear ambitions they have not lived up to the spirit of their agreement and we will be discussing that tonight. so lindsey if he decides to decertify the deal that's going to kick the issue back to congress congress will then have sixty days to determine whether it wants to reimpose sanctions on the country trump says iran hasn't lived up to the spirit of the agreement but has actually violated the deal now according to the international atomic energy agency iran has actually complied with a number of requirements that they agreed upon in the original deal back in two thousand and fifteen iran shifts more than twelve tons of enriched uranium to russia thousands of centrifuges necessary to enrich uranium for an atomic bomb and
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it removed the core from the reactor at iraq facility by trying saying iran hasn't lived up to the spirit of the agreement he's most likely referring to these numerous ballistic missile tests the country's conducted since agreeing to the deal the actions have been viewed by the u.s. in the united nations as provocative whereas washington believes it is in strict violation of the deal ok so it kind of allows for a little wiggle room there what does congress think about this is an on board no i mean there was never altogether popular in congress during the obama administration but it did have enough support to avoid a filibuster the consensus though right now is that in denying the deal when the international community is saying that yes iran is living up to it that it's going to be bad for the united states when it comes to international relations even trumps own defense secretary jim mad as has come out contradicting the president's own claims about the deal matta says it is in the united states' best interest to
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stay trump of course saying it is not serving the country's interests but if so how would international partners the react if the u.s. pulled out of the deal and i'm guessing it's not likely that they'll pull out no not they're not going to take it very lightly they're going to hit back pretty harsh no i mean we have to remember this agreement is not just between the united states and iran the iran nuclear deal was reached as part of a collaborative effort between iran the u.s. the united kingdom france china russia and and germany. the uncertainty surrounding the u.s. right now european leaders are saying they're committed to salvaging the deal even with a potential u.s. withdrawal if it is expected to move to withdraw its back to that it would outrage the u.s. allies and further isolate the country from its partner something that we've seen this president do and the president of iran had a warning as well. it will be a great pity if this agreement were to be destroyed by rogue newcomers in the world of politics the world will have lost a great opportunity but such unfortunate behavior will never impede iran's course
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of progress and advancement lindsay of course of this administration it's always hard to tell exactly what they're going to do until the announcement is official but given how critical trump has been on the campaign trail and as president we can expect congress is going to have one more thing on their plate yes he's sticking to his campaign trail promises but congress might be heading back thank you so much artists amount over syria. the second round of an economic dialogue between the u.s. and japan is set to take place later this month in washington the countries are expected to address the current trade imbalance but the main beef is slated to be well we are to smile about to center on to where he's following the story alex what is the deal with the beef it's all about the beef the finance minister taro aso he's coming over to washington on the sixteenth to meet with vice president pence
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this is going to be their second meeting they met back in april in tokyo and as you just mentioned the big subject is the if this time around august first japan raise tariffs be from thirty eight point five percent to fifty percent and that has ticked off a lot of farmers in the u.s. chilled beef is something that they sell to japan in large volumes as you can see by this graph just look at the graph and you can see that in the past year or so from two thousand and sixteen to two thousand and seventeen in the first quarter the beef just like the stocks just went way up the amount of beef that was being sold in japan itself so with diets obviously the japanese farmers are not too happy to see that going down. for americans obviously they want to push their beef as much as possible in markets worldwide but this is really not an issue. room for too much discuss a discussion since they are those of the president of the prime minister of japan he there's an election coming up and the pressure is on he can't really change his
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tune at this point so what we're expecting from the finance minister is to try to deflect get away from the subject of beef move towards infrastructure infrastructure is a key elements it is simply because of the japanese believe that they can work with the states in bringing gas to asia. well there no where in japan and the u.s. cooperate on energy that you can talk about infrastructure of course without talking about energy and energy you really has as you mention is that is the big thing here so japan they're not really in need of gas as much as people would think you know there are there are nuclear industry is there are there are the reactors are popping back up after fukushima not necessarily the brightest they also renewable energy is big on their plate for japan itself but japan is a great way of getting light we're getting natural gas and shale over from the states to the rest of asia which is becoming hungrier and hungrier so by two thousand and thirty that we're looking at about an eighty billion dollar investment
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to be necessary into asia and from the sale of gas and such products to the rest of asia so what japan wants to do is get in on the deal get the u.s. to be able to sell and export this energy source but japan wants to build the infrastructure so the pipelines the refineries excedrin so this would be a great way for them to deal together so that you can hear japan or you can think or at least expect japan to be talking about this a lot also there's the fast trains they're talking about a couple of projects that are going on in the states right now that might be something that is mentioned by the japanese foreign minister as well these are all positive notes and it's a good way to get about away from subjects that are a little bit more negative other subjects that we must address trade imbalances that exists between the two nations but japan in the favored position here at their presidents america first mom tried doesn't quite match with that how is this issue expected to be handled you know it's i mean it's in the billions of dollars over sixty billion that the trade imbalances in favor of japan so we know what president
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trump what his thoughts are on this does not like these trade imbalances that exist but again for japan what's the best thing to do here deflect to talk about somebody else or saying you know what look at china look at your trade imbalance with china don't worry about us this isn't that huge is that the chinese that you have to worry about. so for japan really it's going to be a story of them trying to push forward their agenda as much as possible knowing full well that the americans there's a lot of power here there's a lot there's a lot to be talked about and for the americans the the need to play a good game so everybody can benefit in the end everyone benefiting in the end thank you very much our two thousand highlights from toronto thank you. back in the late ninety's there was only one king of the instant messengers ale well after more than twenty years a.o.l. instant messenger man will be sending his last message and running out that door that's right folks at comic running man and a i am will be shutting down on
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december fifteenth this year when he first arrived on the scene in one thousand nine hundred seventy easily became the go to instant messenger service but it wasn't going to last. other companies like google and facebook entered the scene and once smartphones took off people had a lot more ways to send a message apps like facebook messenger and whatsapp even skype chat took over a.i.m. you can't send a message as of december fifteenth but you can still send an e-mail a.i.m. dot com is sticking around thanks for watching the show kept on direct t.v. in the united states you can find us on the r t channel three two one and if you missed us on directv catch the bus on youtube youtube dot com. thanks for watching see you next time. economic development is all about numbers really pleased to report this quarter we
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are one hundred six points. but what do we know about the other figures. when i think about the fact that our c.e.o. mike du made over twenty million dollars last year more than one thousand times the average wal-mart associate. with all due respect i have to say i don't think that's right. is that just a a free market works. people went from pretty simple financial lives pre nine hundred eighty to the point now where people are. just totally submerged in their financial accounts and they're all in debt and what exactly devoid society from the part of the government try to do. it might be making things worse.
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by saying this is not how capitalism works this is. hopelessly disastrously wrong here's what people have been saying about rejected. this is a full on awesome the only show i go out of my way to launch you know what it is 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 two thousand. and see people you never heard of love back to the night president of the world bank though they. were meant seriously send us an e-mail. in the us a child can choose an army course in school. with retired officers as teachers we don't. recruit will says to if the cadet is interested in going in the military but we don't recruit ourselves. but. the pentagon is funding
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a program to boost interest in the military among teenagers. to step up to an apollo so that comfortable with yourself. you can't go wrong with the military it's a great stepping stone for whatever career you want to do but some veterans are willing to tell enthusiastic children a little more they ask me call of duty is a very popular first sure video game. is play and that's because the military like call of duty to turn off call of duty oh yeah well you can't turn off work and lot of these kids just don't hear. the darker side does the pentagon allow them to be told or does it just need more recruits.
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petition. journalism. politics plus. the president is the one that's keeping the world.

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