tv Boom Bust RT August 21, 2019 7:30pm-8:01pm EDT
the company in the future the pushing of the in calling the coverage part of the conspiracy professor richard wolfe is on hand to give us his latest take on the transpacific trade and the near term future of the u.s. economy and finally days of corporate titans are squaring off in court and tesla is under fire yet again as they face a super wal-mart over solar panels our correspondent alex mahela just standing by to break down the trouble for the electric giant can one show really cover all that we're about to find out go. threat of sanctions over an arms deal leaves our globe report today as china's foreign ministry says it will target any u.s. company involved in the sale of advanced fighter jets from the u.s. to taiwan the island nation and u.s. ally plans to pay a $1000000000.00 for $66.00 f. 16 v. fighter jets made by the walky martin corporation beijing still considers taiwan which was founded after chinese nationalist forces retreated from the mainland to be a renegade province of their country and previously threatened similar sanctions after
a separate u.s. sale of missiles and tanks to taiwan was announced last month while the chinese sanctions may not have a significant economic impact since u.s. defense contractors are already barred by the u.s. from selling to the chinese military the increasing intersection of economic relations between the u.s. and china with issues of security and foreign policy seems to create myriad opportunities for irritants on one track to inflame problems on the other. and the raging war has now begun to spread to other sectors stoking fears of a recession now for a deeper dive into a global perspective on the reach of the taso we turn things over to our g.'s. who brings us the view from on the ground in hong kong. the u.s. china trade war is still ongoing now and then fright and with rattle markets in recent weeks many fear a possible recession but president donald trump claims are far from that. i think
the word recession is a word that's inappropriate because it's just a word that the. the a certain people are going to be kind to certain people in the media are trying to build up because they'd love to see a recession we're very far from recession he went on to say the u.s. economy is doing very well adding china wants to make a deal the fact is somebody had to take china in my life would be a lot easier if i didn't take china on but i like doing it because i have to do it trump shocks global markets earlier this month when he announced adding another 10 percent tariff on $300000000000.00 in chinese imports scheduled to take effect september 1st and impacts mostly consumer goods we spoke to vice chairman of hong kong's apparel society for some perspective everyone is quite prepared and there has been a lot of negotiations in the last 1824 months so we have many different scenarios working with different customers already so so it does auburn's time for sam what do we do 25 percent what do we do we are very very much prepared for this again
somebody has to pay for it so the cost will definitely pos onto the consumer trump and his advisors insist the trade war will not affect american consumers but some experts say otherwise prewar the ones one trade war to continue or you have print because it is is there a situation that both parties saw. the us. and the president to consider the for the benefit of the us people and also for the benefit of. people without a country. pool stop launching true war because the president is not only lost in trade war to china you also don't trade war to every other single country according to a recent report released by j.p. morgan the initial tears are expected to cost the average american household $600.00 per year the costs will rise to $1000.00 thanks to the new terrorists
meanwhile u.s. secretary of state mike pompei o said he thinks a trade war could end by 2020 but china's possible involvement in the hong kong protests could make this more difficult and with possible trade talks in the coming weeks the 2 world's largest economies are showing very little finds of thawing down reporting in hong kong fairmont i failed our team. and joining us now to respond to recent events in the u.s. china trade war and the larger global economy we are fortunate to have richard was with us from america's of economics at the university of massachusetts amhurst and the author of democracy at work a cure for capitalism professor wolfe welcome back 1st let's recap you 1st on 3 credit the week's events so far on the u.s. china trade war as we saw it china say the u.s. must not raise the issue of their response to protests in hong kong and in trade talks and president trump seeming to take a dare and then suggesting that you will the u.s. may do exactly that now we see a comic sanctions invoked over security issues from china and this conflict over
time one is jet purchases are we stumbling into a scenario where the economic and security issues between us and china become entangled and more difficult to resolve. i think the short answer is absolutely yes it's already happening it was involved in the taking on the way corp and arresting one of their executives in canada at the behest of the united states and now you see it ratcheted up look both the united. states and china are busy in hong kong and have been for a long time we spend it one way in the united states they spend another way in china but this is not a one sided event this is an event in which these 2 countries are jockeying for position i think it is very dangerous i think history is full of examples where the trade war ended up being a hot war of violent war
a military war and in the in the today's conditions that's even more dangerous than it was in the past when we didn't have the nuclear capabilities we have now this is a fool hardy dangerous arrangement china is a major player in the world today this is not about whether you like them or don't like them or agree with their system or you don't they are a reality they are growing faster than the united states they are continuing to do that 2 to 3 times faster they will catch up either you come to terms with them or you try to block them and history is full of examples where that doesn't work the united states was a colony of england england tried to keep us that way we ended up having to fight a war the revolutionary war another war in $812.00 and in the end not only did the
british fail the we have become much the bigger bigger economic unit we all understand that it's now china playing that role and we should learn from our own history. and you know it's interesting you some people have said wall when you call it a trade war in past history week there were trade conflicts that actually became wars let's not call it a trade war but you're referring to a sort of reverse process where an economic conflict could potentially now it's not unthinkable escalate into military conflict but moving on the trumpet. ministrations economic team over the weekend tried to create some doubt on the issue of whether u.s. terrorists are increasing prices for u.s. consumers are dragging on the u.s. economy at all you though highlighted a tweet on twitter a study published in late may about 2 weeks after terrorists on chinese goods increased to 25 percent by economists at the federal reserve bank of new york published on the bank's website and that report flatly said u.s.
prices increased $1.00 to $1.00 with tariffs and furthermore chinese exports did not reduce their prices the report also says companies are moving production out of china to india mexico and vietnam in response to the tariff so the ultimate result is no tariff revenue and what they call a deadweight economic loss doesn't this report you highlighted flatly refute at least 2 of the white house talking points on terrorist and the economy. absolutely and you know to be honest as an american economist which i did all my life i'm really embarrassed by mr trump and his administration every student who studies tirades is informed in the university that a tariff is a tax the tax is put by the united states government on goods coming into this country in this case from china the bill for that tariff is paid by the american importing company not by the chinese and the american importing company can give
the chooses a pass on the higher cost they have to pay the tower of to the consumer who will be paid all charge the higher prices so it's a question of splitting the cause between american businesses and american consumers and it'll show up if not immediately very soon it's already happening and it is simply does on is to tell the american people you could impose a tax on american businesses and imagine that you will not be a fair. that in your pocket book that's wishful thinking maybe for the election but it is straight out bad economics and getting a putting a number on these costs j.p. morgan released a study this week that estimated the average american family will pay at least a $1000.00 per year for the trunk to be announced increase goes in in fact in december they say american families are paying an annual rate of $600.00 right now
for the terrorists is that a reasonable bar ballpark estimate for that. i think so i think there is good is making these estimates as anybody else's and so those will be the benchmark estimates but let me add or urge you to understand as well that it's not just that we'll be paying higher prices when the chinese tip for tat impose tariffs it means americans for example soybean farmers can't sell in china because the tower of they have makes it too expensive for the chinese to buy soybeans from the united states so they move and buy them from brazil ok that's laws jobs and lost revenues for americans on top of the higher prices we pay so the losses are mounting by the way their own losses are mounting in china too but this is a lose lose game in which we should recognise we could really do better than this
kind of scrapping around excellent insights as always from professor richard wolfe and we're fortunate to have him here for the whole show so stick around because we'll get to some more topics later in the 2nd half of the show. china's. china's ali baba group holdings has delayed its initial public offering in hong kong as protests continue to create turmoil in turmoil in the financial capital of asia the e-commerce giant was expected to raise up to 15000000000 dollars in the hong kong i.p.o. now according to an exclusive report by reuters citing 2 people familiar. with a situation ali baba is waiting till at least early october with hopes of raising that same $15000000000.00 the timing will depend on the state of political uncertainty in hong kong and market conditions at the time the decision to delay the filing which was planned for later this month was made during a board meeting after the company's earnings report last week as protests entered their 11th week hong kong's hang seng index fell to 7 month lows.
time now for a quick break but stay tuned because when we come back major corporate titans are duking it out now as council is under fire yet again as they face a lawsuit from wal-mart argue correspondent alex malin if you're standing by to break down the latest troubles for the electric giant and as we go to break here are the market numbers at the close. 3 in there christine a cook now helping move hate and morgan through the. market think i'm ready to go to tripoli sooner and you're headed to the starboard see
deckard and will do in fact underneath like today to install the international docking adapter 3 to pressure. and you are the you're here for around. 6 guys just by that's all survival. when customers go by you reduce the price. well reduce allow or. that's undercutting but what's good for market is not good for the global economy. cash cow and. alfonzo are among. those chasing page dard. whose 1st words were at long last year a challenging post you've got to use to me and. i have no doubt that what happened was scriven.
let's concentrate marketing is a $1000000000.00 industry these companies have a huge financial motivation to sow these products there are numerous stocks showing that doctors were keen to chest x. ray concentrates free infectivity on that patient gives them doctors the wrong stoplight. term system why they were keeping them secure those who use day. on people still i don't know which question are so being hard to leave when so many have. welcome back us based global mega bank goldman sachs is reportedly making progress
in a big play for a role in the anticipated largest initial public offering ever the financial times reports that saudi aramco was responding favorably to. wooing efforts from the bank's chief executive and other top goldman officials the f.t.c. cited former champ and ministration official dina powell as a central player in goldman's efforts even as company officials hasten to emphasize the team aspect of the charm offensive the times points to ms palace fluency in arabic and birth in egypt leverage by diplomatic experience including her role in organizing u.s. president donald trump's visit in 2017 to saudi arabia as key factors in goldman's apparent progress before an initial attempt at a saudi aramco i.p.o. was postponed goldman had been notably laughed off of the list of banks nominated by the company for a lucrative role in the venture while rivals including j.p. morgan chase and stanley morgan were included since then goldman has built bridges with a role in issuing a ram co bonds. germany's sold 30 year bonds with
a negative beeld for the 1st time in an auction on wednesday this means that investors will get back less than they paid if they hold the bond until maturity germany borrowed 824000000 euros bonds are sold slightly above face value so when they reach maturity in 2050 they will only pay back 795000000 euros bond yields have struggled with it worries about the global economy and central banks easing interest rates german 30 year bonds are down $28.00 basis points in august likely setting the stage for the biggest monthly drop since 2016. and back now for a 2nd round of insights on the stories of the day is richard wolffe professor emeritus of economics at the university of n. in amherst massachusetts amherst and the author of democracy at work a cure for capitalism so when around to let's go to this boom lot of talk in the u.s. recently about a recession the white house seems to be spooked despite all the noticeable effort
to push a positive spin but at the same time some companies you might expect to be good indicators of the core health of the u.s. economy home depot lowes and just. terror target strong earnings reports in a sector that used to seem to typify the hollowing out of the u.s. economy target stock jump jump nearly 20 percent on the news what do you make of a surprise signal of apparent strength in u.s. retail. well i'm not surprised and i let me explain why we have basically a tradition of dividing the economy into what we call capital goods those are goods produced for other companies used as inputs in production and consumer goods those are the goods that you and i buy to consume and to sustain our lives the economy moves from one to the other what's been slowing us down is the decision by businesses that the future looks grim for the american economy so they're not investing they're not buying crap at all goods machines equipment vehicle fleet
things like that that's why the automobile business is in such trouble meanwhile it takes normally a little bit longer for the consumer to feel the same pinch and we have had a higher employment rates so consumption what you see at target or home depot all is still ok because it hasn't yet caught up to what is clearly going on in the capital goods sector when you add to that the severe economic downturn in europe in china in the latin america it is really now pretty certain we're going to have a recession and the great anxiety of the trump administrated which explains everything they're doing is they're desperate feeling that if that we say shouldn't comes in the next 6 to 12 months mr trump can kiss his reelection goodbye so they
have to do everything to deny it and to delay it. and speaking of corporate earnings and shifting to the economic epidemic of inequality in the us. us in this new gilded age study this week from the economic policy institute found that in the 40 years between 178 and 2018 after inflation average pay for corporate c.e.o.'s in increased by 1007.5 percent while the median workers' wages grew by 11.9 percent the report says c.e.o.'s are getting more because of their power to set pay not because they are increasing productivity or specific high demand skills the economy would suffer no harm if c.e.o.'s were paid less so professor will give us a ballpark sense of how much the increase in pay for ceo's overshoots on the increase in productivity and how much increases in worker pay may under reward increases in worker productivity over that period. well basically let me tell you a story as a way of answering i know
a good number of c.e.o.'s including some at the very top of the american industrial hierarchy even they and even after 2 or 3 martinis would never claim that their productivity has increased a 1000 times whereas the average productivity of their worker has increased 11 percent that's crazy what ever may have happened to the productivity of the people who run our industries we could not have survived the last 40 years if the productivity of everybody hadn't gone up with the addition of computers with the addition of robots with the improved education and so on and so forth it is clear that the c.e.o.'s like the dividend receivers who own the stock have been able to line their pockets with the growth of the american economy and not share that with the vast majority of people look here's a simple statistic in the 1960 s. and seventy's top c.e.o.'s got about 30 times what an average worker in their
business got today it's 270 times there is no way to explain that in terms of productivity that's the power to take a large amount of money which the c.e.o.'s have found and have you this is a system that rewards the people at the top and the real question is whether the rest of us will continue that lopsided arrangement which is not to our advantage it's the earning burning question in certainly here in the 9th united states and increasingly for the world in this 21st century globalized economy experts insights as always from richard wolfe professor of economics emeritus at the university of massachusetts and person thanks for joining us glad to be here.
and there is once again trouble in the news for tesla as its relationship with wal-mart goes up in flames wal-mart is suing on musk's company alleging tesla solar panels caught fire at no fewer than 7 wal-mart stores between 20122018 archies alex mahela that joins us in toronto with the latest alex tesla and wal-mart have been partners in clean energy tell us why this bon as a now apparently going up in smoke. these 2 companies were tight at one point we're talking about $240.00 walmart's with tesla solar systems built into fuel them also wal-mart ordered $45.00 of the new semi trucks that tesla is building the electric semi trucks which everybody's waiting to come out in the c.n.n. and this is what you know was that was a really good relationship and now this is all gone downhill and it's because of a bunch of fires this is what wal-mart is alleging they're saying that there were
a lawsuit alleges breach of contract gross negligence and failure to live up to industry standards now they're saying this because 7 wal-mart's or set ablaze basically and they're saying by these solar panels built by tesla the problem is this whole system for some reason wasn't only faulty to a certain degree according to wal-mart but also the upkeep was faulty that these the technicians that were coming weren't trained properly to take care of the systems that were in place so wal-mart is coming out screaming they're saying there's millions of dollars worth of damage here they even told back in 2018 they told her you know what shut these babies down we don't want the working anymore we don't want to have anything to do with this because of these fires that are starting up and even when they were shut down what wal-mart is saying that in california it actually yuba city california. one of these things after they were shut down still started a fire like i said millions of dollars worth of damage and when you get news like
this even though we're just looking at allegations at this point how well you know tesla must be shaking a little bit in its boots right and we've already covered some of the past problems with tesla products bursting into flames their cars and we joke that perhaps the production lines of the cars intersected with the boring flame throwers somehow but given those past problems in p.r. and legal and with as he see how does this latest kerfuffle really doesn't make things that much worse for the company all things considered well you know what i know no better way of explaining this than through a chart look at this and this basically tells a story of how slow what's happening there right now so the stocks had some major up and down in the downs of the past $52.00 weeks a hit a high of $380.00 at one point now looking at a low of $17699.00 this past spring and just at the heels of this news now we saw about a dollar dip today from $225.00 you know the stock was kind of moving around up and
down but not by by too much it's a big problem obviously and just this past sunday elan musk came out and he's talking solar he's talking about private solar for residential customers that you know of now they can rent these solar panels for about 50 bucks a month in 6 states instead of buying them flatow but who wants solar panels that are legit lee blew up in flames obviously this is going to be bad news for tesla bad news on top of bad news that they've already had with solar panels at the height they were building a boat 200 this is 200 megawatts in one single quarter this 1st quarter in 2019 it was down to a mere 29 megawatts so news like this obviously not great and the fact is you know you mentioned something daniel cars like a book you know how slow they look sleek they're great and everything but within the next 5 years. every manufacturer is going to be rolling out the electric vehicles and when you have powerhouses like audi b.m.w. ford did lease said toyota except rolling out these things tesla is going to have
one battle ahead of it and now it's going to be in the car business is also going to be in the solar business it looks like shedding light on a hot story archie correspondent alex mahela bitch thanks for joining us. thank you . and a life in college campuses in the united states is about to get much easier for students self driving robots from starship technologies are preparing to deliver pizza sushi products from starbucks and just about anything else a may need with the exception of alcohol the company has formed a partnership with food service companies like syntax so encompass groups that operate on many campuses throughout the nation and you university of pittsburgh and purdue university are joining george mason and northern arizona university and having access to robo deliveries the company hopes to provide delivery services on $100.00 campuses in the next 2 years students can use the companies out to order
goods at all hours and can pay with their meal cards the delivery fee will be between $1.00 and $2.00 and delivery times are roughly 30 minutes. that's it for this time you can catch boom bust on direct t.v. channel 321 dish network channel 284 streaming 247 on pluto t.v. the free t.v. 10 channel 279 or as always get us up at youtube dot com slash boom bust r t so you next time. when else seems wrong. just don't. let me. get to see. the answer. and it. was betrayal. when something you find themselves worlds apart we just of the common ground.
in this community there are people who believe. it's really hard there are no jobs and you see the kids. and as a parent. i can come up with arguments and there's a lot of conflict within the game and between the 2 teams most of the conflict i would say. is maybe. close one on each others it's. is good business the state of california makes $6000000000.00 a year of prison complex just to get some $25.00 where. you don't care. anything.
let me. give me my big big. time we said. just to come out of our land. is an awfully long time i'm old but i'm also the most companies you know so i'm going to give those the seed of the. most emotional when i meet. his compass humans get almost home to me nobody goes from didn't you know just to see he's just for you little shit i call. someone the i'm going to. miss you live in the womb you i don't know you kind of this. little kid. in the little bit of you come over to your list to your. shoulder. because the.
president putin visits finland and condemns a recent u.s. missile test saying the weapon appears to have been developed long before washington the i.n.f. treaty. leaked or dio sheds light on how the us oil lobby has managed to criminalize protests against pipelines. 6 years on from a chemical attack near damascus where you look into the fission investigation which is still ongoing. hello you're watching all c international i'm rosana loquitur welcome to the program.