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tv   Boom Bust  RT  July 14, 2017 11:29am-12:01pm EDT

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a little slit my wrists that lead up tomorrow maybe maybe maybe a little of the leg. length it's called the feel we don't know you going to lead everyone in the world should experience flamingo leg you'll get it on the old the old. the old according to just. welcome our world come along for the.
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leg. length. leg leg. length. i'm lindsey francis boom box run around the world from washington d.c. tonight federal reserve chair janet yellen completes her second day of testimony on capitol hill we'll see how markets reacted to her views on the state of inflation and the fed's beige book is out my guess danielle de martino boost says it's the poorest showing in a long time and she tells us why she thinks so and it's a perfect storm in canada the governor of the bank of canada says the economy is
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walking a tight rope so proceed with caution stand by the bus start right now. before the senate banking committee today federal reserve chair janet yellen said she believes the risks concerning inflation are two sided stressing that price gains could both accelerate and slowdown that's appears to be an effort to adjust the views in financial markets yesterday in her comments before the house financial services committee yellen discussed the possibility that a recent slowdown in inflation could persist longer than the fed expects that triggered a big market rally with the dow jones industrial average hitting
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a record high investors saw the remarks as a signal that the fed which has raised interest rates three times since december might slow the pace of future interest rate increases today's testimony coupled with upbeat data and earnings report to do with the end of the week meant world shares hit a fourth all time high in less than thirty days. beijing and lisbon are set. joining forces in canada's belt and road initiative the global infrastructure project was launched in twenty thirty by chinese president xi jinping if successful it will link asia africa and europe by land and sea thereby linking them by money and leverage now portugal has entered the fray bringing the advantage of its geographic location the initiative is part of it's got two components the silk road economic belt and the twenty first century maritime silk road they will cover dozens of countries more than sixty percent of the world's population and more than
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one third of global economic output portugal is said to deepen cooperation in the sectors of new energy agriculture and infrastructure while of course welcoming chinese business investment with open arms. when it comes to brazil the political drama is seemingly endless but this time around we're dealing with former members of office instead of current leaders who must now come for she is here in the studio with more on that for us bianca who's in trouble now we are now talking about lula who is the former president of brazil and was just found guilty of charges relating to these seemingly never and ending petro brust scandal we as in a little led to silva known simply as lula was president of brazil between two thousand and three and two thousand and ten during his presidency he was credited for thrusting brazil onto the world stage and was considered one of the most
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popular leaders to ever run the country but that legacy separate a setback on wednesday when lou was found guilty of corruption and money laundering prosecutors allege louis illegally accepted one point one million dollars from a construction company in order to purchase a beach front property in exchange that company was able to sign contracts with petro bras for sale state run oil corporation he faces up to nine and a half years in prison though the judge ruled he could remain free pending an appeal which his lawyers are definitely preparing for. the sentence delivered in this scenario with proof of innocence and delivered by a judge who clearly lost his impartiality a long time ago reveals an illegitimate process which shows once again that this process was driven by political objectives and it's not just lula and his legal team that say the charges are and ruling are politically motivated people took to
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the streets of sao paolo to protest the decision holding signs reading lula resist so his presidential legacy may not have been ruined just yet but it could certainly damage his future aspirations it's been. widely known that he was planning to run for president again next year but according to brazilian law he'd be ineligible to run for office for twice as long as his sentence which means he couldn't run until he's ninety years old news of lula sentence only complicates the political and economic scandals plaguing brazil just last month the country's current president was charged with corruption days after his approval rating dropped to seven percent . a lot of people when they hear about this name this country they think of operation car wash yes does this have anything to do with oh yes it is definitely related to operation car wash was an investigation launched into different businesses and farms and political leaders that work used of making deals with petro bras in exchange for bribes and then that money would go into political slush
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funds or go directly into the certain party leaders and basically since this investigation has happened we saw dilma rousseff who was the former president impeached on corruption charges the current president michel to mare was just accused of corruption and then of course now lula who was in office before doma just got found not earth found guilty of corruption charges so there's a lot of corruption that has allegedly occurred throughout brazil and it's just a never and i guess you know that leader to lead her to monitor and no there's no try and there is not an appeal you could technically still run for president but what kind of a law is that is that while i yes i mean before he yes while he's out because he's out free and till he does appeal so technically by the time next year comes an election season starts he could run that would obviously be a really big risk for the workers' party because if he if the appeal doesn't go his way then they would essentially have no real candidate but you can definitely tell based on their response to the ruling that they may have very well been planning to
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have him as their their candidate so when the the country comes out and says you know he is he is guilty of this he's corrupt in the lawyers. come out and say no it's not i would love to be on a corner in brazil watching the newspaper headlines after his argument with us thank you so much. all our bills are going off in canada and the governor of that country's national bank is urging caution as the economy walks a very tight rope two thousand hyla much enter on time he is following this story for us alex some would say that there is a perfect storm brewing in canada an economy could hit a major major problem what are we hearing from the experts on this is this where i'm supposed to assert talking i can't hear you from this side but let's let's talk about those yeah it was so yeah alarm bells going off definitely interest rates were hiked here in canada by point two five percent from point five to point seven five just yesterday so as to seeing that jump i mean this is how the first time in
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seven years we've been pretty steady across the board and now this for some people it seems like good news if you're in the money business the canadian dollar jumped up from seventy seven and something cents us to nearly seventy nine cents today so in that way yeah that could be a positive what people who hold mortgages well that's a very different story because the banks jumped on this right off the bat and they took their rates from their prime lending rate from two point seven to two point nine five percent what we might see and then it would seem that the dollar has jumped a little bit is the predictions are that in october we might see another rate hike that will be likened to this one and of course some people possibly in trouble with their mortgages a more expensive of course but let's go to a couple of charge here really interesting stuff give you a bit of a breakdown of what's going on first we're going to go to a housing chart and you can see real housing prices in the u.s. versus canada from one thousand nine hundred five to two thousand and sixty this baby speaks for itself
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a look at those housing prices spike you know this is this is something that has been going on we've been talking about the bubble in canada forever well things have slowed down you don't have to be an economist to know that all you have to do is live in a city like toronto. houses were flipping like crazy just a year ago or even in spring time this year and that has basically stopped housings are on the market now for a couple months at the time and some people have just taken their houses off the market so this has slowed down to what kind of seems like normal really but when you break it down you know everybody's expected go up and up and up of course for the investors in real estate some of them might take a loss in the end but for now it just looks like possibly a stabilization but definitely not the growth that you saw in the past now also another judge chart which is really important here the percent of labor force employment in construction that's goes hand in hand with housing if the housing market slows down so does construction and look canada has doubled the amount of people that are in the housing construction business than the states you guys have
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about three point five percent we're at seven percent and now this third charge that chart makes volumes this is the big want to hear the household debt to income well americans learned a lesson back in two thousand and eight you guys went down with that and we just went up it's so troubled times a bite of toss the top the u.s. a bit of a lesson canada really didn't go through that problem that you guys did back in two thousand and eight and now that's an issue the canadians are one of the worst countries when it comes to household debt and that could spell trouble in the long run wow those are some shocking numbers our time to take a good candidate thank you so much for joining us on this alex highlights joining us from toronto thank you. time now for a quick break stick around because when we get back my guests and i thought the look the new baseball out from the fed and russian internet search engine giant yandex and it were of joining forces to go to break here the numbers.
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you mentioned six thirty five and you have a career ending career involves using your eyes slowly in your computer and things like that being in an office and perhaps you sort of getting going it's circular. you're going to have to stop doing all this i mean this is kind of you look at the minutes before my world became smaller and smaller and smaller until i ended up living it in a box. or out of a very strong magnetic field on
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a car i felt in my head. think of it like a real hard pressure my skin burned and that wireless access point there just continues on with our students in the schools. we are just continually bathing our citizens in this microwave radiation it is certainly electro small and it's getting worse. giant operates a ride share service in the. following
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is a flash flood watch a mountain from the national weather service plans flood watch in effect through this evening the national weather service in mt hop has issued a flap flood watch for portions of southeastern pennsylvania southern new jersey eastern maryland and delaware until midnight tonight showers and thunderstorms that develop this afternoon will contain torrential downpours there is a potential for some outpatients to see multiple rounds of storms through this evening some locations could receive rainfall amounts of two to four inches in just a short period which could produce flash flooding flash flooding of creeks streams and good ways will be possible especially in urban and poor drainage areas
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additionally areas and birds in montgomery county is in pennsylvania and in far southern new jersey that received heavy rainfall since yesterday afternoon will be susceptible to flash flooding flash flood watch means that conditions may develop that lead to flash flooding flash flooding is a very dangerous situation you should monitor later forecasts and be prepared to take action should flash flood warning be issued. around fourteen million customers may have been exposed while verizon puts the number around six million. just as federal reserve chair janet yellen began her testimony before lawmakers this week the beige book was released it details overall economic health in each of the districts that houses a federal reserve bank we've got some jobs workers and housing numbers to get to
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please welcome danielle de martino booth founder of money strong and author of the wonderful book fed up an insider's take on why the federal reserve is bad for america you say this is the weakest beige book we've seen since last year you got a couple of very pointed reasons why and lightness well kansas city was actually the only district out of the twelve districts across the nation to report that activity had increased economic activity had increased since the last time the fed met otherwise all other eleven districts were either flat to down half the districts noted that slowing car sales have become problematic and this is a case a strange case actually of the anecdotal data now catching up to the hard data but the fed does tend to spin the beige book fairly positively as a habit i can tell you that as a former insider all right well let's talk about janet yellen obviously testifying over over two eight days yesterday she talked for two hours praising the strength
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of job growth numbers she went on to say the fed may not raise rates. it's done so twice this year so far a lot of people had their hopes up but the fact the fed's ability to start reducing its current bond holdings in the fall. look gallons testimony yesterday was in one word confusing to me she said she used the word gradual so many times and yet as you just said she spoke about a strengthening job market well where is the wage growth is my question to her and if the job market is so strong why are there ratcheting back expectations for further rate hikes this year to add on to the current to the confusion she was very aggressive in her verbiage about beginning to shrink the balance sheet which is quantitative tightening and it's more in a form of tightening in my opinion than hiking rates is and she said that she wants to get that started relatively quickly so she was truly speaking out of both sides
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of her mouth yesterday very confusing testimony we're getting nothing specific as of yet that most people would like to have to look at and say good this is a good chunk of information it's operable the beige book reported that we are seeing a demand for manufacturing and non financial services but by all accounts there still seems to be a shortage of workers the fed in philadelphia reported they saw more job hopping than actual retentions what does this tell us about the current job market well we did see the quits rate tick up in another recent report and that shows that there is a higher degree of confidence among workers who have jobs and again it is this skills mismatch that is one of the outgrowths of the great financial crisis and if you are a skilled worker today you can find work you can hop from job to job to job and you can command a decent wage the flip side of it is the retail sector as we know is is in the
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middle of a bath these people do not have transferable skills if they've been working in retail their entire career and we know that part time employment and that people working two jobs that these numbers remain unusually high and again that's a depressant. on wage gains so you really do have a barbell style of of the job market you've got the haves and you've really got the have nots as well absolutely well inflation is still below the fed's target of two percent even though we're seeing unemployment numbers starting to sort of fall and the fed has raised interest rates as we've talked about three times in the last year should this be a call to slow or some pause and other hikes some say yes some say no you know i really do wish that they would have started earlier and already gotten to two percent it might be heretical for me just makes it make such a statement i don't think the fed needs to tighten any more i think that there are
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enough indicators that suggest that the economy is slowing that that the fed should take their their foot off the accelerator maybe tap the brake that being said i really don't think that the fed should lower interest rates even if we go into a recession lindsey zero interest rate policy has created a lot of the distortions that we see in the economy today it's been a huge contributor to the low quality of jobs that have been created as companies have stopped investing in plants and equipment and innovation and just you know borrowed money and bought shares which maximize shareholder value and it takes advantage of federal reserve zero interest rate policy but as we know it does very little to spur decent economic growth and strong job gains well let's talk about these districts that report on the base but more than half of them are reporting. noting actually in their reports it's not declined an auto sales obviously that's been talked about a lot when we talk about consumer spending it's something that we touch on all the time what kind of collateral damage can we expect for the auto industry just going
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off of this current report you know they say that manufacturing only employees a certain percentage eleven twelve percent of the u.s. workforce and that we really should only be paying attention to the services economy with all due deference to that conventional wisdom. i think it's very important to note that the auto industry in some way shape or form directly indirectly affects five percent of all working americans today the factory jobs that are that have been associated with a massive rebound in the auto sector which few people remember was bailed out but the jobs that will be lost going forward as we move simply from dealers getting rid of salesmen because they don't have as much sales volume once you start to cut into those high paying factory jobs there will be as you suggest collateral damage to the overall economy let's talk about some of the retail jobs that you and i touched on earlier we talked about as you said retail being a bloodbath i've spoken with people who say analysts who say that the way we
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measure consumer spending right now just isn't correct we're not looking at it right because we're measuring. basically retail wrong that we measure you know brick and mortar or amazon or wal-mart under certain headings but they're absorbing so many companies at such a fast rate that what these companies actually sell is changing so much and people aren't going to stores they're going online it's sort of an antiquated measurement i'd like to get your take on that well look i think that every single statistic is . needs to be dynamic in its make up i would certainly agree that the way we shop has changed dramatically and i welcome any new way of measuring consumption i certainly welcome the ancillary to that which is which is a new way of measuring inflation which the fed is obviously getting wrong once again but even if theoretically consumption was stronger than what it is my only
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counter to that would be why are consumer bankruptcies ticking up why did capital one announce that credit card charge off rate was going to increase which which made the fed pause in terms of giving them a green light during the stress test wire. faults going up why are f.h.a. mortgage defaults going up clearly there is some kind of distress signal emanating from the household sector and i think that that will have an impact on consumption regardless of how it's measured what do you think about some of the stuff she said yesterday some of what we talked about today. as you say there is there's not a lot to grab on to as far as specifics goes talking about the dual risk of inflation prices rising too slowly price of prices excel or eating too quickly it seems to it wants to you know model modify the impacts of our comments. before you know what she said on wednesday today it's sort of modifying what she said from yes you know what do you think look i wish that she would get to the heart of the
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matter i wish that she would get to certain types of price inflation that are absolutely crippling households the rate of rental growth the rate of cocaine ments insurance premiums those types of things you know what the chair is not recognizing is that there is progress in this world there will be declines in mobile phone cell rates there will be five or six of these instances in any given year that will be an active drag on inflation but at the same time the cost of necessities the cost of living even the cost of food right now is rising appreciably and i think that that needs to have been acknowledged by the chair instead of just insisting that job growth has remained robust because all she is doing is looking at a headline figure that really tells us so very little or no the question real quick before we go there is talk of janet yellen not being the chair of the fed in just
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a few months of other people being juggled around as possible replacements do you think she'll stay on. well you just saw me smile lindsey so i'm going to say that i hope not. and that that with all due deference to janet yellen and she is a brilliant woman but i would certainly prefer to see a changing of the guard at this juncture and really a changing of the guard for the last thirty years in the culture that alan greenspan started at the fed i welcome anybody who's not an academic ph d. on to the forum see with open arms if we hear about developments in that in that area we're going to bring you on like a display thank you so much for telling us how you fill out this and giving us all this great information daniel de martino both founder of money strong and author of fed up an insider's take on why the federal reserve is bad for america. a man shows up to fix an a.t.m. and winds up completely trapped inside corpus christi texas a contractor was changing the lock to a bank of america room that leads to the back of the a.t.m.
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he became trapped when you couldn't let himself out of that room because he didn't have a key card on him on top of that he was unable to notify bank employees for help on top of that he didn't have his cell phone on him so then he got creative and suddenly customers began to receive notes from the cash slot begging for help and asking that they call his boss the only problem was that the majority of them thought it was a joke so when one finally did call the number on the help note a police officer arrived and detected a voice coming from inside the machine only then did it kick down the back room door wrench a wide open in the man was let out from inside the a.t.m. but guess what he has not been identified and i doubt he will be that's all for now everybody thanks for joining us check out the show on youtube dot com slash food us our teeth thanks for watching the next.
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i've observed events of the past few years and asked myself several times what's going on in my native germany. really is of refugees. u.s. intelligence agencies indiscriminately listening in on german citizens of the government. and once again german tanks are heading east. from various political parties and various independent experts and journalists in an effort to understand just how independent germany really is when it comes to decision making. whether it acts on its own national interests. someone else will.
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be a. little. bit. by then coughing session on. the long. haul. not of. course is going on more. so. than you know so it was if you have the multiple injuries among. them to keep sophia hall most of the above shows your you know mars on the phone to . feeling perfectly awful so this is a yes. but in
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a more awesome. my. littles look not that look what i can now maybe maybe i'm a bit full of the look. fifty years ago the american naval vessel u.s.s. liberty was brutally attacked by israeli forces the attack on the liberty was one of the worst insults committed by an alawite country since then the survivors of this unprovoked attack have been seeking justice.
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bronx long so years since the deadly terror attack in nice but a french magazine comes under fire for printing dramatic images of the atrocity. the u.s. and french president show signs of overcoming some of the differences off the folds in paris however people voiced anger a need to sweep godless off their plans. a new video reportedly showing u.s. helicopters over the city of raka i suppose de facto capital in syria although washington has confirmed its forces are now operating inside the city it's only under the pretext of advise and assist and the company.


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