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tv   Boom Bust  RT  September 12, 2017 4:29pm-5:01pm EDT

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i see a herd of love for the night president of the world bank paid to write me seriously send us an e-mail. most people think just stand out in this business you need to be the first one on top of the story or the person with the loudest voice of the biggest raid in truth to stand out of the news business you just need to ask the right questions and demand the right answer. question.
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see million dollars ario billion for lindsey france you're launching boon for broadcasting to you over around the world from here in washington d.c. coming up on the show tax credit reporting company equifax facing lawsuits over its failure to protect customer information and if a company like equifax can't protect its data what other industries are at risk waging economic warfare china sides with the u.s. on sanctions for north korea after its latest nuclear test but the u.s. is already threatening beijing on the repercussions for failing to comply plus styne rocketing ceiling of the national debt hits a new milestone twenty trillion dollars for she tells us how everyday americans are
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affected by spending spinning out of control standby we have all that and more and boom bust starts right now. the compromised credit reporting company at with facts is facing dozens of federal lawsuits since exposing one of the largest banks in history last week equifax revealed may have stolen the personal information for one hundred forty three million americans since then the lawsuits have been piling on more than thirty and counting as of monday in a securities fraud lawsuit equifax is accused of misleading shareholders about its ability to protect consumer data the agency knew about the hike more than a month before the truth came out and this lawsuit claims the company inflated by.
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anshul statements and share price before being exposed overnight after the announcement about three billion dollars disappeared from equifax market value and shares dropped as much as seventeen percent in one day and this week it continues to fall more lawsuits are criticizing equifax is offered to provide a year of free credit monitoring to customers complaints claim the offer is an introduction to pitch costlier services down the road and on monday key lawmakers demanded a detailed account of the company's security systems concerned to customers sensitive information was not properly protected. in the age of the internet of things no connected device is completely safe from hackers and perhaps nowhere is that a more alarming idea than in the medical field from pacemakers to i.v. drips white hat hackers have pointed out the growing vulnerabilities in medical devices and when a patient's wife depends on one it's more important than ever to keep its control
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from getting into the wrong hands president and c.e.o. of virus software shipley joins me to talk about this growing threat to the f.d.a. recently alerted people to a voluntary recall four hundred sixty five thousand pacemakers after they discovered hackers could reprogram those devices that obviously could put patients' lives at risk the department of homeland security discovered vulnerability and smart syringes that are used to administer not only medications but also in a seizure why are we hearing about these situations right now well it's just come to revelation because of the recall this is not something that hasn't been a you know on the plate for some time we've known for several years that this is a problem and it's just because the recall that people are becoming more aware of what's happening with this and it's becoming evident that there's a much larger problem than we ever thought there was and there's a lot of money on the line when we're talking about situations like this pacemaker sales for example expected to reach more than twelve billion dollars by two thousand and twenty one when you talk about the internet of medical things that's
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expected to be ace. two billion dollar industry in the same the air right now in just this past year was only twenty two point five billion so don't you think with these billions of dollars and all of this industry and the growing sense of the internet of things and the internet of medical things that there would be more emphasis on security well you would think and that would be the thing we would want to happen but the problem is when these people are providing these services they want to get out and help people only want to medical device that's going to save lives security is an afterthought and that's the problem with the pacemaker recall is they built these things with a connection through our if you know connections to it so that they could get in there change to the devices when they needed to update things and not considering the security was going to an issue that somebody's going to be able walk by with n r a device and be able to connect to that that pacemaker so they didn't think that this was going to be an issue until now when they've had to do a half a million you know devices recall and we have to remember the recall is not that
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they're going to actually pull those out put new ones in they've got a firmware update that they're going to be able to do with the patients got to go on their doctor's office and get this three minute procedure where there's an update to the code that's adding the security but still the company has to pay for all this and has to do the research to allow this all to occur it and only leads me to wonder i mean does the f.d.a. have any sort of cybersecurity regulations in place for these types of inventions well obviously not enough because they got through which is just sad because there are other places in this country that have a good understanding of how to deal with code the gaming industry and i mean the document industry has done that for years the state of nevada requires that all the code that goes into the slot machines is looked at in understood before it goes out to a slot machine the f.d.a. isn't doing that and they aren't looking at code is going in your body it's travesty i think they should be doing things like that and it's an industry that's growing only at the same pace the only thing that's growing just as. it is the
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virtual reality industry we're talking about yeah such a fast growing industry we really need to be paying attention to it i'm thinking about the way that these devices not only are created like you said without cyber security in mind but also the way that they're managed what stands in the way of maintaining a secure system with these medical devices well i mean that's the ongoing problem that we all have with security of everything we look at what happened after affects a huge company that spent millions of millions of dollars trying to protect itself and now we're having to talk about how hospitals are doing the same thing in where their errors are but they're not researching to find out where the fallacies are in their system and i think that's part of the problem they need to be understanding what they're. putting out there for their patient services and not finding out whether or not it's secure or not and that's kind of you know ridiculous that they have been doing that for the past three years even though we know that several years ago that these devices were probably going to be attacked and we knew that it was going to her at some point the future look at a situation like equifax
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a company that has some of our most sensitive information they knew that the protection of that information online had to be top notch and they got hacked one of the largest tax in history one hundred forty three million americans supposedly at risk at this point if we can't rely on equifax to protect information how are we supposed to rely on the medical field to be better at it than an agency like that well unfortunately we're not that ends up being a problem i think the doctors the offices every place that we go for services from the medical industry our rift with the problems that we don't understand and can't grasp because doctors aren't paid to do internet security they're supposed to be taking care of our health and so if they're not you know dealing with these larger problems who is and we don't see that it's occurring very well and now that we've got this recall we're finding out about it as you mentioned this is all coming to about about helping people these are medical devices meant to help people with
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their health care they don't think about the militias. that could be behind having something that is connected how there been instances of death from hacked devices well we don't know that answer yet the problem is even if there was i'm not sure that we're going to know because these devices although there's no security in them what's the logging in the capability for us to understand that things were changed in them and law enforcement certainly doesn't have the ability to go look at a pacemaker yet i mean it may be something they have to do but we're not capable of being able to do that kind of thing in ascertaining from a frenzy point of view if there was changes made in the pacemaker so we may not know ever if it actually occurs and until somebody admits and says they did it so what steps would have to be taken in order to have those kind of safeguards in place to find out if something malicious did in fact happen to someone well i mean the industry would have to look not only at the security of their devices but how they're logging what changes are made in the devices so if there's any kind of logging or caching of changes made to the device that we can go back and look at
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then people would understand what had changed and that's an important lesson here and so many other things but the medical devices have not got up to speed with those kinds of things where they're actually recording a log of what has happened on the device we're talking about retroactively recalling almost half a million pacemakers is that enough to retroactively deal with this problem or given you know the number of internet of medical things out there is it out a point where we need to start over or can we fix what's already been created so i think we can fix it in st jude's medical devices is doing that with these peacemaker devices and they're trying to go out and do that and make the changes in it'll take some time other companies that are there making the other kinds of devices medical devices that are out there are looking at how security becomes a function of the device now instead of an afterthought and they're doing that but it's not a replacement cost not going in there and actually updating the devices they currently got as things break the replace them with new devices and so it's going
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to take several years for this to. occur it's not something that may happen overnight with everything in life we have risk we know that as soon as we decide to go on the internet there's risk involved the risk of connected devices is clear obviously but the f.d.a. is quick to point out that it's also made people safer it's a more efficient way of administering things it's more convenient for health care delivery what do you make of that argument saying yes we understand these could be hacked but it's also made health care about or as a whole well i think they have the problem is we now have this problem where we have a security issue if they have thought about that ahead of time like every industry that applies technology should be then we wouldn't be were at we just have to go back now and look at the things that are available make the changes in a positive way influence the future building of these things and make sure that security's forefront part of what they're doing and move on all right todd shipley president and c.e.o. of euro software thank you so much for joining us today. the united nations
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security council unanimously voted to step up saying sions on north korea following its most powerful nuclear test to date china and russia sided with the u.s. on the same sions that u.s. ambassador nikki haley says will cut north korean exports by ninety percent and reduce fuel available in the country by thirty percent but some see the same sions not as financially crippling for the country but more of a political stance showing a united front against a nuclear north korea and with the sanctions that crude oil imports will be untouched kept only at current levels and most of the country's crude comes from china now abiding by the same sions should not be tough but treasury secretary. said tuesday that if china fails to follow u.n. sanctions he'll seek new sanctions on beijing to cut off access to u.s. markets called the threat of restricting access to the u.s. in international dollars system quite meaningful during an industry conference and
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claims that economic war. fair works. in the face of u.n. sanctions north korea may be finding a way around to evade the economic cut off and continue funding the country and its missile and nuclear programs a report by the security firm fire eyes says state sponsor actors are trying to steal big corn and other virtual currencies specifically through south korean crypto currency exchanges since may the security firm has noted at least three separate attacks by north korean hackers the attacks coincide with a number of recent reports in south korea this spring the exchange reported five point three million dollars in between stolen into live media reports revealed billions in korean one had been stolen from them as the country's cash reserves tie in the coin continues to surge it's no surprise north korea may be expanding financial crime to include crypto currencies after getting stolen coin north korea can launder them on exchanges in return for cash especially given the lax
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regulatory environment surrounding the emerging market all right time now for a quick break stick around when we return in italy the opposition groups continue to make strides towards ditching the euro or is it all just a threat then the u.s. national debt breaks new clients just days after president trump raises the debt limit how high will it go as we go to break here the numbers at the closing bell. and all the world and all the news companies merely players but what kind of partners are anti american play are to america. america. anyway. just like the real me me being.
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and in the end you could never hear on. some of the parking. lot of the staples of the world stage all the world's a stage we are definitely a player. i'm a trial lawyer i've spent countless hours poring through documents that tell the story about the ugly side of. corporate media written uses to talk about the car. i'm going to paint a clear picture about how disturbing calico rug for her conduct has been and mom these are stories that no one else can tell my parents or your host of americans question. what you have for breakfast yesterday why would you put those for the faces your wife or. dog. what's your biggest fear in a bit on the hayride when so let's talk
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a little bit bored you say if you ever met the who's the best quote about. exploring the topic that doesn't belong in the piece now i've had to do due to question more. beijing is being bitten by its own currency manipulation from twenty fourteen to twenty sixteen and fell against the dollar so the people's bank of china intervened in a number of ways including making it more difficult to short the currency but now the un is heading up in two thousand and sixteen twenty seventeen of seven point five percent this year the rise may be too strong too quick and now officials are trying to cap the currencies drive it's at its strongest rate against the dollar since twenty fifteen it only looks to be going up and officials are worried that with a strong un it's hurting china's export sector
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a strong currency against the dollar means exports are more expensive so what is beijing doing about it well in the same way it manipulated the un to bolster it now it's trying to artificially cool it down making it easier again to shore up the currency but not everyone thinks that such a hot idea it could create more friction between washington and beijing when it comes to imbalanced trade and some say china should let the currency and exporters write all of this out until the dollar again gains strength. one country that has been contemplating completely ditching its currency is coming up with a less contentious proposal italy's main opposition parties have been rallying to leave the euro but now a less radical idea may prevail three of italy's four largest party has proposed introducing a parallel currency to the euro which they say will boost growth and jobs now many believe the euro has done the opposite for the struggling economy now only about half of italians are behind the euro eighteen years after the country adopted the
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currency so these three parties think this dual currency should be introduced after next year's election the european commission is strongly against the move saying there can only be one legal tender in the eurozone and some supporters say the primary goal. proposing a new currency is to actually persuade brussels to change rules in italy to allow them to spend more and cut taxes others think that by introducing a parallel currency that's one step closer to showing italians they can survive without the euro eventually leading to an exit. at the end of last week president donald trump signed a bill into law that temporarily raised the u.s. debt limit for three months now shortly after that the debt total reached a new record of twenty trillion dollars to hear what this means for the u.s. economy we're joined now by bianca bianca how much did the debt grow after this bill was signed is that what launched it over the top yes so after the bill was
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signed it added a three hundred eighteen billion dollar price tag to that which is what pushed us over to the twenty trillion dollars mark since march of this year the u.s. debt balance remained stagnant because of the debt ceiling the total was then sitting around nineteen point eight trillion dollars as the treasury worked to avoid a financial default but last week that limit was temporary lifted by president trump which led to a new record of twenty trillion dollars worth of outstanding debt and according to the treasury around fourteen point six trillion of that is held by the public that includes individuals corporations governments at the state and local levels and the federal reserve system there meaning five point five trillion of it is held by intragovernmental holdings or government accounts series securities and that includes federal trust funds like the medicare trust fund and social security trust fund. so the numbers might be overwhelming but aren't too surprising by two thousand and fifteen it hit over eighteen trillion dollars which is nearly triple
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what it was in two thousand and four now the treasury has until december eighth until the bill expires meaning congress will eventually have to do something about federal spending and by then we'll know more about the implications for rounding hurricanes harby an arm and what kind of long term help the impacted areas may need we know that this could affect government operations but what does this mean for the average american well now that our debt has exceeded g.d.p. that means a couple of things for example an unexpected slowdown or continued excessive spending which could hurt us in ways we haven't experienced before. it's been so many years where we've seen only go one way and one did us officially surpassed g.d.p. so this happened in two thousand and thirteen so it's not exactly a new phenomenon but it's not something that sounds good you know we don't want to hear that our debt to g.d.p. ratio has got out of control but it's definitely a circumstantial thing in every single country there are
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a lot of factors you need to question before figuring out whether this is sustainable or not so are the buyers of our debt domestic in here or are they in china which is something a lot of fiscal hawks like to point out. growing or has our growth been slow and does the government have a plan to cut debt so when you look through those three main things then you can kind of figure out whether you know you're on a bad route or not for example greece we know couldn't get a plan together on how they're going to cut their debt so the press around their debt crisis was terrible and it made it look like they were just about to explode but then in japan who had actually a higher debt to g.d.p. ratio it was a little more sustainable because most of their debt buyers were domestic so the press for them was much different and even though their situation was arguably worse in some ways so in the u.s. it is a stable for now but a lot of analysts are expecting that we're going to get another recession in a few years and if something like that or even other factors like more more storms
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or terrorist attacks all of these things impact our economy and our debt so you know right now it's ok but if and when those other things happen in the future it could be a very different scenario to be honest when you're talking about a number his biggest twenty trillion dollars it almost seems arbitrary at this point it's just so high you can even wrap your head around it but twenty trillion dollar debt balance here in the united states how does that impact on everyday american yeah it's hard to conceive how such a massive debt balance would impact you have an individual level but it definitely has the most obvious example would be interest rates right when the debt isn't sustainable through buyers. you have to have right brain it's interest rates and that leads to more you know that affects car loans home loans student loans things we talk about all the time which has already hurt us and many ways it can also slow economic growth which of course job markets not as almost a little scarier because of how the job markets have changed since the recession it's very different and that's been hard for
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a lot of americans to deal with them bust bianca sheeny thank you so much for staying on top of this for us. here at the bank of canada is playing defense after being criticized for staying silent leading up to last week's interest rate hike and some economists say the banks needed approach created an atmosphere of uncertainty in the country while the bank maintains it was business as usual artie's alex mileage joining us from toronto to cover this fund for us alex what are critics saying about bank of canada's zipped up attitude when it comes to raising rates well guess who those critics are and those are bankers economists the analysts because some of them didn't get it right so who know that all of us feel very sorry for bankers and indeed the economists that are dealing with those numbers but let's listen to this one guys the chief economist his name is doug porter he's from the from the molds or the bank of montreal here in canada one of the biggest banks so joe porter basically say they were quiet they were quiet for
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like two months leading up to the interest rate hike and only six out of thirty three analysts in one scene one poll and one study got it right well you know when you talk to anybody in the street and they would have expected the interest rate hike to hop and the question was when most analysts expected it to happen in october well it happened last week about the second high since july and if we see this chart i mean ok look it's the surprises coming at you yeah we haven't had an interest interest rate hike in almost seven years but the pattern is starting it started just a couple of months ago so you can expect to see more coming your way now even porter says. he believes the bank of canada did the right thing but that being silent put a little bit of a ripple in the market and that it was a dangerous thing to do well how is the bank of canada reacting to that criticism that. out of canada is pretty much reacting the way i'm reacting as if you have bad analysts well you know what that's your problem really the bank of canada i mean
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does is our common practice for it to just blurt out things there's always a blackout period before an interest rate hike is about to happen they say according to what they've seen from traders the odds were about fifty fifty that there was going to be an interest rate hike happening so that's a little bit of a different number than what porter was saying so we have that factor as well as the numbers came out for the for canada g.d.p. and it was doing canada's doing better than expected so that happened a couple weeks before this as well so all the indicators pointed towards this possibly happening one thing it was here's an interesting sort of idea of why this is actually good if you check out this chart this is pretty amazing we were talking or you guys were talking about u.s. debt well look at canadian debt per household so this is consumer debt we're way worse than americans we're in a bubble so some analysts are saying this is great this is the way that you scare people into action by sneaking up on them and saying look the interest rates are
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going up now we know that this year this is probably about going to be two interest rate hikes but we can expect three more interest rate hikes in two thousand and eighteen according to many experts alex don't we like to see more transparency when it comes to the financial system though especially given what happened in two thousand and seven two thousand and eight. so we can you repeat the question don't we like to see more transparency in our financial system though especially given the recession that we saw around the world well i absolutely i think transparency is a very important thing but look this is this really truly is business as usual the bank didn't do the bank of canada didn't do anything that was completely out of the ordinary this is a pattern that we've seen in the past except especially around this time of year they don't just come out and blurt things that something's going to happen and they themselves like well like i was saying fifty fifty odd so the bank was probably sitting on the fence till the last minute as well i can't say that that's that's the truth but the fact of the matter is when the market right now i mean there's so
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many factors to look into that there has to be a lot of dog going into raising the interest rate so look at the housing market in canada some will tell you that you know the bubble has burst it's gone down while others are telling you that the markets are actually going up again so there is one factor the second factor is the canadian dollar it's very very strong against the american dollar right now a gain some momentum but is that something that you really want that strong canadian dollar means that we're actually not in the advantage we are with a weaker dollar when we're trading with the united states so there's a lot of factors to look into so you know the analyst sounds more like sour grapes they just didn't get it right and like i said people on the street pretty much ask anybody they knew an interest rate was coming but it's coming and those analysts i hear are saying that this is a relic of the eighty's and ninety's to hear that a bank is just doing this without giving a heads up but we'll leave it there alex the hile of its reporting for us from toronto thank you so much thank you. ahead of hurricane earl when officials urged
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floridians to get out of the danger zone workers at a pizza hut in jacksonville found a note from their manager that has social media in an uproar the note said that safety was their number one priority before listing strict guidelines for the hurricane that made it harder to actually evacuate is that if you had to leave you could only be off the schedule for twenty four hours before the storm hit you could not evacuate on friday to avoid the storm on tuesday and to top it off if you missed your shift you'd at least get written up jacksonville's mayor did issue a mandatory evacuation for some parts of the city but the memo also has that covered too if you had an evacuation order in place do you have to be back to work in three days now pizza hut did come out and say that they had no policy in place that told team members when they could leave or return after a disaster but apparently the manager didn't get that note right that'll do it for us for now thank you so much for watching be sure to catch boom bust on direct t.v.
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you can find us on the r t channel three two one and if you miss us on directv you can catch boom bust on youtube youtube dot com slash boom bust r t thanks for watching see you next time. larry you're watching our. first war.
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let local blogs sell you on the idea that dropping bombs brings police to the chicken hawks forcing you to fight the battles that still exists to do socks for the tell you that would be gossip and probably less well. off the bad guys and tell you that you are not cool enough to buy their product. these are the hawks that we along the border the one. place. to. look.
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on are the tensions on the korean peninsula as pyongyang threatens and great pain for washington the response to sanctions reaction from our team on the ground in seoul south korea. and a long road to recovery in florida residents were evacuated for are slowly returning to the states bringing the latest from miami. live thousands take to the streets of france protesting president micron's a labor law.


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