tv Boom Bust RT December 13, 2017 3:30am-4:01am EST
rocky but. will they succeed we'll take a look now it's good today's business and financial headlines. on tuesday oil hit a two year high trading at almost double its two thousand and fifteen price brant crude oil futures for january jumped to sixty five dollars and twenty four cents a barrel a zero point five two percent increase this follows the recent deal made between opec and non member states to extend production cuts into two thousand and eighteen but it also comes just a day after the north sea forties pipeline system shut down for repairs according to an operator spokesman it could be weeks before it's back up and transporting four hundred fifty thousand barrels of oil per day again that's a problem to about forty percent of the u.k.'s total oil production and since october nearly one million barrels of oil a day have been wiped from the market due to production disruptions in the u.s. u.k. venezuela and iraq. a group of hackers in russia stole nearly ten
million dollars from banks in russia the u.s. and the u.k. where the past year according to a report from the russian based security firm group i b they went after a.t.m. machines at eighteen different banks and are apparently still in operation in fact group by b. says it looks like banks across latin america could be next to hackers specifically went after institutions that use first data is star network which is the biggest bank messaging system in the u.s. although the network itself was never hacked a few small banks using it had their debit cards breached on average hackers took five hundred thousand dollars per case in the u.s. and one point two million million dollars per case in russia. top priority for individuals businesses and government computer hacks taking place
nearly every single day the phrase we hear a lot is there are two types of companies those who have been hacked and those that don't know they've been hacked but what about the federal government which has seen its share of computer breaches i can attest to over the years let's ask todd shipley the c.e.o. of vera software who joins us from the self-proclaimed biggest little city in the world reno nevada todd thank you for joining us sure appreciate it having me today ok so you know todd we have this new secretary of homeland security kirsten nielsen she was the chief of staff for john kelly general john kelly who's now the chief of staff for the white house for president trump a she was confirmed by the senate not very long ago tell us. you know anything about here you think she's going to be good for cyber security the department of homeland security's the really sort of the head of all of these efforts what's your
take. well i think the fact that she's got some background in cyber security is important for all of us as we get further down this road where infrastructure protection cyber security is the biggest piece of it now having the fact that she's got some background and it is important for all of us especially department homeland security which is two hundred thousand employees in cover so many diverse things within our government the fact that she's got this background is going to be help for all of us are right now that that city you know they say to me the federal government is so prone because they really haven't been aggressive in doing this and i know you spoke on this program not too long about the f.d.a. and and some of the violations there but do you think government overall is doing enough this was a big deal part of the obama administration too but do you think that this is going to remain high on the list of to do's for the trumpet ministration what has to
every president since george bush jr has had their cyber security plan and their plans to implement security for the nation and every president going forward from president trump on is going to have to deal with this we look at infrastructure protection as a whole for the nation cyber security issues have become to the forefront of what we need to address because everything that we do now whether it's the banking industry whether it's electricity doesn't matter the controls of our dams are all done by computers and so cyber security in that kind of protection has to be at the forefront of every plan that goes forward if you look at the things that the government has some accountability for with regard to cyber it what are sort of the most vulnerable or the the things that can impact your consumers and individuals taxpayers if you will the most i mean is it something like like power.
well unfortunately the government doesn't have control over that most of that is done by municipalities and companies that cell phone the the power they do have regulations that they can use to implement along with banking along with every other you know sector that is controlled by you know cyber issues now the government has to put some things into place but there is big problem amongst themselves we look at what's happened with o.p.m. and the other hacks that have occurred with the government there is the potential victim too so it's a much larger problem than a lot of citizens understand sometimes because all these third parties are holding data about us and control the things that control our lives so it's a very big problem for everybody yeah i was you know i was with the government when that o.p.m. hacked matter fact my former agency was was hacked and they you know got all this data and you know then what you're told is that they will give you some credit monitoring service which i got to tell you it doesn't make you feel feel too good i
want to go back to what happened no not too long ago todd the fax breach you know they had collected aggregate information on over eight hundred consumers around the world and you know they're one of those three large credit agencies you know experian and trans union the others but you would assume a company like them with three point one billion dollars in annual revenues nine thousand such and such employees would deal with this appropriately how did consumers know that even if they're dealing with what they think are the biggest and brightest companies in the world how do they have any confidence that their information is going to be protected. well they shouldn't have any confidence because the problem is shown over the past few years that the data is going to get stolen by these companies that holder not by them but but something to hold the data that information is going to stolen by somebody and so we're all going to be victims if we haven't been already and i would say after equifax we've probably all
been victims i was a victim the o.p.m. break into and so we've all had this problem but we don't recognize it as something that affects every day because some of the companies have gotten good about rectifying things politically the credit card companies that issue new credit cards when when these problems happened we get a new credit card the mail destroyed the old one and we're ok and so i think there's a belief that these companies are going to take care of us even though they may not be doing the best job behind the scenes and most citizens don't know what's occurring. before we go just in a bullet point if you are going to prognosticate about you know what we should be looking for with regard to vulnerabilities in hacks going into twenty eighteen what would it be. well i think that the really over reliance by all of us on the technology is the problem i think there has to be a point where we understand that the technology is not going to always protect us and we have to have a better understanding of how we can be
a victim and what we can do to protect ourselves and that's the biggest thing what can i personally do to protect my selves when other people hold my data good advice todd shipley c.e.o. of vera software thanks for joining us but you made that biggest little city in the world little bigger today thanks for your advice and then for to go to break bitcoin futures trading began on monday on the chicago board options exchange the trading started off a little rocky at fifteen thousand dollars a on monday and moved up to sixteen thousand six hundred dollars in only six minutes it's an eleven percent rise and circuit breakers were hit which halted trading but it seemed things seem to have smoothed out and finally something i've been calling for since i was back in the government as a regulator the trading of bitcoin products in this case options and then futures next week with the chicago mercantile exchange group is out there so bianca that's a good thing right well even before this massive hit coin cern's was generally
associated with politics so some groups like the futurist industry association has suggested that your old agency c f p b should not allowed for. trading says a former regulator what do you think about that yeah i i think it can't happen fast enough i mean that volatility in my view is in part due to because it's not regulated beyond good because people don't have any clarity or confidence about who's behind these trades and i mean look at some confidence of bitcoin or people wouldn't be putting money into it but i think that the money going in is without a lot of people going short i read something. the other day where it was a joke headline that says bitcoin investors are surprised that klein can actually go down and you would think that might be true if you're a bitcoin investor but it can go down it's unregulated now and finally we're
getting on to the the bike of thoughtful regulation well one thing that i think is interesting is that some money managers are not allowing their customers to short peter as they have to take a long term position sell at a big deal it is a big deal i mean there's some peter ship we've been on the program bunch of times that he won't even touch but going even for his investors but it is a big deal if you can't go short and that is one of the advantage and going short means you're just going to bet on that the price in the next couple of days or weaker or months as opposed to taking sort of a longer term view that bitcoin all rise over over the months and it is a big problem and i think the ability to hedge your bet go short and long which you can do in most of these options and futures contracts because it's now being regulated offered at cboe offering see it offered at the c.m.e. group starting next monday and then ultimately at nasdaq next year that would be a good thing for not just individuals and average and best years but for everybody
and for the country quite frankly do you think liquidity is going to be a problem for these contracts it is a liquidity problem right now and you know that that's why you'll see the prices moving around so much because you make one fairly sizable train that rocks the boat a lot but one of the things that both of us spend a lot of time watching this and listening to things about all things bitcoin but the bottom line is a lot of the institutional investors are not in here and once the high frequency traders the traders i affectionately called cheetahs because they're so fast get in here they're the ones who can make markets and go short even if it's only for a few seconds or so they will. provide that needed liquidity the volume there will be increased and that volume leads to better price discovery more thorough and deliberate prices so it in my view all of this regulation and the ability for the
people who are the professional market makers the h f t's the large institutional banks everything getting them in i think should level prices and then having the transparency in these markets is just going to be a good thing for digital currencies all around. all right well with that we'll keep an eye on that one but as we go to break we've got crude oil coming up crude oil by the oculus talking about brant reached record yesterday at sixty five sixty five dollars dow closed just twenty four hundred as we go to break here other numbers at the closing bell. when you don't. see the. what did they call it that it's.
this a rogue reserve in the. following day i mean in all the mint and. in some of the up on the. they wanted us in the building because you know. that i go you know so. i thought that the ample. nice guys are financial survival guide liquid and those that you can burn music is quite easily. to keep in mind though as a tribute to the place of. work. the tax reform bill making its way through capitol hill has clearly divided congress
but now it's taking heat from leaders abroad in a letter to treasury treasury secretary steve minucci and finance ministers from europe's five biggest economies claimed the bill violates double taxation treaties and world trade rules in response a treasury spokesman said we appreciate the views of the finance ministers adding we are closely working with congress as they finalize the legislation leaders in china are also apparently worried too according to a report in the wall street journal chinese officials are putting together a contingency plan to fight the potential consequences of u.s. tax reform what do they fear could make the u.s. more attractive to businesses and cut investment china. will tax reform actually be done for the first time in over thirty years president trump says so the moves and haggling is going on in private and public as they can
conference congressional committee meets to work out the compromise details here discusses dean baker the co-director for the center for economic and policy research and steve mall bird who. t.v. and radio host gentlemen welcome you know we haven't spoken before it dean on this what do you make of the house and senate bill so far well it's kind of incredible because here it is you've had for decades or you've had this massive opportunity distribution to the richest one percent of the population their share of income going from ten percent to over twenty percent and most people gain very little if any of the gains of economic growth over this period and what's this tax plan do it says let's give them even more they'll get seventy five percent of the benefits of this tax plan when it's fully phased in two thousand and twenty seven so it's hard for me to think of a worse way to go than this tax plan it's not exactly what the president had promised them a candidate candidate trump had promised now steve is such
a consummate professional doing the whole time you're talking about that he has a great smile on that that's why he's the broadcaster here and we you know and i love it now steve i almost feel like we should have a tax reform advent calendar because every day there's another box that we opened yesterday it was a technical fix that needed to be dealt with and today it's yet another bunch of billions of dollars they're playing around with in particular let's talk about the corporate rate candidate trump said fifteen percent is it going to be twenty twenty two percent and is it all about the money at the end of the day steve. well there are reports late this afternoon that it's probably going to be twenty one percent and that it could start next year as opposed to the senate bill which would have delayed their twenty percent to two thousand and nineteen so it looks like they get a compromise there on that it also looks like the compromise bill will have a thirty seven percent top individual rate which is certainly good news for people
who are making in that top bracket but you know to the point that was made earlier this bill it's a first time once again i have to remind everybody that you're going to have this corporate look look at what you reported about china they're making contingency plans because all of a sudden the united states business might come to the united states because it's going to be so attractive isn't that a horrible thing for the american worker and the american family this is the first time we're combining the corporate cut with the individual rates and affected effect of cuts and you're going to see the average american family benefit not only from the increased child tax credit the doubling of the standard deduction and other such changes but you're also going to see them have the benefit of the corporate advantage so this is going to be a win when you're going to have economic growth over three four percent and the democrats will have that famous egg on their collective faces well look that the
bottom line is and i'm with you as you know on the corporate tax rate needs to be somewhat competitive more competitive than it is and we do want jobs you're absolutely right but it's also a little bit in my view a pig in a poke given what the president had talked about i don't know if we have the chart that steve i've known you've seen before and dean you're probably going to know this stuff off the top of your head but the bottom line is those making a million dollars or more in year one will get about sixty thousand dollars tax cut and in your twenty's ten twenty twenty seven even a nine thousand dollars tax cut but if you're making less than forty thousand dollars you're essentially flat for the first year and the last year twenty twenty seven you actually pay a few hundred bucks that's not what the president promised as it. well. you get no good i mean the president promised to help the middle class and it's very hard to see how the middle class and give a lot of working people as you said there are going to be losers on this they phase
out those individual tax cuts as of i think two thousand and twenty i don't know where that we are now with the latest version but those are their two thousand twenty seven i'll just put it that way what is there is of course the corporate tax and we actually have done this before this one the crazy things we keep doing the same things and expecting a different result i'm old enough to remember the eighty six tax reform we cut the corporate tax rate from forty six percent to thirty five percent guess what happened investment fellow as a share g.d.p. over the next two years we didn't get some big growth boom so you just go let's do this again something difference is going to happen that's absurd right not nominate you're going to be happy for them and toss us an easy a little easier one on this so you know we just said that it's not there in twenty seven and that's true it's not and maybe if it had gone through twenty seven the individual tax cut maybe it wouldn't be costing them some some money but that's not what the bills do they make permanent the corporate tax cut and then they think well you know we'll get to the individuals later right. well know that when they
all start the same time it in fact it might but they don't and the same time they corporate and on and on the end why don't you remember i understand but if we're going to temporary if we're going to sit here and worry about what's going to happen in ten years or we're in a hot on our part side well but but the point is the law i don't think the american public is going to say oh in ten years and by the way you know you talk about a sixty thousand dollars cut for people who make a million dollars and virtually nothing for people who make forty thousand and the people who make a million dollars they pay the taxes in this country the people at the top one percent pays the overwhelming majority of income taxes the people on the lower rung most of them pay no federal tax i'm with with you but as dean said we just is not what the president promised or the average income in the united states is fifty eight thousand and change fifty thousand three hundred and i just get concerned that those people aren't being impacted like the prom like the president promised
it to me is just what he promised so didn't let me let me ask you in order to do this deal with the corporate talk the tax cuts everything else in it they've got to have some pay for years and can you talk a little bit about those papers where are we going to see this squeezed out because it's really a zero sum game at the end right you know paul ryan and other republicans are even talking about they're talking about going after medicare going after medicaid going out for food stamps a lot of programs that a lot of middle income people moderate income people really depend on so on the one hand these are people that are seeing little sometimes negative from the tax cuts will be paying more in taxes then on top of that they're going to be seeing their medicare cut it we already see there they're getting rid of the mandate in the exchanges that according to congressional budget office is going to raise the price of people's insurance by ten percent so if you have someone say a family that's paying ten thousand twelve thousand year for insurance they're going to see their bill increased twelve hundred a year they're that good nothing says they had no say why it's added tax like that
the tax on the tax side so these people are getting hit left and right. well go ahead finish your thought on that go ahead. ten percent that mean compared to obamacare is increases that's a that's a bargain how did they get to be paying attention and i was a obamacare increases h.p.v. cleveland shift just a little bit because we almost got to it yesterday and we didn't have the opportunity so how we doing on state and local taxes and one of the reasons which is actually a kin to what dean was talking about with less duction is first state and local taxes local education for example is going to be impacted pretty big time but what are they going to and you've got a lot of you know northeastern state republicans who are upset about that some of the republicans who maybe folks don't care about on capitol hill in california but how are they going to resolve that are going to thread that needle steve well lisa l. the republican from new york who was one of those who voted no in the house because of the salt situation said that it looks like instead of ten thousand dollars
deduction for property taxes only they might expand this and the compromise will be twenty eight up to twenty thousand dollars deduction including property tax and state and local taxes so that will certainly make it a lot more palatable for people like seldon and and the republicans and the people of new york california and the other states that would have been hit hardest all right great thank thank you did you want to weigh in on salt well yeah i mean what see what they end up coming up with but this is obviously a big hit to a lot of the blue states if you're playing games here you know you're hitting new york you're hitting california a number of are there are the more liberal states and that does mean you know there's going to be pressure on them to cut their taxes and they'll have less money for education for health care for their people that's a big deal a shas a point on the health care thing and again i don't know where this stands in conference but the house bill eliminated the medical care deduction see if a lot of people with serious health bills and people take it people of issues like cancer heart disease serious medical conditions they suddenly would be looking at
a lot higher tax bills so that you know the richest people in the country donald trump and his friends will pay less hard for me to see the sense in that well the senate bill put it back in and increased it by the way so we'll see. that doesn't come out yet but both of you thank you so much you know one of things we don't talk about on this show because plenty of other people talk about it is that alabama senate race and that could be critiqued pretty critical because as we've talked about on the program before steve with you the vote in the senate is razor thin so if the republican wins that could help because that senator whomever he may be and it will be a he it looks like will be placed in the senate before this vote thank you so much dean baker the code director for the center for economic and policy research and steve malzberg conservative t.v. and radio host thanks for joining us thanks very. for nearly thirty years smoking has been banned from flights by nearly every airline but that didn't stop one oregon woman from trying to get away with it over the weekend once valerie
curb elo was caught in the act she was approached by flight attendants and the situation escalated from there take a listen. everybody. yelled everybody. for bella was flying from portland to sacramento on a southwest flight when she went into the bathroom and tried to disable the smoke alarm in order to smoke a cigarette not only was she not cooperate in with them you heard she eventually threatened to kill everyone on board if she didn't make it to her destination after the incident the company issued a statement saying all reports from flight attendants indicate a customer violated federal laws about smoking on board an aircraft and by tampering with a smoke detector in an aircraft restroom our crew enforced the regulation and that was followed by the passenger outburst the safety of our crew and passengers as our top priority and we take all threats seriously. that's all for now but be sure to
catch boom bust on you tube at youtube dot com slash boom bust archie thanks for watching c n x time. with you on the screen. if somebody would have been put. in my life to play. the song to. everyone. effected by the arabs. attacking them we will show. oh me both. and then. i saw. the house with articles of war. they all. believe much second close citizens in the.
most liked and i think in my head that there is no way to be able to live together . to. come. across in the mainstream media is an all time low but no one should be surprised in the media has itself to blame for this sad state of affairs is a self-inflicted wound and actually a conscious business model the media no longer has an interest in morning news media today propagates ideology. credit is one of the basic instruments to drive an economy but it can also lead to tragedy i did i took a line the whole gist i came bigger and met that the debt steichen big and in the spiral not. many lives have been broken by excessive that the banks got huge for a walk and all the big bankers got big. money by the banks
but just didn't think of the ordinary men and the morning through the back under don't buy creditors people see no future bad face for how you know you become ill into a job your relationship breaks down you become a casualty is dead a life long trip or is there a way out of those actually trying to a bit of an old reichl to judge bill from so morphed siskel from what.
it's. a mystery international says e.u. countries bear much of the blame for the cruel treatment and short by migrants in libya. we believe they are no we placed in a system all that you said torture all the features and my friend said in the yeah also to kill mr olmert from congratulate jewish people on one of their biggest holidays as recognition of jerusalem is israel's capital. more violence in the region. and right down i'm thinking about what's going on and the love that's all over israel and all about jerusalem and from take is to cheers and american boys help file video about being bullied at school season outpouring of sympathy swiftly drive to his mother's picture with the.