tv Boom Bust RT December 24, 2019 1:30am-2:00am EST
a u.s. china trade deal could it all just be a charade richard walsh host of economic update is standing by to bring us up to speed on the state of negotiations and later bear stock is after the recent news that the u.s. government will back the company and its life was saved by r.t. correspondent alex mileage joins the show from toronto to help us take a look at the big picture of the suv we have but time to get to the let's dive right in. and as we just mentioned boeing has fired c.e.o. dennis mullen burge amid struggles related to the ongoing $737.00 max saga board chairman david calhoun will take over as the aviation giant's chief executive on the 13th of january boeing board member lawrence keller will take calhoun's post as boeing's non-executive chairman of the board effective immediately the news comes as the company has attempted to gain the trust of the public and global regulators following 2 fatal crashes of the 737 max jets which killed 346 people as we have previously reported boeing 737 max has been grounded worldwide since march and the
company announced last week that it would spend production of the aircraft moving forward on the news the leadership of the leadership shuffle boeing stock rose by 3 percent today and it has been a tough year though overall for the aircraft giant losing nearly 20 percent of their stock price since the grounding now joining us now to discuss what this all means we are joined by jamie finch former national transportation safety board official now jamie it's great to have you here today but why now and what is this going to do to this whole $737.00 max saga why do we get rid of today well it had happened and we predicted. several times already the need for him to go which is going to be inevitable this was not just important but he was essential for boeing to get past this this very dark period in his history in his 103 year history this is the biggest crisis they've been released and so. by removing him
from position it begins that entire process and so forth but it's going to be a wrong long haul for them and now it seems like it's been a year since the crash of lie and air flight $610.00 in october of 2018 and it seems like regulators and boeing just can't clean this up so is there something that can be done or are they on the right track right now to kind of fix this issue maybe even get that 737 max back in the skies very interesting i think the f.a.a. had already started addressing their own internal problems that they'd have as far as the regulator side as we reported before and we talked about the f.a.a. had done its own analysis a year ago in november 28th seen and realized that this plane was supposed to crash possibly 15 times within its lifecycle of the entire aircraft and so they they had done their own analysis but they did not. pull the plane off of the ground and so f.a.a. has taken taken issues and make him move to address his issues boeing on the other
hand was more circling the wagons they weren't really working with or they seemed a little bit insincere in their apologies they seemed insincere in their earnest and earnest efforts in working with the f.a.a. to resolve this problem or they've been slow in dragging their feet they've been analysing these these found tom you know it was about to go back up in the air we sort of announcement which were finally put to a halt just a few a couple weeks ago when the f.a.a. administrator met with the c.e.o. now former c.e.o. of boeing and told him to cut it out and stop it now because this i mean we've seen this and this is like i said has been more than a year long saga of boeing 737 max issues but you know i mean sure they've taken a hit on their stock price but they're still the biggest player in the game when it comes to aerospace obviously they're competing with airbus but when you talk about the fact that they were i mean not. say they didn't take it seriously because i'm
sure they took it seriously but they felt that they could just beat it by talking over it is that was that the rug i mean that's over all the wrong way and do we expect a change in their in their approach you know i think that will we saw the immediate term about we're right after that meeting with the f.a.a. administrator you know just a few days after that was when boeing announced that they were holding production on the 737 max series and so they put that in halt now they hold and they've they've said that they're going to move those 12000 employees that were working on the $737.00 max within the company and have them working on the job so they won't be doing layoffs or firings but there's only so long that boeing can carry that and it seems like they're just probably holding off quickly to just try until they can start making the 737 max you know in the fleet and that's what they're hoping to do because it will take them much longer to ramp up if they get rid of these everybody late everybody off is going to take a much longer to bring people back in it's over because people are going go out there to find out the jobs and everything else and they're going to go on with their lives and so it would it would be an even slower delay in the in boeing
getting this back into production if they did for all of these people absolutely jamie finch former n.t.s.b. official thank you so much for joining us today on this this very newsy day for boeing thank you thank you. and china will cut import tariffs on a host of goods beginning the 1st of january as the nation attempts to hammer out a phase one trade deal with the united states now it's important to note that china will be lowering tariffs for all trading partners on $859.00 types of products ranging from frozen pork to high tech components according to a statement from china's finance ministry on monday the new rates will be below what most favored trading partners have today china will also lower the import levies on more than 8000 products for countries and territories that have free trade agreements with them according clued in the likes of australia iceland and south korea now meanwhile on saturday u.s.
president donald trump was positive about the state of trade talks with china while speaking at a turning points usa event he had this to say. we also turkey toughest ever actually against china and as the result was we just achieved a breakthrough on the trade deal and we'll be signing it very shortly they're already buying digit millions of dollars of products agricultural product there's a lot to go over here and we have the pleasure to be joined by richard professor richard wolfe professor of economics and host of economic update is coming to us from new york richard thank you so much for joining us today and i want to get right to it now we know you're no mind reader here but what do you make of president trump's comet that we have reached a breakthrough and they will be citing a deal very shortly now we know he likes to say things but is this just more bluster from the u.s. president in hopes of pumping up markets or do we do you actually think there's a deal in the offing here. i think it's
a little bit of both i think what has happened is that mr trump has discovered 2 important things after 2 years of china bashing number one you can impose tariffs the chinese will come right back with their own and in the end it will cost you politically particularly with farmers who lost markets in china that they rely on he's learned mr trump that is that it's going to cost him politically to keep playing this game number one number 2 he's discovered that if he thought that any of this could shake or change the way the chinese economy and society work he's been taught a lesson that he doesn't have the power if he ever did or nor does the united states to do that anymore so the real question is are you going to continue having a confrontational relationship costing you politically and not achieving its goals or are you going to do as the chinese have said over and over again come to some
sort of partnership work things out as competing countries can do if they. both want to i think you are seeing the shift from the confrontational theatrical bluster to the much more realistic recognition of what isn't is not possible. and i wanted to shift gears to china on this note because they're working to lower import tariffs for all trading partners what's the point of what they're doing here is a kind of to your point which is that they will come to the table and make a deal no say hey you know we want to make a deal with the u.s. but we're going to make really broad sweeping changes for everybody so we can be the strongest trade partner in the world. it's exactly your last point that the chinese are confident they've been growing quickly they have a bigger footprint in the world economy than they ever had and that anyone imagine they have they want to trade with the rest of the world they need the goods from
the rest of the world to come in for their own people consumer goods capital goods yeah they didn't want any of this this was all the initiative this tit for tat tariff from the united states and particularly from mr trump and the republicans they're happy to see a goal and they're demonstrating to the rest of the world we are not protectionist we are in favor of free trade i mean they have come out of this confrontation with mr trump extraordinarily more powerful and more respected in the world would be an honest appraisal of the united states as policy in the last 2 or 3 years would say other than getting the applause from your political base nothing good came out of that the of this lots of harm was done you ought to change when you have that kind of a balance well i don't want to i don't disagree too much because i respect you greatly but when nothing good came out of this in the u.s. i will say this markets have had incredible gains this year and the s. and p.
500 has jumped nearly 30 percent this year alone now these are the biggest gains we've seen since 1980 and we can't forget that we are also very concerned about the possibility of a global recession what's propping up these markets right now if it's not all this straight talk from trump. well i think the bait the basic thing is the tax cut if you want to give mr trump some credit give him credit with the republicans for this dramatic tax cut on corporations and the richest folks amongst us in december of 2017 it meant that last year 2018 and this year you have given to the richest folks in this country on enormous boost which they used to go into the stock market to produce the very record that you're talking about they did not take their tax savings and increase production what they did do is move it into the stock market which for people who have stocks is of course very good news the real
question is what will the longer term results be when your basic economy is bumbling along not a well but the stock market is achieving records we've not seen that this way before and the big question is where will that take us i mean it seems like people i mean to your point and this is quickly you could agree or disagree but it seems like like you say is that everybody is just trying to squeeze as much out of the market as they can right now and then when it starts to fall they'll get out right away and then schmucks with a for a one k. they're the ones who are going to lose. absolutely we've seen this before this is like the bubble leading up to the dot com break in 2000 again the real estate and low interest bubble leading up to the collapse in 2008 we have more debt than we've ever seen before and this is a scary time and before you count your chickens let's see where the next 12 months takes us because the side of danger is very much in play professor richard wolfe
thank you so much for joining us host of the economic update always appreciate it. thank you. russian foreign minister sergei lavrov said sunday that a pipeline said to transport natural gas between russia and germany will continue as planned despite sanctions from the united states said the north stream to pipeline quote will come true anyway despite all these threats and quote adding i am confident that europeans understand their commercial interests 2nd their interests in terms of ensuring long term energy security 3rd of course they have been humiliated now president trump signed a defense bill on friday that included the sanctions against companies involved in constructing the $11000000000.00 project and meanwhile in germany has been critical of the sanctions as they attempt to move away from their reliance on coal and nuclear power german foreign minister heiko mosse weighed in on the situation on friday saying this. we are in discussion with american colleagues at all levels and
i am under no illusion that it will still be produced by the war. and it will also be a question of how they are now being implemented the time sequences will also play a new visa and we will continue because it's. time now for a quick break but hang here because when we return is popping after the recent news that the u.s. government will back the company and its quite a fight party correspondent joins the show from toronto to help us take a look at the big picture of the as we go to break here the numbers at the close.
is this is a sticker from a water bottle found in the stomach of a fish the brand is part of the coca-cola company which sells millions of bottles of soda every day the idea was that let's tell consumers there are the bad ones there the litter bugs are throwing this away industry should be blamed for all this waste the company has long promised to reuse the plastic. special projects funding me. on the new best. but for now the mountains of waste only grow higher.
i. i i. i. i. bear i had a good day on the stock market shares shot up. today this after the us government recommended a reversal to a court verdict against the company's weed killer joining us now to discuss the war we are joined by our tease alex mo heil a bitch from toronto alex thank you so much for joining us now bear has shown its best performance on the market in 14 months corteen what can you tell us about that
. that we see 3.5 percent pop up in their stock with wall street as well as a rise on the frankfurt exchange and we're sitting around 74 year olds which is the book $82.00 just over 6 to be exact and so you can see that in stocks going up by you might ask yourself why well it's because the e.p.a. and the justice department both the u.s. government agencies want a a justice department so from a little lower department $81.00 of the verdict overturned so basically what happened and i'm sure that you remember this case a california man was awarded $25000000000.00 because he sued bear or monsanto at the time monsanto is the company that bear bought and they are the company that sells roundup which is made of glyphosate that's the chemical that's a herbicide that many are blaming on cancer he says he got cancer from it so he was awarded $25000000.00 well now the government saying they recommend that this is
over turned round up but what we're talking about this is use the united states especially it's the biggest herbicide in the u.s. and it's also life is a is found all around the world. according to a university of washington study using right up org life is that i should say itself can increase the rates of cancer by 41 percent the world health organization has identified life in state as a probable cause city as well now come to the other side here when we're talking about the e.p.a. and justice party will they say now it's not necessarily like that the u.s. government said a friend of the court brief that glyphosate is not a personage and that's the stance that the e.p.a. and the justice department is taking now buyer who bought monsanto the maker of roundup itself of course they deny these accusations that the product has any association with cancer the product which was introduced in 1974 has made billions for the company and as for months we know that they've had a very cozy relationship with the u.s.
. so it looks like that relationship might be paying off at this point and alex what does this mean for bear and its use of the active ingredient. well life will see itself it look there this is not the only case out there so we don't know what's going to happen here with this recommendation but there's literally billions of dollars in lawsuits against bear and monsanto underling a bear in the u.s. alone so as you can imagine this could still blow up in their faces and that said you know even with this u.s. do recommendation traders seem to be focused on the profit but look life of sadism everything for beer to wine to eggs to breast milk they've even found it children so it's everywhere you know it just comes down to what the u.s. government's going to say now it's science right what signs are they going to pick and which direction they're going to move if they're going to fed bear well we might see a lot of this at this recommendation might turn into a reality correspondent alex mohalla bitch thank you so much for your actual
reporting today. thank you. and i kind of originated the last time we had a financial crisis so it's actually really interesting that now we're kind of in this middle ground where we could potentially be on the brink of another recession and now we see the rise of capital as a hedge against that's precisely and i think that's an important aspect of this because you can really test i think of your world view by its ability to predict the future right so you have an idea and then if years later that idea is actually manifested in reality you are world view is probably correct so a lot of people have been talking about this exact scenario since 201-020-1120 extension 12 here we are and it's an even more interesting because the toshi nakamoto essentially predicted this outcome he said those leavers of
macroeconomic control that central banks in. weakening gone almost i continue to believe that the japanese pseudonym used was to have the kind of authority to say to america and everywhere else that what japan has been living with with negative yielding interest rates and all that stuff and large debts was actually going to be the experience for everyone in the world so the last decade of japan in the ninety's has become the common experience of all these other large trading nations so you mentioned that your previous background before you got into have to you're actually in the legal space and you were studying the effects of the last financial crisis in the mountain and you have so give us your perspective on that and life where do you see kept up fitting into well that's just it i mean when we when we studied that we saw let's say v ability to. determine the outcome for our a great many people from the top down important policy decisions were made and it really shift this way back to when the federal reserve started in 2912 the context
then was is this an appropriate powered for governments to have anyway because of course before that we were all in private issuance of money so individual states would release their own currencies companies and banks would release their own currencies there were reasons why this was no good there were reasons back then and there was a huge fight about whether the united states creates its own you know sovereign issuance of money so where we are at now is kind of the you know going back to what it was like the monopoly of sovereign issuance of money is clearly over private issuance of money is here again now we are experiencing the troubles of profit if you issuance of money a lot of volatility but that's kind of normal for right now i don't think anyone really dislikes the volatility of bitcoin it's quite fun so you know we're still not on the main stage of the global financial discussion but we're in the wings or in the way it's interesting because history always repeats itself and now we are
seeing that money. it's becoming more privatized again however the problem is that the u.s. dollar while it's not really backed by it's backed by military might well you're right so how will private issuance and let's not just military might i mean when they when they took over this sort of global reserve currency aspect they were important considerations you know there was a sort of run on the us gold reserves people were asking for their gold back in the early 1970 s. and so nixon you know flip the switch and we grew into the world we're in today of course america it's not just the guns and the military i mean they created a network around the world where everyone could trade you know the all trade routes were secure and that came at a great cost right it was really just so that everyone could live well and so this was paid. so you know the u.s. dollar was able to exist in this because everyone kept their balance sheet it was the reference of the entire economy is that appropriate i don't know i don't think
so but let's take our time now and you know i don't imagine the u.s. dollar is going anywhere it serves a great purpose it is by far the most important currency in the world today but you know there is an aspect of you know you can't just assume that continues forever things could change quite quickly but right now it remains the best place to do business that's for sure but take a look at china you know there are negatives on the most famous deal on earth right the hong kong deal is the most famous deal on earth and they're just going to say no are people going to want to deal with that country you know that the origins of new york city for example new amsterdam in the beginning was really you know if you have money we can deal with you that was unique in the world at the time everyone still had religious prejudices and protestant and catholic and new york was different from the start new york was you want to come into business were great and that's really where the american business mindset grew from and i think that you know should continue to perpetuate around the world it should continue but as we
were just saying previously. they were pretty much at the forefront of business and finance and this new way of doing things however now they seem to be almost clamping down a little bit we're just saying how stupid the bit license was in new york and when you have all idea it is correct so it looks like they're actually taking a step back i don't know what step back i think they haven't learned a little bit like when you when you have the sort of top down approach that i was mentioning when when the bailout happened they were making decisions for all kinds of people right they were they were they were determining basically real estate prices 10 years out right you know the the cantillon effect it's called right for the continue effect so we're definitely living the cantillon effect because of the compelling effect basically being if you issue all this cheap money a large portion the population the burra we just assume that consumption because everyone's so you know building houses all the construction workers are now more money to consume but now we're in the sort of 2nd stage of that where you feel the pain of the and everything has been artificially low everything and i don't
understand why do you need us need to continue stimulus to continue to increase consumption and we love that given this backdrop in the u.s. as well as so as a continuous regulations that don't seem to make much sense do you see the u.s. continuing its dominance in terms of the world i don't know if it ever is a national consideration i don't believe national considerations are an important aspect of the development of crypto currency so i think american people will continue to be heavily involved in it but certainly new york is missing an opportunity all that said i do live in new york and a lot of the greatest talent in the industry is there i know several of my american colleagues do believe new york is a backwater for crypto i disagree on that i do wish we had a much more welcoming environment and maybe they'll learn a hard lesson there but for now new york does remain intellectually and human capital wise an important place no one is a pleasure to hear because i confess specially given the global macro backdrop here
. pleasure thank you for making time. chair and that's it for this time you can catch boom bust on direct t.v. channel 321 dish network channel 280 or streaming 247 on pluto t.v. the free t.v.'s child 279 or as always you can hit us up at youtube dot com slash boom bust r.t. so you next time. you are there soulard to the room lot of them sound. my name is drawn more than i was for this to die in prison by the inspiration love my life. case to grab some media attention i mean it's a shooting in
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