you know dollars are you filling in for the free and you're watching boom box broadcasting around the world right here in washington d.c. coming up retail revival americans in a shopping mood is retail sales get a boost from cheap cars and amazon's prime day a decade of disaster it's been ten years since the start of the global financial crash economist steve king joins us with his thoughts on whether we learn from our mistakes and job hunt hackers scams targeting job seekers are on the rise as more companies turn to the web to hire employees standby buba starts right now. americans took their biggest shopping spree of the year last month retail sales jumped point six percent in july up from a quarter of

a percent in june is the indicators best month since december well with consumer spending accounting for about seventy percent of economic activity it's a good sign of overall economic growth after a lackluster second quarter so what drove the jump well it's a great time to buy cars and that's what americans did motor vehicle sales climbed one point two percent in july overall auto sales have been pretty sluggish this year so dealers are slashing prices to attract buyers and unload huge inventories the price of cars were courted its biggest drop in nearly eight years last month as a trend car prices have dropped six straight months but what else contributed to the rise in shopping amazon's prime day promotion in july online retailers cashed in with sales climbing one point three percent not everyone's a winner though electronics and appliance stores slipped point five percent and clothing store sales fell point two percent. while china. it has been on

a tear this year but in july showed signs of a slowdown the world's second largest economy missed the mark in several areas including industrial output investment retail and trade the cost of lending went up and the property market which has been seemingly unstoppable showed its first sign of cooling down china's strong first half of the year has been a major factor in global growth as a whole china's economy grew six point nine percent through june surprising most analysts but the fading momentum does not have people pulling the alarm just yet china is expected to be on target for six point five percent growth for the entire year and even though we're seeing cracks in some of the momentum it isn't expected to come crashing down plus while most industries slowed in july one hit a record high china steel output hit a monthly record in july at seventy four million tonnes up ten point three percent from a year ago this breaks the previous monthly record of seventy three point two million

which was just in june the rise is defying the expected slowdown with china's war on smaug steel mills are surviving it by complying with stricter environmental standards. it's hard to believe but it's been ten years since the beginning of the global financial crisis last week marked the decade anniversary of when france's biggest bank. froze two point two billion dollars worth of funds citing us subprime mortgage instability this articles from two thousand and seven so ten years later how we learned from the mistakes that taints the global economy and is the global economy back on track joining me to discuss from london is economist steve kean author of can we avoid another financial crisis steve thanks for being here i wanted to first get your take ten years on what's your take on the health of the global economy today. basically if you

can imagine the financial process like being attacked was on bees then that would still in the side of the walking dead we haven't got rid of the fundamental cause it hasn't even been identified of course by the people supposedly in charge of the global economy so i was still carrying the legacy much in the same way that japan has carriage of its financial crosses from nadi right through for a quarter of a century what signs did you see leading up to the crash that most of the mainstream economists either missed or ignored. a very good question i look at the level of private debt and how fast it's growing and the two factors are completely ignored by the mainstream because they treat debt as simply a transfer from one person to another so one person spending increases the other doesn't and the other falls it's like a see saw the so you saw remains at the same hard according to their full model of banking and because i've always been a critic of that model i regard the level of debt as indicator of pressure on the

economy and the level of credit is a source of demand which can turn negative if people go from borrowing money to paying down which is precisely what i saw starting first of all to much credit driving to much demand from not in ninety three through two thousand and seven and then from two thousand and seven i could see that the level of debt was going to fold dramatically which it did it went from being plus fifteen percent of g.d.p. and i'm on a six percent from two thousand and eight to two thousand and ten that was completely ignored by the mainstream that's why they didn't see it coming and they're still not even looking at it one one decade after the crosses that could rise so see if i want to look at it right now because in the united states we're seeing some of the highest levels of private debt in the u.s. since the great depression what do you think it'll take us to fully recover because this is a chart that you gave us and it looks like it's starting to rise back up from the highest peak at the great recession. it is rising again but of course

a bit like white one which you climb mount everest and you go back down to the base camp below the summit you've only got the summit to climb back up to again and in many ways because that is the hospital of profit at that america as if it carried certainly concious getting much process one hundred seventy percent level that means whatever credit demand the economy has right now will at some point in the next couple of years reach zero and possibly go negative once more and this is the situation japan has been in for a quarter of a century of having a bit of a revolver with a bit of growth in credit but still having far too high level of profit that they haven't they believe it sufficiently america's not caught in the same situation and i expect it to repeat the same pattern until something is lost threatening as the second world war comes along and generates the level of government spending that's necessary to reduce the level of profit well let's take this opportunity then to look at the global scale of private debt because china is line is on

a steep incline as long with a couple of other countries but i think that china shows like the highest res right there you can see at the very top japan has been chaotic from like you said there crisis from decades ago to the levels that we see on a global scale were you. yes america or indeed the u.k. and europe are all. most of them are in the post crosses period so they've got a high level of debt which they the the rising very slowly are actually falling about the countries like china south korea canada australia and belgium over then i thought of that shot and a number of others have got the levels of private debt and more profit and i had back when the global financial cross hit a decade ago so they're going to also. slow down in credit growth and then finally negative credit and when that happens they'll have their own many financial crises i won't be on the same skyll as the american because none of them are anything like

a scale of the size of the economy that china of course is very large so when that hits the rest of the world in a flow on effect so we are going to see another cross this spread across a large number of countries over the next one to three years well you said yourself that the biggest indicator for you was this measure of private debt and that it was something that mainstream economists missed how those economists learn from their mistakes are they starting to take a look at this like you are. not. it is it is it's it's is the likelihood that look at this issue is that somebody who's believe in jesus christ is god will read the text of buddha. completely divorced from that was thinking just stiglitz for example is one of the most progressive mainstream economists and somebody i've met in quite like had a lengthy presentation he gave a couple few weeks ago not one slide of about thirty five was devoted to the level of debt or the level of credit they are still completely blind to this cause

because it simply doesn't fit their intellectual framework is there something that the governments and the financial industries could do to prevent it from happening again even if the economists aren't seeing the signs yeah yeah yeah there you go that's one reason i've talked about the level of government spending as well politicians are obsessed about treating the government like a household and thinking it should so i have more than it spends in the aggregate that's impossible because people on the one person spend he becomes somebody else's income in the aggregate expenditure is income so if the government the sauce to cut spending and run a surplus that actually makes a situation would reduce income for everybody so what the government should do now because it's not constrained by the lack of money the government can actually created sun money government spending could be used to effectively help reduce the level of private debt and that's what we did indirectly through the second world war strangely in terms of its economic impact the main economic impact of the second world war was to drastically reduce the level of private debt because so

much government money was devoted to fighting the nazis and fighting the judge a japanese that the private sector could do with little else but its level of debt down so we began the day the post-war period with the lowest level of profit in america's for over almost a century and that gave a tremendous impetus to the economy it wasn't that constrained and in fact credit growth could do could stimulate demand and stimulate innovation as well we need to get back to that situation so the government. do it but again given it's being advised by management columnists i don't expect them to do it steve keen economic economist and author of can we avoid another financial crisis thank you so much for your time. industry has been hit by disrupters left and right from innovative delivery companies like seamless to on demand recipe kids like blue apron but the disruption

does not end there while the service sector has had to adjust so will grocery stores. joining us to talk more about this one so beyond that there's this german based supermarket that's preparing for a huge expansion here in the united states are there concerns about the type of competition it could face yeah so we're talking about all the it's just announced that it's adding a delivery service to its business so it's a threat to other u.s. based grocery chains chains that don't offer that sort of service but it's also being seen as a threat to amazon which has just taken up a pretty sizable chunk of the u.s. food industry and wants to continue that expansion the germany based all the supermarket chain has thousands of stores worldwide in the u.s. the company operates almost two thousand of them and is planning an even bigger expansion and on monday all the announced a new deal with a san francisco based instant cart to deliver groceries in a handful of cities across america the partnership was detailed in a press release which said the new service will be first available in los angeles

atlanta and dallas all the c.e.o. jason hart said our partnership with insta card is another example of all the expanding our commitment to customer convenience and value we know customers who are looking for new ways to save time and money in stroke or provide easy access to low prices at the click of a button the news comes just a couple of months after the company announced it would open five hundred new stores in the u.s. for the next five years. according to your own monitor it's already the eleventh biggest supermarket chain in the u.s. based on sales because of how quickly it's growing altie is frequently compared to amazon which has unique grocery ambitions of its own in june amazon purchased whole foods for thirteen point seven billion dollars that's on top of running its own food delivery service amazon fresh so the competition to make a mark in the trillion dollar u.s. boot industry is clearly heating up and the companies fighting for the top spot are focusing on internet and mobile app based services for

a reason the internet of things is slowly taking over the kitchen you can buy smart refrigerator's that tell you when you're running low on milk or what to cook based on the groceries you have the net and next month a wireless camera that monitors use by dates will be available in the hopes of eliminating food waste so it's no wonder why it's becoming easier to sync our grocery lists with our smartphones and other devices. something i would love i think because it's such a chore going to the grocery store oh yeah i'm so sorry and let's talk about this refrigerator camera though how does that work so it's called smarter fridge cam it's only going to be available in the u.k. at first but it takes pictures of the food that you have in your fridge and specifically looks after the use by date so if your eggs your milk are going to expire in two days it will send a picture to your phone to notify you that you only have two days left until it goes bad and also will send recipes that you can make with those specific

foods so you were so you don't just go in and throw your food out it's really trying to eliminate food waste because in the u.k. families on average waste about seven hundred euros a year worth of food so it's a way that can it's a way to eliminate food waste without encouraging families to spend thousands of dollars on a smart refrigerator they can instead purchase this small device that they can put in their normal for it and still try to cut down on food waste and i imagine we'll be seeing devices like this pop up all over the market yeah i mean and many ways he already have it's not the first smart device that is available for us to use in our homes but people are becoming a little more cautious before they purchase this technology into their and bring it into their homes knowing how much they can be at risk to hackers you know if you have a smart air conditioning system your heating system or even because your security system people know that once they put their information out there they're more susceptible to crime so people are taking you know it's not happening as quickly as

we thought once it became available if she thinks so much. all right it's time now for a quick break stick around when we return thousands of gallons of illicit alcohol is seized from mexican resorts and bitcoin is blowing away all expectation will its rise to more mainstream attention as one of the numbers at the closing bell. seemed wrong. just don't hold. me to get to shape out these days to come out today and in. equals betrayal.

when so many find themselves worlds apart if we choose to look for common ground. we all willingly accepted the risk of being shot wounded taken prisoner but millions. poisoned by our own people that was leaked or biological and chemical products do not truck tires. styrofoam polystyrene batteries trucks there was a complete denial i think at all levels of government that there was any connection between. and what these brave soldiers were suffering from to compensate every soldier marine airman and sailor that was on the ground that are complaining about illnesses from their exposure from the berm pits literally sand to be a growth they don't want to pay it so the way to decades

a lot of those soldiers. and they won't. get the middle finger the movie is to. delayed. tourists beware in recent days mexican authorities swept through thirty one resorts restaurants and nightclubs seizing ten thousand gallons of tainted alcohol in january a twenty year old wisconsin woman died after being found unconscious in a pool while on vacation with her family her brother also suffered from alcohol poisoning even though the two had only been drinking a couple of hours other vacationers reported blacking out and getting assaulted after drinking small amounts of alcohol at the resort as a result authorities searched tourist hot spots in cannes coon and playa del carmen and in the process uncovered

a sketchy manufacturer those providing alcohol to these attractions that's when they seize ten thousand gallons of illicit alcohol from the company and temporarily shut down two establishment. that tuesday in cannes coon and a star but i saw my in playa del carmen where the woman who died was poisoned the alcohol taken from the bar was expired unlabeled and kept an unclean conditions according to the milwaukee journal sentinel which uncovered the case according to your own monitor international up to thirty six percent of alcohol consumed in mexico is illegal mexico's health authority has seized more than one point four million gallons of adulterated alcohol since two thousand and ten yet the u.s. state department had not worn travelers about alcohol risks in mexico until the journal sentinel's investigation. and now a warning for job seekers as employers shift to entirely digital job applications the risk of scams targeting job seekers goes up hackers attempt to hook tens of thousands of people each year through job scams according to the federal trade

commission and young people are a frequent target the most susceptible being under thirty four years old think about it you put incredibly sensitive information on job applications and acceptance forms from your social security number to your bank information for direct deposit not only that but hackers can deliver a fake job applications containing malware or ask you to download files for the application process gaining access to either your personal computer or a corporate network if you're job hunting at your current job in two thousand and fifteen the cyber security research firm dell secure works uncovered a network of dozens of fake linked in profiles created by hackers in iran to pose as employment recruiters begin taking years to investigate job scams so be aware when you're looking to make a move. if you've been tuning in to us this week you know bit coy is continuing to break

records and all expectations tuesday bitcoin reached new heights at nearly forty five hundred dollars which put its market cap as as high. seventy three point five billion dollars that's right below market cap of major companies like adobe and netflix of course it's not a stock but it seems to be a darn good investment let's talk about the rally drive with reggie middleton entrepreneur and founder of vera toss the reggie every bump bitcoin hits it just bounces up to higher levels what do you think is causing such a rise in it's price. adoption the more attention it gets in the media the more people find out about it and the more people find out about it the more applying pressure it gets the more mainstream it becomes and that's what i see in because you also have outside of mainstream adoption you have significant interests from institutions who want to be exposed to guess at this because the has a very low correlation to of the major asset classes and that means that it doesn't

move like stocks and bonds do that's a very big plus for situations because when you have a portfolio and it all moves in one direction it's very risky if. you have a bunch of stocks and only stocks your portfolio and it's a down day you don't get bonuses for one quarter and moves in different directions . it decreases the risk you know without necessarily decreasing the potential reward is a matter of that and a risk adjusted basis when you fly them is because downside movement and digital assets in general the best performing and the history of the world that. is so it's incredible and it's incredible to see it continue to break these records and it's not just breaking records on prices we're also seeing it just grow in general we had the split the bitcoin split earlier this month that led to the birth of a quick cash that's also doing pretty well it's reached more than three hundred dollars

as of monday what is big cash success mean for crypto currencies as we look into the future and look into expansion. you can. call it a success as of yet it was a fork and you may just have an alternative. to because i may do well those who helped because i actually had the big cash tokens so they got three hundred pro token as a bonus as a freebie. as part of the investment in holding at jewel because. cash should do should educate those who are new to the market yes it is in general. terms of tokens or you have pick one which was the main one number one from two thousand and it's very popular and very very high return both the return and this could just it but because it is just the tip of the iceberg what you also have other tokens that do a lot of things that. you have because you have. a dash for digital

cash which basically solves most of the shortcomings that because you have a serial which is a program much more programmable platform and you have other tokens i'll copy has its own token called very tasty veritas which is a pita pure of h. as for these tokens that token replicates goldman sachs morgan stanley etc in terms of investment that you functions at roughly one fifteenth the cost of that much these tokens all have platforms that they rest on or have particular uses and many of them the ability ability. by a very very large amount but because it has the lion's share of media attention it's interesting to see what happens as the media learns about. what is available and what is possible then you'll see real investment you'll see real returns if you

missed the boat because took away from twenty cents to four thousand you may just see the tip of the iceberg because so even though it's hit record highs i mean usually when that happens with anything the price tends to readjust so you don't think that point going down. it will go down just like it went up going down going up you know it's the scheme of things and looking up because i'll give you a quick listen ok the. primary factor is the varying digital less it you have utility value basically how much like this gas this gas has utility value with that holds a liquid. actual physical demonstration i like a lot of people a lot of i am of this look at pick corn as a platform and there's a big leap to understand it but even if they understand it from a technical perspective they're trying to using gap generally accepted accounting principles and they look at just utility value they don't understand that there's

another variable called network effect on the network value that also contributed to quantified price so if you sell one game let's take another look tronic i don't like grand theft auto. grand theft auto copy for fifty dollars you make fifty thousand revenue the person who buys it is happy plays a game by himself he's happy two copies you make one hundred dollars and two people play by themselves or play with each other through a network so you meet more in terms of value than one hundred dollars you make more like a hundred dollars and fifteen cents you so four hundred thousand copies and now you have a whole community that can play with each other and you get more than four hundred thousand fifty because the network effect allows for an entirely new product to be formed once you sell a couple in the end the network effect greatly outstrips the utility value of those sales by a lot if you look at minecraft which is another software product very much like on the platform minecraft has so now only given away not only the software units

but they could create their own currency within it their own tools their rejects that of bought and sold and there's an entire community pool to put on it that is the power of the network effect interesting i'm so looking forward to just seeing where bitcoin goes and we're. really seeing if it tends to lean even more mainstream you're saying that you know the media attention is helping it rise we'll see if other people keep talking about it so regimental tent entrepreneur and founder of c.m. thank you so much for your time today you're very welcome. well if you love it you put a ring on it and well worth thinking about if you really love it probably don't get a knock off while costco got a little too fancy for itself and now it's being forced to pay up a judge is ordering the wholesale warehouse to pay more than nineteen million dollars to the world fame new york city jeweler company tiffany's turns out they had been selling diamond rings using store signs that said tiffany needless to say

tiffany and company got in a tiff with costco over it and it went all the way to court costs as management argued that the use of tiffany was just talking about the rings setting and saying that it was as generic as saying popsicle or dumpster well the judge was not convinced saying costco's evidence was insufficient to establish the company's use of the tiffany name was not intentionally deceptive marketing ploy and yes some costco customers were outraged when learning the diamond ring at a steep discount was not in fact from the famous jeweler buyer beware that will do it for us for now and check out the show on you tube youtube dot com slash boom bust r.t. thanks for watching tomorrow. this

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