filling in for lindsay if you're watching boom bust broadcasting around the world right here in washington d.c. coming up on the show we're how's it changes in china don't have a very bright future ahead i sit down with the former u.s. trading commissioner to discuss what it could all mean. and natural disasters could the impact of hurricanes harvey and irma offer a positive turnaround one guess will tell us what she thinks and where did it go a new report shows just how much money can tara has blown through its diplomatic row what that's called neighbors stand by and let starts right now.

the possibility of a crypto currency trading ban in china keeps getting closer to reality on thursday china which is the country's largest exchange announced it was forced to suspend operations it also said that it will officially shut down by september thirtieth is caused it going to fall nearly eleven percent and the price is now hovering around thirty five hundred dollars far below its all time high of around five thousand dollars and this comes just about a week after trying to ban initial coin offerings the government accused. of being scams and pyramid schemes and the central bank said anyone who raised money through them should pay it back because of strict capital controls in china crypto currency has become very popular among investors in fact the country currently accounts for

nearly ninety percent of all big when trading on exchanges now there has been more talk than usual about digital currency is. that coin loses twenty seven billion dollars in market value and j.p. morgan c.e.o. says because it is a fraud that won't and well. a former u.s. financial regulator who years ago was the first to speak out about the appropriate role of digital currency as joins us now bart chilton thanks for being with here being here with me today part as a pronouncement regulator you were out there early and often as the first u.s. government official to talk public publicly about digital currency is and in two thousand and thirteen in called bitcoin a shadow currency that c f t c should regulate so clearly you have some strong feelings about digital currency as to what are your thoughts on the chinese decision to band trading on these digital currency exchanges. hey bianco well i think it was you know it's to some extent in evitable that this was going to happen

to some place i'm a little surprised that it took place in china because of what you just reported about the large number of investors over there but that may be exactly why they ended up doing it so what i've been saying for years is that digital currencies have a place in our modern financial society and system but they need to be appropriately regulated not overzealous regulation and if they didn't if the enthusiasm for bitcoin and other digital currencies didn't embrace some sort of regulation that you would see overzealous regulation and they would do things like the chinese have done both with the i c o o's banning the official coin offerings and what they did in the last twenty four hours with regard to stopping exchange trading of digital currencies so you know it was something that i sort of predicted not necessarily in china and you know we'll

see what happens going forward beyond go one other digital currency news j.p. morgan chase. c.e.o. jamie diamond said that that quote was a fraud that people are wasting their time with he also argued that there will never be a currency that gets around government control period so in your opinion having served as a financial regulator for years will lawmakers and regulators allow these digital currencies to be loose or will they be shut down. well it really depends upon what happens they will be regulated for sure i mean one hundred percent they're going to be regulators regulators aren't going away they're not taken out hey this the question is can the bitcoin enthusiastic come up with some sort of structure themselves which i've been arguing for all these years perhaps and working in tandem naish in tandem with groups like the international organization of securities commissions i os go come up with some principled protocols or on the

trading side with the world federation of exchanges coming up with some basic rules of the road that can provide some consumer protections but if they don't do that if the bitcoin enthuses don't get together with those sorts of folks and come up with these basic protocols then when some bad thing happens like we were called mt gox in japan where they lost four hundred seventy five million dollars initially several years ago if something bad happens then the regulators bianca will come in or lawmakers and over regulate and i'm also concerned about that the over regulation but there's a real kneejerk reaction when constituents when citizens are damage so i think it's a fine balance but so far it's not the been achieved i don't think anybody's got it right quite yet or despite the success of the sound digital currency as they still have not been adopted day to day so why do you think that is do you believe that some people are just scared of the whole concept. well that's some of it i mean you

think about it think about digitizing recording and transferring data whether or not it's music or movies or computers or. other things that mean money is the next logical thing to be digitized and it will happen and i think it will be of great value the question is how fast does that happen and does it happen in an appropriate way with meaningful consumer protections and so far like i said that nobody seems to have gotten it right and i think that's going to china is a great example of that slowing things down so i don't agree with mr diamond that bitcoins a fraud it's not based upon much it's based upon you know the error i guess is not based upon much and i do think it's not just you know a risk for people but somewhat of a of a raffle but people are adults they know they could lose their money and if they

have that disposable income that they could go poof that's fine but i do think there's just this trepidation and reluctance to embrace digital anything like there was with you know moving from floppy disk other types of computing technologies of moving from tapes and tracks and to just c.d.'s and and now digitized stuff so it'll happen it just a matter of when and how well what about some of the other issues that are holding digital currency back and then are these things that can be remedied or will they can we not do anything to fix them. well there are some key thing so all the banking regulators deal with these two things that people always call them by their acronyms but it's k y c which is know your customer so that's one and know your customer means i know that it's beyond me and she's the one that's trading here and it's not some pseudonym and the second thing is the money laundering am l.

and banks all have to deal with this to ensure that people are purchasing illicit drugs or involved in human trafficking or weapons or from a government perspective of voiding paying taxes governments care about that a lot so when the bitcoin enthusiasm and others try to come up with some structure they're going to have to figure out those two things the and i money laundering and the know your customers in order to have just a modicum of regulatory scrutiny those are the things they really need to work on going forward what about the trading value is that what's behind these digital currencies being in retreat as that public skepticism from people like jamie diamond or is that china or is there simply a bit when bubble. well i mean it's hard to say i mean we've seen you know just bitcoin in the last you know a few few days and even the last twenty four hours i mean it started at about five

thousand dollars the beginning of this this month one bitcoin but even yesterday you know i think it went from like thirty five hundred down to three thousand went up to somebody i think propped it up which as a regulator when i was back at my old agency i would have been calling the enforcement people on this it went from three thousand to thirty eight hundred and i think that was somebody trying to prop it up in light of the news about china bianca so that stuff shouldn't happen i mean that's a rock n roll roller coaster that i wouldn't want to be on and as you reported it was down to about thirty five hundred so there is there is i think some sort of bubble but we'll get through it digital currencies are going to exist they just need to be configured a little bit differently ok part shelton former u.s. trading commissioner thanks so much for your time today thanks. well puerto rico is burdened with more than one hundred twenty three billion

dollars worth of bond debt and unfunded pension obligations it's now been hit by hurricane irma and on top of that the devastation of hurricane harvey in texas temporarily wiped out more than a fifth of the u.s. refining capacity but our next guest says the aftermath could turn our economy around boom bust host lindsey france sat down with danielle de martino booth president of money strong and author of fed up an insider's take on why the federal reserve is bad for america and asked her how the hurricanes could provide economic benefits here's what she had to say. well it has to do with the specific damage that's been done because of hurricane harvey we had the auto sector enter recession we saw the first spike in construction worker layoffs in august as commercial real estate volumes have collapsed over the past year. we've seen the residential housing market begin to turn because home prices have gotten to be so high that we

saw not not just a disappointment in the new but also the existing home sales report pending home sales are in the toilet it's just not been a pretty picture in a lot of sectors of the economy that will by the way directly benefit from the aftermath of hurricane harvey well let me i want to refer to a very interesting piece you just wrote it's entitled houston we have a solution so what is that solution. well i think that it's a matter of i'll share one story with you friend of mine apartment developer one of the particular units that he that he happens to have developed four hundred units two hundred were destroyed by floodwaters he bussed in one hundred forty construction workers from florida the fifth day after harvey had hit it was still raining and a whole batch of construction workers hit houston and started tearing out the sheet rock pulling up the floors repairing these units that's one one story one story and

one story alone houston prior to harvey had an oversupply issue when it came to apartments that's vanished overnight all of that excess inventories been absorbed by homeowners as they move into apartments while they start to repair their homes there's also been a hotel issue in the houston market since of oil prices collapsed houston had the distinction not a good distinction of having the most distressed hotel mortgage loans in the in the country that's gone to. well of course there's price gouging going on with those hotels but that's got to be controlled whole nother story but i see what you're saying there. i'm just saying accounting had an oversupply issue in a lot of renos and that that's been eradicated overnight to say nothing of the fact that there were too many cars and united states and used car prices were falling that's true you know what's interesting here is that back during hurricane katrina we saw that devastating catastrophe

a lot of people didn't have flood insurance because they were on that one hundred year flood plain classification the government makes a lot of people here weren't catastrophic flood insurance is expensive how can we expect people just in layman's terms i'm just wanting your opinion on this how can we expect people to be able to foot the bill for the type of construction that needs to happen in these neighborhoods i mean it's as to made a two thousand dollars for every inch of damage done in your house well lindsay look this is going to mitigate not eliminate the odds of a recession barreling down on the u.s. economy you are absolutely correct fifty percent of homeowners who are affected by katrina have got flood insurance estimates right now that may be upwards of one million one point two million do not have flood insurance who got flooded so there will be a lot of economic long term economic damage that emanates from this storm because a lot of homeowners simply will not have the means as you described to be able to

repair their homes i think that we will see quite a few homes demolished in the coming weeks and months remember it's still summer time in texas very difficult to stop the mold from growing and the devastation from getting worse if this heat doesn't let up right and you know texas what are we facing as we head through christmas into the holidays gets mighty cold up there can they still bills through this and help to raise them that economy well so in the case of texas unless we have an unusual. winter it's much more so the case in dallas where we get ice storms and snow from time to time houston is not as affected come winter time by severe winter weather so the construction workers should be able to keep hammering and nailing all through the christmas season they really should be well thank god for that is these people trying to rebuild things and it's interesting you look at what we need any silver lining we could possibly

get in the wake of these terrible storms that's right and who knows about puerto rico and what it's facing with its huge burden and what we're facing now much of it is rubble people without power we should definitely bring you one soon to talk about that of course the hard part is we can't exactly assess all of the damage but that will be assessed thank you so much for talking with us about this daniel de martino both president of money strong and author fed up an insider's take on why the federal reserve is bad for america thank you thank you time now for a quick break but stick around because when we worked we'll have a report from seoul south korea covering the impact the u.n. sanctions are having on its economy and we'll tell you how much money the torah hasn't burned through as a remains isolated from what's called neighbors. years ago travel to. exploring america's deadly love with. the bad guy

trying to get to my family members he would have better a lot better and i think they are inheriting whatever my my baby says my book was published in the. million americans have been killed by us how do we did this is a middle school we go through drills and we put ourselves some real scenarios it was interesting to see who actually got hit. just to return to the subject to track down. each gun owner who i met and photographed those years ago i don't know that but we are not.

prescribe medication is widespread on the us market and a frequent cause of death at that point in my life i just felt like everything was ashes my family was literally coming unglued i had actually planned. to commit suicide watch all who was my presence commonly used we were doing what the doctors told us to do we were being responsible and what the real. was surely all to what i did was. to move the legal trail. just because. it's been three months since it's called neighbors imposed a blockade and qatar is still struggling financially according to

a report from moody's the country has spent over eleven percent of its reserves or thirty eight point five billion dollars to keep the economy going that's a problem to about twenty three percent of g.d.p. and the problems go beyond cash qatar has also had to rely on food and other imports from turkey and iran compared to last year imports have dropped about forty percent and other sectors like trade tourism and banking have also suffered since the crisis began in june when he said it expects the problem to persist but added that other nations in the gulf cooperation council like bahrain. could suffer from the sanctions to the the crisis also poses problems for the twenty twenty two world cup which is scheduled to be held in qatar however the stadium hasn't been completed yet and prior to the diplomatic row the country was relying on imports from saudi arabia and the united arab emirates to finish constructing it.

last week the eastern economic forum wrapped up talks in russia where leaders from around the world met to discuss investment in trade and transportation we have a piece from anya parm poll who spoke at who got the chance to speak with a member of south korean president moon allegation in seoul. well the east asian economic forum wraps up earlier this week and in light of these high level regional meetings i spoke with a member of president moon diana of south korea's delegation who traveled with him to la de vos talk of russia for these talks i first asked mr hewitt how these unprecedented sanctions passed by the u.n. security council on monday could impact the south korean economy actually is sanctions on north korea doesn't affect korea a new kind of battery being. the reasoning. north salis

trade even before the sanctions and during the ninety's during that two thousand the omanis for example or just the one billion want to build. you think about the korean i mean the republic of korea now trade porto trade to be the wall these one truly are so used to just one billion versus one trillion so it doesn't make a big difference for our economy. maybe. that's saying show i have some various fly indirect. impact on quality at all for example in the secondary sang shown on chinese company where chinese banks. but even in their case goals chinese companies and chinese banks that tabulation meads north korea use earlier is a smaller company smaller bands so you doesn't have

a direct relation on the south korea so that doesn't have a big impact either but one point i'd like to say in that regard is that even these sanctions carbonized the chinese economy chinese beanies seen jaguar and then seen korea as a big business relations with china than made up facts on other. somebody. you know or a trade war between us and china eve that happened that. you recently returned from or you attended the east asia economic forum with president moon's delegation what was your impression of the meetings. were meeting particularly the president the. president the prime minister. president to have the plan that they talked about the reason our cooperation as you

know all the rush. to try and. not just the one goal that everybody's down the door and the corey. president on. the north east asia. but then me they're linking asia to europe so all these contracts have a common goal and then at the planet it's. really how. the future possibility and even the deep prozac proposal was proposed by leaders in the countries coming out of the meeting how vital would you say the relationship south korea has which is russia and china is in terms of economic development in the region. i think.

we have some has already. bought. our government to just for example gas line prozac or. fisheries prozac and then ship it in prozac so i think those kind of prozac is our business. the poor and russian business people had even one. i think. some many. problems that. president seemed eager to restart or give another shot to the sunshine policy which some would include it in joint economic development between the north and south as well as perhaps the reopening of the case on industrial complex. these things that are possible under current circumstances. circumstances i think that i think

phrase you mention these very important of costs that the president has to direction is through with sanctions or whatever they'll find out of glories. in the wrong on. that. is i think it is true because it's on north korea has. nuclear has that misses at the mall months i think countries even. at the moment it's not the pine forests. so at least north korea has. has to make to keep the commitment blog i will present on even at these fires then you comment. on that. or at the core is a fine not

a diet at all saw our. poor let them see it. one way to do he is. our president suggested even a sea change shown it is not appropriate. then. korea and russia being the corporation on projects for example rather the province project forced down after some time the conditions become so right then we turned. north korea join so. you mentioned about the chasm the industrial complex but more i think the neo project might be i think trilateral prozac between korea russia. or i saw the project is the goal of this joint economic development to slowly encourage the north to

transition to a more capitalist system although our i don't want to i think designate an invalid defining death comes i think you have any countries average so side has the whole affair lots of trees are put but one goal really is to let the people i think be call mall prosperous or let them people have or a good believing as to know the north korean leaving condition is very harsh and so you in their sense our glories through this project lead north korean people or make more i think he is sent to lead being i think that is to call on wednesday officials in seoul met to discuss how exactly to implement these sanctions against the north however it's clear sanctions against the north aren't always so simple there is a wide regional repercussion when we see these very extruding economic measures

passed by the united nations and exactly what the impact of simply saying she is against north korea will be on the region remains to be seen in seoul on your part till june but. if you're looking to blow some euros in case italy does away with the currency and you have a love for a limited pasta don't worry because all gardens got your back the restaurant is bringing back the unlimited pasta past fifty lucky customers will be able to challenge down on two months of unlimited pasta for just one hundred dollars if you're lucky you can try and buy a two hundred dollars pasta passport and not only gives you two months of unlimited pasta but also sends you on an eight day trip to italy now it may seem silly getting into a food fight over these passes but they are highly coveted last year one person sold there are limited pasta passed for more than four thousand dollars on e bay. that's all for now be sure to catch us on directv you can find us on channel

three for one and if you miss us under a t.v. you can catch us on you tube. or thanks for watching. it is one of the basic instruments to drive the economy but it could also lead to tragedy i did. just i came and met the. many broken families since. the banks going to. go. through the. people see you know the future face of you know you become ill. breaks down you

become a casualty is. not sure. if you're. going. well nobody thought of. the marshall and. islamic states claims it was behind the month just a terror attack by the militants front so kill the priest every time a terrorist attack happens all these people are out there screaming to go ice is so bad someone needs to do something against them and for me was like yeah why are you doing something. illegal to. kill

a number. of that if you. challenge the little chap with the zero chinese coffee hope you sam guy has got a good plan there's a gun to the u.k. commision and if he shows me believe. leg. length .

london police arrest eighteen year old in connection with friday's bomb blast on the london. bombings they claimed. twenty nine people injured also. in a show of defiance against the spanish government council officials threw their support behind the region's upcoming independence referendum large crowds of people also turned out in support of me is secession. talks in.