business boom bust broadcasting all around the world from washington d.c. and bart chilton. today we talk about jobs and interest rates with the and the economy with danielle de martino booth and we also look at china in the wake of the change the constitution which allows a president to serve unlimited terms and we consider the monumental belt and road initiative in china caleb maupin joins us from new york plus our g. correspondent manilla chan tells us about the infrastructure deficit as it relates to rail and compares high speed rail in the u.s. to others around the globe but first onto some headlines. the trumpet ministration has blocked the hostile takeover of u.s. based chip maker qualcomm by asian rival broadcom over national security concerns the decision by syphilis the committee on foreign investment in the united states determined that the singapore based broadcom could benefit chinese competitors in

the effort to lead the way in next generation mobile technology it could also a limited a key supplier of telecom technology to u.s. defense agencies. and apple incorporated officials have said that they will acquire next issue media l.l.c. and its digital magazine subscription service texture and offer digital magazines and other services including a ten dollar per month digital subscription to magazines like time sports illustrated vanity fair good housekeeping and national geographic the apple purchased reflects the changing landscape of how consumers gather content transforming paper magazines into digital and online last year alphabets google and facebook both accounted for over sixty three percent of u.s. digital spending the purchase of next issue. media is an effort to add to apple

services which already include streaming and mobile payments apple currently takes a fifteen percent cut on subscription services that are purchased through an apple app like netflix and h.b.o. last year apple revenues for services were roughly thirty billion dollars with the next issue acquisition the company hopes to increase that amount by another ten billion dollars by twenty twenty. we've reported in the past about cboe the chicago board up sions exchanges a bala till a t. and x. called the vix or sometimes the fear and x. during the volatile market period in early february there were many who claim that the vix had been manipulated and therefore the products that are based upon the vix were also impacted costing investors millions well now there is a class action lawsuit filed in chicago which alleges widespread manipulation of the vix futures and options markets resulting in hundreds of millions of dollars in

losses for investors across the nation the litigation is the first lawsuit on behalf of investors impacted claiming market manipulation and violations of the cea the commodity exchange act which outlaws market participants from and properly influencing the price of commodity futures and options. multi natural multinational corporations are paying nine percent less in taxes today than they were before the global economic crash of two thousand and eight that's the headline finding by a study by the financial times of london they found that the drop in taxes paid in is greater than the actual tax cuts passed in the time since and the difference is due to increased corporate tax avoidance efforts compared to two thousand the effective corporate tax rate has fallen by an even greater degree from thirty four percent to twenty four percent the tax commissioner for the european union told.

the f.t. the problem is not tax cuts but profit shifting schemes that officially register profits in nations with lower rates a strategy readily available to multinational corporations apple google and amazon have all becomes fairly notorious examples of such acts of boyden the institute for taxation and economic policy has estimated that u.s. corporations have stashed nearly two point six trillion dollars in tax profits abroad. and we've reported on the better than expected job growth for february but what does that mean for interest rate hikes and for our overall economy here to discuss is danielle de martino booth the author of fed up why the federal reserve is bad for america danielle thanks for being here is always better than expected numbers coming in at three hundred eleven thousand for february and we stay at the four

point one percent unemployment what do you make of the numbers. yeah the numbers were as goldilocks as they possibly could have been we had great job growth one of the one of the sectors that the new fed chairman drone palis been paying very close attention to and that's those age twenty five to fifty four these are the main earning years that saw the strongest growth in full time employment he's really going to latch on to that in particular and we saw the direction bart the length of time that people are spending being unemployed at twenty two point nine weeks you know that's the shortest stint since may of two thousand and nine so very very good encouraging numbers and yet wages were not too hot hence the goldilocks reference that we've been hearing all weekend long you know i hadn't heard so i'm glad you're here with us as always i hadn't heard that it was that younger age group and

essential is some of the money ills are in that and that's the group of americans that have had so many problems with wage growth given the high real estate caustic cetera you may not a good dog in this part danielle but where are the new jobs coming from not necessarily just been in that sector but where are the sort of pockets of profit for jobs if you will well again and bar this is something we've discussed in the past you know two thousand and seventeen was the year of of the natural disaster and it was rather odd to see the fact that december and january were relatively as tame as they were but guess what we had backward revisions to both of those months . upward revisions that were very telling and we had one hundred and eighty five thousand jobs created in the construction industry alone in the past four months which are the coldest months of winter that is telling you that it's got mother's

nature's fingerprints all over it we've seen a revitalization is. manufacturing jobs as well so these again you're seeing the rust belt the trunk type of jobs the trump type of workers you're seeing these people securing jobs at the fastest pace that they have in the current recovery that's very interesting and you know we often see in almost every month that they never get the exact jobs right but it was positive to see both those month as you say december and january both under reported a nationally and that's particularly interesting when you look at construction jobs because a lot of those particularly in light of like a natural disaster they're hard to report to the people are just getting in their trucks and going to wherever it is texas or florida except for a very interesting stuff you know you have said no one no one certain terms that we're going to get an interest rate increase at the f.o.

and see meeting next week but i was reading with interest bill bollard who is the president of the st louis federal reserve and i followed him by normal little bit i spoke at one of the classes he teaches at washington university in st louis and he says perhaps we're only looking and he doesn't think we're going to look at more than three this year not for as many have talked about what do you think of his comments in general what do you think a bill bollard and what do you think of how many rate increases we may have danielle. well if we keep getting blockbuster reports like we got with the jobs report then we will end up seeing four rate hikes this year and what's interesting is that boehner has always been pretty measured in his in his take on the economy but two of his peers that would be labeled brainard who is a permanent member on the federal reserve board and charlie evans who is chicago's president they've both come out in recent days they're considered to be two of the most dovish members of the federal open market committee and they have both come

out and verbatim echoed what jay powell said in his recent can congressional testimony and that is that the economic headwinds that we've been seeing of late have turned into tailwinds when does start sounding hawkish bar that means that we might get those four rate hikes this year after all and yes to answer your first question mark is a slam dunk if there's ever been one i would look for hawkish language in that statement that's going to be coming out next week well i'm not going to try to change your answer because i know it's clear here but there was a new report out this morning about the deficit the u.s. government deficit of two hundred fifteen billion dollars which is the highest in six years and of course we have over a twenty trillion dollar debt that they just increase the the debt limit does this impact again not rates but you know how does this impact the economy might that have might have some impact on rates going forward not after of march. one would

think that it would have to look you just mentioned we've got the biggest deficit since two thousand and twelve and we've had interest expense go up ten percent over this and it's up eleven percent just since the beginning of the fiscal year higher interest rates are starting to bite uncle sam in the wallet and they will increasingly matter going forward because we know that the deficits just going to get bigger and bigger and that therefore the expense to to service the interest is going to continue to grow as well this will become problematic especially if the trump administration has more stimulus spending in mind at some point uncle sam is going to run out of money part you know what we ran out a long time ago and it wasn't just a republican administration democrats like i was here on earth back in the day when you know actually president clinton balanced the budget i never thought it would happen but now it seems almost as if roles are reversed with regard to the budget

let me ask you one quick question danielle here we saw gary call on leave potentially over the steel and the aluminum tariffs rex tillerson left and then there's another white house official who was supposedly escorted out of the white house did today and there may be some financial problems there he's going to work on the campaign i guess do you think these things are going to impact markets at all or are they just becoming standard course of business these days. well you know the conventional wisdom likes to say that the markets have become completely immune to all of the chaos going on at the white house but today's market action certainly suggests that there that at some point the market may hit a pain threshold especially as we look forward to the president's increasingly strong rhetoric as it comes to china as as the trade war talk heats up especially with some of our allies like european carmakers so it will be the market has begun to pay more attention that would be my assessment part because if you start to have political rhetoric spill into the real economy then we've got trouble especially

when we see so many different signs that the economy right now is at risk of overheating yeah well all the markets are down today except gold including oil and even bitcoin i'm not sure that that's a result of mr tillerson and the other fellow or not and why danielle de martino boothby author of fed up thank you as always for joining us really much appreciate it my pleasure thank you. time now for a quick break but hang here because when we return caleb often joins us to talk china in light of the constitutional change which will our president jinping to serve for life and the longer term monumental project known as the built in road initiative plus the manila chair and looks at the infrastructure deficit as it relates to rail and as we go to break here are the numbers at the closing bell.

in the heart of the swiss alps this is a place probably more secretive than the pentagon more mysterious than the cia and better guarded than forty six swiss customs place on the site is controlled by them and they impose the opening to. the possibilities from these all plus the procedures in place of the strictest in all europe must to pieces by artists like so and modigliani i can't unsold inside this warehouse that's where the report comes in it covers a. naturally discreet commercially discreet but also discreet secrets they concern fraud. some of those paintings are linked to dark secrets nobody knows how many of these secrets they kept inside the geneva freeport system you'll never obtain an

inventory of all the works in the freeport who knows how many there are three hundred three thousand three hundred thousand it's a matter of confidentiality only is it the world black p.r. business. twenty eight team coverage we've signed one of the greatest goalkeepers available to us but there was one more question by the way who's going to be our coach. guys i know you on the us he's a huge startlement and the huge amount of pressure you have to the center of the chapell with you and the great. you are the rock at the back nobody gets past you we need you to get down going that's go. a low as i want you know and i'm really happy to join the team for the two thousand and three in the world cup in russia. the special one come on both appreciate me

just to say to redo the team so they just addition to that this week i don't need to just say. welcome back in the latest news on guns and finance the firearms firm remington is reportedly making plans to file for bankruptcy the us gun manufacturer is regrouping after reaching agreement this week to address a missed debt payment remington has an estimated nine hundred fifty million dollars of debt to manage that daunting task has made more difficult in recent days by the growing backlash against companies with ties to gun manufacturers and pro-gun advocacy sybaris capital management which of pension effectively controls remington lost some investors after the sandy hook school massacre remington manufacturers

the bushmaster rifle which the shooter in that case used to kill twenty children and six adults. after a huge hack in january japanese crypto currency exchange coin check has finally compensated all of its customers impacted the exchange was hacked losing more than five hundred million dollars worth of digital tokens coin check had promised that they would compensate the victims of act and they've made good on that the company has also resume the acceptance of withdraws of specific crypto currencies like bitcoin after halting the availability to withdraw in the wake of the attack coin check nor regulatory authorities have divulged which part of their system or who targeted them. and china continues to look to the future as it puts block chained technology in its sights the country is hoping to create a national standard for block chain and other distributed ledger technologies or

d.l. sees this movement has been possible thanks to the china's aleck electronics standardization institution which has created a committee in order to lead that effort many organizations in china have already weighed in on the topic of deal tease keeping in line with china's policy to keep the country ahead of the curve when it comes to block change technology this announcement follows just days after china's two sessions event were took place where policy advisors were proposing that china should create regulations in order to ease block chain technology development. and action this weekend in china and now allows for president to serve more than two terms allowing at least theoretically president ping to serve for life but china is known for a longer term outlook on their plans and everything else and this is certainly the case with there are enormous economic development project known as the belt and

wrote an issue of r.t. correspondent caleb maupin one of our chinese experts joins us caleb thanks for helping us out today for the last several weeks we have known that the idea to eliminate the two terms for presidents would be a struct from the chinese constitution but what does that mean in practice for president ping and the country. well they're getting rid of term limits now we know that back in the days of franklin delano roosevelt he they didn't have term limits and he kept running until he died and the thing is you know the chinese communist party has taken china from being one of the poorest countries in the world to at this point being the second largest economy on earth and part of the reason they've had such success is that they are constantly adjusting their system and trying to shift the political system the economic system and make it work more efficiently and make it work better and at this point it's pretty clear that president xi he's waging kind of a crackdown on corruption and trying to make a cleaner environment for business trying to make the economy work better try to

get rid of bribery and graft and things like that and that the party really likes what he's doing they've added his teachings and his ideological breakthroughs into the party constitution at this point they want him to stay at the top job. you know when you talk about their economy and you say their number two but as you know being they were number one for a number of years india just per surpassed them but they still have at least it's reported they still have a six point eight percent gross domestic product so that you know nothing to shake a stick at and their economy just in general seems to be doing gangbusters but let's talk about their long term policies and tell people because in the u.s. for example i mean we're look at you know what's the plan for the next two years or the next president for four years and they've got longer term plans and then after that i want to tell tell our audience about what the belt and road initiative is caleb. well you have to realize that china's economy is quite different than the

economy of the united states now in china they have a stock market it's very important in terms of bringing in foreign investment but at the end of the day less than ten percent of the chinese population is in any way tied in with the stock market the chinese economy is an all financial eyes the chinese economy is about steel it's about aluminum it's about copper and electric cars and research and development and computer technology and it's this this is essentially what has enabled them to come out of poverty they've laid the foundations the infrastructure that a lot of developing countries do not have and if you look at the belgian road initiative they're essentially doing the same thing around the world you know they build an airport in bangladesh they build railway in pakistan they are go to brazil and they build hydro electrical power plants and when you lay the basis of infrastructure the domestic economies of developing countries can then start to flourish and then there's more of an economy for china to do business so the two countries become richer the term that they use is win win cooperation and that's

essentially what the belgian road initiative is about and it seems like common sense that if countries around the world are doing business with each other and trading with each other and making lots of money in the process that they're not going to go to war with each other that seems like common sense but that's often pretty absent in u.s. discourse we forget that when countries are economically tied there's a better chance for peace and at this point that's the vision you can't just they they they argue that you can't just cut yourself off from the rest of the world you can't build a wall and isolate yourself and in this twenty first century globalized economy countries need to be focusing on their common aims and common goals you know at this point china wants to get rid of a lot of the problems in the world terrorism is a threat to them drug trafficking is a threat to them and they've made a strategic decision to fight against these things not with drones but with jobs and if you can eliminate poverty and you can provide an economic opportunity and build up the level of material of body. and you can actually work toward

eradicating so a lot of the poverty and a lot of the problems facing the global economy during the period that we're living in and caleb just real quick it also seems like china is is filling a void by the trumpet administration at least in the short term who seems to be more isolationist do you agree well they certainly have voiced opposition to trump's policies and they have said that protectionism and isolation is just not realistic in the in the world economy they favor when cooperation between countries investment in infrastructure and new technology cooperation they seem to have a quite different approach than u.s. president donald trump to international economic affairs they sure do r.t. correspondent in china expert caleb thank you so much for your time and for your expertise. after president trump announced his infrastructure plan not long ago it was met

with both praise and scorn critics say his proposal relies too heavily on state governments and private companies regardless of the state of american infrastructure is certainly appalling at best according to the society of civil engineers american infrastructure of received a grade of d. plus downright abysmal for a closer look at our infrastructure deficit it relates to rail all aboard here's our t. correspondent manila chan. president from the campaign for months and months on repairing america's crumbling infrastructure from the roadways to waterways railways to the airways and has recently unveiled a plan to bring america up to speed we're here today to discuss the critical need to rebuild america's crumbling infrastructure. and one understands and the people in this room really understand better than most probably hopefully better

than anybody that the problem the states have and local leaders half with funding the infrastructure is horrendous. and we will build we will maintain and the vast majority of americans want to see us take care of our infrastructure. infrastructure is the backbone of the us economy and a necessary input to every economic output those are the opening lines in the most recent report from the american society of civil engineers their study aptly called the failure to act a report minces no words in their frustration with the budget shortfalls in infrastructure and highlighted that america is consistently at about a two trillion dollar short ball when it comes to infrastructure according to the a.s.c. if this investment gap is not addressed by the year two thousand and twenty five the economy is expected to lose almost four trillion dollars in total g.d.p. which can result in

a job loss of about two point five million people across the country the u.s. railways once connected the entire country from sea to shining sea much of america's goods are still pulled along by rail millions of cargo loads of coal chemicals paper goods new cars agricultural goods all the way down to other consumer goods like the i phone you may be watching on all get moved as train car go every year every day tens of millions of americans rely on public transportation to get to and from work without it america's economy would come to a crashing halt but without proper repairs to america's infrastructure the country stands to fall behind to places like china tens of millions of passengers use various forms of rail transit every year from amtrak to their local metro but with frequent delays electrical failures and in several extreme cases both amtrak and local commuter rails have experienced deadly human error catastrophes and although

president promised to fix infrastructure problems such as these former congressman jim moran is doubtful that he'll keep his campaign promise. in washington really believes. that it will have any that's going to happen is going to have to be done by states and localities and he just took away the money from theirs from the high growth states that needed that state local tax deductibility p.t.c. or positive train control was mandated by congress back in two thousand and fifteen following a deadly amtrak wreck which killed eight in philadelphia but after lobbying efforts by train companies congress pushed that requirement by three years to twenty eighteen places like europe and japan have not only had p.t.c. on their tracks for more than a decade providing a safer or more secure ride but now china has launched their most ambitious bullet train project that will also cut commute time by nearly seventy percent will america be able to catch up if we bring the private ingenuity like it you know

among other private businesses they can build a rail systems faster than the public can. we're still dealing in the public in rail with an eighteen thousand nine hundred century model and we're still trying to think about how to do it the way we did in the old days of standard and poor in the early parts of the twentieth century but we're going to twenty first century and we're talking about the rest of the world having high speed rail systems for years and they're benefiting from that this is a short list of some of the world's fastest trains on the left side is the trains operational speed on the right the best recorded test speed for each chain is currently running maglev train barrels through a swift three hundred fifty kilometers an hour and their soon to launch train will have maximum speeds of up to four hundred kilometers an hour america certainly has a long way to go before seeing such technology on its tracks stateside especially

since infrastructure spending in the u.s. has remained flat since one thousand nine hundred eighty nine so with constant lobbying efforts congressional easement of safety requirements and bureaucracy that stifles innovation america's railways may remain a relic of the twentieth century manila chan party. but we did get those corporate tax tax cuts done even though we need money for infrastructure perhaps it'll all work out together as a great report by military and thanks for watching be sure to catch boom bust on you tube at youtube dot com slash boom bust r.t. we'll catch you next time. down at ones that. don't want to make the definitions. i

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do or a sees the secretary of state surprisingly. the president say's he's fired rex tillerson because they didn't see eye to eye. cia director mike pompei always said to take over at the state department while taking the agency's reins will be gina is known for her role in the cia's torture program. the british prime minister is expected to announce reprisals against russia over the poisoning of a former double agent and his daughter rejected. questions about the origin of the nerve. at all so. welcome to.