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tv   News  RT  July 10, 2018 9:00pm-9:31pm EDT

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the wednesday's nato summit while donald trump continues to criticize allies for not spending more on defense brussels said this public warning to the american president dear president trump america is not turkish turf are but the load in europe india america appreciate your allies after all you don't have the money but you have a lot of ours which in our research is very regular very. serious so are out there you know. where are you today which is somewhat third world where our food prices for a few dozen more were saying we're sick. trump continues to insist that other members are not paying nearly enough as america covers more than halls of nato's budget in two thousand and fourteen nato members agreed to spend two percent of their annual gross domestic product on defense by twenty twenty four trump is angry
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that only five states are anywhere near that greece estonia the u.k. poland and romania the secretary general of the brussels based a military alliance says that members are paying their spending but not to please washington but independent journalist lucrative a told is that ahead of the summit to trump the unpredictability is on people's minds. everybody's very nervous here in brussels looking at the product could happen tomorrow all the day off with the the temperament with the way some of trump usually does things you know use a bit reliable these bullying so the whole bit afraid of what he's going to do miss the toss couldn't resist by saying that you know mr trump should know who are his strategic allies and who are his problem he means probably flooding me a putin but this is trump bashing it's cheap advice and they should do that everybody's not just because of this issue of finances because of the troops still
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present in europe that the camera can scoot could send back home because of course also off the fact that several countries are renewing their fleet of fireball mo's all together it's a dangerous cocktail for the unity of nato but of course it's so good to have a common enemy russia thanks for joining us are not the international phone the latest you can join my colleague sean thomas at the top of the.
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right we're also starting five guys at the studio house a signal. he's not going to talk about. just maybe right after the morris explorers one who would have their new. record. to sing last week no.
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i am. well welcome to sophie until i'm so busy shevardnadze said today we've got lots to talk about in our program and our guests. good luck to them. and you know it's nice does it. as a report coming. it makes you look at me a little bit so ho in london you know this. beard stuff growing yeah. i'm open to get some like is easy top you know yeah jairus
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a lot sort of look yeah joe was a lobster inspired me to grow a beard needs. it is the way to be a hipster but you know what we're going to talk about basically that's all that's left to be in america as a hipster if you are because there are no jobs there's no nothing really happening there and of course trying to make america great again so we're going to look at two headlines from wall street dot com wolf rector and he's looking at some of the true state of the economy and the true state of some economic policies and trade policies going on including the terrorists which is shocking information that i had no idea about a first we're going to look at a company you and i will have known from growing up and that was toys r us which was a big successful company you know it just sold all these toys for children and it was very it was all over the place but then private equity bought it out and now the company insists no longer well this was in three days the last toys r us store
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is di m.p.e. firms behind it question mark well on june twenty ninth that's remaining stores in the u.s. closed and then it's over for the iconic retailer one more victory for p. e. firms private equity there plowed into retail during the leveraged bio boom before the financial crisis lowden the them up with debt and watched them collapse and what i have come to call the bricks and mortar meltdown toys r us is just one of them p. e. firms kohlberg kravis and roberts vornado realty trust and bain capital acquired the publicly traded shares of tories are asked by a six point six billion dollar leveraged bio in two thousand and five they funded the act was just in large part by loading up their. hired company with debt hence leverage buyout and other words the p. e. firm had little skin in the game and over the years extracted four hundred million dollars in fees for themselves while the company collapsed yeah that's right it's
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the leveraged buyout. catastrophe shifts equity and power to people entering cravats of crabbers and roberts and that's been going on now for thirty years but not all p. e. deals are terrible you know like dunkin donuts was taken over by p. e. and they've expanded the mole skin franchise was taken over i think burger king was a no in the hands of private equity so you know but most for the most part they extract the equity they extract cash and they leave the company to collapse all the jobs go missing is part of the repay shows old hyper squat unquote capitalist cancer that plagues america yeah but remember we discussed in the last episode the fact that the central banks and our governments continuously give these sort of guys all the capital of the free capital in order to repair the economy when what they end up doing over and over and over and over
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and over and over is this they just extract equity take hundreds of millions of dollars for themselves by another you know penthouse on park avenue and another place in the hamptons and another yacht perhaps they park over in larchmont or mamaroneck or somewhere like that and that's what they do that's what they they don't build anything they don't add jobs they don't add value and in fact in this case thirty over thirty thousand employees of the company gone no pension no nothing they get nothing no pay out they've gotten there were some employees that actually had worked for the company for thirty years this is how much they got zero zero dollars for their payout for leaving the company but the other important thing is that this isn't like how we have structured our society. and it's so ingrained this vicious nasty equity extraction form of capitalism that where
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all these private equity firms get their money is mostly from our own pension funds well among the biggest investors in p. e. firms are public pension funds they provide about twenty percent of the three trillion dollars in assets managed by private equity firms public pension funds like the accounting of investing in p. e. firms these investments are considered illiquid and long term and don't get marked to market this gives pension funds the illusion of stability during times of market turmoil and they don't mind the sky high fees and private equity firms love public pension funds because that's where the money is and the sky high fees is a symbiotic relationship so here we as a society we are taxes pay for those public pension funds we pay those employees the this upon a public pension fund manager then hands it all to a private equity firm who then destroys the economy around us thus destroying our
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abilities even pay taxes so it's a stupid game play i mean just paying henry kravitz some money so that he doesn't shoot in the head the private equity firms are gangsters and the pension funds that could be campers out there in california other pension funds that. henry kravis goes them and say give us your money so that we can destroy toys r us all these other companies and destroy jobs we're going to blow your brains out and you're going to get nothing and they threaten them and that the predatory nature of markets are working today he has a nice suit but he is like i just saw a photo of someone pulling like a forty inch leech out of their nose you know henry kravitz is that leech off line that photo for it like that so rick rabbit sees that forty is a leech and then. those of america but you can't pull them out these embedded and so much is about that illusion the illusion that the public pension funds like that
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they don't mind paying real wealth taken from pensioners give it to these guys in order to maintain the illusion that they're somehow doing a job that they are somehow actually. getting out eight nine percent annual returns when they're not the illusion of so much of our economy when you drive across america as we have when the illusion is that nafta and all these trade deals have helped the american people but we drive across america to find out do this is like a disaster is known here and that is the next headline with wall street regarding these auto tariffs that went through apply to europe and china and i thought ok the guys drain what is he doing but actually there's some support behind it according to what wall street says is beyond the hysteria about auto tariff get him. president obama's threat to impose tariffs of twenty percent or twenty five percent on auto components of vehicles imported to the u.s.
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is causing a bout of hysteria that is splattered all over the media but the fact is the e.u. imposes a ten percent tariff on all cars s.u.v.s compact s.u.v.s mansome pickups imported from the u.s. the u.s. only imposes a two and a half percent tariff on imported passenger cars s.u.v.s compact s.u.v.s advance from the e.u. and a twenty five percent tariff on imported pickups which is a tiny share of the e.u. market again that's so the e.u. imposes ten percent on our cars that america ships to europe and we only impose a two and a half percent tariff on them china imposes a twenty five percent tariff on all imported vehicles but offered to cut this to fifteen percent as a goodwill gesture and the trade war to get around the chinese tariffs and sell vehicle so the one point three billion chinese consumers all global auto makers have invested billions of dollars in china has set up a large manufacturing facilities in required joint ventures with often state controlled chinese companies and have submitted to the required technology
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transfers g.m. now makes and sells more vehicles in china than it does in the u.s. and this is what he says we need to do with china as extracted this wealth creation they've forced these companies start start creating wealth inside china through their tariff system and this is what china is trying to do so well you know let's revisit the parts of that we've discussed on the show many times prices are at wal-mart are cheap because people have given up their jobs to chinese manufacturers who can do the same thing for you know ninety eight percent cheaper and so the illusion is the american lifestyles are falling apart because even though you're making a lot less you are getting the same stuff at a much reduced cost the illusion again you're right the illusion so now if the game . of that particular trade nightmare and what trump is saying hold on let's move those jobs back to america by imposing tariffs to equalize the trade picture and
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move toward a post china extraction model you know where as private equity extracts wealth using leveraged buyouts china's but extracting wealth using leverage trade shenanigans so this is just the reverse of that and trump as i hear in some people's voices starts to make a little bit more sense that people don't understand that this guy actually understands more than people are giving him credit for yet like i've seen the streets and i believe the streets again just like i believe the shrieks of how the fact that hillary would win the same people told me like this is all streak were they and there's that trump is drange and these are our allies i never heard from them and i did not know for example that the e.u. imposes ten percent tariffs on us and we only have two and a half percent and that like that doesn't seem fair it seems why do they do that in order to maintain their own knowledge base manufacturing base wealth creation base
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in germany and the way to get away with it domestically and say this is great for you the consumer yes right yes right that you're in another way that the left is pushing back against trump is by saying wait a minute consumer prices are going to go up people will be able to afford stuff like they could before and so the quid pro quo is well it means that they do get a high paying job again so they will be able to for the stuff because i'll be making more so the left is financially illiterate and they buy into the consumer market compas now let's just do a deal now this guy over at wall street dot com our friend will factor wolf richter right he's laying out those numbers in a clearly and you know you're a big fan of walford's or i read wolf richter so anyone who follows this and as politically aware you know starts to look through the numbers.

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