lame the market rout on the us federal reserve here's what he had to say thank you thank you thank you thank you it is going great thank you say thank you thank you thank you thank you a lot about thank you thank you thank you but i thank you thank you thank you they were waiting for me thank you thank. you and here to discuss what's been going on in the overall economy and more is professor of economic emeritus at university of massachusetts amherst richard well professor great to have you back again thanks for joining us thanks i'm glad to be here so i have this theory and it's not some learned theory that i would learn in the class that you teach certainly but it involves reasons for a major market moves like this that we've seen in the last twenty four hour and my

theory is that folks on t.v. radio and investment advisors who we pay if you make an investment they always have to have a reason they have to come up with some reason otherwise what are you watching them for what are you paying them for and they have to have some sort of answer but if you are in the financial sector i guess you don't know everything even though you act like it so my question to you is you know is that something that makes some sense and do you happen to have some reason why these markets have taken such a terrible tumble yourself professor. well i think your insight is absolutely right some people have to have an explanation for everything because their situation their income depends on it let me start with president trump his job depends on it so as usual he has found someone other than himself to blame

whenever anything good comes about he is of course responsible for it and when something bad like the stock market crash yesterday happens it is somebody else so he blames the federal reserve a student who answered that quickly in that simple minded away would get a very poor grade in economics from any professor that i've ever met so let's put that one aside typically a downturn is a result of many different things and each one has its own particular story to tell what's interesting is not so much of this or that cause this time it's more important the other time a little less what's really important to understand is we have an economic system that is fundamentally unstable everywhere that capitalism has settled in as the dominant system starting in the eighteenth century in england and then spreading across the world here's what we know on average every four to seven years there

is a downturn some of them are short and shallow others along in deep one nine hundred twenty nine was terribly long indeed two thousand and eight terribly long and deep no one knows the details but we know that if the last bottom in this country was in two thousand and nine and ten which it was and you add forty seven to that we are as even the president admitted we've been due for one for a year and a half and the only question was what. and set it off yesterday's events or yet something to come one less point the largest bank in the united states j.p. morgan chase has officially predicted that early in the year twenty twenty will be the next downturn now that's a little silly nobody knows exactly but it gives you an idea that even the biggest

most the stablished thinkers know that with the regularity of our instability if it isn't this one it will be one next month or next year and then there will be millions of people out of work economic downturn and in our volatile society the lord knows where that will take us absolutely so insightful professor that's why we love having you on and as you mentioned you know the president did it he said he admitted we are expecting a correction now you know it monday morning quarterbacking but if he were if we were really expecting a correction and if he had said so say three days ago then the markets would have taken a turn which brings me to him him saying as you say using the fed as a scapegoat i mean saying that the fed's actions were crazy we forget that the fed chair is president trump's own pig jay powell he is his guy and so

earlier today larry kudlow the director of national economics the president's top economic guy comes out and he says no we're not directing we're not complaining about the fed but he's sort of like the proverbial guy cleaning up after the elephants in the parade trying to make things better i mean these are supposed to be independent agencies i was at a regularly regulatory body that was independent but the president is treating him like it's his own special whipping boy and girl it doesn't seem right in my view what your thought. well the tradition has certainly been that presidents are not supposed to interfere in what the independent federal reserve system led by mr powell does in this kind of situation this country has produced an increase in the quantity of money in circulation to respond to the crash of two thousand and eight

that is unprecedented in our history and the federal reserve quite predictably anxious about what might happen if that money starts to chase goods and services what kind of boom and prices inflation it might start is taking prudent steps that they normally do to hold the situation back whether you agree or not there's nothing crazy there's nothing unusual the only reason president doesn't like it is if you raise interest rates you make it more expensive to borrow money people will therefore not be able to borrow as cheaply as they did before to get a home or to buy a car or to use their credit card or to pay for their kids' education and that's going to upset people and mr trump is afraid he will be blamed as people discover economic difficulties since he's been promising to make america great again any

time early next week to the mass of the american people so he doesn't want it now he wants it to happen maybe after the election in november that's all this is about yeah i couldn't agree with you more let me ask you this professor do you think that we are one safer than we were back in two thousand and eight and two if there is a no other i mean is going to be a downturn in the market i mean it's like the rain sometimes it's going to happen but what do you think that market turned downward might be and when might it be. well i i like the prediction of the j.p. morgan chase bank it seems to me that somewhere in the next four six twelve eighteen months we're going to have a downturn i don't think there's a question about that exact ptolemy no one can do so the real question as you rightly put it is how bad will it be how deep will it go how long will it last

which is the question we ask all the time now here's my concern crises in the capitalist system tend to be worse the longer we've waited from the last one we're now beyond our four to seven average range so that's an argument that it will be worse number two because of the last question the decision of the federal reserve that both republicans and democrats supported to bring interest rates down to flood the economy with money interest has been very low governments therefore have borrowed like never before corporations have borrowed like never before and individuals have come back from the crisis of two thousand and eight borrowing ever more particularly to send their kids to college at a time when future job opportunities are not so great. see.

the ability to keep inflation genie in the bottle is about bringing so we see prices going up across the board well it's just one of them we see interest rates rising that's inflationary we see the dollar eventually cracking and a catastrophic collapse that's usually inflationary so price across the four go up that makes that russia saudi arabia venezuela. their oil based economies they all benefit wildly from this emerging market takes the benefit of this oil and gold gold starting to perk up. but going of course would skyrocket two hundred thousand plus. it's easy to find and then in. the fall where they're. much more difficult these explain all things are once you stop telling. you my

hate the banks by where do you put your money. to put them in the bank and what happens if the bank goes on and don't see your money anymore these kind of reasonings will be much more a handful to make people on the stand of the dynamics there and why people locked on consequences of prices that of post nobody wants. it's been too many times when i see in. cities but close. since the. terrorists you know attacking civilians it's been terrible really. more. than i was a few months back and the deal was a glimmer of hope in all of this.

while come back the largest health care merger in history between us drugstore chain c.v.s. and insurer aetna has been approved by regulators at the end i trust the vision d.o.j. that's apartment of justice here in the us setting the stage for a new battles for market share and significant structural shifts in the very large sector of the us economy on wednesday d.o.j. legally approved the perp. just of the by c.v.s. for sixty nine billion dollars the two companies first announced their deal in december of last year and as you may recall last month d.o.j. approved insurer sigmas move to acquire express scripts a pharmacy benefit manager industry observers say no will provide c.v.s. with an effective turn key vehicle to capture more business from pharmacy benefit

manager firms such as optimum and united health care the c.v.s. a number of your faces one final review by a judge although approval is expected we've reported here in depth about bear corporations recent legal and financial troubles related to the herbicide life was made by their subsidiary the chemical and biotech giant months until today however bear one in a round of ongoing litigation in a california court and the company's stock price is getting a boost from the news here to update on the latest developments as our to our own our own sara mind to go sara what's up well in the latest there wins a new trial on punitive damages in the two hundred eighty nine million dollars case in august you may recall doing johnson was awarded thirty nine million dollars in compensation torrie damages and two hundred fifty million in punitive damages now according to court filings a judge in san francisco is granting there a motion for

a new trial on punitive damages this ruling could shift the company's momentum now their shares have been had been falling since them and santa case they fell almost twenty percent but since the news their stock rose as much as six point six percent and that's our biggest gain and almost seven years superior court judge suzanne ramos says that she would grab a new trial on grounds of insufficiency of the evidence to justify the award for peanut of damages but these peanut of damages were the bulk of that two hundred eighty nine million if the company can actually persuade the jury to overturn the case and decrease that two hundred fifty million in damages from that first case then we have to remember that there are still eighty seven hundred people waiting for their trials and some legal experts are saying that the plaintiffs could be less eager to pursue their claims. archies sarah thank you so much sharper that update and following the story. and yesterday a t.n.t. announced a new streaming video service using content obtained from their acquisition of time

warner including home box office programming the new streaming service will be out in the fourth quarter of next year and sets up a rival e with netflix which already of course has streaming services and disney which announced a similar streaming service in august also to be available next year and here to talk media and more is our friend and veteran media consultant those of the big picture right here in our to america holland cook welcome holland ok so let's get into this you know it just makes me think is this media merger madness are things always going to get better is that we should just expect is that it ever will bigger is inevitable because in olden times we got our video and our audio from broadcast stations over the air which had a limited geographic footprint back to the future we get the stuff on the internet and it is a worldwide well. you know when we look at. we know a.b.c.

n.b.c. c.b.s. americans know that but unless you watch boom bust you night might not know about sky news for example which is in the u.k. and the e.u. is this bigger that you're talking about holland is it going to get to a place where we all sort of know the players around the world but perhaps by different name maybe not the pipe itself but the content was always over the borders for decades dallas was a huge hit worldwide decades ago and you go on you tube and hear them say who shot jr in japanese and secret agent man was on t.v. in the u.k. before he was on here in the sixty's so now it's that on steroids where the platforms no no borders but the content was already kind of out there and what about when we look at this is a t.n.t. announcement they're going to do news streaming we talked about the disney streaming before netflix already does it what do you make of that story and is it

going to help consumers there seem to be trying to catch up with disney because on the heels of that disney announcement that they were going to go global and direct to consumer this week out at the vanity fair new establishment summit when being in los angeles the time warner merger was applauded by warner media c.e.o. and john stanley said this new package will be available by the end of twenty nineteen he called it another benefit of the merger as the big get bigger what he didn't tell us is how much it's going to cost and specifically what other than h.b.o. is going to be on there they're racing that fast that the announcement is pretty much all there is expect game of thrones which is theirs and has a big following but things are moving that fast you know is so amazing because i thought why are they announce ing now that they're doing this like in the fourth quarter of next year but i think it's got to be right because if they are good at it yeah exactly and what we have you here before we go. you've spent you know

a career in advertising based media what do you make of this story about newsweek the iconic magazine supposedly fabricated their credit reports in order to get ten million dollars in loan the manhattan district attorney alleging that in taking them to court what do you make of it think of the name newsweek and go back to when all the people who work there look like don draper and by friday they had to write something that would still seem like news on monday and then you kill a bunch of trees and you roll the press and guys throw bales of magazines on trucks and drive around the newsstands seems like the flintstones now sadly all these phony baloney numbers may just be the dance of death because the concept is obsolete telling could coast of the big picture right here on r.t. america new show friday every friday live at one thirty and again at seven and ten thirty eastern we won't miss it don't miss it guys always great thank you holland go sox guess.

and since the dawn of the industrial revolution machines have slowly but surely taken over more of the menial jobs that used to be done by humans during those early years when there were even riots in england with textile workers and weavers destroying the machines that were replacing them well now we wonder what artificial intelligence ai and machine learning will do to our businesses our economies and our lives as we know them to answer those questions and others we are pleased to be joined by rachel wiseman the senior editor of rebellion research we love rebellion research welcome rachel thank you glad to be here so let's get a quick lay of the land when did machine learning and i really start to take off and was it due to businesses effort being to process lots of quantity quantity of data or was it last year sort of scientific research goals. well when you look back

at the history of artificial intelligence it really dates back to around the fifty's but it didn't really start taking off until very recently with the emergence of cloud technologies. the emergence of the cloud has allowed machine learning capabilities to be cheaper and a lot more accessible whereas before the cloud you know instances of ai application have been very isolated also very expensive to implement so due to the cloud machine learning capabilities have skyrocketed that's why we've seen such a boom in the last few years and now businesses are capitalizing on this using it to improve their data security improve their efficiency in their effectiveness in their fields and we also see it in scientific or scientific at c.f.b. and medical research as well you know rachel back in the day when i started on capitol hill my first security clearance i had to get it because it was really

defense and space i had to get security clearance because there were these supercomputers these big huge cray supercomputers being used and i needed i guess to know some of this stuff and back then it was really the government and the department of who is benefiting right now when we look at the developments in machine learning or the benefits going to businesses to government to economies or consumers. so there are benefits everywhere on the business side of things if you look at a company like my own if you look at rebellion research you know one of the world's largest robo advisors we monitor over fifty countries using learning and we incorporate all of that information with almost twenty four years of history . and we use all that information to learn to become more efficient with our investments but if you look at the scientific research side of things companies like i.b.m. and google in their deep mind program have spearheaded the health care side.

official intelligence using it to monitor their patients for disease research for diseases action you see artificial intelligence everywhere and a consumer basis you know consumers around the world are starting to see it in their shopping experiences everything is becoming much more streamlined. typical advertisements and promotions they don't quite work anymore they're being phased out so major companies wal-mart target. they're all using these streamlined experiences they recognize the shopping patterns of their consumers and they're really trying to increase their revenue and increase the satisfaction of the customers there rachel do you think there are any parallels between like those folks like talked about a beginning of the the segment do you know the weavers in the textile workers who are losing their jobs because of the industrial revolution are there parallels now with a machine learning folks are going to lose their job they're really upset by it.

yes absolutely there are definitely parallels by. through studies through research we have seen that the fears that people have over losing their jobs due to automation are while they're reasonable there it's not going to happen if you look at a country like germany germany has one of the highest number of robots automated robots per capita and there's this and they also have one of the lowest levels of unemployment in the world. so just like the industrial revolution yes people are being displaced from their typical jobs but the implementation of it is creating new jobs for these people to do that just simply can't touch it reminds me in closing here rachel back and i can't tell you when it was but maybe in the ninety's that machines that could actually deliver mail to those extra four digits and us zip codes that the labor unions wanted folks not to use those extra four digits because it would do away with their jobs but postal workers are doing just fine thank you very much. and we thank you very much for being with us rachel wiseman

the editor of rebellion research we love rebellion research take care rachel thank you as well. and that's it for this time thanks for joining us you can catch boom bust that you tube dot com slash boom bust r.t. so on for now. what politicians do something to. put themselves on the line to get accepted or rejected. so when you want to be president. want to. have to go to the press this is what the four three of them all can't be good. i'm interested always in the waters and the how.

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