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tv   Boom Bust  RT  October 12, 2018 5:30am-5:57am EDT

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i think thank you thank you thank you thank you 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 the way 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.
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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
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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 a way 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
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there's 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
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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
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economic guy comes out and he says no we're not directing the fed 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 that a regular 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
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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 the 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
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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 timing 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
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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 crash and 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 that is very dangerous because what debts do when they pile up like this is they ramify any downturn you get lose your job is bad enough but if that means you can't pay all kinds of others
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that the pend on being repaid well then it spreads like a wildfire that's a bad sign also and finally mr trump has to have the finger pointed at him because he has disrupted the world trade system in the world with his aggressive tower of posturing and posing as undone world trade the i.m.f. last week told him that so he's made that another. i'm on top of the economic downturn so that's why people are scared and when you begin to see what might be the moment yesterday and today then the stock market goes down because as we used to call these things panic sets in and that's why that fear and vix the volatility index is so high professor richard walter a professor of economics americas at university of massachusetts and hertz thanks so much for your insight professor. my pleasure thank you.
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and as hurricane michael is imposing economic losses across the southeast united states we look at the consequences of the direct hit from typhoon of the rich in the breadbasket of the philippines which you may have heard first about here the superstorm has worsened a growing problem for a pill philippines president. to tear to who can be so who can't be solved by usual repressive mesut mess a sorry rising prices for rice and others staple food that was the big problem there after that typhoon in september philippines inflation's hit a nine year high of eight point seven percent up three percent from august and rice accounts for twenty percent of the expenses in the standard basket of goods used to calculate that figure after reportedly heated talks within his own cabinet mr du tear today has removed all limits on rice imports and has revoked the authority to
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question his action by the national food authority mr du terra take took a political risk of angering struggling domestic farmers by removing the limits rice farmers rice farmers in vietnam and thailand the two biggest exports to the philippines are likely to reap a financial windfall from the move. and time now for a quick break but hang here because when we return there is more big media news as streaming services has just been announced plus newsweek the iconic magazine is involved in an alleged fraud veteran media consultant and host a big picture right here at r.t. of america holland helps us take it all in and shares the details plus we look at artificial intelligence and machine learning with great although approval is expected we've reported here in depth about bear corporations recent legal and financial troubles related to the herbicide life of made by their subsidiary the chemical and biotech giant months santo to. they however bear one of the round of
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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 are our own hard to see. what's up well in the latest bear 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 bear 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 i'm in 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 in almost seven years superior court judge suzanne ramos blotto says that she would grant a new trial on grounds of insufficiency of the evidence to justify the award for
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punitive 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. archie. 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
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picture right here in our tier 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 evitable 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. and 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
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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
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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
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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
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intelligence ai and machine learning will do to our businesses our economies and our lives as we know them to answer those questions that 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 point to point to data or was it lofty or 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
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have been very isolated and 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 scientific at sea 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 defense 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.
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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 artificial intelligence. so 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
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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 their customers 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 ice and they also have one of the lowest levels of
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unemployment in the world. so just like the industrial revolution yes people are being displaced from their typical jobs but the implementation of that 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 a mail to those extra four digits on an 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 think 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 at you tube dot com boom bust r.t. so long for now. this
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is. the need to actually physically get out of the dress you know well well well well well well. there's a lot of money with your oil and with that comes. a lot of a lot of people from all over the country. who don't make a hundred thousand dollars a year. as a. british. here in india. they were all sixteen hours a day hard work for the workers not nice work and so they want to relieve their
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stress of how do they relieve their stress these men moved back out he's a man that comfort many. people have been murdered up here people been raped there are massive drug issues up here you have a boom you have everything else that comes along with money. and with this manufacture come sentenced into the public will. when the running closest to protect themselves. with the crime and. certainly the woman. we can all middle of the room see. the real news is.
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the way to the united states is dangerous for moost of the illegal immigrants. who are going to most of us just a little sympathy i want to. go to us to sum this up but if many of them look for refuge in the so-called sentry sides of the drift used to share information about undocumented migrants with federal authorities the best person as dan called. us you know you know i've ended up back on i guess i'm in a lot of class and one of the. what are the options to stay in the country with donald trump in the white house. the who beat out the. i said sits down with many couples won't. kill the chance to put simply dimples and both some of the outputs of a few of the most of the. you know world
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a big part of the lot and conspiracy it's time to wake up to dig deeper to hit the stories that mainstream media refuses to tell more than ever we need to be smart we need to stop slamming the door on the back and shouting past each other it's time for critical thinking it's time to fight for the middle for the truth the time is now for watching closely watching the hawks. this hour's headlines stories a warm welcome for the two astronauts who survived thursday's aborted rocket launch they have now arrived in moscow. all right and i feel good a. good. thirty three minutes and i know the men
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speaking to quick thinking crew were forced to abandon their malfunctioning spacecraft for a nail biting the said tour also ahead this hour. in the fight against fake news sank.

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