i'm one of the does not know you are the boy doesn't even. want to see your little good family. the chief suspect allegedly turned his gun on himself towards the end of this rampage oh well though his father is now being arrested he's in custody and he's being questioned by investigators this morning throughout russia flowers are being laid in honor of the victims but it's early times yet and we still have plenty of details to to find out to catch up on and we're on our way to catch now ok many thanks of course all right guys they have just arrived in crimea i'm sure we'll be coming back to him throughout the evening to get dates thanks for now more on. that wrap things up for now do you remember back in half an hour with the very latest on our top story on the rest of the day's pertinent news events see them.

this is boom bust broadcasting around the world and covering the world of business and finance and the impact upon all of us you me the guy behind the tree everybody i'm for children washington thank you so much for joining us we're glad you're on board coming up today amidst the trade war actually between china and the united states china is per tailing oil imports of us all artes science aventura gives us the latest and that's not the only thing which you say it's throwing overboard with china's growing our report they are also selling us bonds that's u.s. debt while the same time they have their own increasing debt problems peter ship and caleb often are here to discuss plus how does one actually invest in crypto

currency is the co-founder of counterpart x kristie i is here and she'll help us spell it all out all that directly ahead but first we had some headlines let's go. as predicted the united states fredricka budget deficit has increased by seventeen percent in the wake of the trump tax cut on monday the u.s. treasury department's latest official figure for that deficit climbed to seven hundred seventy nine billion dollars that number is up one hundred thirteen billion dollars from the previous year and as these the largest deficit since two thousand and twelve most economists agree with the base the arithmetic that shows that the tax cuts passed by republican congress will increase approach will budget deficit even after accounting for the projected growth on revenue treasury noted that twenty two percent fall in revenue from taxes and corporate income as individual taxes crept up one percent treasury also notes income from customs receipts and

similar levies increased by thirty five percent to thirty five billion dollars that in. may be due to mr trump's actions on trade and terrorist but treasury did not tout the possible link and on spending the us defense budget has climbed to a record level of six hundred billion dollars while education spending fell by forty three percent. and as the u.s. deficit increases so do big bank profits j.p. morgan chase the largest u.s. bank by assets has reported better than expected the third quarter results including a massive sixty percent increase in consumer banking profits of four billion dollars in the three month period bank of america also saw an increase with profits of thirty two percent over the well over last year and also beating expectations are goldman sachs as new c.e.o. david solomon took the helm of the bank on october first citi group which saw loans and deposits climbs also did well and wells fargo bed wells fargo increase shareholder equity year over year as did p. and c.

financial it seems the ability for banks to charge more for loans with these increasing interest rates by the fed coupled with the trump corporate tax cuts are facilitating the pronounced profits as they note eat quarter since the great recession the u.s. financial sector is not only made a profit it has made a larger profit than any other sector of the u.s. economy. and some said the market watchers are starting to note that sanctions meant to harm the economies of iran and russia actually seem to be generating a net economic gain for russia in this case the u.s. has applied sanctions against the iranian oil sector starting on august seventh with a final policy taking effect on november fourth the global price of oil has increased by about fourteen percent since then at the same time u.s. sanctions against russia imposed in april have suppressed the value of the ruble which is followed by about fifteen percent now the wall street journal points out

that the upside of the rise in oil prices and the fall of the rupee. means russia is getting paid a higher price in u.s. dollars for their main export which is of course oil those dollars can then generate a bonus in domestic purchasing power when exchange for rubles while those trend lines on oil and currency if but fluctuating in recent days the wall street journal reports that so far this year shares in russian oil giants rosneft and lukoil are up by fifty six and thirty nine percent respectively. and as a trade war continues between china and the us china is oil imports of u.s. oil in august china announced tariffs on sixteen billion dollars worth of u.s. imports of oil products including look at fide petroleum gas or l.p.g. and coal until now crude oil had been left out of the trade war china used to be the number two importer of u.s. oil behind canada and was the biggest buyer through the first six months of this

year in june for example china imported five hundred ten thousands of barrels of u.s. oil per day according to the u.s. information energy information agency and that was approximately a quarter of the total of all of the oil exports that the u.s. shipped that month but last month september only thirty thousand barrels a day of oil were went to china and here with more is our. why is china veering away from this policy is it all about trade tell us well by there is a primary two reasons as china needs crude oil they have a growing economy and with sanctions on iran china is saying that it will continue importing from iran by china had previously indicated they u.s. could imports could be subject to tariffs and so i mean how do you think they're going to continue to react is something that's going to go down this road and we're not going to any oil whatsoever there what are your thoughts in general well so far

china has very frame it from putting tariffs. on crude oil china is a good place tariffs on l. and g. liquefied natural gas from the u.s. but that was just say at kind of a tit for tat tactic but even after doing sell it they lowered it from twenty five percent to ten percent also the u.s. really needs tight as a partner as from the seventeen countries that the u.s. ship crude oil to china was by far the largest market so i mean i assume that there are some other places us could go but if it was a quarterback you know in june of our daily exports to china what sort of impact might this have on the u.s. crude sales you know it's actually a lot more to do with investment and most of the u.s. producers are exporting what we call the light tide or oil and only international markets have refineries to accommodate that oil and at the same time that the u.s. production is growing libya algeria and nigeria have been down but when those light

oil produces come back to the market there's going to be huge competition for the u.s. so i think you so much for this help we know you've covered these sorts of issues over the years we appreciate you taking the time to bring it to boone busters thank you so of course. and u.s. oil isn't the only thing china is throwing overboard they are selling us bonds that's u.s. debt while at the same time they have their own increasing debt problems as the chinese economy is slowing down some are reporting china is local governments are under a pile of debt amounting to roughly forty trillion you one that's about five point eight billion u.s. dollars and s. and p. analyst was quoted as saying the potential amount of debt is an iceberg with titanic credit risks here to discuss the u.s. debt and china debts and and debt in general and trade are the president of euro pacific capital peter schiff in our to correspondent in china expert caleb wapping gentlemen welcome thank you peter i've enjoyed being with you on the in question

program last week i saw you were there early. we are but i want to take a little bit different tack to day you've spoken about the need to reduce government spending in the u.s. but i'm curious as to your take on how the economy would have done without this tax cut without this sort of fuel injection sugar high. well we may already be in recession i think trump was right the economy was headed for a crash before he was elected but all he did is kick the can down the road and i think we're headed for a bigger crash now you know you mentioned the u.s. debt how much it was up in the last fiscal year but what everybody is overlooking is the increase in the national debt while the official budget deficit was around seven hundred eighty billion the national debt increased by over one point two trillion during the same time period and that's because a lot of what the government is borrowing it doesn't count as part of the official budget so it actually you know borrows about sixty percent more than it's

pretending to borrow so the problem is far greater the media's actually sugarcoating it there's a lot of debt here and this is during a supposed recovery when we're at peace imagine the enormity of the debts during the next recession and one's coming a lot sooner than people think so these deficits can skyrocket above two trillion dollars a year that's that's so interesting and i recall and peter correct me if i get these numbers wrong i remember the first debt limit increase that was so controversial and secretary treasury minutia he really did want to go to the hill because it was you know right at that first year in december and he'd want to ask for something at the same time they were trying to get these tax cuts through but i think it was increasing it to ninety ninety trillion somewhere or above one thousand troy and now it's like twenty three right peter. well i mean it's above twenty one and a half not quite twenty two yet but again that's just the funded portion of the deficit that doesn't include all the unfunded all the contingency liabilities that

send that total north of you know one hundred trillion dollars and the other problem is the other side of the balance sheet nobody in america saves any money i mean we have no savings people live paycheck to paycheck so at least in china you know you have a high personal savings rate so debt is not as big a problem if you have savings to offset it but in america we need to get money from the rest of the world we need the chinese to lend us their savings because we don't have any of our own and the alternative is we just print the money we go back to quantitative easing which is where i think we're headed and so the result of this ends up being a dollar crisis words the u.s. dollar that is collapsing because of how many the federal reserve has to print to buy up all the bonds that the chinese and everybody else no longer want right and you know i can't live i'd like to say this is a tale of two different countries but to some extent there are some similarities here the story that i read about the the debt rising in some of the local economies

over in china there are selling our bond three billion dollars worth of bonds of u.s. treasuries what's the strategy here for china do you think. well bart the reason people are concerned about this is because any good economist will tell you that growth based on debt is not real economic growth if i just go run up my credit card that doesn't mean that i'm actually having an increase in my income that just means i'm running up debt and that's one of the manger critiques of keynesian economics is they say look the government just spends money that's not real economic growth but if you look at the situation in china right now it's very very clear that they are experiencing real economic growth i mean even c.n.n. admits that every single day another chinese person becomes a millionaire i mean i am here in new york city there's not a day that goes by that i don't pass a crowd of chinese tourists and the world tourism industry is having a boom because so many chinese people have become recently wealthy and are now

going on vacation now their g.d.p. growth rate has slowed somewhat it's not growing as fast as it was previously but it's still much larger than ours i mean they're doing pretty well economically they're continuing to grow and we've also seen you know there have been certain forces that have been predicting you know this catastrophic chinese collapse for a long time for decades and twenty fifteen when the chinese stock market went down we saw the chinese government swiftly swing into action right they spro is all selling of state owned enterprises no shares are being sold there and they had all the traders informed very very quickly that they were caught short selling they would be arrested and then within a week or so the chinese stock market was just where it had been before they recovered dramatically from a really big downturn so i mean essentially in china you know a situation where the economy continues to grow and when there are problems the government steps in takes action and forces the economy to get better it's kind of a different set up well one of the things that they're doing in china is that

they're making these massive infrastructure improvements and that means it means dollars in their belt road initiative if you help us speak about that before and i'm just curious. peter whether or not you know when when the then president or then candidate trump was saying look we've got to do tax cuts and we've got to do infrastructure in the u.s. at that time the highest point he was talking about the highest amount was a trillion bucks him and hillary clinton were both talking about a trillion bucks in infrastructure would it have bed better to your may say none peter but would it have been better to do infrastructure as opposed to the tax cuts because wouldn't infrastructure have a longer term helpful impact on economic growth well i doubt it i mean i'd rather see government spending cuts and so if they spend i know you're going to go there but if you had to choose between the two peter. well look you know infrastructure spending doesn't stimulate the economy it's a drain on the economy in the short run you have to finance it so legitimately you

have to give up something else in order to divert resources to infrastructure it only helps the economy in the long run assuming that the infrastructure was worthwhile but you know when the government does things it over pays for things and over staffs you know it builds bridges to nowhere so in many cases you're just wasting money because there's no real economic benefit to be derived from the infrastructure what i want is the u.s. government to get out of the way so that profit seeking entrepreneurs can effectively allocate resources in a way that is going to grow the economy but when you're running these massive deficits whether it's the pay for government spending or tax cuts because we can't cut taxes and simultaneously grow government because government has to be paid for taxes or just how we pay for government but if we don't pay for it with taxes we're going to pay through it through debt or inflation which is just another form of tax only it's more insidious and ultimately more damaging and solute lee i thank you both so much for your time we're better informed because of both of you thank you

guys peter ship the c.e.o. and chief global strategist for europe acidic capital and r t correspondent and china expert caleb op and thanks guys. and time now for a quick break but hang here because when we return there's interesting krypto news about a multinational financial services firm plus how does one actually invest in crypto currency as the co-founder of counterpart x. kristie i is here and chill help spell it out for us and later the massachusetts institute of technology is making a major investment in computing and artificial intelligence and a start up in japan backed by toyota has created a robot that will clean your house all that coming up after a quick pause or approach will cause but here are the numbers the closing bell some relief for us changes today with three green arrows. on the big board back in a flash.

china is in the software it's in the hardware as opposed to this so-called threat from russia where they're spreading needs that influence people to vote against their better interest they put in a bernie sanders as a. bodybuilder and this war the minds of america to vote against their interests but china is actually infiltrating the hardware with actual chips transaction if we're trying the soccer or the actual malicious software that's ok we will talk about that. what politicians do you should. put themselves on the line they did accept the reject. so when you want to be president and you. want to listen. to going to the press this is

what the four three of the people. i'm interested in the war. welcome back catching up with german politics a local election could have out but how the outside influence on the german political scene and the economic future of europe after poll results came in this past weekend in bavaria chancellor angela merkel local conservative coalition partners the christian social union party or c.s.u. lost the absolute majority they have long held in the state the result is especially significant because bavarian c.s.u. leaders had notably co-opted the far right. alternative for germany's rhetoric on immigration issues and while the weakening of ms merkel and her party is not

a new story this time voters broke to the left with more defectors from the christian democrats supporting the pro immigration green party rather then the far right anti immigration alternative for germany party. and india is on the front lines of the fight to determine where your consumer data will go a new indian law on what is what authorities call data local localization took effect today the new law requires payment companies to keep all information they receive on purchases made by indians on servers get this located in india the draft bill was first on bailed in april of this year but as of today none of the major payment players pay pal visa american express eccentric have reached an agreement with the reserve bank of india or the region or the r. b. i rather on how to comply now the r.b.i. is considering imposing fines on the payment companies who say the six months since the r.b.i. unveiled the new draft was not enough time to implement changes to their information

systems some privacy and consumer advocates in india were critical of the law and the drafting processes whether or not the law benefits consumers it may benefit india based payment processors including pay t m a name familiar to boom busters. and koreans are making initial but historic steps toward economic reintegration of the railway and the united states is responding by threatening their south korean allies north and south korean diplomats met on monday to finalize an agreement to reopen railway links on the divided peninsula the korean diplomats also reportedly discuss various military deescalation measures and how they might compete to be selected as national co-host for the two thousand and thirty two olympics but the talk of renewed ties and relaxation of. south korean policies toward the north did not sit well with washington which insists all sanctions stay in place until there is more progress or north korean nuclear

disarmament on wednesday mr trump flatly predicted that south korea would not relax their policies toward the north without u.s. approval time will tell. the global financial firm fidelity is getting into crypto currencies ahead of many others in the financial sector fidelity says they will not only do so with regard to institutional investors at this point and then maybe later spin off and will investors what they call it is fidelity digital assets the limited liability company will be available for clients twenty four seven three sixty five reflecting the global nature of trading of crypto currencies fidelity is currently the fifth largest asset management company on the planet with offices in the u.s. canada countries in europe plus india china and japan. and speaking of crypto currencies we now move to the us how one might actually invest in kryptos and to do so we are joined by the co-founder of counterpart act

our friend christiane christy welcome we're glad to have you give so it might be hard for to believe but there are more than sixteen hundred crypto currencies out there some of them with crazy nutty names a lot of with crazy names but the question really comes to how do people actually invest how do they get into crypto currencies you've got a few ways to explain it for us all right so before investors actually tried a vest and one of the sixteen hundred coins they first need establish their base currencies now based currencies are currency and that coin theory i'm like klein and bitcoin catch all of the names we've all heard exactly those base coins can be purchased with fiat currency regular money like u.s. dollars all the sixteen hundred cannot so they first need a five one of these basic points from a centralized exchange centralized exchanges are some names very familiar names such as crack in the next i think we've got

a chart here these are these are exchanges that are located all over the world is a little complicated here but primarily where they based kristie yes so as you can see the in the yellow the majority of these exchanges are actually based in japan japan and u.s. dollars are the most frequently traded currencies right now in currencies and as you can see coin check bit flyer stamp and coin those are the dominant players within the exchange space you see like you say the the large amount of different currencies that are going into kryptos here we have japan so that is taking up a lion's share this is the u.s. in the light blue here and then that europe you know so even if you take and then there's china china here so even if you take these together we're talking a lot of interest in asia then the u.s. and then of course. in the you so once you get one of these regular based coins like the coin or theory and then you can buy one of these other sixteen

hundred all coins but that's going through one of these exchanges but there's a hook to exchanges right you don't actually own the bit going through whatever it is explaining that you don't technically own it it's very similar to keeping your money at a bank yes you own an account with the bank but the bank holds your money so if anything were to happen to the bank such as the bank or there's a run on the bank your money is at stake and same with these crypto currencies these exchanges hold your crypto currency so they all own and a whole go wallet you don't actually own it so if it were to say get hacked then your crypto currency will all get lost so that's why security is a very major factor when deciding which exchange to purchase if you want to own yourself we've got to go back to the other chart we've got other ways you can do it and that involves a digital digital wallet right at the other chargeback you're the second way to do it and that's where you can actually have it and you only if you're so right explain that exactly so a digital wallet whether it be a software are a hardware

a wallet you own your own wallet which means you have to keep track of pascoe's and you actually hold and own your big client and and likewise coins so with that you have to first fill it with coins once you create a digital wallet there are many ways to do that you can actually withdraw money from the exchange and put it into a digital wallet directly or other ways you can do it is a peer to peer transfer you find someone who has a big point you pay them money and such as yourself and you will send me into my digital wallet another way is via a coin a.t.m. this is very popular and there's over two thousand a tense in the us over three thousand worldwide and it's very easy to find a big point a.t.m. as the maps are very readily available online so you can go to a site and get a digital wallet so if you're just yahoo or google digital wallets their wallet is the most common in nigeria wallet is a place people go and that. take you through the steps and then you could give me your bank account information so be careful guys and you can actually then get crypto so that's the way you actually get it and then the last area explained as we

talk about those all the time on the program explain additional coin offerings how you can get crypto out of those so initial coins offerings are very interesting if you want to invest in one of these it's very similar to an i.p.o. i.p.o. quite i.p.o.'s are stock that aren't listed on an exchange at similar these coins are not listed on any exchange yet so if you are interested in a project and i see a foreign investment purpose then you would have to submit your base currencies that you previously bought in your crypto exchanges are a peer to peer transfer and send it to these i see offerings for an investment and one thing i always tell people with my formal regulatory hat on here be careful one of the main things people need to be careful of and watch out for kristie many thing that i see all quite often is as we know there are many i.c.'s there on the market and people have to do their research and be careful that it's a real company and not a fraudulent company people really need to protect their passwords and pass codes because that's the only barrier stopping them from potentially being hacked and

also for peer to peer transfers you really need to be aware of your car party and have trust in whoever has that they quite really is going to send it to you because there's no escrow service there's no repercussions in case you send them six thousand dollars and they don't send you a pic line so until that problem gets solved people really need to be a careful about who they trust and who they decide to engage in business with and just last thing for our viewers we're not telling you to get a bit coy always be careful where you put your hard earned money but if you want to do it this is how christie has been great exposure thank you christi thank you. and before we go to stories of note the massachusetts institute of technology is set to invest one billion dollars in computing an artificial intelligence making mit of the largest such u.s.

university program mit was a pioneer in artificial intelligence research dating back to the one nine hundred fifty s. the program which will have an infusion of three hundred fifty million dollars a contribution from blackstone group co-founder steve schwarzman nearly doubles the current resource allocation to mit's computing and a program called mit intelligence quest. and sticking with ai toyota motor corporation is investing in a startup that uses artificial intelligence for robots and they are just dandy robots these can pick up after your children or your spouse or even you i suppose by doing daily tasks such as picking up and placing toys in their proper place loading a dishwasher and even keeping an inventory of household items through a built in camera the robot can see and identify objects and a term and what to do with them in the home it can even locate and bring objects to people robot find my phone and bring it to me wouldn't it be nice. that's all the

time we have thanks to all of you and to all the robots out there for joining us you can catch boom bust on youtube dot com slash r.t. so long for now. do you know more. on the or. not. oh your. move for your.

over the loans decade russia's foreign policy has been deeply related to the united states sense approach at the wall when the american political reality became stranger than fiction mosco once the bilateral relations to get back to normalcy what exactly should it do. people still support. the. cyclone that's still but it's. nineteen people were killed and at least seventy injured in a shooting and bomb attack the college in the south in russian city of kids carried out by eighteen year old students trustee has left those who survived show. a move will be dissolved imo if the all the boys even thought.