on the all excitement and i'll be speaking to us of the world of politics sport i'm show business i'll see you then. welcome to. the outlook for the global economy is turning darker as workplaces brax it and blowback from u.s. china tensions all gloom and doom i ask dr jake a prank on the chairman of j.p. morgan chase international. as the world economy recovers from the shock of two thousand and eight but the picture isn't so bright and go through i'm certain the instability is pushing people into radical politics and the backlash against the

system is already being felt across the planet with trade barriers and conflicts returning will the stress on the global financial system cause it to crash again can this boom and bust cycle finally be broken or is catastrophe just around the corner. jacob frenkel it's really great to have in our show today my president all right so lots to talk about after last year's davos on what you have actually cited the growing global doubt level as a concern but this year we have a china u.s. standoff that you think is also a big problem to the global economy do you think we're looking at a recession to come. to. the world is a very global entity countries in the world connected. in a way begins the nature of the integrated. world to have barriers

and to create trade tensions so as an introduction i would like to say that in my judgment the chinese us standoff as far as the trade skill mischa's is the major issue but you are perfectly right that. we arrived to this year which is the tenth anniversary of the large financial crisis crisis that started from large debt levels we arrived to this year from the legacy of large debt levels and now we see the debt continuing to grow so to gether the rising debt which is fragility of the financial system and the rising trade tension which is for g.d.p. of the trading system can translate itself into for g.d.p. of the world international and that's something to watch for do you think the same

as your colleagues from j.p. morgan the twenty twenty stare when the big recession is going to hit the world and we're going to see a social unrest in st since one thousand nine hundred sixty eight and defeat think that's the case to think could be averted and how well i think that not all of my colleagues think that way and develop views they all over in in general when i'm driving and i see a war it's very important to warn and say we can do for there is a war. i can declare that there is across or i can say change the direction prevent the accident so i think that what is now called for is to sound the alarm and say if we are not going to change something this will not end up nicely but we have the opportunity to change we need to change because

there is too much to lose i just want to say that while a decade ago they feel in the height of the crisis they feel was that the ground disappears and we are going to implode. most of the economies of the world today. doing reasonably well yes we can see and highlight well the difficulties are but the world has resumed its growth in fact all the regions of the world are now growing in a positive way so we need to look at it with this perspective there is a lot to do some dangers but we are not coming to it from a crisis boat but would you say they were completely past the two thousand and eight crash because you have said that this year is the best year since two thousand and eight but we still see falling wages in the year saying national economies are doing way inequality between which and poor has grown drastically

never seen before it's almost like being hit by with all from a bomb that was dropped ten years ago did you think we're ever going to be past two thousand and eight completely in a way to say that i hope that we should not in a way what we should always have is the memory of that event so that we don't repeat the mistakes it is in dissents that it will stay with us however many of the flaws this characterize the especially financial system have been riveted but the problem is that the crisis of tomorrow will not be the same as the crisis of yesterday so we need to deal with resilience you know there are always three phases when we talk about crisis there is a crisis prevention phase there is a crisis management phase and this is there is a crisis resolution phase crisis prevention is the most important one and it's the

most boring one politicians wake up normally only when they see danger and if you tell them just prevent the danger they say we don't have a danger what's the problem so that's something to watch for i think that. the system now you mention properly has a lot of tensions in it that come from a very. gap between the rich and the pool this distribution of income the distribution of wealth and the feeling of much of large parts of the population that somehow they do not benefit from the overall growth of the economy this is something which is a public finance public policy challenge that needs to be addressed but also i feel like the consequences in two thousand and eight aren't just economical i think it's

like social and political because falling economy means frustration of the masses you brought that up in the beginning which leads to the rise of what is called populism the rise of other forms of discontent like yellow vests in france right now like a very serious thing do you think we'll see more political consequences of two thousand and eight do you feel like the global community politicians that you're talking about economies there are ready to prevent this new financial crash are we better and more prepared right now where we may be more prepared but the challenges are also big because one of the unfortunate outcomes of the two thousand and eight . was the loss of trust the feeling that somehow leadership is not leading us to where we want to be and it's true in the corporate sector it's true in the political arena it's true in the social sector somehow large parts of the population feel that they are not being led properly

which means there is this kind of aura which i'm not through is correct which means there is the owner of our leaders have failed expels have failed and what does it mean it means let's take a new leader let's take known experts let's. take a complete outsider and if somebody was in the system before he's already disadvantaged i can see the. kind of emotional attraction to the great danger do you think this gather behind like the out of the system character that is very fashionable all around the world right now do you think that will not lead people to a good place no it will it's a very dangerous area and the reason is the world is very complex you really need to have the experts you cannot allow us to drive these complex calls or to

be the pilots of this play out of the people will tell if experts have failed people and we don't trust them anymore i mean the way i say because a lot of people criticize truck right now for being protectionist for waging trade wars but you know a lot and a lot of experts are saying do not kill trade do not do protectionism this is really bad not for american economy but for the global economy but then there are people who are gathering around him and the way i see trump is just an example could be anyone else in his place and some broken trust between the society and the financial economic elite and that needs to be restored you're absolutely right so identifying the problem is phase number one phase number two is identifying the solution the solution does not mean. to drive the complex cause the solution means let's learn from history what has worked and what

has not worked. history did not start with trump and you are absolutely right trump is not just the name of a person it's a name of a phenomenon so you have bracks it crisis in the u.k. you have the entire east in france the lappin the years the yellow west you have in hungary or been and a lot of populism over there i think the entire issue of the margraf free of the refugees of migration has in a way preoccupied the policy the policy makers time and attention in europe and diverted attention from the growth and socially quickly boom objectives so all of those are right but history started much earlier and we have one learned one lesson from history openness helps millions of people all over the world

have been elevated from poverty because of access to technologies form abroad to trade to education to knowledge openness is not just trade openness is a mindset mindset that says let's get the best from everywhere not only from what we produce and therefore since the storms do not happen exactly in the same time in all places it's a great privilege that when i have a challenge i can benefit from the prosperity of the other countries through trade because when the next round comes they have a challenge they will benefit from the prosperity for my country so international trade and commerce in services and financials and knowledge and people is has proven to be the key for economic prosperity and growth so let's not allow

short term. situations and short term city's fiction which helps psychological to destroy the tree that gives us the you know what like. average question what tell you i don't want to think twenty thirty forty years i had our own take care of my life now and you know they're like the protectionist profer traction people that came to power like trump and he wants to kill of the trade deals that were working for tens and tens of years and are working fine but then he'll tell you i have created three point five million jobs and people are quite happy with it and i don't think they want to think i had thirty forty years of let's not kill trade because protectionism is bad because in forty years you live better what are you going to say to that he has to respond for three point five million jobs for americans right. i'm not sure that he has created but

a lot of jobs that have been created many of the protectionist also. being open to technology into knowledge into extra old denarii human capital that has by grated into the u.s. and has contributed to it. it's not a very simple thing but if you ask me so why do we need what is leadership about is the ever rich person say i want to make sure that i feel is the man fairly and that i have a good meal on my table that my favorite takes skill is they can kill today tomorrow. and the role of the leader is to come and say let's make sure that it happens not only today and tomorrow but also next year and the next century yes leaders really need to have a comp us which is more all fall cited than the one of the families that

are under pressure i'm not grading them there will be no intellectually or anything but we must understand that in order to an able to their children to have what they want to have we need to create the infrastructure in the world although that will bring it about talking frank i'm going to take a break right now while we're back the indian talking to dr jacob frenkel head of j.p. morgan chase international stay with us. in an in the. in my.

when the whole make this manufacture come sentenced to public wealth. when the ruling classes protect themselves. with the crime and merry go round lifts only the one percent. we can all middle of the room signals. the real news group. you know world of big partisan movies 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 smarter 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. maximizers financial survival guide stacey let's learn a salad fill out let's say i'm not so i get any earthly grease banks have to fight . thank you for something. in the story that's true if that's slavery.

and we're back with dr jacob frankel had a j.p. morgan chase international dr frankel so that the class of people there are hit the most by this economic crisis that turn into social unrest is the middle class in the west and they're saying hey you know we want economic equality because when while while they're being hit by a crisis their lives are getting drastically richer and richer and that's an undeniable fact so do you think what they want this equality will be beneficial from the coble economy let's say we just start this massive anti-trust tax to reach all over the west do you think it's a good thing for the global economy i think that you're bringing a very deep issue which has been in debate for ages among economists the

trade off between efficiency and equity how can you ensure. that when you are out helping the society to be more equitable through transfers from the rich to the poor cetera that you also maintain efficiency in the economy so that you don't have you don't cut the trees that gives you the fruits what do i have in mind i'll take it to a power docs suppose that you take you cut half of the g.d.p. product of the country and you take that half and you distribute it equally to everyone you will win the nobel prize by saying i have full equality but you have equality of misery. you want to make sure that the quality is not just a slogan of misery but it also is associated with a rise in the standard of living how can you have

a rise in the standard of living by having people who are rich are saving investing broadening and increasing the size of the national party so that we can distribute more to everyone so if you're going just to tax the rich mindlessly the rich so-called what will they do they will say why should i save i'm going to be taxed anyhow so i will cut my saving and i will give a big party and we will sound happy we will have more to consume but for the next generation there will be less because we have not saved and why haven't we saved because the government is about to tax us and distribute it so. delicate issues of how to achieve social norms that bring about taking care of the pooh and equality at the same time not destroying the future and

therefore i think i want to put only one major principle on the table the key issue is not equality of income the key issue is equality of opportunities we really must make sure that those who are under privileged parts of the society have the opportunity to. elevate themselves so that over time their children will be in a better part in the society world where does it come it comes not by giving them meal on the table per say but by giving them education by given them the power to do it and that's not by just distributing the power so if we speak as of today we'll just say the gap of access to opportunities is as wide as the gap between rich and poor today i'm not sure i can generalize it but i would

definitely i would definitely. use that metric. to assess the pictures that they see so if they see today qualities especially in the u.s. they are between the black this panic the. the didn't the not the known minorities you have great games and it creates social tensions it brings about crime and it really destroys a generation the way to go about it is to ask not let's punish them and put them in jail but rather what brought it about how come the kid had to go to the supermarket and steal a loaf of bread why isn't in school during that time what is happening to the parents etc that's where education comes in a really poor highest weight on education and i think this is this is the key for

the future in a lot of experts are also saying that. trying to engineer of the world economy in the future going to be china and india to agree with that and if that's true then maybe we should just sort of all relax because they can a poor through. china and india are indeed they are different from each other in terms of systems etc laos populations of course they have been growing at a very rapid pace and in a few years not many china will surpass the u.s. to me this means not can i sit down and relax because they will carry the day but rather how do the major parts of the world in this particular case u.s. and china make sure that there is positive interaction between them and there is no greater awareness that the those two pilots of the world

economy need to talk to each other you know i told you that in many countries economic conditions are now as measured are much better than they were a decade ago and yet people are worried i'm very worried and i ask myself why i have a feeling that people you and i are sitting now in the. we can have a nice coffee we can talk but if i'm telling you that the two pilots in a plane. not getting along with each other you will not be very happy to sit in the couch even if you sit in first class and you're on the plane people are nervous when they see that there are two major countries in the world in confrontation you can call it negotiations

or you can call it confrontation and the difference between them is very delicate. and i very much hope that the trade discussions today between china and the us will move in the right way and you would be surprised once there is a positive indication how much the mood in the world and the financial markets is the best referendum about the mood how much is the mood going to be picked up but how can you have a win win situation because someone will have to give in it or china or america don't feel like anyone's wanting band there will be a win win because the nature of trade is a win win project the nature of trade is i trade with you you trade with me both of us are better off and therefore if we upset that

equation both of us are worse off and the trade negotiation of the skirmishes about who gets more of the overall benefits and we need to be careful that the two sides would not get less from the overall benefits that are of the possibility they are genuine issues and each side must give up on the less important parts i'll give you for example in the us there is a very strong feeling that especially when it comes to technology the property rights on technology that china is not playing fair game in taking action from military air rights so for us it's a very important thing this will be the key. then the bread and butter that they sell in the queue ever since i won my iran doesn't seem like

anyone's trying to figure out what to do with it i mean it's a key it's a key issue but it's not getting resolved well you have a different leadership today in the u.s. in a different leadership today in china. both are. not so different but then event the important point is that. that's why it is tough but are really the stakes are very very high the only way to justify a trajectory that needs to be taken is by recognizing the damage of the alternative trajectory and i don't know what intelligence i'll tell you what's the worst fascination fragmentation trade war listen the world is very complex so if the us is imposing tariffs on china china is importing less inputs from the rest of asia allies of the

us the incidence of the in the war is very different than what is intended you try to them a china you'd have a geo your allies you have an issue the world is much more complex you have europe along along the way i really think that. the populations of the world will benefit much more from openness than from closed jacob frenkel thank you very much for this interview all the best of luck with everything thank you.

perfect there's someone else living inside of me controlling my body. the byproduct of the drug the the cause like severe depression. because a little you need him into a zombie it's crazy. you know we don't have to do anything it's not our fault this is crazy and all that. here's a traumatic time to get rid of. what politicians do something. they put themselves on the line to get accepted or rejected. so when you want to be president i'm sure more somehow wanted.

to go right to be cross with the life of a full screen the more can't be good. i'm interested always in the waters of our. first signal. in twenty forty you know bloody revolution if you chris. the demonstrations going to be relatively peaceful political protests to be creasing the violent revolution is always spontaneous or is it just the war here. is put in the new bill is that i mean you split needle the former ukrainian president recalls the events of twenty fourteen. days from to vote invested over five billion dollars to assist ukraine in these and other goals that will ensure a secure and prosperous and democratic.

and. the same sources that we use in our story are standing behind a. new side buzz feed defends a controversial report implicating the us president in a serious crime despite the fact that special counsel robert miller's office rejected it as inaccurate. time for plan b. the u.k.'s embattled prime minister prepares to return to of parliament with a revised the e.u. divorce deal as a top cabinet minister warns the whole break that process is now at risk of being do rail. and a federal judge in new york blocks an attempt by the trumpet ministration to add a question about citizenship to the twenty twenty.