as president he and russian president putin are making moves today at. forum in the wake of u.s. economic pressure correspondent alex hello to analyze what this means for the world economy going forward this meeting comes as china is facing the threat of an economic slowdown professor richard walters on hand to analyze the latest risk facing the world's 2nd largest economy and finally with a shaky bridge ahead market central banks are beginning to ramp up ward. of euro pacific taken why the nations are stockpiling the precious metals. today let's go and. an intersection of political and economic some intrigue leads our global report today as the presidents of russia and china meet in moscow before the the it's and these st petersburg economic forum president xi jinping talks with his russian counterpart vladimir putin kick off a 3 day state visit that also commemorates their 70th anniversary of the

establishment of diplomatic relations but you leaders will sign economic cooperation agreements on issues including finance and energy in 2018 trade between train and russia grew by 25 percent to a new record of $108000000000.00 china is russia's top trading partner here to do a little deeper into the details of the meeting as r.t. correspondent alex mahela it so alex what was discussed so far by the chinese and russian leaders related related to their fall term relationships with the u.s. what can you tell us. you know relations between the u.s. and russia and china are strained that's us in the both of them not between russia and china so when you look at this situation china and russia are now reacting for china of course we know about this trade war that's going on and it just seems to be getting worse china has actually gone so far as to call the u.s. an economic terrorist so yeah that those are pretty hard words and of course for

good reason we're talking about hundreds of billions of dollars in terror of between the 2 nations instigated by the u.s. with russia there's those controversial tariffs i should say sanctions as well that are ongoing from the united states so now these 2 countries are saying hey let's strengthen our relationship work huge we're massive we're in the top 3 arguably i'd say that they are that they should basically become what they can become economically together now these 2 organizations since i should say countries since 2013 have met nearly 30 times and when i say they have met i mean president g. and president putin the 2 of them that's pretty high especially when you see into a true national relations between a people at that level break it down look it comes down to the fact of what daniel said right off the top this is really critical to 201825 percent increase in trade between the 2 nations and that's a 43 percent increase of exports from russia to china absolutely massive

now we know that for russia china is its biggest trading partner and she has even come out and called president putin his best and bosom friend so you can see that the relations between these 2 nations are getting stronger we're hearing that within the 3 days that president jeans vision of visiting russia that they will sign around 30 agreements in energy and trade and security so it's a big deal what's happening right now yeah very interesting alex a lot of both economic and geo political factors pushing these. the leaders together to pursue that meaningful relationship they seem to have we're also hearing talk that the russian and chinese leaders these talks will further their discussion about moving away from the u.s. dollar we've heard a lot about this what's the latest this is huge i'm going to give you a quote right now from president putin himself who is talking to journalists he said russia and china tend to develop the practice of settlements in national

currencies know what that means in their own national currencies that you want in the ruble when they're trading they're going to be pushing these 2 currencies they're going to take the u.s. dollar out of there as much as they possibly can this is going to be especially predominant in the energy sector russia is the biggest export of crude to china and it will be the biggest exporter of natural gas very soon as well so in that in that sector in energy that's going to be absolutely massive you also have to look at the fact that right now up to 70 to 90 percent of all trade between the 2 nations is done in the u.s. dollar so when this kicks in the u.s. dollar might be in trouble because we know what the standard currency what used to be the gold standard the u.s. dollar means to the world this is going to be a big punch to that and of course walking away from the reliance of the u.s. dollar could be a move that could actually be earth shattering in a sense other countries might fall excellent insights there are to correspondent alex mahila bitch thanks for your time thank you. for the china u.s.

trade war and a deadlock the 2 world superpowers are hedging their options and reducing their reliance on each other's exports china is determined to build a strong self-sustaining semiconductor supply chain and wean itself off u.s. chips by 70 percent and 2025 meanwhile the u.s. is laying out a major strategy to reduce its reliance on rare earth exports from china including advancing r. and d. on domestic supply chains increasing trade and collaborating with allies and access a mineral sources in the u.s. and streamlining mining permits these men. exports are deemed critical for consumer electronics and military equipment and 80 percent of u.s. imports of rare earths come from china and recent years the industry is significantly underdeveloped in the u.s. and while investments are being deployed to build the infrastructure apart from mining and process say they won't be coming online until 2022 at the earliest. and now here to talk about the latest developments around china trade and the global

economy is richard wolfe professor emeritus of economics at the university of massachusetts amherst and the author of democracy at work a cure for capitalism professor wolfe welcome back 1st of all we wanted to get your take on the international monetary fund and their downgrade of growth projections for china in 2019 it's a small cut from 6.3 percent to 6.2 but it is a notable reversal from just 2 months ago when they raised it to 6.3 and the reason they cite for the changes the latest trump tariffs against china so professor 1st of all is that small adjustment by the i.m.f. fully accounting for the possible effects of these increased trade tensions. the impact be greater. they could be greater and i would not be surprised if they have increased the reduction of growth projections for china we're now seeing that having had several months or even

a year or so of the tower of war back and forth between china and the united states we're beginning to see the economic consequences i should stress for your audience not just in china but in the united states too at so severe in both countries and so under reported for all kinds of obvious reasons that you can tell the tension building because when mr trump over the last week extended the kinds of threats he's made against china to mexico even his own republican party in the senate refused basically to go along with it because of the damage these things are doing to the economies of texas where senator cruz said this and other places as well so it's not just in china that growth is being affected this war on china on mexico and basically on the whole world is a ploy of the president of the united states to position himself as the big tough

guy protecting america risking the future of the world economy and of the united states in it to win reelection next year and people should begin to understand that the costs of that political maneuver are now rising and include the very meeting between z. and putin that you're just finished talking about. now on the other side of the trade fight chinese importers that is chinese companies buying products from the u.s. suppliers they have officially applied for waivers from the finance ministry on chinese terrace now these applications are responses * to the list of items including beef pork soybeans and tractors and that would be considered for waivers published by the ministry how much relief if any might chinese importers get from those waivers . i think that depends entirely on the how bad the how much relief american importers are getting or not getting from the american side every step of this

trade war has been aggressive and starting of it from the united states and a measured lower level of response from china i see no reason that that process is going to change so as the united states either accept or reject exemptions for u.s. importers my guess is the chinese government will do likewise for chinese importers that are in the same position makes sense and speaking of tariffs on another front of the trump trade war the mexican foreign minister marcello or broward is in washington is here today meeting with us the vice president mike pence to try to prevent the imposition of tariffs on mexican exports to the u.s. on june 10th this coming monday according to the trump twitter threat white house aides are saying they think the president seems set on pulling the trigger if the mexican delegation doesn't give him what he wants an immigration whatever that is

it's not clear and that's despite growing opposition in the republican senate so will we see those tears take effect on monday. my guess is you're going to see some last minute maneuvering i wish i could give you a clear answer but basically what you have is the entire establishment of the united states the business elite on both the democratic and republican sides the government the finance ministry of all countries are pushing not to do this but mr trump believes that his reelection which is clearly his number one objective depends on it how this gets worked out is being handled in private meetings of great urgency in washington and that this point it's every. ones guess because the poor republicans and i say that with tongue in cheek have to decide whether their future lies with being mr trump's poodles and doing what he wants and writing him

into office again or actually saying no you've now gone one step too far. now going back to china ford has just been hit with a fine of $23600000.00 by china's antitrust regulator 4 was in a joint venture with a chinese company chain thailand and regulators say that the joy mentor suppress prices some are noting that the last time the regulator took some or actions against a u.s. company against general motors in 2016 that came after president elect from began tweeting about starting this fight with china is this retaliation is this a retaliation move and what will you see more of this. i believe it is a retaliation an idea that it's the same pattern the united states attacks the while way cooperation much more harshly much more damaging much more money involved than what was just done by the government in driving the to the ford motor

company once again china is say we will do what we need to do we're letting you see the whole world see that you take the big additional step we have a measured response so that the world understands and zeus is the key thing to do business with an american company or in the united states has become much more risky and dangerous that it was before trump and the effect of readjusting the world is every corporation that has to deal with the united states those are going to play out over years when we've all forgotten is the drumbeats a very serious setback for the united states that is unfolding before our eyes. canonic update from professor richard wolfe thanks so much for your time. what. time now for a quick break here because when we return with

a shaky bridge ahead for global markets central banks are beginning to ramp up on gold for its leadership of europe a civic health and begin to why nations are stockpiling of precious metals and as we go to break here the numbers at the club. plt . live. player has the time come for google and other big tech companies there's a growing consensus the near monopoly status of many of these companies is bad for competition bad for the consumer and even for freedom of speech no doubt silicon valley is lowering our place.

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the european commission is once again warning italy that it's violating the rules on spending and debt commission put italy on notice wednesday with a report outlining italy's noncompliance including a public debt equivalent of 132 percent of italy's g.d.p. the report initializes a formal disciplinary process that could lead to sanctions against italy italy and the e.u. went through the same process over the same issues last year roman brussels seem to have irreconcilable views on the path to economic stability for italy with the commission insisting more budget austerity is necessary condition for growth italy

deputy prime minister tales of any flatly rejected that approach saying with cuts sanctions and austerity we have seen an increase in debt poverty insecurity and unemployment we must do the opposite. the minister oil is part of is still struggling after exports of crude and refined oil fell by 17 percent in may the energy companies exports filter just $874500.00 barrels per day in may fall in line for buyers to stop purchasing oil in order to comply with u.s. sanctions against south america's largest oil producer venezuela has been. draining their stockpile since january when washington instituted the sanctions on paid of a so in order to mean export and maintain exports of $1000000.00 per barrel per day through april and may i was able to ship a total of $33.00 cargos of crude in fuel mainly to asian countries exports to any a fell by a 3rd 218-7000 barrels per day china's imports of venezuelan products remain close

to 4 $150000.00 barrels per day meanwhile russia's state oil enterprise rosneft which receives while as repayment for billions of dollars in loans to venezuela was the largest importer of pet of bases oil meanwhile europe received around 8 percent of the vote on venezuelan product steady with previous months and exports to cuba nearly doubled and may. taking the turn from venezuelan oil to gold the south american nation roiled in political turmoil has defaulted on a gold swap agreement valued at $75000000.00 with deutsche bank the default has put the lender in the position to take control of the 20 tons of gold used as collateral for a loan and close out the contract this is not the 1st issue the venezuelan government has had on making good on financial agreements their central bank missed a march deadline to buy back gold from citi group for nearly $1100000000.00 prior to that the bank of england refused to return $1200000000.00 worth of venezuelan

gold for more on this and other gold related issues we are joined by euro pacific capital c.e.o. peter schiff peter welcome back to the show what do you make of this messy situation with venezuela's gold reserves and this default would do it your bank. well you know that as well is that a lot of trouble they unfortunately adopted democratic socialism and now they are paying the price and now they're you know losing their gold which is something that venezuela is going to badly need if they want to try to reestablish some type of viable currency they're going to need gold reserves to. do it and it appears that they're going to lose you know what that portion of their reserves the key is that they actually have the gold that they pledged to have it and are is a deutsche bank going to get the loan as collateral or as or not quite enough gold there to satisfy the loan. and also serbia and the philippines are among the other countries apparently taking steps to bolster their gold reserves serbia is working

to increase their gold reserves from $20.00 to $30.00 tons by the end of this year with the goal of holding 50 tons of bowling and by the end of 2020 and last week the central bank of the philippines announced a new law that exempted gold sales by small scale miners to the bank from excise duties and income taxes are these moves due to a concern over the strength of the dollar and a resort to gold reserves. well not the strength of the dollar but it's the potential future weakness of the dollar that's why i think you're going to have a global gold rush on the part of central banks to build up their gold reserves preparing for a dollar crisis you know for years and years the federal reserve was pretending that they could normalize interest rates in unwind the balance sheet but that was all a pretense they could not do that i've known that for the beginning but the world's about to figure it out because the fed's going to go back to 0 they're going to do

more quantitative easing and so the balance sheet is going to blow up to new highs we're going back to 0 and people are going to figure out around the world that the fed is stock that rates are going to remain low regardless of how high inflation goes in the united states and inflation is about to go through the roof and that means the dollar's going to go through the floor and that means the world needs an alternative to the u.s. dollar and the best alternative is what the dollar supplanted and that's gold gold was the reserve until the dollar came along and the dollar only became the reserve because it was backed by gold and redeemable in gold well we you know we defaulted on. those obligations is 1971 but the dollar as a fee of currency is continue to serve as a reserve well the days that the dollar is the reserve currency are numbered and the smart central banks are trying to buy as much gold as they can before the number is up now during the feature of asia conference in tokyo last week the malaysian prime minister mohammad suggested that youth asian nations should adopt

a common currency backed by gold saying that at the moment we have to depend upon the u.s. dollar but the u.s. dollar is also not stable so the currency that we propose should be based on gold because all those much more stable the common came shortly after the trumpet ministration named malaysia as one of the 9 countries that need close scrutiny as possible currency manipulator what i thought on malaysia as a currency manipulator and does a common currency backed by gold solve that problem. well you know all currency should be backed by gold and again at one time they were that's what gives currency value is the gold that backs it up so i think that is the right move i think ultimately more central banks around the world are going to be looking to tie their currencies to real money to gold and that is going to undermine the dollar you know everybody that wants to accuse foreign central banks of manipulating their currencies in a way they have been doing that they've been manipulating their currencies down to

prop up the dollar over the years that's generally been what's happened because people export as want to preserve the u.s. market as a market for their exports but i think people are going to see the folly of that and i think you know soon you're going to see the dollar sinking and all these currencies are these export nations are going to be rising and what that's going to do is that's going to unleash tremendous purchasing power outside of the united states and a lot of countries in southeast asia that have been exploiting products to the united states are going to consume the products that they produce themselves rather than send them to the united states and that's manning europa's of. capital c.e.o. peter schiff thanks routes on. any time. japanese tax authorities are investigating the underreporting cryptocurrency profits this move was prompted by the finding of 30 farms in japan who did not

declare cryptocurrency income worth over 10000000000 yen how serious and prevalent is this problem how are they hiding gains japan is now taking steps to increase the the transparency of. story transactions starting in january. kristie can you tell us more about this yes so this i was actually a really interesting case study and japan for one this is actually a very prevalent problem simply because this their tax at such astronomical amounts cryptocurrency is taxed as miscellaneous income that is a 55 percent tax on most of these traders and so for traders when they're trying to use regular equity in stocks they're only getting taxed at 20 percent so saying that that is unfair it would lead to a lot of these people wanting to hide their games and so they actually took to some very creative ways a hiding it for example there were these consulting companies that were actually set up so if you were a consulting company i made a lot of gain you would actually come to me and say hey give me $10000000.00 worth

of i pay that quite you give me an invoice saying that you charge me $10000000.00 for a consultant fee and so then secretly under the radar you would actually return to me $8000000.00 you keeping to put $2000000.00 as a feat so that would actually write off 10000000 as a deductible and they found that this was actually very prevalent in japan from a lot of these trading firms who made so much back in 2017 that they attempted to hide their income and. very interesting and the. u.s. securities and exchange commission is suing messaging kick over there in 2007. initial corn offering that raise $100000000.00 c.c. claims that violated federal securities laws by not registering the sale of their token maine coon once upon a time it was a major player in the messaging up business the f.c.c. claims that could last users and revenue when the company used the i.c.u. as a quote hail mary pass to stay afloat then claim they were using

a platform for that which would allow them to pay others with a decentralized cryptocurrency. wow just another day another big player trying to get in crypto currency so to get in trouble here what's your take on this kristie so cake was actually a really popular apps and then when they launched that i.c.a.o. they said this was a form of being able to pay other users whether it's for they made a funny gift or whether for images it was meant to be used as a reward system if you will so that's why when they raise their i see they didn't think that they were breaking any securities test a security is as defined by the how we test and so by that regulation they're not supposed to be involved in any sort of game so by that logic they are now saying to the f.c.c. it's overreaching by saying that kick now has to is actually a security under the how we test they say that they're actually overreaching and they are fighting for it because it's simply a reward not a game and so they're trying to make

a very fine distinction and i think this is going to be very important for a lot of these i.c.'s going forward a lot of those actually fell under scrutiny and none of them had the funds to be able to fight the f.c.c. kick is the 1st one that currently is big enough and has the ne means and resources to actually put up a legitimate fight so it'll be very interesting to see whether or not they can overturn a how we test and perhaps make a new version of a securities rule that's actually applicable for the cup of cards the industry as a whole there it is the how we just folks always learning something about cryptocurrency on the show that's it for this time don't forget you can catch. you tube dot com sled. boom bust our teeth see you next time.

since. who is legitimate is a question that is crucial in libya and the one who needs to decide that is the libyan people that is why we should carefully slowly going to agilely legally go into elections today you have basically 2 parties so everybody laban's the other the way he wants because that is instead a deep crisis of legitimacy and this crisis of legitimacy cannot be sold by going to be a little. bit of the project was good if you give up on your preferred the largest you mrs you don't blame people what. news of them was the response to move cheaper food in the

indoor. pool says i should be a model which agrees with. this. still no plus you you presume this loop i'm going to miss lloyd museo most fear to move him her used to the both of us and us going at evening continue posting boning is meaning to their history of trees to. open their eyes to ask her. to critique your eyes because there is a good move to you know what who are you more you would almost. if the whole truth and doing. some good you will meet someone who knows the. new moon a star for the most. and also way as. some wise man once said currency wars lead to trade wars. more so we've had currency

wars that's been going on now for 10 years 15 years really particularly with china you know they artificially keep their currency low export their way to becoming a large economy and now this is led to trade wars. pretty much declaring secession from the global economy as we go to neo mercantile ism age of globalization and monetarism and dollars ation is over and you know look at the globe we've got a few little hot spots there the encroaching hot war scenario is upon us. the russian and chinese presidents herald the current state of relations between their countries has it changing paying begins a state visit to moscow. a republican congressman defends a u.s. navy seal accused of war crimes saying killing civilians is part of the job.