now let's go and. an intersection of political and economic some intrigue leads are global reports today as the presidents of russia and china meet in moscow before 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 the 2 leaders will sign economic cooperation agreements on issues including finance and energy in 2018 trade between china and russia grew by 25 percent to a new record of $108000000000.00 china is russia's top trading partner it is building a little deeper into the details of the meeting as r.t. correspondent alex ferrer that so alex what was discussed so far by the chinese and russian leaders related related to their relationships with the u.s. what can you tell us. you know relations between the u.s.

and russia and china are strained let'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 spitting in the 2 nations instigated by the u.s. with russia there is 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 we're huge we're massive we're in the top 3 arguably i'd say that they are and that they should basically become what they can become economically together now these 2 organizations since 2000 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

international relations between 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 is 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 jeanne's vision of visiting russia that they will sign around 30 agreements in energy in trade and in 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 leaders together to

pursue that meaningful relationship they seem to have we're also hearing talk that the russian and chinese leaders at 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 now what that means in their own national currency is 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 as specially predominant in the energy sector russia is the biggest export our crude to china and it will be the biggest export 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 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 it 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 2 correspondent alex mahila bitch thanks for your time thank you. with 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 accessing mineral sources in the u.s. and streamlining mining permits these mineral exports are deemed critical for

consumer electronics and military equipment and 80 percent of u.s. imports of rare earths come from china in 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 change is the latest trend tariffs against china so professor 1st of all is. small adjustment by the i.m.f.

fully accounting for the possible effects of these increased trade tensions of course the impact be greater. they could be greater and i would not be surprised if the 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 team 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 by chinese imports that is chinese companies buying products from the u.s. suppliers they have officially applied for a way. from the finance ministry on chinese tariffs now these applications are

responses * to the list of items including beef pork soybeans and tractors and that would be considered far away rest published by the ministry how much relief if any might chinese imports get from those waivers. i think that depends entirely on the how they the how much relief american importers are getting or not getting from the american side every step of this trade war has been aggressive in the 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 got 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 was heated and that this point it's anyone's guess because the poor republicans and i say that with time the g 8 have to decide whether their future lies with being mr trump's pools of doing what he wants and writing him into office again or actually saying no you've now gone one step too far. and i'm going back to china ford has just been hit with a fine of 23600000 dollars by china's antitrust regulator 4 was in a joint venture with a chinese company tone change thailand and regulators say that the joy mentor suppress prices some are noting that the last time the regulator took some actions against a u.s. company against general motors and 2016 that came after president elect from began tweeting about starting this fight with china is this retaliation is this

a retaliation move our what we 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 china 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 biggest step we have a measured response so that the world understands this is the key thing that 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 effects of readjusting the world is every corporation that has to deal with the united states those are going up. play out over years when we've all forgotten missed the draw it's

a very serious setback for the united states that is holding before our eyes. update from professor richard wolfe thanks so much for your time. but it's. 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 coins. begin to why nations are stockpiling the precious metals and as we go to break here the numbers at the close. so what we've got to do is identify the threats that we have it's crazy. let it be

an arms race. spearing dramatic developments only. i don't see how that strategy will be successful very critical. to sit down and talk. the project was good if you run your birth will you you miss is that you don't believe people with. people who've. never met. you i'm with you that. you presume this i'm going. to leave them for you to. continue going to. the very least you've got a pretty sick. because.

you're good to. hear from since you moved to you before the war you more you would almost a. new moon the stars of the. skies are survival guide book stacie just like all the stars simply. lisa's. be sure it's good they're going to get it back. good says a repatriations look at the rest the 70 years. bill of the separate kaiser report.

seemed wrong. just don't hold. any you get to shape out these days to come to educate and gain from it because betrayal. when so many find themselves worlds apart. choose to look for common ground. international economic forum is a unique. business world. over the last 21 years the forum has become a leading global platform for discussing the key economic issues facing russia emerging markets the world thousands of business community members attend a forum to address today's vital issues. special forum coverage on r.t. .

the european commission is once again warning italy that it's violating the rules on spending and debt the 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 the tails of any flatly rejected that approach saying with cuts sanction and austerity we have seen an increase in debt poverty insecurity and

unemployment we must do the opposite. the minister oil is part of this is still struggling after exports of crude and refined oil fell by 17 percent in may that energy companies exports fell to just $874500.00 barrels per day in may following a deadline 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 stockpiles since january when washington instituted the sanctions on payday so in order to mean export and maintain exports of $1000000.00 per barrel per day through april in may part of his was able to ship a total of $33.00 cargos of crude in fuel mainly to asian countries exports to india fell by a 3rd 218-7000 barrels per day china's imports of venezuelan products remain close to $450000.00 barrels per day meanwhile russia's state oil enterprise rosneft which receives his repayment for billions of dollars in loans to venezuela was the. just

importer of pet of bases oil meanwhile europe received around 8 percent of the 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 venice well is it 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 and it are is a do it your banker to get the loan as collateral or is there 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 bullion by the end of 2020 and lastly. 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'd known that from 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 in 1971 but the dollar as a fee a 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 mahathir mohamed 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 touches 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 a vessel 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 is want to preserve the u.s. market as it is 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 of all 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 euro pacific capital c o peter schiff thanks for your time. and the time. japanese tanks at. ortiz are investigating the underreporting of 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 trading your regular stock 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 back when i pay you the coins 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 training firms who made so much back in 2017 that they attempted to hide their income. very interesting. and the. u.s. securities and exchange commission is suing messaging kick over there in 2017 initial court offering that raise $100000000.00 c.c. claims that kick violated federal securities laws by not registering the sale of their token kim once upon a time it was a major player in the messaging up business the f.c.c. claims that could. lost users and revenue when the company used the i.c.u. was equal hail mary pass to stay afloat then you could claim they were using a platform for that which would allow them to pay others with a decentralized crypto currency. wow another day another big player trying to get

in crypto currency sort of get him in trouble here what's your take on this cruise to be 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 use 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 the f.c.c. is 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 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 i.c.'s actually fell under scrutiny and none of them had the funds to be

able to fight the f.c.c. keke is the 1st one that currently is big enough and has the new 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 new there it is the how we just folks always learning something about group the currency on the show that's it for this time don't forget you can go to. youtube dot com slash. so you next on. who is the man 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 agile and

legally guten to elections today you have basically 2 parties so everybody laban's the other the way he wants because there is instead a deep crisis of legitimacy and this crisis was in the midst of it cannot be solved by going to be and that. nobody could see coming that false confessions would be that profile in this population a problem for conviction if you look at any interrogation out there what you'll see is threat promise threat promise threat lie a lie a lie the process of the turkish was designed to put people in just that frame of mind make the most comfortable make them want to get out and don't take no for an answer only accept their denials she said therefore we. sat on the statement that i

would be home by that time the next day there's a culture on accountability and police officers know that they can engage in misconduct that has nothing to do with solving their crime. as a wise man once said currency wars lead to trade wars late the hot more so we've got 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 into becoming a large economy and now this is led to trade worse. now pretty much declaring secession from the global economy as we go to neo mercantile ism. age of globalization and lot of tourism dollars ation is over. looked at the globe we've got a few little hot spots there the encroaching hot war scenario is that.

what politicians do. they put themselves on the line they get accepted or rejected . so when you want to be president i'm sure. some want to. have to go on to be press which is like well before 3 of them all can't be good. i'm interested always in the waters about how. this should be. the sausage national headline of the smaller u.s. democratic senators slams the trump ministration for giving a green light to sharing sensitive nuclear technology with saudi arabia it was done partly just days after the killing of dissident saudi judge mr mugg has told. the trump administration has broken this precedent they kept.