we for us clearly have a system. for people in this country the consumers. want. to do what it. does nor in any way. critical infrastructures purity or jeopardize our ability to work together with other interviews. with the 40 great security division ships we are going to be strong and the. senior trump administration official told the wall street journal that the u.s. is disappointed by the you case decision and look forward to working with britain to find a way to exclude quote untrusted vendor components from 5 g. networks well meanwhile in a move that many might see is hypocritical the u.s. commerce department has reportedly rolled back a rule that would limit u.s. companies from selling to wall way after the defense department warned that u.s. companies might be hurt by that rule. and now we actually saw this happen because

as i spoke about last week texas instruments one of the oldest u.s. companies have provided semiconductor chips they actually said that they're shutting down to plant in texas this coming year because due to lack of sales from the and upcoming restrictions to sales to china yeah absolutely so so we see u.s. companies say more being hurt by this remember at one point google was fighting to change this and then had some jobs that were lost there as a result of it but it's more important to i think to recognize what position the u.k. was being put in here boris johnson was being told by the u.s. don't allow 5 g. technology from what way now at the end of the day we know this the wild way is from everything that i've seen about them the very best in terms of having the best 5 g. technology out there so they have had it built out it's got to be one way and so johnson feels like the u.s. is essentially telling him take subpar materials take subpar companies and have a suburb. our 5 g.

build out and i think that's that's not fair for you to ask that of us and it doesn't make any economic reasons because you're also he's also as like what other alternative is there can you find me another equipment that is just as good that is also as cheap as wawa and there really isn't so he was basically making an economic decision for his country which i think is very reasonable and i think the us is worried because the u.k. kind of sets the precedent for the rest of europe because there are other countries right now who are still on the fence right now right such as new zealand such as canada who may also start using way as well because they're taking this as a green light in australia and germany likewise are also talking a while way because at the end of the day they are still the best company to do it again it's important to remember there is no single piece of proof that exists that shows that while weight is providing back doors to the chinese government lot of rhetoric no proof yeah and the us can't run all they want about not sharing data with the 5 eyes intelligence community everybody else starts using all way if the u.k. new zealand canada starts using using huawei then what is this 5. got going to become

of it going to become like a 2 country 3 country alliance and the us the other we're not of the latest on the coronavirus let's go here because as hong kong is this has now closed borders with the rest of china as the hong kong coronavirus excuse me continues to spread well now the head of the world health organization the w.h.o. which is by the way still not declaring a public health emergency here says that he is confident in china's ability to contain the virus which is killed 106 people. so 1st definitely is an emergency it's an emergency in china but i would beg to differ on the definition of what you just put out as and while the spreading is so far it's going back with travelers. to foreign countries what is the home country of someone or travel as such it's not one of the spreading outside of china but again we have to be prepared for an increase it would well as we reported on monday there are big questions of why the . w.h.o. has not called this

a public health emergency and instead has acted more like the devil you know the world trade organization warning that such a declaration would actually hurt trade that we shouldn't care about that is not their mandate meanwhile a case in germany appears to be the 1st human transmission in europe that man reportedly contract a strain of corona virus from a work colleague. gold has continued its run from $29000.00 climbing another 4 percent in january amid concerns over the coronavirus meanwhile copper the industrial metal fell 9 percent as traders increasingly worry about a global manufacturing slowdown hitting productivity in china nickel also fell 10 percent but is the gold rally over the gold market is seeing renewed selling pressure to stay as prices are looking a bit overshot the net long gold position is overcrowded and close to the all time highs as the flight to safety has stalled out equity markets have now stabilized european equities are broadly flat so the risk aversion trade is pretty much off but even in the midst of all this coronavirus panic data show that more investors

fled towards high grade government bonds this time around rather than gold yields fell as demand surge for a government paper and the other digital gold bitcoin after a brief dip back down to 8000 is pushing back above is 200 day moving average support line and looking to break higher to 9200 dominance is at 66 percent and all coins are rising in lockstep with the coin as a crypto market has exhibited increasingly strong technical fundamentals over the past 2 months slow accumulations rather than quick speculated activity preceded this entire run up some analysts are attributing to the coronavirus fears as investors look to diversify risk away from traditional assets but really i don't think we can attribute this entire run up to the coronavirus right because actually i would think that the coronavirus originate from china which is one of the main center points of trading cryptocurrency that actually contribute to a drop and i would say that that's actually what pushed down to the 8000 last week yeah i think that makes a lot more sense and i think you know when you look at bitcoin in gold people will

look at both of them right and act as if you're too safe haven assets but i don't think that you can really put them in the same category gold traditionally has been that safe haven us said where we really saw the surge in gold prices and gold by the way right now it's doing really well i mean it's worth the highest level since in terms of prices 2030. seen gold bullion is now $1600.00 an ounce right now so it's doing extremely well but a lot of that actually began to really took off because of the iranian tensions between the u.s. and iran when iran said they were going to begin kind of enriching uranium again with no limits at all and that's when you saw gold come up a little bit different in that i think there's a technology behind it it's not just a safe haven it's moving more into that space and exact and they're quite actually has a different entirely different risk profile than other traditional assets that we see gold as perry highly correlated to the u.s. equity markets they're quite as only has a correlation of about point 6 there's also an interesting issue when we talk about

the coronavirus because one thing that the it is doing it is slowing down trade in some instances we're seeing stocks in the stock market respond to it but it's also having an effect on one of the biggest american companies which is apple because apple actually increased its projected output of i phones in china by 10 percent for the 1st half of 2020 and so essentially they wanted an additional there were a total of $80000000.00 i phones in the 1st half of this year the problem is because of what's happening in china right now and kristie you can really speak to this the difficulty in travel you have at least a dozen cities now that are quarantined on lockdown you cannot go in and out of those cities and so apple is reaching out to its factories there and say will you be able to produce for us this increase it looks like at this point they may not be able to know and apple was previously set to launch a lower cost i phone set to launch in february and that really doesn't look like it's going to happen because i knew that the transportation logistics could have

like headache in china right now because right now the apple manufacturing plant is approximately 500 kilometers outside of which sounds like a lot and sounds like it wouldn't really be a problem but when you factor in transportation logistics sourcing materials getting the factory workers getting the migrant workers out there it becomes like who wants to go outside at this point because right now if you look at images of to . it looks like a ghost town all the airports are and the all the streets are empty the restaurants baron it's also interesting we as we touched on the 1st part of this with the corona virus and what's happening in hong kong right now there was a big push in hong kong to say we want to keep the virus out and one way to do that was to close the border with the rest of china was somewhat controversial that this was asked for and one of the reasons it happened was because you had a huge slew of medical workers doctors nurses medical experts who essentially said they would go on strike if the border was not close without the border has been temporarily closed as you mentioned between hong kong and the rest of china as a kristie i would ask you this in terms of markets how do we expect markets to

react to that they would probably see that as a positive right that there is some control there but at the same time does it also mean that maybe the chinese government is not giving us the full picture in terms of how large and how how fast this thing is spreading i think they're trying to estimate how fast is this spread and try to contain that as much as possible so i do think it's very unique about china is the fact that they can actually in act these measures in act these quarantine measures so effectively and have people not panic not cause riots in the street of oh i should be able to travel however i want this is an imposition of my freedom i think this is a very unique case that the government actually very effectively controlling the further spread of this outbreak and i think the outbreak will be a lot worse at these quarantines war and in fact we told you there was a lot to get to today we were not lying time now for a quick break though hang in there when we come back how does a billionaire investor like warren buffett get dragged into a huge ponzi scheme i told you about it's really over solar power were they explain who was behind it and what they're facing now so much to get to on this business.

and as we go to break here are the numbers at the close. move home. to the kids seem completely stable boy to 9.

people who come in who can. go into the. mood to move. on the show got to move this because of a mostly an infant who couldn't if you didn't show up and we must. not so much because of my sons it is a constant you puff a 1000000 is. going becomes a passer mechanism right so they buy back their own stock with cheap money from the fed and they goes through the company ostensibly to help the company but a sonnet it's disenfranchising the company and then on the other side the executives fear of getting that money from the fed directly into their pocket they

use the company as a pastor mechanism so what happens is it leads to incredible mal investment so boeing now is the longer a viable company. the world is driven by a dream shaped by. the barriers thinks. we dare to ask. so what we've got to do is identify the threats that we have it's crazy it's own foundation let it be an arms race is often very dramatic development only closely

and going to exist i don't see how that strategy will be successful very critical time time to sit down and talk. thinking of getting a new phone the ones we've got in our show from grandma as he didn't know until he was trapped in this tiny little wired coach we don't need a crane with the wall just. freaking out and she won't let us bring him anywhere near. breeding dogs or caged in the into lane conditions on puppy farm i mean 67 years you know they've been locked up in cages outside you see no protection from the weather the heat you know the cold air the rain the snow the thunder nothing they have no protection. particularly you. know it's 2 kids. across the u.s. cruel puppy mills are supported by dog shows and pet stores most of the puppies are

coming from these large scale factory farming kind of operations are being sold in stores even joined a group businesses are involved like cargill among santa there has been a shocking amount of organized opposition to adverts to increase the standards of care for dogs bred in commercial breeding for so many most of that opposition is coming from huge agricultural groups and industries that have nothing to do with jobs don't buy dog. and welcome back russia says it will go forward alone and the completion of the nord stream to pipe. in gaza from says it will complete the construction of the pipeline under the baltic sea without the help of foreign companies this would mark a victory of sorts for the us which has imposed sanctions on russia specifically for the purpose of halting this project the north stream to project is already 94

percent complete it will be finished by the russian side the north stream 2 is designed to connect a natural gas pipeline between russia and germany by circumventing ukraine and then tying russia and europe together the us placing sions on any companies in german interest that attempt to help complete the pipeline. the federal reserve will meet this week to discuss fine tuning their control of short term rates now after the fed lost control of the very rate they were mandated to oversee last year the response was just to pump more liquidity into the market to alleviate the conditions they claimed it was a plumbing issue that was temporary and would last no more than a few months well that few months dragged on into a quarter and now into the new year it has now become a semi permanent fixture in the repo market as traders and investors have come to expect the fed to bail out the market when it gets into trouble but as all good things come to an end so too must this the fed flooded the market with cash in september of last year in order to pump liquidity into the repo market and avoid another spike in overnight lending rates now officials have to slowly turn off the

spigot but that's going to prove to be difficult without jostling the market that has been steadily marching higher due to the excess cash being pumped in at a clip of about 60 to 80 $1000000000.00 every month officials now have to formulate a plan of when and how to wind down the program all while the market is kicking and screaming the whole way down coupled that with the risk to early projections of global recovery due to the corona virus outbreak and it doesn't look like that will be easy for the fed to stay their hand at the full magni ting this week and i was expect rates to be unchanged through q one but bets are already lining up for more cuts in the 2nd half of 2020 and let more let's bring in danielle demarc a no former federal reserve insider and. strategist quill intelligence and author of fed up so 1st off the feds fund future has moved noticeably in the last week with the odds were another rate cut by june rising to 25 percent from 14 percent the odds for september rose to 50 percent from $37.00 so what is now telling about

the state of the economy and could take on a virus be the recessionary catalyst that triggered the global downturn. so to your great introduction and you covered a lot of the ground the market has become unfortunately extremely reliant upon this constant and increasing that's the word you want to focus on increasing levels of fed liquidity and the minute you have even the hint of a black swan moment the markets begin to price in as you said 7 a rate cut earlier in the year than the federal like remember jay powell came into 2020 his last press conference of 2019 saying there would be no rate cuts or rate hikes for that matter in 2020 and yet as of the coronavirus headlines beginning to hit the wires we now have not one but more than one great cut priced into 2020 and by the way the fed has never defied market expectations if they command and

demand a rate cut so we could just throw in the bad news is good news mentality and vice versa i mean if things are bad enough the fed is always going to come to the rescue becomes the safety net 1st of all isn't that a dangerous mentality for the market to adopt and if that is the case do we even really have a market or at this point is the entire thing so goosed that nothing is being played off of any realities anymore everything is built upon kind of this structured run market. well you know to your point there are actually numbers we can attach to that buddy of mine david rosenberg rosenberg research ran a correlation analysis and the s. and p. 500 has a 7 percent correlation. with the u.s. g.d.p. in other words they've completely disconnected and right now the stock market is running purely on fed liquidity the whole idea of bad news is good only works for so long to your point coming into the year we were already in the midst of

a deep earnings recession and what we know is that the companies that were going to lead us out of the earnings recession starting in q one of 2020 were the big multinationals who bring in the bulk of their revenues and profits from overseas the coronavirus dictates that that's not going to happen so that's off of the table and yet you've got markets trading up and again they're going to press 6 towards all time highs once again because they're saying this bad news is good enough that it's going to actually cause the fed's liquidity injections to grow markets are addicted. as you mentioned in the u.s. today markets rebounded hard with the dow climbing up over 200 points so now are we too optimistic here i mean we had some disappointing earnings as you said coming out of industry heavyweights like 3 m. and and now with the rippling effects of the corona virus across industries is the market now underestimating the potential impact especially of the pertains to me much the most important supply chain in the world china. you know i think the

market is underestimating the fact that there are all these parallels being drawn across wall street between the sars episode and where we are today with a coronavirus but back then china's g.d.p. was all of 4 percent of global g.d.p. their footprint was very small today it's 4 times that amount they're the 2nd largest economy in the world they're the most of the most important supply chain by far in the world and we've got the coronavirus in every single of the 32 chinese provinces and the country not expected to get up and running until best case scenario if ever that night so i think the markets are woefully underestimating the important economic impact globally what this means. given that we started the year again leaning on multinationals to lead the charge out of the us earnings recession and leaning also on germany to come out of its own industrialist session that's not going to happen either so if this point it kind of looks like and you use the term

addicted to it i mean it seems like the market is a bunch of. heroin addicts right they just can't seem to get let go of this thing at this point can we even go into the bear market or are we in a position now where we're going to get dragged back into the bull camp because of liquidity injections i mean at this point it seems like there's no way you could even say let's take a step back because the fed is doing this and how long can that they continue to do . our segment opened with the fact that the market has become accustomed to emergency overnight operations becoming permanent and i think that that is something that the fed has to worry about prior to the outbreak of this coronavirus and all of the headlines that have hit and the risk that was introduced i think that jay powell had every intention of coming into the same meeting and the press conference that follows saying the fed is confident that it can begin to step back

from these repo operations i don't think it can i think drone powell and his fellow policymakers are boxed into this policy would prefer to not be but the market right now is saying try just try me jay try and pull the plug try even to reduce the liquidity and see what happens i mean we've heard that before they've actually extended these terms starting the new year kicking out the new year so i really don't see that happening so now we had recently tweeting once again about negative interest rates so would the us ever see itself in a position where we actually go negative because europe also said no that would never happen to us and look at them now. you know there is always a possibility and there has been a time. on of academic research that has been produced here on u.s. shores that say that there is a feasibility and a way that we can find our way to negative interest rates the best news i can give you about jay powell and most of his peers on the sea is that they are adamantly opposed to negative interest rates the point of negative interest rates is that

they work everywhere else but where the reserve currency status lives other countries have adapted their investment models to use positive american interest rates so that they don't come out with with products that are unchanged or on unknown i don't think that we can go to negative interest rates the way that the president has been asking for simply because it would make the u.s. government selling treasuries pay the government back it's not as easy as that it's much more complicated when you are at the epicenter of the global financial system . former fed insider danielle de martino thank you so much. thank you. finally today how does a famous billionaire investor like warren buffett and a massive corporate entity like progressive insurance get caught up in

a ponzi scheme a simple just attach the words solar power to it so here's the story the founders of d.c. solar couple by the names of jeff karpov and paul that karpov are now facing up to 15 years in prison for defrauding dozens of investors including warren buffett's berkshire hathaway so how do they do it with a couple claimed to have built $17000.00 solar power systems which they were going to sell to telecom companies like 18 t. and t. mobile turns out only $6000.00 existed and then they ran a ponzi scheme by paying back the 1st investors with money coming in from new investors so here's the thing why would anyone especially burch air hathaway warren buffett in progressive insurance fall for this because of solar energy reverse tax credits in 0 berkshire took $377000000.00 in tax credits from investing progressive insurance over $24000000.00 and they now have are facing charge backs for those credits so chris the kind of comes off like this how does

a ponzi scheme scam these guys because these guys are and i mean and so they're running a scam and it's illegal scam but a scam on the u.s. taxpayer by saying we're going to invest in solar power companies it's why you can invest and then not care about the fact that no products are being made over there is no true returns because the actual value wasn't in the product itself it was in the tax benefit exactly you get a nice little kick back in it soften up 50 entire blown so it actually works incentivize them enough to that that to the fact that they're blinded that this isn't even a real company yeah and then you have companies like aig t.n.t. which apparently these guys were saying that they were selling to 18800 he came back and said they were still as anything we weren't going to cuss. there's how does warren buffett not know that these are really basic questions that any kind of investor serious investor with us it should but that actually berkshire hathaway has had a series of mishaps in which they didn't do their proper due diligence they've had dozens of cases where they made serious mistakes in 2001 they invested in general

re and lost over $800000000.00 the all of these were just cases of lack of due diligence because someone attach a fancy name to it or they had some wild incentive that they were drawn to the scammers scam in the scammers well that's it for this time you can catch boom bust on demand on the brand new or well t.v. ad available on smartphones through google play an apple app store by searching t.v. or stream us to your t.v. by downloading the portable app on apple t.v. and online at bball dot tv portable t.v. will be available on my devices soon or as always you can hit us up at youtube dot com slash boom bust art see see back here next time.

i actually don't think monopolies per se are the problem it's monopolistic access monopolies have to credit more to politicians and probably both the crony financial ism crony capitalism that's the big problem. during the great depression. remember there was. there was and it was bad you know much worse. but there was an expectation that things were going to get better. there was a real sense of hope. there isn't today today's america i wish to turn principles of concentration of wealth and power. reduced democracy attack solidarity engineer elections manufacture consent and other principles according to no i'm comiskey one set of rules for the rich opposite.

that's what happens when you put her into the. narrow sector of wilf which will is dedicated to increasing power for chills just as you'd expect one of the most influential intellectuals of our time speaks about the modern civilization of america. to the kid's name compensate oh boy tonight i did. see it but no clue about it because. it's not. going to.

move on the us i did it again showed up to move this guy who i'm listening to in the going to be out in so just as the last. straw i thought it was not because i was it is a. you must say i'm audience. you know world a big part of the lot and conspiracy it's time to wake up to dig deeper to hit the stories that made stream media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the bad. i'm showing. 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.

donald trump and the israeli prime minister have unveiled what they call the deal of the century a peace plan to end the israeli palestinian conflict that vision has already been denounced by the palestinian leader who brands it the slap of the century. a french fire fight to strike turns ugly in the capital paris where riot police results take ass and water cannon. and hillary clinton lashes out of facebook's mark zuckerberg for quote intending to relax donald trump while keeping everyone but herself accountable for the $26000.00 u.s. presidential election defeat. i always thought.