but he having fuel that corona virus continues to spread with new cases across europe and in china flood plain how it's affecting markets today and how does a billionaire investor like warren buffett get dragged into a huge ponzi scheme 2 words solar power we'll explain who was behind it and what they're facing now so much to get to on this very busy day so let's get started. and we begin with a move by the u.k. that could be seen as defiant to the trumpet ministration as the u.k. will allow wall way to build out part of its 5 g. infrastructure as we've told you britain's new prime minister boris johnson has indicated that he would put britain's need for 5 g. technology ahead of threats from the u.s. government that doing so could limit intelligence sharing on tuesday the british government said that it would in fact give permission a while way to build quote non-critical parts of the country's 5 g. networks britain's national security council concluded that the security risks that

the chinese company presented could be managed to keep in mind while way has consistently denied the chinese government has back doors built into its technology and for all the attacks against while way that have been leveled by the trump administration no actual proof of those back doors has ever been presented. these are very very important strategic we we for us clearly is to have a system that is for people in this country the consumer. they want. to do what it. does nor in any way. critical infrastructure security or jeopardize our ability to work together with other intelligence. before the great security division ships we have good strong and. well senior trumpet ministration

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 the 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 to sales to china yeah absolutely and so we see u.s. companies same were being hurt by this remember out of 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 thing 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 that while weight is from everything that i've seen about them the very best in terms of having the best 5 g. technology out there and they had it built out it's got to be always excited so johnson feels like the u.s. is essentially telling him take. our materials take subpar companies and have a subpar 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 asked like what other alternative is there can you find me another equipment that is just as good that is also as cheap as well 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 u.s. 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 hallway as well because they're taking this as a green light in australia in germany. they're also talking

a while way because at the end of the day they are still the best company to do it and 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 huawei if the u.k. new zealand canada starts using using huawei then what is this 5. got going to come 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 it this has now closed borders with the rest of china as the wu hong kong corona virus 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 in wildly spreading and so far it's going back with travelers. to foreign countries what is a 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 it in case it weren't well as we reported on monday there are big questions about why the w.h.o. has not called this a public health emergency and instead has acted more like the deputy oh 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 in the strait of corona virus from a work colleague. told it has continued its run from $29000.00 crimea another 4 percent in january amid concerns over the coronavirus meanwhile cops are the industrial metal fell 9 percent as traders increasingly worry about a glow. manufacturing slowdown hitting productivity in china nickel also fell 10

percent but if the 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 the data show that more investors fled towards high grade government bonds this time around rather than gold yields fell as demand surge for government paper and the other digital gold bitcoin after a brief dip back down to the 8000 point is pushing back above its 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 captive 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 quarter virus originate from china which is one of the main center points of trading cryptocurrency 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 that point in gold people will look at both of them right and that is 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 a set 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 price since 2013 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 tick 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 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 and perry highly correlated to the u.s. equity marcus vick wind 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 right 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 you said the transportation logistics 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 china 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 coronavirus 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 it 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 we mentioned between hong kong and the rest of china as a christi 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 was 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 talked about it's really over solar power were displaying who was behind it and what they're facing now so much to get you on this business. and as we go to break here are the numbers at the close.

trade and investment to become magic spells to come economic development. most people think about trade they think about goods and services being exchanged between countries and the investment chapter of a trade agreement is a very different but what one investment leads to toxic manufacturing that destroys sacred sites all ruins the environment. that means that if local communities that are being poisoned if they object if they do anything that the company feels is interrupting their profits they conducive. of taking on the whole nation philip morris is trying to use i.s.t.'s to stop tour of the way from implementing new tobacco regulations aimed at cutting domestic smoking rates

a french company sued egypt because egypt raise its minimum wage democratic choice of a trump to join us as we try to fund don't want to. from donald trump in 2016 to tell us he gobert in 2020 there is part of the electorate that responds to anti-war anti interventionist rhetoric in fact there is evidence this significantly helped get trampled like that but the fact remains the establishment is keen to downplay and even demonize any candidate who questions phone call supported oxen's why is this. dream agreed to pressure which i'm old enough to remember there was most of my family were unemployed working. there wasn't it was bed much worse objectively than today but there was an expectation.

the things were going to get better. there was a real sense of hope. there isn't today today's america where shade by the 10 principles of concentration of wealth and power. reduced democracy attack solo. engineer election manufacture consent and other principle according to. one set of rules for the rich. that's what when you put her into the. will is dedicated to encouraging virtue of just. one of the most influential intellectuals of our time speaks about the modern civilization of america.

and welcome back russia says it will go forward alone and the completion of the nord stream to pipeline 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 of the us which has imposed sanctions on russia specifically for the purpose of halting this project the north stream 2 project is already 94 percent complete it will be finished by the russian side the north stream to is designed to connect the natural gas pipeline between russia and germany by circumventing ukraine and then tying russia and europe together the us play sanctions on any companies and german interests 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 was cashed 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 $60.00 to $80000000000.00 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 wrist earlier 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 mag meeting this week analysts expect rates to be unchanged through q one but bets are already lining up for more

cuts in the 2nd half of 2020 and was more let's bring in danielle demarc a no former federal reserve insider and chief strategist at quill intelligence and the author of fed up so 1st off the fed's fund future has moved noticeably in the last week with the odds for another rate cut by june rising to 25 percent from 14 percent the odds for september cut rose to 50 percent from $37.00 so what is now telling you about the state of the economy and could the coronavirus be the recessionary catalyst that triggers 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 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 the kind of this structured fed 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 with us 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 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

son 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 buys there and now with the rippling effects of the corona virus across industries is the market now grossly 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. being drawn across wall street between the sars episode and where we are today with the 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 that that markets are woefully underestimating the important economic impact globally of what this means given that we started the year again leaning on multinationals to lead the charge out of the u.s. earnings recession and leaning also on germany to come out of its own industrial a session that's not going to happen either at 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 let go of this thing at this point can we even go into that 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 . look. 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 sea 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 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 7 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 you're about to know that would

never happen to us and look at them now. you know look there is always a possibility and there has been a ton of academic research that has been produced here on on us shores that say that there is a feasibility and a way that we can find our way to negative interest rates the best is i can give you about jay powell and most of his peers on the forum see is that there 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 virtue or hathaway warren buffett in progressive insurance fall for this because of solar energy reverse tax credits in all 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 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 or there's no true returns because the actual value wasn't in the product itself it was in the tax benefit exactly you get a nice fella kick back in it soften up that the entire blow it actually works incentivize them enough to that that to the fact that they're blind and 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. one of theirs 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 a 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 more devices soon or as always you can hit us up at youtube

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in the united states presidential candidates debate the future of the u.s. and the world. max kaiser and stacy herbert dig into the burning questions of this election cycle one topic every week. tax student debt trade wars corporate money universal basic income and more catch up with what's front running this sunday exclusively on r.t. . seemed wrong. roles just don't all. get to shape out this day because etiquette and engagement equals betrayal. when so many find themselves worlds apart. she says to look for common ground.

during the great depression which i'm old enough to remember there was most of my family were unemployed working. there wasn't it was bed much worse objectively than today but there was an expectation of the things we're going to get better. there was a real sense of hopefulness there isn't today today's america was shaped by the turn principles of concentration of wealth and power. reduced democracy attack solo down engineer elections manufacture consent and other principles according to no i'm chums just one set of rules for the rich opposite. that's what happens when you put her into the. narrow sector of will switch rule 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. cutter. period protest unbuilt of deal of the century to make sure of funding undivided capital of israel and having control over palestinian security and diplomacy and immediately rejected the plan. jerusalem is not for sale and all our rights are not for sale and not for bargaining your conspiracy deal won't pass. also are to speak to the families of palestinian teenagers allegedly killed by israeli forces as are also the group reached a friends and launched explosives but relatives rejects those playing. your part my song called a green knight it might.