versus running facebook is germany has now banned the social media giant from implementing its plan to change in terms of service for the pack show today so let's dive right in. and we leave the program with the state of the united states economy inflation in april surged at the fastest pace in september of 22008 the labor department reported on wednesday now the consumer price index rose 4.2 percent year over year with a month to month gain of point 8 percent now this jump inflation was expected as april of 2020 mark the height of lockdowns in the united states due to the copan $1000.00 pandemic which had nearly shut down the entire economy so let's go over some of the data here energy prices they were up 25 percent year over year with the price of gasoline jumping nearly 50 percent and just over 37 percent for fuel oil now gas prices actually had to take down month to month but are expected to see an increase in may once again use vehicle prices they were up 21 percent compared to

the previous year and a spike of 10 percent from the month of march now beyond the economic recovery in the global semiconductor shortage has also taken a toll on the auto industry causing issues with the production of cars and that is causing those prices of used vehicles to really hit some record highs now the travel and leisure sector as a whole saw a record month the month inflation but this was expected as more and more americans have been vaccinated heading into the summer months we're going to see a lot of travel now as for the broader implications for the u.s. economy federal reserve chair jerome powell has continually said the central bank is going to keep its easy monetary policy which includes $120000000000.00 a month in bond buying and near 0 interest rates until that median inflation rate hits above 2 percent. and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time i would note that a transitory rise in inflation above 2 percent this year would not meet the

standard over the next few months 12 months measures of inflation will move up as the very low readings from march and april of last year fall out of the calculation in the most likely case this this this period will show it will show temporarily higher prices but not persistent inflation we have not changed our view that a little run felician rate of 2 percent is most consistent with our mandate to promote promote both maximum of element and price stability the pandemic is also left a significant imprint on inflation following large declines in the spring consumer prices really rebounded over the rest of last year overall on a 12 month basis inflation remains below 0 or 2 percent. and for more on this let's bring in professor richard wolfe he is the host of economic update and the author of the sickness is the system when capitalism fails to save us from pandemics or itself again and professor wolf i know we say this often when you're on to talk

about these topics it seems like your book is perfect for this type of discussion so i want to i want to start with what is the takeaway from this inflation data and what does it mean for the short term for the u.s. economy. well you know when inflation is a major blow i mean this cannot be exaggerated to say that over the last year april 2020 to april this year consumer prices went up 4.2 percent means that the american consumer has to pay those higher prices and can therefore with whatever money he or she has buy fewer goods it's easy to show what this means because you can multiply 4.2 percent by the median household income in this country $60.00 to $70000.00 and you could measure and then say this is going to cost americans about $3000.00

worth of goods and services they tend to afford this year that they could have afforded last year and that is a profound to blow to all hopes for recovery to giving people jobs to produce goods and services if the mass of people cannot buy at these higher prices what they could both for the federal reserve tells us that wages are flat the wages in america went nowhere over the last year so the wages that we have to pay don't go up the prices still there's no way out of seeing this as a release urias setback for the american economy professor wolf i'm going to bring in peter schiff he is the chief economist and i believe global strategist with euro pacific capital apology peter i want to have you on for that the sky should about

inflation as well and we just heard jay powell of the fat he's been saying it over the last year inflation is going to go up it's going to be transitory for march and april and now we're looking at median inflation over 2 percent now do you expect more of the. what do you make of this current situation well there's no nothing to suggest that it's transitory remember this is the same fed that told us that the problems in sub prime were contained inflation isn't as it is as transitory now as a subprime was contained bagmen but you know it's actually a lot worse than the 4.2 percent year over year if you look at the 1st 4 months so far of this year prices have already moved up by 2 percent in a 4 month period so if you add your lies that you're talking about 6 percent c.p.i. for 2021 but if you look at the trend the monthly trend is excel orating if that trend continues for the rest of the year we're going to see a c.p.i.

in 2021 increasing by better than 20 percent on the year so whatever number is mr full wolf was using at 4.2 percent i magine how much bigger it is at 20 percent because inflation is a tax this is the way the government is paying for all the spending so if you want to know how we're paying for all the ballots and all the stimulus it's through inflation so every guy may go to the supermarket and stuff costs you more money that additional cost is the price we're paying for bigger government and professor wolf. to the point i guess initially about raising inflation or inflation continuing to rise you know when we talk about monetary policy from the fed they've had this easy policy could that do long term harm if we continue to see inflation going up. yes the fed is in this impossible situation it has pumped the money supply you hope it has made corporations more debt dependent than they've ever been

by providing them with virtually free money from the federal reserve it would be very dangerous to raise interest rates which is normally what you would do it in inflationary situation because. that could risk a cascade of people are unable to turn over their debt to maintain their debt and then what will the corporations do you're seeing a system that is now disintegrating around us nobody knows quite what to do this to shift says right the inflation could be much greater than what they're guessing at this point and the future is something none of us know so they can't afford to raise the interest rate because of the debt problem but they i can't afford not to because it'll accelerated inflation that will be troubling to this kind of dead end it's usually a sign of economic problems of a very deep sort peter i'm sorry yes i just want to let you go yeah it's you know

a kits a catch 22 right you're damned if you do and you're damned if you don't and you know the problem is the biggest debtor it's not corporate america it's the federal government itself you know we've got a national debt now that's coming close to 30 trillion dollars we're adding another $4.00 to $5.00 trillion a year based on all the spending and the only reason we're able to finance it is because rates are in 0 but if the federal reserve has to raise interest rates sufficient to fight off inflation the u.s. government will be insolvent and will be forced to default on its debts and the only way it could avoid 'd afford avoid default would be massive cox 2 of title myths like so security medicare and substantial increases on middle class americans not the rich but on the middle class that's the reason that they want to pretend that inflation is transitory they know it's permanent but they also know they have no ability to do anything about it and professor wolf i want to give you an opportunity before we go either there was

a whole other topic i want to hit on but i want to reference what peter just said there because his reference obviously big government several times so i want to give you the response there professor wolf. well we always have this disagreement for me the government is a reflection of the society it is the government of it's not the source of evil it's a reflection of the problems of this system corporate america wants to read coupe the losses it suffered over the last 18 months so jacking up prices in order to improve their profits labor cannot follow we have a weaker labor movement than in american history before it cannot raise the wages comparably it hasn't done it the last year there's no sign that it will this means that as prices and profits go up either this system crashes or the inequality we already suffered from gets worse this is an economic system in deep trouble but you know it's not profits profits are going up because companies costs are going up along with the prices they're charging their customers so they're trying to

maintain their margins are not actually getting a windfall profit because they're raising prices in fact in many cases companies have been reluctant to pass on their higher costs to their customers and so profits are being diminished so companies simply have the rage prices to catch up to where they should have been but we're only getting started in this process it's going to get much much worse is specially when the consumer realizes how much money has a how much perching power is money is used losing and people start rushing to stock up on goods and then you start seeing empty shelves because people buy stuff as soon as it becomes available and then we get big shortages and then eventually we're going to get price controls and that's going to exacerbate the shortages something where we're seeing once again right now professor richard wolfe and peter schiff way we could do this the entire show and maybe one day would do we'll thank you so much for joining us. thank you. and it looks like a major win for chinese smartphone maker show me as the u.s.

defense department has agreed to remove it from a blacklist banning u.s. investment in the tech giant now in january of this year the trump administration added shalmi to the black list alleging ties between the company and the chinese military so what exactly happened and what does this mean as the tech war between the world's 2 largest economies continues well to discover going into but co-host christiane christine let's start with what happened here why is the u.s. backtracking at this point. well the u.s. it's very adamant about the dangers i shall me supposedly pose to the u.s. says it was allegedly one of the several communist chinese military companies now all that has been proven to be just propaganda of the trump era in order to further his agenda of stirring up this rivalry introduction tween us in china so in january the administration and former trump had restricted american investors from buying shares or related securities of any company given this does nation so the chinese

manufacturer has maintained that it's an independent publicly traded company and the d.o.d. had no evidence to substantiate any of its claims of ties to the military but now the u.s. has agreed to a motion me from the blacklist after i had brought a legal challenge against the u.s. department of defense shammy sued the government citing damages to his reputation and other damages which would have led to a delisting from us exchanges and a deletion from global benchmark index so the specific terms are now being negotiated and join proposal between the d.o.d. and shamming will be issued on may 20 s. and what will this mean for the other firms on this black list moving forward do they have an opportunity to get off as well. well kind of in agreeing to do a shalmi from the blacklist the pentagon signaled a willingness to actually walk away from a sustained fight over trance and china agenda so he is now joining a very small but growing list of chinese tech companies like tech talk and we chat that has successfully one courtroom to preserve their actions so it really shows

the world that previous allegations were nothing more than unsubstantiated claims that one of the hold up in court but the problem is that a lot of trump actions have already cost these companies greatly causing irreparable harm to their reputation and impeding their growth their expansion resulting opportunity and market share losses so of course i'm talking about quality as it was hit the hardest after was barred from buying u.s. navy components and shut out of infrastructure projects around the world but then again let's also look at tic toc due to all of the trump hangouts over tick-tock which once again was just an app where teenagers recorded dancing videos that took the time resources are in the fund and expansion plans to attack had to redirect its focus to defending itself rather than focus on which allowed for instagram reels to basically copy and some so on the one hand has a really good thing that these tech companies are now winning in court but on the other hand it was a complete and total waste of time which probably was the objective of trying to

begin with saying that he was fearful of us losing its tech dominance boom bust co-host christi i thank you so much for following the story we're going to continue and follow here as well. time now for a quick break but when we come back facebook is back in the hot seat yet again is germany has cracked down on a controversial change for its widely popular whatsapp straight ahead we're going to dive into the controversy and what it means for users as we get a break here the numbers of close. seem wrong. to say power to stay active. and in. the trail. when so many find themselves worlds apart we choose to look for common ground.

it's not all about. good cause it's much more complex than just. understand really what is good quality food once about stocks and it's not about these 3 macronutrients because food is actually so you 1000 chemicals.

lead. no one has ever cruised around the globe in an inflatable classroom around. you you

know. just. such a cruise you need a crew people you can share folks know with so to speak english. you do it with was the one. who was not the one he was the let me ask you that you just love him enough mike was the let's get the through with it but it was really what you need for us to get that we got the relief we didn't you know he really meant it when you got.

there welcome back a panel of independent experts who reviewed the world health organization's response to the pandemic on wednesday blamed countries worldwide for their slow response to cope 19 saying most waited to see how the virus was spreading until it was too late to control it which then led to disastrous results the panel also recommended that the u.n. health agency be granted guaranteed rights of access in countries to investigate further future developing outbreaks which would then give more powers to the agency and less to those member states now as the pandemic continues to spread in asia the w.h.o. announced in a report that the aggressive virus variant that has been spreading rapidly in india might be even more contagious than any other earlier version of the virus r t correspondent sites have their has more. so brant in this new report which president just released from w.h.o. now they focus specifically on all variants all variants emerging from that

$1000.00 around the world but what's really significant here is what's being reported on that very aggressive area and that's take india by storm right now known as the b 1617 now so since is the very end was this coverage through april 2021 is very deadly and aggressive very and now accounts for 21 percent of cases in the samples they collected in india and now one scientists further study this aggressive and deadly very end this is what they found so in one study it revealed that it had a 7 fold reduction ineffectiveness with the pfizer vaccine and a 2nd and 3rd study found even a further reduction and effectiveness of the pfizer during a vaccine against the mutation of the very end so that's approximately 3 fold further decrease in its effectiveness now the w.h.o. also emphasize in its report that it wasn't yet clear just how much of this variant

has exactly contributed to the surge says india's only sequencing a tiny fraction of samples and now scientists also rushing to track just how many fully vaccinated people have gotten sick again from 1000 india which would then tell them whether vaccines would be effective against his new variant and if this number proves to be significant brand that would put everyone back into day one of the pandemic were signs his need to come up with a new vaccine so definitely not where we need to be globally. there's another coach we haven't heard a lot about lately and that's iran what he told. so well you want is facing what looks like it's worse a wave of dependent make yet there. also facing another issue which is economic pressure and sanctions from the us now since the outbreak of the pandemic these sanctions they've even blog iran's purchase of anti pandemic materials such as

vaccines that also trade mance and you know right now only 2000000 doses of the chinese russian indian cuban and astra zeneca vaccines from kovacs have been administered in the iranians now in a country of more than 82000000 people it's only about 2000000 vaccines and brand ultimately iran is not self-sufficient when it comes to give an idea of vaccine development and it doesn't have enough hospital capacity to care for the patient in needs to really need so it really needs external help and this is where we see the importance of kovacs for countries like iran india and many other countries who are facing a severe shortage of vaccines our 2 correspondents i'd have to thank you so much for keeping us up to date. and surprising twist as facebook's whatsapp is only days away from its new terms of service update now that might seem weird to just start

talking about on a show like this but a german regulator has issued an order that bans facebook from process of whatsapp user data this decision follows emergency proceedings opened by the regulator in the city state of hamburg last month after whatsapp required users to consent to the new terms or just stop using the service altogether george is not a briton also a school bus co-host investigative journalist bones swan but as always on the social media beat there's no doubt about it. that's true so what exactly is the order and why was it is shewed. yeah absolutely and you know it's easy to be on the social media be by the way because these big companies keep doing stupid things which makes it easy to cover them so in this case you have facebook which of course once app and so there's this german regulator his name was yohannes kasper essentially said that their new update which is supposed to hit on may 15th is illegal he says it misrepresents what the company is supposed to be doing it takes advantage of data collection of people who are whatsapp customers so even if he

says people decide to approve that terms of use update that it's still illegal and so it can't happen there and he's actually calling on other e.u. member nations to join germany in this it's about 60000000 people in germany by the way who are on the what's app right now so this could have a big effect right now facebook is saying they're going to going to appeal they're just trying to figure out exactly how to do that and what happens if a user doesn't accept the new terms of service for what's app because it seems like any time you get an app they updated you just click ok you move on with your day what happens if they go. yes so what happens here is kind of a slow creep where essentially once you don't improve that new policy if you don't you have a couple of weeks and you begin to lose access to your contacts and then after a short time after that people want to go to message anymore so it's almost like what's app on your device begins to slowly die over the next few weeks and they get this all goes back to data collection this is about facebook saying hey we i know

that we said we don't sell data on whatsapp it's not what we do but when it comes to businesses we're going to start doing that and so they've changed the business model surrounding what's app it is upset a lot of people and quite frankly it's the reason the telegram is soaring in terms of new users coming on and signal is soaring in terms of new users coming on because people don't want to be tracked in everything they do when they don't want their data sold in everything that they do and especially in a messaging app like this because some people use this instead of you know the messaging app on an i phone or or just text messages on an android so why is facebook actually updating these terms at all and i mean this is it seems to be hurting their user base as you just mentioned. yeah well that it all comes down to money here bottom line is that when when facebook and mark zuckerberg acquired whatsapp a couple of years ago and i believe was 2016 that they acquired whatsapp the goal was we had to figure out a way to monetize it over time because that's the plan for everything right and the problem was when they took over whatsapp they said you're going to remain into an

encrypted no one's going to know what you're doing it you have complete privacy there and we won't be selling your data and we won't be sending you ads well now they've changed their mind about that because they have tens of millions of people on whatsapp but they can't monetize them you know if you look at the way that facebook looks of their earnings they combine all of their properties facebook instagram messenger and whatsapp to show the total number of users they have the problem is that if you're on messenger for the most part until recently and whatsapp those are monetized users so it doesn't really help the bottom line or messenger is now becoming more monetizing factors like streaming shows that are moving the messenger now on what's out there trying to do the same thing but they are getting some resistance from users and now from governments co-host ben sua thanks so much for following the story we'll see what happens here in a couple of days sounds good. and finally if you've ever received a spam tax claiming you want a prize from amazon then well you're in good company but the online retail giant is

actually going to court looking to unmask 50 of these potential scammers in the scam amazon fonts and logos they're used to collect your information with the bait of a potential prize now after clicking that link and filling out a survey victims may be tricked into buying a cheap item then the scammers are given a finders fee however finding those behind the scheme has been difficult and often all investors have our domain names used to host the scam in a federal lawsuit though amazon may be able to get a dose subpoena in order to learn the names of the defendants it's all part of a growing trend of spam texts and calls now the federal trade commission of course wants to remind you in all of this that if you get a call a text or e-mail with a deal that's too good to be true it almost certainly is and that's it for this time you can catch boom bust on demand on portable t.v. it's available on smartphones and tablets through google play and the apple app store by searching portable t.v. portable t.v. can also be downloaded on newer model samsung smart t.v.'s as well as roku devices

or you can simply go to portable t.v. and get all the boom bust goodness see you next time. we've been saying now for years and all this money printing would cause a reflection but we didn't really see it at the level of the c.p.i. consumer price index and well because the c.p.i. doesn't reflect the actual prices of stuff to people you stay typically quote prices of stuff that people don't use and they don't include housing or health care or education for example. and that works for a while but it's really hard to hide. the fact that the money printing is causing a lot of inflation as you would expect sound now the big question is do we take the word of the central bank who is saying that it's transitory and that this is

a sugar high and that things are not going to last in this way or do we think that this might be a structural beginning of an inflationary period possibly a period of stagflation because the economy can be stagnant. is your media a reflection of reality. in a world transformed. what will make you feel safe. isolation community. are you going the right way or are you being led. by a. what is true what is faith. in the world corrupted you need to descend. to join us in the

depths. or remain in the shallows. americans love buying homes. and this was a fundamental part of how our political leadership and our country at large understood the bargain you get a hope and then you know rebel right as the things you don't revolt if you have a stake in the system. and be really interesting to dial it back and think about the longer deeper history housings man in the united states not just that old question of the american dream and the bigger question if you the dream is for.

the modernists does the police have the israeli president to scale shrines on the streets have been one of dr king's dragged from his vehicle in faith and he's not in a critical condition. across border between gaza and israel intensifies with a suburb of television reportedly overnight. funerals take place of the victims of the shooting at a school in the russian city because as medics continued to fight for the lives of the injured victims have been speaking of. her name was she was too.