the this is boom bus, one visit show you can't afford to miss. i'm rachel 11. and i'm bridge ward washington coming up with the us. that deadline rapidly approaching treasury secretary, janet yellen has warned of catastrophe if the nation were to default. sure to had we speak with former us representative ron paul to discuss the date of the national debt. and the looming fall plus proctor forming and china is ambitious both and wrote initiative will new debt revelations in danger. the infrastructure project will discuss norm as an controversial project coming up. we have a great show ahead. so let's get started. we leave the program with a strong warning from treasury secretary janet yellen. she says the u. s. is facing a financial crisis of congress does not take action to raise the debt feeling before october 18th, that would mean the u. s. could be just a few weeks away from

a federal debt default, as it is days away from a government shutdown. jaelyn noted that if congress allows this to happen, it would be the 1st time in us history. and if the did ceiling were not raised, i think the would be a financial crisis and a calamity. and absolutely, it's true that the interest payments on the government debt would increase. i would be concerned that the dollar in treasury, yes, it's which are regarded as the most secure in the world in serve is the basis for the dollar to be the reserve currency that it would undermine confidence in the dollar. is your reserve currency? the house did path measure that would both funding the government and suspend the debt ceiling, but it was rejected by republicans in the senate while democrats are relying on the promise of additional funding to cover the $3.00 trillion dollar edge forward. they

refer to as human infrastructure. republicans are pushing back against suspending the debt ceiling, arguing it would give their colleagues a blank check. but it just so happens that congress has changed the definition of the debt feeling 78 times the last 60 years. the majority of this one are republican, was in the white house. so how long will the stand off last and what does it mean for a federal reserve that continues to defend the ongoing use of its easing money policies? for joining us now to discuss a dr. ron paul, former us congressmen and the new york times best selling author of and the fed. dr . paul, it's great to have you back on the show today. now i know this is an area that you know very well. so what do you make the claim from janet yellow and that the u. s. is facing a catastrophe. if it doesn't raise the debt feeling once again, the same old same or is as my thought because they've gone through that. and i think you mentioned that this is happened a lot of times they always enough raising it because there is

a coalition in washington that nobody wants to admit to. and as a coalition of democrats and republicans, and they like the same thing, they're locked in, they can't do anything other than raise their limit. keep spending, keep turning the money. it's just a matter of who's doing it and who gets so half of the dough they say, well, part of this thing that we're talking about now is the infrastructure. everybody sure infrastructure that even that part is not just the infrastructure has all these other they and they're not talking about a couple 1000000 or 100000000 here. there's no, i truly isn't trillions of dollars now, but i know i've. ready while i was there for many years, they would come up almost annually or, you know, quite frequently, but they always change it to the tell you the truth. i don't think it matters because, you know, like when kobe heads are these other crises here in the stock market, financial crises, the fair is in, in a position where you can pay a lot,

lot of money just extent the credit and to the people they like you know, the business people that banking people to the foreign government so they can do so much, but they still play this game that we have is debt limit that we have to pass in order to write them right next year as just grandstanding no matter what even if they were trying to follow the rules, what they would do is after about a bus or 2, they'd be coming up short and they have an emergency appropriation and assets and just just think of how easy it is for them to suspend efforts. like it's like impeachment for us, our processes in order for everybody to get together and vote to keep the government going. so that's what's gonna happen. you know, kids going, they have a printing press running constantly and they are not going to shrink the size of we're destined to have the end of this in a very difficult way. there will be

a major economic catastrophe in order to stop this mass error. dr. paul, i mean, i guess the big question here is, especially for, for those throughout the world as we have a global audience here on boom bus. i mean, the question remains what happens if we truly don't raise the debt ceiling? we do default, it seems like in the united states deficits and that doesn't really matter anymore . well, it does, but the default is out of their control. there's always a default. the only question is how do they default, you know, if they, oh, they ran out of checks, they don't have any money and treasury, what are we going to do for social security on our send our for an aide and all these things and, and take care of our military, the checks will always go out. just think of the crisis we just got ourselves involved in, i mean trillions of dollars. i was amazed at how, how efficient they work. they had checked every house in this country. it was faster than helicopters, bernacki promise. adam, ash money i with helicopter. well,

it was much faster, was through computer, but the default is always there. there has to be a liquidation of the bad spending. the mal investment and the debt. so therefore, they will always inflate, they will always send a check and they leave. and they have the liquidation because real death goes down . you know, just a simplified if you double the money supply and the value the dollars, you know, goes in half your half as much in real value. they always do it that way. and they always use the share tactics to get people to play the political game of who are the saints and who will do well and who will spend the money properly. and they go and argue district, but eventually it's going to come to me then, and i smell that it's getting closer because what they're doing is so outrageous and they, but they will not, they will not default and quit sending checks. there tends to be a little bit of political grants and you mentioned that yourself, as you know,

one party is always against what the other party is doing and it seems to be whatever party can hold it up once to do that. so is this really just a political moment that, like you said, it will eventually be just resolved? well, it is political, all i argue there's too much bipartisanship, but most of that are a lot of the fan pharaoh is real overpower and personalities. but if they have to have a bill where they would cut our military budget in the side, we spend too much money overseas. there is not going to be many dissenters. sometimes you get 5 people to agree to that. now it will continue. are they going to ever do what they have to do? they have to cut spending if they want to have a correction. but both parties are for the welfare state, some like corporate welfare, more than the other kind of welfare. they're all for the welfare state. they're all for the federal reserve. they're all for deficits don't matter. and, and the rest of it is free and fair. but the important thing that there are,

you know, who gets to make the final decision to where the checks are sent and the which protect your particular special interest that will get, get the benefits. and that goes on all the time. so it's a big deal. but there are certain things, the foreign policy won't change overall. yeah. even though they're fighting about, you know, bond is being annexed in foreign policy. believe me, we're not bringing our troops home. it's not going to happen. we're going to be interventionist. we have an empire they found and there is no real opposition to that. there's no real opposition to welfare ism. and of course, i think the worst kind of welfare ism is, is the corporate welfare ism, which is very much involved in the financial system and engage us by the federal reserve. yeah, and that's a great way to describe it to you is, i know we're washing democrats and republicans claim that they are just fighting back and forth over this, yet they have come together so many other time. not only to raise the debt feeling,

but at the same time last week we watch as they came together to pass the national defense authorization act, which this year came in and a whopping 770000000000 dollars. and i mean, when they say that they're fighting on one hand, but then on the other hand, they go through and they pass bills like that. why should that be telling the american people how the american people wake up and realize that this is coming to an end? and there are solutions that are not difficult. if an individual does the us, they know that, wow, you know, that's real bankruptcy, i have to pay the bills. yeah. maybe i can get a bill from, from the government or something will happen. but we have to realize it's bankruptcy is. you know, the corruption is in the destruction of the money. and if people don't understand that they will never say, well, you ought to cut spending, isn't that the solution? now they're never going to accept that. so that's why people should be prepared for

a lot more inflation and right now, price inflation is raising is go ahead and the other, the, what they refer to is, you know, the cpi and the p, p i, as, as telling us how much inflation we have but they're looking in the wrong place, that's a consequence of the inflation, the inflation little bit a chart. so what happened to the money supply? just send these well, since $971.00. but it also a year and a half ago since we've had over the charts are just skyrocketing and they can only be sustained by amplifying that and doing more and more and more. and till the people lose confidence in the dollar. right now there's a lot of confidence still remaining with the dollar and people will still take our dollars. but. ready eventually the confidence in the got in government right now is going down. the confidence in the dollar is last. we are not a strong, we don't have a, an international currency is a strong was,

it was had the be the 1st day anyway, but that was going to am, and people have to realize that. so i'm, i'm concerned about what happens with that because we've already seen the breakdown of society here, you know, with, with the, with the riots on the streets and a breakdown of law and order. well, how do we solve the problem? fire the police, get rid of the police, we don't want them meddling. so it. ready doesn't matter, as soon as they have a problem that they create, they just do more of it. it has certainly been a year all around and i'm glad that you bring up confidence. because as we've seen, the markets are really relied on just about anything they hear from chairman jerome powell and when we bring it back to the federal reserve. i mean, we're watching it continue to keep interest rates near 0. continue to purchase 120000000000 dollars each month in bonds. and yet we're not seeing any movement

with them. they keep saying, oh, we'll get to it, we'll get to it. we're just going to talk about talking about it. why don't you think that the fed has actually made some move, especially in the last few months as we see prices skyrocket? yeah, well they hit him, but they pretend they know they know what they're doing is dangerous. yeah. 2019, you know, they, they decided to shrink the balance sheet and i did that for a few months. and the stock market in like it. and the federal reserve number one's sure is to keep stock market high and friday. and that's their number, one constituent has nothing to do with a healthy economy. and the real truth is, is well his being transferred under this system. and he goes from the more socialistic and thor, tara, you get the, the greater the attack is on the middle class. the middle class is shrinking. there are a lot more poor people. we have more people out on the streets ever before. but they're doing the same thing, but that is a predictable event. the hard thing is,

is how do you get a majority of the people say, you know what? i think i think may just be right on this. i think we have to cut back on our own budget at home and they have to pay off the dad and go back to work. but countries don't do that. we're not unique in this aspect, it was just getting caught up because we haven't switched assess, spending way over our heads. and i really put the blame when it really got out of hand as 1971. when bretton woods broke down. and there was no restraint whatsoever in the creation of new money, and they're not going to slow up, it's, he's an addiction. and if they do, the same thing happened a half a light in $192019.00 is a stock start down and they will panic, but eventually, just printing the money will not settle anybody's confidence. a matter of fact, it will be doing the opposite. eventually every time they say, well, what do you need more money?

more money is going to more salary. they last lack of confidence. and so they're, they're in a difficult position. but right now, they're limping a lot, getting away with this because anybody who complain, i'll send you a check, i'll send you a jack. but eventually the check is going to bounce because it will lose its value . but they will keep sending the checks that i can guarantee you. they won't stop sending the checks to everybody who demands it. yeah, those history lessons are all too important, especially when you have a government that just continues to raise that feeling as they go along. great inside, i was privileged to have you on the show today, dr. on paul. thank you so much for your time. thank you. the time now for a quick greg, but when we come back, a new report says, china's belton road initiative has created hundreds of billions of dollars and hidden debt for low and middle income nation. we have analyst analysis on the other side as we're going to break here. the numbers at the close,

the ah, ah, ah, the a try now where we received so many inputs on a daily basis that are completely, i'm related to reality. so think about how in social media filters and they basically present themselves in very unrealistic way. and so we come out of fomo, there is and be involved more than that. it's about the sort of envious or something that may not exist. and it is also really tied to the fact that as humans,

we want to be part of the crowd. ah, the latest one most and you know what the most of the location of the unit 731 was a unique organization in the history of the world. what they were trying to do was to simply do nothing short and build the most powerful and most deadly biological weapons program that the world had ever known. ah, the real to production. but it will show up enough key which will learn. so new living

keep money tomorrow, thought this new them all new and i got the sale. i wonder i wish you know about joy. who knew he didn't more than a g. i had a political mother and all body bill you nice to do want to on this? she might new on it and all. i isn't more more. you put them out to take your bus. i walk back a new report published tuesday claims china's belton road initiative has burned in

many lower and middle income countries with quote hidden debt worth hundreds of billions of dollars. the report comes from aid data, a research center at the college of william and mary in virginia, which dug into more than $13000.00 debt finance projects worth more than $840000000000.00 across the 165 countries. the findings covered 18 years to the end of 2017, but a lot of the focus has been put on the belt and road initiative. the massive infrastructure project adopted by the chinese government in 2013, with the intention to invest in as many as 70 nations international organizations. a data says $42.00 of these low and middle income countries have debt ex, closer to china, which exceeds 10 percent of their g, d p. it also found $385000000000.00 and so called hidden debt to china, which are not included in these countries. official borrowing record adding that many have under reported repayment obligations. so what does all of this mean for

the future of those involved with bell road? well, joining us now discusses, boom. co host, chris, the i and professor richard wolf, host of economic update and author of the sectors is the system when capitalism failed to save us from pandemic or itself. thank you both for being here. christy. i want to start with you. the report mentioned the chinese lending had previously been directed mostly to the sovereign bobbitt borrowers like central banks, but now a 70 percent is issued across state owned company. the bank joint ventures and private institution was to take away from all that well, there's actually a couple take away. the vast majority of china's finance portfolio included semi concessional loans and export credits compared to the u. s, which mostly provides its financing through grants. so under the belt and road, china's overseas funding has been a bigger and therefore a riskier venture. as such, most of the state own commercial banks that are taking part in this lending have relied on tools such as collateral. they should and using an asset to secure

a load in order to mitigate risk. now this is standard practice. we see that in things by credit today, where if your score is in high enough, you need to put a collateral. so this isn't anything new. however, the result is a greater depth burden for countries along the belgian road. and as you mentioned, 44 countries owed more than 10 percent of their g d p to the chinese government. but this isn't surprising, considering that these countries wanted to be a part of this initiative and therefore reap the benefits of trade and comment that they get. you can't read the benefits for free without putting anything up. and that being said, the report also claims that there are now these so called hidden debt traps, which may end in beijing seizing belongings and properties and structure where money is owed and not repaid, thereby spreading apparently, chinese influence and soft power. these issues have been wildly overblown, because let's talk about another study in 2020 by john hop in college. it was discovered that between 2 102019 china actually canceled $3400000000.00 of debt in

africa and an additional $15000000000.00 was restructured or refinanced. no belonging had been seized. so a lot of this report is fear mongering to show china and bad light and may countries viewed as a threat. it's going to take over everything as part of this master plan. no, it's actually a very fair agreement, which is a risky joint venture with mutually agreed upon terms. and the risks are taking account in the form of collateral stake. same as how we do business here in the states. and know when we talk about that specifically to china, we hear this analysis that these debt jobs could result in beijing, seizing assets if they were not repaid. but i, she noted that doesn't always seem to be the case. in fact, that study published last year by the trying to africa research initiative on that between $22019.00 china had cancelled about $3500000000.00 in debt in africa and restructured another 15000000000. so would you also say that these concerns are

also overblown. look at, we have 300 years of colonialism during which europe ian countries regularly made loans of various kinds to 3rd world countries. let's remember alone is only the 1st step in a complicated relationship. the benefits to china, of giving a loan or not just on that particular project alone is for it opens up trade relations. it opens up investment opportunities. the chinese are very sophisticated, understand that the payoff, the pay back from making a loan is far greater than whatever the percentage of debt is. so of course, if the country can pay back, they will work out an arrangement because they don't want to lose all the other benefits. nor is that in any way unusual, the whole world just worked out. the greatest one of these arrangements with argentina. more than once in the last 10 years with argentina because of the

importance of that economy for lenders around the world. so yeah, this is fear mongering with some statistics that takes an out of context because again i as chris incorrectly said, the chinese are doing what is a logical growth for them with their economy. and they're working it out in a very typical and reasonable way with the 3rd world countries. it looks better the kinds of deals they're making than the ones that in the old colonial days were imposed on these countries by the colonial masters and professor wolf. i want to point out something else here because in the 5 years covered in the report since the implementation of belt road, china spent an average of $85000000000.00 per year and development finance. more than doubling the us at $37000000000.00 per year, the world 2 largest academies had been spending similar amounts for the decade prior. why is china spending so much more on this than the united states?

well, let me be very blunt and very honest in answering, i know this is difficult, particularly for americans to wrap their heads around. but the united states now has for the 1st time in a century, a major powerful b konami competitor. and the united states is having a hard time maintaining its dominance, in part because the chinese are a real challenge. you see it everywhere. the number you just quoted, the greater role of china in helping africa develop is one. if you take a look, for example, at high speed trains the chinese or decades ahead of the united states. sooner or later we as a nation, i'm going to have to decide between pretending it isn't happening, being militaristic, aggressive, and hostile. on the one hand or working out a co existence, we can both live with, which is for me, the obvious better choice. certainly be interesting to see if the united states

gets there. no. christy, another aspect to this is that the a data report also estimates the 35 percent overseas project based problems like corruption, labor violations, and environmental hazards. does this say anything about the projects, or is this kind of to be expected as part of massive global investment? i mean, i think it's an accurate figure. no matter if it was china, leading a project or the u. s. leading the project. i mean, look at the u. s. as attempts in africa and all the 1000000000 spent on african development programs. they have all failed due to corruption. it's kind of just the nature of things when dealing with undeveloped nations. because an undeveloped nation lacks rule of law or structure and to them, it's not so much as corruption, it's more so way of life and a constant power struggle dynamic. there isn't a stable government, a stable governing body stable currencies, no checks or balances or authority to look over your shoulder and make sure people

aren't taking bribes. the fact is that if you're going to go to work with the developed nations, yes, you can attempt to change it and put some structure around it, but it won't be easy until they pull themselves up, and those change from the inside, then there will be corruption because the strong will always up on the weak. so china is trying to facilitate more trade. do more business attempt to build some sort of infrastructure around these nations and boom bus, chris, the i professor richard wolf, unfortunately have to leave it there. thank you so much for your time today. thank you. and that's it for this time you can get boom, both on demand and the portable tv app available on smartphones and tablets through google play in the apple app store by searching portable tv. portable tv can also be downloaded on samsung, smart tv, and roku devices, or check it out at portable dot tv will see you next. that me. i

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