[000:00:00;00] the there says boom, but the one business, so you can't afford to miss branch of war. and i'm rachel blevins in washington. coming up, inflation continues your grip not only the united states, but also the world straight ahead will discuss the impact of having on markets and how some investors are looking to had a volatile, weak, and trading, and showed the dominance of the dollar be on the line later on we talk about china's move to develop its own digital payment system. get a lot to get to get started and we leave the program with more data on inflation in the world. the largest economy, the core personal consumption, expenditures, price index. boy, that's a mouthful. which excludes volatile food and energy prices rose by 4.9 percent in

2021. that's the fastest paces, $983.00. now while the consumer price index, which rose by 7 percent is more widely talked about p c. e is a major gauge used by the federal reserve to determine policy. now, prices have been rising throughout the year, and a record number of people have left their jobs and what is called the great resignation. the labor department also reported that wages for civilian workers increased by 4 percent in 2021. the most symmetric started being tracked back in 2002, that increasing wages is still well below the rise in prices. now despite higher wages and economic expansion last year, consumer spending also felt by more than half a percent in december after gaining the previous month. and it's been a rough week for global market, says we are seeing a lot of red arrows on the board that concerns over rising inflation and central bank action and response. well, it's cause another downward trend. we start in russia where the mo, acts in the wire here. it's actually up to percent for the week despite

geopolitical tensions with the west over ukraine. the mo, x are gain of 7 percent on thursday to put it into positive territory. the rubel also strength and against the dollar and euro, that same day energy and financials lead the way with ross and gas problem. and spar bank all up more than 8 percent on thursday alone. let's move to asian markets where the shanghai composite is down by more than 4 percent for the week thing. steady losses throughout, as has been the case with global equities in recent weeks, settlement was weekend over action from the u. s. federal reserve plants to tight and monetary policy and uncertainty, leading into the lunar new year, the energy media and real estate sectors. all took a hit this week and hong kong we have another red arrow for the hong kong, down for and a half percent for the week. the hung sound followed. similar trends we saw in shanghai report surface this week that chinese, the chinese government, that is to say, is looking at a breaking up china ever grand group has its debt was continue ever. grand stock

fell another 13 percent this week has the entire property sector took losses in japan, the new k is down by 2 percent. the losses could have been much worse. but a friday rally saw the index gain 2 percent back, but not enough to make up for the losses earlier in the week in response to the end of easy policy. from the fad here in the united states, japanese investment conglomerate, soft bank side share rise on friday after announcing its current c o plans to leave the company after apple. and now it's, it's earnings had beat estimate suppliers to the tech giant rose throughout asian markets, including in japan. moving to india, it's more rad for the sense ex, falling 3 percent this week. then next is down about 7 and a half percent since october, high rising energy prices. they've taken a toll, they creating more inflationary pressure. there are also concerns about monetary policy in the us. this insect took most of its losses on tuesday. in australia, the s x is down by nearly 5 percent for the week. the s x officially entered

correction territory this week after taking 4 straight days of losses along with keeping an eye on what the us central bank is doing. investors are also watching the reserve bank, abbas julia, which is set to give insight into it's policy moves just this next week. and we have another red arrow for the all share in south africa. the south african central bank actually did raise its benchmark lending rate for the 2nd straight meeting, as it attempt to deal with rising inflation. $25.00 basis point increase put rates at 4 percent the highest in 2 years. now let's go over to rachel with europe in the americas. thanks, brent. here we certain new pay where the for the is down, but just slightly. the nation's latest forecast from the i m. f predicts its growth in 20. $22.00 will also be down from 5 to 4.7 percent. however, the u. k is still expected to be the fastest growing economy in the g 7 for the 2nd year in a row, outpacing both the u. s. and germany. however, the nation continues to battle soaring, inflation and supply chain shortages. and the announcement of

a 2nd interest rate hike is expected next week. nearby the german dax and the french cack are both in the red. while france saw more growth in the 4th quarter than expected germany contracting point 7 percent more than twice what was expected, sparking concerns of a recession in europe, the largest economy that can bind with continued supply chain shortages and soaring energy prices have put the european commissions gauge on sentiment out, it's lowest point in 9 months, across the atlantic now to brazil, where the bo best, but is in the green up nearly 3 percent for the week and want build like a bit of a break for the embattled economy. it's unemployment rate for more than expected. down to 11.6 percent. brazil central bank is expected to deliver a 3rd straight 1st rate hike, $150.00 basis points next week, as it continues to battle with a recession and inflation in the double digit. but it's a different story over in mexico where the b and b is down. but the latest data

shows the nation's economy actually grew in november by point 35 percent marking its 1st growth in 4 months. mexico, the exports were also up 19 percent in 2021 reaching nearly half a trillion dollars as their recovery here in the u. s. spark the need for cars, chemicals, and other products. and now here to the united states where the tao, the nasdaq, and the s n p are all up. as we have noted throughout this week, markets have been on a roller coaster, while earning season is in full swing. the federal reserve also confirmed it plans to raise interest rates as early as march for the 1st time since 2018 and the ongoing tensions with russia and the binding ministration. support for ukraine have also fueled a good week for defense contractors with lockheed martin stock up over 5 and a half percent. while raytheon is that merely 4 percent for the week. and finally, let's go over to canada. over the csx is in the green. inflation has soared to 30 year highs in the nation, sparking warnings that it is hating low income families, the hardest,

the bank of canada confirmed on wednesday that it will keep interest rates near 0 for now. but it said it has plans to begin increasing those rates in the months to comp moving into next week. we will continue to keep an eye on the state of inflation and its impact on the ongoing recovery and from inflation to inflation hedges. just days ago, we were talking about gold hitting to month high, but that's no longer the case on friday after back to back drop that goal prices to 2 week low. the federal reserve at its plans to raise interest rates have been seen as having the biggest impact on the trustworthy hedge after the weather, the storm, early on in the week that sent traditional stocks on a rollercoaster. and speaking of target and bitcoin has taken quite the beating with price is falling over 22 percent in the last month. but when it comes to the argument of whether bitcoin is truly and inflation, hedge is supporter, say the focus shouldn't be on the price, but should instead be on it's truly finite. supply of 21000000 coins and the

algorithm that regulates that supply. so what can we expect as inflation continue to store around the world? well, joining us now to discuss shift change economists and global strategist at euro pacific capital and natalie burnett, host of coin stories. it's great to have you both on the show today. natalie. let's start with you. what do you make of this argument that bitcoin is in fact, inflation hedge and that the focus should be on more than just what its price is that right now? yeah, i, well thanks so much for having me. look, i think we have to remember that in big coins entire existence, the fed has been inflating and stimulating the economy and debasing the currency. and what's happened to bitcoin in 10 years? it's gone up 500000 percent. how about last year? just 2021. a shorter time horizon we printed printed printed, we saw c, p, i get to 7 percent, s and p went up 28 percent gold fell 7 percent. and between what up 70 percent. so what's the argument that it's not a hedge?

you know, i think peter will agree that when you have a long term investment in mind, you can of a short time horizon. and if gold is still an inflation hedge, then bitcoin is sort of a turbo charged version. bitcoin is going to go up 10 x while gold sort of putters around. and you know, with the bad tightening or pricing in tightening, we expected that pulled back. but if the fed loosens again, like scary sort of hinted today, maybe marking a bottom than that, we'll send everything going, especially bitcoin for peter. what about that? because gold look to be almost bullet proof as it hits human pies at the beginning of this week, though, i know that if you're a gold hobbler, if there are such a thing i know to natalie boy her, you can't really chase that price. but what do you make of those losses? we've seen over the last couple of days as we've seen concerns about what the feds doing, as we've seen concerns about inflation as we've seen markets drop. yeah, well 1st of all, most of the games that bitcoin enjoyed last year had been lost. in fact, people who bought the coin last year, many of them are already down 50 percent. and of course,

there's 17000 other cryptic currencies that people were able to choose from, and they're all getting obliterated. and none of them have anything in common with the goal. they all have something in common with each other. but big one is not a visual goal that it's not a deflation, has just the specular token and is price is going to be a function of supply demand for that token. it really has nothing to do with what the fed is doing as far as the dollar is concerned. gold is concerned rather the reason a goal. busy this had some problems recently is because the market actually believes the fed, they believe, powell, when he says he's going to do whatever it takes to bring inflation back down to 2 percent. he's gonna raise interest rates. he's going to start shrinking the balance sheet and the markets are believing how, but i think he's just bluffing. and even if he, if he follows through with the right hit rate hikes, he's promised that's too little too late. it's not going to be nearly enough to slow down inflation. and so it's not going to restrain gold, the, the type of rate hikes that would be required. and the type of our balance sheet

reduction that the fed would have to engage it to actually get in front of the inflation curve and bring it back down, is much too high for the bubble economy to bear if, if pow actually tried to fight inflation. he would destroy the bubble economy, the stock market crash. we'd been a mass of recession, lots of unemployment, huge financial crisis, and we would force the government into insolvency. and once the markets come to terms with this reality, they're going to be buying gold. natalie, i think there was a period of time when we looked at bitcoin as digital gold, but now you know, to, to peter's point here, a lot of this has become a speculative asset. and i think a lot of that comes from the fact that we see so many institutional investors in there now. and what you're seeing is it moves along with the market because institutional, they're trying to cover their money back and forth. is there something to that point? natalie? well, i do agree with peter that the fed is bluffing, and they're going to have to insert liquidity. and we've seen that big coin is

largely liquidity driven, just like equities. and it's been sucking money out of both gold and bonds. now the more money that policy and obviously the price goes up and also with futures trading. does wall street have the power to push around the asset on the margin? sure, but if the secular trend is up, which it is, they can't push it around for too long. and when it comes back, it has the power to spring up really hard and really fast because the fundamentals for big point are they're the holders aren't selling, including peter, sun, spencer i, the number of addresses are going up. we have the hash rate near all time highs, despite geopolitical issues and cause it's down in russia. and, you know, i think that when liquidity resumes, because the fed realizes they cannot taper into a slowing economy. it will send stocks going and big when will go even higher. now peter, i want to give you a chance to respond to that. but also when it comes to where we're seeing the interest in inflation hedges, where do you see it going in? is it going back towards gold, or are people paying more attention to those other crypto currencies that are out there and going towards those?

well, horace, of all bitcoin isn't sucking anything out of the gold market or even the bond market. the only thing big quite is sucking is money out of the pockets of people who are foolish enough to buy it. and that would include my 19 year old son spencer . but i think right now most people are not really worried about inflation. again, they believe the fed, so they think that the inflation problem is going to be solved once they realize that it's actually going to get worse. and once the fed is ultimately forced to do an about face, because how things that he could raise rates without hurting the economy or employment, he thinks we have the strong economy. we don't, we haven't gigantic bubble. and even the smallest pins is going to prick it. in fact, just talking about raising rates as it has already pricked the bubble, were already pretty much in a bear market now. and so i think that sometime this year, whether it happens before, the 1st rate hiker after power is going to cave and he's going to go back to bigger q

e and rates go back to 0. and that's when the markets are finally going to understand the predicament that we're in. i mean, they should understand that already. but for some reason they need a safe to drop on their head. and when that happens, then they're going to be looking for inflation hedges. they're not going to care about big coin, and that's for gamblers. they're going to look for a real store value, and they're gonna be buying gold. they may be buying silver as well. and i think they're going to be buying all sorts of real assets to get rid of dollars. but real assets don't include any of these crypto currencies. i mean, there are too many of those, and they don't have any actual value to be inflation hedges. so i think with the air comes out of the stock market bubble as it is, it's coming out of the crypto bubble to got about 30 seconds. love natalie. i want to give you the final. where here, do you agree with the notion that americans are concerned about inflation right now? i think it's the number one thing that they're concerned about because wherever they go they see price is going up. 40 percent at you know, the gas prices are going up at the grocery store, meet their houses,

rent is going up and i think there are really concerned and they don't own assets the way that the rich people do. right. so we've made a lot of billionaires richer through quantitative easing, and as mister peter says that the quantitative easing is going to have to continue . and when it does, bitcoin will go up just like it has for the last 10 years. abilene, i think, and consumers are concerned, i'm talking about investor and they're the ones that are, that are cool is, but consumers are very concerned and they should be right. and unfortunately, it's going to get much worse for consumers. we're going to believe the conversation right there. natalie renella point stories and peter schiff, of euro pacific capital. thank you both for your insight and following the wave of brutal us sanctions. chinese telecom from wall way has managed to expand its mobile footprint as other devices have begun to adopt the company's harmony operating system. now, according to reports, chinese smartphone manufacturer gianni it has a now it's the, it's g. 13 pro model will be the 1st non while way phone to use the company's proprietary o. s. b adoption marks, a high note for

a while way as the current count of harmony, user is now standard more than 300000000. now, despite the, when it comes, as apple has not overtaken while way as the hottest smartphone in the chinese market over the last quarter of 2021, claiming 23 percent of the nation share the final 3 months of the year and time. now for a quick break, but when we come back, china is looking to boost its presence in the digital payment sphere, but will the nation's cross border system soon take off? we'll discuss. and as we go to break, here are the numbers at the clothes shoes.

the road is driven by adrenal shaped banks centers and those with theirs sinks we dare to ask it's an open secret that private military companies have been playing a role in om conflicts. world wide u. s. government doesn't track the number of contractors it uses in places iraq or afghanistan, the united states army. and the military in general is so reliance on the private sector. i would call that dependency, but we don't know who's the on the ground presence of these companies overseas. we

just don't out west and private military companies can in their turn use so called sub contractors from countries with trouble pass. the chances are quite good that they had also been childs diligence processes. i was a child, as i drove professional jo, it is with when the full moon wouldn't look good if i said that with, with no flow, minimum own wall. sure. which way to be merciless killing machines? now they fight and die in other people's was people carol lot, when a dead soldier or dead marine shows up in this country and then we start asking yourself, why did they die? why, what were they fighting for? nobody fathers down to my good contractors in

with welcome mac. china has now seemingly thrown its strongest support behind russia over increase tensions and talks of a possible war over ukraine. no smokes meant for the chinese foreign ministry minute clear. just a day ago that cooler heads need to prevail and that china wants to see a return to the minsky agreement of 2014, in 2015, adding quote, we call on all sides to say, cool headed and avoid doing things that will escalate the tensions and hype up this crisis. meanwhile, china been quietly working on its own. busy busy payment system to allow cross border transactions in you are as trade and investment with the rest of the world grows. china cross bank or cross border inter bank payment system will be a huge part of this new digital currency system. joining data break all the sound is boom by the co host, an crypto analysts crit, the i and ben swan. all right, chris,

the i want to start with you on this one breakdown this cross border inter bank payment system. is this trying to answer to the swift banking system? of course it is. this has been something that china has been working on for years and years because it had the threat of being cut out of this was system for years now. and it was something that the u as hell of a china in case the dispute a word to escalate. and that would have been devastating for china's financial economy. the last time that this was threatened was during the trade war dispute with trump. so now the c i p s, is currently laying out the technical groundwork to prepare for the internationalization of the r m b. so as of now the average daily transaction volume is si, reach $49000000000.00 in august with $1144.00 indirect participating banks in a $103.00 countries. so the global use of the r and b is still quite small compared to the actual size, the chinese economy, but it is growing steadily and the r and b is now hit a 6 year high in terms of popularity with cross border payments. so it's popularity

as an international currency study we climbed in the last decade as global funds boosted their holdings of chinese bonds to a record amount. and this is slowly eroding away at the dollar and euro domains, which saw it's 8 month market share fall. so it seemed like china has finally reached this critical mass, big enough for it to try to accomplish something like this. and if executed correctly, it could render one of the most powerful weapons the u. s. has against it, a moot point? yeah, it really does seem like china seeing the need not only for its own country, but also for other countries now been, i know we talked with you earlier this week about exactly this issue when it comes to russia. in fact, british prime minister boris johnson on tuesday said he was discussing banning russia from the swift global payment system with the united states saying quote, there is no doubt that this would be a very weapon. does he have a point there? so i like to give you guys analogies when we talk about these kinds of things like oliver today. so last year i was in rhodes greece, right,

which one of the last medieval cities in the entire world is still looks like an ancient medieval city from a 1000 years. and when you go outside the city, there are humongous boulders that were used by by catapults in order to lay siege to the city. right. a catapult was at one time a very potent weapon, very powerful, and you could knock down enormous walls and get into cities with them. the problem is, is that the catapult only remains potent, so long as nobody else advances. that's the way bores johnson is thinking about the swift system. right. and so great. oh, yes, the swift system would be a potent system against russia, pores johnson, that ship of sale that's over with crypto currencies. years ago already overcame this issue. so the idea that you're going to be able to cut countries out of this with banking system is over with, right? so whether we're talking about russia or iran, or venezuela or north korea or china, those countries all have the ability to interact with each other through digital systems. and what china's doing right now is to christy's point,

is solidifying and bringing together all of these countries to say, well, why don't we all kind of work within one system? obviously the chinese want it to be their system. other countries might have a preference for it to be their own, but china is ahead of everyone else on this game. but the most important point is that whether it's bitcoin or a centralized digital currency, as in the case of the chinese swift is only powerful in the past, it is no longer powerful and it will certainly will now be powerful, moving into the future. and it seems only fitting them brush johnson in his medieval city, having no idea what's going on in the rest of the world. now, christie, if we take these 2 situations together, then would it make sense that china is setting itself up to be the banker for nations like russia, iran and venezuela all receive some sort of similar treatment from the u. s. i mean, i think china setting itself up to offer a competing service and i wouldn't just isolated to say it just want to be

a bank of these specific nations because the running joke with china is that it's not very good at coming up with original ideas but wanted to see how these, how something works kind of recreate it and make it cheaper and more efficient. and that's how china competes in the grand scheme of things. so i wouldn't be surprised at the c. i. p. s undercuts a swift system in a big way, and right now, it's not a great time for banks, interest rates are low and they're under threat from digital currency. so banks are going to take what efficiencies and cost cutting measures they can. and on top of that, the c i p. s is likely to be more efficient than the swift, because currently switch transactions can take anywhere from 2 to 5 working days to be completed and reach the destination due to the evolvement of sometimes several intermediary banks. so already the c i p s network is expanding the window for payment processing in order to cover european african n middle eastern time zone. so that way clients can actually settle payment in their local time rather than waiting for next a settlement, which is currently the case with slit, which is now a huge deal in boosting out efficiency. so c i,

p has network has adopted iso 20022, which is the emerging global, an open standard for payment messaging. so it's literally laying out the groundwork to be completely compatible with all businesses around the world. so i don't think china is setting itself up just to be the bankers of a few countries that don't get along with the u. s. it wants to be the 2nd alternative, the competing global network. absolutely, but at least gives those a nation that option for sure. now, bad, i have about 30 seconds left for this, but we know that the u. s. has been able to keep it status as having the world reserve currency because of the petro dollar, at least in part because of it. is this opening the door to a petra you up? i don't know that is necessarily opening the door for that, but i do believe that the days of the petro dollar are severely limited. we will, i don't think the united states is going to be able to continue to hold that place . we know that even as recently as 10 years ago, there was a big push in the african countries to move away from the,

the dollar as the reserve currency for oil, the petro dollar. so listen, the days are limited and the only way you try to hold onto that is by going back to the same play book or innovating countries right now, innovating the united states. not really doing that. it's sticking with the same playbook boom bus been swat and christie. i like that. you guys bring a different playbook every day. thank you so much. and that's it for the time. you can catch boom bust on demand on the portable tv app available on smartphones and tablets. google play in the apple app store by searching portable tv. portable tv can also be downloaded on samsung, smart tvs and roku devices, or simply check it out at portable dot tv. we'll see next time. mm hm. yeah, and that was correcting, they're having a nervous breakdown,

the very public nervous breakdown as they should. things are going their way with chance all down through here, calling this larry over here. so your camps are always a little nicer than this. this is evidence of absolute poverty, despair. people in our city and other cities all across america are living like this. where at the original need and village that opened up in 2018 right now. there's 31 homes on the property. it's a little over 4 acres with 31 homes and the community center. unfortunately, a lot of people don't make it out of edition more homelessness. my, i'm just really happy with it. that you with,

oh, no. incidence of havana syndrome, as you mentioned before, things like difficulty cons, great insomnia memory problems are so vague as to be experienced by just about everyone who was ever lived in any given week. right. and so now people all over the world who are military personnel, or intelligence officers or diplomats working for the american government, are now on the lookout for these anomalous help incidence. and literally people are getting up in the morning and sneezing and attributing it to a van a syndrome. i mean, because it's so bay it's an open secret that private military companies have been playing a role in our conflicts world wide. u. s. government doesn't track the number of

contractors it uses in places iraq or afghanistan, the united states army and the military and general is so reliance on the private sector. i would call the dependency, but we don't know who's the on the ground presence of these companies overseas. we just don't out west and private military companies can in their turn, views, so cool subcontractors from countries with trouble pass. the chances are quite good that they had also been charles diligence. i says, i was a child, as well as my job professional job is, is with the whole $141.00 to $5.00, said that with, with no food, no minimum own wall, which i mean to be merciless killing machines. now they fight and die in other people's was people carol, lot one and a dead soldier or dead marine shows up in this country and we start asking yourself,

why did they die? why do what were they fighting for? nobody bothers, asked about that contractors, a with these top stories in this, our president biden plans to position us troops in eastern europe, in a show of force against russia. despite nato's chief admitting, there's no certainty about whether moscow would invade. you cried. meanwhile, germany swim against the nato tide by resisting sending arms to you. craig, move that's got the backing of the german public. according to recent polls against the fundamental right of bodily autonomy, a group of british national health service staff to the government as tens of

thousands could potentially faced the fact if they don't get a cobit gap by next week,