ben swan. ben i.b.m. stock obvious take a hit today after this announcement why is that. yes so i.b.m. was down about 4 points today it looked at the end of the day i.b.m. made the right decision and they they're paying at least a short term price for it but i absolutely think it was the right decision essentially coming out and saying look facial recognition technology can be and will be used and abused in the future and so we don't want to be a part of that as a company we don't want to contribute to essentially profiling certain groups using mass surveillance on the public i hope that i.b.m. as they do this will stand firm in what they're doing but investors obviously were not thrilled about it because let's face it recognition is a huge part of the tech industry and moving forward it's going to continue to be a huge part of not only the tech industry but military use and law enforcement and i.b.m. it's spend so much time and money with their technology which is a huge portion of facial recognition technology as well now there's some concern that facial recognition technology is actually not reliable why is that and did that include. did that include what i.b.m. has put out and for as far as facial recognition. it does include what i.b.m. has put out in terms of their own facial recognition technology look here's something that's very important that the public understands when it comes to facial recognition technology for the types of programs that have been created so far they are notoriously inconsistent and inaccurate depending on which type of pigmentation of skin you have so if you are a person of lighter skin pigmentation facial recognition has to be essentially kind of tweaked to recognize your face if you are of a darker pigmentation then you will get a lot of false claims made by that facial recognition technology so if you want to pinpoint it on people with darker pigmentation you have to tweak it for that and you get lots of false positives on the other side so what you find with facial recognition is that the way it stands currently it is notoriously if you want to use the term racially in the eye. in equal or racial inequality you can find a technology that is more racially and equal and not equal then they should recognition because it cannot right now accurately notify authorities of a false positive match depending on the race or the skin pigmentation of the person who was scammed now the announcement actually also included a explanation that the company will no longer sell facial recognition software to law enforcement isn't that the main entity that would buy this technology. well that's where their big customers are and that's probably why i became stock drop today look the biggest customers who are looking for facial recognition technology are going to be who it's going to be the u.s. government it's going to be the u.s. military it's going to be police departments and who is one of the biggest players in this space right now amazon and its recognition technology which by the way has been sold to law enforcement police departments and when employees of amazon said they didn't want to do it jeff bezos basically told them to sit down and mind their business and he will run the company so i.b.m. may be stepping out but there are plenty of others who are stepping up and we're not seeing any other company who's getting on board with i.b.m. to say hey we're we're on board we're going to do the same thing and so if you're not seeing any of that right now now ben there is one more question that i have is is kind of i.b.m. was insinuating hey when there's some laws in place or when there is kind of a ruling on this that we might be able to restart our facial recognition. portion of our business program yeah what are and are there some non you know invasive facial recognition uses that we're seeing out there that aren't don't include law enforcement in some capacity sure absolutely like for instance a great example of that is the facial recognition technology that facebook uses right now so right now when you put up a picture on facebook it will put a little square around your face than it did if i see you based on past pictures right but facebook actually just paid a huge fine recently for doing this because they were using facial recognition technology. scanning photos of people without proper permission so they paid a huge fine for that there are not very clear guidelines in place for how to do this but there are actual kind of practical uses

now to discuss these bring back boom bust co-host christiane and we also have boom bust co-hosts ben swan ben i want to actually start with you in this conversation why is a big point able to break through that barrier. yes kind of a tough question because i think there's a lot of kind of psychological pressure that prevents big one from getting over that but there are 3 things in particular that seem to affect it one of them is the federal reserve you know that federal open market committee meeting that was held on wednesday and when you did those meetings it seems like every time they come to an end there's a little bit of a dip for big point as well as the stock market christine loves to use the term when he talks about buying the rumor and selling the news and i think with big point it seems like as of late we see a lot of selling the news every time there's another announcement we see that that number just dropped just by just a little bit for bit quite so that's part of it and then part of it also is the issue of the kind of this continued resilience it goes back to 2019 we've seen this

ben swan now ben in short what does this mean and what will the fed require banks to do. so essentially here's what happened in this really comes out of the doj frank bill going all the way back 220072009 remember when dodd frank was 1st put into action essentially with that legislation came rules where the fed has to annually stress test banks around the country to make sure that they're able to weather certain economic scenarios essentially and so the fed ran these stress tests and what they found was there was kind of a general sense of economic conditions being rough and then they ran stress tests on 3 different coronavirus related or specific scenarios one would be a you shaped recovery one is a v. shaped recovery and one is a w. shaped recovery meaning that you come out of a recession and then you go right back into it and so essentially they look at these banks and they found that there were at least 30 banks that failed this stress test that what they found was that these banks under certain conditions are right at the minimum level of capital that they're allowed to have under dog frank in order to not become insolvent and go under and so what the fed is essentially doing is saying for those 30 banks they will no longer be allowed to buy back their stocks and they will limit the size of dividends that can be paid back to shareholders at this time and you just mentioned that capping of dividend payments and requiring a large banks to actually resubmit and update capital play of why is all of this well it is simply it's because it is what the fed is finding is that under that dodd frank legislation these banks are not holding on to the capital they need to hold on to right now what they're doing is they're essentially playing too loose with the capital that they have the whole point of dodd frank was to say let's not go back into another situation where banks find themselves insolvent and where and where taxpayers find themselves having to bail out huge financial institutions that are unavailable to take care of themselves so god frank was essentially designed to say that's require that banks prove that they are being response. in the way they're behaving and that they don't have to get bailed out and what essentially the fed found 4 was 30 of those banks are not being that responsible and they're really in a position especially with coronavirus related economics at play they could find themselves in a very serious position so again as you said there they're capping these dividends they're saying you can't be paying out the shareholders right now you've got to really hold on to what you have is so that you don't find yourself in a position where again taxpayers have to bail you out it's fascinating because obviously you know so much of the economy relies on big banks but if you look at throughout this pandemic so many different industries have called for those bailouts and some of these are gigantic companies who are mainstays here in the u.s. who are saying basically we'll go under if we have to stay close if you're like how are you operating on that razor thin margins at least banks are to some sort being held accountable in that situation now on thursday christie and i actually discussed the rolling back of the volcker rule how does this move by the fed impact that decision. yeah i think that what we're seeing right now you know as you mentioned in the lead up here we saw you know stocks and banks go way of their doing well on certainly on thursday they were on news of this right and but what is that new saying the news is saying that essentially the feds are kind of laying back and saying remember the volcker rule remember the rules we put in place after 2008 to make sure we didn't have these problems let's loosen that up a little bit or let's at least loosen up our understanding of the rules we're going to change the rule but will clarify gotta love the word clarify which means we're going to apply new terms to this rule but it's so important as you just mentioned something that's critical the essentially during this pandemic itself we do see a lot of industries that are going to the government same bail us out the fact is it was only a little over a decade ago that wall street and banks and financial firms already had their moment and there was legislation put in place that said if we build you up today you have to act like this tomorrow so it doesn't happen again and now just over a decade later we're not holding them to that and we're going to talk about more about bailouts coming up in the show boom bust co-host and investigative journalist ben swan thank you so much. with so much news regarding regulation in the ongoing kobe $1000.00 pandemic markets worldwide are mixed on the week so let's start in russia where the mo x. is up for the week the index launched after our equity trading earlier in the week and the ruble neared a 2 week high on tuesday before weakening on thursday responding to a fall in oil prices but eased up on friday as oil rebounded and the country witnessed a fall in the daily number of newco 1000 cases let's move to asia where the markets they're all finished up on the weak u.s. regulatory rollbacks for big banks the shanghai composite is green after fighting back from a slip on thursday over the international monetary fund's updated economic growth outlook but saw slight gains at the end of trading the composite was closed on friday due to the dragon boat festival holiday in hong kong the hung song finished up just slightly for the week investors remain cautious over the coronavirus outbreaks in the u.s

coming on but joining us from atlanta georgia investigative journalist a boom bust co-host ben swan thanks ben thank you. thanks as always to you guys over to begin i hope you'll join me and often i'll be back with updates on our top stories. so what we've got to do is identify the threats that we have it's crazy it isn't foundation let it be an arms race is on often this very dramatic development only personally i'm going to resist i don't see how that strategy will be successful very critical time to sit down and talk. it's hard to take some from somebody if you know have some to replace. we want to do this interview today don't use market move and then they take me. off the area. so i'm going to tell you start selling drugs if we'll hire somebody put the money in it back. then just me all the way to life it's almost been basically mccullers peaceful for us all or. do you know what sickened me security positions over the last year that. david jacked me again. you see people get all their cars and i'll see you coming in the herd and it seems like they'll hurry up and run into the house like t

ben swan now ben on the news of this deal with the shares soared why did more markets actually react so strongly to this news. well the biggest reason they reacted strongly to it is because without this deal. it was essentially going to be insolvent within a matter of days as you heard in that sound bite there who they were really days away from this just to give you an idea of what this deal consists of as you said it's about $10200000000.00 in terms of a cash infusion into the company but it also allows for 20 percent stake by the government and 2 of the board seats after be given over to the german government as well now we've heard the german government say they're not going to be long term in this that they're going to get out pretty quickly or soon as they can is after everything stabilized but i think there's a serious question here about the issue of picking winners and losers i mean when when government steps in and puts in a huge bailout package for an airline and obviously it's a huge industry but they are putting in this infusion for one airline and then you're saying we're going to take part ownership of the company that doesn't apply to every business that suffer and it doesn't even apply to every industry that's suffering so when you take this kind of extraordinary step i think other industries look at it and say well why did they get this kind of a deal and we don't know ben we just talked about obviously them being on the brink of bankruptcy losing $1300000000.00 in that 1st quarter of 2020 so so how bad have finances beyond that been for the company and what does this bailout mean in terms of government intervention yeah just to give you some numbers here in terms of what's happening here so the company lost about $1300000000.00 as i think you mention in the 1st quarter of this year one point $3000000000.00 is what they had lost but they were at a burn rate of going through about $1100000.00 every hour that's how much they were losing at the point of this intervention has come so you mentioned at the beginning that that the single largest shareholder for the company heinz or herman theo essential had not wanted to do that he was holding off to do this that essentially did not. the government intervention nor did he want government to take those board seats and get control partial control of the company but at the burn rate that was essentially losing mo

ben swan now ben the chinese government has sold off u.s. treasuries in the past correct and what makes this time different than the last time. well one thing that makes it different is kind of the situation that we're in globally look at chinese have sold off debt in the past including $110000000000.00 just last year alone about 10000000000 dollars over the last couple of weeks so it's not a new thing necessarily but what makes it different is that china seems to be actively trying to divest right now of that u.s. debt and u.s. securities and trying to let go of those in the midst of a time when the u.s. is as as chrystia danielle were just talking about when the u.s. is printing money in astonishment rate with the fed intervening as it is in the economy printing some 2 trillion dollars just in the 1st quarter of this year a lot and now been part of the reason for this move was because reportedly the fed was looking at negative interest rates despite drove being specifically against it as daniel said as long as he's in charge is probably not going to happen she is the fed insider she knows better than any of the lot of us but as of today the fed you know did not lower the rates will that actually make any sort of difference. well i'm not sure it does make a difference in terms of the way china is you know because i don't think china is necessarily going to listen and say well we trust the drone paul is not going to do this and if it's not your own pal then it might be someone in the future when you're holding as much money in terms of u.s. securities that the chinese are holding you're going to want to divest that china is the 2nd largest holder of american debt in the entire world and so when you're looking at negative interest rates you know that obviously that's good for you know what the federal reserve is trying to do if they get to that point but it's terrible if you're holding that u.s. debt so i don't think the chinese are necessarily going to take solace in the idea of the drone paolo's going to save them at some point and again they going to look at the situation and say remember the federal reserve has been talking about negative interest rates for months even though they haven't done it now as of wednesday they said they're not going to it doesn't mean they won't at some point in the future and how much of this is actually about china attempting to kind of move away from the u.s. dollar as the world reserve currency because we've seen some other nations not like move fully off of it but kind of sell their stakes to diversify. yeah i think that's exactly what it is i think more than anything else what we're seeing is if you imagine the chinese and other nations of brics nations so brazil russia india china and south africa essentially looking at the u.s. reserve currency as a currency they want to get away from in terms of the economic control that the u.s. has as a result of it and so when they look at that they say well what do we do in order to really break free from that this is one step on the staircase that does that there are going to a lot of moves made by the chinese to break away from the u.s. dollar as that world reserve currency i think this is one of those steps certainly to do that and to divest themselves and open quickly before we were actually you know when i'm out of time ben boom bust co-host ben thank you so much for your time . thank you. and time now for a quick break but hang here because just on the other side the race to head the w t o is heating up as the e.u. and mexico have made moves to seize the spot straight ahead we bring you up to speed on the state of the race as we go to break here the numbers at the close. to. 54 jets and more than 1300 military personnel are headed to heal some air force base in alaska where is that to say come on i'll show you what's the reason for any type of enhanced u.s. military presence in this area rush up. what is it suddenly about the south china sea that makes it so that it 11000000000 barrels of oil. take a look at this map who really owns what kind of says no it belongs to us india says no we claim that that belongs to us both of these countries have nuclear weapons capabilities there is reason for concern so that's why we're going to drill down on this story for you today right here on the news with rick san

ben swan and christy i ben i want to actually start with you here how big of a push was this give kryptos currencies like bitcoin. yeah if you want to know how big it's going to be goes back to right now when you had a little bit of a pause there when you almost said 300000 had to correct it 300000000 users using pay-pal worldwide that's how big this is on we're talking about the ability for pay pal to reach into audiences that that where big coing and alternative coins have never been before just to give you an example of how big we're talking about you know coinbase is probably the most famous exchange in the united states for big coin they have about 11000000 users 11000000 on coinbase buy nance which christie is very familiar with knows the guys over there by nancy very well they're the largest in the world they have about 15000000 users so when you're talking about a company a behemoth company like possibly stepping into this space and introducing about 305000000 users to cryptocurrency it's a very big deal the real i think issue is whether or not it's just because or which alternative coins are all coins get to be a part of this is well because if you are in all coins and you managed to get on the pay pal's platform it would send you skyrocketing so it'll be very interesting to see how that part of the story plays out you know kristie we know the other payment processors have gone down this road before pay pal's primary fin tech rival square launched transactions in its cash app in the 1st quarter of the service generated 306000000 in because revenue alone now is it only a matter of time before pay pal gets into this space at this point. yeah it was doubly only a matter of time before all of these legacy payment processes jumped on board the bandwagon and it's not because they're necessarily believers are yes or anything but because of the opportunity because it's profitable and became trendy and just like square and facebook libra they're all seeing this as a very lucrative opportunity so at this is a big deal but it's also kind of sad when crypto which was designed to be free and get access to the masses but instead i had. they he meant stepping and self appointing themselves to be the good keepers the middleman to get access vary so much in point they said ben just mentioned when the entire point of crypto is to cut out the middleman but sadly we do kind of live in an age of convenience and so the easier the more convenient the more dumbed down at makes it for the ordinary user to get access to it quiet the more people continue to do news and adopt it and the more powerful that middleman gatekeeper becomes so right now in a really good position to capitalize on this opportunity seeing that they are already had that partnership with base so by offering to sell script on the platform they acquire within reach of its 300000000 active users so it's a double edged sword on one hand it will increase their points exposure and visibility to the average person but then on the wall there nor completely and trusting an intermediary to hold and store and transact your funds which is completely defeating the purpose of that line now ben we know that crypto currency faces that a lot of regulatory hurdles specially here right here in the united states so

and let's go ahead and bring in boom bust co-host ben swan to discuss this further now ben you actually kind of touched on it a little bit about government overreach on concerns and that nature but why does a pandemic spur gun sales i mean what do you see as the rationale here. yeah i think it's the same reason that people will run out and grab a bunch of toilet paper right why why would someone do that well because the fear is that we're going to run out and that if the government locks things down i won't have access to be able to protect my family with getting them the things that they need what part of that fear also realized and what if it goes even further than that what if people attempt to take from me what i've collected what if there is food rationing that's taking place and someone comes to take from me so there is a especially american idea here that says i have to protect myself and i have to protect my family because i can't count on someone else whether it's police or government to do so and gun sales spike when that happens you know how do these sales spikes due to socia

ben swan to discuss this further now ben you actually kind of touched on it a little bit about government overreach on concerns and that nature but why does a pandemic spur gun sales i mean what do you see as the rationale here. yeah i think it's the same reason that people will run out and grab a bunch of toilet paper right why why would someone do that well because the fear is that we're going to run out and that if the government locks things down i won't have access to be able to protect my family with getting them the things that they need what part of that fear also realized and what if it goes even further than that what if people attempt to take from me what i've collected what if there is food rationing that's taking place and someone comes to take from me so there is a especially american idea here that says i have to protect myself and i have to protect my family because i can't count on someone else whether it's police or government to do so and gun sales spike when that happens you know how do these sales spikes due to social unrest which you touched on later in your piece there compared to previous situations that we saw in say ferguson missouri or baltimore maryland just a few years ago. yeah it's i think it's different for a couple of reasons number one what's made this particular set of protests so i think starkly different than what we've seen in the past is the fact that they came on the tail end of these lock downs which we've never experienced before so you literally had months sprint where people were not allowed to leave their homes and felt like there was already a certain amount of government overreach and government control being pushed on to them then you see the protests that taking place now what's fascinating about this is that the people who are calling to go ahead and buy guns come from both sides there are protesters who say we need to be armed because drums talking about sit in the national guard to stop us and then you have people on the other side who say hey police right now there's talk of defunding policing getting rid of police do protesters think they're going to come to my home and destroy my home and so you have both sides literally arming themselves because no one is sure where the actual order in society comes from and whenever there is fear of a lack of order in society more people say then i will have to create order on my own no ben there was a time when the gun lobby and specifically the national rifle association what kind of stoke sales as these types of situations would happen when you would see a mass shooting or when you would see not necessarily pandemic of a social unrest you would see these kind of but it appears over the last few years and i want to say specifically since the shooting at the moment douglas high school in florida they've kind of been very very quiet why is that. yeah i think there's a couple of reasons for that were i mentioned in the piece of the last time we saw this major surge in sales would go back to 2013 president obama was reelected the sandy hook shooting took place and then there was talk at that time of banning eyre 15 rifles and we saw this huge surge in gun purchases and ammo purchases because people were rushing out to go ahead and buy these weapons before they became illegal because it was also said don't worry will ban new purchases anything that you already own is alread

ben swan and host of eating the press steve malzberg ben i'll start with you now you and i have discussed this many times the question of is facebook a platform or a publisher is up leaving trump's post up where does that land them on this question now. well if it doesn't do anything to change their status as not a platform and yes acting as an editorial publisher just because mark zuckerberg is the side of that in this one rare instance he will not remove the comment from the president which by the way i don't think you should. does not mean that he is now ok we see we've taken care of this we're just a platform not a publisher because the problem is that baseball does moderate and editorialize on lots of other pages in fact what this does is it goes to even further prove that point that zuckerberg has a small team of people by the way which he left to their little v.p. of content out of the discussion and instead focused on the c.e.o. osho will samberg and zucker berger just like 3 or 4 people who made this decision unilaterally that's an editorial decision they decided that in this case they would leave it up with other cases other posts would have been taken down yeah and as a side note gentlemen this just happened to me just moments ago and we know instagram was bought by facebook and i posted up just moments ago a photo wearing a face mask that scottie nell hughes so graciously gifted to me and said to me i took a photo saying you know thank you for my face mask you know my you've added color to my kopek life and they have chosen to add a link to the cd see for information about coven. so you like like i said whatever you post if you put a post that has coded in it automatically link it to the c.d.c. to give you correct information right right so i find that fascinating that that's happening right now now we're talking about zuckerberg and steve i think we can both agree that this is a good thing for the 1st amendment that zuck is is being bold enough to do this but he is getting a lot of hate from his own rank and file in silicon valley they say he's glorifying violence do you think he's going to buckle under the pressure. i think it will keep it this way until the trump administration should be voted out of office and if the senate should go democrat then he has free reign to do what he wants well on the eve of donald trump senate signing the executive order last week i was interviewed and in a couple of places and he stated that i don't think political speech should be regulated i think political speech should be heard i almost fell off my chair because all you've been hearing about is this supreme court of his that he's appointed to do just that to all kinds of speech to regulate it but he backed off in contrast to twitter who doubled down and mocked the president on and on voter fraud in flag didn't and they've done more against him in this week that they took down that the burglar left up so i think tweet twitter and facebook are going in opposite directions so dumb like a fox he is on the left and as soon as he sees it's ok he'll go back to censoring everything well at the moment give credit where credit is due write and say something short of the real quick well twitter is actually kind of spinning in circles right now where they're trying to now clarify that or we're not fact checking anything in fact on the president's tweet that they did take down they're now saying that we context check we're just checking the context the statement because here's what's happening is that both facebook and twitter and google they're all freaking out right now over this executive order from the president that essentially says that they have been in violation about $230.00 protection and because of that they're all terrified if they lose that those social media companies are done and that's why they're all running in circles right now. on on that note a leaked recording out of zach's meeting is now readily available to the general public if they want to look that up it turns out that trump actually called zuckerberg directly after the facebook team reached out to the white house to discuss with them their terms of service so how much of this of this decision do you think is based on trump calling him directly. i don't think it's based on that i really think it is based on this fear right now that they are going to be seen as editorializing and acting as a publisher is not a platform the problem is is that zuckerberg got in front of congress last year and said testified saying that they are a publisher and they act as a publisher he's already said it jack dorsey the same thing the problem is is that they can't turn around and now pretend that they are not they were gone too far and so everyone's everyone's terrified of what this means but you want to talk about this for now 2 years 3 years when a lot needs to happen that shield needs to go away and steve this this one isn't so much about facebook as it is about twitter since we're bringing that up but we have seen these large tech companies sort of toeing the liberal line that's no secret but as users continue to move away from facebook or twitter or various other mediums and in this case conservatives are leaving twitter for parlor do you think that that is also forcing zuckerberg to reconsider censoring conservative voices and meanwhile we should add by the way snap chat has also just announced it would remove president trump from its discover tab accusing him of promoting racial violence and injustice in tweeting about rioters outside of the white house so do you think this is playing into how they're arriving at this decision. i don't think and i could be wrong because the expert on this i don't think zuckerberg is fearing or twitters fearing losing conservatives i think they would be very much happier in their employees are you much happier without it and ribs are better and all i mean today the president today that for barack obama said make people in power uncomfortable in the context of everything that's going on twitter might be wise to say hey that's that's urging violence that's how i would interpret it. you have now you have them going after trouble because he says he wants law and order you know what ever most americans want law and order. there's nothing racist about that or feel about that twitter's picked a war based books to lay their war they couldn't care less about conservatives if they all disappeared and last word on all of this what i would push back on is i think they do care about conservatives more than they pretend to they want to control the narrative and the problem is that competition in a free market is what they spoke and twitter fear the most competition is coming to them and conservatives make up a huge number of people on facebook in terms of communicating that way if they go someplace else it will devastate facebook like an exactly because the kids are all moving to the tick tock guys they're not here and scram anymore there is a god and that like all right gentlemen we'll leave it right there ben swan steve malzberg thank you for a fun talk today. thank you. all right let's head over to the sports h.q. regina hamm is there we're going to m.l.s. is one of 2 leagues here in the u.s. that has a plan to get the ball rolling it's all puns intended right because just days ago it seemed major league soccer is on the verge of a lockout with its players over the collective bargaining agreement effectively putting bosh on the season now soccer fans can breathe a sigh of relief at the m.l.s. p.a. approved the league's offer players' association agreed to a deal that dealt with economics and you collective bargaining agreement total economic concessions about $100000000.00 and include across the board salary cuts of 7.5 percent in order to soften the blow to league financially unless suspended season on march 12th due to the coronavirus demick many teams just played 2 games players are now allowed to start preparing for the season to resume at some point this summer with the tournament fl

ben swan and peter schiff c.e.o. of euro pacific capital. ben or peter i'm sorry let's start with you let me ask you how much of the slowing of this gold and silver prices is due to the easing of the coronavirus restrictions and not just in the united states but globally. well i don't think it really relates that at all i think what we have had is a rally in global stock markets we've also seen a bit of a sell off in the dollar and some of the other safe haven currencies like the japanese yen and the swiss franc and i think that the gold got caught up in that a little bit as well as enthusiasm for the u.s. stock market but remember the only reason the u.s. stock market is going up is because of the fed we have bad economic news now we have the riots the looting which is making a bad economy worse and so the worse the economy gets the more money the federal reserve prints and so the more stocks investors want to buy but when the fed is creating inflation you're better off buying gold in the s. and p. $500.00 and we're looking at a possibility of some hyper inflation here with that speaking of the federal reserve ben there's talk that the fed is going to go to negative interest rates if that happens what kind of effect might it have on these prices for gold. well i think of that happens and we're going to see it be very good for gold because you know gold there are some analysts who are looking at it saying that if that happens gold could actually hit an all time high simply because of the fact that negative interest rates would have that effect on safe haven assets but again i think what peter saying is very true there's a whole series of issues they deal with the federal reserve and how the federal reserve has been conducting itself over the past few weeks and months and really years but especially during coronavirus i think what we're going to see is that the more moves the fed makes the better it is for any kind of safe haven asset because the fed continually demonstrates that it is erratic in its behavior it's not based in any kind of sound fiscal policy it's not based in anything that deals

ben swan who hosts boom bust right here on r.t. america ben i think we should start with you given what i just what i just presented at the start of this newscast which is it boom or bust. they were looking at a huge bust on its way i think you're explanation of forbearance it was incredibly timely and incredibly important for people to understand because everything we're going through right now is really about delayed reaction so the fed has been working to delay problems within corporations and the stock market the federal government's been doing that they've been delaying things and so everything right now is in this kind of mode of delaying you haven't had to pay your taxes because federal taxes were moved into july and so there's been this effort to delay but delaying the problem does not make the problem go away it simply sets a new timeline for that problem and so what we're watching is this incredible moment where the u.s. economy is in a recession where we have millions of people who are still out of work right now as you said they're being told you don't have to pay your obligations right now that will come some time later and yet we're watching the stock market roar right now and it's coming back with a vengeance but that has nothing to do with reality either that's all about the federal reserve pumping money and the treasury pumping money into the system and investors say oh this is great because it doesn't matter how bad things get we're going to get bailed out by the most powerful forces in the country they're going to protect investment not protect main street the question is how long can these powerful forces in the country end our government itself continue to protect us maybe asking the question more colloquially john grace is this wend of the gravy train run out and what happens that. well we might be just about there rick and i agree your opening was fantastic it really setting the case here i mean this kind of looks like you know maybe my one of my favorite cartoon characters right y. e. e. coyote and road runner where they were run off the surface off the cliff and then they are there in you know a loft for a few seconds and then they figure out how low they are going to go that's where i think we are right now i mean we just crossed the threshold of a recession yes to take 2 quarters that are negative we've been saying for a long time we increase the odds from 20 percent december to 80 percent in march and 100 percent in april that will be it has to be in a readers but this thing has not been on solid foundation for a very long period of time and let's understand we're all doing the same thing everybody's trying to look like they're the car dash it whether it's the consumer whether it's businesses will talk about that one or whether it's governments everybody's on borrowed time we think we could just put scotch tape and duct tape but the problem will just disappear we think we're bewitched in the central banks could just fix everything and make the problems go away life doesn't work like that the economy doesn't work like that so this may very well be the end to this this carousel and when the music stops everybody has to get on ben i hear people asking so what if the economy is a back and ready in 6 months we just continue the forbearance we throw more money at it and if it's not ready a year after we keep doing that how long can we do that every lad even a viable workable option it's not a solution so the it is an option right it's an option in terms of short term how do you keep the short term going for as long as you can i love the the analogy of wiley coyote because what we're hoping for is that as we run over air if we run long enough they'll be land on the other side and we'll be ok that's kind of the philosophy here but the problem is is that there. a major transfer taking place nationally right now by the way in terms of the business sector as there are a few major corporations like amazon if they speak that are doing extremely well during this time and there's a massive shift moving jobs and economy away from small businesses and into those corporations and that money is not going to flow back whenever

ben swan. i know it's where to start after that last statement there ben let's start with the data what kind of debt are we actually talking about here yes so essentially we're talking about everything that you would want if you were debt a collection company we're talking about personal contact details gender race occupation physical status health status mental health status past criminal offenses basically everything that the british government has on its citizens it's handing over to this company and what's really remarkable about it is that this company is allowed to train using this information and they're allowed to profit off of it by building models and building private web and data tools using this personal information belonging to millions of british that is. as we just mentioned there in the set up access this information was sold for one british pound one pound. i don't have and i have a question why what yeah i mean when you when you break that down for american viewers who are watching that that's a $1.27 that's what we're talking about a tech company going to the government and the government saying we're going to give you data on millions of our citizens and it's everything as we said all this proprietary information about people and personal information for a $1.27 it's absolutely insane it demonstrates obviously that this company was allowed to have access to records that they really shouldn't have access to i don't believe but they were allowed to do so without even the government same or at least there is a mechanism by which we were able to recoup some value though at the same time you have to wonder why are you selling this data in the 1st place why in the world is the br. government n.h.s. taking british citizens private and personal information and selling it then the idea that it's really only worth about a buck it's just it's insane. pelletier was founded by peter thiel an ally of president trump now pelletier has developed at a technology intelligence agencies and governments use for surveillance their current customers in the us are a little startling are they not. they are a little bit certainly we're talking about the u.s. army we're talking about the f.b.i. we're talking about the cia essentially working with you know major government and military organizations in order to develop again these these tech tools that are used essentially to scan across social media scan across the internet and gather data on people and i think more and more brant what we're seeing as we have these these tech companies that obviously silicon valley have developed these data collection tools on their own in this case you have a private company that is really focused on not being a social company but doing what social companies do specifically at the behest of national governments around the world both co-host ben swan thank you so much for that insightful report there. thanks. and with more cities beginning to reopen including new york city which started the reopening process just today on monday u.s. equities are continuing to game so let's bring in some expert analysis from too much co-host 'd kristie i am told and smith c.e.o. transformative research thank you both for joining us today so been what's driving the rally today and do you expect this to continue. i expect it to continue because be the reason why it's driving is what i think we've talked about for 2 months now the market not only does it look ahead but the market responds best to information that's not as bad as i thought because when investor or a trader goes through the process of oh my gosh what about this what about that what about that they build this negative narrative and piece by piece that negative narrative is being blown up number one number 2 it's now near the end of the 2nd quarter if you manage money like i do or y

market from main street to wall street also joining us is veteran journalist ben swan who hosts boom bust right here on r t america ben i think we should start with you given what i just what i just presented at the start of this newscast which is it boom or bust. they were looking at a huge bust on its way i think you're explanation of forbearance was incredibly timely and incredibly important for people to understand because everything we're going through right now is really about delayed reaction so the fed has been working to delay problems within corporations in the stock market the federal government's been doing that they've been delaying things and so everything right now is in this kind of mode of delaying you haven't had to pay your taxes because federal taxes were moved into july and so there's been this effort to delay but delaying the problem does not make the problem go away it simply sets a new timeline for that problem and so what we're watching is this incredible moment. where the u.s. economy is in a recession where we have millions of people who are still out of work right now as you said they're be

ben swan an attorney and media analyst litle and litle media all right gentlemen ben i want to go to you 1st can you give us a summary of what this latest spat is all about. yes so essentially you have 2 websites as you said the federalist and 0 hedge and in this case 0 hedge was in fact demonetized from google's ad platform the federalist was given a warning to correct information on their site and to remove it or else they were also going to be doing monetized what was at issue here were articles reportedly about the protests over george floyd and apparently there were statements made not in the articles themselves but in the comments section of the articles that in b c news found along with this group out of the u.k. and then n.b.c. news apparently contacted google and reported it to google to try to get these platforms monetize that's all we can get into that that's a whole other issue but essentially the core issue here i'm lionel can speak better to this part of the legal side of it which is that essentially these were not in the articles these were in comment in sections and therefore google was punishing 0 hedge and the federalist for having commenters who said things that google didn't like so why don't what about that from a legal standpoint should a content providers or websites and the like should they be responsible for the comments and opinions of. their viewers or their readers. well this may not be a legal answer but responsible for what for an opinion that's rude or might be controversial you know we speak the last speech to libel slander defamation the statement of a factual basis that turns out to be false which causes damages but what we're talking about here going on and ban are statements that might be hate for or in correct or should fight for war or or injurious to or i've never heard anything like this in my life isn't that the whole purpose of what free speech is about that the marketplace of free ideas so this has no place in the world of law in terms of what they want to ban ok so ben you obviously are a big proponent of free speech no matter what direction it goes but google not being a public good or or utility doesn't that give them the right to allow whomever they want to be able to earn money through their platform the thumbs up or thumbs down. well that's a good question i mean there's really there's a certain level of irony built into this story because remember president trump issued an executive order recently that would remove section 230 protections from tech companies like google and you tube and twitter and facebook meaning those companies could no longer be shielded as they are now from content that's placed on their platforms google says hey that's not fair we're a platform we're not a publisher and yet they're acting exactly like a publisher by go in and saying we will remove you for being monetize on our site and here's the other thing i'd love lionel said about about the issue of what exactly are you removing and trying to save and protect the wor

ben swan and editorial director for the american institute for economic research geoffrey tucker good to have you today ben let's begin with you give us a rundown of what this new national security law includes. yaz is kind of typical with these kinds of things the language is relatively vague and leaves a lot open to interpretation but essentially it criminalizes and i want to quote here session this subversive and terrorist activities in hong kong as well as acts of collusion with foreign forces that in danger national security now when you take a look at some of that wording secession a subversive and terrorist you can make a whole lot of things fit into those categories in terms of protests people speaking out even free speech on any level could be on some levels described as these things because these are very relative terms and then in terms of working with foreign forces does that mean when groups like the united states come in and try to promote those pro-democracy movements now we can have a debate over whether or not that's a good thing or not for the u.s. to be doing but are those acts now criminalized under this law and it appears that they are. interesting given that we witnessed those firsthand when you know i traveled are to america traveled to hong kong but jeffrey i want to ask you this law will now be interpreted and now implemented by beijing and not the city court in hong kong what kind of concerns to raise. look there's this is tremendously concerning and what you see here is beijing acting in a very aggressive way in a time when the u.s. has never been weaker maybe it's not obvious to most americans for read the last 3 months during the lockdowns we've really begun to see the beginning of the end of the american empire really the decline and fall and beijing knows this you know the u.s. can have almost no influence i was saying at all over what beijing's relationship with kong is so we've squandered every bit of influence that the us has had around the world and beijing has definitely taken advantage of that to their own benefit of me and then china and their imperial and it's really sad to see and of all things u.s. can do nothing about it well it's really no surprise that beijing is actually taking advantage and using this to to to benefit the country then it's pretty interesting here though the business community and china actually think to be supporting this new law why is that. well because if you're in the business community in china and you don't support or beijing does you're not going to be in the business community in china for very long the reality of what is happening there is that many of these major chinese companies are taking up offices in hong kong and they're saying they're in support of this well listen in the chinese system is not a system that fosters independent thought and certainly does not foster independent action so when you see companies like bite dance the owner of tech talk moving into hong kong and buying a new retail space in order to put their offices as they are doing that of course they're going to say we think this is a great law but what jeffrey said is absolutely correct that we are witnessing a huge decline in the american empire but what we're also witnessing simultaneously is the chinese exerting themselves in ways that they happened in the past but they've been gearing up to for some time the real issue is what do you do about it i mean the u.s. loves to come in and foster disruption in systems that it does not like or does not think are supportive of it but that again is fast coming to an end it's very difficult for the u.s. to try to use the same playbook that they'll use in a place like libya or syria as they would in trying to foster unrest in a place like china it's an entirely different game won't back up again i think you know. well you know i think it's really important to remember that you have to think back over the last 3 years and us china to relationships you know trying to squandered all of our trading relationships we had we've had unrelenting antagonism you played a very dangerous game of chicken with china and basically lost and so now the u.s. sacrificed even kind of a diplomatic relationship with china you've got china furious at what the u.s. has done but has to with the terrorists in the trade relationship that's really been. the miss mishandled as a result of us is now sitting here a poor pathetic windswept country the whole world's banning us from flying there you know europe's. and it's like it's a retaliation for trump you know so we are in a static sinking country right now and china is just like chewing well guess who won that struggle well it's been quite quite the attention for the last couple of years like you saying with china because of the trade war now we're seeing a possible new terrorist with europe as well so i know relationships with the united states and other countries the way other countries see the united states unfortunately it is deteriorating and unfortunately has a lot to do ever since you know the president came in and destroyed a lot of treaties that we've seen happen over the last few months and jeffrey crocker said something go had been this very quickly is very quick but to what jeffrey say it doesn't have to be this way america does not have to be this withering fruit on the vine instead if we would stop so we discord to create weakness in other places in order to make ourselves strong and instead focus on developing american strengths i think we would be much better off i mean we are the world's largest economy and we'd like to keep it that way jeffrey tucker editorial director with the american institute for economic research thank you but we're going to keep you around for one more question following the next story thanks pfizer for it at starbucks and coca-cola are the latest companies that say they will stop buying ads on social media will facebook in particular has been the target of the stop hate for profit campaign all the group is made up of a number of social justice organizations calling for stricter moderation and rules for hate speech racism and even misinformation but facebook says a new policy will ban as which encourage divisions along race religion gender and even sexual orientation but last week on this show you said this movement would only work if many more sponsors got involved is that what we're seeing here. well i think it's what we may be seen here in the real question is going to be how many sponsors get on board with this facebook does about $800000000.00 in advertising through companies on its platform if there is a nuff of those companies that say we're not going to advertise facebook ok but if a company like coca-cola say we won't go anywhere with those dollars the truth is companies like facebook can wait them out because the reality is coca-cola needs to advertise through facebook and big companies do more than facebook needs that's true and a lot of companies other companies may as well but most co-host investigative journalist ben swan thanks thanks again for joining us today. at the time catch you must on demand a brand new portable t.v. available on smartphones through google play on the apple app store by searching part of the t.v. or stream us on your t.v. by downloading the portable t.v.'s on apple t.v. and online a part of the t.v. . the world is driven by a dream shaped by one person with those great. things . we dare to ask. is you'll be 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. 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. but a quick history lesson in economics you know people talk about socialism what is socialism business idea that labor as value and that people want to take part and the means of production and. starting in the 1980 s. that became obsolete because all wealth was tied to money printing today and

ben swan. i know it's where to start after that last statement there but ben let's start with the data what kind of debt are we actually talking about here yes so essentially we're talking about everything that you would want if you were dead a collection company we're talking about personal contact details gender race occupation physical status health status mental health status past criminal offenses basically everything that the british government has on its citizens it's handing over to this company and what's really remarkable about it is that this company is allowed to train using this information and they're allowed to profit off of it by building models and building private web and data tools using this personal information belonging to millions of british that it's no better as we just mentioned there in the set up to access this information was sold for one british pound one pound yeah. i did i was going to question why. what yeah i mean when you when you break that down for american viewers who are watching that that's a $1.27 that's what we're talking about a tech company going to th

ben swan he's an investigative journalist and co-host of boom bust and host of news with rick sanchez rick sanchez gentlemen good to see you both ben i want to go to you 1st have we finally turned a corner since the pandemic hit and also what's driving the market. where. we got some very good numbers as you said in terms of the numbers for may and retail kind of coming back about a 17 percent increase in retail sales that was not expected and it shows that obviously people are anxious to get out and to spend and get back to normal we've seen some reopening you mentioned before we went to the break though that we are seeing a resurgence of cases of coronavirus in certain states alabama south carolina are 2 of those states that's not good news for the economy because the question becomes is there consumer confidence and is there also a confidence that states won't shut down and therefore cost businesses have to close their doors again and have to lay off workers again we saw about 12 to 20000000 workers now coming back into the workforce in the last month as well and that's also good news but the question really comes down to where do we go from here do we continue with the upward trajectory to have more of a v. shaped recovery or do we have what looks like we're going to recover and then we dip again because of a new set of shutdowns while that's certainly possible you and i discussed yesterday how the u.s. economy is in shambles but you know what this morning's retail sales numbers will that provide new wind beneath my pump ales wings as he goes in to meet with chinese officials in hawaii. no i don't think so i mean i don't think anybody's going to be fooled by the. u.s. economy was some were. well just look at unemployment numbers we were at somewhere around 4 percent. because people were talking that it might go to 20 percent we're supposed to be celebrating now because it's somewhere between $13.14 that's like saying when i took something away from you and then i gave it back to you would i be a great guy well no why do you take it away from me in the 1st place right so we're still a bit of a quandary economically and i think makes a great point about the fact that we really don't know i mean seriously i mean we don't yet know how this pandemic is going to play out in our country. will we have a 2nd wave will we not have a 2nd wave will people be afraid of it will people not be afraid of it will the vaccine mean the end of it or as some people suggest is this thing going to continue for 2 or 3 years because there's even the possibility that it could mutate after the vaccine so there's just so many questions that have to be fed into this thing that it's almost impossible to say oh sure once this happens everything's going to be ok and i think for the most part those questions lead to market volatility as well right now everybody's putting money into the market because i think there's a lot of money that's being put in helicopter money but that's going to run out of some point to all right so it sounds like from the both of you you think it's too soon to throw a welcome back party so. what is your own power predicting for a post pandemic kind of me and what tools does he have available to handicap americans afloat. well essentially what the drone policy is that it all depends on consumer confidence and that consumers and businesses have to believe that government has control of the virus before things can get back to normal whatever normal becomes here's the problem is that right now the market and there's a big difference between what's happening in terms of unemployment and main street and businesses small business in this country and what's happening on wall street there's a big difference there wall street is being completely propped up by the fed right now the fed is as a whole series of tricks in order to kind of prop up markets and keep it going you know kristie i talked about this a lot the bad news is good news scenario that essentially plays out what the fed meaning every time there's bad news it's ok it's really good news because it just means that the fed's going to come in and fix your money problems for you where they're going to pump more liquidity and the real danger of what's happening right now is that we are becoming you know increasingly close to a point of crashing the dollar if we continue down roads of printing money to no end bailing out every business possible and spending to the rate that we're spending because of the troops asking for another try. dollars in spending these numbers are phenomenal in terms of the effect and the damage they will ultimately do to the economy and no one in washington right now where even nuff to stand up to that. and where is the accountability i mean these are questions we as journalists we would be foolhardy not to ask the questions if you continue writing these checks and we have to ask at some point where in the hell are they going and who is checking to see that they're going to the right people or 'd the right places so they can really improve our lot in life as americans because look president trump whether you voted for him or you know you love him or you hate him he a mother teresa ok so the fact that the president is putting out all this money and we don't really know who's actually getting it is something that we should all be wondering about at the very least and as ben says how many check out continue can you continue to write rick i want to stick with you for this next one i mean mr powell has been warning that small and medium sized businesses are going to be hurt the most and possibly never really recover after this pandemic so you as an entrepreneur yourself what are you hoping to see the fed do to help folks like yourself out. you know i've always been a big believer in the bottom up you know you've got to put the money at the level especially in terms of main street. not wall street but if you could somehow come up with something like what f.d.r. did and create some foundation where people would feel better about themselves you know the expression you your parents probably told you this is some point you give a man a fish eats for a day teach a man to fish eats for a lifetime what this country needs more than anything right now to solve this coronavirus issue is contact tracing we just need we need to know who's in moon who is it who's had it

ben swan he's an investigative journalist and co-host of boom bust and host of news with rick sanchez rick sanchez gentlemen good to see you both ben i want to go to you 1st have we finally turned a corner since the pandemic hit and also what's driving the market. well we got some very good numbers as you said in terms of the numbers for may end retail kind of coming back about a 17 percent increase in retail sales that was not expected and it shows that obviously people are anxious to get out and to spend and get back to normal we've seen some reopening you mentioned before we went to the break though that we are seeing a resurgence of cases of coronavirus in certain states alabama south carolina are 2 of those states that's not good news for the economy because the question becomes is there consumer confidence and is there also a confidence that states won't shut down and therefore cost businesses have to close their doors again and have to lay off workers again we saw about 12 to 20000000 workers now coming back into the workforce in the last month as well and that's also good news but the question really comes down to where do we go from here do we continue with an upward trajectory to have more of a v. shaped recovery or do we have what looks like we're going to recover and then we dip again because of a new set of shutdowns while that's certainly possible recchi you and i discussed yesterday how the u.s. economy is in shambles but you know what this morning's retail sales numbers will that provide new wind beneath my comp sales wings as he goes in to meet with chinese officials in hawaii. no i don't think so i mean i don't think anybody's going to be fooled by the. u.s. economy was some were. well just look at unemployment numbers we were at somewhere around 4 percent the because people were talking that it might go to 20 percent we're supposed to be celebrating now because it's somewhere between $13.14 that's like saying when i took something away from you and then i gave it back to you would i be a great guy well no why do you take it away from me in the 1st place right so we're still in a bit of a quandary economically and i think benmakes a great point about the fact that we really don't know i mean seriously i mean we don't yet know how this pandemic is going to play out in. our country will we have a 2nd wave will we not have a 2nd wave will people be afraid of it will people not be afraid of it will the vaccine mean the end of it or as some people suggest is this thing going to continue for 2 or 3 years because there's even the possibility that it could mutate after the vaccine so there's just so many questions that have to be fed into this thing that it's almost impossible to say oh sure once this happens everything's going to be ok and i think for the most part those questions lead to market volatility as well right now everybody is putting money into the market because i think there's a lot of money that's being put in helicopter money but that's going to run out of some point too all right so it sounds like from the both of you you think it's too soon to throw a welcome back party so. what is your own power