tv Boom Bust RT March 6, 2018 7:30pm-8:01pm EST
the u.s. treasury department which chairs the committee invoked national security concerns and told qualcomm in a letter to delay a shareholder meeting to consider the one hundred seventeen billion dollar bid that had been set for today until the committee can fully review the bid the committee sees qualcomm's five g. wireless technology as sensitive to national security and is increasingly concerned about keeping such advanced technologies out of the hands of chinese firms the decision to review the deal was in response to a petition from qualcomm to the committee after broadcom as hostile bid escalated to nominating six candidates for qualcomm's eleven board member the review means the deal is unlikely to proceed. the federal trade commission is challenging j.m. smucker company proposed their acquisition of west and cooking oil brand from food and egg giant con agra brands smucker already owns christgau brand the f.t.c.
and the f.t.c. says in an official and administrative complaint that if smucker were to acquire western brand it would then control more than seventy percent of the market for blended canola and vegetable oil sold in grocery stores increasing smucker's leverage with grocers and ultimately leading to potentially higher prices the f.t.c. says in a press release that documents of smokers own internal deliberations cite the elimination of price competition as a reason in favor of the acquisition the administrative trial to adjudicate the complaint is scheduled to begin on august seventh. and now we move to reducing regulations on the financial sector is it a good thing that will generate more freedom and therefore economic growth or will reduce regulations on the financial sector put the economy or consumers at risk
here to answer those questions and more as bartlett nailer of public citizen bartlett thank you for being with us again we really appreciate your expertise particularly in the middle of all this bring us up to date on what's going on in the united states senate really as we speak literally as we speak the bill is asked twenty one fifty five it's got about forty provisions in it the motion to proceed with that they took place today at about eleven o'clock in the morning it got sixty six votes in favor which means about seventeen democrats joined with the republicans and to move this bill forward it's likely to be debated over the next few days with a final vote as early as thursday if not into next week so the president had. talked when he was a candidate about repealing the wall street reform and consumer protection act of two thousand and ten otherwise known as dodd frank and i sort of thought well that's probably not going to happen it would be really bad and then he's talked in the last year since he's been president about the reduced regulations but those
reduce regulations have really been sort of the energy area of the environmental area not as much we'll talk about a couple later but not as much in the financial sector but this legislation work to be approved by the house and the house is probably more than willing to go along with it could have some detrimental impacts what are you most concerned about that's right this will be likely the biggest financial bill that clears congress and signed by the president since dodd frank itself was signed by the president on june twenty first two thousand and ten then president obama among the forty provision there are a half dozen that are truly problematic most conspicuous is a section that reduces supervision for twenty five of the largest thirty eight banks we call them stadium banks because twelve of twelve of them have baseball and football stadiums named after them they're hardly community banks these are are big banks when you get a stadium named after you or if you don't have
a lot of it that's a criteria but it's a pretty good indicator you're large you are systemically risky if you have a stadium named after you yes collectively they hold about four trillion dollars and some of these are bad actors and many of them have sanctions against them during the crisis they received a collective fifty billion dollars in bailouts if countrywide existed today it would fall in that class and that originated almost a third of all the loans and and many if not most of the toxic loans that really polluted the entire system so by reducing these regulations it's an invitation for trump's regulators to to lower the guardrails why the stock market is. doing well unemployment is down lending is robust and these banks are relatively safe right now and we simply are going to go backwards in time there is a one word change in that provision that says that the fed the federal reserve
shall tailor the regulations to the risk profile of the bank which means that they're going to have to look at each bank and say well you are less risky and if a bank doesn't like the regulations it could take the fed to court and say you've reduced it for this other company and you'll have to reduce it for us as well ok let's unpack that a little bit so these words mean a lot but wrote many laws or worked with people that wrote many laws and the difference between a may and a shell is huge that's right so if it says that the fed shall work with the financial and the fed may work with the financial institutions one it's not a requirement so therefore there is no legal jeopardy on part of the fed that's what we're talking about real quick bartlet we're talking about regulations to do things like ensure that there is enough capital reserve in the banks hate this i speak with them all the time don't least they won't talk about it publicly maybe but they don't like having this backstop there and so that could if you if they
shall the regulators shout deal with things like that capital reserve then they could be limited and then explained the other part of it that sense it's shell they could be sued that's right so the bank can sue the fed and say you shall reduce our capital requirements we shall not have to have as much liquid assets we don't have to have a living will these are the complex plans that show should we become insolvent how how we break up a living will display that for our viewers. the living well is. a plan at j.p. morgan it's two hundred fifty thousand pages long that says if we are in solve it if our liabilities are greater than our assets here is how we will. break up and sell our various pieces they have more than three thousand subsidiary what happens when you die when why they grant a living if we financially die and if you don't have a credible living will then the regulators can actually force them to sell off or
make adjustments and arguably break up the company and if you are if you're a regulator and i have some experience with this if you're a regulator and the law tells you that you must you shall do something then you get awfully worried that if you don't do something there is going to be a legal challenge and so what you do is you are more amenable to the regulator or there are the regulate the rather you are more amenable to them than you otherwise might be out of what the phrase they use all the time in this city an abundance of caution so that could that means more lax regulations right yes this bill also eliminates the volcker rule for banks under ten billion dollars the volcker rule are restrictions on banks gambling with deposit or money speculating on that now you could argue it is probably the case now that banks with less than ten billion are not much engaged in such speculation but i lived through and worked
for the chief as the chief of investigation for the senate banking committee during the savings and loan crisis and a small little rule change where the savings and loan could invest directly into real estate invited to an entire army of speculators to take over savings and loan and they built offices throughout the southwest with without ever auto with regard silverado lincoln savings and loan north american savings and loan and there's there were a thousand of them thousand bankers who had eventually cooked their books and were sent to jail. spawn the keating five scandal where one of them at lincoln savings and loan had paid so many contributions to senators to keep the feds out of doing the right thing that had cost three of those senators their job. one of them john john mccain survived but glenn was tarnished riegel was forced out of office cranston as well or an icon of california which was forced out of office. that's why that's a second problem
a third problem is if you can see any they kind of seeing it seem right to be conceding here both arizona senators were involved that's where lincoln savings was was based. keating a benchley did go to jail and another problem that spills into the consumer area one way that redlining is confronted this is where bankers were drawing lines around certain areas low income or or black neighborhoods is to with each mortgage identify who is the borrower and a lot of the profiles this bill for eighty five percent of banks eliminates some critical data and invitation for redlining and almost as onerous predatory loan making because for example wells fargo went into baltimore where they didn't have many mortgages was called the mud people program and they put in mortgages at extremely high rates this data is supposed to be able to identify that for the
public and let both regulators and the public identify with this legislation it could be out so essentially we could have more discriminatory loans taking place if this legislation passes again it would have to if it passes the senate we don't know yet but it looks likely that it would have to pass the house and the president would sign it would like to have you back on to talk more about it and we want to keep our eye on the consumer financial consumer product what is it consumer financial protection c f p being sorry thank you for the assist bartlett mailer thank you so much for being here very creative measure. quick tricks but stick around because when we return we'll talk about oil and energy with chris martenson the founder of peak prosperity dot com alex behala d.h. and i discussed those steel and aluminum tariffs in anticipation of president franklin now about. the specifics later this week and as we go to break here on the numbers at the closing bell oil was down slightly w.t.r. at sixty two forty eight and breath at sixty five seventy one for those not.
jamie diamond no matter how much you try to talk down because no matter how much he tried to. get his buddies in washington to wapping. me and the fact is he's lost he has lost the battle of big point he's got it now come crawling back to the market and say you know what the whole banking industry has been fundamentally change we need to adapt. and. it's been almost fifty years since we've had human beings on the surface of another planetary body and i hope that we could actually put together an international lunar exploration initiative much like we have the international space station consortium and together the countries of the world cooperating with
the private sector could afford to get back into real space exploration and i think that would that would create a a lot of excitement. but you could you know we're going to tell you it's really none of us are not us but marine one million people that. killed people even dangerous. now on the lens. a few things wrong with that so.
welcome back fifty seven percent of americans have less than one thousand dollars in their personal bank account according to a report by go banking rates a personal finance website the site polled one thousand u.s. adults in february and found that thirty nine percent say they have no savings at all that number is up from thirty four percent last year when asked why they were saving more retirement and for emergencies a full forty percent of respondents say they simply don't have enough money the second most common response with twenty five percent was struggling to pay bills the survey found that the problem of low or no savings was worse for
a millennial burdened by low wages and the cost of higher education. this is a big energy week and many industry executives and others are gathering in houston for the largest global energy summit of the year i'm no industry exact but i'm headed there to and report to you boom busters on some of what's going on there in the coming days the conference is called sarah week which stands for cambridge energy research associates which is headed by the conference organizer the pulitzer prize winning author daniel yergin who wrote the prize the epic quest for oil money and power it's a classic for those interested in oil among the key headlines leading into sarah week saudi aramco c.e.o. amine nasser says that there refinery in port arthur texas may see an expansion investment of thirty billion dollars through twenty twenty three and create as many as twelve thousand new jobs there's also reports that russia and saudi arabia may
be close to inking a cooperative relationship but mr nasser wouldn't comment on the speculation and another edgy news gregory meyer of the financial times reports that the plumbing of us oil pipelines is pivoting instead of oil tankers going into the port of houston to offload oil from the middle east and other areas around the world and that oil being piped to refineries along the coast and inland now u.s. oil produced here in the states is going into the pipelines and being shipped out to be exported the report makes sense given the new news released yesterday by the u.s. energy information agency that says the united states will produce over ten point six million barrels of oil per day this year a forty seven year high and roughly what saudi arabia produces plus the report says the u.s. is expected to surpass russia as the number one oil producing nation by twenty twenty three russia currently produces around eleven million barrels of oil per day
. and to talk about all of that and more we're joined by chris martenson the founder of peak prosperity dot com chris thanks for joining us again saudi aramco says that with the growing demand for oil i guess the paez getting bigger and we can all get along with strong demand and growth around the world are we really all going to live happily ever after or for the next decade or so what's your take well this is really a story of producers and consumers in this story very strong demand of course the growing economies require more oil we're seeing really strong demand coming out of asia china india particularly and yes there's a good amount of supply for right now looking for the international energy agency says that somewhere in the next three or four years we might actually be looking into a supply crunch then the story changes
a lot oh absolutely absolutely let me ask you with the western sanctions on russia and if you caught the story recently that exxon is getting out of their deal or at least some of their deal with the largest oil producer in russia rosneft and they're not going to go exploring i think up in the arctic circle with rosneft do you think the saudis might be filling the void left by the united states or perhaps other partners that who are currently doing business with russia and may not do so in the future. absolutely in china as well so we've seen a big geo political realignment with riad putting a big delegation over to moscow first time in history last october as well seeing trips to and new pipelines being built between china and russia so that seems to be the next big realignment around all of that russia seems to have no no shortage of markets to sell into in asia but china in particular china is the biggest part of the story by far and chris the saudis are very strategic it's not just what they're
doing with russia they're right here in the united states they are building out thirty billion dollars worth that refinery in port arthur texas right and if you look forward in this story the shale oil has been disruptive of the american shale oil it's unclear how much that story is going to continue in other parts of the world it really depends on the shale basin the capital markets a lot of complexities but as well we have to understand that oil isn't oil you know the stuff that's coming out of the shale play it's very light it's super light in fact it's too light for some of the refineries we've got here that's the stuff we're exporting it's practically gasoline coming straight out of the ground and there's a hunger for that worldwide but u.s. refiners in particular the want to port arthur those are two and for heavier more sour grades those are the kinds that saudi arabia sells as well what we get from venezuela so once you begin to understand the complexity of the oil market there's different grades and the a.p.i. the gravity of it the lightness of it that's what really matters in the story so
there the it really looks like what saudi arabia is doing is understanding that we're about to shift away from those heavier grades over time and it's the later grades that are coming in now to fill in the void really great insight let's let's talk trade a little bit you know all these steel and aluminum tariffs that are the topic of the shore in the last week but there are certainly some ramifications to energy production and nafta because we really have an integrated energy system between canada and somewhat mexico but how do you see this playing out. well if it gets very complex when we start getting into the energy side mexico big part of this story their own oil production is falling pretty dramatically their consumption is flat but it still means their exports are going down that's had a huge impact on the peso it's actually driven it down because the balance of trade is starting to really erode for mexico and they import a lot of finished product from the united states and natural gas as well canada
huge import export partner there taking some of our lighter oils it's coming up it's getting mixed with the tar sands output the bitumen and then being piped back down so with nafta if you if that just sort of gets crumpled up and tossed to the side it's really going to have some impacts on the energy side of this story i don't think it should be done lightly absolutely and we have to remember that you know they they use steel and pipelines and drilling machinery and we just have a little bit left here chris but you know texas is the largest oil producing state and rick perry the former governor of texas is now the secretary of energy when you think he might be counseling the president on. well i think that you know texas is just this wonderful example of american go get it you know get it done and boom bust psychology so they've been up and down this rollercoaster a few times i think you know rick sort of if he comes from that understood really what what that's all about he knows the good times are here and they're followed by
harder times in that story is certainly going to be one that we're going to have to watch carefully here so he's an interesting pick for the energy department i still am wondering where he's really going to where his his head really is on this whole story because my view we need to manage the energy assets of the country very very carefully they're not infinite but they're certainly abundant so with that you know i can't wait to see what he's going to do next he's certainly been mom on this thing chris martenson the founder of peak prosperity dot com thanks for sharing your expertise as always we appreciate it my pleasure. the c.e.o. of the japanese space coby steel ltd is stepping down a missed a scandal that is brewing for several months over cooking the company books related to quality standards coby provide steel for car and aircraft manufacturers and nuclear plants in october the company admitted to falsifying quality specifications on products shipped to hundreds of customers prompting a u.s.
department of justice investigation the company has admitted that some of the data false vacation went back fifty years when resigning as c.e.o. the president claimed i have to admit that we face deeply rooted issues that go beyond our compliance structure to our corporate culture and the mentality of our executives and employees. and now we move to see those steel and aluminum import tariffs which were generally announced by president trump last thursday we've all seen the sort of fireworks surrounding the announcement as we have reported here and boom bust today treasury secretary steve in the new chian said that the administration is not trying to start a trade war for more on this we turn to our resident trade expert r t correspondent alex mahela bitch and toronto alex administrations they don't says they don't want to start a trade war but they're doing a pretty good job of faking it and they certainly took it seriously in your country
what's your take. president trump says that he's standing firm when it comes to these tariffs twenty five percent on steel ten percent on aluminum but then in the same breath he says well you know what canada and mexico may be exempt from these tariffs if we can strike a better nafta deal you know nafta the worst deal ever so. he's talking out of both sides of his mouth and this is rather typical when it comes to donald trump we've seen this type of thing before and we mentioned it last week as well what he says one day can change dramatically the next day so right now nobody really knows where he stands but if you talk to the speaker of the house paul ryan and some congressional republicans they're worried they don't want a trade war they know what trade wars can do and trump one of the things he said is that this is a a matter of national security while they agree but on the opposite end of the spectrum they believe a trade war is actually bad for u.s. security since what you're doing is really in aiding some of your tightest allies
like canada mexico and of course the european union and when it comes to the european union some interesting facts here they're talking about striking back hitting three of my favorite things jeans bourbon and harley davidson motorcycles so they're saying they've put my put tariffs up on that as well as hits g.o.p. states specifically in the united states of america and if you can say interference that sounds like interference to me. but that's the way the game is played and when the game is played that way i think everybody loses in the end yeah those like you say those are it is interference it cuz the bourbon most of it kentucky bourbon is in. mitch mcconnell the senate majority leader member of president party republicans all in kentucky the bourbon and then the harley davidsons made they're made a couple places but their headquarters and their one of the big factories is in wisconsin that's the speaker of the house also republican paul ryan so grab certainly right but even just internally alex you know there may be some short term
gain for some of the steel and aluminum companies but if you look at the downstream products like cars trucks cans drilling equipment and pipelines that we were speaking about a little bit ago with chris martenson those could be impacted also right. well absolutely and i think a we've talked about this many a time just need to grid system that we have especially when it comes to automobile manufacturing between canada and the states but beyond that you know what's interesting there is a c.e.o. from canada who built steel pipes he has about fourteen different operations mostly on state side but also the canadian side this guy saying i love what donald trump is doing he wants to see these tariffs come into steel at twenty five percent then he's willing to give each one of his employees a thousand dollar a year bonus when this happens down there's a flip side to this of course he's aiming at china if you look at the breakdown of which country imports to the states with the most steel of course is canada that sixty percent number one we have brazil at thirteen percent china is number ten at
three percent so that's really not that big of an impact from china but what this guys say that china's been sneaking behind the door bringing in a lockers bringing in other steel products like mailboxes and that's the way they get away with not having tariffs but this guy also says that he believes that this will not happen so those thousand bucks in employee will most likely never happen r t correspondent and trade expert alex mahela bitch thank you thank you. and before we go in cryptocurrency news rapper young dirty son of the late wood tang clan member who will call be for now says his celebrity crypto coin will exist on the t.l. block j network and trade on the all market exchange when it launches later this year in what he calls an initial artist offering the launch of the currency will help to finance young dirties next album and fans will be able to purchase the be in young dirty merchandise with the crypto coins would tank land track cash rules
everything around me turns twenty five this year maybe the classic could be updated perty thousand and eighteen two coins rule everything around me or maybe not. thanks for watching that's it for this time the short catch boom bust youtube youtube dot com slash boom bust artie we'll catch you next time. i'm done some is not so is not i can quit place is not a good country and. children are the bush administration they live bunch of among us well some of the scum. of the you get this but at the message just so this is. the statement that the co-chair. of the cult is less sure of the checking of the dismissed polling is just a little unbiased from the from the moment of oneself to be deluded and. mostly all
of this forceful. play almost anything from a member of the base to not affect our better john said i'm based on our must who does not mean can i do not the last i would just write this contract make matter how anomaly can. run the show i'm in cannot. confront a man i can know who he was almost feel now we're going to fuck him on a cool nights insurrectionist on enough hours go should be able to sleep i don't want to go to the snooze in the micra forces in misery do whatever to sleep the. tsunami of our government allows us. to see others who are supposed to. both the united states and russia have announced their nuclear weapons posture both countries are in tree a new age of war the age of hypersonic weapons are we now in the new arms race.
this is. the church secret indeed catholic priests accused of sexually abusing children can get away with it quite literally i like to call this to do graphic solution so what the bishop needs to do then he finds out that the priest is is a perpetrator is simply moves him to a different spot where the previous standards not the highest ranks of the catholic church help conceal the accused priests from the police and justice system to that it does not give us the eye and then i think you'll hear that it used this yet in. this. case for.
the. british media speculates on the kremlin involvement in the suspected poisoning of a former russian double agent in the u.k. and despite the lack of hard facts the government is threatening retaliation. if those suspicions prove to be well then this government will take whatever measures we deem necessary to protect the lives of the people in this country our values and our freedoms. u.s. holds ground operations in eastern syria after its kurdish allies head to the north of the country to repeal an incursion by turkey. and a ninety nine days to kick off our teams while the team guy.