tv Boom Bust RT May 27, 2020 4:00pm-4:31pm EDT
to you and this to you. so do you see. i. this is the one business show you can't afford to miss branch of war in washington. the e.c.b. is forecasting a major hit to the euro zone economy due to the cope at night outbreak and this comes as the european union is i a major stimulus package to save the region's economy and the coronavirus continues to pound brazil as the latin american giant is now the new epicenter of the virus we break down the toll the disease is taking there and around the globe and later.
a new era of private space development lies over the rise and what the future holds for the growing sector we have an expert panel standing by with a packed show today so let's dive in. and the eurozone economy is doing worse than initially expected facing a recession as bad as the european central bank's worst case scenario according to e.c.b. president christine legarde now economic output in the block is said to contract between 8 and 12 percent this year old guard pointed out a previous estimates of the milder downturn are now out of date the e.c.b. will release official projections for economic growth and inflation in the block and next week meanwhile the european union on wednesday proposed a 750000000000 euro recovery package to help member states deal with the recession brought forward by the ongoing coronavirus pandemic president of the european
commission spoke about the situation. the aim must be to invest together and our common good we will be bold by raising unprecedented amounts of funding at european level we will be focused by channeling the funding to the new priorities that will shape the future. and to achieve this we're setting up the next generation you were 750000000000 general we will use the bulk of this money to help member states recover from the crisis and build up their long term resilience cut by city. and for more on the state of world economy let's bring in professor richard wolfe host of economic update and boom bust co-host kristie i let's start off with you professor wolf we actually had a question here for you actually the vice president of the e.c.b. has actually backed the unprecedented stimulus packages launched in the region and
now fiscal deficits are expected to widen even further what are the financial repercussions of this and is there any other alternative. well if the situation has been allowed to get your rate your arse hole you have gone a bit wavy forward economically a bit hard to achieve lack launched their performance a little and it can eat grass should do it's own 8. or enormous more really i think they are actually going to grow an enormous amount of money it made that very well may not be enough they had hoped to somehow just glide through we're not looking at her long term consequences at all what the borrower rachel missed what in commentary consequently in that way they're like the united states the damage girl huge amounts of money crush of cleaners don't look very hard at what
the consequences because unless you get through just crashed through the there will be nothing to worry over our because research can rot really finally crash it's that we're really intends to beat that makes them accurate myth that we are earlier predictions were out of date that they had hoped to slip through them very very serious a problem for europe and now kristie kind of the same point the same day that the e.u. proposes a 750000000000 euro recovery fund japanese prime minister shinzo abbay approved a new $1.00 trillion dollars stimulus package what's included in that package. all this package is really significant not only because of the sheer amount and the package but also the scale of it and significant as it includes direct spending measure higher medical spending rent subsidies and business subsidies now this new package will take the pants total spending to combat the crowd of virus to about
$2.00 trillion dollars or about 40 percent of gross. and to further modest putting this into perspective this spending is now approaching the size of the u.s.'s. who is currently sitting on top with $2.00 trillion in 8 programs so now in order to fund this japan what should an additional $31.00 trillion yen and government bonds which will push the new j g being issuance miss fiscal year to a new record of 90 trillion yet and analysts suspect that this may not even be the end of it and there could even be potentially a 3rd round of helicopter money and does depend make sense the very real possibility of a credit downgrade which would be just disastrous for the economy now professor will fall into that here because that's how still it is intensified between the 2 sides how bad could relationships between china and the u.s. actually get could this turn into another full on cold war and what will it mean for the economy going forward and i just want to point out that you know we've had some new news about the c.f.o.
of wall weigh in their canadian court case as well for extradition so there are a lot of things happening here that are not going to help necessarily relationships between china and the united states. well i think what you're seeing if i can play with a historical parallel which is really all we have to go on is a little bit like what happened after world war one as part of the great depression countries try to get through with the minimal they quickly discovered that their whole set the invisible hand of capitalism will heal itself don't turn out the work real well so then they try to get by with a little then a little isn't enough and they have to get by with more then they're beginning to be resistance so bend a turn as you can see we're doing to bashing the us are now trying to push themselves at the expense of somebody yell that's bad mouthing of our american
dumping on immigrants and now the cold war revival with china it's a way of deflecting attention from the difficulties and there's somebody embroil how far can it go all that bad the answer depends on how desperate the 2 started so heart and since the initiative here comes from the united states and not from china for all kinds of reasons the bottom line now is how desperate will trump in the g.o.p. become as we get closer to election time to face a crisis which they will need to blame on someone and the work to make that someone china is what we're watching now and now chris i want to talk about this because we have the r. and b. actually crashing to record lows against the u.s. dollar amid these tensions between the u.s. and china what's happening in this escalating battle between the 2 superpowers on your own your opinion there. well the reason for that particular leg down this morning appears to be coming from 2 of china's most valuable u.s.
listed mega cap companies who are now pushing ahead with multibillion dollar share sales and hong kong now this comes as u.s. lawmakers are putting additional pressure on chinese companies in order to disclose their financial information either that or face delisting from the exchanges so the companies now are not in sync which is an online gaming company njt dot com the economist dion who's often compared to amazon the 2 companies are aiming to raise about $2.00 to $3000000000.00 you know in a june listing and by the google china is also exploring and options of doing a secondary listing in hong kong or elsewhere and now this is a have major ripple effects across the entire investment community as china has remained the premier growth story and a major allocation in any investment firm portfolio so i back want to argue that the entire ball rally in the last 10 years apparently driven by the china growth he says so by restricting access to investment opportunity this will severely impact returns and by delisting where essentially just invoking another barrier and
restricting capital flow in the market so those will have the tremendous results and opportunity loss on both sides us companies will have access to u.s. capital and u.s. will have access to china growth professor richard wolf and kristie arcos thank you so much for that expert analysis. thank you. let's take another global look at the trends and spread of the coronavirus with our 2 correspondents. where we world wide today so brand worldwide the virus has now affected nearly 5800000 people and killed over 350000 here is what's going on globally so i made this pie chart and i look at it down by regions that have kept some countries although i happen not mentioning them to show for example in north and like in europe there are other countries been affected so 1st i'm going to be talking about confirmed cases so the most cases have been in north america obviously in the u.s. where there's been 1700000 cases and 1100000 cases which are
actually still active and as of may 20th each state that had imposed a stay at home order has begun lifting the restrictions and people are allowed in some places to go back to restaurants and offices and places overall worship now moving over to europe these 5 countries have been hit the worst u.k. has out over 267000 current cases followed by spain 236000 which italy is not too far behind 231000 france and germany are behind these 3 but their numbers are significantly lower and all of european countries have started easing some kind of restrictions for example in italy while foreigners can't visit yet locals are flocking to their beaches now moving over to asia where russia and india have had the most confirmed cases in russia currently has over 370000 cases and moscow will began to gradually ease
some restrictions starting june 1st and india has about 157000 cases and most of india's cases are concentrated in the in. western area which is home to the financial hub and then we have south america where brazil and per rule are seeing a number of confirmed cases now brazil still has the most at 400000 cases but many health officials worry that number is actually about 20 times higher now over to the middle east. is still leading with a 140000 cases and their newly elected 268 member parliament met today and images from the meeting showed that many did not even wear masks and did not observe a social distancing either now lastly in africa right here south africa still has
the most confirmed cases with over 24000 where they will begin to ease restrictions starting june 1st and i want to go over to the next chart which shows which countries have the new new list cases so u.s. and north america is trending with the most cases but it's actually that trend is going down which is why some states are starting to lift a lot of restrictions and so what's really significant in this picture is that some countries are pairing to have significant increases in new cases in asia russia and india are seeing new increases daily and even lower to south america brazil is still seeing the most chile and mexico are also following in new confirmed cases that we're seeing within the last 24 hours now moving over to the middle east were as iran has had the most confirmed cases could tar and saudi arabia are catching up
where they are getting a lot of new cases and then we have in africa you can see this right here but south africa still leads in confirmed cases but at a very low number and then lastly we have. europe which united kingdom has had the new cases but lastly i want to talk about the number of deaths which has had 100000 in north america in the us this yesterday actually and now what's the difference is that in europe to mortality rate is a lot higher as in the us the mortality rate is about 5.9 percent in europe differs between 11 to 16 percent and in south america brazil is also still leading with number of deaths in mexico asia and china there is about 4600 deaths and but with the crazy thing here is verses in asia with
a population of 1400000000 people we have in the us population of 330000000 where the mortality rate has been a lot higher. correspondents are tabular thank you for keeping us up to date. and time now for a quick break but hang here because when we return a new era of private space development lives over the horizon but what could the future hold for the growing sector we have an expert panel standing by and as we go to break here the numbers at the close.
you can be both with the yeah you like. i'm chris hedges the corporate coup d'etat has destroyed our democratic institutions the commercial media is burlesque part of the reality show presidents expose the trivia see on contact question more. seen the horrors that arise the money and even combine. corporate criminals who trash
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of the mainstream media buyers and from that higher fantasia to glimpse the big picture question more. and welcome back wednesday is an historic day marking the 1st time a private company has carried humans into earth orbit with the final destination of the international space station 2 nasa astronauts retired marine corps colonel doug hurley an air force colonel bob behnken will take flight in space x. crew dragon capsule atop the company's felt in 9 rocket the rocket will take off from the historic pad 39 a florida's kennedy space center the same starting point of apollo era era missions including the moon landing in 1990 now after the falcon 9 launches the crew dragon into the upper atmosphere the capsule will separate from the rocket and begin heading towards the space station the falcon 9 rocket will then return to earth
where it is supposed to land on a drone ship in the atlantic ocean northeast of cape canaveral for reuse this also marks the 1st launch of u.s. astronauts from u.s. soil since 2011 since then the only way to set astronauts to the i s s has been on russian rockets launched from kazakhstan now when it comes to the cost of these flights a 200-1000 report from nasa is office of the inspector general says seats on russian soyuz launches have cost as much as $86000000.00 each and roughly $55000000.00 on average over those last 10 years of the same report estimates seats on the crew dragon will also cost about $55000000.00 with all that said let's take a look at the significance of this moment and the future of commercial spaceflight with the executive director at the center for space commerce and science and rick tumlinson who is the founder and chairman of space as well as the co-founder of the space frontier foundation thank you both for joining us on this massive day here
rick i want to start with you i how monumental is the 1st manned space flight to enter the international space station put on by a private company how big is this. this is huge. you know this is where we've been building to for many of us for both 30 years and though this is the beginning we believe that it is brian full worth of being able to put human beings in this space. not using the gateway or the airline. that the government now has and instead of opening it up more and more people where we can expand and create industrial. and gentlemen i have some unfortunate and breaking news right at this moment it appears nasa and space x. have been forced to postpone the flight i know there is some weather conditions
that were coming up we're getting multiple reports from multiple sources but that doesn't take away from this conversation because this is still a monumental moment i believe they're going to reschedule it for the weekend so erin i want to talk about this more we just mentioned the cost of these flights costing nasa roughly $55000000.00 versus the upside of more than $85.00 when we're launching out of kazakhstan are these savings going to actually make a big difference in space exploration. oh absolutely. so it's something to not it's not just about the per seat cost but also about how many people you can send at $1.00 time something about the international space station and this is the primary purpose of this crew dragon it requires constant nature maintenance and part of that is due to age but also because we're in a how this environment with a lot of experiments and kind of learning as we're going so the savings per seat plus being able to send additional people at one time that really allows us to
maximize the potential of the i assess offers and now rick are there are some major concerns about having private companies becoming the leaders in spaceflight and exploration i mean it's not always the most trustworthy situation when you put a private company in charge of something that is so important obviously on these 1st several we will see the most everything take precedent and safety and everything but there are the concerns that as people get complacent in the private sector and they start to try to cut you know save money is that a concern for you. you're inferring that we should trust the government more and by that. the goal here is in transition from government science and exploration activities in space to the opening of a space in the front sooner where people can build businesses and perhaps well now that we eventually know their homes instance we want to get there but the only way
to get there is to begin to know our flow of 3 or 5 times and start creating revenue the syrians that allow us to do that and what's now also working with companies like space x. and the other providers that starting to create a bit of a competitive market newsy in the purchasing power of the government and this new station we're in pushed cars now so more and more people can go and more more things will. now erin obviously and as rick actually just mentioned we've been focusing on space x. but because of their big news which was 1st up today but of course there is virgin galactic and blue origin as the other big players as well are there plans to actually make these coverage profitable and how exactly would that work. well. i think we have to remember that all of these firms are dealing in transportation right so yeah we're going from the from earth to space and that's
very big and powerful but the way to be profitable and transportation within the transportation industry is to be able to leverage economies scale to be efficient and be able to increase your frequency of deliveries so they'll get there it just brought a stage at this point where their concepts are showing that they can do this safely and reliably and to the point where as we see that we're going to see them become more profitable because they'll get better. and better and overcome that learning curve and now rick obviously this flight was set for the assess but one of the big things that we've heard about it is tourism and i think to what you kind of mentioned i want to this is a bigger term but colonization maybe is not the right one how can the private industry sustain itself with nasa and the ultra wealthy as their only customers. again that's and we're going to stay away from the work colonization trying to. do
my and again i don't mean to correct you so much on this and we're in the aggregate that's great. do you know. everything's going to change out there somewhere. conversations you know. i do believe that. we will start you know basically look and i want to be really clear you have to be evil on this make money name a new money so they can do this and then once they start doing it and and building that infrastructure and transportation system then we're going to see lots of private companies coming in through new kinds of products things that are beneficial and if he were just recently you could think. rick thomas an errant pogo thank you both for your expert analysis i wish it was better news that we would get to see this launch happen on wednesday afternoon but unfortunately we are not and right here in studio we're joined by the host of the news with rick sanchez rick
sanchez himself who has been following the story. unfortunately we've had a cancellation rick what happened so here's what happened just about 3 minutes ago we 1st heard mission control start to ponder the possibility that this thing might be canceled then we heard the flight director say if you could just give us 10 minutes if you could just give us 10 minutes we know the window will be clear sounds like there was some conversation going back and forth as to what they could possibly do i'm not expert in this. i may be many things but i reckon so there's no one of them but what we do know is that they were fueling the rock you know they were sure they were fueling the rock liquid acid i was wearing now yes but they had to pull the plug they had to pull the plug the conversation seemed to be about whether there was a front in the area that you look you know florida and certainly i know florida and what happens in florida is that you literally have fronts that come through could last like a half hour then they leave and it's
a beautiful bright sunny day well they just happened to catch one of those fronts that were coming through they've been negotiating whether or not they'd be able to clear that window since early this morning and we've heard it in the conversations and they kept telling us that there was a possibility they would have to cancel that just about oh i would say about 3 or 4 minutes ago we 1st started hearing the 1st inklings from the flight control operator saying look i don't think we're going to be able to do this but we can't be sure yet if we could just get 10 more minutes we could make it if we could just get 10 more minutes we could make it now you know at this point we were looking at what 433 right there was no way that they were going to be able to do it at 433 so that's when they pulled the plug admitted in our quality call john he told you earlier that it had to be exactly 433 so he said exactly so unfortunately that did not happen with rick sanchez rick sanchez thank you so much for coming out to give us that update here if you have the time to do it that's it for this time you saw the demand on the brand new portable t.v. at the valve on smartphones through google play and the apple app store by
papen tonio this is america's lawyer last week a dance failure in michigan led to the catastrophic flooding and now dow chemical tells us that their waste products have been mixed in with this floodwater we'll tell you what this could mean for michigan residents who are now dealing with a double disaster also tonight economic recovery from the pandemic has become a top priority for getting this country back on its feet but with sweeping deregulation of business is what did this cost us in the long run and then later in the show investigators clamp down on texas air base feuding and provide new insight into last year's pensacola naval base attack and they're linking both of these incidents to terrorism don't go anywhere america's new war starts right now.
floodwaters in michigan last week and ended up maine galing with toxic chemicals from a dow chemical plant i have ferrand cousins from drill our magazine to talk about it this is pretty disturbing article i mean if you're a resident or a farmer around that plant you're in big trouble right now but i'll tell you the take on it was it was so odd to me the take on it was well the federal government's responsible no the federal government's not responsible for what happened here they've allowed the infrastructure to fall apart and they've allowed dow chemical to do everything they wanted to do with their toxins in that middle america that nobody to blame but them i really don't see anybody to blame but no right and this is a you know we're suddenly dealing with this issue but these were failures that were set up for decades as you mentioned the infrastructure the superfund site the dow chemical was running or are you know now.