tv Boom Bust RT July 1, 2020 4:00pm-4:30pm EDT
which your thirst for. this is the one business show you can't afford to miss. in washington coming up the f.c.c. of specialty labels huawei and the as national security threats but what does this mean for 5 planes with our co-host look for excuses boeing of failing to disclose key information on a safety feature for the 737 that was blamed for deadly crashes here we have a show today so let's go into. the u.s. federal communications commission or the f.c.c. has of viciously does it needed to chinese companies as national security threats
will the 2 companies walk away and have been heavily criticized by the trump administration for the past several years but this latest doesn't nation is significant as it severely limits access to u.s. government subsidy programs in a statement from the chairman of the agency says with today's orders and based on the overwhelming weight of evidence the public safety and homeland security bureau does ignited wall way and as national security risks to america's communications networks and to our 5 g. future meanwhile in response the chinese government has issued its own statements about the designation saying that the u.s. is by a lady its own economic principles. move under this kind of economic by the u.s. it was a boy in the. u.s. has advocated for hitting u.s. operators from buying war way. through the u.s. started. security will have
a serious impact on network services. with an underdeveloped areas in the u.s. . joining us now to discuss our boom bust co-host ben swan and chrystia i ben let's let's start with you and let's start talking specifics here now this does it nation it means i walk away and i will not have access to the universal service fund why is that so significant. yes so just to give viewers an understanding of what this is the universal service fund is essentially a huge pot or the f.c.c. uses to essentially provide telecom service to rural parts of the country areas that are not urban that do not have a lot of access to cell phone towers and those kinds of things and so the universal service fund has about $8300000000.00 in it and then that money is used to essentially pay and subsidize telecommunications companies to go out and make it worth their while to place towers and telecom communications equipment in the areas where it's needed but they might not make
a big profit off of it so that's what the point of it is essentially what this this decision says is e.t. in what way cannot be a part of that system as telecom companies they cannot receive any of that money that would go to like of arisan or you know t. mobile sprint they they're not able to get that but there's something else that's very important here because as typical as is typical i should say of so many government initiatives this is one that doesn't take into account a much bigger issue which is that existing towers in these rural communities right now sara have equipment in them that was produced by and built by wa wait or by c.t.e. it's already there under this ruling companies would have to go out and take those towers apart and remove that equipment it can't even be in there at this point so you have created an entire new stepping stone for those communities in terms of possibly losing telecom service at some point right and this is removing up possibly replacing and probably at
a much higher expense is what we're probably looking at here kristie the move is obviously a part of a much larger strategy right way in which the u.s. has used to target while we've seen the since the start of the u.s. china trade war but most recently secretary of state my pump ale said the tide is turning against weiwei this was after india announced could be banned from participating in its 5 g. network rollout is the us war on wali actually working we saw the u.k. in a lot of its allies saying they're going to allow part of their 5 g. network until it. well to giving us full credit that it's worth all is exceeding given india's recent ban that would be a little generous because china india's tensions have been on the rise for some time now and things have escalated in the latest for a clash that left 20 indian soldiers dead so for those that don't know india and china have the world's longest unresolved boundary in the himalayas and for some time now they've got a good record of resolving these tensions to ensure that it doesn't spill into conflict but this time around in news they'll bring
a strategic road on the territory to connect the region to an airstrip which china is objecting to so this dispute compound it with the economic stress caused by the coronavirus which many are still pointing to china for as likely force the indian government to adopt a strategy very similar to the u.s. to potentially retaliate in a way that could hurt china and that would be banning their crown jewel huawei from its networks so right now currently india's biggest network reliance new samsung for its 4 g. networks and the other 2 players bharti airtel and vodafone degassed has one of the vendors currently makes up about a 3rd of bharti airtel network and 40 percent of that of so this would actually be a significant loss for a.n.z. the government goes ahead and bans them so i'd say it's really not so much as india following the u.s. lead and blocking huawei it's more so trying to hurt china's influence by banning not only huawei but also 59 other apps including our favorite tech talk and
according to the press release these apps have a walk because they are quote engaged in activities which is prejudicial to the sovereignty and integrity of india security of state and public order. but we're seeing this play out in various forms here not just in terms of the talk communications but in terms of social media like kristie just mentioned with countries like india blocking chinese to talk and we chat now they're claiming that they too are these national security threats so it's an altogether war against the tech 4 of china's china provides while other countries follow suit here. you know it's tough to say i think christie is spot on in what she was saying about the you know relationship between india and china and this really has nothing to do with the united states now i can see mike on pale the secretary of state running behind all of this waving a flag and saying see see we did it in fact the u.s. isn't really doing anything because he's actually right about that this is about unresolved issues between china and india having said that there are other factors
at play here as well including the fact that you know she pointed out of reliance geo which is the largest telecom provider in india right now they have about 300000000 customers so the entire population of the united states is their customer base in india is one of those companies that is probably very excited about this idea of banning tick-tock because somehow to talk is a national security threat to india meanwhile you have a company like facebook that just bought 9 percent of relying go so you have essentially corporate entities that are playing a big part in this and so we shouldn't all be seeing that just because a country like the united states or like india wants to tag the phrase national security threat onto an issue does not mean it's actually an issue of national security many times it's an it's an issue of corporate interests and what those corporations think is good for their bottom line well that's when convenient right i mean we just saw that in mid june the commerce department announced that it was going to move away from the entity least in terms of allowing them to work with
companies in the united states to help them create 5 g. standards speaking of 5 g. kristie is this the beginning of the end for a while we in terms of 5 g. dominance they are supposedly in allegedly they say months if not years ahead of other companies in terms of 5 g. . so i don't think there's a way while we can and will survive but it definitely will slow down because this campaign against holland has cost us billions of dollars and has gone so insane and just prejudiced that it almost doesn't make sense logically and from an economic standpoint in fact an assistant secretary of state literally said last week that washington might be willing to help other countries pay for 5 g. gear from european companies such as nokia and ericsson to a lawyer technologies so that just sounds like plain old dirty tactics like hey i'll pay you to not buy from my biggest competitor so really what needs to be asked
is what will happen to the american technology companies that are going to lose their biggest market because this isn't just another escalation in to expect us to be an escalation and not expect china to do anything to retaliate that's just ignorant of what we've seen in 21000 china will absolutely retaliate if that's the case and america is now in that situation because trump originally said that trade wars are easy to win but the u.s. has shown that its biggest failure to date was underestimating china in the start who most co-host i just want to show had been and i was just to say i just wish that the u.s. would show and demonstrate the proof they say they have that while way is a compromise system you know before you spend taxpayer dollars paying for other countries 5 g. technology want you show me evidence i think that they have actually got they have it have you know we'd love to see it well let's hope that they will listen and some some time at some point show us who must co-host been swanning christi i thank you for that. it's a long awaited government report from the u.s.
department of transportation's office of inspector general released was released on wednesday the report included a summary of events that led up to the federal aviation administration certification of boeing's 737 max this is the plane that's been grounded out from commercial flight since march of last year after the 2 fatal crashes that killed 346 people now in. 52 page document revealed details regarding the certification of that 737 max jet that started back in january of 2012 well the report exposed boeing's failure to disclose some key changes to the jet for more we're joined by highlights association communications committee chairman dennis tazer dennis thank you so much for being with us today i want to read part of this report early it's as early in the process boeing included limited information and initial briefings to f.a.a. on the access flight control software boeing prevented the software as a modification to the existing speed trim system that would only activate under
certain limited conditions as such and cas was not an area of emphasis in a certification efforts and therefore did not receive a more detailed review or discussion between f a f a engineers and boeing we know the failures of these 2 fatal crashes had to do with the m. cas why was this overlooked. when clearly and i'm assuming there is some slight max what this shows is what we've heard all along is that something happened. did not get breached in did not inquire as to the additional changes at the m.p.'s and added to it by boeing boeing initially had a very light share system which is described in this report and then they upgraded it it actually increases the power and depth of that by 300 percent it was to deal with an aircraft in a different light regime they actually did not detail the brief to boeing on what was changed and even worse than that the took their old assumption and said the
other one was very small in measure power so it's the same effect the pilot could deal with that the reality is that this new system which is what ultimately caused these 2 crashes was developed in f.a.a. the f.a.a. was not briefed on it and they didn't. quire what this new detail was and that is the failure of the certification system which is actually indorse is this sort of you show me your work you grade it and i trust you so there's that obviously led to serious problems and the other serious issue that report also provides the detail of events that happened between the 2 crashes right and the f.a.a. was presented with the full picture of how the end has actually worked f.a.a. and boeing they had an agreement to implement some of these recommendations for the end cast off for a fix by april 12 but it was on march 10th one month before the ethiopian fly crashed a result of 157 fatalities did the f.a.a.
severely underestimate this issue. well the f.a.a. they did a safety assessment and that's the often talked about they expected over the life of this aircraft 15 crashes which is unacceptable it's a catastrophic rating boeing had rating it is just a risk a concern so there was this designation of risk in the f.a.a. had already done an analysis so what happened from the time boeing said they were going to fix the m.k.s. to all the time it took they told us boeing told us in a meeting on 20 sims of november and 2018 face to face i was there that they would take about 6 weeks and they would have this airplane fixed it took longer and then the information stream in between then clearly shows that the f.a.a. saw a much larger risk and boeing had not fully disclosed that as you described earlier so we want to know what happened and why didn't somebody raise the flag on us and either get it done earlier or give us information or perhaps even ground your plane
prior it's all left those questions are left to us but now we're seeing what actually happened and it confirms many of the items that we have been told had happened all and you mentioned that that boeing really took longer to to fix these issues at the likelihood of seeing 15 crashes and we only saw 2 i mean. that sure of a miracle here but boeing 737 max jet is already taking tests they took a test flight for the f.i.f.a. certification on monday it was successful on its schedule to get to have more tests this week what's next for the model are we going to see it up in the skies anytime soon and how trusting are people going to be and taking off on these planes. or if they're with their passengers why should you trust and we haven't we haven't brought that broke the trust is broken between boeing and to a certain extent with the f.a.a. so the bottom line on a says this aircraft the m.k.s. as to be fixed that's what they say they've done and are now standing as many of
the things that we brought up in additional items that they have basically changed the way the young cast operates will see when we see the end result of course the f.a.a. certifying it but another critical important part of this is the pilot training and we started out with this they were just going to slap another i pad correspondence this is after the crash and say hey we're briefing on a new system in the airplane now it we've evolved to a position and some of that is leverage because of the absurdity of the way this thing was originally designed and how much they didn't take into account the pilot reaction so now we actually have boeing supporting simulator training which they were trying to avoid and seen in this report it talked about the cost of simulator training for pilots so it was a a cost issue they were looking at the money on this when they originally developed the aircraft they've come away from that and now we have expansive training materials reviewing we don't know if that is enough but we're evaluating that now and no you can sense there's a little bit of a seems to be another rush to get this airplane going again we've taken our watches
off we've never looked at the calendar when it is fixed and we are trained in that airplane is fully vetted and not just by the f.a.a. by about all these other regulators who are interested in calling to question how to make it even better then that airplane will be good to fly and i'll stand at the cockpit and welcome people aboard and. when any ask me and we'll kick out then i will say yes because i know what's next but we're nowhere near that right now well and boeing is still expects to have it up in the skies by by this year they're hoping i mean that money that could have been galling into the training of these pilots could have saved hundreds of lives down a stager of the allied pilots association thank you so much for joining us and making time for us today. thank you. time now for a quick break but stay here because when we return minutes from the federal reserve's june meeting show the fed will keep the stimulus coming for as long as it takes the economy to recover as we go to break here the numbers at the close.
institutions the commercial media has been less part of the reality show presidents expose the trivia lots on contact question more. seeing the horrors that arise with money and evil. corporate criminals who trashed countless lives there just one more dollar. to their millions. they threaten they arrive they'll do anything to keep their crimes in the dark but the people they fired are demanding justice their stories need to be told on america's lawyer. dear thank you for finally changing your understand you're tired of networks that are new with you. 'd they are not no matter what. you know me 'd i'm famous for my
views. and. yours truly scotty now. i'm holland cook i invite you to climb with me of the mainstream media and from that higher fat age to glimpse the big picture question more. global markets are up on rising hopes of a coven $1000.00 vaccine will drug giant pfizer and biotech firm biotech released a paper on med r x i v that said a coronavirus vaccine they develop showed potential and generate antibodies against the sars cove 2 this is a virus that causes covert 1000 will to study randomly selected 45 healthy participants 24 people develop significantly elevated antibodies within 4 weeks of
their 1st injection pfizer shares jumped 5 percent on the news buy in tech rose by almost 8 percent while there were no serious side effects some of the most common did include fevers fatigue and headaches pfizer and biotech are still looking at the dose level and they're testing 4 different versions of the vaccine for a trial of up to 30000 participants now they're waiting to see of a phase 3 trial work and that's expected to star in late july. federal reserve minutes released on wednesday from its june meeting show the agency will continue to do whatever it takes to keep the economy going while officials see the need for highly accommodative policy ahead the fed continues to discuss capping bond yields and strengthening its guidance on where policy is headed members noted that they expected to maintain this target range until they were confident that the economy had weathered recent events and was on track to achieve the committee's maximum
employment and price stability goals for more on this we turn to for. survey insider and c.e.o. and chief strategist of cool intelligence danielle de martino booth danielle thank you for joining us today thank you for having me are you surprised at all by by the announcement that came out of the minutes today. no i was expecting the fed to be extremely devenish in its views if there was one bit of surprise it was that it seemed like they might even be looking at targeting a range of unemployment which ended very badly when i was still inside the fed we decided to do that the fed and it chasing the target and losing quite a bit of credibility because of that but in no way was i surprised today at the at the depth of the i think that chair powell in recent in recent. testimony excuse me to congress has a none stated very clearly that the federal reserve is going to be lower for longer than anybody has ever seen in the past and they're going to continue to stimulate the economy as long as they can and until it recovers and he actually did give give
this warning on. a hearing on tuesday but the fed has began purchasing corporate bonds e.t.f. on may 12th this was obviously to prop up the credit market in the midst of the coronavirus crisis but since then the fed has become the number 3 holder of the world's biggest corporate bond e.t.f. as well as the 2nd and 5th largest holder of the vanguard short term corporate bond e.t.f. and vanguard intermediate term corporate bond e.t.f. is this starting to look like japan who central planning the u.s. has mocked for the past decade. it is certainly starting to feel that way especially when you consider that some of the companies that it is it's been buying through these e.t.f. are they have a fortress balance sheets they're in very good shape the fed is theoretically crowding out natural buyers of these bonds who are going going forward to have a very difficult time ascertaining what the market price should be because you've
got this price agnostic buyer in the market the fed doesn't care what the what the price of the security is just that they're fulfilling a liquidity mandate that they've set for themselves that really is outside their original boundaries of the federal reserve act of 1913 what are some of the repercussions. the fed from the fed becoming that top e.t.f. is this really going to impact the integrity and liquidity of the markets. well i'm not so sure about liquidity but what it is doing is to your word integrity and what the fed has discovered over the past 5 or 6 years or so is how very difficult it is to extricate itself from these programs we've seen this which national bank for example as well as the bank of japan they've been in the e.t.f. business for years now and you could only imagine how cataclysmic it would be if they were to attempt to step back but this is the last thing that you would expect to see in a free market economy where the market is supposed to set prices by stock based on
buyers and sellers and supply and demand the fed is really distorting that natural relationship. federal reserve chairman a drone powell and this new chin they presented differing viewpoints of the u.s. economy on tuesdays and their testimony before congress with another round of stimulus the still being debated what aspects did they focus on and what further relief efforts are we going to expect to see or should we expect to see. well i think the owners and that the fed minutes also made this clear i think the onus is pushed back on the fiscal authorities at this point the clock is officially ticking we're inside of the month of july we know that $600.00 in additional weekly unemployment insurance payments and at the end of this month there are some rental moratoriums that are being lifted in certain states so it is really upon the fiscal authorities are going to come in and provide relief because the fed for all of its mandate of maximizing employment has certainly not been able to do that with
30600000 americans collecting unemployment in some form. definitely we have a lot of little about a minute left but in the latest research publication by the e.p.a. one in 10 americans who are out of work will not be getting called back to their old jobs this basically means that about 7.2 percent of the workforce have no hope of returning it is this being largely ignored by the market right now. i don't think that the market is appreciating the depth of the permanent unemployment that we're going to have coming out of this crisis we're seeing 40 percent of the economy at at the least as one state after another that's reopened has begun to reverse those efforts and reshut or this is going to put us into the beginning of a w. shaped recovery with the next leg down that will cause permanent unemployment to stay at elevated levels in this country definitely a volatile time and it will continue to be so c.e.o. of paul intelligence and former fed insider danielle de martino both thank you for joining us today thank you. the world of disney is getting into technology many
have called unsellable wing are even controversial but it could be part of the future of movie making while disney research studios recently released this video along with a paper showing some high quality deep fakes well deep fakes are a form of high tech face swapping current technology may be enough for your phone but not for the big screen or a high quality televisions there's no word on what this will be used for exactly however star wars fans will remember carrie fisher brought back to life as princess leia or the late peter cushing a grand tarkin using a different face mapping technology well we'll have to watch out and keep an eye on that that's it for this time you can catch boom bust on demand on the brand new portable t.v. up available on smartphones through google play on the apple app store by searching portable t.v. or stream us to your t.v. by downloading the portable t.v. on apple t.v. and online as part of the t.v. .
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child might have been told you know this is america's no. donald trump is set to hit a major milestone this week with his 200 visual bomb them confirm the percentage of 12 appointed judges now serving life time appointments is staggering and he was able to goodness. partly because of mitch mcconnell and partly because obama left him more than $100.00 vacancies so that we'll talk about the legacy of the troubles created and how it's going to shape this country for generations but also tonight the federal reserve is rolling back regulations designed to prevent big businesses from making the kind of risky investments that led to the 2008 financial crash it was an ugly one and later in the show trump signs an executive order to give better resources to children.