Google Speech-to-Text API Automatic Transcription (Chirp). Treat it as a searchable index of what was broadcast, not a quotation record.
00:00:00sell their houses, their cars, everything to to finance their
00:00:03hospital bills, so there's a concentration of income and wealth and
00:00:07of power in the United States, which is eroding the
00:00:11so-called American way of life, the so-called American
00:00:14democracy, it's less a democracy, it's more
00:00:17democracy in name
00:00:19in than in reality, when it comes down to it,
00:00:23things under Donald Trump are much worse than under former US
00:00:26president Joe Biden, this chart here outlines key
00:00:30of economic indicators from gasoline prices
00:00:33of to of inflation to average hourly earning growth and
00:00:37finally GDP growth all better under
00:00:40of Joe Biden. Meanwhile, Donald Trump's Iran war has already
00:00:44caused US households
00:00:461,760 each
00:00:49since the conflict began less than eight months ago. Most of that
00:00:53bill did not come through taxes,
00:00:55of about of $930 per household came from higher and...
00:01:00energy costs, another $425
00:01:04came from higher interest rates linked to the inflationary impact
00:01:07of the war. Mudies puts the
00:01:10of
00:01:13in of household share of additional military spending at roughly $405. Across the country, Americans
00:01:17have already spent an estimated $121
00:01:21billion dollars more on energy
00:01:27of alone.
00:01:51a
00:02:05of
00:02:16of
00:02:27The rise in interest rates in long-term interest. affects not only
00:02:31mortgages, but all forms of financing to enterprises and
00:02:35consumers in the United States. In the meeting just concluded,
00:02:38the
00:02:39in FOMC of decided to raise the target range for the federal funds
00:02:42rate by a quarter of a percentage point to 3 and
00:02:463/4 to 4%
00:02:48a in support
00:02:48of the federal reserves dual mandate. The committee is
00:02:52continuing its policy of maintaining ample reserves in the banking
00:02:56system. Economic activity is expanding a solid pace.
00:03:00"well, uncertainty remains elevated, but
00:03:04inflation remains elevated. Today's
00:03:07policy action will support
00:03:09a timelier return to the committee's 2% goal. No,
00:03:13of I have lot of respect for him, and he'll do what has to do. I think we our
00:03:17interest rates are too high. I think that uh, we're the leading
00:03:20country in the world, we're now economic force like like we've never been
00:03:24before because of what's happened. We have the greatest investment ever
00:03:28made
00:03:28in any
00:03:29of country by many. times again, we're over now
00:03:3320 trillion dollars of investment coming in, no countries
00:03:37ever been there, and with number one, we should have the lowest
00:03:40interest rates in the world, because if we wanted to, lot of
00:03:44countries that are paying less interest rate only because of us, because they
00:03:48do business with us, if
00:03:49a we wanted to put tariffs, we stop doing, we
00:03:52have the right to stop doing business with
00:03:53of them, they would go from
00:03:55of so-called of elite country to poverty stricken country, what's
00:03:59what's going? in my opinion is the lack
00:04:01of of trust,
00:04:05of of increasingly fragile confidence in the public finances and debt
00:04:08of the United States, so this
00:04:11of leads to reduction in demand for bonds and
00:04:15this reduces the price and
00:04:17of raises the yields
00:04:18of these bonds as we have seen. this means that the
00:04:21United States is under
00:04:25of under vicious circle because high deficits
00:04:29lead to... distrust and high interest rates and high interest rates
00:04:32affect not only private borrowers but also the public sector
00:04:36of the borrower, increasing the the weight
00:04:38of the interest bill and therefore the deficit and the
00:04:42growth
00:04:43of the public debt going
00:04:44forward.
00:04:51it's a very delicate, i
00:04:52of would say fragile situation which has led the United States to
00:04:56try to intervene in
00:04:58in markets, of not very successful. so far by
00:05:01intervening at the long end
00:05:03of the
00:05:04of the interest rate curve, by buying up
00:05:07a long term b to try to prop up the prices and also by
00:05:11intervening in the... in the yen
00:05:14dollar market trying to avoid
00:05:18depreciation the the yen that would be harmful
00:05:22to us interest and allow
00:05:25Japan to to forestall any initiative to
00:05:29sell off its bonds, you see Japan is major holder of US
00:05:32treasuries, it's Japan in the effort to contain
00:05:35depreciation throws uses its reserves
00:05:39and and redeems and as the redemption of
00:05:43this treasury bond holdings, then the situation will be even
00:05:47worse for the United States, so that's why the United Station
00:05:51is doing this two simultaneous interventions in the for exchange
00:05:54market to prop up the end and in the
00:05:57long-term bond market to prop the the
00:06:01prices of treasury bonds in secondary
00:06:03market.
00:06:21This is the social section the program. Many Americans believe we are
00:06:25already a recession, therefore, even though we are
00:06:29$41 trillion dollars in debt and climbing, the
00:06:33government may be forced to issue stimulus checks to prevent a
00:06:36depression. Promise to pay me and
00:06:40you and anyone who... which I'm not voting,
00:06:44but but anybody who would vote for him and or his party, the
00:06:47GoP, uh, they'll get 5,000,
00:06:51this is top of by the way, the $2 tariff
00:06:55rebates I'm still waiting for, uh, he's in the hole with
00:06:59me, Jeff, he's in the hole, he owes
00:07:02me, he owes everybody right, uncle Sam owes everybody,
00:07:06it's you know it's astronomical money, so I i thought this was
00:07:09really important, I know Brandon, you share this too, GOP midterm
00:07:13convention uh we heard that president Trump floated this idea of a
00:07:17$500 dividend payment, which even socialism
00:07:21when we do it, oh my god, even if you're republican, you got to say what
00:07:25the is going on here, right? grocery prices in the
00:07:29US are up 29% since 2019, not
00:07:325%, not 10%, 29%, but the bureau of
00:07:36labor statistics, food at home index, and the true figure is
00:07:40closer to a third, that is federal data, the receipt
00:07:44is public. US long-term
00:07:47unemployment is at crisis levels, the number of Americans
00:07:51unemployed for 27 plus weeks searched with more
00:07:55than 155,00 in August to
00:07:581.93 million, the fourth highest reading
00:08:02since December to 2021. As a percentage point
00:08:06of total unemployment, this metric rose
00:08:09by 1.5 percentage points. last month
00:08:13to 27%, the third highest since December
00:08:172021. long-term unemployment has now
00:08:20increased for more than three years. exon mobile
00:08:24has shut down one the largest diesel refineries in the
00:08:28mid-west, which produces 11 million gallons of gasoline
00:08:31and diesel (fuel per day) due to outage
00:08:35issues. this comes as diesel prices have already surged nearly
00:08:3990% this year, and the US has entered
00:08:42Diesel demand season, trucking, farming and the gas
00:08:46at the station all depend on diesel. Diesel is the economy,
00:08:50when it stops, the economy stops. Total economic
00:08:54collapse is fast and also
00:08:56approaching.
00:09:01Thank you very much for inviting me to your show, for inviting me
00:09:05to your
00:09:05show.
00:09:54The American system has become a system over the last
00:09:5740 years which has tilted uh economically
00:10:01towards the let's say the 1%
00:10:05the richest uh in the United States and even towards the
00:10:090.1%. So in reality it means that the
00:10:13numbers are actually very good, however this
00:10:17doesn't translate into additional purchasing
00:10:20power for americans, because real
00:10:23wages have actually stagnated for a long time
00:10:27and actually inflation has been
00:10:30relatively uh prominent and this means that
00:10:34actually average workers in the United States have had to take
00:10:37on more debt and this has of course also
00:10:41benefited very much big banks, so
00:10:44a way the American worker
00:10:48is worse off today than he was 50 years ago,
00:10:52even though technologically..." "the United States is
00:10:56moving on well, and even though even from the point of view of
00:11:00GDP, you will never see this kind
00:11:03of inequality in
00:11:07this kind of
00:11:07figure.
00:11:18In order to perceive the inequality, one cannot look at the GDP
00:11:22number, because that..." kind of inequality would be
00:11:26hidden, right? what we need to look at is the
00:11:30fact that the United States has become a financialized
00:11:33economy with lot the profits going to financial
00:11:37institutions and big banks and you
00:11:41remember also the consolidation that took place
00:11:45after the 2008- 2009
00:11:48economic recession, great economic
00:11:51recession, actually so many banks, thousands of banks. went
00:11:55bankrupt in the United States at that time, and there was a
00:11:59consolidation also in the banking industry where the five
00:12:02biggest and most powerful remained, and they
00:12:06were also the
00:12:07one that that were helped by the US government, so you can see a little bit
00:12:11what's going on here, and unfortunately the American worker has very
00:12:15little possibility to influence
00:12:18this this
00:12:20process.
00:12:27Meanwhile, the US president approval ratings are one the worst
00:12:31in the US history, for example, when it comes to the economy's
00:12:34condition, month to month favorability continues to
00:12:38drop. July registered 76% the
00:12:41respondents saying the economy was fair or poor, while only
00:12:4524% said that the economy was an excellent
00:12:49or good
00:12:50condition.
00:13:53On the one hand yes. the dead is very high, the dead is at
00:13:5740 trillion, and that is actually
00:14:00around 120% of
00:14:03GDP. now what we need to see is
00:14:07the the increase in the bond yields
00:14:11is is the reason for that
00:14:14is a higher risk perceived on
00:14:18American on the American government on American
00:14:21treasuries, and
00:14:23but but
00:14:24the but the fact is... but the it's not so much the size the
00:14:28debt itself, 40 trillion seems like
00:14:31lot, but the US economy is used right, so
00:14:34120% of GDP is
00:14:38actually not that high for economy, the size the
00:14:42United States and economy with this kind
00:14:46of leverage that the United States economy has with the
00:14:50help the
00:14:50dollar.
00:14:56"what is more disturbing for investors is the
00:15:00fact that uh basically um
00:15:03the deficit, the US deficit
00:15:05is um is not being
00:15:09is not being covered
00:15:11uh so the deficit is increasing and actually the the debt itself
00:15:15is also increasing right so it's not so much the fact that is 120%
00:15:19the GDP, it's more the fact that the debt is increasing a
00:15:23way that is perceived. to be without
00:15:27control, without control and even somehow
00:15:30pushed on by the executive, and the executive
00:15:34itself, basically the white house, should not be..." even in
00:15:38the US constitution should not be the soul you know
00:15:41uh decider of um the the the way that
00:15:45that
00:15:46moves.
00:16:06this is the inf. new section the program: Saudi oil output. Saudi
00:16:10oil output plunges to lowest since 1990.
00:16:14Saudi Arabia's crude oil production plunged by nearly
00:16:172 million barrels per day in August to its lowest
00:16:21level in over 35 years. The Iran war and the
00:16:25Yemeni Army campaign against the kingdom have a squeezed export
00:16:29roots as oil prices surge above $100
00:16:33per barrel. Bond markets, trouble brewing in
00:16:37global. bond markets, high and rising government debt levels
00:16:41pose a problem for bond markets, for which no solution
00:16:44seems imminent. yields and government bonds are around
00:16:48multi-decades high as investors cast a war
00:16:52eye on fiscal deficits and the renewed fighting
00:16:56in the West Asia region. US Canada crisis. Donald
00:16:59Trump says Canada becoming EU associate member
00:17:03could be hostile act. The US president threaten.
00:17:07tarifs and said the US could cut some trade with
00:17:11Europe over the proposed the status. Donald Trump dismissed the
00:17:15prospects of Canada joining the EU as laughable and
00:17:19call the US's northern neighbor terrible trade
00:17:22partner. Syrian fuel crisis. People don't have
00:17:25money. Syrian fuel hikes depen the economic
00:17:29pain, higher diesel and petrol prices are pushing up
00:17:33transport and food costs across an already imp.
00:17:37Overage Syria, sudden government decree drove
00:17:41diesel prices up by
00:17:4240%.
00:18:13This is the in-depth section the program. The US reports increases
00:18:16average US household income and a decrease in
00:18:20poverty, yet the general public is not buying it, since
00:18:24they don't see relief in their pockets, but rather a
00:18:28decrease in their purchasing power, including the ones who are in
00:18:32poverty. In this in-depth section we will try to explain
00:18:35the discrepancy.
00:18:45The situation in the US has reverted to pre-2008
00:18:49crisis conditions: 10-year bond yields have hit
00:18:524.963%.
00:18:5620 year yields have reached a
00:18:585.382%. 30 year yields
00:19:02have climbed to 5.350%.
00:19:06All the treasury. secretaries of Scott Beson's measured have hit
00:19:10a dead end, bond buyers are now demanding higher
00:19:13yields as the previous rates no longer make financial sense
00:19:17given how little they differ from the annual inflation rate,
00:19:21history shows that such conditions inevitably triggered two
00:19:25simultaneous events, recession and a stock market
00:19:29crash, guaranteeing a thrilling time ahead
00:19:33the orange head showman in the white house, this
00:19:36is what we are talking about when it comes to the 10-year bond
00:19:40yield, the 10-year treasury yield is its
00:19:43highest since 2007 and mortgage
00:19:47rates are back near 6.8% rising inflation
00:19:51and rising government debt are pushing up borrowing
00:19:55costs for everyone, this impacts things like credit
00:19:58cards, mortgage rates and loans like car
00:20:02loans. Donald Trump's achilles heel US
00:20:06gas price, they have hit It's 4.43 per
00:20:09gallon today, that is according to the national average
00:20:13of course, that's the highest level even for this point
00:20:16in September, another reminder that the inflation problem
00:20:20is far from over. Now on that point, let me bring in our
00:20:24guest Paulo, Batista Jr., former
00:20:28executive director at international monetary fund
00:20:32or the IMF, and he is also economist and author and he joins
00:20:35us, now um... Mr. Batista Jr., the question that I
00:20:39wanted to ask you is that we have the oil prices which are above
00:20:43$100 per barrel, record high diesel prices, which
00:20:47are above $6, and that is... the average
00:20:50inflation at least 140 um the basis
00:20:54point above the fets
00:20:562.0% target.
00:21:00the Iran war is also impacting the economy. hasn't Donald
00:21:04Trump realized how badly the US economy is
00:21:08being impacted by that war. Who knows what goes
00:21:11on
00:21:12in the mind of Donald Trump, but it should be obvious to him as it
00:21:16is to everybody else that the decision to attack Iran was
00:21:20major mistake, you see, I think one the reasons
00:21:24for this attack was that United States became
00:21:27overconfident after the success of its intervention in
00:21:31Venezuela, which was practically painless for the
00:21:35United States, now Iran is not Venezuela as we have
00:21:38seen, and this has
00:21:39destabilized the the the US as
00:21:43a military power, international markets for oil
00:21:47derivatives and other products and of course led to
00:21:51inflationary pressures in the US and other countries,
00:21:54so the inflation rate is now well above
00:21:57target, the target for the federal reserve is 2%, and
00:22:01inflation is considerably higher, as you noticed, as you
00:22:05mentioned in your question, so we have a situation where
00:22:09where the United States shot itself in the foot by
00:22:13attacking Iran, Iran responded
00:22:15by taking control the straight of all moves and this is
00:22:19had dramatic consequences for the supply of oil
00:22:23and other products. now, no wonder, the inflation is
00:22:27hitting new highs. this table outlines increases
00:22:30compared to 2019. overall inflation
00:22:34has had a 33.1% increase,
00:22:38diesel prices, which affects everything. american's
00:22:42buy is up 95% ground beef,
00:22:4563.6% increase, but housing experiencing
00:22:49a f 54.9% increase, on
00:22:53paper, the headline numbers look steller.
00:22:56Unemployment sits at a low of 4.1%. The stock market
00:23:00is ripping higher on the back of massive
00:23:04AI infrastructure spending and household networth recently hit
00:23:08a record of $186
00:23:11trillion dollars, but underground, everyday
00:23:15voters are feeling a completely different reality.
00:23:20mortgage rates are flirting with 7%, the
00:23:2310-year treasury yield broke 5% and an energy
00:23:27shock tie to the war with Iran has sent gas and
00:23:31diesel prices through the roof, high-end income
00:23:35shoppers are also feeling the pinch, they are the ones
00:23:39who are making over $100,000 per
00:23:42year, and enough there are a pressures are behind the
00:23:46scenes like tariffs, power hungry data centers.
00:23:50geopolitical turmoil, the last one is
00:23:54more pronounced these days due to the upcoming mid-term elections
00:23:58and the US war of aggression against
00:24:01Iran, the federal reserves interest rates
00:24:05increased has an anger the US president Donald Trump, this is an admission that
00:24:09inflation needs to be controlled, but it has also
00:24:12a downside, borrowing is going to
00:24:16be more expensive, credit will be coming a cost.
00:24:20which brings us to this paradox: a stronger
00:24:24economy with higher costs, the number look good,
00:24:28economy may look its as it is doing better, but
00:24:32higher cost prove otherwise. the democrats a
00:24:35predicted midterm focus is affordability at the
00:24:39table, mind the republicans pose a risk, one
00:24:43the which the voters vallet could decide the
00:24:46outcome of that thing. now let on that final point. uh let me
00:24:50bring in our other guess Finn Andoren, economist, political
00:24:54analyst and member the Mises Institute, the question that I had
00:24:58fin, American wages have fallen to 43%
00:25:01the national income, for every one dollar the US economy
00:25:05produces, workers are getting less of it than
00:25:09any point since 1929, we have the
00:25:13oil prices which are higher than $100 per barrel record,
00:25:17high diesel prices and inflation at at least uh
00:25:21has hit 140 basis points above the fed
00:25:252.0% target uh the question that
00:25:28I had is that the Iran war is impacting um the
00:25:32situation on the ground as we have been saying in this indeps section of
00:25:36our program, hasn't Donald Trump realized what this war
00:25:40is doing to his administration and his prospects in
00:25:44the midterm elections. Yes, of course, I think he has realized, but
00:25:48he doesn't want to admit it, but we need... to think about two things here: on the one
00:25:52hand, the US government doesn't always
00:25:55care so much about what the people
00:25:59think, they prefer to try to manipulate them '
00:26:03and what we need to understand is that the US government has foreign
00:26:06policy strategies and foreign policy
00:26:09initiatives which actually do not concern the people
00:26:13at all. most people in the United States don't even know where Iran
00:26:17is a map right? if you put map with Iran but
00:26:21without borders, very few are even able to to point out where
00:26:25Iran is located. so what we need to understand is
00:26:28that the strategic priorities, the geost.
00:26:32priorities the United States government, sometimes and
00:26:36even often, go above or
00:26:39Trump the interests the
00:26:43people, and this is also a very undemocratic,
00:26:46right, very undemocratic, but we all know that the federal government is
00:26:50very undemocratic
00:26:52and there is very little democracy in the selection the
00:26:56president and also the Congressman
00:26:59where money does more. than than votes
00:27:03in many cases, so so I think we need to we need to consider this
00:27:07point um
00:27:09and I think that that's was that what that was what I wanted to answer
00:27:13on this on this
00:27:14question.
00:27:40Brand crew toged a high of
00:27:42$104.90 Sunday night and was
00:27:45trading just below $103 at the time of
00:27:49publishing. The national average diesel price in the US has
00:27:53surged to record high of $6.51 cents
00:27:56per gallon. Farmers are confronting these record high
00:28:00fuel expenses at the the fall harvest
00:28:04season, according to the non-profit national energy assistance
00:28:08directors association, households that rely on
00:28:11heating oil are projected to face winter bills that are more
00:28:15than 31% higher than last year due to the
00:28:19parallel strain on distillet fuel stocks. now the question
00:28:22remains, is this sustainable for the American people? or is
00:28:26the war of aggression against iran sustainable? this is the
00:28:30website page of economic divide for. free to browse through all of our previous programs
00:28:34and tell us how you're doing. i'm and i'll see you next
00:28:37week.
00:29:59Your headlines on Press TV says the US will. never play a
00:30:03role in the management the straight offus and in case of intervention
00:30:07will be slapped hard in the face. the
00:30:10persian gulf straight authority warns all vessels against
00:30:14Hurmus transit through unauthorized routes saying the move
00:30:18will entil significant risks for ships and their
00:30:21owners. and's president says the
00:30:24US and Israel are root causes of instability in west Asia
00:30:28and are actively supporting terrorists while accusing Iran of terrorism.