China’s rare ‘weapon’ could sink US economy



from the national headquarters of RNC America here in our nation's capital hello again everybody I'm Rick Sanchez the question it almost feels like we have to begin our newscast with tonight is this are we due for another recession that question is salient today more than ever because it seems everywhere people seem to be talking about the signals which is the economic lingo for this as the indicators that seem to be screaming for attention on this day so let's give them the attention they seem to be screaming for right let's begin with the stock market let's look at this the Dow at a three-month low today and for the month it's been down consistently by about 1,000 points what else is down world currencies world currencies 80% of the world's 143 currencies have fallen in value this year so far but here's the big one that has everybody all shook up today the bond market has investors kind of freaked out why because the US 10-year Treasury yield hit a 20 month low and it was surpassed by the three-month Treasury bill I know too many of you that may sound like gobbledygook so here let me try and break it down for you and try and explain to you what this really means what this means is that investors have some confidence in the next three months but not a lot of confidence in the next 10 years ouch let me say that again they seem to have a lot of confidence in the next three months but not a lot of confidence in the next 10 years that's what we learned today so what I just outlined for you is what you're going to read in most of your newspapers or see on CNN or CNBC or the BBC basics write what everybody was reporting on today what reporters were pointing to the Dow the currencies the bonds and saying oh wow look could be a recession coming but that's not really how it works folks because see if everybody's talking about it as they say in the south that ain't what's gonna get you right if you see the snake the snake won't bite you why because markets and people adjust what gets you is what you don't see coming more often than not maybe from as far away as China for example and that is where we're gonna be talking about with our teas Christy I hear on the news with Rick Sanchez where we do believe it is time to do news again okay so we're gonna begin tonight with a very spooked market and fears of what could turn into a global recession the spooky part is what the numbers seem to be saying but if everybody's looking at the same numbers they likely won't catch anybody by surprise right usually it's what we don't see coming that effects us for example in my book conventional idiocy I detailed how credit default swaps caused the 2008 meltdown because most people didn't even know what the hell they were so it kind of by surprise right so now we ask the same question what what could be the potential trigger like the credit default swaps may have been back in 2008 that can kind of bite us this time around joining us now is Artie boom bust hos Christie eye who's good enough to share some of her wisdom with us on this first of all do you agree with my assessment about that these indicators that we just talked about that everybody's been big on all day they've been the headline and every story that they aren't necessarily what's going to be the problem right exactly I think the fears of the indicators are a little bit overblown because let's not forget these indicators are actually there because that's what traders actually did that's a reflection of actual trader behavior of them do you leveraging from the market and actually switching to a more conservative approach the market there D risky and deleveraging because they're cautious so in any case they're trying in actuality they're actually preventing a recession from happening by taking capital out of the market they're bailing out of the boat because they see the waters coming over for it exactly and because they're failing then the water won't go overboard so that's the so that's what's not what people aren't seeing you seem to think that what probably could get us or bite us in the behind as I like to say using the southern refrains is the possibility of some kind of tech war now more than ever explain that to us exactly because the recession doesn't just pop out of nowhere it needs something to cause it there has to be some sort of catalyst a spark to cause the perfect storm and right now it seems like the perfect storm could be when the trade war gets escalated and right now we seem to be in an escalation phase there are Bluffs on both sides both sides are threatening each other China threatened the u.s. that they would reduce their exports of rare earth minerals the u.s. threatened to claim that they are interfering with monetary policy and manipulating the currency so those are both threats what happens when those threats actually become actionable reactions to the market so there's a huge difference and you say the trend has been more of a bluff scenario and now what you see coming is we're moving into the non bluff scenario actions exactly and when them when you see the markets been spooked this much simply from the two sides calling each other out on their Bluffs and just talking about potential threats what would happen when they actually start going going and implementing those threats you were the first to go on the air and everybody has since been running this story when you came on this show as a matter of fact sometime last week I believe and you mentioned rare earth minerals China could somehow withhold those rare earth minerals which could cause chaos economically explain that once more so China actually already did this back in 2010 and when they did that to omit it mitigated about 40% of exports to Japan they actually stagnated the entire tech economy for up for about five years and that actually halted a lot of development us right now is known for actually dry is the driving force behind new technology and so without this supply of rare earth minerals this could told him put a dent on the high-tech industry which as we said has been pretty much fueling this entire bull market the u.s. is driven by biotech health care and pretty much a tech sector if we take out tech and biotech then what's left to drive the US market and interestingly enough China has dominion of these rare earth minerals right something like 80 or 90 percent the world's 95 percent of the world's rare earth metals and US claims 80% of those exports that is really something to follow that's amazing cristy fantastic thanks for giving us this diagnosis I think it may a lot of people understand this a whole lot better we're happy to have you thanks again Thank You Roxanne Chaz you found us on YouTube and that's awesome but you know what I'm also live every night at 7 and 8 p.m. Eastern on DirecTV and Dish and cable and satellite the RT app oh and Pluto TV I'll see you there




Comments
  1. OMG how many episodes can we have on the "fall" of the US dollar.

    This has been predicted to occur within 20 years for last 60 years lol..

    It's old, can we find something else that might actually happen?

  2. Hi Rick Sanchez, here's more info for you. Malaysia may have some things that the US needs, viz

    (a)Sizable amounts of rare earths, at least in 2 location ie in the States of Pahang and Perak, the former contains Australia's Lynas plant while the latter, the defunct Asian Rare Earths (ARE) mine/plant. {The ARE mine was reputedly the cause of cancer, chiefly leukaemia in the periphery of the mine/plant},

    (b)Besides engineers in India, Malaysia also has engineers who can design high tech microchips. The miniaturization of the ATUR phones into 1G phones were achieved by engineers based at the Motorola plant in the State of Penang in an industrial estate known as Silicon Valley of the East. However, to date these talented engineers (mostly in their 60's) have not offered their services to any entity.

    Please google the above for your next broadcast.

    I salute your journalism standards which have the 4 C's — Clear yet Concise, Crisp and Comprehensive.

    Best regards and keep the unbiased news coming.

  3. Too bad, you made Venezuela you're enemy too.
    They would have sold you ”rear earth minerals” as well.
    But not anymore.

  4. Petro dollar, rare earth,T Bonds are US's archilles heel. Can we see Trump and his hawkish advisers esp Navorro and over confident academics, smug newscasters ;like Cramer keep singing they are winning and still winning in this trade war?

  5. How come Russia ( Putin) sponsors this channel, but USA doesn't sponsor news station with Russian speaking commentator
    This is an ultimate troll move on behalf of Russians and Chinese.
    Most Russians and Chinese don't speak English so they can manipulate their people, not allowing news like their country

  6. Looks like US won again with this pika boo game, they need a war to boost their economy, and this will trigger it sooner or later. Unfortunately this will affect the other countries harder then 2008 economic crisis.

  7. USA economy won’t sink on President Trump watch, but will sink with democrats communist policies whos only hope to fix it is a magic wand.

  8. Recession is only in crown Slaves theory land SLAVES RACIST HYPOCRISY. Mentally disabilities monkeys economic oil and u.s dollar hatch funding is SLAVERY earth COMMUNIST in economic.

  9. It is amazing how dependent Freemasons have become, for all their arrogant stupidity. Praying to the Devil didn't really yield the results they hoped for. Lol.

  10. stupid americans those ugly slanted eyed chinnnkkkss are the ones who copied your products if your stock market cant recognize that then your in big trouble your being decieved.

  11. BRINGIT YOU FUUUUUUUKIN COMMUNIST….ALL WE NEED TO DO IS BLOW BOTH OF YOUR DAMS,QND YOUR DONE….YOU'LL BE FLOODED OUT LIKE NO OTHER

  12. trillions upon trillions in debt does a country have a economy ? thats not a economy its a fcuked economy with a heading capitalism is a system that is not working at all

  13. Trump is CREATING a recession with this unnecessary WAR. HE'S going to cry for more money, more money, more money. While destroying this country. There's a national SCHEDULE of atrocities for presidential world leaders. They really need to vote to change it. To do good and not evil.

  14. Another wolf waiting to bight us in the butt is Iran. They WILL NOT THEY CAN NOT ALLOW AMERICA TO TO PREVENT THEM FROM DOING ANY TRADE AT ALL. That is clearly an act of war and Iran will never allow America to force it to give up its non nuclear weapons which is what Trump has demanded. They have both Israel and Saudi Arabia which would attack the moment Iran gave up its weapons so Iran will be left with no choice but to destroy the oil fields and transit routs that would leave the world in a real crisis

  15. Fine by me. Let them keep their rare earth minerals. It'll be bad at first, but we'll find another way to do the things we need. The American industry and the market has been known to do this time and time again. Adapt or die.

  16. Possibly the dumbest opening YouTube video statement. If we go under….so does China. We buy more than everybody else combined. They will do anything to keep us buying their goods. You don’t sabotage your best customer….you work it out.
    Moronic!

  17. Rico is a stinkin' communist .
    Rico, bonds are not the bonds you know. US dollar is gonna jump in value. No more bonds are issued .
    A good communist like Rico is uneducated.

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