Episode Transcript
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Speaker 1 (00:09):
Okay, let's talk about economic collapses. Really it's national collapses,
but we'll focus kind of on the economic end of
it for a moment. Because one of the reasons I
talk about this issue, you should know, I talk about
this issue a lot. I talk about this issue because
I love history. I'm a history freak. I can't help it.
(00:29):
I'm a history freak. I love it.
Speaker 2 (00:31):
And one thing I see consistently over and over and
over and over.
Speaker 1 (00:36):
Again as you read about these amazing civilizations, powerful civilizations,
one of the factors and oftentimes the main factor that
brings them down.
Speaker 2 (00:49):
It's debt. Money.
Speaker 1 (00:52):
It's not a sexy topic to talk about, especially because
numbers are so nerdy, and now when we discuss our
national debt and things like that, it's so big. But
there are two things that consistently end nations and can
end nations of any size. It doesn't matter how big
and powerful your country is. Illegal immigration and mass and debt.
(01:13):
Those two things it can sink your ship. It doesn't
matter how big your ship is. And again, you know,
I'm not Johnny come lately. I've been talking about this
for years. The GOP lined up for the last four years,
four years and voted yes, and voted yes, and voted yes,
and voted yes on multiple massive spending bills.
Speaker 2 (01:37):
Truth is, no one cares.
Speaker 1 (01:39):
Then no one's gonna care until the whole house of
cards come crashing down and everyone's gonna look around and
they're gonna say, well, how this happened, How this happened. Well,
here's the hard truth of it. Talk about making you uncomfortable,
here's the heart truth of it. When that happens, you
and I will both have to go look in the
mirror and say, that's on me. I never demanded better,
(02:02):
so I never got better. You get what you get.
Don't throw a fit. Now, let's discuss that aspect of it.
I can't believe how much hair I.
Speaker 2 (02:14):
Used to have.
Speaker 1 (02:14):
We're gonna have to, Matt, don't play any more of
those older eclips. That's my producer, Matt. Anyway, Why is
it on us? Well, here's the truth. When I talk
to senators and congressmen in Washington, DC about spending, they will,
oftentimes almost every time, so they only talk to the
ones I like, they will agree with me. You can't
(02:35):
spend like this, you can't run deficits like this, you
can't do it, it'll.
Speaker 2 (02:39):
End the country. It or end the country.
Speaker 1 (02:40):
Everything I just said to you, everything we've talked about.
You and I they agree. It's not like I could
sit down with these people and they say, no, Jesse,
that's fine, No, it's no big deal. They know, they
know the history, they know the history of the world.
They understand how this works. And so that's the moment
where I say, well, Okay, why don't you do something
about it? I just said it's you agree it's a problem.
(03:01):
Why aren't you doing something about it? And they say, Jesse,
the voters don't care. The American people don't care. So
there's no incentive for anyone Democrat, Republican or not to
actually cut spend it. And why don't the voters care. Well,
(03:23):
here's the truth. The American people, because of our communist
education system, have been so dumbed down to basic civics
in economics and how things work that they don't make
the connection between the slow, steady degradation of their way
of living and the spending in Washington, d C.
Speaker 2 (03:46):
I know you already make that connection.
Speaker 1 (03:48):
So I'm preaching at the choir here, but for the
average American, and I'm not talking about just the every
day more on lib Your neighbor, your friend shares your values,
you watch football together.
Speaker 2 (04:00):
He loves his family. When he sees Washington, d c.
Speaker 1 (04:05):
Republicans and Democrats join together to pass another trillion dollar bill,
he doesn't make the connection between that and the fact
Americans now can't afford groceries.
Speaker 3 (04:18):
We need someone in our presidency who can make this
America work for the working man. It's really looking critical
right now where I don't even know if my grandchildren
are going to have a future with this country.
Speaker 1 (04:30):
Some of these big breakfasts of omelets and pancakes can
cost less than ten bucks.
Speaker 2 (04:36):
And that's what brings in Devada Allison, who's worried about inflation.
Speaker 4 (04:40):
Groceries that used to cost me two hundred dollars a
couple of years ago, for four or five years ago.
I mean, I'm spending five hundred dollars at.
Speaker 2 (04:47):
The grocery store right now.
Speaker 4 (04:48):
That's gonna be my biggest deciding factors. Give me your answers,
what are your solutions? Because I don't want promises and
broken promises.
Speaker 1 (04:56):
Right I'm heart goes out to those gentlemen. Do you
want to hear the solution. Are you ready for this?
It's gonna be a long special, but there's gonna be
some hard truths in this special. Or are you ready
for the solution? Because everyone right now talking about inflation.
Obviously people are suffering. You just heard it can't make
ends me and I'm worried about my kids and worried
(05:17):
about my grandkids.
Speaker 2 (05:19):
I want to hear your solution. We have to cut everything.
Speaker 1 (05:27):
Everything, Well, Jesse, we can't cut a fill.
Speaker 2 (05:29):
In the blank whatever. I know.
Speaker 1 (05:31):
That's instinctively where people go, they'll pick their thing.
Speaker 2 (05:35):
The federal government does.
Speaker 1 (05:36):
Maybe it's the thing they love or the thing they're
dependent on, it doesn't matter where it is. But the
entire bloated federal budget, they'll find their thing and they'll
grab a hold of it. When you talk about cutting spending,
and they'll say, yeah, cut everything, just not this. I
don't know what thing you just grabbed a hold of
and tried to cover up when.
Speaker 2 (05:54):
I said that, But it has to be cut.
Speaker 1 (05:56):
Two, because right now we are thirty five million dollars
in debt.
Speaker 2 (06:02):
Are debt to GDP ratio.
Speaker 1 (06:04):
They say it's one hundred percent, it's one hundred and
twenty it's plus that we are spending as if we
are in a world war and yet we are in peacetime.
That will bring about inflation and economic collapse. The only
way to stop out of control inflation is Washington d C.
(06:25):
Stopping the amount of spending they do. Now, go look
at the federal budget, every single slice of it, even
the ones you love. It has to be cut. And
I don't love that either. Look, there are things that
I love me. I love the military. I'm a dude.
(06:45):
I can't help it. Since I was a kid, I
wanted the Lego Set. I never got one of those,
but I wanted that big You ever see that big
aircraft carrier Lego Set.
Speaker 2 (06:55):
I wanted it.
Speaker 1 (06:55):
I'd play with g I Joe's fighter jets and stuff.
It's part of the reason I joined the Marine Corps.
I want to see guns and bombs and planes in
I love the military, and I know as a country
it's really important for us to have things like a
strong navy. As much as that pains me to say,
we have two huge oceans. We need a big, powerful,
(07:16):
technologically advanced navy.
Speaker 2 (07:18):
We don't have the money.
Speaker 1 (07:19):
I'm sorry, military too got to be cut, and the
people who are angry about inflation, which is pretty much
all of us at this point in time. What percentage
of those people understand that that's the only solution, the
only solution. Sure, you can grow the economy and that
(07:39):
will help, but you can't grow your way out of
thirty five trillion dollars in debt. You can't grow your
way out of two trillion dollar.
Speaker 2 (07:50):
Deficits every year. You can't.
Speaker 1 (07:52):
And that growth only comes with Trump, if God forbid,
Kamala Harris wins the election. Do you have any idea
what things like this will.
Speaker 5 (08:01):
Do and how do you find that line to make
sure corporations are paying their fair share but they're not
leaving our country. Well, listen, I work with a lot
of CEOs. I have spent a lot of time with CEOs,
and I'm going to tell you that the business leaders
who are actually part of the engine of America's economy
agree that people should pay their fair share.
Speaker 2 (08:24):
They also agree that.
Speaker 5 (08:26):
When we look at a plan such as mine that
is about investing in the middle class, investing in new industries,
investing in bringing down costs, invest in entrepreneurs like small businesses,
that the overall economy is stronger and everyone benefits.
Speaker 1 (08:45):
Whatever economic disaster is coming our way, and there is
one coming, it can't be stopped. People will get here
much sooner and be so much more severe if that
woman gets into office. But let's not focus only on
Democrats here. I don't do that, will do that. The
truth is, Republicans spend too much money. Every single one
of them does well at least all the presidents have
(09:08):
in almost all the ones in the Senate and the House,
even ones we love, even sacred ones to Republicans. Ronald
Reagan spent too much money. Bill Clinton spent too much money.
Barack Obama spent too much money. George Bush one spent
too much money. George Bush two spent too much money.
Trump himself spent more money than any other president in
the history of mankind in his four years.
Speaker 2 (09:29):
We cannot continue this.
Speaker 1 (09:30):
Mitch McConnell, the most powerful Republican in DC, brags about
all the money of yours he's spent.
Speaker 6 (09:37):
So Admittedly, I'm pretty proud of the fact that whether
democratic president, Democratic House, and Democratic Senate, we were able
to achieve through this omnious spending bill, essentially all of
our priorities.
Speaker 1 (10:00):
Doesn't that kind of sum it up, we were able
to achieve all of our priorities.
Speaker 2 (10:07):
Well, that begs the question. It's a trillion dollar spending bill.
Speaker 1 (10:11):
That was Mitch McConnell after he passed a trillion dollar
omnibus bill in a lame duck Congress. It's a trillion
dollar spending bill accomplished all of your objectives. But what
are your objectives then? Because my objective is to preserve
the way of life that I've known for my children
and their children after them, and their children after them.
(10:32):
That's my objective. And that's why I know spending must
be cut. If you just spend a trillion dollars, we
don't have of government goodies and handouts to this person,
that person, this entity, this country, this Well, that says
all you need to know about your objective. We have
to get the GOP in line, too. But to get
the GOP in line, back to what we said, you
(10:55):
have to get the American people in line. You have
to connect those dots for them. Every single time Washington
d c. Passes a bill to spend your money, your
groceries get more expensive every single time.
Speaker 2 (11:10):
We have to hammer that point home over and over
and over. Again.
Speaker 1 (11:14):
And I talked earlier about the cuts that are coming,
the cuts that are necessary. Don't think that's just me rabbit,
anti communist barbarian Jesse.
Speaker 2 (11:22):
We had Senator Ran Paul on this show. He laid
it out for you as clear as day. You think
you know more than rand.
Speaker 7 (11:29):
And it's not that I want to have reforms. It's
that if we don't have the reforms, there will be
no Social Security for the next generation, and there will
be no Medicare, and it's going to happen pretty quickly
within the next couple of years. The people who live
on the basic smallest amount of Social Security, which I
believe is around seven hundred dollars a month, those people
will get a twenty percent cut in their Social Security
(11:50):
unless we reform it.
Speaker 2 (11:52):
So you have to reform it, Jesse.
Speaker 1 (11:56):
I don't want to cut You can't cut mite, whatever
it may be. You don't understand. I don't want to
take anything away from you. I'm trying to save the
United States of America. Massive reforms are necessary. We protect
the people. We have to protect the ones who are
trying to keep the lights on, keep food on the table.
(12:17):
But while doing that, it is time to carve through
the federal budget like it's Thanksgiving and there's a turkey
in front of you, and you have that electric cutting knife,
which is really cool. By the way, it's the only
way to save this country. It's the only way to
save our way of life. Your life is more expensive
(12:37):
because of Washington spending. Your life is more expensive because
of Washington spending. Repeat those words over and over and
over and over again to every single person you know.
When you're a Democrat, republican independent, friend compare or complains
about the price of anything in his life, repeat those
(12:58):
words to him or her until they finally understand.
Speaker 2 (13:02):
And then maybe, just maybe.
Speaker 1 (13:04):
We will begin electing people who will make the tough
choices to begin cutting all that may have made you uncomfortable,
but I am right, Carol Roth is going to talk
about our debt to GDP and so much else extent. Well,
(13:32):
with all this sunny economic news, it's probably a good
time to bring up the fact that our debt to
GDP is now one hundred percent. In case you're wondering
when the last time that happened was, it was World
War Two. So as I have explained to you many
many times, and as Carol has as well. We are
a nation currently in peacetime without some major national disaster,
(13:58):
without any of these things, and we are spending as
if we're a country fighting in apocalyptic world war.
Speaker 2 (14:07):
What does that mean? Well, it means this can't go on.
Speaker 1 (14:11):
As that saying goes, that which cannot go on will
not go on.
Speaker 2 (14:14):
This will not go on.
Speaker 1 (14:15):
Joining me now, author of the book, you will own nothing.
Speaker 2 (14:19):
Which is sadly apropos for where we are.
Speaker 1 (14:21):
Carol Roth, Carol, okay, you say debt to GDP.
Speaker 2 (14:25):
Is one hundred percent.
Speaker 1 (14:27):
That doesn't really register though it sounds like a bunch
of eco nerd talk.
Speaker 2 (14:31):
What does that mean?
Speaker 8 (14:33):
I actually say debt to GDP is north of one
hundred and twenty percent.
Speaker 9 (14:37):
They where are we getting that number from?
Speaker 8 (14:39):
May actually be backing out some of the intergovernmental spending,
but we still owe it in one way, shape or form,
so I'm not going to back it out. Basically, if
you think about the amount of debt to the entire
output of the country, the benchmark that whether it's the
Treasury or the IMF where they say that that becomes
(15:00):
unwield is around sixty maybe seventy percent. Debt to GDP,
so we are functionally two times as high as we
should be, and normally, in a country that had debt
to GDP at this level, you probably see some sort
of sovereign wealth crisis and you know, some massive implosion
(15:22):
because we have the world's reserve currency and the world's
trading currency.
Speaker 9 (15:26):
That hasn't happened yet.
Speaker 8 (15:27):
But people like to take the fact that it hasn't
happened and then say that, well, that sort of proof
that it will never happen, And that just isn't the case. Everybody,
the IMF, the CBO, the Treasury, the FED, Jamie Diamond, billionaires,
everybody said this is an unsustainable fiscal path. But what
they don't like to say, Jesse, is Okay, it's an
(15:49):
unsustainable fiscal path.
Speaker 9 (15:51):
What are we going to do to fix it?
Speaker 8 (15:53):
And if we have the ability to fix it, do
we really have the political will.
Speaker 9 (15:58):
To fix it?
Speaker 8 (15:59):
And I think that is the discussion point that needs
to be had. Do we really believe if we're able
to thread this very delicate needle in terms of growing
the economy, reducing some of the government spending, and trying
to do that in a way that doesn't cause inflation
or doesn't have any other side implications. Does anybody have
(16:22):
the political will or the competence to get that done?
Speaker 1 (16:27):
Okay, well no, Obviously if the answer that question is no,
not to put too fine a point on it. So
since the answer to that question is no, the Democrats
want the country to collapse, the Republicans don't have the
guts to stop it, where are we going?
Speaker 2 (16:42):
So?
Speaker 8 (16:42):
I wish I had the crystal ball that could perfectly
predict the timing, that could perfectly predict the path.
Speaker 9 (16:50):
All we have are these rhyming benchmarks.
Speaker 8 (16:52):
What has happened in other countries when this has happened previously.
One of the things that happens anytime there is a
big financial seed change tends to be.
Speaker 9 (17:02):
A massive war.
Speaker 10 (17:03):
You know.
Speaker 8 (17:03):
That's what happened to England before us and the Dutch
before the English is that's what encountered the financial seed
change and was sort of this last ditch effort to
try to figure out how we're going to have some
sort of resetting of the financial stakes. And I think
that is realistically one of the things on the table.
(17:23):
Another thing that is on the table is something that
we have been seeing over the last few years, which
is just rampant inflation.
Speaker 9 (17:31):
Right, We've seen that over and over again.
Speaker 8 (17:33):
And instead of letting the economy go through the recession
that should have happened from the bad fiscal and monetary policy,
they said, we can't show that. We can't have that,
So we're just going to keep spending more. On a
headline basis, it's going to look like we're doing great.
We're going to put more money into the economy, and
(17:54):
basically just to value everybody's purchasing power, because what happens
when you create inlation is it's better for the debt holders,
right that the nominal value of all of dollars goes down.
Speaker 9 (18:06):
So if you're holding.
Speaker 8 (18:07):
Debt, the actual value of that is going down on
a relative basis, but it's not good for the people
who are trying to earn and try to purchase. So
I think that is the most likely path. Yes, if
you have, you know, a certain set of people in
charge versus other people in charge, maybe you have a
little bit of an opportunity for more growth. Maybe they're
(18:30):
going to reign and spending a little bit. But as
you said, they're not going to have the political will
to do the difficult things so I think that means
buckle up. You're going to see a resurgence of more
and more inflation. It's going to be harder for the
middle and working class to get ahead. The people who
are on top, who are holding the assets, you know,
(18:50):
the elite, the well connected, will appear to do well
because their stockholdings will increase from a number's basis, and
their houses will increase from a number basis, and you
will end up having, you know, more of a chasm
on a non merit base, for non merit based reasons,
between the haves and have nots. And I know you're
(19:11):
a better student of history that I am, Jesse, but
you know what happens when you have that huge chasm
between the haves and the have nots, and what that
means for social unrest. So whether we get the social
unrest just within the country or that's something that catches
on globally, I think that's a realistic possibility. I wish
I could tell you when this could go on for
(19:34):
ten months, it could go on for five years, it
could go on for twenty years. I don't have the answer,
but we can see that trajectory, and all we can
do is plan which is why I wrote you will
own nothing and encourage people, if possible, to try to
own something that will have the opportunity to inflate in
value while you have your purchasing power continually stolen from you.
Speaker 1 (20:00):
Kroll, I'm glad you brought up the global consequences in
global nature this because for better and worse, we are
a global economy now, we have been for quite some time.
And when you know things, when you look into things
historically like the Great Depression, you realize this was not
an American thing. This was a worldwide thing. So who
(20:23):
leads the world into the next depression?
Speaker 2 (20:25):
Do we lead it?
Speaker 1 (20:27):
Or does the world go into it and drag us
with them?
Speaker 9 (20:30):
No, one hundred percent. We're the leader.
Speaker 8 (20:32):
We're the world's reserve currency and trading currency. The call, unfortunately,
is coming, you know, from Washington, d C.
Speaker 9 (20:39):
It's coming from inside the house. As we go, the
rest of the world goes.
Speaker 8 (20:43):
If things happen in other countries, you know, it may
have some impact on us, but it's certainly not going
to have that blowback. But the challenges as we implode,
everybody else is going to implode. And that's why that
scariness of you know, potential world war to create sort
of the backdrop for some you know coming together and
(21:04):
you know, a new accord, a new financial reset, you know,
is I hate to say it, but it is a
very realistic possibility. It's not certainly one that I am
hoping for or wishing for. But to say that that's
not something that would be on the table, I think
it is silly. I think it's also one of the
reasons why you're seeing as central banks around the world
(21:26):
get rid of their holdings of US treasuries. They're not
going into some other currency. They're not saying, oh, well,
you know, this country is a much much better option,
or let's you know, let's go with the euro or whatnot.
They're going to gold, and you know that has been
part of you know, many financial resets in the past.
It is a neutral ish reserve currency. You know that
(21:50):
each of these countries are now stockpiling in different amounts,
and we're seeing more and more of these countries add
that to their reserves. So you know, that's something you
need to keep an eye on. And what are they
telling us, what are they signaling, what are they worried about?
And it's not just lessening the dependence on the United
States dollar because they don't like the United States and
(22:13):
they're trying to stick it to us. They're really worried
that if something happens, they want to be able to
have something, something that's tangible that they can use when
everybody goes and you know, tries to divvy up the stakes,
you know, in a new financial world order, you know,
who gets what? At least they say, well, we have
this pot pot of gold, and you have this, so.
Speaker 9 (22:33):
We all have this. Maybe we can figure out something.
Speaker 11 (22:35):
With that.
Speaker 1 (22:37):
Art assets. How about that? Kill Roth. Everybody appreciate you, Carol.
All right, Tiana low Dresser is going to join us next.
(23:01):
See what is your kind of your economic plan moving
forward for people who are living paycheck to paycheck and
struggling for groceries and rent and homeowners.
Speaker 5 (23:11):
So look, I grew up, so my sister and I
were raised by our mother. We lived for a long
time in an apartment on top of a childcare center.
I from a child, knew who our small business owners are, right.
I mean, you're business leaders, but you're also civic leaders.
You take seriously your voice and how you can mentor
(23:33):
how you can grow, right, communities and the sense of communities.
I love our small businesses. So a lot of my work,
even in the Senate, was about increasing access to capital
through our small businesses, and in particular through our community banks.
So I've been responsible for billions of dollars more now
going into our community banks because they're in the community,
(23:54):
and then they know who's in the community, and where
the town is, and who's doing good in the community,
what the community wants.
Speaker 2 (24:04):
I'm just so confused.
Speaker 1 (24:06):
Joining me now, my friend Sian lodsher columnists with the
Washington Examiner to make us smarter economically. All right, Tiana,
as you know, I'm stupid and uneducated, So could you
please explain to me what she just said there.
Speaker 12 (24:21):
I don't think she knows what she just said there.
It's emotional support economics. Look, when she thinks about people
complaining about grocery prices, she's been visioning the Brentwood Country
farmers market. You know, people with their designer groceries getting organic,
this farmed a table bat. That's not the reality for
the average American. The average American is getting their groceries
(24:42):
from a grocery store that is a big block chain
that has about a one to two percent profit margin,
smaller than almost any other industry right, and food prices
have moved on par with overall prices about twenty percent
since since Joe Biden Kamala Harris took office. It's everything
else that's gotten even more expensive, service prices housing all
(25:03):
of that, and she has no answers for that. Casey Mulligan,
the economists from University of Chicago did a study that
found the majority of the excess inflation that we've had
in the past four years was stoked by the two
tie breaking votes that Harris casts as President of the
Senate for the two trillion dollar American Rescue Plan and
(25:24):
then the one point three trillion dollar Inflation Reduction Act,
which as we know, did nothing of the sort. In
terms of what she wants to do to fix it,
she wants to come down on the grocery stores, which again,
would we've established have got a one to two percent
profit margin, and en scene, that's it. There is no vote.
Speaker 1 (25:51):
And still I'm flabbergasted by that number. And I know
that number. I can't believe there's any industry anywhere that
runs on a one to two percent profit margin.
Speaker 2 (26:02):
That just floors me, it absolutely blows me away.
Speaker 1 (26:04):
But anyway, that's not that's not major on the minor here,
it's Gianna. I try to not think about this. I
try to not think about how completely screwed we are
economically if she wins, because you know me, I think
we're screwed anyway. I don't think there's anything that can
stop a thirty five trillion dollar debt train. But gosh,
are we turbo screwed if that woman wins?
Speaker 2 (26:25):
Right?
Speaker 12 (26:27):
Yeah, Because the issue with inflation is that it's cumulative.
Speaker 9 (26:30):
Right.
Speaker 12 (26:31):
You don't want to have.
Speaker 13 (26:32):
Deflation, because deflation really screws with the economy and it's
usually associated with dramatic real economic losses, massive unemployment, great
depression style deflation, right, And we don't want to have
actual disinflation. What we do want is inflation to stop
increasing or you know, stabilize at that one percent rate
(26:54):
it was at when you know Donald Trump left.
Speaker 12 (26:56):
Office, and then you want to have a bunch of
economic growth make up the gap. Donald Trump is a
spending issue. Donald Trump has no real plans to cut spending. However,
he's good on growth. So what you can do if
you don't dramatically increase the spending if you deregulate the economy. Right,
Trump was the first president in you know, fifteen years
(27:18):
that actually saved money with regulatory policy rather than add
on to the deficit. Even George W. Bush wasn't good
about this. The last person that did this even kind
of was Bill Clinton. Donald Trump actually wound up saving
a bunch of tax paramoney through deregulatory policy because you
get more economic growth and that increases the tax base. Look,
you would think with what everyone on the lat says
(27:40):
about the Tax Cuts and Jobs Act, that we would
have a tax revenue issue, but we don't. Tax revenue
was up eleven percent this fiscal year last fiscal year
to this fiscal year, with corporate tax revenue up twenty
nine percent. And that's with the Trump tax cuts, right,
the evil corporate tax cut give a is still in effect.
(28:01):
We are getting more tax revenue overall, and more corporate
tax revenue than we ever have in this country's history.
The issue is the spending. So on the one hand,
you can have growth and that helps offset some of
it because we know the lack of curve is a thing.
We know we need more economic growth. The better, it's
better for you, it's better for me, it's better for
our neighbor's jobs. It's also good for the tax base.
(28:22):
But on the spending element, the issue with Harris is
you aren't going to get any more of the deregulatory
policy because you've already seen what she wants to do
deregulatory wise, plus with more spending. You and I both
at least understand supply and demand. So if we have
a housing crisis right now, which we do, we have
way too few homes because the Fed kept interest rates
at zero for fourteen years. The solution is not to
(28:46):
throw money at the consumer. The demand is already there.
The solution is to build the houses.
Speaker 1 (28:53):
Tianna, can you explain for will sidestep Kamala and for
a few moments, can you explain and why deflation is
bad because people see their dollar hasn't gone as far
obviously because we've had inflation, and people want it to
go back. They want it to deflate. But you say
it's bad, and you're correct about that, but people don't
(29:15):
understand why.
Speaker 2 (29:15):
Can you please explain why?
Speaker 12 (29:18):
So let's just say you are buying a big durable good,
something like a refrigerator or a television, something you don't
buy regularly. If you have money for it, you don't
need to, you know, take it a loan, but it
is a bigger expense. And if you think that the
price of consumer electronics are going down five percent every
single month, and remember we've had consumer spending categories where
(29:40):
they have increased by multiple percentage points in a month
under this inflation, let's reverse it. Let's say TVs are
going down in price five percent every single month. Everyone's
not going to spend their money. And you don't want
to bring the economy to a wholet. You don't want
you don't want everyone just holding on to their dollars indefinitely.
It's different if you're invest if you are investing it
(30:01):
in the stock market, if you're investing it in you know,
small businesses, if you're investing it in bonds, that's different.
That helps fuel economic growth, but the incentive structure is
removed in a radically deflationary environment.
Speaker 1 (30:16):
You want.
Speaker 12 (30:17):
There's a reason why the one to two percent inflation,
which is the Federal Reserve target. It's what we had
for four years from twenty seventeen through twenty twenty, including
through COVID. We had that very minimal stable expected inflation.
So for instance, an employer knows I'm going to get
a two percent cost of living adjustment in this normal environment,
(30:40):
and hopefully economic growth means that can give more performance
based radways. That doesn't happen when you don't know what's
going to happen to price stability. And it's why the
goal for the FED isn't no inflation, price stability. It
makes it so much easier for you know, the folks
in charge of companies and factories and the big physical
(31:02):
elements of the economy than we could be prepared.
Speaker 1 (31:06):
Sanna, how did the Democrats like Kamala Harris, how did
they become the party of big business? Because they very
much are obviously they sell themselves as being for the
little guy and the poor man. But all the major
fortune five hundred companies, not all of them, but pretty
much all of them are run by filthy e commies
who support Democrats. Now, when and how exactly did that happen?
Speaker 12 (31:29):
There's obviously been the polarization from what we could just
call the expert class. The reason why you had a
bunch of economists where that doing an extra two trillion
dollars of American Rescue Plan spending would stoke inflation, even
though we had just put unprecedented four trillion dollars in
the economy because of COVID. Right, So you have the
(31:52):
Democratic Party basis obviously become much more college educated, professional
degree right, Kamala Harris pulled she's a forty point lead
with college educated white women. Where you see everything backslide
is voters without degrees have gone overwhelmingly to the right.
And that's the cross racial line. The secondary reason for
(32:14):
why this has happened, other than just the ideological capture,
the fact that things like ESG DEI, these have become
mandy within these companies. And it's why you see Robin
DiAngelo getting hired by Netflix, and it's you know, climate
change goals for Coca Cola. On top of that, going
(32:35):
back to the fourteen years of zero percent interest rates,
it made it so that way we need the cost
of borrowing free, and it made it a lot easier
to give away. It's a lot easier to make a
profit when debt is free. And for these companies to
have engaged in these social experiments, in these you know,
political social experiments, and now it's much more difficult, and
(32:56):
they just want to get back to free money, the access,
and a government that can build them out.
Speaker 2 (33:05):
Sianna.
Speaker 1 (33:05):
Finally, we don't talk enough about the economic impact of
illegal immigration. Obviously, every time there's a drug overdose or
a rape or a murder or something terrible like that,
it hits the news, but the American people don't really
understand the impact this has on the education system, the
medical system, the housing crisis, the economically importing people by
(33:29):
the million and then paying them to be here is
devastating for the American citizen.
Speaker 2 (33:34):
And that's Kamala Harrison's policies.
Speaker 12 (33:37):
Yeah, that's been the explicit policy for the last four years.
And you know me, Jesse, I am a pro free market,
pro immigration, you know, libertarian in economics. However, that's not
the system that we have. So on top of the
fact that you have states like California or California, all
undocumented immigrants are entitled to Medica, which is their state
(34:01):
sponsored health insurance, you have other states that also use
federally subsidized that means federally funded Medicaid that are given
to undocumented immigrants. And this would be different if they
were paying into the system. But they aren't always, and
so that's why you have this dramatic insolvency. Right like
Social Security actually to an extent, is more safe from
this than the major healthcare spending. Federal food stamps, those
(34:25):
are things where you can't import a bunch of people
into the country and let them starve. And especially in
blue sanctuary states, the federal government subsidizes some of these programs,
and the doublers get all mixed because it's all fungible.
You have something also very explicit. I went to Springfield, Ohio.
There is no evidence of people eating dogs or eating calf.
(34:45):
What there is evidence of is the entire economy in
a crisis. In everyone in Springfield degrees. But the Haitians
are victims. Here. The villain is the government. And here's
why you have a lot of these migrants who are
not illegal. They've been granted TPS, and a part of TPS,
they get federally funded Medicaid and federally funded food stamps.
(35:06):
Few of these local slumwards that negotiate their employment contracts
with dull fruit manufacturing and dull fruit packaging, and they
explicitly fay you can pay these Haitian migrants you know,
bottom of the barrel wages because they have federally funded healthcare,
and that undercuts the local market rate of labor, which
(35:27):
is not free market economics. That's not capitalism. And the
people the worst off there are the Haitians that are
making slave wages. It's not good for anybody importing. And
again I'm not opposed to people that come into the
system the correct way, where you don't need you know,
subsidized housing, and where you can speak the language, where
(35:50):
you have enough translators, where you learn English. That's not
what's happening here. Instead, it's a bunch of very cheap
labor that has to be subsidized by you and me,
and at the same time it's undercutting the wages of
everyone else that's already here.
Speaker 1 (36:06):
Yeah, slave labor is not free markets. It's a really
wonderful way to put that. Siata, appreciate you as always, Dynamite.
All right, we have the new Big Cheese and the
House Freedom Caucus.
Speaker 2 (36:21):
Next, I'll be interested to see does he have anything
to say.
Speaker 11 (36:25):
Hang on, Inflation is made in Washington because only Washington
can create money, and any other attribution to other groups
(36:48):
of inflamation is wrong.
Speaker 10 (36:53):
Consumers don't produce it. Producers don't produce it, trade unions
don't produce it. Foreign sheiks don't produce it. Will imports
don't produce it. What produces it? It's too much government
spending and too much government creation of money and nothing else.
Speaker 1 (37:16):
May there's nobody who put complicated things better than Milton Friedman. Gosh, anyway,
we're a little bit of ways away from that way
of thinking in this country. Joining me now, Congressman Representative
Andy Harris, I should say from Maryland, member of the
House Freedom Caucus, which tells you he's one of the
few good ones out there. Congressman, I almost don't even
(37:39):
want to say this because it hurts me to even
say it.
Speaker 2 (37:41):
But the national debt wasn't.
Speaker 1 (37:43):
Even a trillion dollars when Milton Friedman gave that speech
back in the seventy.
Speaker 2 (37:48):
Now it's thirty five. We are doing.
Speaker 14 (37:50):
Well, well, it's pretty close to thirty six. It's just
completely out of control, completely out of control.
Speaker 1 (38:00):
Congressman, how do we stop it? It doesn't seem like
there's any appetite to stop it. To be frank, with
either party, I know we love to complain because Democrats
spend as much or more, but Republicans love to spend.
The American citizen doesn't see a problem with spending. It says,
if there are no powerful forces trying to stop inflation,
(38:21):
everyone's mad about it.
Speaker 2 (38:23):
No one's trying to stop it.
Speaker 14 (38:25):
Look, you're absolutely right, there's no question about it. The
Union Party here in Washington loves to spend. And again,
people have come to expect it.
Speaker 2 (38:33):
You know.
Speaker 14 (38:34):
Look, we have disasters around. People come to expect the
federal government to come in create dollars because we're all
borrowing the dollars. We're all creating these dollars to help
with things like that. Again, we are two trillion dollar
federal deficits every year, year over year. And I have
to tell you, Jesse, the only thing that will stop
it is the thing that stops it happening. In individual states,
(38:54):
you have to have a balanced budget amendment to the Constitution.
You actually have to have a law that says you
can't over spend.
Speaker 1 (39:02):
Which seems like I don't don't, I don't want to overstate.
But that seems like almost an impossibility because that kind
of a thing has to be passed in Washington, DC,
and you'll have to forgive me, But the same group
of people who just passed yet another CR which in
and of itself is a scandal. I need to remind everybody.
Don't seem like the same group of people who are
going to vote to balance their budget.
Speaker 2 (39:24):
You're absolutely right.
Speaker 14 (39:25):
All I'm saying is that that's the way it would
have to be solved. But it practically speaking can't be
solved that way either, Because you're right, we attempted to
do it. I was elected with the Tea Party wave
in twenty ten. We attempted to do it shortly after that.
We couldn't even do it then when we had larger
majorities in the House.
Speaker 1 (39:45):
Yeah, what's going on with the omnibus spill? The minibus spill?
I'm believe me. I've heard that. No, there's not going
to be an omnibus, But I'm sorry, I've heard many
of those things before.
Speaker 2 (39:55):
I also heard there.
Speaker 1 (39:56):
Wouldn't be any money for Ukraine until there was border security,
and then that does appeared like a fart in the wind.
So is there going to be an omnibus or is
this just a bunch of Washington bluster?
Speaker 14 (40:06):
Well, at this point, look, we intend in the Freedom Caucus.
We will hold Michael Johnson to his word, he said.
Mike Johnson said that he is not going to do
an omnibus bill. He's not going to agree to one
in December.
Speaker 2 (40:18):
You know.
Speaker 14 (40:19):
Again, if we win the elections, then I see no
reason why we shouldn't kick all these discussions into next year,
when potentially we could hold both Houses of Congress and
the presidency. But look, we're going to hold Mike Johnson
to his word, he said, quite emphatically. He's gonna be
no omnibus. Now, look, we have some skepticism on that too, because,
just like you say, we have heard this kind of
thing before. But we'll give Mike Johnson a chance. He
(40:42):
says he's not going to do it. Hopefully he doesn't
because that Christmas omnibus is usually loaded.
Speaker 2 (40:46):
Up and larded up.
Speaker 14 (40:48):
Honestly, if this, if this were a regular year and
Mike hadn't said this, we probably would have that omnibus
in front of us pretty quickly, with one hundred billion
dollars supplemental for disaster on top of it, with another
fifty billion perhaps for Ukraine, Israel is eight as well. Again,
we have to avoid the Christmas omnibus. The Speaker has
(41:08):
said he's not going to do it.
Speaker 2 (41:11):
We're going to We're going to.
Speaker 14 (41:12):
Try to hold him to his word.
Speaker 1 (41:15):
Yeah, well, well, I guess we'll see if that happens.
The Freedom Caucus. Is it growing or is it shrinkings?
We really need you guys to grow and be even
more powerful than you more.
Speaker 14 (41:24):
Well, it's about the same size. It's been the same
size for several years now. You know, if it gets
too big. The trouble is, we don't have that many
true conservatives in Washington, as you can imagine, So it's
not an unlimited you know, we can't have the entire
It be great to have the entire conference, but we're
never going to have that. So we have to be
the vanguard of the conservative movement within the House of Representatives.
(41:46):
That that's our goal. And by sticking together and forcing
the conference into in a more conservative direction, hopefully we
can again turn the country around to a better direction.
But it is it is long hard work, let me.
Speaker 2 (41:58):
Tell you no doubt. Congressman, thank you so much. I
appreciate it. All right, we'll be back.
Speaker 1 (42:22):
The other night, I didn't want to go home from
work when the show was over and it was time
to take off my earpiece.
Speaker 2 (42:29):
I didn't want to go home from work. Why my son, one.
Speaker 1 (42:33):
Of them, I'm not going to tell you which one
got himself in a little bit of trouble in school.
Speaker 2 (42:37):
It was fine, he's a good kids. It's no big deal.
Speaker 1 (42:40):
But I knew that when I got home that night,
I didn't get to do the dad's home, call my buddies,
well you want a pizza.
Speaker 2 (42:50):
I didn't get to be that guy.
Speaker 1 (42:52):
I had to go home, crack the whip and make
hard choices, hard choices.
Speaker 2 (42:59):
Stuck they do.
Speaker 1 (43:01):
When we discuss these things about our economy and the
economic collapse, it's hard to hear and it's hard to
think about.
Speaker 2 (43:09):
We don't want it.
Speaker 1 (43:11):
We don't want to have to sit down and look
at this government service or this or that and say, no, no,
you need to stop spending it, Please stop sending it,
please stop save my way. Let We don't want to
do that, because that's a hard conversation. We want to
go home and eat pizza with our songs. But we've
got to go home and ground them. We've got to
begin grounding our politicians. Now, spending in debt isn't some
(43:35):
absurd side issue while don't talk about it till after
the election.
Speaker 2 (43:40):
It is the issue.
Speaker 1 (43:42):
And as the normal, average, everyday American gets steam rolled
by inflation, by all this madness debt and deficits and spending,
it's going to rise to the surface and everyone is
going to realize in the end it might be the
only thing that matter, and it was the thing we neglected.
(44:02):
I don't want to have to make hard choices. You
don't want to have to make hard choices, but hard
choices are oftentimes necessary. We sit right here and our
position as American people, and it's time to make them.
Start demanding your politician cut spending to save you and
more specifically your children.
Speaker 2 (44:24):
All Right, all right, we'll do it again.