February 12, 2025 • 9 mins
Chris breaks down the latest economic numbers—rising costs in housing, energy, and food, coupled with an unsustainable debt rollover. He explains how refinancing a $66 billion bond at higher interest rates will cost taxpayers an extra $1.7 billion a year, and argues that nothing the Fed can do will stem inflation unless government spending is finally cut. Markowski challenges everyone to understand that our economic woes are rooted in unchecked fiscal policy and warns that without immediate reform, the damage will only grow worse. www.watchdogonwallstreet.com
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it will have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.
Speaker 2 (00:16):
Break out the one hit wonder from way back when
hot hot, Hot buster Poindexter. We're talking about inflation. Yeah, yeah,
numbers pretty hot to say the least. Here, Yeah, let's
go through some of this index for shelter up point
four percent, that accounted for thirty percent of the monthly
(00:40):
All items increase, energy up one point one percent, food up,
food at home up point five yet meats, poultry, fish
eggs up one point nine percent, food away from home,
non alcoholic beverages increase two point two percent. Again, this
(01:02):
is paying attention that the Federal Reserve really doesn't know much.
All eyes today again, like yesterday, Jay Powell is there
in Congress and they're asking him questions. One not long ago,
one not long ago. They lowered interest rates by another
(01:23):
fifty base points total of one hundred basis points. What
have we seen since then? Well, I'm going to tell
you what we're going to see moving forward when it
comes to the news. This inflation number, this hot inflation number,
is going to be put squarely at the feet of
Donald Trump. Again, this is a January print. Donald Trump
(01:49):
got sworn in on January twentieth. Okay, and again they're
going to say, well, you know, it's stuff. The reason
why is people are raising prices because they're thinking about
tariffs moving forward and all of this stuff that's going on.
Speaker 3 (02:07):
Right.
Speaker 2 (02:08):
Sure, again, you know, you can't trust anything any of
the numbers that come out of the government you talk about,
whether it be the jobs numbers, whether it be the
inflation numbers. They're always tinkering with these things. And I
do believe and we alluded to it at the time
that you know, the FED lowering interest rates based upon
(02:31):
the numbers that were available, much of which I think
was a bit of a Fugaci didn't really make any sense.
He was almost giving contradictory statements at that point in time.
But then again we were told that, no, no, the
FED never gets involved in politics. Okay, excuse me, yeah,
I'm sorry again. Anyway, let's let's just go over the
(02:55):
past four years.
Speaker 3 (03:00):
Four years.
Speaker 2 (03:01):
Medical care up nine point one percent, apparel up nine
point three percent, new cars up nineteen percent, use cars
up twenty one point five percent, food at home up
twenty three point two percent, shelter up twenty four point
seven percent, food away from home twenty five percent, electricity
(03:21):
twenty nine point six percent, gas and utilities up thirty
three point six percent, Gasoline up thirty four point nine percent.
Home price is up thirty nine point four percent, transportation
up forty three point five percent, fuel oil up forty
four point six auto insurance up sixty point nine percent,
(03:45):
and eggs up two hundred and thirty eight percent. Actually,
it was funny one of Obama's economists Jason Furman, and
Jason has been teetering around the edges for the past
several years under Biden. He didn't fully come out against
(04:09):
biden nomics, but basically he has now saying the entire
thing was an absolute joke. It was stupid, all of
this industrial policy. Again, I don't know, you know, I
don't know. Maybe he's free to speak his mind. He
does teach at Harvard. Now, I don't know if he's
going to get kicked out of there for doing that,
(04:29):
But he's right. The reality of our situation, and this
is the reality of Donald Trump, and he's going to
have to handle this, and he's gonna have to get
out in front of this right away.
Speaker 3 (04:43):
It ain't coming down anytime soon. Okay.
Speaker 2 (04:46):
I had a problem with Trump on the campaign trail again.
He's trying to get himself elected, you know, talking about
on how prices are going to come down immediately as
soon as he got voted in the office, and I
was like, don't say that, don't say that. Phrase it differently.
There's been a lot of damage done over a long
(05:11):
period of time. Take a look at our national debt,
take a look at our deficits. You don't go, you
don't spend your entire life, you don't. You don't take
care of yourself. You're out of shape. You're not it's
you're not even morbidly obese, but you're just out of shape.
You've got no muscle tone. You decide, you know what
(05:33):
you're gonna You're gonna go to the gym. If you
think you're going to make up decades of inactivity overnight.
Speaker 3 (05:43):
It's not the case.
Speaker 2 (05:45):
This this is a process, and the steps are being taken,
and they're gonna.
Speaker 3 (05:51):
Have to lay this out to people.
Speaker 2 (05:53):
They're gonna have to They need to understand that again,
those is.
Speaker 3 (05:58):
A part of this.
Speaker 2 (05:59):
Lowering energy prices is a part of this, and this
is going to have to filter through. The blowback from
most of the people is going to be, you know, well,
tariffs are going to raise things here and.
Speaker 3 (06:10):
There, and they're not.
Speaker 2 (06:12):
Wrong, they're not wrong. But again, tariff's not so much inflation.
Tariffs is tariffs.
Speaker 1 (06:20):
This is me.
Speaker 2 (06:21):
Inflation is a monetary issue always, and we've been living
willy nilly for a period of time and it's not
going to get better.
Speaker 3 (06:30):
Here's an example.
Speaker 2 (06:32):
Okay, we have a sixty six billion dollar ten year
bond from February twenty fifteen that's coming due tomorrow. Back
in twenty fifteen, February twenty fifteen, the federal government went
out and borrowed sixty six billion dollars for two percent. Well, okay,
(07:00):
that bond is up, but guess what we need the money? Yeah,
the government needs that sixty state. They got to pay
back that sixty six billion dollars. A bond is up,
but they're going to just go ahead and borrow it again. Again,
this is how our government works. Okay, Essentially using one
(07:20):
credit card to pay off another.
Speaker 3 (07:22):
Credit card.
Speaker 2 (07:23):
So the one credit card, the one credit card that
you have to pay off, well, it's sixty six billion dollars,
was paying two percent for ten years.
Speaker 3 (07:34):
That's going to be replaced right.
Speaker 2 (07:36):
Now with a another sixty six billion dollars. But they're
paying over four and a half percent. Think about that.
That that that rollover, that simple rollover of that debt
is going to cost an additional one about one point
seven billion dollars a year to you and I the taxpayer.
Speaker 3 (08:00):
That that is the world we're living in right now.
Speaker 2 (08:04):
I try my best to explain it here on the show,
but honestly, you people need to go out politics that
if you care about this, you have to explain this
to the American people.
Speaker 3 (08:17):
And I know, I know you got a lot of idiots.
O dub Ooh it's not a short.
Speaker 2 (08:22):
Well I only watched clips on TikTok for a couple seconds.
Speaker 3 (08:26):
Yeah, you're not going to get to them. They're morons.
Speaker 2 (08:28):
Okay, we have to reach out to the people that
haven't been you know, floated into that area of moron,
you know, the moron arena there. You have to explain
this to people, this is what's going on. We're refinancing
debt that we're at very very low rates, not long
ago at much much higher rates, which is going to
cost us a hell of a lot more. So, we
(08:50):
need to get this spending in check. We need to
get our deficit down. This has to stop. There is
nothing that fed A reserve can do.
Speaker 3 (09:01):
Nothing.
Speaker 2 (09:02):
There's no magic here to make inflation go down unless
we cut spending. Watchdog on Wall Street dot Com
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it will have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.
Speaker 2 (00:16):
Break out the one hit wonder from way back when
hot hot, Hot buster Poindexter. We're talking about inflation. Yeah, yeah,
numbers pretty hot to say the least. Here, Yeah, let's
go through some of this index for shelter up point
four percent, that accounted for thirty percent of the monthly
(00:40):
All items increase, energy up one point one percent, food up,
food at home up point five yet meats, poultry, fish
eggs up one point nine percent, food away from home,
non alcoholic beverages increase two point two percent. Again, this
(01:02):
is paying attention that the Federal Reserve really doesn't know much.
All eyes today again, like yesterday, Jay Powell is there
in Congress and they're asking him questions. One not long ago,
one not long ago. They lowered interest rates by another
(01:23):
fifty base points total of one hundred basis points. What
have we seen since then? Well, I'm going to tell
you what we're going to see moving forward when it
comes to the news. This inflation number, this hot inflation number,
is going to be put squarely at the feet of
Donald Trump. Again, this is a January print. Donald Trump
(01:49):
got sworn in on January twentieth. Okay, and again they're
going to say, well, you know, it's stuff. The reason
why is people are raising prices because they're thinking about
tariffs moving forward and all of this stuff that's going on.
Speaker 3 (02:07):
Right.
Speaker 2 (02:08):
Sure, again, you know, you can't trust anything any of
the numbers that come out of the government you talk about,
whether it be the jobs numbers, whether it be the
inflation numbers. They're always tinkering with these things. And I
do believe and we alluded to it at the time
that you know, the FED lowering interest rates based upon
(02:31):
the numbers that were available, much of which I think
was a bit of a Fugaci didn't really make any sense.
He was almost giving contradictory statements at that point in time.
But then again we were told that, no, no, the
FED never gets involved in politics. Okay, excuse me, yeah,
I'm sorry again. Anyway, let's let's just go over the
(02:55):
past four years.
Speaker 3 (03:00):
Four years.
Speaker 2 (03:01):
Medical care up nine point one percent, apparel up nine
point three percent, new cars up nineteen percent, use cars
up twenty one point five percent, food at home up
twenty three point two percent, shelter up twenty four point
seven percent, food away from home twenty five percent, electricity
(03:21):
twenty nine point six percent, gas and utilities up thirty
three point six percent, Gasoline up thirty four point nine percent.
Home price is up thirty nine point four percent, transportation
up forty three point five percent, fuel oil up forty
four point six auto insurance up sixty point nine percent,
(03:45):
and eggs up two hundred and thirty eight percent. Actually,
it was funny one of Obama's economists Jason Furman, and
Jason has been teetering around the edges for the past
several years under Biden. He didn't fully come out against
(04:09):
biden nomics, but basically he has now saying the entire
thing was an absolute joke. It was stupid, all of
this industrial policy. Again, I don't know, you know, I
don't know. Maybe he's free to speak his mind. He
does teach at Harvard. Now, I don't know if he's
going to get kicked out of there for doing that,
(04:29):
But he's right. The reality of our situation, and this
is the reality of Donald Trump, and he's going to
have to handle this, and he's gonna have to get
out in front of this right away.
Speaker 3 (04:43):
It ain't coming down anytime soon. Okay.
Speaker 2 (04:46):
I had a problem with Trump on the campaign trail again.
He's trying to get himself elected, you know, talking about
on how prices are going to come down immediately as
soon as he got voted in the office, and I
was like, don't say that, don't say that. Phrase it differently.
There's been a lot of damage done over a long
(05:11):
period of time. Take a look at our national debt,
take a look at our deficits. You don't go, you
don't spend your entire life, you don't. You don't take
care of yourself. You're out of shape. You're not it's
you're not even morbidly obese, but you're just out of shape.
You've got no muscle tone. You decide, you know what
(05:33):
you're gonna You're gonna go to the gym. If you
think you're going to make up decades of inactivity overnight.
Speaker 3 (05:43):
It's not the case.
Speaker 2 (05:45):
This this is a process, and the steps are being taken,
and they're gonna.
Speaker 3 (05:51):
Have to lay this out to people.
Speaker 2 (05:53):
They're gonna have to They need to understand that again,
those is.
Speaker 3 (05:58):
A part of this.
Speaker 2 (05:59):
Lowering energy prices is a part of this, and this
is going to have to filter through. The blowback from
most of the people is going to be, you know, well,
tariffs are going to raise things here and.
Speaker 3 (06:10):
There, and they're not.
Speaker 2 (06:12):
Wrong, they're not wrong. But again, tariff's not so much inflation.
Tariffs is tariffs.
Speaker 1 (06:20):
This is me.
Speaker 2 (06:21):
Inflation is a monetary issue always, and we've been living
willy nilly for a period of time and it's not
going to get better.
Speaker 3 (06:30):
Here's an example.
Speaker 2 (06:32):
Okay, we have a sixty six billion dollar ten year
bond from February twenty fifteen that's coming due tomorrow. Back
in twenty fifteen, February twenty fifteen, the federal government went
out and borrowed sixty six billion dollars for two percent. Well, okay,
(07:00):
that bond is up, but guess what we need the money? Yeah,
the government needs that sixty state. They got to pay
back that sixty six billion dollars. A bond is up,
but they're going to just go ahead and borrow it again. Again,
this is how our government works. Okay, Essentially using one
(07:20):
credit card to pay off another.
Speaker 3 (07:22):
Credit card.
Speaker 2 (07:23):
So the one credit card, the one credit card that
you have to pay off, well, it's sixty six billion dollars,
was paying two percent for ten years.
Speaker 3 (07:34):
That's going to be replaced right.
Speaker 2 (07:36):
Now with a another sixty six billion dollars. But they're
paying over four and a half percent. Think about that.
That that that rollover, that simple rollover of that debt
is going to cost an additional one about one point
seven billion dollars a year to you and I the taxpayer.
Speaker 3 (08:00):
That that is the world we're living in right now.
Speaker 2 (08:04):
I try my best to explain it here on the show,
but honestly, you people need to go out politics that
if you care about this, you have to explain this
to the American people.
Speaker 3 (08:17):
And I know, I know you got a lot of idiots.
O dub Ooh it's not a short.
Speaker 2 (08:22):
Well I only watched clips on TikTok for a couple seconds.
Speaker 3 (08:26):
Yeah, you're not going to get to them. They're morons.
Speaker 2 (08:28):
Okay, we have to reach out to the people that
haven't been you know, floated into that area of moron,
you know, the moron arena there. You have to explain
this to people, this is what's going on. We're refinancing
debt that we're at very very low rates, not long
ago at much much higher rates, which is going to
cost us a hell of a lot more. So, we
(08:50):
need to get this spending in check. We need to
get our deficit down. This has to stop. There is
nothing that fed A reserve can do.
Speaker 3 (09:01):
Nothing.
Speaker 2 (09:02):
There's no magic here to make inflation go down unless
we cut spending. Watchdog on Wall Street dot Com
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Special Summer Offer: Exclusively on Apple Podcasts, try our Dateline Premium subscription completely free for one month! With Dateline Premium, you get every episode ad-free plus exclusive bonus content.
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!