October 27, 2025 • 37 mins
Shutdown day 27. How long can Air Traffic Control continue? Flight delays are growing. Socialists are running for Mayor in NYC, Minneapolis and Seattle causing a split in the democrat party. Beef prices are increasing. Imported beef from Argentina may help but cattle ranchers are furious. Possible breakthrough in talks about trade with China.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:27):
And welcome to the Big Podcast.
Speaker 2 (00:29):
How are you happy?
Speaker 3 (00:30):
Monday?
Speaker 1 (00:33):
Today's twenty seventh day of October, Year of Our Lord,
twenty twenty five. My name is Tom Sullivan. So yeah,
I know we're running out of October here. We're going
to be done with it this week. So we've got
a number of topleices to cover and let's we'll get
you up to date with the shutdown. I know a
(00:54):
lot of people talking about shutdown, shutdown on bored about
the shot. Day twenty seven at the end of this
week is the end of October, and that is when
forty two million people that are on food stamps SNAP
(01:14):
as they call it, will lose their extra money from
that program. I've regaled you a number of times now
about the fact that what a system that we have.
We've trained people to rely upon the government for their
basic necessities, I mean the basic food. You can't get
(01:37):
more basic than food and a roof over your head.
So there's going to be more stories about pain. I
saw a story today, a very sad story about a
lady who was talking about the fact that she's not
going to have enough money for food after the end
of this week. She doesn't know what to do. I
(02:02):
am a great believer in the human spirit, and when
forced to figure out how to survive, we're able to
do that. It may be hard, maybe difficult, but I
think all of us have kind of an intrinsic system
that will teach us and tell us what to do
to be able to literally survive. So we've got more
(02:26):
of that. And there was also a story over the
weekend about the money that well, the military was supposed
to get a paycheck last week and they did not.
A number of federal employees, including their traffic controllers, are
supposed to get a paycheck tomorrow and they're not going to.
So over the weekend, the story was about the military
(02:51):
and how a mystery donor try to I don't know,
try to get clicks, I guess clickbait story. But as
a mystery donor that gave one hundred and thirty million
dollars to give to the military for their payroll to
be able to pay the soldiers, the troops one hundred
(03:13):
and thirty million dollars, it turned out to be a
man who is a billionaire. He is no, he did
not earn his money, his father did. He's the heir
to a fortune of the Melon Corporation Melon Bank, and
so he had an extra hundred thirty million studying around.
(03:35):
God bless the man, he said, gave that to the
military and said, use this to pay the troops. The
reality of it is that equalled for every person in
the military. That equaled one hundred dollars. So his generosity
(03:56):
of one hundred and thirty million dollars would have led
to one hundred dollars to each and every member of
the United States military because the payroll six point four
billion dollars twice a month. So again, very generous donation,
but it did not. And then people like to, you know,
(04:17):
we'll get to a story about taxing the rich. Here's
a guy who took one hundred and thirty one hundred
and thirty million dollars. So Tom Cotton, Senator from Arkansas,
was talking about the fact that he listening to some
of his constituents and well, listen, let him tell it.
Speaker 2 (04:37):
It's exactly right. But again, you saw the callousness of
Democrats last week when a House Democratic leader said they'd
use needy families and their nutritional needs has leverage to
try to get something from President Trump and Republicans look
at what they proposed to fund the government over a
twenty and a half dollars of new spending, as well
as taxpayer financed health care for illegal aliens, and as
(04:59):
much as I ard from people in Arkansas the last
few days like that National guardsman in Clarksville also heard
from Arkansas who said, don't capitulate to these absurd demands
from the Democrats because also at route they know the
Democrats are not really demanding changes to the healthcare system.
What they're doing is raging against President Trump and the
(05:19):
American people who elected him. That's no way to try
to do the people's business. They need to open the government.
Even one of the largest public employee unions, a traditional
mainstay of the Democratic Party, has called for them to
open the government and then we can debate whatever issues
the Democrats want.
Speaker 1 (05:38):
Yeah, you hear him talking about the people that are
his constituents in Arkansas who are saying, don't capitulate. And
the reason they're saying that, I mean, you can. Yes,
there's some of it. That's people out there that love
or hate Donald Trump. Trump's always in the middle of
part of it. But I think it really comes down
to guess who's paying the one and a half trillion
(06:00):
extra subsidies for people to be able to afford their
Affordable Care Act. It's you and me, the taxpayers. And
I think people realize that, wait a minute, we're spending
all this money, we're sending in all this tax dollar
money from our pocketbooks, and they still don't have enough
(06:20):
money because they keep If one and a half trillion
dollars would solve it so that never again would they
need to figure out what to do to make Affordable
Care Act affordable, that would be a worthy discussion. But
it's not. The one and a half trillion is just
the latest iteration, and it will happen again next year.
They'll last for more. Well, we got we got to
(06:42):
make sure, I mean, these people can't afford their insurance.
We need more money. And then it would happen the
year after that. It would just go on and on
and on. It just would. So that's well. Here's a
little bit from the air trafficking rollers. If you've noticed,
if you travel a lot or travel a little, right
now is kind of precarious to figure out whether your
(07:04):
flight's going to go or not. Dan McCabe is the
head of the Southern Division of the Air Traffic Controllers,
and he's talking about the flight that they are having.
Speaker 4 (07:19):
I don't believe the system is less safe. There are
safeguards in place. There are safeguards in place before the
shutdown ever started. That's why you do see and I
look outside on days like today in Atlanta where there's
low ceilings in its rain, your flights are delayed when
the capacity is lowered because of some outside influence weather, constructions, staffing,
(07:41):
we do have to downshift the airplanes to be able
to keep that margin of safety, and we don't allow
that margin of safety to shift at all. Listen, this
job is stressful. On a perfect day with a full
complement of staffing, you got nine hours of sleep. You
feel it's the greatest day of your life. Stress, it's
still a demanding job on your body, on your mind. Well,
(08:04):
when you bring in outside you know what I would
call adult stress, financial stress, worrying about your kids. You're
adding in a crippling amount of stress on top of
stress that you're going to find at work. You'll find
plenty of stress when you walk in the door. But
you know, like they said, tomorrow's the day is the
(08:24):
first zero paycheck. That introduces a whole new litany of issues,
putting gas in your car, making sure your kids are
taken care of, making sure that you can eat. And
the thing is is, you don't know what somebody's situation
is until you walk a mile on their shoes. Short
of us doing some sort of predictive analysis, the thing
(08:47):
we have to really look at right now is where's
the breaking point. We have a very young workforce. This
is a workforce that may not be financially set up yet.
And like I said, everyone has a story. Some people
may not be maybe spread then some people may have
some savings. We don't know that. But what we have
to look at now where is the breaking point for
(09:07):
each individual? And that stress is absolutely unnecessary on top
of what they're already doing.
Speaker 1 (09:15):
So air traffic controller is just one of the plethora
of government jobs that are out there, but it affects
It can affect you if you need to catch a
flight somewhere. There's delays, there's cancelations. And yet at the
same time, they can't turn this around with a flip
of a switch. It takes years to literally years to
train somebody from scratch to become a certified air traffic controller,
(09:39):
and he talks about Dan McCabe talks about that whole
process of hiring more controllers and what their thoughts are.
Speaker 4 (09:47):
We have begun to supercharge the hiring of air traffic controllers. Now,
hiring an air traffic controller does not make an air
traffic controller. You hire someone to train to be an
air traffic controller, and then after years of specialized training
and they're fully certified. Now you look at what's going
on in the world right now, and you say, hey,
this is a job I may want to do. I
(10:08):
may want to pursue. But wait, they're not getting paid.
But wait, they've not been paid before. Will that change
the minds? It might when you have people that are
brand new into their facilities and they say, welcome to
my new job. I'm suddenly not getting paid. I'm suddenly
worried about making rent, paying for my car, feeding myself.
(10:29):
I go to work so I can have pizza. I mean,
these are.
Speaker 1 (10:32):
Issues mentioned before that. My oldest son is an airline pilot,
and I told him when he first started flying for
the airlines, said, you got to put some money aside.
I know young people don't have a lot of extra
money to set aside. But I said, you got to
start some little side fund that's of strike fund, because
the airlines sooner or later are going to go on strike.
(10:56):
They all seem to and in the case of air
traffic controller, you you better put the money aside because
you know that the government's going to have shut downs
every so often. And I feel bad for them and
we need them, but they're young people. They don't have
I know when I was a young guy starting out
after college, I didn't have a dime, So you kind
(11:18):
of they're going to have to again. I go back
to you're going to have to figure out if you
really want to be an air traffic controller, how you're
going to survive and do that as well. And what's
happening is a lot of them have figured it out,
they went and got side jobs, and they're calling in sick.
So there was a bunch of delays over the weekend.
(11:39):
Eight thousand flights were delayed yesterday at twenty three airports
around the country. So it's getting to be more widespread.
And wait until after tomorrow when the normal paycheck doesn't
come in, there'll be even more sick calls. Also over
(12:00):
the weekend, there was a big rally here in New
York for Zoron Mendanni and AOC and Bernie Sanders were
there and the crowd was wild and they were all
they were all having a great time. I mean, well,
listen to this. Here's some of the people that attended
(12:21):
the event. It was over in Queens and people are
all excited about socialism.
Speaker 3 (12:28):
How do you describe the movement.
Speaker 1 (12:30):
I think it's electric.
Speaker 4 (12:31):
I think I haven't seen this many people mobilize for
a candidate in so long and so passionately, and I.
Speaker 1 (12:35):
Think that I'm really excited to be a part of that.
Speaker 4 (12:37):
Do you think Zorin Mandani could be the future of
the Democratic Party.
Speaker 1 (12:41):
I hope that he's the future of the Democratic Party.
Speaker 5 (12:44):
Voters say they want free childcare, free buses, and who
do they want to pay for it?
Speaker 6 (12:49):
The rich?
Speaker 2 (12:50):
Do you think you should tax the rich to pay
for the plan?
Speaker 4 (12:53):
I mean, I am not rich, so it's easy for
me to say yes, well he need Yeah.
Speaker 1 (12:59):
It was easy for her to say yes because she
wasn't rich, and so yeah, tax that other person. But
I just hope that there's people out there that think, Okay,
I'm not rich, but man, I'd like to be someday
and when I if I do work hard and get
some extra money, I don't want everybody else taking my
(13:20):
money away for them. But that's what it is. That's
what they want, and it's very popular. This has been
going on forever. That's not anything new. I know, the
socialism thing, and I want to get into this a
little bit because socialism is growing big time in this country.
Young people have always been more inclined to think socialism
rather than capitalism. But over the last decade two decade
(13:45):
and a half. People came out of college in two
thousand and seven, two thousand and eight during the Great
Depression and they couldn't get a job. And that was
two thousand and seven, two thousand and eight. So if yeah,
fifteen years ago, I presume they're doing okay today. But
they got a bad taste in their mouth right out
of college about the fact that what's this capitalism thing.
(14:08):
It doesn't seem to be working, not for me. That
was their attitude. So you got another generation out there
right now that is going I just want free stuff.
Everybody's always wanting free stuff. The number one most famous
popular word in the English language is free and the
(14:28):
other part. Whenever you take a poll, and this has
been going on in my entire life. You take a
poll and you ask people should we tax the rich more?
And the answer is overwhelmingly, like sixty seventy percent say
yes because they don't think they're rich. But if you
compare yourself to somebody else in another part of the world,
(14:48):
Americans are very rich, but not compared to you versus
that billionaire. So it was. It was in a stadium
holds thirteen thousand people in Queens and it was full.
But then again, it had Bernie and aoc as the
draw and Mim Donnie was there and the people were
all excited about it. But this movement, and this is
(15:11):
what I want to bring up with you, is that
the movement is growing. It just is. And I've told you.
But there's three major socialist candidates running for election next week.
One of them is Aron ma'am Donnie, and he gets
the most attention because he's in New York. He wants
(15:33):
to run he wants city run grocery stores, and he
wants free and fast buses. I don't know about the
fast bus thing, and about he wants free lawyers for
illegals that are in New York. In Minneapolis, there's a
very liberal mayor there. He's been there for a couple
(15:53):
of terms, but he's gotting a good run for his
money because there's a socialist by the name of Omar
Fatah who is wanting to fund non police programs, in
other words, change out the police or that the police
programs are reduced. He wants to keep homeless encampments, and
(16:13):
he wants to stabilize rent. Number three on the list
is my old hometown of Seattle. Katie Wilson. The mayor
of Seattle is a big Democrat and he definitely hangs
out on the left side of the aisle. Seattle has
become very very left. Well, there's a woman there named
Katie Wilson, and she is a big socialist. She wants
(16:41):
she wants to flow a one billion dollar bond for
affordable housing. She wants to install city owned solar panels.
And I have to laugh when I saw that, because
we're talking about in Seattle, where it's mostly cloudy most
of the time, so I don't know what she's gonna
do with the solar panel. And she wants to fund
(17:02):
an alternative to police so these people all have the
same idea about cutting back on police and free stuff
for everybody. Socialism has been tried for hundreds of years
and it has never worked. Josh Kraushawer talks about it.
Speaker 7 (17:21):
This is a war within the Democratic Party between the
mainstream and the socialist wing of the party. And in
cities that are very deep blue where the Democratic Party
is is pretty much the only game in town. You're
seeing the socialists actually getting momentum. Ma'm Donnie clearly the
favorite in New York City. Seattle, I think Katie Wilson,
(17:42):
a socialist, the favorite to be the next mayor of Seattle. Minneapolis.
The incumbent Jacob Prye may have a slight lead, but
he's in a very competitive race against Omar Fata, who
is a DSA deep blue, far left socialist. And you're
also seeing this talked about this on the show too.
Congressional primaries Graham Plattner in Maine, and you have these
(18:04):
candidates that are self identifying as socialists coming out of
the woodwork to run in many, many key races and
it comes as gallop. I mean, the latest polling from
Gallup show that sixty six percent of Democrats now view
socialism favorably, which is at nearly an all time high,
and more and more Democrats view capitalism unfavorably. So this
(18:26):
is the mood of the party. This is the environment
that they're swimming in.
Speaker 1 (18:30):
Yeah.
Speaker 7 (18:30):
Look, you heard at that Mamdani rally last night. What
got the crowd most animated. Tax the rich. And it
is a sentiment because a lot of younger voters in particular,
are feeling they're not getting ahead, They're struggling to pay rent.
There is this frustration out there. You heard this in
the presidential campaign. The issue for the Republicans was inflation.
(18:53):
For Democrats, they call it sort of the rising costs
and affordability. But it's basically the same thing that the
economy isn't working for the average voter. I mean, ultimately,
the Republican Party, President Trump is going to have to
get results, is going to have to show that his
economic policies are working. Democrats are trying to not just
exploit that, but the debate within the parties are about
(19:14):
economic policies and and tax the rich.
Speaker 1 (19:16):
Yeah, there is a battle going on in the Republican
Party and the Democrat Party. The Democrats they have a governor. Hochal,
New York governor, was at this event, but she looked
so uncomfortable. I mean, she was very because she's not
part of that part of the Democrat Party, but she
(19:37):
had to play along and so she endorsed zoron Donnie.
What all of these socialists are able to use is affordability,
and this is an area that I think the well,
that's another whole story about if Donald Trump. There's stories
about him wanting to run in twenty eight, and Steve
(19:59):
Bannon's talking about it, and the President was asked about it,
he said, I'd love to Now it's not going to happen,
but he loves yanking the chain of the media. They
are all in a dither about it today. Oh my gosh,
he's going to run in twenty eight. He even has
hats somebody made up for Trump in twenty twenty eight.
But regardless of all of that, whoever is running in
(20:22):
twenty eight is going to be faced with the question
about affordability. That's when Mandanni is running on. That's what
the woman in Seattle is running on. Is his whole
business about affordability. Things are expensive. I told you on Friday,
we got the Consumer Price Index numbers out not going
up a lot, it's not earth shattering, but it's going
(20:42):
up one tenth of a percent per month for the
last four or five months. It's just creeping higher. And
the problem is is that President Trump promised that he
would reduce costs and they're not going down. There's some
things that are going down, but there's a lot of
things that are going up. And as the result, the
(21:03):
whole question about affordability is what these socialists are running on?
Free buses, free this, free that. Well, the price of
beef apparently has really spiked. Scott linscom he is an
economist at the Cato Institute, so he's a libertarian. He's
also a law professor at Duke University, and he was
(21:27):
asked about these higher beef prices because the president is
allowing beef from Argentina to be sent to the United States.
And we played a clip from a beef farmer on
Friday about the fact that you're killing us, you're killing us.
And what President Trump is in this spot between a
(21:50):
hard spot and a rock, and that is he wants
the beef prices to come down so that the you
and me, as consumers of beef. Don't have a panic
about the cost of beef. On the other hand, the
cattle ranchers are getting killed by the lower prices. You're
Scott Lindscombe.
Speaker 5 (22:09):
Yeah, there are two main factors with b prices. One
is good old mother nature. You just have supply issues
in the United States where we're having the cattle herd
is at historic lows, and that means your domestic supply
is going to be low and your prices are going
to be higher. The other big thing, though, is unnatural,
(22:32):
and that is United States trade policy. Even before Trump,
the United States was actually pretty protectionist on allowing beef
imports into the country with an elaborate series of quotas
and other tariff measures. Trump comes along and slaps a
fifty percent tariff on one of the largest suppliers in
(22:53):
Brazil and doesn't relax any of those other tariffs, while
also of course applying global tariffs on beef from anywhere else.
So you put those two things together and it's a
recipe for higher prices in it.
Speaker 1 (23:07):
So the dilemma of the White House is facing is
they have raised tariffs on steel and aluminum other things
to try to protect US industries because therefore allows the
US industry to raise their prices and survive. But by
allowing foreign beef to flood our markets so that the
price of beef goes down, they're killing the beef producers
(23:30):
in this country. And well back to Scott Lunsgo and
Fry to figure that one out.
Speaker 5 (23:36):
I feel like I'm on a different planet when President
tariff Man is talking about how he's going to go
to imports to lower prices. This you hear economists cheering
but also sighing a bit when we hear this, after
so long of hearing that, you know, tariffs don't raise prices.
The reality, though, is that most beef comes from the
United States, and with continued tariffs on everywhere else in
(24:00):
the world, including Brazil, even an expansion of those quotas,
it won't do too much to alleviate prices. Maybe a
little pressure at the top, but we're not going to
get a return to those wonderful days of cheap steaks
and burgers.
Speaker 1 (24:12):
Yeah, sorry about that. If you like your stakes and burgers,
you're just gonna have to pay more. And I would
hope that the President, if he's going to really put
tariffs on to protect us industries and put tariffs don't
allow the Argentinians to put their beef here in the
US and compete with our with our cattle ranchers. So also,
(24:33):
I think it was on Friday, maybe it was still
on Thursday of last week. I played for you the
ad that really made President Trump mad. It was the
ad that Canada, actually it was the Province of Ontario
that created this ad that was Ronald Reagan talking about
trade and how Ronald Reagan was anti trade, embargoes, trade tariffs,
(24:58):
all of that he doesn't like, he didn't like terror. Well,
the problem is with ads, you can't have a four
minute ad. So they had to cut it down and
the part that was left off was edited out. And
I thought, well, to be fair, you should I played
the ad on Thursday or Friday of last week. To
(25:19):
be fair, I thought, I need to play the whole
four minutes because he talks about the fact that Ronald
Reagan did reluctantly impose some very specific tariffs on Japan.
This is nineteen eighty seven. Japan was the leader of
the world economically. They were on fire in a good way.
(25:43):
So I thought, let's play the whole ad and you
can hear everything that Ronald Reagan said, so you can
decide whether Ronald Reagan was a smart guy or whether
he was doing it wrong. Here's the ad. Sorry, here's
the radio address, not the ad.
Speaker 6 (26:00):
My fellow Americans. Prime Minister NAKASONI of Japan will be
visiting me here at the White House next week. It's
an important visit because while I expect to take up
our relations with our good friend Japan, which overall remain excellent,
recent disagreements between our two countries on the issue of
trade will also be high on our agenda. As perhaps
you've heard, last week, I placed new duties on some
(26:23):
Japanese products in response to Japan's inability to enforce their
trade agreement with US on electronic devices called semiconductors. Now,
imposing such tariffs or trade barriers and restrictions of any
kind are steps that I am loath to take, and
in a moment I'll mention the sound economic reasons for
(26:43):
this that over the long run, such trade barriers hurt
every American worker and consumer. But the Japanese semiconductors were
a special case. We had clear evidence that Japanese companies
were engaging in unfair trade practices that viholated an agreement
between Japan and the United States. We expect our trading
(27:04):
partners to live up to their agreements. As I've often said,
our commitment to free trade is also a commitment to
fair trade. But you know, in imposing these tariffs, we
were just trying to deal with a particular problem, not
begin a trade war. So next week I'll be giving
Prime Minister Nakasoni this same message. We want to continue
(27:25):
to work cooperatively on trade problems and want very much
to lift these trade restrictions as soon as evidence permits.
We want to do this because we feel both Japan
and the United States have an obligation to promote the
prosperity and economic development that only free trade can bring. Now,
that message of free trade is one I conveyed to
(27:47):
Canada's leaders a few weeks ago, and it was warmly
received there. Indeed, throughout the world, there is a growing
realization that the way to prosperity for all nations is
rejecting protects legislation and promoting fair and free competition. Now
there are sound historical reasons for this. For those of
us who lived through the Great Depression, the memory of
(28:10):
The suffering it caused is deep and searing, and today
many economic analysts and historians argue that high tariff legislation
passed back in that period, called the Smoot Hawley Tariff,
greatly deepened the depression and prevented economic recovery. You see,
at first, when someone says, let's impose tariffs on foreign imports,
(28:31):
it looks like they're doing the patriotic thing by protecting
American products and jobs, and sometimes for a short while
it works, but only for a short time. What eventually
occurs is first homegrown industries start relying on government protection
in the form of high tariffs, They stop competing and
stop making the innovative management and technological changes they need
(28:55):
to succeed in world markets. And then while all this
is going on, something even worse occurs. High tariffs inevitably
lead to retaliation by foreign countries and the triggering of
fierce trade wars. The result is more and more tariffs,
higher and higher trade barriers, in less and less competition.
So soon, because of the prices made artificially high by
(29:16):
tariffs that subsidize inefficiency and poor management, people stop buying.
Then the worst happens. Market shrink and collapse. Businesses and
industry shut down, and millions of people lose their jobs.
The memory of all this occurring back in the thirties
made me determined when I came to Washington to spare
the American people the protectionist legislation that destroys prosperity. Now,
(29:40):
it hasn't always been easy. There are those in the Congress,
just as there were back in the thirties, who want
to go for the quick political advantage, who risk America's
prosperity for the sake of a short term appeal to
some special interest group. Who forget that more than five
million American jobs are directly tied to the foreign export
business and additional millions are tied to imports. Well, I've
(30:04):
never forgotten those jobs. And on trade issues, by and large,
we've done well. In certain select cases, like the Japanese semiconductors.
We've taken steps to stop unfair practices against American products,
but we still maintained our basic long term commitment to
free trade and economic growth. So, with my meeting with
(30:28):
Prime Minister Nakasoni and the Venice Economic Summit coming up,
it's terribly important not to restrict a president's options in
such trade dealings with foreign governments. Unfortunately, some in the
Congress are trying to do exactly that. I'll keep you
informed on this dangerous legislation because it's just another form
(30:49):
of protectionism and I may need your help to stop it. Remember,
America's jobs and growth are at stake until next week.
Thanks for listening, and God bless you.
Speaker 1 (31:00):
That was Reagan did a Saturday radio address and you
heard what he said that he's for free trade, but
he doesn't want Congress to restrict him tie his hands
from being able to use trade tariffs in specific products.
In nineteen eighty seven, it was Japanese semiconductors that were
flooding this market. So I agree we should let Donald
(31:21):
Trump have the authority to go out and put tariffs
on specific products where they are hurting American industries. But
it's not that it's a broad based every product coming
into this country now. But it's interesting to listen to
Robert Reagan on this day where the President is in
Japan and he's talking to the new prime minister there,
(31:44):
and he's going on to meet South Korea and then
President she on Thursday, which brings up Scott Bessant the
Treasury Secretary sounded very positive, very optimistic about a trade
agree with China that he reached over the weekend.
Speaker 8 (32:03):
President Trump gave me a great deal negotiating leverage with
the threat of the one hundred percent chariffs on November first,
and I believe we've reached through very substantial framework that
will avoid that and allow us to discuss many other
things with the Chinese.
Speaker 1 (32:23):
So all of a sudden, we've got optimism. The market
liked it today. Mohammade l Arii in a very prominent economist.
He reacted to the news out of China this way,
I am.
Speaker 9 (32:35):
I think we're going to see a major de escalation
of the tensions. We're also going to see some gains
for the US on some long standing issues of market access.
Are we going to see a complete resolution of China
US tensions. No, but this is a process of de
escalation after we've been in a process of escalation, and
(32:57):
you see that clearly reflected in the market today. And
I think if you look more broadly, what the US
has achieved on tariffs was something that most economists didn't
think was going to happen. We thought that there would
be massive retaliation against the US. There hasn't been the UK.
(33:18):
A number of Asian countries have all signed framework agreements.
The only outstanding ones on India, Canada, and China, and
does clear progress on China. Secondly, we're collecting a lot
of tariff revenues on an annual basis. We're now looking
at three hundred billion of tariff revenues. Third the impact
(33:39):
on inflation has been limited. So if you look at
what people have been worried about, the US has gotten
to a ferry trading system without disadvantages that people thought
would materialize. Now it's early days, so one has consolidate
these gains. But it's a different outcome from where many economists,
including me, thought we would be.
Speaker 1 (34:00):
Yeah, I'm me too. I'll throw my head in with Mohammad.
General Jack Keene talks about the talks with China from
the military standpoint.
Speaker 3 (34:09):
Well, I think there are a number of issues on
the table, but in particular, I mean the president is
traveling to this part of the world making three stops.
A critical stop in japanish to have a closer relationship
with this new Prime minister for sure, being Abi's protege,
and Abi had the closest relationship with our president than
(34:30):
any other international figure. And the second thing is is
obviously the meeting with President she and he comes into
this to the region itself and specifically with the meeting
with she literally with the wind on his back. I mean,
everybody recognizes what has happened in the Middle East that
the United States has pushed back around many years and
(34:52):
its proxies as well, and it has achieved a hegemonic
dominance we haven't had there for decades. He also squeezing
Russia over the Ukraine and putting considerably more pressure. These
are two close partners of President she Iran and Russia,
and President she is very much aware of this dominant
(35:14):
position that President Trump has and very much aware obviously
with the economic pressure that President Trump is putting on She.
Remember She's been in power over twelve years. The only
president that has ever confronted him is President Trump. He
did it in the first term, and he's doing it
already now in his second term. And we're hearing good news.
(35:38):
There's likely a framework agreement over things going forward. Economically,
will Taiwan be on the table and G's aggressiveness in
the region. Absolutely, it makes sense. Fetanol and China's pollution
of the United States and directly killing people with that drug.
(36:00):
Providing all the pre ups for the manufacturering that drub
in Mexico is going to be on the table as well.
Think likely we're going to get some kind of an
agreement here.
Speaker 1 (36:10):
Yeah, And the markets responded positively when they open this
morning because the framework, it's not an agreement, but the framework,
according to Scott Bessen, is further help to stem the
flow of fentanyl. China to buy a substantial amount of
US soybeans, China could delay the rare earth export control
(36:36):
in other words, let us have rare earth materials that
we want, and also finalize the TikTok deal. So that's
all on the table for the President when he gets
to South Korea and meets with President she in South
Korea on Thursday. Like I said, the markets liked it
right out of the gate this morning and finished all
(36:58):
very positive. Now up three hundred thirty seven, the now
at forty seven thousand and five forty four, Yeah, and
p up eighty three. The Nasdaq up four hundred and
thirty two points. The price of gold fell one hundred
and forty dollars down to thirty nine ninety seven, and
(37:19):
the price of oil was up just a smidgeon to
sixty one dollars for a barrel of oil. That's it
for today. Thank you for coming by. I have a
wonderful rest of your day. We'll try this again tomorrow.
Look to see you then
And welcome to the Big Podcast.
Speaker 2 (00:29):
How are you happy?
Speaker 3 (00:30):
Monday?
Speaker 1 (00:33):
Today's twenty seventh day of October, Year of Our Lord,
twenty twenty five. My name is Tom Sullivan. So yeah,
I know we're running out of October here. We're going
to be done with it this week. So we've got
a number of topleices to cover and let's we'll get
you up to date with the shutdown. I know a
(00:54):
lot of people talking about shutdown, shutdown on bored about
the shot. Day twenty seven at the end of this
week is the end of October, and that is when
forty two million people that are on food stamps SNAP
(01:14):
as they call it, will lose their extra money from
that program. I've regaled you a number of times now
about the fact that what a system that we have.
We've trained people to rely upon the government for their
basic necessities, I mean the basic food. You can't get
(01:37):
more basic than food and a roof over your head.
So there's going to be more stories about pain. I
saw a story today, a very sad story about a
lady who was talking about the fact that she's not
going to have enough money for food after the end
of this week. She doesn't know what to do. I
(02:02):
am a great believer in the human spirit, and when
forced to figure out how to survive, we're able to
do that. It may be hard, maybe difficult, but I
think all of us have kind of an intrinsic system
that will teach us and tell us what to do
to be able to literally survive. So we've got more
(02:26):
of that. And there was also a story over the
weekend about the money that well, the military was supposed
to get a paycheck last week and they did not.
A number of federal employees, including their traffic controllers, are
supposed to get a paycheck tomorrow and they're not going to.
So over the weekend, the story was about the military
(02:51):
and how a mystery donor try to I don't know,
try to get clicks, I guess clickbait story. But as
a mystery donor that gave one hundred and thirty million
dollars to give to the military for their payroll to
be able to pay the soldiers, the troops one hundred
(03:13):
and thirty million dollars, it turned out to be a
man who is a billionaire. He is no, he did
not earn his money, his father did. He's the heir
to a fortune of the Melon Corporation Melon Bank, and
so he had an extra hundred thirty million studying around.
(03:35):
God bless the man, he said, gave that to the
military and said, use this to pay the troops. The
reality of it is that equalled for every person in
the military. That equaled one hundred dollars. So his generosity
(03:56):
of one hundred and thirty million dollars would have led
to one hundred dollars to each and every member of
the United States military because the payroll six point four
billion dollars twice a month. So again, very generous donation,
but it did not. And then people like to, you know,
(04:17):
we'll get to a story about taxing the rich. Here's
a guy who took one hundred and thirty one hundred
and thirty million dollars. So Tom Cotton, Senator from Arkansas,
was talking about the fact that he listening to some
of his constituents and well, listen, let him tell it.
Speaker 2 (04:37):
It's exactly right. But again, you saw the callousness of
Democrats last week when a House Democratic leader said they'd
use needy families and their nutritional needs has leverage to
try to get something from President Trump and Republicans look
at what they proposed to fund the government over a
twenty and a half dollars of new spending, as well
as taxpayer financed health care for illegal aliens, and as
(04:59):
much as I ard from people in Arkansas the last
few days like that National guardsman in Clarksville also heard
from Arkansas who said, don't capitulate to these absurd demands
from the Democrats because also at route they know the
Democrats are not really demanding changes to the healthcare system.
What they're doing is raging against President Trump and the
(05:19):
American people who elected him. That's no way to try
to do the people's business. They need to open the government.
Even one of the largest public employee unions, a traditional
mainstay of the Democratic Party, has called for them to
open the government and then we can debate whatever issues
the Democrats want.
Speaker 1 (05:38):
Yeah, you hear him talking about the people that are
his constituents in Arkansas who are saying, don't capitulate. And
the reason they're saying that, I mean, you can. Yes,
there's some of it. That's people out there that love
or hate Donald Trump. Trump's always in the middle of
part of it. But I think it really comes down
to guess who's paying the one and a half trillion
(06:00):
extra subsidies for people to be able to afford their
Affordable Care Act. It's you and me, the taxpayers. And
I think people realize that, wait a minute, we're spending
all this money, we're sending in all this tax dollar
money from our pocketbooks, and they still don't have enough
(06:20):
money because they keep If one and a half trillion
dollars would solve it so that never again would they
need to figure out what to do to make Affordable
Care Act affordable, that would be a worthy discussion. But
it's not. The one and a half trillion is just
the latest iteration, and it will happen again next year.
They'll last for more. Well, we got we got to
(06:42):
make sure, I mean, these people can't afford their insurance.
We need more money. And then it would happen the
year after that. It would just go on and on
and on. It just would. So that's well. Here's a
little bit from the air trafficking rollers. If you've noticed,
if you travel a lot or travel a little, right
now is kind of precarious to figure out whether your
(07:04):
flight's going to go or not. Dan McCabe is the
head of the Southern Division of the Air Traffic Controllers,
and he's talking about the flight that they are having.
Speaker 4 (07:19):
I don't believe the system is less safe. There are
safeguards in place. There are safeguards in place before the
shutdown ever started. That's why you do see and I
look outside on days like today in Atlanta where there's
low ceilings in its rain, your flights are delayed when
the capacity is lowered because of some outside influence weather, constructions, staffing,
(07:41):
we do have to downshift the airplanes to be able
to keep that margin of safety, and we don't allow
that margin of safety to shift at all. Listen, this
job is stressful. On a perfect day with a full
complement of staffing, you got nine hours of sleep. You
feel it's the greatest day of your life. Stress, it's
still a demanding job on your body, on your mind. Well,
(08:04):
when you bring in outside you know what I would
call adult stress, financial stress, worrying about your kids. You're
adding in a crippling amount of stress on top of
stress that you're going to find at work. You'll find
plenty of stress when you walk in the door. But
you know, like they said, tomorrow's the day is the
(08:24):
first zero paycheck. That introduces a whole new litany of issues,
putting gas in your car, making sure your kids are
taken care of, making sure that you can eat. And
the thing is is, you don't know what somebody's situation
is until you walk a mile on their shoes. Short
of us doing some sort of predictive analysis, the thing
(08:47):
we have to really look at right now is where's
the breaking point. We have a very young workforce. This
is a workforce that may not be financially set up yet.
And like I said, everyone has a story. Some people
may not be maybe spread then some people may have
some savings. We don't know that. But what we have
to look at now where is the breaking point for
(09:07):
each individual? And that stress is absolutely unnecessary on top
of what they're already doing.
Speaker 1 (09:15):
So air traffic controller is just one of the plethora
of government jobs that are out there, but it affects
It can affect you if you need to catch a
flight somewhere. There's delays, there's cancelations. And yet at the
same time, they can't turn this around with a flip
of a switch. It takes years to literally years to
train somebody from scratch to become a certified air traffic controller,
(09:39):
and he talks about Dan McCabe talks about that whole
process of hiring more controllers and what their thoughts are.
Speaker 4 (09:47):
We have begun to supercharge the hiring of air traffic controllers. Now,
hiring an air traffic controller does not make an air
traffic controller. You hire someone to train to be an
air traffic controller, and then after years of specialized training
and they're fully certified. Now you look at what's going
on in the world right now, and you say, hey,
this is a job I may want to do. I
(10:08):
may want to pursue. But wait, they're not getting paid.
But wait, they've not been paid before. Will that change
the minds? It might when you have people that are
brand new into their facilities and they say, welcome to
my new job. I'm suddenly not getting paid. I'm suddenly
worried about making rent, paying for my car, feeding myself.
(10:29):
I go to work so I can have pizza. I mean,
these are.
Speaker 1 (10:32):
Issues mentioned before that. My oldest son is an airline pilot,
and I told him when he first started flying for
the airlines, said, you got to put some money aside.
I know young people don't have a lot of extra
money to set aside. But I said, you got to
start some little side fund that's of strike fund, because
the airlines sooner or later are going to go on strike.
(10:56):
They all seem to and in the case of air
traffic controller, you you better put the money aside because
you know that the government's going to have shut downs
every so often. And I feel bad for them and
we need them, but they're young people. They don't have
I know when I was a young guy starting out
after college, I didn't have a dime, So you kind
(11:18):
of they're going to have to again. I go back
to you're going to have to figure out if you
really want to be an air traffic controller, how you're
going to survive and do that as well. And what's
happening is a lot of them have figured it out,
they went and got side jobs, and they're calling in sick.
So there was a bunch of delays over the weekend.
(11:39):
Eight thousand flights were delayed yesterday at twenty three airports
around the country. So it's getting to be more widespread.
And wait until after tomorrow when the normal paycheck doesn't
come in, there'll be even more sick calls. Also over
(12:00):
the weekend, there was a big rally here in New
York for Zoron Mendanni and AOC and Bernie Sanders were
there and the crowd was wild and they were all
they were all having a great time. I mean, well,
listen to this. Here's some of the people that attended
(12:21):
the event. It was over in Queens and people are
all excited about socialism.
Speaker 3 (12:28):
How do you describe the movement.
Speaker 1 (12:30):
I think it's electric.
Speaker 4 (12:31):
I think I haven't seen this many people mobilize for
a candidate in so long and so passionately, and I.
Speaker 1 (12:35):
Think that I'm really excited to be a part of that.
Speaker 4 (12:37):
Do you think Zorin Mandani could be the future of
the Democratic Party.
Speaker 1 (12:41):
I hope that he's the future of the Democratic Party.
Speaker 5 (12:44):
Voters say they want free childcare, free buses, and who
do they want to pay for it?
Speaker 6 (12:49):
The rich?
Speaker 2 (12:50):
Do you think you should tax the rich to pay
for the plan?
Speaker 4 (12:53):
I mean, I am not rich, so it's easy for
me to say yes, well he need Yeah.
Speaker 1 (12:59):
It was easy for her to say yes because she
wasn't rich, and so yeah, tax that other person. But
I just hope that there's people out there that think, Okay,
I'm not rich, but man, I'd like to be someday
and when I if I do work hard and get
some extra money, I don't want everybody else taking my
(13:20):
money away for them. But that's what it is. That's
what they want, and it's very popular. This has been
going on forever. That's not anything new. I know, the
socialism thing, and I want to get into this a
little bit because socialism is growing big time in this country.
Young people have always been more inclined to think socialism
rather than capitalism. But over the last decade two decade
(13:45):
and a half. People came out of college in two
thousand and seven, two thousand and eight during the Great
Depression and they couldn't get a job. And that was
two thousand and seven, two thousand and eight. So if yeah,
fifteen years ago, I presume they're doing okay today. But
they got a bad taste in their mouth right out
of college about the fact that what's this capitalism thing.
(14:08):
It doesn't seem to be working, not for me. That
was their attitude. So you got another generation out there
right now that is going I just want free stuff.
Everybody's always wanting free stuff. The number one most famous
popular word in the English language is free and the
(14:28):
other part. Whenever you take a poll, and this has
been going on in my entire life. You take a
poll and you ask people should we tax the rich more?
And the answer is overwhelmingly, like sixty seventy percent say
yes because they don't think they're rich. But if you
compare yourself to somebody else in another part of the world,
(14:48):
Americans are very rich, but not compared to you versus
that billionaire. So it was. It was in a stadium
holds thirteen thousand people in Queens and it was full.
But then again, it had Bernie and aoc as the
draw and Mim Donnie was there and the people were
all excited about it. But this movement, and this is
(15:11):
what I want to bring up with you, is that
the movement is growing. It just is. And I've told you.
But there's three major socialist candidates running for election next week.
One of them is Aron ma'am Donnie, and he gets
the most attention because he's in New York. He wants
(15:33):
to run he wants city run grocery stores, and he
wants free and fast buses. I don't know about the
fast bus thing, and about he wants free lawyers for
illegals that are in New York. In Minneapolis, there's a
very liberal mayor there. He's been there for a couple
(15:53):
of terms, but he's gotting a good run for his
money because there's a socialist by the name of Omar
Fatah who is wanting to fund non police programs, in
other words, change out the police or that the police
programs are reduced. He wants to keep homeless encampments, and
(16:13):
he wants to stabilize rent. Number three on the list
is my old hometown of Seattle. Katie Wilson. The mayor
of Seattle is a big Democrat and he definitely hangs
out on the left side of the aisle. Seattle has
become very very left. Well, there's a woman there named
Katie Wilson, and she is a big socialist. She wants
(16:41):
she wants to flow a one billion dollar bond for
affordable housing. She wants to install city owned solar panels.
And I have to laugh when I saw that, because
we're talking about in Seattle, where it's mostly cloudy most
of the time, so I don't know what she's gonna
do with the solar panel. And she wants to fund
(17:02):
an alternative to police so these people all have the
same idea about cutting back on police and free stuff
for everybody. Socialism has been tried for hundreds of years
and it has never worked. Josh Kraushawer talks about it.
Speaker 7 (17:21):
This is a war within the Democratic Party between the
mainstream and the socialist wing of the party. And in
cities that are very deep blue where the Democratic Party
is is pretty much the only game in town. You're
seeing the socialists actually getting momentum. Ma'm Donnie clearly the
favorite in New York City. Seattle, I think Katie Wilson,
(17:42):
a socialist, the favorite to be the next mayor of Seattle. Minneapolis.
The incumbent Jacob Prye may have a slight lead, but
he's in a very competitive race against Omar Fata, who
is a DSA deep blue, far left socialist. And you're
also seeing this talked about this on the show too.
Congressional primaries Graham Plattner in Maine, and you have these
(18:04):
candidates that are self identifying as socialists coming out of
the woodwork to run in many, many key races and
it comes as gallop. I mean, the latest polling from
Gallup show that sixty six percent of Democrats now view
socialism favorably, which is at nearly an all time high,
and more and more Democrats view capitalism unfavorably. So this
(18:26):
is the mood of the party. This is the environment
that they're swimming in.
Speaker 1 (18:30):
Yeah.
Speaker 7 (18:30):
Look, you heard at that Mamdani rally last night. What
got the crowd most animated. Tax the rich. And it
is a sentiment because a lot of younger voters in particular,
are feeling they're not getting ahead, They're struggling to pay rent.
There is this frustration out there. You heard this in
the presidential campaign. The issue for the Republicans was inflation.
(18:53):
For Democrats, they call it sort of the rising costs
and affordability. But it's basically the same thing that the
economy isn't working for the average voter. I mean, ultimately,
the Republican Party, President Trump is going to have to
get results, is going to have to show that his
economic policies are working. Democrats are trying to not just
exploit that, but the debate within the parties are about
(19:14):
economic policies and and tax the rich.
Speaker 1 (19:16):
Yeah, there is a battle going on in the Republican
Party and the Democrat Party. The Democrats they have a governor. Hochal,
New York governor, was at this event, but she looked
so uncomfortable. I mean, she was very because she's not
part of that part of the Democrat Party, but she
(19:37):
had to play along and so she endorsed zoron Donnie.
What all of these socialists are able to use is affordability,
and this is an area that I think the well,
that's another whole story about if Donald Trump. There's stories
about him wanting to run in twenty eight, and Steve
(19:59):
Bannon's talking about it, and the President was asked about it,
he said, I'd love to Now it's not going to happen,
but he loves yanking the chain of the media. They
are all in a dither about it today. Oh my gosh,
he's going to run in twenty eight. He even has
hats somebody made up for Trump in twenty twenty eight.
But regardless of all of that, whoever is running in
(20:22):
twenty eight is going to be faced with the question
about affordability. That's when Mandanni is running on. That's what
the woman in Seattle is running on. Is his whole
business about affordability. Things are expensive. I told you on Friday,
we got the Consumer Price Index numbers out not going
up a lot, it's not earth shattering, but it's going
(20:42):
up one tenth of a percent per month for the
last four or five months. It's just creeping higher. And
the problem is is that President Trump promised that he
would reduce costs and they're not going down. There's some
things that are going down, but there's a lot of
things that are going up. And as the result, the
(21:03):
whole question about affordability is what these socialists are running on?
Free buses, free this, free that. Well, the price of
beef apparently has really spiked. Scott linscom he is an
economist at the Cato Institute, so he's a libertarian. He's
also a law professor at Duke University, and he was
(21:27):
asked about these higher beef prices because the president is
allowing beef from Argentina to be sent to the United States.
And we played a clip from a beef farmer on
Friday about the fact that you're killing us, you're killing us.
And what President Trump is in this spot between a
(21:50):
hard spot and a rock, and that is he wants
the beef prices to come down so that the you
and me, as consumers of beef. Don't have a panic
about the cost of beef. On the other hand, the
cattle ranchers are getting killed by the lower prices. You're
Scott Lindscombe.
Speaker 5 (22:09):
Yeah, there are two main factors with b prices. One
is good old mother nature. You just have supply issues
in the United States where we're having the cattle herd
is at historic lows, and that means your domestic supply
is going to be low and your prices are going
to be higher. The other big thing, though, is unnatural,
(22:32):
and that is United States trade policy. Even before Trump,
the United States was actually pretty protectionist on allowing beef
imports into the country with an elaborate series of quotas
and other tariff measures. Trump comes along and slaps a
fifty percent tariff on one of the largest suppliers in
(22:53):
Brazil and doesn't relax any of those other tariffs, while
also of course applying global tariffs on beef from anywhere else.
So you put those two things together and it's a
recipe for higher prices in it.
Speaker 1 (23:07):
So the dilemma of the White House is facing is
they have raised tariffs on steel and aluminum other things
to try to protect US industries because therefore allows the
US industry to raise their prices and survive. But by
allowing foreign beef to flood our markets so that the
price of beef goes down, they're killing the beef producers
(23:30):
in this country. And well back to Scott Lunsgo and
Fry to figure that one out.
Speaker 5 (23:36):
I feel like I'm on a different planet when President
tariff Man is talking about how he's going to go
to imports to lower prices. This you hear economists cheering
but also sighing a bit when we hear this, after
so long of hearing that, you know, tariffs don't raise prices.
The reality, though, is that most beef comes from the
United States, and with continued tariffs on everywhere else in
(24:00):
the world, including Brazil, even an expansion of those quotas,
it won't do too much to alleviate prices. Maybe a
little pressure at the top, but we're not going to
get a return to those wonderful days of cheap steaks
and burgers.
Speaker 1 (24:12):
Yeah, sorry about that. If you like your stakes and burgers,
you're just gonna have to pay more. And I would
hope that the President, if he's going to really put
tariffs on to protect us industries and put tariffs don't
allow the Argentinians to put their beef here in the
US and compete with our with our cattle ranchers. So also,
(24:33):
I think it was on Friday, maybe it was still
on Thursday of last week. I played for you the
ad that really made President Trump mad. It was the
ad that Canada, actually it was the Province of Ontario
that created this ad that was Ronald Reagan talking about
trade and how Ronald Reagan was anti trade, embargoes, trade tariffs,
(24:58):
all of that he doesn't like, he didn't like terror. Well,
the problem is with ads, you can't have a four
minute ad. So they had to cut it down and
the part that was left off was edited out. And
I thought, well, to be fair, you should I played
the ad on Thursday or Friday of last week. To
(25:19):
be fair, I thought, I need to play the whole
four minutes because he talks about the fact that Ronald
Reagan did reluctantly impose some very specific tariffs on Japan.
This is nineteen eighty seven. Japan was the leader of
the world economically. They were on fire in a good way.
(25:43):
So I thought, let's play the whole ad and you
can hear everything that Ronald Reagan said, so you can
decide whether Ronald Reagan was a smart guy or whether
he was doing it wrong. Here's the ad. Sorry, here's
the radio address, not the ad.
Speaker 6 (26:00):
My fellow Americans. Prime Minister NAKASONI of Japan will be
visiting me here at the White House next week. It's
an important visit because while I expect to take up
our relations with our good friend Japan, which overall remain excellent,
recent disagreements between our two countries on the issue of
trade will also be high on our agenda. As perhaps
you've heard, last week, I placed new duties on some
(26:23):
Japanese products in response to Japan's inability to enforce their
trade agreement with US on electronic devices called semiconductors. Now,
imposing such tariffs or trade barriers and restrictions of any
kind are steps that I am loath to take, and
in a moment I'll mention the sound economic reasons for
(26:43):
this that over the long run, such trade barriers hurt
every American worker and consumer. But the Japanese semiconductors were
a special case. We had clear evidence that Japanese companies
were engaging in unfair trade practices that viholated an agreement
between Japan and the United States. We expect our trading
(27:04):
partners to live up to their agreements. As I've often said,
our commitment to free trade is also a commitment to
fair trade. But you know, in imposing these tariffs, we
were just trying to deal with a particular problem, not
begin a trade war. So next week I'll be giving
Prime Minister Nakasoni this same message. We want to continue
(27:25):
to work cooperatively on trade problems and want very much
to lift these trade restrictions as soon as evidence permits.
We want to do this because we feel both Japan
and the United States have an obligation to promote the
prosperity and economic development that only free trade can bring. Now,
that message of free trade is one I conveyed to
(27:47):
Canada's leaders a few weeks ago, and it was warmly
received there. Indeed, throughout the world, there is a growing
realization that the way to prosperity for all nations is
rejecting protects legislation and promoting fair and free competition. Now
there are sound historical reasons for this. For those of
us who lived through the Great Depression, the memory of
(28:10):
The suffering it caused is deep and searing, and today
many economic analysts and historians argue that high tariff legislation
passed back in that period, called the Smoot Hawley Tariff,
greatly deepened the depression and prevented economic recovery. You see,
at first, when someone says, let's impose tariffs on foreign imports,
(28:31):
it looks like they're doing the patriotic thing by protecting
American products and jobs, and sometimes for a short while
it works, but only for a short time. What eventually
occurs is first homegrown industries start relying on government protection
in the form of high tariffs, They stop competing and
stop making the innovative management and technological changes they need
(28:55):
to succeed in world markets. And then while all this
is going on, something even worse occurs. High tariffs inevitably
lead to retaliation by foreign countries and the triggering of
fierce trade wars. The result is more and more tariffs,
higher and higher trade barriers, in less and less competition.
So soon, because of the prices made artificially high by
(29:16):
tariffs that subsidize inefficiency and poor management, people stop buying.
Then the worst happens. Market shrink and collapse. Businesses and
industry shut down, and millions of people lose their jobs.
The memory of all this occurring back in the thirties
made me determined when I came to Washington to spare
the American people the protectionist legislation that destroys prosperity. Now,
(29:40):
it hasn't always been easy. There are those in the Congress,
just as there were back in the thirties, who want
to go for the quick political advantage, who risk America's
prosperity for the sake of a short term appeal to
some special interest group. Who forget that more than five
million American jobs are directly tied to the foreign export
business and additional millions are tied to imports. Well, I've
(30:04):
never forgotten those jobs. And on trade issues, by and large,
we've done well. In certain select cases, like the Japanese semiconductors.
We've taken steps to stop unfair practices against American products,
but we still maintained our basic long term commitment to
free trade and economic growth. So, with my meeting with
(30:28):
Prime Minister Nakasoni and the Venice Economic Summit coming up,
it's terribly important not to restrict a president's options in
such trade dealings with foreign governments. Unfortunately, some in the
Congress are trying to do exactly that. I'll keep you
informed on this dangerous legislation because it's just another form
(30:49):
of protectionism and I may need your help to stop it. Remember,
America's jobs and growth are at stake until next week.
Thanks for listening, and God bless you.
Speaker 1 (31:00):
That was Reagan did a Saturday radio address and you
heard what he said that he's for free trade, but
he doesn't want Congress to restrict him tie his hands
from being able to use trade tariffs in specific products.
In nineteen eighty seven, it was Japanese semiconductors that were
flooding this market. So I agree we should let Donald
(31:21):
Trump have the authority to go out and put tariffs
on specific products where they are hurting American industries. But
it's not that it's a broad based every product coming
into this country now. But it's interesting to listen to
Robert Reagan on this day where the President is in
Japan and he's talking to the new prime minister there,
(31:44):
and he's going on to meet South Korea and then
President she on Thursday, which brings up Scott Bessant the
Treasury Secretary sounded very positive, very optimistic about a trade
agree with China that he reached over the weekend.
Speaker 8 (32:03):
President Trump gave me a great deal negotiating leverage with
the threat of the one hundred percent chariffs on November first,
and I believe we've reached through very substantial framework that
will avoid that and allow us to discuss many other
things with the Chinese.
Speaker 1 (32:23):
So all of a sudden, we've got optimism. The market
liked it today. Mohammade l Arii in a very prominent economist.
He reacted to the news out of China this way,
I am.
Speaker 9 (32:35):
I think we're going to see a major de escalation
of the tensions. We're also going to see some gains
for the US on some long standing issues of market access.
Are we going to see a complete resolution of China
US tensions. No, but this is a process of de
escalation after we've been in a process of escalation, and
(32:57):
you see that clearly reflected in the market today. And
I think if you look more broadly, what the US
has achieved on tariffs was something that most economists didn't
think was going to happen. We thought that there would
be massive retaliation against the US. There hasn't been the UK.
(33:18):
A number of Asian countries have all signed framework agreements.
The only outstanding ones on India, Canada, and China, and
does clear progress on China. Secondly, we're collecting a lot
of tariff revenues on an annual basis. We're now looking
at three hundred billion of tariff revenues. Third the impact
(33:39):
on inflation has been limited. So if you look at
what people have been worried about, the US has gotten
to a ferry trading system without disadvantages that people thought
would materialize. Now it's early days, so one has consolidate
these gains. But it's a different outcome from where many economists,
including me, thought we would be.
Speaker 1 (34:00):
Yeah, I'm me too. I'll throw my head in with Mohammad.
General Jack Keene talks about the talks with China from
the military standpoint.
Speaker 3 (34:09):
Well, I think there are a number of issues on
the table, but in particular, I mean the president is
traveling to this part of the world making three stops.
A critical stop in japanish to have a closer relationship
with this new Prime minister for sure, being Abi's protege,
and Abi had the closest relationship with our president than
(34:30):
any other international figure. And the second thing is is
obviously the meeting with President she and he comes into
this to the region itself and specifically with the meeting
with she literally with the wind on his back. I mean,
everybody recognizes what has happened in the Middle East that
the United States has pushed back around many years and
(34:52):
its proxies as well, and it has achieved a hegemonic
dominance we haven't had there for decades. He also squeezing
Russia over the Ukraine and putting considerably more pressure. These
are two close partners of President she Iran and Russia,
and President she is very much aware of this dominant
(35:14):
position that President Trump has and very much aware obviously
with the economic pressure that President Trump is putting on She.
Remember She's been in power over twelve years. The only
president that has ever confronted him is President Trump. He
did it in the first term, and he's doing it
already now in his second term. And we're hearing good news.
(35:38):
There's likely a framework agreement over things going forward. Economically,
will Taiwan be on the table and G's aggressiveness in
the region. Absolutely, it makes sense. Fetanol and China's pollution
of the United States and directly killing people with that drug.
(36:00):
Providing all the pre ups for the manufacturering that drub
in Mexico is going to be on the table as well.
Think likely we're going to get some kind of an
agreement here.
Speaker 1 (36:10):
Yeah, And the markets responded positively when they open this
morning because the framework, it's not an agreement, but the framework,
according to Scott Bessen, is further help to stem the
flow of fentanyl. China to buy a substantial amount of
US soybeans, China could delay the rare earth export control
(36:36):
in other words, let us have rare earth materials that
we want, and also finalize the TikTok deal. So that's
all on the table for the President when he gets
to South Korea and meets with President she in South
Korea on Thursday. Like I said, the markets liked it
right out of the gate this morning and finished all
(36:58):
very positive. Now up three hundred thirty seven, the now
at forty seven thousand and five forty four, Yeah, and
p up eighty three. The Nasdaq up four hundred and
thirty two points. The price of gold fell one hundred
and forty dollars down to thirty nine ninety seven, and
(37:19):
the price of oil was up just a smidgeon to
sixty one dollars for a barrel of oil. That's it
for today. Thank you for coming by. I have a
wonderful rest of your day. We'll try this again tomorrow.
Look to see you then
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