Episode Transcript
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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 we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.
Speaker 2 (00:16):
Affordability. Is it a hoax or no hoax?
Speaker 3 (00:22):
Okay, this is the latest, the latest survey that's out,
And again I want you to take all of these surveys.
You always have to take them with a grain of salt.
I took a look at how the questions were asked
and it seems to be okay. But again, again, take
these things with a grain of sault.
Speaker 2 (00:41):
Always. Inflation looks to be sapping some.
Speaker 3 (00:44):
Of America's holiday sheer as they head out to Bay
gives US Christmas season. This is CNBC's All America Economic Survey.
The survey found the high cost of goods has emerged
as a major factor affecting how much so ers spend
and where they spend, suggesting that inflation of the past
(01:05):
several years and the rise and import goods prices from
tariffs are being felt at the Checkout Counter survey of
one thousand people nationwide. Margin of error plus or minus
three found that the high cost of goods is the
top reason Americans are spending less in a first for
(01:27):
the survey, the main reason they are spending more, they're
saying is because stuff is more expensive.
Speaker 2 (01:34):
Okay.
Speaker 3 (01:35):
The ones that are saying that they're spending more, Okay,
they're spending more because items are more expensive.
Speaker 2 (01:44):
Now, this.
Speaker 3 (01:46):
Survey echoes this is CNBC survey. We've seen surveys from
Fox from New York to various different places, and they're
all coming out about the same President continues to hammer
and he's also got his his people out there, the
(02:08):
sicophants at Fox News and Fox Business that are continued
to bang the drum that it's some sort of hoax
and everything is awesome in the economy.
Speaker 2 (02:18):
Is just fine.
Speaker 3 (02:20):
Very disappointed quite frankly, it's actually Maria Barnerrome, she was
on Hannity's program, brought her on and she was making
the point that you know, well, the economy is doing
really well and it's just really not that bad, and
I don't think that there's any sort of affordability crisis.
Then she also had Rocanna on her program, and she
(02:45):
was right in this sense.
Speaker 2 (02:46):
She was pressing.
Speaker 3 (02:47):
Rocanna, it's a Democrat lib from from California. Again, he's
got some decent points from time to time that again
his worldview is skewed through the en of government, like
many people on the left in my opinion, But you know,
reoppressed him, and rightfully so on this time was that
(03:09):
you know, a lot of this happened during the Biden years.
Speaker 2 (03:15):
She's not wrong, she's not wrong. Prices haven't come down.
Speaker 3 (03:23):
And again we are told, and this is one of
the great myths that are out there, is that prices
cannot come down. Deflation is horrible and you always get
these people. You know what, defration, that's what happened during
a great depression. Can't allow that to happen again. No,
it's okay, it's okay. If the items that you know,
(03:48):
I've explained this before, everyday items, the bare necessity items,
the things that people have to buy on a regular basis,
and they had no choice. Okay, what are these things
you have to eat? You have to put gas in
your car, and that has come down. Your housing costs,
(04:09):
your insurance costs, all of these things that you have
to spend money on, utilities, you name it. You don't
have a choice. You do have a choice and whether
or not you're gonna go out and buy yourself a
new laptop unless your laptop breaks need for work.
Speaker 2 (04:24):
You follow here.
Speaker 3 (04:26):
Certain things you can put off Okay, Yeah, you can
put off eating if you want to do a little
intermittent fasting. But you still have to buy food okay,
have to have housing okay, you want to live on
the streets. So these are the things that actually matter.
And I've made this point. The idea that the price
is for these things can't come down. It's going to
(04:47):
be bad for the economy if they do come down.
Is absurd. It's absurd, it really is. You know, you want,
you know, the prices of certain and things to come down,
or you know, based upon a myriad of different reasons,
you know that you can have it more competition. We
(05:08):
don't have that with these bare necessity items, and we
put ourselves in this position, and this is why these
things are high. So yes, yes, when it comes to
those items, there is a bit of an affordability crisis.
Now again, people are also complaining about, oh, you know,
my Barbie doll costs this last year, it's that much
more this year.
Speaker 2 (05:28):
Yeah, No one likes that. I don't like that.
Speaker 3 (05:31):
I railed against that too, But really what hits people
upside the head are the bare necessity items. We've gotten
to this point in time by, quite frankly, just the
way we handle monetary policy here in this country. They
(05:54):
put this in a perspective for you. I'm going to
go back again George W. Bush's presidency and in two thousand.
In two thousand, our debt was fifty five percent of GDP.
It's now at one hundred and twenty one percent. Get
(06:17):
get dryms around that. I know it's it's gonna be
twenty twenty six, but you know again, I again, it
was married in two thousand. Very vivid memories, very vivid
memories that year. Yeah, Yankees beat the Mets in the
World Series that year. Anyway, fifty five percent of GDP,
(06:39):
it's now at one hundred and twenty one percent of GDP.
It costs over trillion dollars a year to service our debt.
It's gone from Bush to Obama to Trump to Biden
back to Trump. The trajectory hasn't changed. When you print
(07:05):
that much money, guess what the value of your currency
is going to drop? And unless wages are steamrolling ahead
of that, you are going to be caught behind. Ron
Paul put out interesting statement this past weekend. God bless him,
(07:27):
true national treasure. Both Democrats and Republicans are looking in
the wrong places for the cause and cure of the
affordability crisis. Not simply the prices are too high, making
the cost of living excessive. That is an effect, for sure,
But in order to change in effect, one must accurately
(07:49):
diagnose the cause. By the way, he's a doctor, the
affordability crisis is caused by government spending way beyond its
means to the point where it can never pay its debts.
This is coupled with the federal reserve that enables this
type of behavior by counterfeiting dollars and price fixing interest rates.
The solution requires an honest assessment of the problem. Simply
(08:12):
subsidizing everything with more government large ass is no answer
to the cost of living problem. An increase in the
cause will simply increase the effect. Prices will continue to rise.
Speaker 2 (08:24):
So point that.
Speaker 3 (08:27):
Again, for decades here on the program, I've tried to
get across to people, and unfortunately, you know, most Americans
are like la la la la la la la. Markowski
is talking. Ron Paul's talking. I'm not listening. I want
more free government money. They actually believe that the government
(08:49):
dumping more money, the government subsidizing something is going to
make the price come down, when the inverse is always
the case.
Speaker 2 (08:56):
Again, you take a look at.
Speaker 3 (09:00):
Three aspects, three things, whether education, housing, healthcare, government subsidizes
the crap out of those things, and the prices have skyrocketed.
Speaker 2 (09:12):
It's just that simple. Ron Paul goes on.
Speaker 3 (09:17):
What is not affordable is the constant depreciation of the
dollar that results from showering more money and credit on
special interests and by deceiving the people into thinking that
it's beneficial, it's really economic nonsense. Allowing the government to
add greater mischief with wage and price controls, financing the empire,
(09:38):
and most of all, the steady, deliberate debasement of the
currency only pours more gasoline on the inflation fire. It
guarantees a serious correction that has already begun.
Speaker 2 (09:55):
I've been.
Speaker 3 (09:57):
Talking about this, Ron Paul's been talking about Ran Paul.
Tom Coburn used to talk about this as well. And
it's laid out right in front of everyone right now,
right now, everything everything, I'm not I'm said, what's gonna happen?
Speaker 2 (10:20):
Is happening? And what are people clamoring for.
Speaker 3 (10:28):
More? You're looking You're looking to Washington, DC looking for
more spending more hand that's gonna solve the problem. No way,
no how, it doesn't work that way. I was happy
(10:50):
to see and I know I've been championing this gentleman's
cause for some time. Uh Rohnda Santis is out and about.
He's pushing states to champion a balanced budget amendment again,
constitutional amendment forcing forcing Congress to actually do their job
(11:14):
and balance the budget. I made this suggestion many many
moons ago. When it came to this and the conversation
comes up about paying taxes. I used to live in
a very very high tax state, the state of New York.
The thing about spending money, this is for me. If
(11:40):
I spend money on something, I work hard, and I
spend my hard earned dollars something, I want to know
that exactly I feel like I received value for what
I spent. It was worth my while.
Speaker 2 (11:55):
A money.
Speaker 3 (11:56):
Amount of taxes you pay in the state of New York,
property taxes, state income taxes for what for what?
Speaker 2 (12:04):
You know live on Long.
Speaker 3 (12:04):
Island, you know pothole every five feet. They don't fix
the roads. I mean, it's just it's one disaster. Favorite
So you're spending money and you feel like you're not
getting any value. And that's one thing I don't like
being ripped off. I don't know about you. I don't
like it. We talk about right now. You know all
(12:24):
the spending that government goes, all the money we sent
to Washington, d C. Do you feel like I feel
like you're getting value? This's some Do you feel like
you're you're getting your money is worth? And what you're
spending in Washington, DC? When you see all of the waste,
all the money it's thrown away, no accountability. You see
the fraud that takes place Medicare, Medicaire happens in Minnesota,
(12:44):
happens here, happens there, everywhere. Money just flushed down the toilet.
Speaker 2 (12:50):
I am.
Speaker 3 (12:53):
I came up with this again every single time. I
every single time. You know, this is how you approach
a liberal when they talk about raised taxes. You want
to raise my taxes? Fine, okay, why don't we compromise you.
We'll cut a deal. You want to raise my taxes.
You balance the budget. You balance the budget, balance the budget.
(13:19):
We work to eliminate waste and fraud. You got to
bring back Doge. You got to bring back Doge and
all of my additional tax dollars, these taxes that you
are going to raise, that money has to be spent
on lowering our debt. So we're not going to have
any deficits because you're going to balance the budget. So
(13:41):
all additional tax revenues are going to be applied towards
lowering our debt. Now what do you think that would
do if the United States all of a sudden had
our proverbial come to Jesus moment when it comes to
fiscal sanity, and we start paying down our debt. Do
(14:07):
you have any idea what interest rates would collapse for?
It would be great. All of a sudden, people like,
holy crap, the United States is actually going to be
fiscally sane. You don't need a ft of reserve would
take care of itself. Mortgage rates or drop credit, everything
(14:28):
would drop just by being responsible in the same way,
In the same way that if you are responsible and
if you have a fighter score in the eight hundreds,
guess what, things are much better for you.
Speaker 2 (14:46):
It's the same concept, but no, we're not.
Speaker 3 (14:54):
We're not getting any of that, not getting any event.
You know, they threw Elon Musk out the door. You know,
we got banging back and forth when it comes to
whether or not. And I still believe, and I hope
I'm wrong. I hope I'm wrong. I do think that,
(15:16):
you know, probably come maybe Thursday evening, Friday evening, late
in the night, they'll pass some emergency extension of COVID
era Biden healthcare subsidies again, the extension that you've actually
got Republicans signing off on three years worth of.
Speaker 2 (15:35):
COVID five years ago, COVID you.
Speaker 3 (15:39):
Know, enhanced tax credit bull crap for Obamacare to the
tune of a half a trillion dollars.
Speaker 2 (15:49):
Yeah, you got Josh Holly.
Speaker 3 (15:50):
Signing off on that. You got Lisa Murkowski. Uh, what's
the other guy there from Alaska? You got and let's
say Susan College.
Speaker 2 (16:00):
Yeah. Yeah, they're signing off on this. So that's my prediction.
Speaker 3 (16:06):
And I guess we're going further into debt.
Speaker 2 (16:13):
Again.
Speaker 3 (16:15):
It's not it's really not a complex problem to solve.
You just don't have people in position of power that
are willing to do it. And each and every one
of us. If we want to really change things here
in this country, you have to champion people that want
(16:38):
to balance the budget, that want to do to take
these necessary steps, and you have to hold the people
that accountable that are unwilling to do that, that want
to continue to just print and print and print and spend,
because again, thirty years, thirty years, the value of your
(16:58):
dollar has dropped by fifty four percent. Watchdog on Wallstreet
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