INTERESTING. PETER, LIVE AT THE WHITE HOUSE,
THANK YOU.
THANK YOU. JOHN.
JOHN. >> John: NOW TO LARRY KUDLOW,
HOUSE OF "KUDLOW ON FOX
BUSINESS."
BUSINESS." INFLATION UP 7%, HIGHEST SINCE
1982.
1982. WHAT AND WHO IS TO BLAME FOR ALL
OF THIS?
OF THIS? REWIND THE CLOCK TO JANUARY 3RD
AND GET PRESIDENT BIDEN’S TAKE
ON IT.
ON IT. >> A HANDFUL OF GIANT COMPANIES
DOMINATE THE MARKET.
AND TOO OFTEN THEY USE THEIR
POWER TO SQUEEZE OUT SMALLER
COMPETITORS AND STIFLE NEW
ENTREPRENEURS MAKING OUR ECONOMY
LESS DYNAMIC, GIVING THEMSELVES
FREE REIN TO RAISE PRICES,
REDUCE OPTIONS OR EXPLOIT
WORKERS.
WORKERS. >> John: THE PRESIDENT IS SAYING
IT’S THE GREEDY COMPANIES
RESPONSIBLE FOR INFLATION.
WHAT DO YOU SAY?
>> I SAY IT’S UTTER NONSENSE.
THAT’S WHAT THE LEFT WINGERS
ALWAYS SAY, BLAME BUSINESS, YOU
KNOW.
KNOW. IT’S NOT TRUE.
THE CULPRITS HERE IS TOO MUCH
FEDERAL SPENDING, STARTING WITH
THE MARCH BILL, THE 2 TRILLION
BILL, AND THEN CONTINUING THE
FEDERAL RESERVE HAS ENABLED AND
CODDLED THE FEDERAL SPENDING
WITH MASSIVE GROWTH IN THE
NATION’S MONEY SUPPLY.
THOSE ARE THE PRINCIPAL CAUSES.
THE PANDEMIC STUFF AND THE
SUPPLY SHORTAGES ARE PART OF IT
BUT FRANKLY ONLY A SMALL PART OF
IT.
IT. AND HERE IS THE THING.
YOU ARE SEEING PRICES GO UP
ACROSS THE BOARD.
THE DIFFUSION OF THESE PRICE
HIKES.
HIKES. I MEAN, TODAY’S REPORT, BY THE
WAY, 7% OVER THE LAST 12 MONTHS,
THREE MONTHS, THE NEAR TERM, IS
9.1%.
9.1%. SO YOU ARE ON THE WRONG TREND,
WE ARE GOING UP, NOT DOWN.
BUT YOU LOOK AT EVERY SINGLE
THING HERE.
THING HERE. HOUSING, SHELTER, CLOTHING,
AUTOMOBILES, HEALTHCARE,
AUTOMOBILES, HEALTHCARE, EDUCATION, COMMODITY PRICES,
THIS CAN ONLY HAPPEN WHEN THERE
IS TOO MUCH MONEY CHASING TOO
FEW GOODS.
FEW GOODS. THAT IS WHY JOE MANCHIN FROM THE
VERY BEGINNING HAS ARGUED THE
INFLATION FROM LAST WINTER’S
BILL WAS BAD ENOUGH.
YOU DON’T WANT ANOTHER 5
TRILLION.
TRILLION. THOSE KINDS OF NUMBERS HAVE
KILLED THE SO-CALLED BUILD BACK
BETTER BILL.
BETTER BILL. THEY HAVE KILLED IT.
THE BILL IS DEAD.
WE ARE SAVING AMERICA.
WE HAVE KILLED THE BILL.
THEY ARE ALSO GOING TO KILL THIS
FILIBUSTER, PHONY FILIBUSTER
STUFF ON ELECTION REFORM WHERE
BIDEN HAS INSULTED EVERYBODY ON
THE OTHER SIDE OF THE AISLE BY
TALKING ABOUT JEFFERSON DAVIS,
THE FORMER HEAD OF THE
CONFEDERACY.
CONFEDERACY. IT’S JUST NONSENSE.
ONE MISTAKE AFTER ANOTHER.
THEY HAVE TO OWN IT, OWN IT.
SPENDING IS THE PRINCIPAL CAUSE
FINANCED BY THE FEDERAL RESERVE.
AND JAY POWELL WAS UP THERE
YESTERDAY AND TALKING ABOUT
CLIMATE CHANGE?
CLIMATE CHANGE? HUH?
HUH? IT’S NOT ABOUT CLIMATE CHANGE,
THIS IS ABOUT POURING NEW MONEY
INTO THE ECONOMY AND HE’S GOING
TO HAVE TO STOP IT AND BECAUSE
THESE NUMBERS ARE LIKELY TO GET
WORSE, NOT BETTER THIS YEAR, THE
FED IS GOING TO HAVE TO BE
TOUGHER.
TOUGHER. THEY ARE GOING TO HAVE TO TAKE
THE PUNCHBOWL AWAY FASTER AND
THAT’S GOING TO BE DIFFICULT FOR
THE ECONOMY.
THE ECONOMY. I WOULD SAY THE SECOND HALF OF
NEXT YEAR.
NEXT YEAR. >> Sandra: DIFFICULT FOR THE
MARKET.
MARKET. >> YES, DIFFICULT -- LOOK, I
LIKE TO BE AN OPTIMIST AND THE
CAVALRY IS COMING IN THE MIDTERM
ELECTIONS.
ELECTIONS. SO THAT’S GOOD.
AND WE HAVE KILLED THIS CRAZY
BILL.
BILL. SO I’M AN OPTIMIST LONGER TERM.
BIG INFLATIONS ARE NOT SOLVED BY
SOFT LANDINGS OR A LITTLE BIT
HERE AND A LITTLE BIT THERE.
THERE IS GOING TO BE SOME PAIN
IN THE PROCESS.
>> Sandra: LARRY, IF THE FED WAS
GOING TO BE TOUGH, TRANSITORY,
THEY GOT RID OF THAT WORD, BUT
THEY LOOK AT THE CORE PRICES AND
STRIP OUT THE VOLATILE PRICES
THAT AFFECT THE EVERYDAY FAMILY.
THE PRICE INCREASES WE HAD ON
THE SCREEN THAT IS INCREDIBLE.
IF YOU GO TO THE GROCERY STORE
AND YOU CAN FIND SOMETHING ON
THE SHELF THAT YOU ARE LOOKING
FOR, THE PRICE HAS GONE UP
DOUBLE DIGITS.
DOUBLE DIGITS. LARRY THERE, IS NO WORSE FEELING
FOR YOUR FAMILY WHEN YOU GO TO
THE GROCERY STORE AND THE
SHELVES ARE EMPTY AND THIS IS
HAPPENING ACROSS THE COUNTRY.
I DON’T KNOW, IF YOU BELIEVE TO
YOUR POINT THE WHITE HOUSE WILL
OWN THIS AND ACKNOWLEDGE THIS IS
ACTUALLY HAPPENING?
ACTUALLY HAPPENING? >> NO, THEY WOULD RATHER BLAME
BUSINESSES, RATHER BLAME LARGE
AND SMALL -- THERE’S NO
EVIDENCE, BY THE WAY.
YOU KNOW, THEY MAKE THESE
CHARGES AND THEN THROW IT UP TO
THE JUSTICE DEPARTMENT OR THE
FEDERAL TRADE COMMISSION.
THERE IS NO EVIDENCE OF
PRICE-FIXING OR PRICE GOUGING.
NONE, 0.
NONE, 0. ASK THEM FOR SPECIFICS, THEY
HAVE NO SPECIFICS.
IT’S JUST THE LEFT WING ATTACK
ON BUSINESSES WHICH IS PART AND
PARCEL OF BIDEN’S SO-CALLED
VISION.
VISION. BUT SANDRA, LOOK AT THIS,
TAKE -- LOOK, FOOD AND ENERGY IS
EXTREMELY IMPORTANT.
EXTREMELY IMPORTANT. GASOLINE AND GROCERIES.
BUT TAKE THAT OUT, GO AHEAD,
TAKE THAT OUT.
LAST THREE MONTHS YOU ARE UP
SIX. -- 7% AT ANNUAL RATE.
SO IT’S SILLY TO TAKE IT OUT.
I AGREE WITH YOU ABOUT THAT.
ALL’S I’M SAYING IS, THOUGH, THE
GOVERNMENT, THE ADMINISTRATION
AND THE FED IS NOT TOGETHER.
THEY DON’T OWN THIS, THEY DON’T
HAVE A GAME PLAN.
THE ONLY WAY YOU ARE GOING TO
STOP INFLATION OF THIS KIND IS
TO STOP GOVERNMENT SPENDING AND
STOP MONEY PRINTING.
THIS IS REAL SIMPLE BASIC STUFF.
WE HAVE HEARD A LITTLE STUFF, A
LITTLE MORE AGGRESSIVENESS FROM
JAY POWELL YESTERDAY AT THE
FEDERAL RESERVE BUT YOU HAVE THE
SENATE MEMBERS TALKING ABOUT
CLIMATE CHANGE AND THE FED, HUH?
CLIMATE CHANGE IS LIKE 50 TO
100-YEAR TRENDS.
100-YEAR TRENDS. WE ARE TALKING ABOUT WHAT’S
GOING TO HAPPEN IN THE NEXT
COUPLE OF MONTHS ON GROCERIES.
>> John: AND THEY STILL WANT TO
PASS THE BUILD BACK BETTER PLAN
IF THEY GET THE CHANCE.
GREAT TO SEE YOU, SEE YOU THIS
AFTERNOON AT 4:00, MY FRIEND.