HAPPY ..
..
♪ LARRY:HELLO, FOLKS, WELCOME
TO CODE LOW.
I AM LARRY KUDLOW.
TIME TO STOP TIGHTENING FED
MONETARY POLICY AND START
TACKLING FEDERAL BUDGET POLICY
WHICH IS OUT OF CONTROL.
PRESIDENT BIDEN TELLS US HE CUT
THE BUDGET DEFICIT BY
$1.7 TRILLION, WAS AWARDED THE
BOTTOMLESS PART NOKIA BY GLENN
KESSLER.
THE CONGRESSIONAL BUDGET OFFICE
CAME OUT WITH $1.5 TRILLION
INCREASE IN THE BUDGET DEFICIT,
SPENDING IS RUNNING $400
BILLION ABOVE LAST YEAR AND THE
DEFICIT IS CLOSER TO $2
TRILLION SO IF YOU WANT TO PAVE
THE WAY FOR LOW INFLATION AND
STRONGER ECONOMIC GROWTH AND
SPOTLIGHT SHOULD TURN FROM THE
FEDERAL RESERVE TO THE FEDERAL
GOVERNMENT, THE CHART DRAWN UP
BY THE COMMITTEE TO UNLEASH
PROSPERITY HOTLINE SHOWS HOW
MUCH GROWTH HAS PLUNGED IN THE
LAST TWO YEARS.
THE RELATIONSHIP WITH INFLATION
IS FAR FROM PERFECT BUT IT DOES
SUGGEST INFLATION WILL COME
DOWN.
THE TREASURY YIELD CURVE IS
UPSIDE DOWN AND COMMODITY
PRICES CONTINUE TO WEAKEN.
THE LATEST READING FROM THE
CPI, 4.
9%, STILL TOO HIGH, BETTER THAN
1.9%, THE PRODUCER PRICE INDEX
CAME IN AT 2.3%, THAT COULD BE
WHERE THE CPI IS HEADED AND
IMPORT PRICES HAVE FALLEN 4.8%.
THAT’S WHY I SAY NOW IS THE
TIME FOR THE FED TO PAUSE AND
CONGRESS TO GET MOVING ON
SPENDING RESTRAINT.
ONE THING I LIKE ABOUT KEVIN
MCCARTHY’S DEBT CEILING AND
BUDGET REFORM PLAN IS IT NOT
ONLY LOWERS THE SPEED LIMIT ON
FEDERAL SPENDING GROWTH BUT HAS
TWO IMPORTANT SUPPLY-SIDE
ECONOMIC GROWTH POLICIES.
ONE OF THE PERMITTING REFORM
CALLED HR ONE WHICH WILL LOWER
THE COST OF ALL SOURCES OF
POWER AND CREATE A LOT OF NEW JOBS.
JOBS.
THE SECOND IS THE WORK
REQUIREMENT PROVISION THAT WILL
INCREASE LABOR FORCE
PARTICIPATION AND CREATE -- AND
REDUCES WELFARE, TOO FEW GOODS.
AND TO PRODUCE MORE OF MORE
GOODS AND SERVICES WHILE THE
FED HAS REDUCED THE SUPPLY OF
MONEY.
HENCE INFLATION WILL FALL MORE.
SUPPLY-SIDE REFORMS PUT IN A
SPEED LIMIT ON SPENDING BUT
STOPPED THE INCREDIBLE BIDEN
PROLIFERATION OF REGULATIONS
THAT IS STRANGLING ENERGY AND
BUSINESS THROUGHOUT THE
ECONOMY.
THEN THERE IS THIS ABSOLUTE
INSANITY OF THE NEWLY PROPOSED
EPA RULE THAT WOULD BE THE
DEATH SENTENCE FOR FOSSIL FUEL
POWER PLANTS.
THIS WILL BE A DEATH SENTENCE
FOR THE WHOLE ECONOMY.
THESE RADICALS AT THE EPA WILL
CUT POWER BY 50% ACCORDING TO
SOME ESTIMATES, 50%.
HOPEFULLY THE WHOLE THING IS
UNCONSTITUTIONAL.
THE BIDEN CENTRAL PLANNERS THE
LAST TWO YEARS, THAT THE KEY
BECAUSE OF INFLATION.
I DON’T THINK THE DEBT CEILING
IS A FACTOR FOR FINANCIAL
MARKETS.
JANET YELLEN SAID JUNE 1ST BUT
THE CBO SAID WITH ANY LUCK,
JUNE 15TH, CORPORATE TAX
REVENUES THE FEDERAL GOVERNMENT
CAN GET THROUGH THE MONTH OF
JULY.
IN ANY EVENT THERE’S A LOT OF
GOOD STAFF WORK GOING ON
BETWEEN THE WHITE HOUSE AND
CONGRESS AND THE POSSIBILITY IS
STRONG BUT A FINAL DEAL WILL
INCLUDE, GET THIS, A COVID
CLAWBACK, ENERGY PERMITTING,
AND WORK REQUIREMENTS ALONG
WITH A SPEED LIMIT ON SPENDING
GROWTH.
I SAID ALL ALONG KEVIN MCCARTHY
HAS THE WHIP HAND AND HIS
CONFERENCE WILL STICK WITH IT.
I THINK FEDERAL RESERVE ON
INTEREST RATE COMBINED WITH AN
INCREASE IN THE DEBT CEILING,
WITH NEW POLICY REFORMS WOULD
BE VERY BULLISH IN THE STOCK
MARKET AND THE ECONOMY, NO
DEFAULT, THERE WILL BE BETTER
GROWTH.
A LOT BETTER THAN THE 0.9%
RECESSION PRONE GDP OF THE LAST
15 MONTHS.
INFLATION WILL CONTINUE TO
EASE.
LET ME INJECT THE FINAL
THOUGHT.
ABSOLUTELY BEAUTIFUL SPEECH BY
FED GOVERNOR CHRISTOPHER WALLER
WHICH OPENS UP LIKE THIS.
I WILL QUOTE.
CLIMATE CHANGE IS REAL, BUT I
DO NOT BELIEVE IT POSES A
SERIOUS RISK TO THE SAFETY AND
SOUNDNESS OF LARGE BANKS OR THE
FINANCIAL STABILITY OF THE
UNITED STATES.
I BELIEVE RISKS POSED BY
CLIMATE CHANGE ARE NOT
SUFFICIENTLY UNIQUE OR MATERIAL
TO MERIT SPECIAL TREATMENT
RELATIVE TO OTHERS.
MY ROLE IS NOT TO BE A CLIMATE
POLICYMAKER.
I MUST FOCUS ON FINANCIAL
RISKS.
I GET IT.
FED SPEECHES, NOT USUALLY GOOD
SIDE READING BUT HONESTLY GOT
TO GET A HOLD OF THIS.
THE FEDERAL RESERVE.GOV, YOU
WANT TO READ THE MOST SENSIBLE
MONETARY SPEECH MAYBE IN
HISTORY.
SAVE AMERICA, READ CHRISTOPHER
WALLIN, SAVE AMERICA, PAST THE MCCARTHY BILL.