WE ARE LIVE AND RIGHT HERE SO WE
HOPE TO SEE YOU MONDAY.
LARRY: HELLO, FOLKS, WELCOME TO
"KUDLOW."
I’M LARRY KUDLOW.
I’LL BET YOU DIDN’T KNOW THAT ON
JANUARY 19, THE U.S.
GOVERNMENT’S DEBT LIMIT IS GOING
TO HIT ITS CEILING.
THAT’S NEXT THURSDAY.
PLEASE MARK IT ON YOUR CALENDAR.
ACTUALLY NOT THAT BIG A DEAL.
THE U.S. GOVERNMENT IS NEVER
GOING TO RUN OUT OF MONEY
BECAUSE ITS CENTRAL BANK
CONTROLS THE PRINTING PRESS.
THINK OF IT AS YOUR PERSONAL
COMPUTER PRINTER.
UNCLE SAM NEVER RUNS OUT OF INK.
WHERE AM I GOING WITH THIS:STAY
WITH ME.
IN FACT WHAT HAPPENS IS THE U.S.
TREASURY SECRETARY FINDS A WHOLE
BUNCH OF SPARE CASH THROUGHOUT
THE GOVERNMENT THAT WILL FINANCE
ALL THE BUDGET SPENDING.
THEY USUALLY DO IT BY DELAYING
RETIREMENT MONEY FOR FEDERAL AND
MILITARY STAFF BECAUSE THOSE
FUNDS RUN BIG YOU ARE PLUS, THEY
ALWAYS HAVE MONTY SEE THE MONEY
IS PAID BACK LATER INTO THE FUND
SO NO ON LOSE.
THE DEBT IS MUCH HIGHER THAN OUR
ENTIRE ECONOMY.
GDP IS $23 TRILLION.
SO EVEN THE MORE ACCURATE NUMBER
WHICH IS MARKETABLE DEBT IN
PUBLIC HANDS, THOSE ARE THE
BONDS THAT TREASURY AUCTIONS
EVERY WEEK.
YOU MAY OWN SOME IN YOUR
RETIREMENT ACCOUNT.
EDGE PUBLICLY HELD DEBT IS
COMING UP TO $24 TRIM AND THAT’S
NOT GOOD EITHER.
THE NEW REPUBLICAN CONGRESS HAS
SAID WITH GREAT CLARITY THAT IT
WILL NOT PERMIT ANY AUTOMATIC
INCREASES IN THE DEBT LIMIT
UNLESS AND UNTIL THERE IS A
SATISFACTORY REDUCTION IN BUDGET
SPENDING.
AND THEY ARE RIGHT.
LATER ON IN THE SHOW WE’LL TALK
TO KEVIN HASSETT ABOUT WHY
CONGRESS SHOULD PREPARE FOR A
HISTORIC SHOWDOWN COMING UP.
MENTS JOE BIDEN DEMOCRATS WILL
DO EVERYTHING THEY CAN TO POINT
THE FINGER AT THE GOP HOUSE AND
BLAME THEM FOR DEFAULTING ON THE
DEBT OR SHUTTING DOWN THE
GOVERNMENT.
MY RESPONSE TO ALL THAT IS SO
WHAT.
FIRST OF ALL WE ARE NEVER GOING
TO DEFAULT ON OUR U.S. DEBT.
IT’S THE WORLD’S RESERVE
CURRENCY AND WE’LL ALWAYS KEEP
IT THAT WAY.
BUT IF THERE WERE A DELAY ON
PAYING THE INTEREST ON A 10-YEAR
GOVERNMENT BOND TO SIGNIFICANTLY
SLASH FEDERAL SPENDING, THEN I’M
ALL FOR IT.
LET’S NOT FORGET, REVENUE IS
ALWAYS COMING IN EVERY DAY, TAX
REVENUES.
RECORD FEDERAL TAX REVENUES.
THERE IS ALWAYS PLENTY OF CASH
FLOW TO COVER THE INTEREST
PAYMENTS ON OUR DEBT.
EVEN IF THE DEBT CEILING
INCREASE IS POSTPONED.
ALL THAT ARGUMENT IS A RED
HERRING.
KEVIN McCARTHY AND COMPANY ARE
GOING TO CALL BIDEN’S BLUFF AS
WE DISCUSSED SO MANY TIMES ON
THIS SHOW, THE GOP WILL MOVE TO
REGULAR BUDGET ORDER WHICH MEANS
NEW BUDGET CHAIR AND HIS
COMMITTEE WILL SET A NEW BUDGET
RESOLUTION WHICH DESCRIBES
CEILINGS AND REVENUE FLOORS AND
IT WILL INCLUDE A MAJOR ROLLBACK
OF THE RECENT DEMOCRATIC
SPENDING BINGE.
AND THAT GOES TO THE
APPROPRIATIONS COMMITTEE WHOSE
12 APPROPRIATIONS SUB COMMIT.
>> IS WILL COME UP WITH SPENDING
TOTALS AND POLICIES.
ALL ALONG THE WAY THERE WILL BE
AN OPEN, ACCOUNTABLE TRANSPARENT
PROCESS WITH PUBLIC HEARINGS AND
EXPERTS ON BOTH SIDES OF THE
AISLE.
THE ERA OF 4,000 PAID OMNI US
BILLS IS OVER.
THIS IS A PLEDGE MADE BY THE NEW
HOUSE GOP, AND I’M HOPING THEY
WILL KEEP IT.
SENATE DEMOCRATS WILL SQUEAL
LIKE STUCK PIGS.
JOE BIDEN WOULD LIKE TO SQUEAL
WITH THEM BUT HE HAS A SCANDAL
PROBLEM THAT WILL NEUTER HIM FOR
QUITE SOME TIME, MAYBE FOR THE
REST OF HIS POLITICAL CAREER.
BIDEN’S CLASSIFIED DOCUMENT SCAN
DAYS A BODY BLOW TO THE
DEMOCRATIC PARTY, EVEN THOUGH
THEY ARE IN DENIAL OF THAT.
EVEN THE MAINSTREAM MEDIA GROUPS
ARE TRYING TO FIGURE OUT WHAT
TOP SECRET IRANIAN AND UKRAINIAN
INFORMATION WAS DOING IN HIS
CORVETTE.
IF THAT BUNCH TURNS AGAINST HIM,
HE’S GOT A PROBLEM.
EVEN THOUGH THE DELIBERATIONS IN
THE HOUSE WILL GO ON FOR MANY
MONTHS, THE SELF-RIGHTEOUS
YELPING BY MR. BIDEN AT HIS ARCH
ENEMY DONALD TRUMP, I THINK
THOSE DAYS ARE OVER.
FOR THOSE WHO DISAGREE WITH MY
POLITICAL ANALYSIS, I RESPECT
YOUR POINT OF VIEW AND MAYBE I’M
JUMPING TO CONCLUSION.
BUT I THINK IS CROSSES TO A NEW
BUDGET ERA BEING COOKED UP BY
THE CONGRESSIONAL REPUBLICANS,
AND IT WILL BE COOKED UP ON A
GAS STOVER.
AS FISCAL POWER DRAINTS AWAY FROM THE DESPOTIC AND CLOGGED
FROM THE DESPOTIC AND CLOGGED