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>> Brian: AS AMERICA COMES TO
GRIPS WITH THE
RECESSION, ANOTHER KEY METRIC TO
DEAL WITH INFLATION CAME OUT.
THE EXPENDITURES PRICE INDEX HAS
THE INFLATION RATE HIGHER THAN
EXPECTED AT 6.8% YEAR-OVER-YEAR.
>> Ainsley: THAT IS UP FROM
THE RATE OF 6.3%, THE PC IS SAID
TO BE EASIER FOR THE
FEDERAL RESERVE TO DETERMINE
CURRENT INFLATION, PLACE HAS A
LOWER ON GASOLINE AND RENT,
WHICH CPI SKYROCKETING.
>> Steve: WHAT DOES IT MEAN?
LET’S GET ANALYSIS FROM ECONOMIC
DIRECTOR AND HOST OF THE KUDLOW
SHOW ON FOX BUSINESS,
LARRY KUDLOW.
AS YOU CAN SEE IS NOT WEARING A
NECK TIE BECAUSE IT’S CASUAL
FRIDAY.
HEY, LARRY, GOOD MORNING TO YOU.
>> MORNING, FOLKS, GREAT TO HAVE
ME.
>> Steve: THERE’S BEEN A
BLIZZARD OF THAT NUMBERS THIS
PAST WEEK BUT AT THE SAME TIME,
YOU KNOW, THE PRESIDENT GOT THAT
BIG TAX SPIN BILL SO FEELING
GREAT.
>> YEAH, HE MAY FEEL GREAT, BUT
THE REST OF THE COUNTRY IS NOT
GOING TO FEEL SO GREAT.
LOOK, ON THE BATTLE OF THE
RECESSION, THE GEORGE ORWELLIAN
RECESSION BATTLE WHEN YOU HAVE
TWO CONSECUTIVE NEGATIVE
QUARTERS, SINCE WORLD WAR II,
THERE HAS NEVER NOT BEEN A
RECESSION EVER.
TO SAY IT’S NOT A RECESSION IS,
I THINK, A REACH.
IT IS THEORETICALLY POSSIBLE,
BUT IT IS HIGHLY, HIGHLY
UNLIKELY.
THAT IS POINT NUMBER ONE.
POINT NUMBER TWO, THE INFLATION
NUMBER YOU MENTIONED A SECOND
AGO IS ACTUALLY HIGHER THAN MAY.
SO THAT IS NOT GOOD.
UNDERLYING INFLATION MAY BE
ABOUT 7% OR 8% RIGHT NOW.
NUMBER THREE, WHY WOULD YOU
RAISE TAXES WHEN YOU’RE IN A
RECESSION?
THIS IS THE PART THAT I SIMPLY
DO NOT UNDERSTAND.
AND THIS RECONCILIATION BILL,
WHICH WAS KIND OF SPRUNG ON THE
REPUBLICANS, I MEAN, THE INK WAS
BARELY DRY ON THE VOTE FOR THE
CHIPS PLUS BILL, WHICH IS
$284 BILLION IN SPENDING.
NOW THEY COME UP WITH THIS
BILL, WHICH IS $739 BILLION TAX
HIKE, RIGHT, WITH $583 BILLION
OF SPENDING.
SO WAIT A MINUTE, LET ME GET
THIS RIGHT.
SIT BACK FOR A MINUTE.
IN THE SPACE OF 48 HOURS, YOU
HAVE THESE TWO, HUGE BILLS,
OKAY?
CHIPS WHICH IS AN INDUSTRIAL
CORPORATE WELFARE BILL, AND THEN
RECONCILIATION, ALL RIGHT?
SO THE SUM TOTAL IS $870 BILLION
IN NEW SPENDING.
$870 BILLION IN NEW SPENDING.
WHICH IS GUARANTEED TO RAISE
INFLATION.
AND YOU HAVE $740 BILLION AND
HIGHER TAXES.
SO, THERE IS NO DEFICIT
REDUCTION.
THERE IS A MASSIVE TAX INCREASE,
WHICH WILL DO GREAT HARM TO
BUSINESSES AND WORKING FOLKS.
FINALLY, YOU HAVE THIS HUGE
VOLUME OF SPENDING, WHICH I
THOUGHT THERE WAS AGREEMENT IN
WASHINGTON THAT TOO MUCH
SPENDING CAUSES HIGHER
INFLATION.
TAX HIKES ARE GOING TO CAUSE A
WORSE RECESSION.
IF YOU GUYS CAN FIGURE OUT THE
ECONOMIC LOGIC TO THIS, PLEASE
COME ON MY SHOW AND LAY IT TO ME
BECAUSE I DON’T GET IT.
>> Ainsley: YOU KNOW --
>> I’VE ONLY BEEN DOING THIS FOR
ABOUT 50 YEARS.
YOU WILL HAVE TO HELP ME OUT ON
THIS.
>> Ainsley: I THINK MY
6-YEAR-OLD KNOWS WHEN YOU DON’T
HAVE A LOT OF MONEY IN YOUR BANK
ACCOUNT, YOU DON’T SPEND MORE.
EXACTLY.
THEY ARE CALLING THIS THE
INFLATION REDUCTION ACT.
IS THAT JUST A SPIN?
>> WELL, IT WOULD HAVE MADE
GEORGE ORWELL PROUD.
IT IS THE WORSE MISUSE OF THE
ENGLISH LANGUAGE I HAVE EVER
SEEN.
IT HAS NOTHING TO DO WITH
INFLATION REDUCTION.
THIS IS A WHOLE LOT OF SUBSIDIES
AND CORPORATE WELFARE AND
CLIMATE CHANGE AND THEY ARE
GOING TO THROW IN A BIG
INCREASE, $225 BILLION INCREASE
TO OBAMACARE.
AND THEY ARE GOING TO PUT -- ONE
OF MY FAVORITES HERE IS THEY
WILL GIVE THE IRS AS IF THEY
DON’T HAVE ENOUGH AGENTS TO GO
CHASING WAITRESSES AND UBER
DRIVERS AROUND THE CITY, THEY
ARE GOING TO GIVE THEM ANOTHER
$80 BILLION.
AND THAT $80 BILLION IS SUPPOSED
TO GENERATE $120 BILLION IN
REVENUE.
>> Brian: UNBELIEVABLE.
>> WHEN YOU GO OUT ONTO THE
STREET, AINSLEY, YOU HAVE TO
HAVE A MASK OR SOMETHING UNLESS
AN IRS AGENT WILL TELL YOU
WHEREVER YOU GO TO INCREASE YOUR
TAX BILL.
>> Brian: 20 SECONDS AND I
ONLY HAVE 30 SECONDS LEFT BUT
WHAT ABOUT POISONING THE WELL.
THEY PASSED THE CHIPS DEAL AND A
SECRET DEAL BEHIND THE SCENES.
MITCH McCONNELL FEELS LIKE HE
WAS DOUBLECROSSED.
DOES HE HAVE A RIGHT TO FEEL
THAT WAY?
>> YEAH, I THINK HE DOES, I
THINK HE DOES.
THEY SPRUNG IT -- THE INK WAS
BARELY DRY AND YOU ARE
ABSOLUTELY RIGHT ON THE CHIPS
WILL.
JOE MANCHIN SAID TWO WEEKS
AGO, I’M NOT VOTING FOR ANY OF
THIS UNTIL I SEE THE JULY
INFLATION NUMBERS, WHICH
EVERYONE KNEW WAS COMING OUT
MID-AUGUST."
WHATEVER HAPPENED TO JULY
INFLATION NUMBERS, JOE?
I DON’T GET THAT.
>> Brian: WATCH THE SHOW AT
4:00 TODAY.
>> NOT GOOD.