BACK TO MY YOUTH.
I APPRECIATE THAT.
>> Reporter: YOU’RE WELCOME.
SEAN: ALL RIGHT.
HERE NOW IS THE GREAT LARRY
KUDLOW.
LARRY, YOU DON’T HAVE ENOUGH TV
TIME TODAY.
BIG NEWS, CPI, 7.5%.
YOU ARE THE EXPERT.
I KNOW YOU CARE ABOUT AMERICAN
FAMILIES.
SO IF YOU HAVE UNSECURED DEBT,
RATES ARE GOING TO RISE, YOU’RE
GOING TO PAY MORE.
AT THE PUMP IF, AT THE GROCERY
STORE, IF YOU RENT, YOU’RE
PAYING MORE, IF YOU BUY A USED
CAR.
WHAT IMPACT IS THIS HAVING ON
THE AMERICAN FAMILY?
>> BY THE WAY, THE UNSECURED
DEBT PART IS INTERESTING.
DEBTORS ARE ACTUALLY HELPED BY
HIGH INFLATION BECAUSE REAL
INTEREST RATES ARE NEGATIVE.
THAT’S THE ONLY PART OF THE
POPULATION THAT WOULD BE HELPED.
EVERYBODY ELSE, MIDDLE CLASS
FAMILIES, BLUE COLLAR FAMILIES,
WORKING FOLKS GET KILLED BECAUSE
INFLATION IS RAISING FASTER THAN
WAGES.
WAGES AREN’T PUSHING UP PRICES.
PRICES ARE CAUSING WAGES TO TRY
TO CATCH UP.
AND IT’S NOT ABOUT THE PANDEMIC,
AND IT’S NOT ABOUT SUPPLY
SHORTAGES.
IT’S BECAUSE WE HAVE BEEN
SPENDING WAY TOO MUCH FEDERAL
MONEY AND BECAUSE THE FEDERAL
RESERVE IS BUYING ALL THAT
DEFICIT FINANCING, AND THEY ARE
MONETIZING THE DEBT.
THE FED IF IS CREATING MONEY,
AND THAT IS NOT STOPPING.
THEY’RE STILL CREATING MONEY.
WE ARE NOT EVEN CLOSE TO THE
PEAK.
AND TODAY’S NUMBER WAS WORSE
THAN LAST MONTH’S, AND THAT WAS
WORSE THAN THE MONTH BEFORE.
THE TREND LINE IS UP, AND IT’S
CAUSED HARDSHIP FOR EVERYBODY IN
THIS COUNTRY, JUST ABOUT
EVERYBODY.
NOT DEBTORS NECESSARILY, BUT
WORKING FOLKS.
SEAN: WELL, SO, LARRY, IF YOU
LISTEN TO THE WHITE HOUSE, THEY
AT FIRST SAID THIS WAS
TRANSITORY, BUT NOW THEY’RE
SAYING THAT THIS WILL START TO
SUBSIDE BY THE END OF THIS YEAR.
IS THAT YOUR READ AS WELL?
>> NO.
I DON’T KNOW WHAT THEY’RE
SMOKING.
I DON’T UNDERSTAND THAT.
JANET YELLEN IS TELLING THE
PRESIDENT THERE’S GOING TO BE 2%
INFLATION BY THE END OF THE
YEAR.
SO I’M GOING TO, I’M GOING TO
TAKE THE OVER ON THAT, MEANING
IT’S GOING TO BE WOLFE 2%.
I DON’T KNOW HOW YOU GET THERE.
WE HAVEN’T STOPPED THE MONEY
PRINTING.
IN ORDER TO TURN INFLATION
AROUND, YOU’VE GOT TO STOP THE
MONEY PRINTING.
AND, BY THE WAY, IT TAKES TWO OR
THREE YEARS TO IMPACT THE ACTUAL
INFLATION RATE IN THE ECONOMY.
THAT’S THE TROUBLE WITH THIS
WHOLE STORY.
AND HERE’S THE THING, YOU KNOW,
THE WHITE HOUSE IS SAYING WE
WANT AN INDEPENDENT FED, WHICH
IS RIGHT, I AGREE.
BUT THEY ARE POINTING --
APPOINTING PEOPLE WITH FAR-LEFT,
RADICAL AGENDAS.
I MEAN, LEAST CA COOK FROM --
LISA COOK FROM FROM MICHIGAN
STATE WANTS TO USE THE BLACK
UNEMPLOYMENT RATE AS A METRIC.
SHE WANTS REPARATIONS FOR
SLAVERY.
SHE THINKS THIS IS A GENOCIDAL
COUNTRY.
HAS NOTHING TO DO WITH
INFLATION.
SARAH BLOOM RASKIN, WHO’S BEEN
ON THE FED AND IN THE TREASURY,
SHE’S NOW POUNDING THE DRUM THAT
WE HAVE TO CUT OFF A MONEY TO
FOSSIL FUEL COMPANIES, RIGHT?
USE THE FED TOAL ROTATE CREDIT.
SO THAT’S A GREAT IDEA BECAUSE
THAT’LL BRING OIL PRICES TO $150
A BARREL, AND THAT WILL IN TURN
CAUSE INFLATION TO GO UP EVEN
MORE THAN IT HAS ALREADY: SO THE
FED’S COMMITMENT TO FIGHTING
INFLATION, THESE NOMINATIONS ARE
NOT GOING TO BE INDEPENDENT.
THEY’RE ALL GOING OFF ON THEIR
OWN LITTLE WOKE TRAVEL GUIDE.
AND SO I DON’T KNOW HOW THIS IS
GOING TO BE RESOLVED.
SEAN: HOLD ON A SECOND, LARRY.
ARE YOU SAYING THAT BY SPENDING
MORE MONEY, LIKE $5 TRILLION IN
BUILD BACK BETTER, BORROWING
MORE MONEY, THAT’S NOT GOING TO
HELP INFLATION LIKE THE WHITE
HOUSE IS SAYING?
[LAUGHTER]
>> I NEVER -- YOU KNOW, IT’S
FUNNY, I THINK HE SAID IT AGAIN
TODAY.
SEAN: HE DID.
>> IT’S REALLY FANTASTIC.
THE GOOD NEWS ON THIS IS THAT
THE PUBLIC IS A LOT SMARTER THAN
YOU THINK --
SEAN: THEY ARE.
>> AND THEY’RE ON TO IT, AND
HE’S GETTING, YOU KNOW,
EXTREMELY LOW MARKS ON
INFLATION, ON THE ECONOMY, ON
HIS ENTIRE PRESIDENCY.
LOOK, INFLATION KILLED THE
PRESIDENCIES OF GERALD FORD AND
JIMMY CARTER.
I THINK INFLATION IS KILLING THE
PRESIDENCY OF JOE BIDEN.
IT WASN’T A PROBLEM FOR 35 OR 40
YEARS.
REAGAN SAID TO VOLCKER WAY BACK
WHEN WITH I WAS A CHILD WORKING
IN IN REAGAN’S OMB, HE SAID TO
VOLCKER, YOU DO A WHAT YOU HAVE
TO DO.
PULL BACK THE MONEY SUPPLY,
LET’S ADVANTAGE WISH INFLATION,
BOOST THE VALUE OF THE DOLLAR.
REAGAN TOOK THE HEAT AND CUT
TAXES, AND WE HAD THREE DECADES
OF PROSPERITY.
SO MY POINT THIS EVENING IS I
DON’T SEE A REAGAN, AND I DON’T
SEE A VOLCKER.
WHAT I DO SEE IS A WHITE HOUSE
IN DENIAL ABOUT THE TRUE FACTS,
THE TRUE CAUSES OF THE INFLATION
WHICH ARE MONETARY, SPENDING AND
HUNDRED PRINTING, AND THEY’RE
NOMINATING PEOPLE TO THE FEDERAL
RESERVE WHO WILL MAKE THE
PROBLEM WORSE, NOT BETTER.
THEY’RE NOT PROBLEMSOEVERS, HEIR
GOING TO -- PROBLEMSOEVERS.
LARRY SUMMERS SAID THIS.
DEMOCRATIC ECONOMIST, GETS IT
RIGHT SOMETIMES.
HE SAID THIS IS A GENERATION OF
PEOPLE WORRIED ABOUT CLIMATE
CHANGE AND WOKE SOCIAL POLICIES,
THEY DON’T CARE ABOUT INFLATION.
HE WAS EXACTLY RIGHT.
THE SPENDING OF LAST WINTER WAS
INFLATIONARY, THE MONEY PRINTING
THAT’S CONTINUED ALL LAST YEAR
IS INFLATIONARY.
WE’RE PAYING THE PIPER FOR THOSE
MISTAKES.
SEAN: YOU LOOK AT REAGAN, HE HAD
A BAD SITUATION AND VOC ISER
MADE IT BETTER. -- VOLCKER MADE
IT BETTER.
JOE BIDEN HAD A GREAT SITUATION
AND HAS A MADE IT WORSE.
IF THE FED RAISES RATES FIRE --
FIVE OR SIX TIMES, WHAT DOES IT
DO FOR ME?
>> I WOULD SAY TO YOU, STOCKS
FOR THE LONG RUN.
BUY THE INDEX, YOU KNOW?
OWN THE S&P INDEX, OWN ALL THE
STOCKS IN THE INDEX.
DON’T TRY TO OUTGUESS IT.
SEAN: ALL RIGHT.
>> INTEREST RATES ARE GOING UP.
THERE WILL BE CORRECTIONS, BUT
STOCKS IN THE LONG RUN -- YOU
KNOW WHY?
THE CAVALRY IS COMING.
THE CAVALRY CAN IS COMING TO FIX
THIS --
SEAN: YOU KNOW, LARRY ARE, YOU
WERE SUCCESSFUL WITH SAVE
AMERICA, KILL THE BILL, I HEARD
TODAY, SAVE AMERICA, KILL
INFLATION.
I LOVE IT.