I’M GLAD THEY ARE FINALLY
ADMITTING IT.
THANK YOU VERY MUCH, STEVE
DOOCY.
STEVE FORBES JOINS US IN STUDIO
IN "FOCUS" NOW.
GREAT TO SEE YOU.
LET’S START WITH THE GOOD NEWS.
I LIKE A LITTLE BIT OF A SILVER
LINING.
JOBS ARE UP, UNEMPLOYMENT DOWN
OR STEADY.
WHAT DO YOU CREDIT THAT TO?
>> IT’S PART OF THE RECOVERY
FROM THE LOCKDOWNS.
WE STILL DON’T HAVE THE NUMBER
OF JOBS WE HAD BEFORE COVID-19
SHUT EVERYTHING DOWN BUT WE’RE
STILL MAKING PROGRESS.
I THINK WE WOULD HAVE MADE MORE
PROGRESS IF THEY HADN’T PUT
ARTIFICIAL THINGS, RAISING
ENERGY AND BUSINESSES ARE BEING
SQUEEZED AND THEY WON’T HAVE
THE CAPACITY TO HIRE MORE
PEOPLE IN THE FUTURE.
SO THOSE ARE SELF-INFLICTED
WOUNDS.
IF THE ADMINISTRATION WOULD
TAKE A VACATION WAGING WAR
AGAINST COMMERCE THEY COULD
COME BACK IN SIX MONTHS AND
LOOK LIKE HEROES.
THEY CAN’T RESIST THE
TEMPTATION TO MUDDY THINGS UP.
>> Julie: THE UNEMPLOYMENT RATE
IS AT PREPANDEMIC LEVELS BUT WE
ARE SUFFERING FROM MAJOR
INFLATION, PAIN AT THE PUMP AND
AMERICANS ARE SICK AND TIRED OF
IT.
THE POLLS ARE AT AN ALL-TIME
LOW FOR THE PRESIDENT AND THE
ECONOMY IS NOT DOING WELL.
SO HOW LONG WILL THIS KEEP UP?
>> WELL, I THINK YOU WILL SEE
IT FOR A LITTLE WHILE LONGER
JUST BECAUSE THERE IS THAT
MOMENTUM OF PEOPLE FOR EXAMPLE
IF YOU WANT TO HIRE SOMEBODY
YOU PUT OUT THREE REQUESTS
INSTEAD OF ONE HOPING YOU CAN
GET A BITE AND THE PERSON WILL
SHOW UP AND STAY FOR A FEW DAYS.
SO THAT WILL TAKE A FEW MONTHS
BEFORE IT GETS TURNED OFF.
WITH RISING COSTS AND I THINK
WITH THE FEDERAL RESERVE NOT
KNOWING HOW TO REALLY FIGHT
INFLATION AND SLOWING THE
ECONOMY ARTIFICIALLY.
LOOK AT INTEREST RATES.
START WITH THE HOUSING MARKET.
BOOMING NOW.
WHEN YOU HAVE 30 YEAR MORTGAGES
FROM 2 1/2 TO 5% AND PEOPLE
WITH ADJUSTABLE MORTGAGES WILL
FEEL IT LATER THIS YEAR IT WILL
HURT.
THE FED I DON’T THINK KNOWS HOW
TO FIGHT INFLATION AND GRIND
THE ECONOMY DOWN.
>> Julie: INTEREST RATES RISING
IN A SECOND BUT WATCH THIS, CNN
SENIOR DATA REPORTER WHO
HAMMERED BIDEN’S POOR POLLING
ON THE ECONOMY.
WATCH THIS.
>> YOU ASK AMERICANS HOW THEY
VIEW THE ECONOMY IS IT POOR OR
GOOD, 77% SAY BAD.
BAD, BAD.
YOU HAVE TO GO ALL THE WAY BACK
TO 2012 TO SEE NUMBERS THAT BAD.
THEY BLAME BIDEN BUT REALLY
BLAME INFLATION.
YOU NEVER SEE THAT MANY
AMERICANS AGREEING ON SOMETHING.
>> DO PEOPLE FEEL PRESIDENT
BIDEN IS DOING ENOUGH TO COMBAT
THAT?
>> NO, THEY DO NOT.
THIS TO ME IS THE MOST
WORRISOME SIGN IF YOU’RE A
DEMOCRAT, RIGHT?
>> Julie: THERE YOU HAVE IT ON
CNN.
THEY KNOW IT IS BAD, IT IS
AWFUL.
THOSE ARE ALL THE WORDS BEING
USED.
THE BLAME GAME.
WHO IS TO BLAME?
I’M NOT HEARING MUCH OF THAT.
>> THE ADMINISTRATION STARTED
THE BLAME GAME.
THEY TRY TO SAY IT’S VLADIMIR
PUTIN AND THEN THEY WILL BE
POINTING FINGERS AS THEY ARE AT
OIL COMPANY EXECUTIVES, FOOD
PRODUCERS AND OTHERS OUT THERE,
DRUG MANUFACTURERS AND THE LIKE.
EVERYONE BUT THEM.
THE BOOK INFLATION WE CAME OUT
WITH
>> Julie: YOU MENTIONED IT.
YOU BEAT ME TO IT.
THE BOOK BY THE WAY, INFLATION.
>> ONE OF THE THINGS WE POINT
OUT IS -- THANK YOU VERY MUCH
-- IS THAT GOVERNMENTS FOR
CENTURIES WHEN THINGS GO WRONG
LOOK FOR SCAPEGOATS.
IN ROMAN TIMES THEY BLAMED THE
CHRISTIANS AND MEDIEVAL TIMES
IT’S WITCHES AND TODAY IS OIL
COMPANY EXECUTIVES.
THE VILLAIN, THE ADMINISTRATION
IS HURTING THE RECOVERY FROM
COVID AND THE FEDERAL RESERVED
CREATED TOO MUCH MONEY,
ATTACKED THE INTEGRITY OF THE
DOLLAR AND NOW TRYING TO CLEAN
UP THE MESS THEY CREATED.
>> Julie: THE ONE THING I HATE
THE MOST NOT JUST FOR ELECTED
OFFICIALS BUT PEOPLE IN
GENERAL, ACCEPT RESPONSIBILITY.
TAKE RESPONSIBILITY FOR YOUR
MISTAKES AND YOUR ACTIONS.
ACCOUNTABILITY, THAT IS THE
MOST IMPORTANT THING.
I WANT TO TAKE A LOOK AT THE
MARKETS.
YESTERDAY THE CARNAGE WAS A
DISASTER.
BASICALLY LET’S TAKE A LOOK AT
THE DOW.
YESTERDAY IT FELL ABOUT 1,000
POINTS.
AND RIGHT NOW IT’S HOLDING
RELATIVELY STEADY.
BUT THIS IS AFTER STOCKS HAD
THEIR WORST DAY SINCE 2020
YESTERDAY.
WE WERE JUST TALKING ABOUT THE
FED RATES, INTEREST RATES
RAISING FOR THE FIRST TIME IN
DECADES.
COULD THIS HIKE PREVENT US FROM
LONG TERM INFLATION CALAMITY
THAT OCCURRED IN THE 2020 ERA
OR IN THE 1970s, EVEN WORSE?
>> IN TERMS OF ARTIFICIALLY
RAISING RATES THAT RAISED THE
COST OF MONEY.
WHAT THE FED SHOULD DO IS LET
THE MARKET SET RATES BETWEEN
BORROWER AND LENDER INSTEAD OF
TRYING TO GUESS WHAT THE RATE
IS.
WHEN THEY START RAISING RATES,
THAT RAISES THE COST OF
BUSINESS.
YOU’LL START TO SEE A LOT OF
COMPANIES THAT WERE ACCUSTOMED
TO THE FED HAVING ZERO INTEREST
RATES, ZOMBIE COMPANIES WERE
KEPT ALIVE.
WHEN YOU LOOK AT THE JUNK BOND
MARKET YOU SEE THE RATES
STARTING TO GO UP.
A LOT OF COMPANIES WILL BE IN
TROUBLE WHEN THEY DON’T GET ANY
MORE FREE MONEY.
THE FEDERAL RESERVE.
CREATED SO MUCH MONEY.
THEY ARE SITTING $2 TRILLION OF
CASH AT THE FED RIGHT NOW, THAT
STARTS TO GO INTO THE ECONOMY
AND INFLAME INFLATION EVEN MORE.
YOU HAVE -- INSTEAD OF
STABILIZING THE DOLLAR THEY
WILL MAKE THE PATIENT WORSE.
>> Julie: LET’S TRY TO
STABILIZE THE ECONOMY FIRST.
>> BY LEAVING IT ALONE.
IT WAS LIKE DOCTORS USED TO DO
300 YEARS AGO WHEN THE PATIENT
GOT SICK THEY BLED THE PATIENT
AND BIDEN TRYING TO RAISE
TAXES, BLEED THE PATIENT, NO.
>> Julie: INFLATION BOOK JUST
OUT.
THIS IS AMERICA RIGHT HERE
COVER TO COVER.