PETER DOOCY AT THE WHITE HOUSE.
>> Bill: ONE EXPENSIVE BALLOT.
BRING IN CHARLIE GASPARINO FROM
FOX BUSINESS. THE QUESTION OUT THERE IS HOW
THE QUESTION OUT THERE IS HOW
MUCH HIGHER COULD IT GO?
IS IT LEVLING OFF?
>> IT MIGHT COME DOWN A LITTLE
BIT.
IT IS STILL AT HISTORIC HIGHS.
THIS ADMINISTRATION LOVES TO
BRAG THAT IT ONLY RAISES TAXES
ON THE RICH.
THE SUPER WEALTHY.
WELL, INFLATION IS A WICKED TAX
ON THE WORKING CLASS AND YOU
WERE TALKING ABOUT WAGES BEING
EATEN UP BY THIS INFLATION.
HE TALKS ABOUT JOBS, THE
PRESIDENT.
IF YOU HAVE TO WORK THREE TIMES
AS HARD OR WORK TWO JOBS TO
AFFORD THAT SAME HAMBURGER,
THAT’S A PROBLEM.
THAT’S KIND OF WHAT WE HAVE
RIGHT NOW.
IT COULD GET WORSE.
HERE IS THE OTHER PROBLEM.
BECAUSE OF HIS FISCAL POLICIES,
WHAT THE WHITE HOUSE DOES.
THEY SPEND SO MUCH MONEY.
THE FEDERAL RESERVE HAS TO
ESSENTIALLY INCREASE INTEREST
RATES MUCH MORE THAN IT WANTED
TO.
SO WHAT IT COMES DOWN TO IS THE
FED HAS TO ENFORCE THE
RECESSION AND A STEEP ONE
INSTEAD OF WHAT THEY TRIED TO
DO WHICH WAS KNOWN AS A SOFT
LANDING.
MAYBE CALM THE ECONOMY DOWN A
LITTLE BIT TO GET INFLATION
UNDER CONTROL AND BACK OFF AND
LET THE ANIMAL SPIRITS RUN WILD
AND THE ECONOMY IMPROVES WITH
LOW INFLATION.
WE’RE IN A PICKLE AND PROBABLY
HEADING TO A RECESSION.
ADMINISTRATION WON’T LOOSEN UP
FISCAL POLICY IN TERMS OF
REGULATIONS TO INCREASE SUPPLY
AND HELP INFLATION.
THEY WON’T DRILL.
THEY ARE CUTTING LEASES.
"WALL STREET JOURNAL" EDITORIAL
PAGE HAD A STORY ON THAT TODAY.
WE’RE IN FOR SOME ROUGH WATERS.
>> Dana: INFLATION IS HAVING AN
IMPACT ON A LOT OF KEY RACES
LEADING INTO THE MID-TERMS.
IN PHOENIX, INFLATION AT 13%.
ATLANTA UP 11.7%.
YOU ARE SEEING THIS KIND OF
EFFECT THAT MIGHT ACTUALLY
IMPACT THE ELECTIONS AS WELL.
>> Bill: THERE HAS NEVER BEEN A
PERIOD OF HYPER INFLATION THAT
DID NOT HAVE A SOCIETAL EFFECT.
I GREW UP IN THE 70s AND I
REMEMBER THE LINES FOR GASOLINE.
I REMEMBER MY OLD MAN HAVING TO
WORK TWO JOBS, SOMETIMES THREE
JOBS TO PAY ESSENTIALLY TO MAKE
ENDS MEET WHEN HE USED TO HAVE
TO WORK ONLY ONE JOB.
THIS AFFECTS WORKING CLASS
PEOPLE.
AGAIN, IT’S A TAX ON THE
WORKING CLASS AND IF YOU THINK
INFLATION IS GOOD AS LONG AS
THE ECONOMY KEEPS GROWING, IF
YOU HAVE TO WORK FOUR TIMES AS
HARD TO PUT THE SAME AMOUNT OF
FOOD ON YOUR TABLE, THEN --
>> Bill: TO DANA’S POINT
ARIZONA AND GEORGIA YOU HAVE
SIGNIFICANT SENATE RACES.
THE FED MEETS WEDNESDAY.
GOING TO RAISE PROBABLY 3/4,
SOME MIGHT THINK A FULL POINT.
THAT WOULD BE A HEAD TURNER.
THEY’LL MEET AGAIN ON THE
WEDNESDAY BEFORE THE ELECTION
ON NOVEMBER 8th.
WHAT THAT MEANS, THEN, IS ALL
THIS CONVERSATION HAPPENS
ALMOST EVERY DAY LEADING UP TO
THAT.
>> I KNOW THE FED IS A FOCAL
POINT, WHAT WILL THE FED DO?
SOME OF THIS IS THE MARKET
ITSELF.
IF THE FED DOESN’T TAKE THE
LEAD IN ADDRESSING INFLATION
THROUGH ITS MONETARY POLICY,
SOME BOND TRADERS ARE GOING TO
DO IT AND THAT’S HOW IT WORKS.
THE YIELDS ON THE 10 YEAR ARE
ALREADY SPIKING MORE THAN WHAT
THE FED WANTS THEM TO SPIKE.
IT IS OUT OF THE FED’S CONTROL
IF THEY DON’T TRY TO TAKE THE
LEAD.
MY GUESS, JUST A GUESS, I WILL
GO OUT ON A LIMB, THEY DO 100
BASES POINTS INSTEAD OF 75.
I SAY THAT BECAUSE THE BOND
MARKETS ARE STARTING TO REACT
IN A WAY THEY’RE SAYING WE’LL
TAKE CARE OF THIS IF YOU DON’T.
>> Dana: THE OTHER THING TO
WATCH IS THE RENT.
>> RENT AND FOOD IS OUT OF
CONTROL.
WHEN GAS PRICES GO DOWN, GUESS
WHAT THAT MEANS?
PEOPLE ARE USING LESS GAS.
THAT’S A RECESSION.