THAT CAN GET STABILITY FOR OIL
MARKETS AROUND THE GLOBE.
BACK TO YOU.
ELIZABETH: THANK YOU, EDWARD
LAWRENCE.
HOST OF FOX BUSINESS’S THE
"KUDLOW" SHOW, LARRY KUDLOW.
GREAT HAVING YOU ON.
LARRY THIS IS DISTURBING.
INFLATION IS TOPPING 10% IN
SEVERAL U.S. CITIES.
HOW DO YOU STOP IT?
>> WELL, YOU’RE GOING TO HAVE TO
STOP IT BY TIGHTENING UP ON
MONETARY POLICY.
THE FED IS GOING TO HAVE TO
RAISE THEIR TARGET RATE ABOVE
THE INFLATION RATE AND THEY’RE
GOING TO HAVE START TAKING CASH
OUT OF THE ECONOMY.
INFLATION TOPS 10% IN SEVEN
CITIES BUT BASICALLY IT’S ABOVE,
IT’S ABOVE 10% EVERYWHERE.
PRODUCER PRICES ARE 11%.
SO YOU GOT A BIG PROBLEM HERE
AND, LIZ, CAN I JUST SAY
SOMETHING FOR THE EARLIER REPORT
COMING FROM THE MIDDLE EAST.
JOE BIDEN PUT AN IRANIAN DEAL ON
THE TABLE WITH IRAN AND PART OF
THAT DEAL IS REPORTEDLY A
TRILLION DOLLARS IN CASH TO
IRAN.
I JUST WANT TO PUT THAT IN
BECAUSE IT HASN’T GOTTEN ENOUGH
EXPOSURE.
BIDEN SAID IT AS A THROWAWAY IN
HIS NEWS CONFERENCE TODAY AND I
THINK THAT --
ELIZABETH: A TRILLION DOLLARS?
WAIT A MINUTE.
HE SAID A TRILLION DOLLARS?
>> YES.
ELIZABETH: WAS THAT A MISTAKE,
WAS THAT A GAFFE?
>> NO.
HE DIDN’T SAY IT.
ANALYSTS WHO ARE AWARE OF THE
DEAL, LIZ, ARE SAYING IT.
I THINK IT STARTS OUT,
$250 BILLION AND ANOTHER
SOMETHING LIKE $800 BILLION OVER
THE NEXT FIVE YEARS.
IT IS A NATIONAL DISGRACE.
ELIZABETH: SO WE’LL STAY ON THAT
STORY, LARRY.
THAT IS IMPORTANT THAT YOU JUST
BROUGHT THAT UP.
LARRY, YOU’VE BEEN TALKING ABOUT
THIS TOO, THE WHITE HOUSE IS
PLANTING A FLAG ON A REALLY WEAK
TALKING POINT THAT INFLATION
WILL DROP BECAUSE GAS IS DOWN
JUST 40 CENTS.
THEY WANT TO RAISE TAXES BY A
TRILLION DOLLARS, RIGHT, AS THE
FED RAISES INTEREST RATES.
TO YOUR POINT, FOOD, RENT,
HOUSING, TUITION, THOSE COSTS
ARE SOARING.
>> YOU KNOW AS I’M SURE YOU
KNOW, LOOK IT, THESE LATEST
INFLATION REPORTS, THE ONE-MONTH
AND THREE-MONTH NUMBERS ARE
BIGGER THAN THE 12 MONTH
NUMBERS.
I THINK INFLATION, IT IS CORE
INFLATION, LIZZIE, IT IS NOT
JUST ENERGY.
INFLATION IS BECOMING VERY, VERY
EMBEDDED INTO THE ECONOMY.
IT IS GOING TO MAKE IT HARDER.
LOOK IT, THESE IDEAS ABOUT, YOU
KNOW, HAVING A TRILLION DOLLARS
IN SPENDING AND A TRILLION
DOLLARS IN TAX HIKES,
400 BILLION IN HIGHER TAXES ON
SMALL BUSINESS, RIGHT?
ON PASS-THROUGH, SUBCHAPTER-S.
CAN YOU IMAGINE ANYTHING
STUPIDER THAN THAT?
HONESTLY.
>> YOU KNOW IT’S MIND-BOGGLING.
WE’RE GOING TO GET INTO THE NEXT
SEGMENT HOW YOU REPORTED THIS,
ABOUT HOW THERE IS NOBODY, THEY
HAVE NO BUSINESS EXPERIENCE IN
THE WHITE HOUSE AND THEY’RE
RUNNING THE WORLD’S BIGGEST
ECONOMY.
LARRY, HERE’S THE THING, THE
WHITE HOUSE TOPSPIN ON INFLATION
IS JUST AS BAD AS IT WAS WITH
THE TOPSPIN CALLING AFGHANISTAN
A BOTCHED EXIT A SUCCESS.
9,000 AMERICANS STRANDED, 13
PEOPLE KILLED.
THAT WAS BEGINNING OF THE END OF
BIDEN’S APPROVAL RATINGS.
LET’S WATCH THIS, WATCH.
PRESIDENT BIDEN: TODAY’S
INFLATION REPORT CONFIRMED WHAT
AMERICANS ALREADY KNOW, PUTIN’S
PRESCRIBING WHO IS HITTING
AMERICANS HARD.
OIL COMPANIES.
SHIPPING COMPANIES.
REPUBLICANS IN CONGRESS ARE
DOING EVERYTHING THEY CAN TO
STOP MY PLANS --
>> INCREASES LIKELY ONLY TO HAVE
TRANSITORY EFFECTS ON INFLATION.
>> TRANSITORY.
>> INFLATION IN THE NIGHTS
REMAINS UNEXPECTEDLY HIGH.
>> THE UNITED STATES ENDED 20
YEARS OF WAR IN AFGHANISTAN.
THE EXTRAORDINARY SUCCESS OF
THIS MISSION.
>> OPERATIONAL AND TACTICAL
SUCCESS.
>> I WOULD NOT SAY THAT IT IS
ANYTHING BUT A SUCCESS.
IT IS IRRESPONSIBLE TO SAY
AMERICANS ARE STRANDED.
THEY ARE NOT.
>> THERE ARE SEVERAL THOUSAND
AMERICANS IN AFGHANISTAN WHO
WOULD LIKE TO LEAVE.
>> SEE THAT, RIGHT?
THIS TOPSPIN.
VOTER POLLS SHOW BIDEN OWNS
AFGHANISTAN, HE OWNS INFLATION.
HE IS SKATING ON THIN ICE, ON
HOT SKATES.
MAJORITY OF PEOPLE DON’T BELIEVE
IT.
LARRY, LET’S TALK ABOUT THIS,
REAGAN AND VOLCKER, HOW DID
REAGAN AND VOLCKER STOP WHAT WAS
GOING ON IN THE ECONOMY WHEN WE
WERE IN DIRE STRAITS BACK IN THE
EARLY ’80s?
>> TWO THINGS.
ONE WHEN YOU DENY SOMETHING THAT
IS SO APPARENT TO EVERYBODY ELSE
IN THE COUNTRY WHO HAS TO BUY
GROCERIES, WHO HAS TO BUY
ENERGY, WHO HAS TO PAY RENT, WHO
HAS TO GO OUT TO TAKE A
VACATION, IF YOU DENY PRICES ARE
SKYROCKETING, YOU LOSE ALL
CREDIBILITY, ALL BELIEVABILITY.
THAT IS ONE OF THE REASONS WHY
BIDEN’S POLLS HAVE CRASHED.
WITH REAGAN AND VOLCKER, THEY
TOOK TOUGH MEDICINE, OKAY?
REAGAN SAID TO VOLCKER YOU DO
WHAT YOU HAVE TO DO AND VOLCKER,
YOU KNOW, CHOPPED DOWN THE MONEY
SUPPLY AND BOOSTED THE VALUE OF
THE DOLLAR AND MEANWHILE REAGAN
TOOK VERY CONSTRUCTIVE ACTIONS.
THIS IS WHAT’S MISSING, LIZ,
REAGAN CUT TAXES AND REAGAN
DEREGULATED.
BY THE WAY ONE OF HIS FIRST
ACTIONS WHEN HE WAS INAUGURATED
DECONTROLLED THE PRICE OF OIL.
HE ENDED THE CARTER PRICE
CONTROLS AND GUESS WHAT?
OIL WENT DOWN, NOT UP.
SO WHAT BIDEN WON’T DO IS TAKE
THE TOUGH ACTIONS, PARTICULARLY
ON THE PHYSICAL SIDE AND COMING
BACK TO YOUR EARLIER POINT, IT
IS SHEER INSANITY TO THINK THAT
SPENDING A TRILLION DOLLARS ON
SOCIAL SPENDING AND HEALTH
SPENDING AND MORE GREEN NEW DEAL
SPENDING AND RAISING TAXES ON
SMALL BUSINESSES, YOU KNOW,
PASS-THROUGH TYPE SUBCHAPTER-S
TYPE BUSINESSES AS WELL AS
C-CORPS, RAISING TAXES WILL
MERELY DEEPEN THE RECESSION.
SOCIAL SPENDING WILL MERELY
EXACERBATE THE INFLATION.
ELIZABETH: YEAH.
>> THEY HAVE IT EXACTLY
BACKWARDS.
ELIZABETH: IF THEY WANT TO RAISE
TAXES RIGHT AS THE FED IS
RAISING RATES.
THAT IS ONE-TWO PUNCH TO THE
ECONOMY.
SENATOR PHIL GRAMM AND MIKE
SOLANIS SAID IN
"THE WALL STREET JOURNAL," WHEN
INFLATION LAST KNIT IN HIT IN
1973 IT STUCK THERE FOR EIGHT
YEARS.
ONLY WAY TO REDUCE IT IS GET
GOOD ECONOMICS AND STABLE DOLLAR
IN PLACE.
WE DON’T HAVE THAT RIGHT NOW.
WE’RE VEERING OFF COURSE HERE.
WE HAVE THIS, CALIFORNIA
GOVERNOR GAVIN NEWSOM AND
ILLINOIS GOVERNOR JB PRITZKER
ARE TALKING ABOUT INDICATING
THEY WANT TO RUN IN 2024.
NEWSOM IS AT THE WHITE HOUSE
WHILE BIDEN IS IN SAUDI ARABIA
WALKING IN FRONT OF CAMERAS.
WE HAVE REPORTS THAT FORMER
PRESIDENT TRUMP HAS MADE A
DECISION RUNNING AGAIN.
WHAT ARE YOU HEARING ABOUT THAT?
>> WELL I CAN’T SPEAK TO
MR. TRUMP BUT, I DON’T KNOW
PRITZKER.
I KNOW GAVIN NEWSOM OR USED TO
KNOW HIM, I KNEW HIM, WHEN HE
WAS A MODERATE DEMOCRATIC MAYOR
OF SAN FRANCISCO.
I’M SURE THAT GAVIN ENJOYED
WALKING AROUND THE WEST WING
TODAY WHILE BIDEN WASN’T THERE
[LAUGHTER].
KIND OF LIKE A LITTLE PRACTICE
RUN, LIZ, YOU KNOW WHAT I MEAN?
JUST A LITTLE, KIND OF SEE,
MEASURE THE CURTAINS A LITTLE
BIT.
LET’S SEE IF THE DESK CHAIR IS
HIGH ENOUGH.
A LOT OF, MEASURE THE DRAPES.
I THINK THAT IS JUST A WONDERFUL
STORY.
I CAN’T SPEAK TO PRESIDENT
TRUMP’S PLANS.
I READ THE SAME ARTICLES YOU
HAVE.
I SPEAK TO HIM ON A REGULAR
BASIS BUT HE DOES NOT ASK MY
POLITICAL ADVICE AND I DON’T
OFFER IT EITHER.
ELIZABETH: JUST ECONOMIC ADVICE.
LARRY KUDLOW ALWAYS A PLEASURE
TO HAVE YOU ON.
COME BACK SOON.
WE ALWAYS LOVE YOU HAVING ON.