I HAVE THAT AUTHORITY.
>> [INAUDIBLE]
[LAUGHTER]
PETE: OH, MAN.
WILL: OF COURSE, STUART VARNEY
IS HERE WITH US AS WELL.
PETE: EVEN PERCENT -- EVEN
BETTER.
WILL: STUART, HERE WE GO.
GAS PRICES OFFICIALLY DOUBLED
SINCE PRESIDENT BIDEN’S TAKEN
OFFICE.
NEW RECORD HIGH IN THE MORNING.
RACHEL: THAT’S RIGHT.
AND THE ENERGY SECRETARY SEES NO
SIGN OF IT SLOWING DOWN SAYING,
QUOTE: THERE WILL BE MORE DEMAND
FOR GASOLINE, MORE DEMAND FOR
OIL THAT WILL CAUSE ADDITIONAL
UPWARD PRESSURE LIKE IT DOES
EVERY YEAR ARE.
IT’S ON TOP OF ALREADY HIGH
PRICES, SO THIS IS GOING TO BE
ROUGH THROUGH THE END OF THE
YEAR, SHE SAYS.
PETE: STUART, BREAK IT DOWN FOR
US.
>> LET’S BE CLEAR, WE ARE IN THE
MIDDLE OF AN INFLATIONARY
SPIRAL.
INFLATION IS OUT OF CONTROL.
THAT’S CAUSING GREAT ANGER AND
ANXIETY THE ALL ACROSS THE
COUNTRY.
WE’VE GOT A BRAND NEW RECORD
HIGH FOR GASOLINE PRICES AS OF
THIS MORNING.
YOU’RE UP TO $4.84 PER GALLON.
THAT’S AS OF THIS MORNING
NATIONAL AVERAGE.
BY THE END OF NEXT WEEK, YOU’RE
PROBABLY UP TO $5 ON AVERAGE
MISSION WIDE.
NATIONWIDE.
AND THERE MAY BE A HALF DOZEN
STATES WILL HAVE GASP LEAN AT $6
A GALLON. -- GASOLINE.
PETE: THEY’RE SPIRALING
INTENTIONALLY.
>> YES.
YOU CAN SENSE THIS MOVEMENT
TOWARDS EVER HIGHER PRICES.
IT’S WHAT PEOPLE SEE EVERY
SINGLE MORNING.
I DROVE IN NEW JERSEY YESTERDAY
ON ROUTE 17.
YOU STILL HAVE SOME GAS STATIONS
AT, LIKE, $4.95.
I COME DOWN 17 THIS MORNING,
EVERYBODY’S CHANGED IT, $5 A
GALLON ALL THE WAY DOWN THE
LEWIN, AND YOU’RE GOING UP FROM
HERE.
YOU’RE GOING TO SPIRAL, YOU’RE
GOING UP.
IT’S NOT PLATEAUING, IT’S GOING
UP FROM HERE.
RACHEL: EVERYBODY SEES IT.
WE HEAR THAT THERE’S GOING TO BE
SHORTAGES AND INCREASED PRICES
COMING INTO THE FALL, THAT MANY
OF THE PRICES THAT THE FARMERS
ARE DEALING WITH RIGHT NOW,
WE’RE NOT GOING TO BE ABSORBING
THOSE COSTS UNTIL THE FALL.
PEOPLE SEE THIS COMING, WHAT
YOU’RE TALKING ABOUT.
WE’RE IN THE SPIRAL BUT MORE ARE
COMING.
HOW ARE PEOPLE PREPARING FOR
THAT?
HOW SHOULD THEY PREPARE FOR IN
THE INCREDIBLE INFLATIONARY
PERIOD?
>> WELL, AT SOME POINT YOU SEE
WHAT’S CALLED, WHAT ECONOMISTS
CALL DEMAND DESTRUCTION; THAT
IS, PEOPLE DRIVE LESS OR THEY
DON’T BUY QUITE SO MUCH AT THE
GROCERY STORE, THEY CUT BACK ON
THEIR DEMAND BECAUSE THEY HAVE
TO, BECAUSE THEY CAN’T AFFORD
IT.
IF YOU’RE LIVING PAYCHECK TO
PAYCHECK, YOU DON’T MAKE THAT
MUCH MONEY, AND SOME OF YOUR GAS
BILL GOES UP BY 10, 20, $30 A
WEEK OR $50 A MONTH, YOU CAN’T
AFFORD THAT.
SO YOU COME BACK DOWN A LITTLE
BIT, YOU DRIVE A LITTLE BIT
LESS.
AND YOU’RE GOING TO ADD
SURCHARGES, ALL HOSE LIVERLY
TRUCKS -- THOSE DELIVERY TRUCKS,
YOU’RE ADDING A DELIVERY
SURCHARGE ON TOP OF THE INFLATED
CHARGE ALREADY.
YOU SEE IT ACROSS THE COUNTRY.
I THINK THIS IS GOING TO SLOW
THE ECONOMY, INTEREST RATES ARE
GOING TO GO WITH UP, INFLATION
KEEPS WHERE IT IS OR GOES UP
FROM HERE, YOU GET STAGFLATION.
THAT IS A DECLINING ECONOMY WITH
AN INFLATIONARY ENVIRONMENT.
THAT’S DANGEROUS, INDEED,
REALLY, REALLY DANGEROUS.
AND THE ADMINISTRATION HAS NO
CLUE WHAT TO DO ABOUT IT.
THEY DO NOT HAVE A POLICY TO FIX
THIS CRISIS.
ZERO.
THEY DON’T HAVE IT.
WILL: SO THE HOPE WOULD BE,
RIGHT, FROM THEIR PERSPECTIVE IF
WE HAVE TO RAISE INTEREST RATES,
WE’RE GOING TO THEN BRING
INFLATION UNDER CONTROL.
AND YOU’RE SAYING WE COULD GET
THE WORST OF BOTH WORLDS.
>> YES.
WILL HIGHER INTEREST RATES AND
STILL RISING PRICES.
>> YES.
WE’RE GOING TO GET THE WORST OF
BOTH WORDS.
IF WE’VE GOT TIME THE, I JUST
WANT TO TELL YOU WHAT THE LEFT
WANTS TO DO.
WRITING IN "THE NEW YORK TIMES",
CONGRESSMAN RO KHANNA, DEMOCRAT
FROM CALIFORNIA, HE’S PUT OUT
HIS PLAN TO DEAL WITH INFLATION.
THIS IS WHAT HE WANTS THE
ADMINISTRATION TO DO.
HE WANTS GOVERNMENT AGENTS TO GO
OUT AND BUY, BY THE TENS OF
BILLIONS OF DOLLARS’ WORTH,
WHEAT, CORN, SOYBEANS, HEATING
OIL, NAT GAS.
THE GOVERNMENT STEPS IN TO BUY
ALL OF THIS THIS STUFF -- THE.
RACHEL: THAT’S LIKE VENEZUELA,
THIS IS LIKE CUBA.
>> IT’S RIDICULOUS.
HERE’S THE STORY.
THEY THINK WHEN THE PRICE OF
WHEAT GOES UP AND IF IT TAKES A
LITTLE DIP, IN COME THE
GOVERNMENT BUYERS, TENS OF
BILLIONS OF DOLLARS TO BUY WHEAT
IT’S A LITTLE CHEAPER, AND THEN
THEY’LL DISTRIBUTE IT TO THE
REST OF THE COUNTRY.
A FUNDAMENTAL MISUNDERSTANDING
OF HOW MARKETS WORK.
THE PRICE GOES UP.
THAT’S INFLATION.
IT’S ECONOMIC NONSENSE AND
POLITICAL POISON, THAT’S WHAT IT
IS THE.
RACHEL: IT’S THE KIND OF
MISMANAGEMENT IN LATIN AMERICA
HAVE SEEN FOR A LONG TIME, AND
IT IS EXACTLY, I THINK, WHY
YOU’RE SEEING THESE NUMBERS
PLUMMET FOR HISPANICS FOR THE
BIDEN ADMINISTRATION.
THIS LOOKS LIKE CUBA, LIKE THE
SOVIET UNION.
THIS IS ABSOLUTELY INSANE.
I CANNOT BELIEVE THIS IS
AMERICA.
>> I SENSE THAT PEOPLE ARE
GETTING ANGRY --
RACHEL: YEAH, ME TOO.
>> THEY’RE ANXIOUS, OBVIOUSLY,
BUT ANGRY.
I’VE SEEN SCENES OF ANGER AROUND
THE COUNTRY.
PETE: WELL, AS ONE OF OUR
UNOFFICIAL ROYAL
CORRESPONDENTS --
[LAUGHTER]
>> THANK YOU.
RACHEL: SIR VARNEY.
PETE: SIR STUART.
WHAT DO YOU MAKE OF THE JUBILEE?
>> IT IS THE QUEEN TRANSITION
THING OUT TO THE NEXT GENERATION
OF MONARCHS.
BALCONY SHOT, THERE YOU HAVE IT,
THAT’S THE TRANSITION FROM THIS
GENERATION OF MONARCHS TO PRINCE
CHARLES RIGHT THERE, THEN TO
PRINCE WILLIAM, THEN TO PRINCE
GEORGE.
I DON’T KNOW WHETHER YOU APPROVE
OF THIS PETE, YOU’RE AN AMERICAN
GUNG HO KIND OF GUY --
[LAUGHTER]
PETE: GOT RID OF THEM A LONG
TIME AGO.
>> EXACTLY.
I WAS WAITING FOR YOU TO SAY
THAT, AND YOU DID.
THE DO DISTRACTION IS THE
DIVISION WITHIN THE ROYAL
FAMILY.
YOU’VE GOT A-LIST ROYALS SITTING
ON THE FRONT PEW AND THE B-LIST
WITH HARRY, SECOND ROW ON THE
OTHER SIDE OF THE CHURCH.
A LIST, B LIST, WORKING ROYALS,
NON-WORKING ROYALS, AND THAT’S A
DIVISION -- THE.
RACHEL: AND THE BROTHERS NEVER
EVEN BARELY LOOKING AT EACH
OTHER.
THIS IS A MASSIVE FAMILY RIFT,
AND PETE JUST WANTS YOU GUYS TO
KEEP MEGHAN MARKLE.
[LAUGHTER]
>> WHAT DO YOU MEAN YOU GUYS?
I DON’T WANT HIM BACK IN
CALIFORNIA.
THEY CAN KEEP HIM, OKAY?
LET’S GET THAT CLEAR.
WILL: WATCH STUART WEEKDAYS ON
"VARNEY & COMPANY," 9 A.M.
EASTERN TIME ON FOX BUSINESS.
WE ALWAYS LOVE HAVING YOU.