LARRY: ALL RIGHT PRESIDENT BIDEN
SAYING THAT ANYBODY WHO OPPOSES
HIS RECKLESS SPENDING AND TAXING
PLAN WILL BE COMPLICIT IN
AMERICA’S DECLINE, MANY OF US
THINK PASSING THIS PLAN WILL
ACTUALLY CREATE AN AMERICA IN
DECLINE AND AS I SAID AT THE TOP
OF THE SHOW A NUMBER OF POLLS,
LEFT, RIGHT AND CENTER ARE
BACKING THAT UP SO HERE TO WEIGH
IN, IS STEVE FORBES, FORBES
MEDIA EDITOR-IN-CHIEF.
STEVE, THANK YOU FOR COMING BACK
ON.
IT IS KIND OF HARD, AS A MATTER
OF COMMON SENSE, JACKING UP
SPENDING AND TAXING AND
REGULATING AND ENDING OUR OIL,
ENERGY INDEPENDENCE WILL NOT
HELP AMERICA, IT WILL HARM
AMERICA.
>> WELL, ALL YOU HAVE TO DO,
LARRY IS LOOK WHAT HAPPENED TO
EUROPE SINCE THEY ADOPTED THIS
KIND OF A WELFARE STATE FROM
CRADLE TO GRAVE AND THEIR GROWTH
RATES, ONCE UPON A TIME EUROPEAN
GROWTH RATES WERE A MATCH OF
THOSE FOR THE U.S.
EUROPE WENT ON A VERY, VERY
SHARP SOCIALIST DIRECTION IN THE
ECONOMY
ECONOMY AND AND HEALTH CARE.
THEIR ECONOMIES ARE LOWER THAN
THE U.S., THEY LACK IN GROWTH
RATES.
WITH SMALLER ECONOMIES THEY
WOULD HAVE HIGHER GROWTH RATES
BUT THEY HAVE LESS GROWTH RATES
THAN WE HAVE.
THE PROOF IS IN THE PUDDING, NOT
A THEORY.
WHEN YOU PILE ON UNNECESSARY
TAXES, REGULATIONS, WHAT BIDEN
WANTS TO DO IN THE BING BINGE
SPENDING REGULATIONS, WITH IRS
POWERS LIKE THE SOVIET UNION AND
CHINA, GUESS WHAT WILL HAPPEN?
YOU WILL HAVE A STAGNANT ECONOMY
AND TROUBLED POLITICAL SITUATION
HERE IN THE U.S. PEOPLE WILL NOT
PUT UP WITH IT.
LARRY: YES, STEVE, I SAW
COURTESY OF THE COMMITTEE TO
UNLEASH PROSPERITY HOTLINE YOU
DID A NICE RIFF ON THE POTENTIAL
THREAT NOW FOR CREDIT CARD
CONTROLS.
ONCE UPON A TIME WE HAD SENATOR
DURBIN’S DEBIT CARD CONTROLS BUT
YOU DID A RIFF ON CREDIT CARD
CONTROLS.
CAN YOU JUST BRIEFLY OUTLINE
THIS?
THIS IS A NEW THREAT.
I WASN’T AWARE OF THIS BEFORE.
>> WELL THE IDEA IS TO PUT A
CAP, A PRICE CONTROLS ON WHAT
BANKS, WHAT ISSUERS CAN CHARGE
MERCHANTS WHEN YOU USE THE CARD,
WHAT THEY CALL SWIPE FEES.
SENATOR DURBIN OF ILLINOIS DID
THAT WITH DEBIT CARDS BACK IN
2010, EFFECTIVELY CUT THE RATES
WHICH BANKS COULD COLLECT BY
45%.
OVER THE 10 OR 11 YEARS SINCE
THAT COST BANKS OVER
$100 BILLION IN LOST FEES.
GUESS WHAT HAPPENED?
THE PRICES FOR CONSUMERS WERE
NOT CUT.
THE RETAILERS GOT EXTRA
100 BILLION.
WHAT HAPPENED BANKS RAISED FEES
FOR CHECKING ACCOUNTS, FOR DEBIT
CARD ACCOUNTS AND SAME THING
WILL HAPPEN WITH CREDIT CARDS.
LEAVE IT ALONE.
LEAVE THE MARKET ALONE,
ESPECIALLY, LARRY, THE RISE OF
BLOCKCHAIN WILL RADICALLY
SIMPLIFY, LOWER THE COST OF THE
WHOLE PAYMENT SYSTEM.
LET THE FREE MARKET WORK.
KEEP THE POLITICIANS OUT.
YOU HAVE UNINTENDED CONSEQUENCES
MAKING CHECKING ACCOUNTS, CREDIT
CARDS LESS AFFORDABLE.
KIND OF DUMB.
LARRY: I DIDN’T KNOW THAT WAS ON
THE TABLE BUT YOU’RE RIGHT.
THAT’S A TERRIBLE IDEA.
YOU KNOW, STEVE, WE TALKED ABOUT
RISING INFLATION.
HALF OF IT MAY BE PANDEMIC
RELATED, SUPPLY SHORTAGES BUT
THE OTHER HALF, AND THEN SOME IS
THE FEDERAL RESERVE HAS BEEN
FINANCING THIS GOVERNMENT
SPENDING.
THEY’RE BUYING 57% OF THE NEW
DEBT IN THE LAST 18 MONTHS AND
THE INFLATION RATE DOESN’T LOOK
LIKE IT IS COMING DOWN.
IN FACT WE HAVE A CHART, I DON’T
KNOW IF YOU CAN SEE IT, WE’LL
PUT IT ON THE FULL SCREEN.
COMMODITY PRICES, THE CRB
COMMODITY INDEX WHICH IS A
MARKET-BASED INDEX, IS VERY,
VERY STRONG.
THE THING HAS BEEN RISING A LOT.
IF WE CAN GET THAT UP THERE.
YOU CAN SEE THE BOUNCEBACK
THERE.
IT IS NOW MOVED BEYOND THE OLD
LEVELS OF 2017, 2018, 2019, SO
THAT IS A BAD SIGNAL.
NATURAL GAS PRICES ARE BOOMING,
OIL PRICES ARE BOOMING.
CAME TO ME.
TALKING ABOUT CREDIT CARD
CONTROLS.
DO YOU THINK THE BIDEN
ADMINISTRATION WILL GO PRICE
CONTROLS OR EVEN WAGE AND PIES
CONTROLS?
INSTEAD OF HAVING THE FED PULL
BACK ON THEIR MONETARY BASE
MONEY SUPPLY AND SO FORTH, DO
YOU THINK THEY WILL GO FOR PRICE
CONTROLS?
>> I HOPE, LARRY, WE DON’T GET A
REPEAT OF 1970s, WHEN
REPUBLICAN PRESIDENT, PUT WAGE
AND PRICE CONTROLS, TOOK US OFF
THE GOLD STANDARD, TERRIBLE
DECADE OF THE 1970S, TERRIBLE
AMOUNTS STAFFING NATION AN
INFLATION, THAT IS WHAT IS
THREATENING HERE.
YOU’RE RIGHT, THERE ARE LITTLE
HINTS OUT THERE.
PRESIDENT BIDEN WENT OF A RISING
MEAT PRICES BLAMING MERCHANTS,
THAT KIND OF SCAPEGOATING LEADS
TO PRICE CONTROLS.
WHEN THEY DO BAD THINGS, THEY
ATTACK THE SYMPTOMS AND NOT THE
CAUSE IN THIS CASE TRASHING THE
DOLLAR.
AS WE DISCUSSED BEFORE THE
FEDERAL RESERVE IS ENGAGING IN A
GIMMICK WITH THIS MON MONEY
USING REVERSE REPOS, THE FOLD
BORROWS EACH NIGHT,
$1.3 TRILLION IN THE BANKING
SYSTEM TO PREVENT THE FLOOD OF
MONEY IN THE ECONOMY THAT WILL
NOT GO ON MUCH LONGER,
ESPECIALLY IF CONGRESS PASSES
TREMENDOUS SPENDING BILLS.
HOPEFULLY THEY WILL BE MITIGATED
OR STOPPED ALL TOGETHER.
THAT WILL LEAD TO MONETARY
INFLATION, NOT COVID INFLATION
LIKE WE HAD IN THE 1970S.
MONETARY INFLATION IS VERY BAD
FOR THE ECONOMY.
ESPECIALLY POLITICAL
CONSEQUENCES.
PEOPLE WILL NOT UNDERSTAND WHAT
IS GOING ON.
SCAPEGOATING WILL RISE UP.
TRUST WILL GO DOWN.
THE POLITICAL CONSEQUENCES ARE
UNPREDICTABLE.
LARRY: WAGE AND PRICE CONTROLS,
THIS IS THE KIND OF GROUP, FAR
LEFT LIBERALS WILL DO ANYTHING.
THEY FIGURE YOU CAN KEEP GOOSING
THE MONEY SUPPLY BUT AT THE SAME
TIME HOLD DOWN PRICES THE WAY
THIS WAS DONE, AS YOU SAY, IT
WAS REPUBLICAN RICHARD NIXON.
NOW JIMMY CARTER AS YOU RECALL
ALSO HAD WAGE AND PRICE CONTROLS
OR A FORM OF IT.
WE KIND OF KILLED THAT OFF,
RIGHT, IN THE LAST 30, 40 YEARS
BUT IT MAY COME BACK WITH THIS
GANG AND I GUESS WE’RE ALL GOING
TO HAVE TO START TALKING AND
WRITING ABOUT HOW BAD THAT WOULD
BE FOR THE ECONOMY?
>> YEAH, THEY WON’T DO WAGE
CONTROLS.
THE LABOR UNIONS WILL BLOCK THAT
BUT THEY WILL DO PRICE CONTROLS
WHICH WILL DISRUPT THE ECONOMY
AND LEAD TO HIGHER UNEMPLOYMENT
AND LOWERING WAGES, EFFECTIVE
WAGES AS PRICES GO UP BUT
COMPANIES ARE NOT GOING BE ABLE
TO INCREASE WAGES.
WE SAW THAT IN THE ’70s.
YOU GOT NOMINAL INCREASES BUT
PRICES WERE ALWAYS MOVING FASTER
AHEAD.
THAT LED TO TURMOIL.
BY GOLLY WHEN RONALD REAGAN TOOK
OFFICE, TALKING ABOUT JIMMY
CARTER’S CONTROL ON ENERGY, OLD
OIL, NEW OIL, ALL THAT KIND OF
JUNK.
HE REMOVED THEM.
BUY GOLLY OIL PRICES CAME
PLUMMETING DOWN.
I WISH WE WOULD LEARN THESE
LESSONS.
WE MAY HAVE TO LEARN THEM AGAIN
WITH THIS CROWD, THIS SOCIALIST
CROWD, THAT LEAVE THE ECONOMY
ALONE.
AMERICA PROSPERS.
DO WHAT THEY’RE DOING, YOU WRECK
THE GREATEST EXPERIMENT IN HUMAN
HISTORY.
LARRY: REAGAN DECONTROLLED OIL,
YOU’RE RIGHT AND PEOPLE SAID IT
WAS GOING TO GO FROM 40 TO 100.
THE ONLY PROBLEM IS IT WENT FROM
40 TO 10.
MARKET FORCES, MORE PRODUCTION,
MORE EMPLOYMENT.
YOU’RE RIGHT, BUT I WORRY ABOUT
THIS.
THIS CROWD COULD GO TO PRICE
CONTROLS.
RIGHT, THEY WILL FAVOR PRICE
CONTROLS TO SCREW BUSINESS
BECAUSE THEY DON’T LIKE BUSINESS
IN THE FIRST PLACE.
THE BUSINESS WON’T MAKE ANY
PROFITS.
THAT WILL CAUSE HIGHER
UNEMPLOYMENT.
ANYWAY, MORE TO BE REVEALED.