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>> Tucker: GOOD EVENING AND
WELCOME TO
"TUCKER CARLSON TONIGHT."
THERE’S A LOT ABOUT MODERN
ECONOMIC THEORY THAT IS
IMPORTANT, BUT DIFFICULT TO
UNDERSTAND.
NOT MANY PEOPLE FORMULATING
THESE VIEWS DON’T REALLY
UNDERSTAND THEM.
THAT IS WHY THEY COULD NEVER
EXPLAIN ANYTHING, CLEARLY.
BUT THERE IS ONE CORE ECONOMIC
FACT THAT EVERYBODY, EVEN THOSE
OF US WITH POOR MATH SKILLS,
GRASP INSTANTLY PEER THAT IS
WHEN WE ARE GETTING POORER.
HOW DO YOU KNOW YOU ARE GETTING
POORER?
WHEN YOU DON’T HAVE ENOUGH MONEY
TO DO THE THINGS THAT YOU WANTED
TO DO.
YOU ARE MOVING BACKWARDS.
IT IS A VERY BACKWARDS FEELING.
SHORT OF ARMED ROBBERY, NOTHING
MAKES AMERICANS POORER THAN
INFLATION.
FINANCE MOBILE -- IT IS A GOOD THING FOR THEM.
THING FOR THEM.
IF APPEALS HATESEVERYONE ELSE HA
NEW INFLATION NUMBERS ARE OUT.
ACCORDING TO CONSUMER PRICE
INDEX, INFLATION IS UP ALMOST 7%
OVER THE PAST 12 MONTHS.
THAT IS VERY HIGH.
THE PROBLEM IS THE REALITY IS
MUCH WORSE THAN THAT.
AND THAT IS BECAUSE THE CONSUMER
INDEX IS USELESS AS A GUIDE TO
LIFE IN AMERICA.
IT DOESN’T ACTUALLY MEASURE THE
COST OF LIVING.
IN THAT WAY, IT IS A LIE.
IT IS A RIGHT TO GOVERNMENT
NUMBER, ONE OF MANY.
ASSIGNING RELATIVE WEIGHT TO
DIFFERENT CATEGORIES OF GOOD, IT
IS A VERY COMPLEX SERIES OF
FORMULAS.
SOME OF THEM WERE FORMULATED IN
GOOD FAITH, OTHERS WERE DESIGNED
TO DECEIVE YOU.
BUT IN EFFECT, THE BOTTOM LINE
IS THE CPI DOES A VERY BAD JOB
OF MEASURING HOW MUCH IT
ACTUALLY COSTS TO LIVE IN THIS
COUNTRY.
FOR EXAMPLE, GAS PRICES.
IN THE CPI GAS PRICES CONTRIBUTE
TO LESS THAN 4% OF THE TOTAL
VALUE WITH PRODUCTS INCLUDED.
THAT IS REALISTIC IF YOU HAPPEN
TO LIVE IN MANHATTAN, BUT IF YOU
HAVE A CAR AND YOU DRIVE MORE
THAN A FEW MILES TO WORK EVERY
DAY, THAT IS RIDICULOUS.
BECAUSE FOR YOU, GAS PRICES ARE
A FAR LARGER PART OF YOUR
BUDGET.
AND YET ALL OF THIS IS IGNORED
BY THE CPI.
YOU DON’T NEED TO NEED TO BE AN
ECONOMIST TO UNDERSTAND THIS. THE BOTTOM LINE IS, THESE ARE
THE BOTTOM LINE IS, THESE ARE NOT ACCURATE NUMBERS.
BUT THEY WERE PUT TOGETHER BY
PEOPLE WHO WE CONSIDER VERY
SMART.
SO YOU HAVE TO ASK YOURSELF, WHY
ARE THESE NUMBERS AND ACCURATE?
THINK ABOUT IT.
THE CONSUMER PRICE INDEX
MEASURES THE DOWNSIDE OF FEDERAL
ECONOMIC POLICY.
SO LET’S SAY YOU PRINTED TOO
MANY U.S. DOLLARS, YOU WANTED TO
FIND USELESS PROGRAMS AND PAY
OFF YOUR DONORS.
IF YOU DID THAT, YOU WOULD
DEVALUE YOUR OWN CURRENCY.
HE WOULD CAUSE INFLATION OVER
TIME AND YOU WOULD IMPOVERISH
YOUR OWN POPULATION.
BUT OF COURSE, HE WOULD WANT TO
HIDE THOSE EFFECTS UNTIL
EVERYBODY THAT THANKS TO YOU THE
ECONOMY IS GREAT.
AND THE CONSUMER PRICE INDEX
ALLOWS POLITICIANS TO DO THAT.
THE CPI ALLOWS ROCK LESS
ECONOMICALLY ILLITERATE LEADERS
TO HIDE THE MESS THEY HAVE MADE.
IT IS A CONFLICT OF INTEREST IF
THERE EVER WAS ONE.
IT’S LIKE PUTTING BERNIE MADE
OFF IN CHARGE OF THE AUDIT
COMMUNITY.
WHAT YOU THINK IS GOING TO
HAPPEN IF YOU DO THAT?
FAKE NUMBERS ALLOW FAKE
ECONOMISTS TO TELL A FAKE STORY
ABOUT WHAT IS ACTUALLY HAPPENING
TO THE COUNTRY.
THEY HAVE DEFINITELY BEEN DOING
THAT.
>> ARE ECONOMISTS HAVE CONVEYED
THAT THEY FEEL THAT THE IMPASSE
OF OUR PROPOSALS WILL BE
TRANSITORY.
>> THEY SUGGEST THERE IS A
TRANSITORY NATURE TO THE
INFLATION PROBLEM.
>> THEY CALL ALL OF THESE THINGS
TRANSITORY EFFECTS.
>> THESE INFLATIONS WE ARE
EXPERIENCING IS TRANSITORY.
>> WE’VE HAD SEVERAL MONTHS OF
HIGH INFLATION THAT MOST
ECONOMISTS, INCLUDING ME,
BELIEVE WILL BE TRANSITORY.
>> WE DON’T EXPECT THAT THAT
UPWARD PLEASURE DOME I PRESSURE
WOULD -- THAT THE EFFECTS WILL B
>>>> Tucker: MAXINE WATERS ON
ECONOMIC POLICY?
PLEASE, STAY IN YOUR LANE.
BUT THE LAST GUY IS REGARDED AS
VERY SMART.
HIS NAME IS JEROME POWELL, THE
CHAIRMAN OF THE FEDERAL RESERVE.
HE HAS NOW UPDATED HIS
ASSESSMENT, TRANSITORY, AFTER
WEEKS OF BEING LAUGHED AT.
HE NO LONGER USES THAT WORD,
TRANSITORY, TO DESCRIBE.
"IT’S PROBABLY A GOOD TIME TO
RETIRE THAT WORD."
TOO LATE, NO ONE BELIEVES YOU
ANYMORE.
NO ONE WHO WAS PAYING ATTENTION.
THERE WAS ONLY ONE ACCURATE WAY
TO MEASURE INFLATION AND SOME
THEY HAVEN’T FIGURED IT OUT.
ASK YOURSELF, WHAT DOES IT COST
YOU TO LIVE IN THIS COUNTRY
COMPARED TO WHAT IT COST YOU A
YEAR AGO?
IT’S NOT COMPLICATED.
DO THE MATH AND YOU WILL SEE
THAT THE ACTUAL NUMBER, THE RISE
IN INFLATION, IS NOT EVEN CLOSE
TO THE 7% THAT WASHINGTON IS
CLAIMING.
IN THE LAST YEAR, THE PRICE OF
USED CAR FOR EXAMPLE HAS GONE UP
BY MORE THAN 30%.
BEEF PRICES HAVE RISEN BY 21%.
CRUDE OIL UP 55%.
WHEAT 37%.
SUGAR, 33%.
PALM OIL, 43%.
DO YOU DRINK COFFEE IN THE
MORNING?
TOO BAD, THE PRICE OF COFFEE HAS
RISEN 108% IN THE LAST YEAR.
DEAL AT BREAKFAST CEREAL?
OATS ARE UP 114%.
THOSE ARE THE NUMBERS YOU SEE ON
THE LABEL AT THE GROCERY STORE.
IN ADDITION TO CONVENTIONAL
INFLATION, CONSUMERS ALSO FACE
WIDESPREAD -- THAT IS AN
INFORMAL TERM THAT ECONOMISTS
USE FOR THE SHRINKING OF
CONSUMER PRODUCTS.
SO COMPANIES SELL YOU LESS FOR
THE SAME PRICE.
HAVE YOU BOUGHT A SNICKERS BAR
RECENTLY?
IF IT SEEMS A LOT SMALLER THAN
IT USED TO, THAT IS BECAUSE IT
IS.
AND THOSE ARE JUST THE PRODUCTS
YOU BUY.
MOST PEOPLE IN THIS COUNTRY
STILL LIVE INDOORS AND THE COST
OF LIVING INDOORS HAS RISEN
DRAMATICALLY.
RENT AND SOUTHERN CALIFORNIA FOR
EXAMPLE HAS TRIPLED IN A SINGLE
YEAR.
>> INFLATION AND MIGRATION.
PEOPLE FROM L.A. AND
ORANGE COUNTY MOVING TO THE
INLAND EMPIRE IN SEARCH OF
AFFORDABLE HOUSING ARE TWO
REASONS FOR THE BOOMING
REAL ESTATE MARKET AND THE HIGH
RENT AND THE INLAND EMPIRE.
SOME LANDLORDS HAVE MORE THAN
TRIPLED RENT PRICES IN THE LAST
YEAR.
>> AN APARTMENT THAT IS IN NOT A
GREAT AREA OF -- EIGHT USED TO
GO FOR 800 A MONTH.
AND WE JUST NOTICED IT WAS UP
FOR 2600 PER MONTH.
SPACE HASN’T CHANGED, IT IS LIKE
A TWO BEDROOM APARTMENT WITH
BARELY ANY LIVABLE SPACE.
>> Tucker: $2600 PER MONTH FOR
A DEPRESSING LITTLE UNIT IN A
DEEPLY CRUMMY PART OF THE STATE
THAT COST $800 A YEAR AGO.
SO THAT IS WHAT WAS HAPPENING AT
WHEN JEROME POWELL AND JOE BIDEN
WAS TELLING YOU INFLATION WAS
TRANSITORY.
BY THE WAY, EVERYBODY ELSE KNOWS
EXACTLY WHAT’S GOING ON BECAUSE
IT IS IMPOSSIBLE TO IGNORE.
>> AMERICANS ARE SEEING THE SIDE
EFFECTS OF INFLATION IN THEIR
BUDGETS.
GENERAL MILLS EVEN ANNOUNCING
THEIR RAISING THE PRICES OF SOME
OF THEIR SERIALS BY UP TO 20%.
TO SPEAK AT THE GRAND TOTAL OF
OUR THANKSGIVING DINNER WAS
$51.25.
>> MORE THAN 20% OVER LAST
YEAR’S LIST.
TO.
>> THE DOLLAR TREE IS HIDING ITS
PRICES FROM $1 TO A DOLLAR 25
FOREMOST ITEMS.
IF YOU ARE LUCKY ENOUGH TO FIND,
YOU WILL PARAMORE FOR PAY MORE F
IT.
>> THIS WOULD NORMALLY BE
SOMEWHERE AROUND -- LOW $20.
>> PIZZERIAS ACROSS THE FIVE
BOROUGHS ARE RAISING THE PRICE
OF A SLICE.
DOLLAR SLICES ARE NOW UP TO A
DOLLAR AND $0.50.
>> THOSE WHO HEAT WITH OIL WILL
NEED TO DIG DEEPER THIS YEAR.
>> THE AVERAGE HOMEOWNER IS
PROBABLY GOING TO PAY ABOUT $500
MORE THAN THEY DID A YEAR AGO.
>> Tucker: SO TELL US AGAIN,
JOE BIDEN, HOW INFLATION IS AT
7%.
RATES OF MORE GOVERNMENT NUMBERS
TO US.
ONE GROUP THAT WOULD NEVER EVEN
CONSIDER BELIEVING NUMBERS LIKE
THIS -- LIKE THIS, HIS
INVESTORS.
THEY ARE NOT LOOKING INTO
CONSUMER PRICE INDEX AND THEY
KNOW EXACTLY WHAT DANGEROUS
INFLATION LOOKS LIKE.
THAT IS WHY THEY ARE BUYING HARD
ASSETS.
WE SEE IT EVERYWHERE.
THE MEDIAN SALES PRICE AND THE
EXISTING SINGLE-FAMILY HOME IN
BOSTON TEXAS INCREASED 33.5% IN
A SINGLE YEAR.
THE MEDIAN PRICE OF A CONDO
AROUND MIAMI HAS GONE UP NEARLY
21%.
REAL ESTATE WAS ALREADY WILDLY
OVERHEATED, NOW IT IS A BONFIRE.
WHY IS THAT HAPPENING?
SIMPLE, INVESTORS ARE AFRAID.
CONSIDER EQUITIES PRICES.
THE S&P 500 IS UP 28% IN THE
LAST YEAR.
IF YOU ARE LOOKING FOR THE REAL
INFLATION RATE, THAT IS A LOT
CLOSER.
IF YOU THINK ABOUT MONEY FOR A
LIVING, YOU REALLY THINK ABOUT
THE ECONOMY AND THE VALUE OF THE
U.S. DOLLAR, LOOK AT THE VALUE
OF CRYPTOCURRENCY.
IT IS BY DEFINITION A REFUGE
FROM INFLATION.
PEOPLE BUY BITCOINS AND THEY
DECIDE THE U.S. DOLLAR IS NO
LONGER SAFE.
WHAT IS HAPPENED A BIT COIN IS
UP 164% IN THE LAST YEAR.
THE THEORY IS UP 622%.
SO IF YOU COULD -- YOU COULD
CONSIDER THAT ON THE REFERENDUM
ON THE STRENGTH OF OUR ECONOMIC
SYSTEM.
BECAUSE THAT IS EXACTLY WHAT IT
IS.
THESE ARE MAJOR CHANGES TO THE
U.S. ECONOMY AND THEY ARE VERY
OMINOUS.
THERE IS NO BIGGER STORY THAN
THIS.
AND YET AMAZING, THE SHAMELESS
HACKS ARE STUDIOUSLY IGNORING
IT.
HERE IS CNBC’S INTERNAL
FINANCIAL GENIUS TELLING US THAT
IN FACT UNDER JOE BIDEN WE ARE
NOW ENTERING A NEW ECONOMIC
GOLDEN AGE.
WATCH.
SPEAK UP TO ME, WE HAVE THE
STRONGEST ECONOMY PERHAPS I HAVE
EVER SEEN.
IT IS THE BEST IN YEARS.
WE HAVE ALL SPOTTED THE ENDLESS
"HELP-WANTED" SIGNS, THE
TREMENDOUS DEMAND FOR GOODS AND
SERVICES, A MARVEL TO BEHOLD.
PEOPLE ARE CONFIDENT ABOUT THEIR
JOBS.
I SAY, FANTASTIC.
THEY ARE DOING IT WITH CASH, NOT
CREDIT.
THEY ARE DOING SO IN
ROARING ’20s STYLE.
>> Tucker: IMAGINE BELIEVING
THAT?
THAT WAS JIM BRAEMAR OF CNBC.
HOW DO WE FEEL ABOUT JIM
CRAMER’S ASSESSMENT OF OUR
ECONOMY?
IT MAY BE A LITTLE BIT EARLY TO
APPLY FOR A FOREIGN PASSPORT,
BUT IT’S NOT A GOOD SIGN, NOT AT
ALL.
IT WAS JIM KRAMER WHO TOLD YOU
TO BUY BEAR STEARNS BEFORE IT
DISAPPEARED COMPLETELY.
>> SHOULD I BE WORRIED ABOUT
BEAR STEARNS?
NO, NO, NO!
BEAR STEARNS IS FINE.
DO NOT TAKE YOUR MONEY.
IF THERE’S ONE TAKE AWAY UNDER
THEM -- BEAR STEARNS IS NOT IN
TROUBLE!
IT WAS MORE LIKELY TO BE TAKEN
OVER.
DO NOT MOVE YOUR MONEY FROM
BAYER, THAT IS JUST BEING SILLY.
DO NOT BE SILLY.
>> Tucker: BEAR STEARNS IS NOT
IN TROUBLE!
BEAR STEARNS IS FINE!
DO NOT TAKE YOUR MONEY OUT!
THAT IS WHAT HE SAID RIGHT
BEFORE THE CRASH.
WITH A NORMAL COUNTRY, ANYONE
WHO SAYS SOMETHING LIKE THAT
WOULD NO LONGER BE TOUTING
STOCKS ON TELEVISION.
HE WOULD BE CLEANING YOUR POOL
ASSUMING HE COULD MUSTER THE
SKILLS TO DO THAT.
AND YET THERE HE IS, THE SAME
MAN STILL TELEVISED, LIVING
TESTAMENT TO OUR SUICIDAL
TENDENCY TO REWARD FAILURE.
OR CONSIDER -- HIS BOSSES
CONSIDER HIM THE SMARTEST MAN IN
CNBC.
SORKIN’S VIEW IS THAT WE OUGHT
TO BE GRATEFUL FOR INFLATION. INFLATION HAS LONG BEEN SEEN.
INFLATION HAS LONG BEEN SEEN.
THAT VIEW IS CHANGING.
YOUR NEIGHBOR IS GOING TO BE
EVERY BIT AS POOR AS YOU ARE.