EVEN HIGHER THAN THAT.
KICKING US OFF THIS HOUR,
THANKS.
SANDRA.
>> Sandra: LET’S BRING IN LARRY
KUDLOW NOW, LARRY, WELCOME.
FANCY NEW STUDIO HERE, ONE YOU
KNOW VERY WELL.
>> Larry: CONGRATULATIONS.
>> Sandra: THANK YOU VERY MUCH.
PEOPLE ARE LOOKING FOR ANSWERS,
GAS PRICES HIGH, GROCERY BILLS
HIGH, BROKEN RECORD, WE SAY IT
EVERY DAY THEY KEEP GOING
HIGHER.
ARE YOU HEARING ANSWERS FROM
THIS ADMINISTRATION, HAVING
WORKED INSIDE OF MULTIPLE,
WHETHER OR NOT THIS WHITE HOUSE
PLANS TO TACKLE THE PROBLEM?
>> Larry: I DIDN’T SEE ANYTHING
NEW IN THE PIECE AND I THINK
WHAT JOHN JUST MENTIONED OR
HILLARY VAUGHN JUST MENTIONED,
THERE IS NO PLEDGE TO FREEZE
DOMESTIC SPENDING.
THIS PIECE IN THE JOURNAL TODAY
IS JUST FULL OF SPENDING
INCREASES, SPENDING FOR
CHILDCARE, SPENDING FOR THE
ELDER, SPENDING FOR HEALTHCARE,
SPENDING FOR INFRASTRUCTURE,
ONLY P.A. IS RULED OUT.
IF YOU ARE NOT GOING TO CUT
SPENDING, THEN YOU ARE NOT GOING
TO WIN THE FIGHT AGAINST
INFLATION AND HE TALKS ABOUT HOW
DEFICITS HAVE COME DOWN, THAT’S
TRUE FOR THIS YEAR, BECAUSE OF
THE END TO A LOT OF THE
EMERGENCY STIMI OF MARCH OF
2021.
THAT’S IT.
YOU LOOK AT THE CBO BASELINE YOU
ARE GOING TO RUN DEBT SHARE OF
GDP 110% OVER THE NEXT TEN
YEARS.
SPENDING AT RECORD HIGH, 23.5%
OF GDP.
NO END TO THE SPENDING AND THE
DEFICITS AND THE DEBT.
AND AS FAR AS THE MEETING WITH
JAY POWELL IS CONCERNED, I WOULD
LIKE TO BE A FLY ON THE WALL,
GREAT FUN.
>> Sandra: I SAY TURN THE TV
CAMERA ON, LET’S HEAR.
>> Larry: IT WOULD WE GREAT TO
DO THAT.
I DON’T THINK MR. BIDEN IS GOING
TO BE HAPPY OR HIS ADVISERS
WHEN, IF JAY POWELL TELLS THEM
WHAT’S REALLY COMING FOR
HIGHER -- LOOK, INTEREST RATES
TODAY ARE WAY BELOW THE
INFLATION RATE.
THE FED’S JOB TO GET RATES ABOVE
THE INFLATION RATE, SHRINK THEIR
BALANCE SHEET, DEFEND THE DOLLAR
AND STOP THE HUGE INCREASE IN
MONEY PRINTING.
>> Sandra: THE WHITE HOUSE WANTS
THE PLAN TO BE KNOWN, JOE BIDEN
WROTE THE PIECE, I’LL EVEN PUT
IT ON THE SCREEN.
HE SAYS A PLAN FOR FIGHTING
INFLATION, PRESIDENT BIDEN, WITH
THE RIGHT POLICIES THE U.S. CAN
TRANSITION FROM RECOVERY TO
STABLE, STEADY GROWTH AND BRING
DOWN INFLATION WITHOUT GIVING UP
ALL THESE HISTORIC GAINS.
DURING THIS TRANSITION, A WORD
THEY ARE USING OFTEN, GROWTH
WILL LOOK DIFFERENT.
WE WILL LIKELY SEE FEWER RECORD
JOB CREATION NUMBERS BER BUT
WON’T BE CAUSE FOR CONCERN.
>> Larry: IT’S GOING TO BE A
CAUSE FOR A LOT OF CONCERN,
BRINGING DOWN INFLATION IS NOT
EASY.
CAN I GO BACK TO THE WORD
TRANSITION?
THEY STARTED USING THAT LAST
WEEK.
MR. BIDEN USED IT IN JAPAN.
WHAT HE WAS REFERRING TO IS A
TRANSITION TO A GREEN ECONOMY,
THE END OF FOSSIL FUEL.
>> Sandra: THE QUIET PART OUT
LOUD AS WE WERE SAYING.
>> John: DEFENDING ESSENTIALLY
HIGH GASOLINE PRICES.
OIL IS AT $120 A BARREL TODAY.
I WANT TO TELL YOU, ANY
SO-CALLED TRANSITION TO A GREEN
ECONOMY THAT ENDS FOSSIL FUELS
WOULD BE AN ECONOMIC
CATASTROPHE.
IT WOULD BE A PERMANENT
RECESSION.
WE COULDN’T POSSIBLY DO THAT OR
AFFORD THAT.
THE JOB LOSSES WOULD BE IN THE
TENS OF MILLIONS.
I’M NOT EXAGGERATING, A LOT OF
FIRST RATE ECONOMISTS HAVE MADE
THE SAME TRANSITION.
AND IN THE PIECE OF THE WALL
STREET JOURNAL, TALKS ABOUT MORE
INVESTMENT CREDITS AND MORE TAX
CREDITS FOR GREEN.
THE GREEN NEW DEAL, YOU KNOW,
SHEEP IN SHEEP’S CLOTHING, IT’S
THE GREEN NEW DEAL MASQUERADING
AS THE GREEN NEW DEAL.
THAT DREAM, THAT CRAZINESS, THAT
WOKENESS IS GOING TO DESTROY OUR
ECONOMY.
IF THAT’S WHAT THEY MEAN BY
TRANSITION AND I THINK IT IS,
THEN WE ARE IN FOR IT.
WE ARE IN FOR IT.
>> Sandra: THIS IS BRIAN DEESE,
SAID THIS.
>> THIS IS THE IMPACT OF PUTIN’S
WAR IN UKRAINE, DIESEL AND GAS
ARE UP MORE THAN 1.50 SINCE
PUTIN STARTED AMASSING TROOPS AT
THE BORDER, WE ARE FOCUSSED ON
DOING EVERYTHING WE CAN WHILE
KEEPING THE PRESSURE ON VLADIMIR PUTIN.
>> Sandra: THAT’S THE PROBLEM,
SAID THAT THE PRESIDENT IS
OBSESSED WITH BRINGING PRICES
DOWN AND EVERYTHING THEY CAN,
BUT PRICES ONLY GO HIGHER.
>> Larry: IT’S A BIG PROBLEM.
THE STRATEGIC RESERVE WAS A BIG
FAILURE.
I DON’T CRITICIZE MY SUCCESSOR,
YOU KNOW THAT.
ONE OF THE THINGS MISSING FROM
BIDEN’S OP-ED PIECE IS A SIMPLE
CALCULUS, WE MUST INCREASE THE
PRODUCTION OF OIL AND GAS IN
ORDER TO BRING WORLD PRICES
DOWN, AND GASOLINE PRICES DOWN,
AND ONE OTHER FACTUAL
CORRECTION, THEY ARE JUSTIFYING
THE STIMULUS PACKAGE OF MARCH OF
2021, WHEN THEY SAID THE ECONOMY
HAD STALLED WHEN THEY TOOK
OFFICE.
GDP WAS 4.5% IN Q42020, AND 6.5%
IN Q12021.
THERE WAS NO STALL.
THEY SAID THE SAVING RATE HAS
IMPROVED. THE SAVINGS RATE HAS DROPPED IN
THE SAVINGS RATE HAS DROPPED IN
THE LAST YEAR FROM 12.5% TO
4.5%.
>> Sandra: WHAT IS THAT A
PREVIEW OF?
>> I THINK THEY ARE TRYING TO
PREPARE AMERICANS FOR A BIG
ECONOMIC HIT IN THE FIGHT
AGAINST INFLATION.
ALSO TELLS ME THERE’S NO CHANGE
IN THEIR GREEN POLICIES, NO
CHANGE, NO RESET, AND THERE’S NO
SPENDING --
>> Sandra: BURY DELETE.
IF THAT’S THE CASE, THAT --
WE’LL LET THEM CONTINUE TO TRY
TO EXPLAIN THEIR PLAN AS THEY
ARE DOING AND WE’LL TALK ABOUT
IT ON YOUR SHOW AT 4:00.
>> Larry: WE’LL HAVE OUR OWN
PLAN AT 4:00, WE’LL FIX THIS
THING IN EIGHT MINUTES.
>> Sandra: AND LARRY IS STILL
WITH US, JOHN LIKES TO JUMP IN
WHEN WE HAVE LARRY.
>> John: WELL, I WOULD ASK LARRY
WHAT HE THOUGHT OF THE
PRESIDENT’S OP-ED, BUT I THINK
HE’S GOT TO PREP FOR HIS SHOW.
>> Sandra: HE SAID OFF THE TOP,
I BELIEVE YOU TOLD US, THAT HE
HEARD AND READ NOTHING NEW IN
THAT PIECE.
>> Larry: JOHN, NO -- NO
INCREASE IN OIL AND GAS
PRODUCTION, NO SPENDING FREEZE,
AND A CONTINUATION.
I FORGOT TO MENTION EARLIER,
THEY WANT TO RAISE TAXES ON THE
WEALTHY ACROSS THE BOARD.
LOOK, WHAT’S CHANGED?
I DIDN’T SEE ANYTHING THAT
CHANGED.
THE ONLY FUN THING HERE WILL BE
THE MEETING BETWEEN PRESIDENT
BIDEN AND FED CHAIR JAY POWELL.
NOW, THAT’S GOING TO BE FUN WHEN
JAY SAYS I’VE GOT TO TAKE THE
INTEREST RATE ABOVE THE
INFLATION RATE, WHICH IS
DEPENDING ON HOW YOU COUNT IT, 7
OR 8%.
>> Sandra: THAT GIVES YOU A
GREAT SHOW AT 4:00.
WE SHOULD KNOW SOMETHING BY
THEN.
>> John: I WONDER WHAT PEOPLE
WOULD BE WRITING IF PRESIDENT
TRUMP MET WITH J. POWELL?
>> Larry: HE DID, WE WERE NOT
HAPPY WITH MR. POWELL, RAISED
RATES FOUR TIMES IN 2018, AND
YOU KNOW WHAT, INFLATION RATE
WAS 1.9%.
WHY DID HE RAISE RATES, I’LL
NEVER KNOW TO THIS DAY.
>> John: AND THE POVERTY RATE