PRESIDENT WILL ASK THE SAUDI’S
TO PUMP MORE OIL.
JACKIE: EDWARD WARRANTS, THANK
YOU SO MUCH JOY TO ME NOW
REPUBLIC IN INDIANA SENATOR MIKE
BRAUN.
THANK YOU FOR JOINING US GREAT
THIS IS A STAGGERING INFLATION
NUMBER TODAY.
UP 9.1% YEAR-OVER-YEAR.
AS YOU KNOW AND I KNOW AMERICANS
ARE SUFFERING FROM RISING COSTS. THE PAY THE LATEST FIGURE $6800
THE PAY THE LATEST FIGURE $6800
MORE TO LIVE AND DEAL WITH THESE
EXPENSES ON A YEARLY BASIS.
I ASK YOU THIS WITH THE ONE DRUG
AND OTHER RECONCILIATION PLAN ON
THE TABLE AND NEW CALLS FOR
RAISING TAXES ON SMALL
BUSINESSES AND MANY OTHERS IN
THIS COUNTRY TO PAY FOR SOME OF
IT.
MORE SPENDING IS NOT THE ANSWER
RIGHT NOW TO SOLVE THE HIGH
INFLATION PROBLEM GET THIS
ADMINISTRATION WANTS TO CONTINUE
TO PUSH FORWARD HOW DO YOU
RESPOND TO THAT.
>> IF THEY ARE TRYING TO BE
OPPORTUNISTIC TO SEIZE THE
MOMENT THAT THERE STILL EMPOWER
THEY ARE GOING TO KILL THE
COUNTRY DOING IT READ LOOK AT
WHERE WE WERE PRE-COVID.
WE HAD PAY INCREASES WITH NO
INFLATION, NOW YOU HAVE A PAY
CUT LITERALLY BECAUSE HIS 9.1%
INFLATION I HAVE TO GO BACK TO
WHEN I FIRST GOT A HOME MORTGAGE
AND WE ADDED 10%.
PAUL VOLKER HAD TO TAKE INTEREST
RATES UP TO 18% DO NOT GET BACK.
THIS ISN’T GOING TO BE NEAR AS
EASY THIS TIME EITHER.
THEY’VE DONE ENOUGH DAMAGE, YOU
CANNOT SPEND YOUR WAY, YOU
CANNOT SHUT THE ECONOMY DOWN,
THE FED FINANCED IT ALL, SADLY
THEY NEED TO DO NOTHING, BUT THE
SYSTEM START TO MORPH BACK WHERE
IT WAS PRE-COVID THAT WAS THE BEST STRETCH OF ECONOMY WE’VE
BEST STRETCH OF ECONOMY WE’VE
HAD IN DECADES.
JACKIE: ALL MAKE THE POINT WHEN
INTEREST RATES WERE RAISED BY
PAUL VOLKER AND YETTA PRESIDENT
RONALD REAGAN WHO CUT TAXES TO
HELP TRY TO PUT THE WHOLE PIECE
TOGETHER IT’S NOT A ONE-SIDED
COMBINATION EFFORT IF YOU WILL
IN THIS ADMINISTRATION WANTS TO
RAISE TAXES.
THAT’S WHEN PEOPLE START TO
WONDER WHAT IT IS WE ARE DOING
HERE.
I WILL ASK YOU THIS THIS IS MY
PREDICTION FOR SOMETIME PEOPLE
HAVE NOT REJOINED THE LABOR
MARKET THE LABOR FORCE
PARTICIPATION HAS BEEN
HISTORICALLY LOW I BEEN SAYING
THEY GOT SO USED TO THE STIMULUS
AND THE FREEBIES THEY BASICALLY
SAID IF WE STAY HOME LONG ENOUGH
AND MAKE THE PROBLEM BAD ENOUGH
WE ARE GOING TO FORCE THEIR HAND
TO DO IT AGAIN AND IF THIS
RECONCILIATION BILL PASSES
THAT’S IN ESSENCE WHAT I SEE
HAPPENING HERE.
>> WE OUGHT TO TAKE THE CUE FROM
WHAT THAT DID THAT INCENTIVIZE
PEOPLE TO STAY HOME, WATCH
NETFLIX.
I WAS GLAD TO SEE NETFLIX
SUBSCRIPTIONS DROP FOR FIVE
MONTHS AGO THAT MEANS WERE
WEANING OURSELVES BACK INTO
WHATEVER NORMAL IS.
WE CANNOT DO THAT AGAIN.
IF WE DO IT AND PROLONGS IT IT’S
THEIR ONLY LOVER THEY ARE
WILLING TO PULL IN THOSE TAX
CUTS YOU ARE TALKING ABOUT THAT
DROVE THE ECONOMY FROM MAIN
STREET AND THEIR WANTING TO ADD
THAT ONTO FLOW-THROUGH’S, THOSE
ARE THE BUSINESSES THAT MOST
SMALL BUSINESSES ARE ORGANIZED
AS NOT THE BIG CORPORATION.
IT WOULD BE A DOUBLE WAY OF ME
THEY NEED TO QUIT DOING THINGS
AND JUST BECAUSE IT WAS A GOOD
ECONOMY, A TRUMP ECONOMY
PRE-COVID LOOK TO SEE WHAT WAS
WORKING AND LET’S GET BACK TO
IT.
JACKIE: ’S EDITOR LET ME ASK
ABOUT THESE NUMBERS SPECIFICALLY
WE CAN DIG INTO THESE NUMBERS
FOR A MOMENT.
9.1% YEAR-OVER-YEAR CPI THE
COURT NUMBER WHICH THE ADMINISTRATION LIKES TO POINT TO
ADMINISTRATION LIKES TO POINT TO
5.9% ONLY KICKS DOWN ONE POINT
NINTH OF 8% PRE-PRESIDENT BIDEN
ACKNOWLEDGED HIGH INFLATION IS
AN ACCEPTABLE.
WHEN HE SAYS THAT HE EXPLAINS IT
AWAY AND PEOPLE WILL FORGET HIM
IN SOME WAY BUT HAVING SAID THAT
THE ADMINISTRATION ALSO SAYS THE
REASON THAT THE CPI NUMBER WAS
SO HIGH BECAUSE HALF OF THE
ACCORDING TO THEM IS HIGH ENERGY
PRICES.
THEN I LOOK AT THE COURT NUMBER
AND SAY IF THAT WERE TRUE THEN
CORE INFLATION WOULD BE MOVING
LOWER FASTER AND IT IS NOT.
>> IF YOU GO BACK TO WHEN THIS
HAPPENED HISTORICALLY, ENERGY
PRICES WERE THE CULPRIT THEN
JUST FOR A DIFFERENT REASON.
AND HE NEEDS TO AGAIN LOOK AT
HISTORY.
WHEN VOLKER TOOK INTEREST RATES
UP TO 20% IN THE FALL OF 81 IT
TOOK UNTIL 1986 TO GET BACK DOWN
TO 2%.
THAT WAS WHEN YOU COULD USE THE
MEDICINE OF HIGH INTEREST RATES,
YOU CAN’T EVEN DO THAT NOW WITH
ALL THE DEBT IN THE ECONOMY
ESPECIALLY OUR GOVERNMENT WE
TAKE IT FOR ANOTHER REASON.
HE CAN’T KEEP TELLING THE THINGS
THAT WE KNOW ARE TRUE AND YOU
CAN’T SUGARCOAT WHAT WE’VE SEEN
HAPPEN 40 YEARS AGO HAPPENING
AGAIN.
PLEASE JUST DON’T DO ANYMORE,
QUIT DIGGING THE HOLE DEEPER.
>> THAT’S A GREAT POINT BUT ALSO
I WAS WATCHING NEIL CAVUTO FOX
NEWS AND HE HAD A GREAT POINT HE
SAID I LOOK AT THIS 9.1% NUMBER
AND I THINK INFLATION IS HIGHER
THAN THAT IF IT GETS CLOSER TO
10%. IT DOES NOT ACCOUNT FOR FACTORS
IT DOES NOT ACCOUNT FOR FACTORS
THAT WE SEE IN THE GROCERY STORE
STORE, SHRINK INFLATION, DOESN’T
NECESSARILY RAISE THE PRICE BUT
THE GIVING YOU LESS IN THE
PACKAGE.
THE UNDERLINING OUTLINE ELEMENTS
IN THIS ECONOMY THAT AREN’T EVEN
BEING ACCOUNTED FOR IN NEW
ESTIMATES SUGGEST THAT INFLATION
COULD GO HIGHER THAN 10% OR EVEN
POSSIBLY CLOSER TO 11%.
IT DOES NOT FEEL LIKE THEY GOT A
GRIP ON IT.
NOW YOU HAVE A FED HIS GOING
AFTER RAISE ANOTHER POINT.
>> WHAT YOU’RE TALKING ABOUT
WHEN YOU GET INTO AN
INFLATIONARY MODE LIKE WE HAD
FROM THE MID-70s ALL THE WAY
THROUGH THE MID-80s, PEOPLE
START BUYING AHEAD AND THINKING
THE PRICES ARE GOING TO KEEP
GOING UP AND THEY FUEL IT YET
THINGS LIKE YOU TALKED ABOUT
SHRINKAGE YOU GET LESS IN THAT
PACKAGE THAT COST THE SAME OR
MORE.
ALL OF THAT IS PART OF WHAT THEY
NEVER THOUGHT ABOUT WHEN THEY
UNLEASHED IT WITH THE BIGGEST
FISCAL STIMULUS, THE FED
ACCOMMODATING IT AND NOW WERE
WORKING THROUGH IT.
THE ONLY GOOD NEWS THE ECONOMY
WAS STRONG PRE-COVID AND I THINK
THAT IS THE THING THAT IS GOING
TO GET US OUT OF THIS A LITTLE
QUICKER THAN WHAT IT MIGHT HAVE