ALL RIGHT, SUSAN, THANK YOU VERY
MUCH.
MEANTIME, PRESIDENT BIDEN’S
ECONOMIC ADVISOR, JARA BERNSTEIN
HAD THIS TO SAY ABOUT A POSSIBLE
RECESSION.
TAKE A LISTEN.
>> IT IS VERY HARD TO CONCLUDE
THAT WE ARE IN A RECESSION WHEN
YOU LOOK AT THE PAYROLL AND THE
JOB GAINS THAT WE’VE SEEN.
NOW, IT IS TRICKY TO LOOK AROUND
A CORNER HERE AND I’M NOT GOING
TO PREDICT QUARTERS DOWN THE
ROAD.
ASHLEY: A-HA.
WELL IF HE DOESN’T THOUGH, WHO
DOES, WELL I’LL TELL YOU WHO
MIGHT NO AND HE JOINS US NOW AND
IT’S STEVE FORBES.
STEVE, DO YOU THINK WE’RE IN A
RECESSION?
>> I THINK TENS OF MILLIONS OF
AMERICANS FEEL WE’RE IN A
RECESSION RIGHT NOW WHEN PRICES
ARE STILL RISING FASTER THAN
INCOMES.
SO WHATEVER NAME ECONOMISTS WANT
TO GIVE TO IT, PEOPLE ARE
FEELING A LOT OF HURT.
THEY DON’T SEE MUCH FAITH IN THE
FUTURE.
THEY SEE MORTGAGE RATES GOING
UP EVEN THOUGH THEY COME OFF
SOME, THERE’S STILL ABOUT TWICE
WHAT THEY WERE A YEAR AGO WHICH
MEANS THOSE ADJUSTABLE MORTGAGES
HIT HOUSEHOLDS TOO.
THAT’S HURTING FUTURE HOUSING
SALES AS WELL, SO THEY CAN SPIN
IT ANYWAY THEY WANT.
THE ECONOMY IS NOT GOING THE WAY
IT SHOULD, AND THE AMERICAN
PEOPLE KNOW IT.
ASHLEY: WHAT KIND OF DAMAGE
COULD THE FED DO?
WE KNOW THEY’RE WAY BEHIND THE
CURVE.
THEY ARE PLAYING CATCHUP.
WHAT ARE YOUR THOUGHTS ON THAT?
>> OH, THE FEDERAL RESERVE IS
GUILTY OF ECONOMIC MALPRACTICE.
THEY ARE RAISING INTEREST RATES
ARTIFICIALLY NOW, THEY FEEL THE
WAY YOU FIGHT INFLATION IS
BY DEPRESSING THE ECONOMY, AND
THEN STATE IT THAT WAY BUT THEY
WANT TO CRUSH DEMAND AND OF
COURSE THAT WILL BRING PRICES
DOWN.
IF YOU REDUCE THE NUMBER OF
BUYERS, REDUCE PEOPLE’S INCOMES,
THROW THEM OUT OF WORK, YOU HAVE
GOING OUT OF BUSINESS SALES THAT
LEADS TO LOWER PRICES, BUT IT’S
NOT THE WAY YOU CREATE A HEALTHY
ECONOMY.
YOU CREATE A HEALTHY ECONOMY BY
INCREASING PRODUCTION, NOT BY
DECREASING IT, BUT THE FED
HASN’T LEARNED THAT LESSON BUT
HAVE YOU TO GIVE THEM A LITTLE
SLACK.
THEY HAVE ONLY BEEN AROUND ABOUT
110 YEARS.
>> [LAUGHTER]
ASHLEY: I KNEW THAT WAS COMING,
NEXT ONE, STEVE.
A FORMER ADVISOR TO PRESIDENT
OBAMA SAYS THE DEMOCRATS ARE
DOOMED BY INFLATION.
JASON FURMAN TELLING THE NEW
YORK TIMES, "MY GUESS IS THAT
THE NEGATIVE VIEWS ABOUT
INFLATION ARE SO DEEPLY BAKED IN
THAT NOTHING CAN CHANGE IN THE
NEXT FEW MONTHS TO CHANGE
THEM."
UM, LOOKING A LITTLE FURTHER
OUT, STEVE, PERHAPS NOVEMBER,
WHAT’S YOUR PREDICTION?
>> WELL, INFLATION MAKES IT
SOUND LIKE PEOPLE ARE KIND OF
CRAZY THINKING INFLATION IS
EMBEDDED IN WHEN EVEN IF GAS
PRICES COME DOWN YOU’RE STILL
PAYING 80% MORE THAN YOU DID A
YEAR AGO.
OH, THOSE POOR PEOPLE, BUT THE
FACT OF THE MATTER IS,
PEOPLE CAN SEE REALITY VERY
CLEARLY.
THEY KNOW THIS ADMINISTRATION
HASN’T A CLUE.
THEY WANT HIGHER TAXES, THEY
STILL WANT TO WAGE WAR WAR
AGAINST OIL & GAS, EVEN THOUGH
NATURAL GAS HAS NOW BEEN
DECLARED BY THE EUROPEANS WHO
ARE VERY CLEAN AS A CLEAN FUEL.
HELLO, WHITE HOUSE, GET
UP-TO-DATE, BUT SO YES.
INFLATION IS GOING TO BE AROUND
US FOR A WHILE BOTH THE MONETARY
KIND AND NON-MONETARY KIND.
ASHLEY: VERY QUICKLY, STEVE.
THE PRESIDENT COMES BACK FROM
HIS MID-EAST TRIP BASICALLY WITH
ABSOLUTELY NOTHING VERY STRANGE
KIND OF VISIT WITH SAUDI ARABIA
AND CONFLICTING REPORTS OF WHAT
WAS SAID AND WHAT WAS NOT SAID,
BUT I THINK IT REALLY SHOWS A
LACK OF LEADERSHIP FROM THIS
ADMINISTRATION.
WHAT SAY YOU?
>> WELL, THE FACT THAT HE FELT
HE HAD TO GO OVER THERE COULDN’T
EVEN SHAKE THE PRINCE’S HAND,
HOW TO DO THE KNUCKLE THING,
SHOWS WHAT I THINK A KNUCKLE
HEADED POLICY THEY’VE HAD
TOWARDS THE MIDDLE EAST.
ASHLEY: [LAUGHTER]
>> TRUMP PUT IN VERY GOOD
POLICIES INCLUDING THE ABRAHAM
ACCORD WHICH IS WHY ULTIMATELY I
THINK YOU’RE GOING TO SEE
RELATIONS FORMER RELATIONS
BETWEEN SAUDI ARABIA AND ISRAEL.
THEY REALIZE THE REAL THREAT IS
COMING FROM IRAN.
THEY ARE GOING TO REALIZE THEY
HAVE TO DO SOMETHING ABOUT IT,
SO BIDEN COMES HOME AND MAYBE
INSTEAD OF BEGGING THE SAUDIS
FOR OIL, HOW ABOUT GOING TO
NORTH DAKOTA, TEXAS, AND
LOUISIANA AND BEGGING FOR OIL
PRODUCTION THERE.
HE’D GET A GOOD RESPONSE.
ASHLEY: STEVE FORBES ON FIRE
THIS MONDAY.
STEVE, TERRIFIC STUFF, THANK YOU
SO MUCH FOR JOINING US TODAY.