E-MAILS ON HIS APPEARANCE: THIS
867 -- 86-YEAR-OLD BILLIONAIRE
TITAN’S VIEW IS WE JUST
IMMEDIATE TO START CHANGING
POLICIES.
STEVE FORBES WITH US RIGHT NOW.
FORGET ABOUT RELIVING THE CARTER
YEARS, POTENTIALLY WE COULD HAVE
SOMETHING WORSE THAN THE CARTER
YEARS.
WHAT DO YOU THINK OF THAT?
>> YEAH, KEN LANGONE IS
ABSOLUTELY RIGHT ABOUT THE LOST
YEAR.
THAT’S ONE THING ABOUT SUPPLY
CHAINS -- YES, THEY WERE
DISRUPTED.
THERE ARE TWO KINDS OF
INFLATION.
ONE IS MONETARY INFLATION, THE
OTHER IS NONIF MONETARY.
THE NONMONETARY CAME OFF THE
COVID LOCKDOWNS, BUT THIS
ADMINISTRATION’S MADE THE
RECOVERY FROM THAT WORSE, NOT
BETTER, STARTING WITH ENERGY AND
THE 77 EXECUTIVE ORDERS THIS
GUY’S PASSED, PRESIDENT BIDEN’S
PASSED, THAT’SED ADDED $200
BILLION IN REGULATORY COSTS.
SO THEY’VE MADE A BAD SITUATION
WORSE.
THEN YOU HAVE THE FEDERAL
RESERVE CREATING MOUNDS OF
MONEY, BIDEN WANTED TO SEND --
CAN SPEND MORE MONEY, AND THE
FEDERAL RESERVE MONETIZED THAT
BY BUYING ALL THOSE BONDS.
THEY HAVE $1.7 TRILLION THAT
THEY BORROW EACH NIGHT FROM
BANKS HOPING THAT DOESN’T FLOOD
INTO THE ECONOMY, MONEY THEY
CREATED OUT OF THIN AIR.
THAT’S GOING TO HIT THE ECONOMY
SOON ENOUGH.
SO IN TERMS OF THE BLAME, ALL
THEY HAVE TO DO IS LOOKED IN THE
MIRROR.
THEY TOOK A SITUATION THAT WAS
BEGINNING TO HEAL ITSELF AND
MADE IT INFINITELY WORSE.
NEIL: ALL RIGHT.
WELL, THERE GOES MY LUNCH.
[LAUGHTER]
STEVE, REPUBLICANS ARE NOT
WITHOUT SOME RESPONSIBILITY
HERE.
I BELIEVE A LOT OF THAT BIG
SPENDING, AND EVEN PRECOVID,
STARTED UNDER PRESIDENT TRUMP AS
WELL.
THERE WAS A LOT OF EXCESSIVE
SPENDING.
YOU KNOW, IT WAS GOING ON THERE
AS WELL.
I UNDERSTAND WHAT YOU’RE SAYING
NOW AFTER THE FACT, THE PILE-ON
HERE, BUT I DO FIND A LITTLE
SUSPECT FOR REPUBLICANS TO
GATHER AROUND AND SAY WE’RE THE
PARTY OF FISCAL AUSTERITY.
LIKE ME SAYING I’M THE PRESIDENT
OF THE NATIONAL FITNESS PROGRAM.
ME THINKS NOT.
YOUR THOUGHTS.
>> WELL, IN MY EYES, YOU ARE --
[LAUGHTER]
NEIL: NO, BUT ALL I’M SAYING IS
EACH PARTY DOES THIS, AND I GET
IT, THE DEBT PILES UP, THE
SPENDING PILES UP, BUT I’M
WONDERING IF IN THIS CASE, YOU
KNOW, IT’S ONE THING FOR
PRESIDENT BIDEN TO SAY I CAN’T
WITH BLAME -- BE BLAMED FOR ALL
OF THIS.
I AGREE, HE SHOULD BE TAKING
RESPONSIBILITY FOR SOME OF IT,
BUT REPUBLICANS TOO, NO?
>> YEAH, THEY DID SOME SPENDING,
AND THEY SHARE PART OF THE BLAME
FOR IT.
THE FEDERAL RESERVE STARTED TO
KNOCK DOWN THE DOLLAR BACK IN
2018, 2019.
SO THEY’RE -- THEY WERE STARTING
TO --
NEIL: IF DO YOU THINK THE
FEDERAL RESERVE’S OVERDOING IT
NOW, STEVE?
>> YES, AND THAT’S A REAL
DANGER.
THEY SHOULD NOT BE SETTING
INTEREST RATES.
THEY SHOULD LET THE MARKET SET
INTEREST RATES.
ALREADY YOU’VE SEEN THE MORTGAGE
MARKET IN ANTICIPATION GO FROM
2.5% 30-YEAR MORTGAGE TO 5,
WATCH OUT.
SO THE FEDERAL RESERVE DOES NOT
KNOW HOW TO FIGHT INFLATION.
THEY THINK YOU DO IT BY
DEPRESSING THE ECONOMY.
OH, HAVE A SOFT LANDING.
USUALLY IT’S A CRASH LANDING --
[INAUDIBLE CONVERSATIONS]
NEIL: -- HIKE RATES PRETTY
AGGRESSIVE, I THINK THEY’RE
LOOKING FOR A HALF-POINT HIKE IN
THE MAY MEETING, ANOTHER IN THE
JUNE MEETING.
ARE THEY OVERDOING IT?
NOT ENOUGH?
WHAT DO YOU THINK?
>> THEY’RE DOING IT THE WRONG
WAY.
IF THEY -- WHAT THEY SHOULD DO
IS PUT A CEILING ON SHORT-TERM
RATES AND RELATE THE MARKETS --
LEAPT THE MARKETS SET THE RATES.
THEY’RE TRYING TO CONTROL THE
PRICE OF MONEY.
THEY NEVER GET IT RIGHT.
THE QUESTION IS HOW MUCH DAMAGE
ARE THEY GOING TO DO.
SO THE FEDERAL --
NEIL: IT WORKED FOR PAUL VOLCKER
THOUGH, RIGHT?
HE WAS CHANGING INTEREST RATES,
HIKING THEM ONE POINT AT A TIME
I. WORKED FOR HIM.
>> WELL, BY THE TIME HE CAME IN
WE’D HAD 12 YEARS OF EVER
WORSENING INFLATION, AND HE
FELT, OKAY, WE HAVE TO DO
DRASTIC MEASURES NOW.
AND SO WE WENT INTO A RECESSION,
10.5, 11% UNEMPLOYMENT.
WE DON’T HAVE TO DO THAT HERE.
NEIL: ALL RIGHT.
>> THE QUICKER THE FED ACTS, THE
LESS THE DISRUPTIONS.
BUT THE LONGER THEY DELAY LIKE
LAST YEAR WHEN POWELL WANTED TO
BE REAPPOINTED AND AND THE
DICTATES OF THE WHITE HOUSE, WE
NOW HAVE, AS THEY SAY, A FINE
MESS.
NEIL: WELL, I’M TOO YOUNG TO
REMEMBER THAT LATE ’70s, EARLY
’80s EXPERIMENT.
STEVE, ALWAYS GREAT TALKING TO