OUR HANDS.
♪.
LARRY: HELLO, FOLKS, WELCOME TO
"KUDLOW," I’M LARRY KUDLOW.
SO JAY POWELL’S FED WHEN AHEAD
RAISED THEIR TARGET RATE 75
BASIS POINTS TO 2 1/2% AS THE
WORLD EXPECTED, NO BIG SURPRISE.
IN FACT THE STOCK MARKET
INCREASED 500 POINTS, 434 POINTS
AT THE CLOSE.
BONDS BASICALLY FLAT.
10-YEAR, 2.79.
GOLD UP A LITTLE BIT 18 BUCKS IF
HE HAD A LITTLE MORE HAIR ON HIS
CHEST HE WOULD HAVE DONE 100
BASIS POINTS.
MY THEORY THE FASTER THE FED
GETS THE TARGET RATE ABOVE
INFLATION, DRAINS EXCESS CASH IN
THE ECONOMY, MOVES BACK TO PRICE
STABILITY, THE FASTER THE
ECONOMY CAN START GROWING AGAIN.
REMEMBER THE FED’S RECENT
TIGHTENING MOVES HAVE NOT YET
SIGNIFICANTLY IMPACTED THE
ECONOMY REALLY.
THAT IS STILL AHEAD OF US.
THE ECONOMIC SLUMP IN THE FIRST
HALF OF THE YEAR IS BASICALLY A
FUNCTION OF SKYROCKETING
INFLATION WHICH IS UNDERMINED
REAL WAGES AND REAL RETAIL SALES
AND COMPLETELY DAMAGED CONSUMER
AND SMALL BUSINESS CONFIDENCE.
FOR EXAMPLE, IF YOU LOOK A LOOK
AT YESTERDAY’S CONFERENCE BOARD
REPORT, CONSUMER CONFIDENCE
SURGEON SAY DROPPED LIKE A
STONE.
JULY READING, 95.7.
A YEAR AGO, 125.1.
THAT IS A DROP OF 23%.
CONSUMER INFLATION EXPECTATIONS
FOR THE NEXT YEAR, 7.6% WHICH I
FIND TO BE JUST ABOUT RIGHT.
NOW MARKET SIGNALS ARE
SUGGESTING A PEAK OF INFLATION
BUT THE POINT IS IT IS GOING TO
BE STICKY ON THE WAY DOWN AND IT
IS GOING TO TAKE OVER A YEAR,
MAYBE TWO YEARS IF THE FED IS
EVER GOING TO GET BACK TO ITS 2%
TARGET.
THIS IS NOT GOING TO BE EASY.
IF YOU WANT ANY SEMBLANCE OF
GROWTH IN THE ECONOMY YOU HAVE
GOT TO EXTEND THE TRUMP TAX CUTS
AND YOU GOT TO SLASH BIDEN’S
MODERN SOCIALISM REGULATORY
SCOURGE.
LIKE HIS JIHAD AGAINST FOSSIL
FUELS FOR THAT MATTER,
OPPOSITION TO PROFITS,
INSISTENCE THAT THE FOCAL POINT
OF HIS PROGRESSIVE ECONOMIC
POLICY IS INCOME REDISTRIBUTION
AND RADICAL CLIMATE ACTIVISM.
THESE POLICIES HAVE TO GO AWAY.
THEY ARE OBSTRUCTING ECONOMIC
GROWTH.
LOW TAXES AND TIGHT MONEY IS THE
RIGHT RECIPE BUT THE BIDENS
DON’T GET THAT AND THEY NEVER
WILL.
NOW, THERE IS A BREAKING NEWS
STORY ABOUT THE FED.
CHINESE SPYING AND ESPIONAGE HAS
INFILTRATED OUR NATION’S CENTRAL
BANK.
NOW JAY POWELL DENIES IT BUT THE
SENATE’S COMMITTEE ON HOMELAND
SECURITY AND THE FBI AND
BRITAIN’S MI5 ARE HOT ON THE
TRAIL ISSUING A RARE JOINT
WARNING TO ALL BUSINESSES OVER
CHINESE ESPIONAGE AND CYBER
HACKING AND THE FED RESEARCH
ASSISTANTS THROUGHOUT THE SYSTEM
APPARENTLY HAVE HAD ILLEGAL
CONTACTS WITH THE CHINESE RULING
COMMUNIST PARTY.
NOW THEY ARE BEING BUSTED I
READ.
CHINA TRIED TO GET AHOLD OF
FEDERAL RESERVE ECONOMIC MODELS
AND KEY DATA POINTS AND CHINESE
EFFORTS FOR TALENT RECRUITMENT
PROGRAMS AS WELL AS ALL KINDS OF
INFORMATION SHARING.
THIS GOES ALL THE WAY BACK TO A
FED INVESTIGATION BACK IN 2015
WHERE THEY IDENTIFIED 13 PEOPLE
OF INTEREST, DUBBED THE P
NETWORK.
THAT WAS EIGHT OF THE 2007
REGIONAL RESERVE BANKS.
THEN, A FORMER OF THE EMPLOYEE
OF THE FED, IDENTIFIED AS Z,
ATTEMPTED TO RECRUIT NETWORK
MEMBERS.
THIS STUFF IS FABULOUS.
IT IS RIGHT OUT OF A JOB NOVEL,
TINKER TAILOR, SOLDIER SPY.
ROB PORTMAN IS THE LEAD
INVESTIGATOR.
HE CAN PLAY GEORGE SMILEY IN THE
NEW MOVIE REPLACES GARY OLDMAN.
WHY JAY POWELL IS DENYING THIS
IS BEYOND ME.
IF HE CONTINUES WE’LL NOT GIVE
HIM A PART IN THE NEW MOVIE.
AND TO THE PLOT A FED ECONOMIST
TRAVELING TO SHANGHAI COUPLE
YEARS AGO HAD CHINESE THUGS
BREAKING INTO HIS HOTEL ROOM
TELLING HIM HE HAS TO SHARE
SENSITIVE INFORMATION AND
ADVISED THE CHINESE COMMUNIST
GOVERNMENT.
THEY MONITORED HIS TELEPHONE
CALLS SURROUNDING HIS PRIOR
DIVORCE.
THESE GUYS PLAY TOUGH, VERY
CRUEL.
I DON’T KNOW WHY THE CHINESE
WANT THE FED’S FORECAST BECAUSE
IT NEVER VERY GOOD.
MAYBE JAY POWELL HAS
DOUBLE-AGENTS TO SPREAD BAD
INFORMATION TO CHINA.
THAT WAS A JOKE.
THIS IS A A NASTY STORY.
THIS IS ABOUT CHINESE COMMUNIST
EVIL DOING.
WHY JOE BIDEN SHOULD ABSOLUTELY
REFUSE TO MAKE ANY CONCESSIONS
TO CHINA ON TARIFFS, OR SELLING
STRATEGIC PETROLEUM OIL RESERVES
OR ANYTHING ELSE.
BUT PRESIDENT BIDEN WILL NOT BE