BRIEFING EVERY DAY.
SHE IS NOT SEEING AMERICANS.
THE MARKETS TAKING A TUMBLE ON
TODAY’S HORRIBLE NEWS.
DOW DOWN 800 POINTS ALREADY
THIS MORNING.
FLUCTUATING BETWEEN 700 AND 00
PLUS.
CHARLES PAYNE IS IN "FOCUS."
CHARLES, YOU SAT DOWN MOMENTS
AGO BEFORE WE STARTED.
WE’RE IN TROUBLE.
>> WE ARE IN A LOT OF TROUBLE.
LARRY LAID IT OUT PRETTY GOOD
BECAUSE, YOU KNOW, THE EXPERTS,
EVERYONE THOUGHT MAYBE WE WOULD
HAVE PEAK INFLATION IN DECEMBER.
THEN JANUARY, FEBRUARY, MARCH,
APRIL, MAY.
AND IT IS PERSISTENT AND WON’T
GO AWAY.
THEY CREATED A MONSTER, A BEAST.
IT IS HARD TO --
>> Harris: WHO CREATED A BEAST.
>> THE FEDERAL RESERVE PUMPED A
LOT OF MONEY TO OUR ECONOMY.
THAT MONEY DOESN’T GET INTO
REGULAR FOLKS’ HANDS.
HELPS MOSTLY CORPORATIONS.
THAT LAST BIT OF CASH THAT THE
BIDEN ADMINISTRATION PUT IN,
THE 1.9 TRILLION PAYING PEOPLE
TWICE AS MUCH MONEY TO STAY AT
HOME THAN TO GO TO WORK.
THE STIMULUS CHECKS, ALL THAT
CREATED AN ENVIRONMENT WHERE WE
JUST WENT OUT AND SPENT THE
HELL OUT OF IT AND CREATED
THESE PROBLEMS.
ON THE WAGE SIDE WHAT HAPPENED
IS, OF COURSE, IF PEOPLE CAN
MAKE MORE MONEY STAYING AT HOME
THAN NOT GOING TO WORK THEN YOU
HAVE A PROBLEM FOR BUSINESSES.
WHAT BUSINESSES HAVE TRIED TO
DO IS RAISE WAGES.
THAT’S HOW WE HAVE THE
WAGE/PRICE SPIRAL.
THIS YEAR SMALL BUSINESSES LOST
EMPLOYEES EVERY SINGLE MONTH.
THEY’VE LOST EMPLOYEES OVER A
QUARTER MILLION.
THEY CAN’T KEEP UP.
AMAZON PAYING $25 THE SHOP NEXT
DOOR CAN’T KEEP UP.
SO IT’S ALL OVER THE PLACE.
HERE IS THE INTERESTING THING
ABOUT THE MARKET AND WHAT IT IS
TELLING US.
WE WENT DOWN 500 POINTS IN THE
DOW WHEN THE NEWS CAME OUT.
>> Harris: WITHIN SECONDS.
>> WE WERE MOVING THIS WAY AND
THEN ANOTHER GUT PUNCH.
>> Harris: AMERICANS AND WHAT
WE’RE FEELING.
>> THE CONSUMER SENTIMENT
NUMBER CAME IN AT AN ALL-TIME
LOW.
ALL-TIME LOW FOR 85 YEARS,
ALL-TIME LOW.
>> Harris: WHAT DOES THAT MEAN?
>> WE’VE NEVER FELT THIS CRAPPY
BEFORE.
JUST TO PUT IT IN A NUTSHELL.
WE’VE NEVER FELT THIS CRAPPY
BEFORE.
SO WE WENT DOWN THE EXTRA 300
POINTS.
>> Harris: SO BECAUSE THE
MARKETS UNDERSTAND WHEN PEOPLE
FEEL THAT BAD AND THAT DISMAL
AND THAT DESPAIR IN THEIR SOUL,
IT AFFECTS EVERYTHING THEY DO.
>> SURE. >> Harris: EVERYTHING WE DO.
>> Harris: EVERYTHING WE DO.
IF I DON’T WANT TO SPEND $5,
$10 A GALLON FOR SOME IN
CALIFORNIA NOW, RIGHT?
IF I DON’T WANT TO DO THAT.
IF I WANT TO SIT HOME AND DON’T
WANT TO PARTICIPATE IN THE
WORKFORCE AND COLLECT HELP
CHECKS I CAN SIT DOWN AND THAT
HURTS US EVEN MORE.
>> THAT’S WHAT GOT US IN THIS
SITUATION, RIGHT?
HOW WE ENDED UP.
IRONICALLY PEOPLE MAY HAVE TO
GET TWO JOBS TO GET -- REALLY,
CHECK THIS OUT.
A SURVEY THAT CAME OUT.
I WANT YOU TO LISTEN TO SOME OF
THIS.
87% OF PEOPLE MADE AN EFFORT TO
FIND CHEAPER PRICES ON PRODUCTS
THEY BUY.
77% HAVE CUT BACK ON SPENDING
ON ENTERTAINMENT OR EATING OUT.
77% PUT OFF PURCHASES.
59% OF PEOPLE MINIMIZE THE USE
OF ELECTRICITY.
>> Harris: HOW DO YOU DO THAT?
>> KEEP SOME LIGHTS OFF.
>> Harris: IN CALIFORNIA THEY
HAVE A HEAT WAVE.
>> THINK ABOUT THAT.
TURN OFF THESE LIGHTS.
LISTEN, WHEN I GREW UP MY MOM
SAID THAT.
WE WERE PERPETUALLY IN THIS
SITUATION.
WE HAVEN’T BEEN ACCUSTOMED TO
THIS IN A LONG TIME.
OTHER SURVEYS 9% OF FAMILIES
ARE SKIPPING A MEAL.
40% OF FAMILIES ARE SAYING A
PARENT WILL CHOOSE TO SKIP OR
EVENING WILL CHOOSE TO SKIP A
MEAL SO ALL THE CHILDREN CAN
EAT.
THIS IS WHERE WE BARREL THROUGH
AND THIS IS SCARY STUFF.
THIS IS SCARY STUFF.
>> Harris: I’M TAKING NOTES AS
YOU ARE SAYING THAT AND
REMEMBERING HERE RECENTLY THE
TREASURY SECRETARY JANET YELLEN
AND REMEMBERING HER RECENTLY
AND THE INELOQUENT WORDS SHE
SAID.
I’M SORRY I GOT IT WRONG.
YES, STOP TALKING.
HOW THE MICHIGAN SENATOR DRIVES
A ELECTRIC CAR AND CAN DRIVE
PAST THE HIGH PRICES.
YOU TOLD ME 59% OF PEOPLE ARE
MAKING ELECTRICITY DECISIONS.
HAS ANYBODY TOLD HER THAT CAR
RUNS ON ELECTRICITY?
>> IT COMES FROM NATURAL GAS UP
MORE THAN CRUDE OIL AND IT GOES
INTO THE MAKING OF FERTILIZER.
WHEN SHE IS PATTING HERSELF ON
THE BACK DRIVING AN ELECTRIC
VEHICLE SHE SHOULDN’T FEEL TOO
GOOD.
A LOT OF CONSTITUENTS AREN’T
EATING.
>> Harris: YOU ALWAYS HAVE SOME
GOOD NEWS FOR US.
I WANT TO GET TO THAT.
HERE IS PRESIDENT BIDEN’S TOP
ECONOMIC ADVISOR BRIAN DEESE
WHEN HE WAS ASKED ABOUT
INFLATION JUST TODAY ON A
COMPETING NETWORK AND HE STUCK
TO THE TALKING POINTS.
>> TODAY’S NUMBER UNDERSCORES
THE CHALLENGE WE HAVE WITH
ENERGY PRICES THAT YOU WERE
JUST DISCUSSING.
IT ALSO UNDERSCORES WHY IT IS
SO IMPORTANT THE PRESIDENT IS
DOING WHAT HE IS DOING.
MAKING FIGHTING INFLATION HIS
TOP PRIORITY.
THE PRICE OF THE GAS AT THE
PUMP IS UP $1.70 SINCE PUTIN
AMASSED TROOPS ON THE BORDER.
THAT’S A IMPACT OF WAR.
WE HAVE TO STAND AGAINST THAT
AGGRESSION.
>> Harris: YOU KNOW WHAT I
DON’T LIKE OTHER THAN A HOLLOW
APOLOGY THAT MEANS NOTHING FROM
YELLEN AND THE OTHERS, IT IS
JUST MANIPULATION.
I HATE WHEN THEY LIE US TO.
DO WE THINK WE’RE STUPID ENOUGH
TO BELIEVE THE WAR THAT STARTED
100 DAYS AGO IS THE REASON
WE’VE BEEN IN THIS STICKY
WICKET FOR A YEAR?
>> IT’S INSULTING AND
EMBARRASSING AND HURTS MORE
WHEN THE AVERAGE PERSON IS
HURTING. REAL WAGES WHEN YOU ADJUST FOR
REAL WAGES WHEN YOU ADJUST FOR
INFLATION HAVE BEEN DOWN MINUS
3.7,.US 1.2 AND 8/10 PERCENT,
1.7, 2.4, 1.9.
THEY KEEP GOING DOWN.
I’M TALKING REAL WAGES.
THERE IS A NOMINAL WAGE THAT
YOU GET IN YOUR PAYCHECK AND
HOW FAR IT GOES IN THE ECONOMY.
REAL WAGES HAVE BEEN DOWN.
THE REASON I POINT ALL THESE
OUT I STARTED WITH THE MONTH
AFTER THAT 1.9 TRILLION WAS
SIGNED OFF.
REAL WAGES HAVE GONE DOWN EVERY
MONTH SINCE THEN.
WE FOUND OUT TODAY IN MAY THEY
WERE DOWN 8.3% AND WHY PEOPLE
ARE SUFFERING.
YOU HAVE A BIGGER PAYCHECK.
WHEN YOU WALK IN THE STORE YOU
COME OUT WITH FEWER BAGS THAN
YOU DID A YEAR AGO.
>> Harris: YOU CAN SEE THE
DISPROPORTION BETWEEN WHAT WE
ARE TAKING IN AND HOW IT REALLY
SPENDS AND --
>> Bill: INFLATION IS CRUSHING
IT.
>> Harris: IT’S LIKE AN ENGINE
DRIVING OVER US.
>> YOU CAN’T REEL IT IN.
IT FEEDS ON ITSELF.
IF YOU THINK PRICES WILL BE
HIGHER TWO MONTHS FROM NOW AND
THERE IS SOMETHING YOU WANT TO
GET ONE OF YOUR KIDS HAD TO GET
HIM A SUIT OR SOMETHING, YOU
WILL GET IT NOW.
SO WE’RE ALL RUSHING OUT THERE
TRYING TO GET AHEAD OF THAT.
>> Harris: PUT MORE DEMAND
WHICH MAKES PRICES GO UP AGAIN.
>> IT IS A SPIRAL.
WE HAVE TO WAIT IT OUT.
THE FED WILL TRY TO DO THEIR
PART.
WE’LL SEE.
>> Harris: PRESIDENT BIDEN,
WHAT IS HIS ROLE?
>> IF HE WOULD JUST COMMUNICATE
BETTER WITH US.
HONESTY IS THE MOST IMPORTANT
THING RIGHT NOW.
>> Harris: DO YOU THINK THERE
IS NOTHING HE CAN DO AT THIS
POINT?
>> EXPECTATIONS DRIVE
EVERYTHING.
IF HE CAN HELP US WITH
EXPECTATIONS TO FEEL BETTER
THEY’LL DO THE RIGHT THING
INSTEAD OF MAKING EXCUSES ABOUT
PUTIN, THAT WOULD BE GOOD.
THEN THE FEDERAL RESERVE HAS TO
BE AGGRESSIVE.
>> Harris: THE PRESIDENT SAID
HE WOULDN’T INTERFERE WITH THE
FEDERAL RESERVE.
HE HAD THE CHAIR OVER TO THE
WHITE HOUSE TO LUNCH.
>> HE WON’T INTERFERE WITH THEM
BUT HE WANTS TO SPILL MORE
KEROSENE ON THIS FIRE HE
CREATED.
IT IS JUST NUTS.
>> Harris: IT IS THE WEEKEND,