ALL RIGHT.
JOINING ME NOW, GREAT PLEASURE,
SANDRA SMITH, COANCHOR OF
"AMERICA REPORTS" ON FOX NEWS.
>> I’M HAPPY TO BE HERE.
I’M NOT HAPPY ABOUT THE SUBJECT
MATTER.
LARRY: COME ON, THIS IS THE MOST
FUN WE EVER HAD?
>> HOW MUCH WE TALK ABOUT THE
RISING PRICES AND YOU GO BACK TO
VERY SMART ECONOMISTS THAT WE
HAVE REFERENCED AD NAUSEUM AT
THIS POINT THAT HIGHLIGHTED THIS
WOULD BE A PROBLEM EARLY ON,
THAT WORKED IN DEMOCRATIC
ADMINISTRATIONS, STEVE RATTNER,
LARRY SUMMERS.
WHAT ARE THEY SUPPOSED TO DO,
LARRY?
I KEEP ASKING THIS QUESTION.
HOW DO THEY KEEP THEIR FAR LEFT
PROGRESSIVES HAPPY WHILE ALSO
DOING WHAT IS RIGHT TO BRING
DOWN THESE PRICES?
I MEAN WHAT IS THE ACTUAL
SOLUTION FOR THIS WHITE HOUSE TO
MAKE EVERYBODY HAPPY?
IS THERE ONE?
OR DOES HE HAVE TO YOU KNOW, PO
THEM.
LARRY: YES.
GOT TO CHANGE POLICIES.
>> OKAY.
BECAUSE THE AMERICAN PEOPLE ARE
SUFFERING.
YOU DO YOUR HOMEWORK.
LARRY: LOOK IT, THE REASON I PUT
THOSE NUMBERS IN, IN ALL
SERIOUSNESS, EVEN AT THIS LATE
DATE DEMAND IS RUNNING WELL
AHEAD OF SUPPLY.
I THINK THAT IS AN IMPORTANT
FACTOID.
IN OTHER WORDS, I DON’T HAVE TO
GO TO FISCAL POLICY ALTHOUGH WE
KNOW THE 2 TRILLION-DOLLAR
STIMULUS PACKAGE CREATED HIGH --
>> AMEN.
LARRY: I’M JUST LOOKING INSIDE
OF THE MARKET LIKE IT’S A
COMMODITY MARKET, OKAY?
I’M JUST SAYING EVEN NOW WITH
ALL OF THE GNASHING OF TEETH, WE
STILL HAVE INVENTORIES OF
GASOLINE COMING DOWN AND DEMAND
GOING UP.
WE STILL HAVE --
>> THAT ONLY HAPPENS FOR SO
LONG.
EVENTUALLY WE’LL HAVE DEMAND
DESTRUCTION WITH PRICES SO HIGH.
LARRY: WHEN WILL THAT HAPPEN?
WHEN DOES THAT HAPPEN?
>> I PUT THAT TO THE WHITE
HOUSE.
ADVISOR TO THE PRESIDENT, GENE
SPERLING, I SAID CAN YOU GIVE
US, BASED ON ROLLOUT OF THIS BIG
NEW PLAN TO BRING PRICES DOWN
WHERE DO YOU SEE PRICES GOING
TWO MONTHS FROM NOW, FOUR MONTHS
FROM NOW, SIX MONTHS, BY END OF
YEAR?
I’M NOT IN THE BUSINESS OF
FORECAST SOMETHING WHAT HE SAID.
YOU ADVICE THE PRESIDENT WITHOUT
HAVING A PLAN WHERE YOU WANT TO
BRING PRICES DOWN TOO.
BUT I HAD RO KHANNA ON, DEMOCRAT
CALIFORNIA TOP OF MY SHOW.
HE SEEMED TO BE A DEMOCRAT
BREAKING WITH THE PRESIDENT
SAYING THIS WHITE HOUSE NEEDS TO
DO MORE TO ADDRESS INFLATION.
OBVIOUSLY THEY SEE THE WRITING
ON THE WALL WHEN IT COMES TO THE
MIDTERM ELECTIONS.
WHEN I FINALLY HAD HIM ON I
ASKED HIM HOW DO YOU WANT HIM TO
GO BIG AND GO BOLD, I WANT HIM
TO TAP MORE FROM THE EMERGENCY
RESERVES WHAT HE SAID.
THAT IS THE ANSWER.
HE IS STILL PUTTING BLAME IN HIS
PIECE IN "THE NEW YORK TIMES,"
HE IS STILL, STILL SAYING
DEVASTATING PANDEMIC.
IT IS VLADMIR PUTIN ACE WAR ON
UKRAINE.
TOO MUCH MONEY CHASING TOO FEW
GOODS.
BINGO.
THAT PART.
COME ON!
LARRY: STEP BACK FOR A SECOND.
I DIDN’T, I HEARD YOU HAD A NICE
DISCUSSION WITH GENE SPERLING.
I’M SORRY I MISSED IT.
>> I WELCOMED HIM TO COME BACK
ANYTIME.
HONESTLY.
LARRY: I THINK THEIR SOLUTION IS
TO GO WOKE AND TO GO RENEWABLES.
I DON’T THINK THINK SOLUTION
WILL BE AS LONG AS THEY EVER BE
WHICH MAY COME TO AN END, I
DON’T THINK THEY WILL GO BACK TO
MORE LEASES BE MORE PERMITS FOR
OIL AND GAS.
I DON’T THINK THEY WILL.
>> YOU DON’T THINK THEY CAN GET
ANYONE REASONABLE TO SAY --
LARRY: FROM DAY ONE.
GOING BACK TO THE UKRAINE
EMERGENCY.
REMEMBER WE HAD THIS WORKING
GROUP OF THE ALLIES, NATO ALLIES
IN THE U.S. AND EUROPEANS.
WE THOUGHT FOR A MOMENT THEY
WOULD OPEN THE SPIGOTS BUT THEY
DIDN’T.
IF YOU LOOK AT FINE PRINT OF
THAT WORKING GROUP IT WAS ALL
ABOUT SUBSTITUTING RUSSIAN OIL
FOR RENEWABLES, FOR SOLAR.
JANET YELLEN TODAY, WHAT ARE THE
SOLUTIONS?
SOLAR AND WIND.
I’M SORRY THOSE WILL NOT BE THE
SOLUTIONS.
NOT NOW.
NOT EVERYONE HUNDRED%.
>> YOU COULD BE SOMEBODY LIKE A
BJORN LOMBORG IN
"THE WALL STREET JOURNAL" HE
BELIEVES THAT CAN BE THE CASE.
WE’RE NOT READY FOR IT TODAY.
YOU CAN’T INFLICT THIS AMOUNT OF
PAIN ON THE AMERICAN PEOPLE
WITHOUT A REPLACEMENT.
THERE IS NOT A REPLACEMENT
TODAY.
MY BRAIN ROOM RESEARCH YOU SAID
THIS SOUNDS LOW, THE AVERAGE
AMERICAN HOUSEHOLD IS SHELLING
OUT AN EXTRA $317 A MONTH
BECAUSE OF THE CURRENT INFLATION
RATE.
YOU CAN’T, DEMOCRATS CANNOT
CONTINUE TO HOLD POWER.
NOBODY WILL GET IN THAT PARTY
WILL BE REELECTED WHEN PEOPLE
ARE EXPERIENCING THAT TYPE OF
INFLATION.
GAS PRICES UP 105% SINCE HE TOOK
OFFICE.
I DON’T KNOW IF YOU HER ME ON MY
SHOW.
STOP REFERENCING WHEN HE TOOK
OFFICE.
LOOK WHEN BIDEN WAS ELECTED.
THAT IS WHEN THE RUNUP HAPPENED.
LARRY: I WROTE THAT INTO MY
RIFF.
THAT IS A VERY IMPORTANT POINT.
>> THIS HAPPENED LONG --
LARRY: MARKET KNEW IT WAS
COMING.
>> MARKET PRICING WHAT THEY
BELIEVE WILL HAPPEN IN THE
FUTURE.
WHEN YOU HAD CANDIDATE JOE BIDEN
STANDING ON THE DEBATE STAGE
PROMISING TO END FOSSIL FUELS,
HE IS ELECTED, GUESS WHAT?
PRICES STARTED GOING UP FROM THE
DAY HE WAS ELECTED.
LARRY: TRY THIS, IF ON THE OTHER
HAND I’M COMPLETELY WRONG AND
JOE BIDEN CHANGES, IT IS
POSSIBLE.
IF HE CHANGES STRIPES, AND
SUDDENLY OPENS ALL OF THE
SPIGOTS FOR OIL AND GAS AND
PIPELINES AND LNG EXPORTS, OKAY,
I WOULD SAY TO YOU, THE FUTURES
CURVE WILL CRASH.
YOU WILL SEE 25 TO $35 DROP IN
OIL PRICES WHICH WILL SOON
TRICKLE DOWN INTO GASOLINE
PRICES.
IN OTHER WORDS, THE NOVEMBER,
THE ELECTION EFFECT CAN BE
REVERSED IF THE POLICIES ARE
REVERY -- REVERSED.
CHANCES OF THAT ARE LOW BUT EVEN
AT THIS LATE DATE IT CAN HAPPEN.
>> THEN YOU LEFT WILL SAY GAS
PRICES ARE NOT COMING DOWN FAST
ENOUGH.
THAT WILL BE THE NEXT COMPLAINT.
I THINK IT IS REALLY IMPORTANT
THAT DEMOCRATS ARE REFUSING TO
ACKNOWLEDGE REALITY THAT IS.
THEY’RE NOT LOOKING AT POLLING.
HAVE YOU EVER SEEN A TIME OF
HISTORY THEY DON’T LOOK AT
POLLING CHANGE COURSE?
I’M SORRY I WAS PROBABLY GETTING
AHEAD OF YOU HERE, I THINK THIS
"WALL STREET JOURNAL" POLLING IS
FASCINATING.
PEOPLE ARE PESSIMISTIC WHAT IS
HAPPENING WITH THE U.S. ECONOMY.
LARRY: LET’S DO IT.
83%, NOT SO GOOD.
17% SAY EXCELLENT, GOOD.
THERE IS A LOT OF PESSIMISM.
POLLS SHOWING 35% APPROVAL
RATING ON INFLATION.
>> 35% NOT AT ALL SATISFIED WITH
THE STATE OF THEIR FINANCES
TODAY.
THAT IS A HUGE NUMBER.
LARRY: HOW DO YOU, I ASK YOU WHY
ARE THEY NOT PAYING ATTENTION?
>> NOT ACKNOWLEDGING IT.
WHEN YOU HAVE 35% OF THE
POPULATION ACKNOWLEDGING THEY’RE
NOT SATISFIED WITH THE STATE OF
THEIR FINANCES TODAY.
THEN YOU HAVE A WHITE HOUSE
TOUTING THE ECONOMY, PAINTING A
ROSY PICTURE OF IT, I DON’T
KNOW.
I DON’T KNOW HOW YOU FIX A
PROBLEM WITHOUT ACKNOWLEDGING
IT.
I DON’T KNOW.
LARRY: IF YOU DON’T OWN IT YOU
CAN’T FIX IT.
I THINK THAT IS A TRUTH.
THAT IS A TRUTH IN LIFE.
BUT IT IS ALSO A TRUTH IN
ECONOMIC POLICY.
>> BUT THERE IS A HUGE MOOD
CHANGE OUT THERE.
PEOPLE ARE NOT HAPPY.
I KNOW YOU’RE AN OPTIMISTIC GUY.
YOU CAN FIND A GOOD SIDE OF
ANYTHING BUT IT IS HARD RIGHT
NOW.
LARRY: THE PRICE OF GASOLINE HAS
NOT PEAKED YET.
I CAN TELL YOU THAT, LOOKING AT
THESE NUMBERS.
>> IT WILL TOP FIVE DOLLARS AS A
NATIONAL AVERAGE.
>> YES IT I.
>> MAJOR WALL STREET BANKS
PREDICTING $6 NATIONAL AVERAGE.
LARRY: JAMIE DIMON’S ECONOMIC
HURRICANE.
I DON’T KNOW IF IT WILL BE $150
A BARREL IN THE WORLD MARKET.
I DON’T KNOW THAT.
I TRIED TO LOOK UNDER THE HOOD
TODAY WITH THE EIA NUMBERS.
WHEN YOU SEE GASOLINE STOCKS
COMING DOWN BUT DEMAND GOING UP
YOU KNOW YOU HAVE A PROBLEM.
YOU KNOW THAT THE BAKER HUGHES
RIG COUNT WHICH SHOULD BE
SOARING WITH THESE RECORD PRICES
IS NOT.
>> TOO RISKY OF AN ENVIRONMENT.
LARRY: THAT’S IT.
THAT’S IT.
>> GOLDMAN SACHS NOW SAID OIL IS
GOING TO $140 A BARREL.
IT WILL FEEL MORE LIKE $160 A
BARREL TO MOST AMERICANS BASED
ON PRICE THEY’RE PAYING AT THE
PUMP.
$120?
I MEAN, KELLYANNE CONWAY WAS ON
EARLIER WITH US.
I SUPPOSE IT WAS LAST WEEK.
SHE SAID YOU KNOW, WHEN YOU ARE
WORKING IN THE MESSAGING INSIDE
OF A WHITE HOUSE THIS WOULD LOOK
LIKE AN EMERGENCY.
BRING THE PRESIDENT OUT TO THE
PODIUM AT THE WHITE HOUSE
BRIEFING.
TELL THE AMERICAN PEOPLE WHAT
YOU WILL DO TO BRING THOSE
PRICES DOWN.
PEOPLE ARE IN PAIN.
THINK ABOUT PEOPLE LIVING ON SET
PAYCHECKS, FIXED INCOME.
YOUR ELECTRICITY PRICES ARE
SKYROCKETING.
LARRY: SAVINGS ARE GOING DOWN.
>> SAVINGS ARE GOING DOWN.
LARRY: WE HAVE TO GO.
I HIT THE HARD BREAK AN HOUR OR
TWO ON YOUR SHOW.
>> I’M SORRY.
LARRY: IF YOU WANT TO STAY
LONGER, YOU’RE WELCOME TO STAY
LONGER.
>> I CAN ALWAYS CHAT WITH YOU.
LARRY: I’M JUST SAYING I WANT TO
BE OPTIMISTIC, I MAY BE BEFORE
THIS YEAR IS OVER BUT RIGHT NOW
SUPPLY DEMAND IS OUT OF WHACK
AND THIS IS AN UNDERSUPPLIED
MARKET.
>> SHOULD REPUBLICANS DO MORE TO
SAY WHAT THEY WILL DO ABOUT IT?
LARRY: YES, YES, AND YES, I
THINK YOU WILL SEE MORE OF THAT
COMING.
SANDRA SMITH.
CATCH SANDRA ON "AMERICA
REPORTS" WEEKDAYS 1:00 P.M.