WEBVTT - Episode 4645: Tony Katz Today Hour 3 - 08/03/26 0:00:05.160 --> 0:00:10.320 Why from Dall Hartliner and the Crossroads of America. 0:00:10.560 --> 0:00:14.040 It's Tony Katz today. What in the world is going 0:00:14.120 --> 0:00:16.360 on with the end? What is going on with the 0:00:16.440 --> 0:00:18.560 Japanese economy? I mean, I thought they were out of 0:00:18.560 --> 0:00:22.440 the stagflation. Why are we propping it up. I'm not 0:00:22.480 --> 0:00:24.880 saying I'm opposed. I just want to understand. Why is 0:00:24.920 --> 0:00:29.640 this Argentina all over again where we're buying pesos. I mean, 0:00:30.000 --> 0:00:32.840 we got the money back, so I guess all was good. 0:00:32.840 --> 0:00:35.239 But is this what we do now? Or is this 0:00:35.280 --> 0:00:37.720 about something having to do with China? Is this about 0:00:37.760 --> 0:00:40.640 the politics more than it is about the money? But 0:00:40.760 --> 0:00:44.200 it is costing us money? Or is it not? You see, 0:00:44.240 --> 0:00:46.800 that's just it. Everybody wants to say something, but no 0:00:46.800 --> 0:00:50.400 one actually digs into what is actually going on. Tony Katz. 0:00:50.440 --> 0:00:53.239 Tony Katz today, good to be with you. Just call 0:00:53.280 --> 0:00:55.480 me the digger because that's what I'm doing. Doctor Mattwill 0:00:55.560 --> 0:00:59.040 joins me right now, economist at the University of Indianapolis. 0:00:59.080 --> 0:01:01.560 We're going to get to Japan. We're going to talk 0:01:01.560 --> 0:01:03.840 about what's going on with the yen here. But I 0:01:03.920 --> 0:01:06.440 want to start where I start, which is our economy 0:01:07.080 --> 0:01:09.800 and on Friday. I was out on Friday, but happy 0:01:09.840 --> 0:01:12.399 to be back today. And we take a look at 0:01:12.400 --> 0:01:16.320 GDP's second quarter GDP and it grew at a rate 0:01:16.360 --> 0:01:19.480 of one point five percent, not two point one percent 0:01:19.520 --> 0:01:23.160 that was the first quarter one point five percent. In 0:01:23.240 --> 0:01:26.959 all of these cases, a number means nothing unless we 0:01:26.959 --> 0:01:29.440 can analyze why the number is what it is. So 0:01:30.120 --> 0:01:32.440 you take a look at one point five percent. Economist 0:01:32.480 --> 0:01:37.400 to Matt Will, what's the story. It's false. I will 0:01:37.400 --> 0:01:39.400 tell you that the number is much higher than one 0:01:39.400 --> 0:01:42.679 point five percent. And this goes back to the Keynesian 0:01:42.880 --> 0:01:46.080 flaw and how they calculate GDP. So yeah, let's look 0:01:46.080 --> 0:01:48.320 at the headline one point five. By the way, the 0:01:48.360 --> 0:01:51.200 market wasn't phase because the market knows what I know. 0:01:51.920 --> 0:01:54.160 First of all. One of the reasons it was only 0:01:54.200 --> 0:01:57.040 one point five is because the government portion of the 0:01:57.080 --> 0:01:58.360 GDP was reduced. 0:01:59.360 --> 0:02:00.240 That's a good thing. 0:02:00.600 --> 0:02:03.400 You and I everyone listening to the show knows that 0:02:03.480 --> 0:02:07.480 the smaller government is better. So that pulled down GDP. Also, 0:02:07.720 --> 0:02:11.000 imports pulled it down one and a half percent. Again, 0:02:11.280 --> 0:02:15.200 a huge flaw with the GDP formula is that it 0:02:15.280 --> 0:02:19.520 punishes the country for imports, but it ignores foreign direct investment, 0:02:19.800 --> 0:02:22.919 because those dollars that we spend to buy stuff from 0:02:22.919 --> 0:02:27.400 overseas flows back into the United States. Exports boosted it 0:02:27.440 --> 0:02:27.919 by half. 0:02:28.080 --> 0:02:28.600 That's good. 0:02:28.720 --> 0:02:33.480 Consumption up half two points two percent. Investments were up, 0:02:33.720 --> 0:02:37.239 in fact, fixed investments, you know, equipment and buildings and 0:02:37.280 --> 0:02:39.919 stuff up one and a half percent. I'm telling you 0:02:40.160 --> 0:02:44.919 this is this is good underneath the hood. Accept the eyeword. 0:02:45.560 --> 0:02:48.400 Inflation is still over five percent in the sport. Let's 0:02:48.440 --> 0:02:50.520 hold off a little bit and let's get back to this. 0:02:50.720 --> 0:02:54.240 The argument is that the GDP number of one point 0:02:54.280 --> 0:02:59.560 five percent is false because we're to schedule a discussion 0:02:59.680 --> 0:03:03.920 of government is about government spend or government lack of spend. 0:03:04.480 --> 0:03:09.440 Government growth. The growth of government reduces GDP, I mean 0:03:09.560 --> 0:03:14.280 increases GDP. So when the government is constrained, that causes 0:03:14.280 --> 0:03:16.919 a GDP to go down. And that's what this report shows. 0:03:16.919 --> 0:03:20.920 It shows less. You know, we call real versus you know, 0:03:21.040 --> 0:03:26.080 nominal dollars. So inflation adjusted government spend and the economy 0:03:26.760 --> 0:03:28.560 it decreased yer point one four percent. 0:03:28.720 --> 0:03:31.639 So when the government is spending, when government is spending. 0:03:31.680 --> 0:03:35.040 Talking to doctor Mattwill, economist at the University of Indianapolis. 0:03:35.120 --> 0:03:39.080 When the government is spending, we consider that growth. In 0:03:39.120 --> 0:03:41.760 the United States, when we talk about GDP gross domestic product, 0:03:41.840 --> 0:03:45.800 government spending is seen as as growths. So when the 0:03:45.840 --> 0:03:49.160 government is going on wild spending spreeze, those people who 0:03:49.200 --> 0:03:52.160 engage the spending can look at the GDP it say see, 0:03:52.200 --> 0:03:53.280 look how much we're growing. 0:03:54.080 --> 0:03:57.040 And that's what happened under Biden. That was his primary source. 0:03:57.200 --> 0:03:59.720 When we looked at the microscopic parts of GDP under 0:03:59.720 --> 0:04:02.080 by and we saw that almost all the growth in 0:04:02.120 --> 0:04:05.440 the economy was coming from government growth. Under Trump, it's 0:04:05.480 --> 0:04:08.080 a completely different picture. Almost all of the growth is 0:04:08.120 --> 0:04:12.360 coming from private industry. In fact, GDP is subtracting, I 0:04:12.360 --> 0:04:16.360 mean government is subtracting from GDP. So the formula which 0:04:16.440 --> 0:04:19.560 John Maynard Kaines wrote back in the forties, and by 0:04:19.600 --> 0:04:21.880 the way, at the end of his life he actually said, 0:04:22.040 --> 0:04:24.279 you know what, it's really flawed, but it's the best 0:04:24.320 --> 0:04:27.560 we've got. And I would agree with him. It's very flawed, 0:04:27.800 --> 0:04:29.640 but it's the only thing we have at the moment. 0:04:29.880 --> 0:04:33.120 It ignores a lot of things like import exports, foreign 0:04:33.120 --> 0:04:35.960 direct investment, So you have to look under the hood, 0:04:36.360 --> 0:04:39.120 not all one point five percents are created equal. 0:04:39.640 --> 0:04:42.119 Now let's get to the next which you talked about 0:04:42.160 --> 0:04:47.599 investments up point five three percent, about half a percent 0:04:48.800 --> 0:04:54.920 investments into you're talking about long lasting goods, manufacturing goods, 0:04:54.960 --> 0:04:57.320 is investments into my four oh one k. 0:04:57.880 --> 0:05:00.599 What are these investments made up of. Yeah, that's an 0:05:00.640 --> 0:05:04.480 important point that you're making. This is company investment, private 0:05:04.800 --> 0:05:10.800 corporate investments in production, manufacturing, including services, so anything that 0:05:10.880 --> 0:05:14.040 a company is investing to expand their business. So that's 0:05:14.160 --> 0:05:16.880 we're not talking you and I saving for retirement. This 0:05:17.000 --> 0:05:20.560 is actual investments made by companies to grow their businesses. 0:05:20.880 --> 0:05:25.120 And underneath that this half a percent growth, one and 0:05:25.120 --> 0:05:28.800 a half percent of the GDP was due to fixed investments. 0:05:29.160 --> 0:05:33.120 That's putting up a facility to build some product that 0:05:33.760 --> 0:05:36.800 is a long term benefit. That is huge. And we 0:05:36.839 --> 0:05:39.600 didn't see that under Biden. We've seen that under Trump 0:05:39.680 --> 0:05:44.640 because he's instituted policies and deregulation that has encouraged this. 0:05:45.040 --> 0:05:47.359 And you know, we talk about are those other countries 0:05:47.400 --> 0:05:50.159 around the world investing that's not even in this number. 0:05:50.839 --> 0:05:54.280 That's foreign direct investment which should be included, which isn't 0:05:54.279 --> 0:05:55.680 in the GDP calculation. 0:05:56.600 --> 0:05:59.960 Talking to doctor Matt Well, economists at the University of Indianapolis. 0:06:00.080 --> 0:06:03.320 Let's keep breaking this down understanding our numbers, and one 0:06:03.360 --> 0:06:08.120 of these is manufacturing. When it comes to the ISM report, 0:06:08.160 --> 0:06:13.160 which is something you look to keep in high regard, 0:06:13.279 --> 0:06:18.160 this tells us something. This matters. ISM was fifty three 0:06:18.240 --> 0:06:22.159 point three. That's up about six percent, which is the 0:06:22.320 --> 0:06:28.320 six straight increase that we have had. That signals what. Wow. 0:06:29.839 --> 0:06:33.919 It signals wow because that's the private economy. So go 0:06:34.000 --> 0:06:36.640 back to the GDP that was plus one and a 0:06:36.680 --> 0:06:40.279 half percent on fixed investments by companies. We have proof 0:06:40.400 --> 0:06:43.760 it's not just a bogus estimate by the government ISM 0:06:44.120 --> 0:06:48.560 Private Industry Report. Actual companies calling in saying, hey, this 0:06:48.600 --> 0:06:50.880 is what we're doing. So this is the six month 0:06:50.920 --> 0:06:55.159 in a row. Inventories are up, production is up. There's 0:06:55.200 --> 0:06:58.560 these are sub parts of the ISM report. New orders 0:06:58.600 --> 0:07:03.480 are up. This is fantastic. It's what Trump wanted to 0:07:03.600 --> 0:07:06.000 do with the terroriffs, but the tariffs actually delayed it. 0:07:06.360 --> 0:07:10.080 I believe these things would have been up inventories, production, 0:07:10.520 --> 0:07:15.080 new orders without the tariffs sooner. But the tariffs have 0:07:15.080 --> 0:07:17.520 been in place for a long time. Now they're they're 0:07:17.560 --> 0:07:19.960 they're baked into the economy, not in a good way 0:07:19.960 --> 0:07:22.520 in some places, like inflation. The only thing in the 0:07:22.520 --> 0:07:26.840 ISM report that was concerning is employment is flat. But actually, 0:07:27.000 --> 0:07:30.800 if you consider all the disruption with AI, flat employment 0:07:30.880 --> 0:07:34.440 right now, that's good because it should be dropping with 0:07:34.480 --> 0:07:39.560 all the disruption, So the growth is overcompensating for the 0:07:39.640 --> 0:07:42.880 AI disruption. There's a lot of good things that's report, 0:07:43.200 --> 0:07:48.600 except double digit inflation for manufacturers. That's right, double digit 0:07:48.840 --> 0:07:52.800 commodity prices, aluminum, copper, It's not good. 0:07:54.080 --> 0:07:57.800 This now leads into what you said where the problem is, 0:07:57.840 --> 0:08:01.200 Where the issue is with inflation. We have seen Kevin 0:08:01.240 --> 0:08:05.200 Walsh now Chairman of the Federal Reserve twice say we're 0:08:05.200 --> 0:08:08.320 not changing interest rates. They are not going down. This 0:08:08.360 --> 0:08:11.800 can't please President Trump at all, but we have been 0:08:12.240 --> 0:08:14.360 I have been very very consistent. I think you have 0:08:14.440 --> 0:08:17.400 been with me on this. I would never say otherwise. 0:08:17.840 --> 0:08:20.840 The inflation is here. You've argued that it's baked into 0:08:20.840 --> 0:08:25.680 everything Wall Street is doing. What somehow is still unfathomable 0:08:25.760 --> 0:08:30.080 to people is that we accept that this is the 0:08:30.120 --> 0:08:33.480 way it is. We aren't. There is no aggressive push 0:08:33.840 --> 0:08:37.520 to bring it down because we discuss policy. So where 0:08:37.640 --> 0:08:40.840 is inflation right now, and what are the competing forces. 0:08:41.800 --> 0:08:43.960 Well, first of all, I don't agree that we've accepted it. 0:08:44.040 --> 0:08:47.800 I don't do not accept inflation. And if Wall Street 0:08:47.840 --> 0:08:49.480 is accepting it, shame on them. 0:08:49.480 --> 0:08:51.679 But they are. I mean, I'm arguing that they are right. 0:08:51.720 --> 0:08:53.640 That's the point. I didn't say you and I sitting 0:08:53.679 --> 0:08:56.600 on a barstool are happy with this. This whole thing sucks. 0:08:56.640 --> 0:08:59.680 To quote Rodney Dangerfield from Caddy Shack, But I do 0:08:59.760 --> 0:09:03.920 say that Wall Street has absolutely accepted this. They've baked 0:09:03.960 --> 0:09:06.320 it into the cake. We've discussed this many times. It 0:09:06.400 --> 0:09:09.000 is not where Midwest Main Street is, but it's absolutely 0:09:09.040 --> 0:09:11.960 in my view outsider looking in where Wall Street is. 0:09:12.520 --> 0:09:15.160 Well, let me tell you, I'm gonna pivot a little 0:09:15.160 --> 0:09:17.880 bit and say, Kevin Walsh is he is doing the 0:09:17.960 --> 0:09:20.679 right thing. He's announced he's not going to change rates. 0:09:21.040 --> 0:09:23.480 I'm okay with that. I think the Fed funds rate 0:09:23.559 --> 0:09:25.280 is where it should be. I think this is a 0:09:25.360 --> 0:09:28.480 stable rate. And notice Trump didn't scream at him about 0:09:28.520 --> 0:09:31.880 this because Wall Street's pushing him to increase. He even 0:09:31.960 --> 0:09:34.880 had some of his governors. Three of his fellow governors 0:09:35.120 --> 0:09:39.280 voted to increase rates last week, but he refused. He's 0:09:39.320 --> 0:09:42.880 playing the long game. What he's doing, and people pay 0:09:42.920 --> 0:09:45.760 attention to this. He is reducing the amount of information 0:09:45.960 --> 0:09:48.720 flow out of the FED. He set up a special 0:09:48.800 --> 0:09:53.320 commission to look at the selling of assets off the 0:09:53.360 --> 0:09:57.160 FED balance sheet. I am convinced that he's going to slowly, 0:09:57.240 --> 0:10:00.920 behind the scenes, move this giant ship, and he's going 0:10:01.000 --> 0:10:04.320 to convince his fellow governors once this special Commission does 0:10:04.360 --> 0:10:08.720 their work, to start shedding assets from the balance sheet, 0:10:09.040 --> 0:10:12.280 sell those assets, pull the cash out of the economy 0:10:12.559 --> 0:10:16.720 without increasing inflation. He knows how to cut inflation, and 0:10:16.760 --> 0:10:19.160 he's going to do it the right way. I'm confident 0:10:19.400 --> 0:10:21.960 based on what he's doing right now his strategy that 0:10:22.000 --> 0:10:24.840 he's going to pull it off patience, and I think 0:10:24.840 --> 0:10:26.120 even Trump has patience with. 0:10:26.160 --> 0:10:28.720 Him on this. But let's continue on this conversation of 0:10:28.720 --> 0:10:32.160 inflation in general. Never mind where we are about the 0:10:32.160 --> 0:10:37.520 market accepting this. The inflation is here. What are the 0:10:37.679 --> 0:10:41.520 competing forces that are causing it to remain. 0:10:41.800 --> 0:10:47.280 Well, it's still the tariffs, It's still growth of government deficits. Now, 0:10:47.360 --> 0:10:50.720 we talked about government spending earlier, but the deficits also 0:10:50.840 --> 0:10:54.520 contribute to this whole phenomenon because the FED is forced 0:10:54.520 --> 0:10:58.559 to monetize the deficits, so we have to cut the deficits. 0:10:58.840 --> 0:11:00.640 And that's where the FED is between a rock and 0:11:00.679 --> 0:11:03.559 a hard place, because they don't control the fiscal policy. 0:11:04.080 --> 0:11:06.920 They only control the monetary policy, so they can control 0:11:06.960 --> 0:11:09.680 the cash in the economy, but so can the federal 0:11:09.760 --> 0:11:14.480 government by deficit spending. And that deficit spending is really 0:11:14.640 --> 0:11:18.360 massive at the moment, and that's a huge issue. That's 0:11:18.400 --> 0:11:23.000 causing the sustained inflation despite the growth in the economy 0:11:23.000 --> 0:11:24.040 in the private sector. 0:11:24.360 --> 0:11:27.440 So that's the economy, that's the GDP. But we have 0:11:27.520 --> 0:11:30.720 to get into the conversation about Japan and the end 0:11:31.160 --> 0:11:34.480 because this has got some people and I don't even 0:11:34.520 --> 0:11:38.040 know if it's confused. It's got them bothered like somehow 0:11:38.080 --> 0:11:40.880 we're doing something very very wrong. But I think most 0:11:40.920 --> 0:11:43.720 people don't understand what we're doing. We will break that 0:11:43.840 --> 0:11:48.200 down with doctor Matt Will, economist at the University of Indianapolis. 0:11:48.440 --> 0:11:50.679 Keep it right here, guys, I'm Tony Katz, and this 0:11:50.920 --> 0:11:52.000 is Tony Katz. Today. 0:11:52.160 --> 0:11:55.280 The Democratic National Committee, it's been well publicized, has been 0:11:55.320 --> 0:11:59.120 struggling with debt. Republicans are sitting on at least one 0:11:59.200 --> 0:12:02.679 hundred and thirty million dollar war chess. What does the 0:12:02.720 --> 0:12:07.200 success of LSIED tell you about what the definition of 0:12:07.400 --> 0:12:10.600 power is right now, because in our universe we often 0:12:10.600 --> 0:12:13.480 think power is money. That's the opposite of what he's 0:12:13.559 --> 0:12:13.920 running on. 0:12:14.840 --> 0:12:17.560 Well, what I have read is that some of the 0:12:17.559 --> 0:12:20.760 big donors are holding back because they're not quite sure 0:12:20.880 --> 0:12:24.000 what they're funding right now. And I think that we're 0:12:24.400 --> 0:12:26.960 in the middle of an interesting debate right now about 0:12:27.880 --> 0:12:30.160 I mean, where is the center of the Democratic Party, 0:12:30.200 --> 0:12:32.600 And this election will help it, but it doesn't have 0:12:32.640 --> 0:12:34.920 a center the way the Republican Party has a center, 0:12:34.960 --> 0:12:38.560 which is Donald Trump. And so what's happened is it's 0:12:38.559 --> 0:12:42.280 allowed I think the media, among other things and I 0:12:42.320 --> 0:12:44.880 mean Fox US, but I also mean MS now to 0:12:44.920 --> 0:12:48.920 focus on the extremes right without. I don't think there's 0:12:49.040 --> 0:12:51.960 that many DSA candidates out there, but you look at 0:12:51.960 --> 0:12:54.920 the media and that's all there are is DSA candidates 0:12:54.920 --> 0:12:58.480 out there. And the result of that is you put 0:12:58.559 --> 0:13:02.520 forward a Democratic Party that looks like it's extreme, which 0:13:02.520 --> 0:13:05.520 it has its extremes, but no focus at all, by 0:13:05.559 --> 0:13:07.080 the way, on the Republican extremes. 0:13:07.720 --> 0:13:12.160 Because the Republicans aren't engaged in these extremes. I mean, 0:13:12.200 --> 0:13:15.200 one could argue that the point being made there in 0:13:15.320 --> 0:13:19.080 MS now is a legitimate point. Maybe there aren't as 0:13:19.120 --> 0:13:23.520 many communist candidates, Democratic socialists or communists end of discussion. 0:13:24.800 --> 0:13:28.320 As you know, we talk about them, but there's only, like, 0:13:28.400 --> 0:13:30.880 you know, five or six as opposed to five hundred. 0:13:32.040 --> 0:13:33.840 But you're talking about people who could be the next 0:13:33.840 --> 0:13:38.160 senator from Michigan. You had a guy who had a 0:13:38.240 --> 0:13:43.120 Nazi tattoo and multiple allegations which are deemed credible by 0:13:43.520 --> 0:13:45.960 the vast majority. It hasn't been in front of a 0:13:46.000 --> 0:13:48.840 court of law yet, so I can't say that of 0:13:48.880 --> 0:13:52.280 sexual impropriety. And you replace him with a guy who 0:13:52.400 --> 0:13:55.280 married I'm sorry, didn't marry, but had kids with his 0:13:55.360 --> 0:13:59.839 second cousin. That's Troy Jackson. You have got a lot 0:13:59.840 --> 0:14:02.280 of radicalness out there. You've got a mayor in New York, 0:14:02.320 --> 0:14:06.719 a mayor in Seattle. These are not small cities engaging 0:14:06.720 --> 0:14:11.320 these full on communist agendas. Of course, you have a 0:14:11.360 --> 0:14:15.160 reason to be concerned. Tony Katz, Tony Kats today, good 0:14:15.160 --> 0:14:17.480 to be with you. So the counter to that argument 0:14:17.600 --> 0:14:20.120 is we're obsessing about these things. But I only named 0:14:20.120 --> 0:14:24.160 a handful. Those handful affect a lot of lives. Those 0:14:24.200 --> 0:14:29.200 handful tell a story about growth, and those handful is 0:14:29.240 --> 0:14:34.480 the recognition that the political left is broken and has 0:14:34.520 --> 0:14:37.200 been commondeared by these communists. This is who they are. 0:14:37.720 --> 0:14:41.440 They are communists, and they are Islamist adjacent. They're certainly 0:14:41.520 --> 0:14:48.160 Islamis supportive because they say nothing. They say nothing of 0:14:48.240 --> 0:14:52.480 what we see all around the country of this growing threat. 0:14:53.600 --> 0:14:55.280 They look at the communism and say, this is what 0:14:55.360 --> 0:14:58.760 the young people want. They don't one hundred million people 0:14:58.800 --> 0:15:00.960 dead at the hands of communis. Well, that's not really 0:15:01.000 --> 0:15:03.760 the case. That's not true. That's not what happens. They 0:15:03.800 --> 0:15:06.640 will lie about anything and everything, everywhere and all the time. 0:15:06.680 --> 0:15:10.920 But we know that we're aware of that because we 0:15:11.040 --> 0:15:15.440 discuss these things. But the real story here is if 0:15:15.480 --> 0:15:21.280 you allow this to metastasize, if you allow this radicalness 0:15:21.360 --> 0:15:25.840 of an ideology to grow and to fester, you will 0:15:25.920 --> 0:15:29.000 have an unrecognizable country, and then you will have no 0:15:29.160 --> 0:15:33.480 country whatsoever. So, while he is correct, it may only 0:15:33.520 --> 0:15:37.040 be my word handful of these communists running for office, 0:15:37.280 --> 0:15:41.080 it is that they feel emboldened to run. They feel 0:15:41.120 --> 0:15:44.720 that this is their time. I have no idea if 0:15:44.720 --> 0:15:48.040 Hassan Piker is a legit guy or doing this for 0:15:48.080 --> 0:15:51.080 the clicks, I have no clue. All I know is 0:15:51.080 --> 0:15:54.880 his ideology has to lose and screw him and Iona 0:15:54.960 --> 0:15:59.080 Pressley and Rashida Talib and Elanomar and then the Kazu Cortes. 0:16:01.280 --> 0:16:04.880 They don't care that these people are communists. They say welcome, 0:16:06.920 --> 0:16:09.800 because in the end the goal is the same, the 0:16:09.880 --> 0:16:12.840 dismantling of Western civilization and the ending of the United States, 0:16:12.880 --> 0:16:16.920 the ripping asunder of the Constitution. When it's just one person, 0:16:17.000 --> 0:16:21.880 you notice, and that's where this falls apart. If Steve 0:16:21.960 --> 0:16:25.480 Lisman over there, he's a CNBC guy, but he was 0:16:25.520 --> 0:16:28.480 doing an interview on MS now saying there's no focus 0:16:28.480 --> 0:16:31.120 at all in the Republican extremes because everyone is obsessed 0:16:31.120 --> 0:16:36.080 with the DSA. I put forth to you that Republicans extremes, 0:16:36.120 --> 0:16:39.920 to the extent that there are extremes, they get rooted 0:16:39.960 --> 0:16:45.160 out by Republicans. Democrats welcome it, embrace it, laud it, 0:16:45.320 --> 0:16:48.080 glorify it, and then say, how dare you ask questions 0:16:48.080 --> 0:16:53.240 about it? We have to beat those Republicans. Graham Platter 0:16:53.400 --> 0:16:58.640 is a Nazi credibly accused in my view, of multiple 0:16:58.680 --> 0:17:01.920 accounts of sexual and propose innocent until proven guilty in 0:17:01.960 --> 0:17:07.720 a court of law. Fetishizes about pleasuring himself in a 0:17:07.760 --> 0:17:11.720 porta potty and laughs when American soldiers are killed and 0:17:11.880 --> 0:17:16.800 Democrats said, hey, we have to win the Senate. There's 0:17:16.800 --> 0:17:20.480 the difference. Republicans would have felt the pressure immediately and 0:17:20.520 --> 0:17:25.960 he begne. He'd begne. We got rid of the senator 0:17:26.000 --> 0:17:33.960 from Idaho for having a wide stance. Do you remember 0:17:33.960 --> 0:17:38.480 this guy? He's he's in the bathrooms. Larry Craig is 0:17:38.520 --> 0:17:42.840 his name. Arrested for lude conduct in a men's bathroom 0:17:42.880 --> 0:17:47.280 at the Minneapolis Saint Paul International Airport. He entered a 0:17:47.280 --> 0:17:52.119 guilty plea for disorderly conduct a wide stance because he 0:17:52.160 --> 0:17:55.840 put it where the foot was underneath the stall door. 0:17:55.920 --> 0:17:59.919 He was tapping his foot. It was a signal that 0:18:00.119 --> 0:18:03.280 somebody wanted to engage and lude conduct. I don't know, 0:18:04.480 --> 0:18:06.920 and these are not This is not my world, thank 0:18:06.960 --> 0:18:13.160 you very much. Gone. The Left is openly endorsing communists, 0:18:13.400 --> 0:18:16.440 and we got rid of Larry Craig because he liked 0:18:16.440 --> 0:18:21.320 to tap dance while he was going number two I'm 0:18:21.359 --> 0:18:27.000 sorry they don't like us. These things are not comparable. 0:18:27.760 --> 0:18:29.640 I don't know why the hell were pretending that they 0:18:29.640 --> 0:18:36.919 are just madness, So you can argue that it's an obsession. 0:18:38.480 --> 0:18:41.840 Rational people would argue that they're communists. Know, by the way, 0:18:42.480 --> 0:18:46.879 ripping the Democrat Party apart. Now, when I say ripping 0:18:46.920 --> 0:18:49.720 it apart, they are ripping apart those people who won't 0:18:49.760 --> 0:18:52.480 accept the communists. Communists are gonna win this thing. The 0:18:52.520 --> 0:18:54.800 Communists are gonna win this thing. I don't think the 0:18:54.800 --> 0:18:57.119 Democrats have what it takes to keep him ount. I 0:18:57.160 --> 0:18:59.919 don't think they want to keep him out. Power is power. 0:19:00.119 --> 0:19:01.879 Power is power, and they don't care how they get it. 0:19:02.800 --> 0:19:06.240 They will morph, they will maneuver, they will be these people. 0:19:06.400 --> 0:19:10.439 Wait till Representative Acosti Cortes learns she's not enough to 0:19:10.480 --> 0:19:15.040 the left, because that crop is coming up soon. If 0:19:15.080 --> 0:19:18.200 you want the revolution to remain, there always has to 0:19:18.280 --> 0:19:22.520 be somebody who's more revolution minded than you. And for 0:19:22.600 --> 0:19:29.280 all these squad members, that is coming really really quick 0:19:30.359 --> 0:19:33.679 and coming directly at them. Find everything I do at 0:19:33.720 --> 0:19:35.960 Tony kats dot com. I've got more with doctor Matt 0:19:35.960 --> 0:19:38.199 Will coming up. Keep it here. I'm Tony Katz, And 0:19:38.280 --> 0:19:47.040 this is Tony Katz today. So this whole yen thing 0:19:47.160 --> 0:19:49.359 with President Trump has got a bunch of people in 0:19:49.400 --> 0:19:51.639 an uproar, except I don't know if there's anything to 0:19:51.760 --> 0:19:55.800 uproar here. When you hear about this deal, We're we're 0:19:55.880 --> 0:19:58.400 propping up the end or are we buying the yen? 0:19:58.840 --> 0:20:01.080 Is this like that Argentine the deal where we bought 0:20:01.119 --> 0:20:03.840 pesos and they got dollars and then they they did 0:20:03.880 --> 0:20:08.160 pay us back. So what is the story here? I mean, 0:20:08.240 --> 0:20:10.560 what maybe we should be asking what's up with the 0:20:10.640 --> 0:20:14.560 Japanese economy? Tony Katz, Tony Katz today, Great to be 0:20:14.680 --> 0:20:17.399 with you talking to doctor Matt Will, economist at the 0:20:17.520 --> 0:20:22.159 University of Indianapolis. The story out of Japan, which the 0:20:22.200 --> 0:20:24.879 market doesn't seem to care too much about. Again, the 0:20:24.920 --> 0:20:28.119 market fascinating. It was just so happy that there's an 0:20:28.160 --> 0:20:30.080 alleged deal with Iran and the opening of the Straight 0:20:30.080 --> 0:20:32.800 of Horn moves boom, like the Dow opened and it 0:20:32.840 --> 0:20:34.920 went over seven hundred in the first hour. I don't 0:20:34.920 --> 0:20:37.719 know where it's gonna close, No one does, but everyone 0:20:37.760 --> 0:20:41.120 was very, very excited. But this yen story and what's 0:20:41.160 --> 0:20:45.000 going on with the Japanese economy. Now, this is the 0:20:45.119 --> 0:20:48.280 kind of stuff that always puts me a bit on edge. 0:20:48.320 --> 0:20:50.879 At first, I thought this was a story much like 0:20:51.000 --> 0:20:54.800 Argentina and US buying pesos. And then I said, well, 0:20:54.840 --> 0:20:56.840 this is Japan. This is a country that's coming out 0:20:56.840 --> 0:20:59.879 of thirty plus years of stagflation. I thought they had 0:20:59.880 --> 0:21:02.879 already come out of it. This does not signal that. 0:21:02.920 --> 0:21:04.520 And then there's the question whether or not this is 0:21:04.560 --> 0:21:07.600 an economic move or a political move. Talk to me 0:21:07.640 --> 0:21:11.080 about what's happening in the Japanese economy. What did they 0:21:11.119 --> 0:21:13.760 signal to the world, and why did the US come 0:21:13.800 --> 0:21:14.440 to the rescue. 0:21:15.520 --> 0:21:17.919 Wow, Okay, there's a lot to unpack here, and I'm 0:21:17.920 --> 0:21:20.159 gonna put on my professor cap and try to explain 0:21:20.200 --> 0:21:22.480 it clearly. But you added one thing that I had 0:21:22.520 --> 0:21:26.520 not thought about, because I'm an economics nerd, the political angle. 0:21:26.640 --> 0:21:28.560 You are one hundred percent correct. I had not thought 0:21:28.560 --> 0:21:31.239 about why the US is doing this. It's political. So 0:21:31.280 --> 0:21:35.440 what's going on here? The US bought yen a significant amount. 0:21:35.720 --> 0:21:38.919 This takes them out of circulation. So go back to 0:21:38.920 --> 0:21:42.000 the same discussion we have about inflation and taking dollars 0:21:42.000 --> 0:21:46.359 out of the economy. The United States government bought yen 0:21:46.480 --> 0:21:49.600 and took them out of circulation in Japan. So that 0:21:49.720 --> 0:21:55.080 makes the yen stronger, that reduces their inflation, and that's 0:21:55.119 --> 0:21:57.760 a good thing for them, but it also makes the 0:21:57.840 --> 0:22:00.960 yen stronger against the buller, which we our currency, which 0:22:01.040 --> 0:22:03.440 is which is a side issue. But it's interesting why 0:22:03.480 --> 0:22:06.280 we are accepting that. And I got a theory as 0:22:06.320 --> 0:22:08.440 to why we're accepting that. But it's a little different 0:22:08.480 --> 0:22:11.960 than Argentina. And let me tell it's similar, but not exactly. 0:22:12.440 --> 0:22:16.359 Argentina needed US dollars, they needed US dollars to buy 0:22:16.440 --> 0:22:20.199 other things, so we gave them US dollars by buying pasos. 0:22:20.640 --> 0:22:24.440 Japan doesn't need dollars. They just need fewer yen. They've 0:22:24.480 --> 0:22:27.399 got plenty of US dollars. They needed fewer yen in 0:22:27.440 --> 0:22:30.200 their economy, and they wanted us to take them out. 0:22:30.359 --> 0:22:33.080 And I got to give, you know, Scott Bessant and 0:22:33.119 --> 0:22:37.240 the Treasury Department genius for how they did it. They 0:22:37.280 --> 0:22:39.399 did it in a way that we've never seen before. 0:22:39.440 --> 0:22:43.120 And Wall Street got very upset at this. They didn't 0:22:43.160 --> 0:22:48.800 buy yen with dollars, they bought yen with euros. They 0:22:48.840 --> 0:22:51.520 took the euros that we hold, and we do hold 0:22:51.520 --> 0:22:54.280 a lot of international currencies, and they bought the yen 0:22:54.400 --> 0:22:58.760 with that. That totally messed up Wall Street's arbitrage and 0:22:58.800 --> 0:23:02.080 the speculators and the traders because they didn't want to 0:23:02.080 --> 0:23:04.840 spend dollars. My theory is that they believe the dollar 0:23:04.920 --> 0:23:08.160 is a good investment right now because Trump's all about investing. 0:23:08.200 --> 0:23:09.720 He's all about I'm going to make money here and 0:23:09.760 --> 0:23:12.920 make money there. And Scott Bessen did a very good 0:23:13.000 --> 0:23:16.000 pivot and disrupted the markets, and I think it's going 0:23:16.040 --> 0:23:18.120 to help Japan. But Japan has to get their own 0:23:18.200 --> 0:23:18.880 house in order. 0:23:18.960 --> 0:23:23.879 Also, Okay, everything you just said makes people want to 0:23:23.920 --> 0:23:27.520 have a drink. No part of that for the normal 0:23:27.640 --> 0:23:33.280 person makes any sense. So let's start going back. Why 0:23:34.000 --> 0:23:37.880