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Speaker 1: Live from vall Hartbiner and the Crossroads of America. It's

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Speaker 1: Tony Katz today.

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Speaker 2: A third suspect has been arrested in this attack in Cincinnati.

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Speaker 2: Tony Katz, Tony Kats today, good to be with you.

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Speaker 2: I'm gonna get in deep with doctor Matt Will, economists

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Speaker 2: at the University of Indianapolis. We spoke before anything happened

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Speaker 2: with the federal reserve rates, whether or not things were

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Speaker 2: lowered by Jerome Powell. But after we see that GDP

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Speaker 2: was at three percent, which is a it's an incredible number,

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Speaker 2: and so we break it down, gets deep.

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Speaker 1: You're not gonna want to miss any part of that.

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Speaker 2: But you now have another arrest with this assault on

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Speaker 2: two people, a white man and a white woman. Woman

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Speaker 2: was knocked unconscious. The man was savagely beaten, kicked in

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Speaker 2: the face repeatedly. The mob attacking him was black. Now,

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Speaker 2: the people who don't want to make the Rachel, you're

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Speaker 2: more than welcome to. I never want to make it Rachel.

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Speaker 2: But since if it was the other way, it's only Rachel.

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Speaker 2: And everybody's working so hard not to make this Rachel,

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Speaker 2: as if somehow.

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Speaker 1: We can't see what's happening.

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Speaker 2: I think that's weird, but there is context to story.

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Speaker 2: This was the points of the police chief, although she

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Speaker 2: made it outrageously poorly, that there was I guess a

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Speaker 2: verbal back and forth between this guy, maybe this woman

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Speaker 2: and some of these other guys who are black.

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Speaker 1: The person who got beat was white.

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Speaker 2: That led to getting physical and this white guy, I

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Speaker 2: think hit. I don't know if he slapped or punched

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Speaker 2: one of the other guys. Right, this all happened. Now,

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Speaker 2: what led up to that hit and that initial thing?

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Speaker 2: That's a great question. Was somebody bothered out of nowhere?

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Speaker 2: There was something brewing for a while as things were

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Speaker 2: walking with What caused all that to happen.

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Speaker 1: I don't have any.

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Speaker 2: Problem with that being investigated at all, and nothing is

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Speaker 2: stopping the Cincinnati Police from investigating it.

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Speaker 1: Absolutely nothing.

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Speaker 2: The story here is that people want to say, well,

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Speaker 2: you see, he started it. He started to having nine

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Speaker 2: guys punging at him and getting kicked in the face

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Speaker 2: four time and four times and the woman of being

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Speaker 2: knocked unconscious.

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Speaker 1: No, that's not what happened. However it started. I don't know.

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Speaker 2: What you see clearly is about an attack and clearly

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Speaker 2: is a problem, and you're seeing Cincinnati businesses now speaking

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Speaker 2: about this and rightfully. So you know how many businesses

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Speaker 2: in cities are just absolute cowards and they won't speak

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Speaker 2: out about what's going on, and they won't address what's

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Speaker 2: happening with their city council or their mayor or everything.

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Speaker 2: Got so many cowards out there. Cincinnati businesses are like, no, no, no,

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Speaker 2: we're not putting up with this. We have lives to

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Speaker 2: lead and we don't want this. Good on them, very

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Speaker 2: good on them. What's going on with the economy. Our

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Speaker 2: rate's going to go down and if tariffs have really

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Speaker 2: had no effect, Doctor Matt Will Economists University of Indianapolis

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Speaker 2: is up next.

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Speaker 1: Keep it here.

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Speaker 2: This is Tony Kats today GDP three percent. Oh dang,

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Speaker 2: that's a that's a nicely moving economy right there. That's

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Speaker 2: things happening, that's money getting spent. That should mean creation

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Speaker 2: three percent for a nation like ours with the level

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Speaker 2: of output that we have. Three percent is a nice,

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Speaker 2: nice number. But we got to three percent with tariffs

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Speaker 2: when the expectation from the economists was two point three percent.

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Speaker 2: We're beating the expectations. Yet, I could show you other

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Speaker 2: spots of this economy that don't seem to drive up

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Speaker 2: to that. When I tell you that I spend the

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Speaker 2: time trying to understand, I spend the time digging in

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Speaker 2: nothing makes sense.

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Speaker 1: Trump is a genius.

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Speaker 2: Well, that could very well be it, or maybe some

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Speaker 2: things haven't yet happened that will then give us a

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Speaker 2: more honest estimate of what's happening.

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Speaker 1: But how do you argue with a three percent GDP?

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Speaker 1: I mean, how do you do this?

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Speaker 2: Tony Katz, Tony Kats today, good to be with you,

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Speaker 2: Doctor Matt will joins, the economist at the University of Indianapolis.

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Speaker 1: I know we just spoke the other day about some.

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Speaker 2: Of the things that are going on, specifically the trade

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Speaker 2: deal with the European Union, which has in it some

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Speaker 2: things that make you say fantastic. But if we're talking

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Speaker 2: about the buying of energy from the United States, where

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Speaker 2: else they can buy energy from when they clearly can't

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Speaker 2: buy energy from the Russians. Even India is now getting

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Speaker 2: a hit from the United States. I'm buying oil from

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Speaker 2: the Russians. We'll get into it. But GDP at three percent,

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Speaker 2: the estimate from the economist was two point three percent.

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Speaker 2: Break down the numbers. What is it that you see.

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Speaker 3: Well, let me serve first of all, start by saying,

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Speaker 3: not all GDPs are created equal sot.

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Speaker 1: A GDP of animal farm.

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Speaker 3: I'll talk a GDP of Trump versus GDP of Biden,

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Speaker 3: and let me explain what I mean by that. You know, yes,

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Speaker 3: it's a three percent increase, which is better than expected.

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Speaker 3: So that's good news. But someone in the Biden administration

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Speaker 3: will say, well, we had two quarters of positive three percent,

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Speaker 3: which is true, but their three percent was driven by

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Speaker 3: government spending. That is not the same as GDP driven

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Speaker 3: by consumer spending and private companies and shrinking government. We

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Speaker 3: got a three percent GDP growth and the government shrink.

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Speaker 3: Biden's GDP was driven entirely by government. Talk to me

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Speaker 3: about the.

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Speaker 2: Shrink's let's get into I mean, I can't believe I'm

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Speaker 2: going to talk to you about shrinkage. We're going full

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Speaker 2: George here, But talk to me about the shrink right,

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Speaker 2: So this is really about Oh my gosh, doge worked?

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Speaker 2: I mean, that is I think one way to look

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Speaker 2: at this. But give me some specifics. Dig in if

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Speaker 2: you can. What is it that shrink that is truly

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Speaker 2: attributable to the Trump, White House.

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Speaker 3: Okay, the GDP is a formula. We all learned it

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Speaker 3: back in high school. You know, consumer spending plus government

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Speaker 3: spending plus investment plus net imports export. So government is

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Speaker 3: a major part of the GDP formula. Under the Biden administration,

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Speaker 3: there was massive amounts of government spending. So we all

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Speaker 3: know about the deficits that were created under Biden that

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Speaker 3: resulted in the inflation we're still dealing with. So they

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Speaker 3: increased the GDP and they bragged about it, but Wall Street,

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Speaker 3: Main Street hated it because it wasn't driven by a

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Speaker 3: growing private economy. We've spoken before on the show about

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Speaker 3: the shrinking manufacturing base in the United States that it

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Speaker 3: was happening for three years under Biden. That's not what's

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Speaker 3: happening now under Trump. The government has shrunk. The portion

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Speaker 3: of the GDP attributable to government is actually negative. So

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Speaker 3: how do you get three percent if the g part

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Speaker 3: is negative because the consumer spart, because the investment part,

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Speaker 3: because of the net import exports. All the parts that

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Speaker 3: you want to grow are growing and the part you

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Speaker 3: want to shrink is shrinking. So this is a good

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Speaker 3: three percent, where under Biden it was a bad three percent.

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Speaker 2: Talking to doctor Matt Will, economist at the University of Indianapolis. Now,

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Speaker 2: let's talk about manufacturing. As we have noted on this show,

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Speaker 2: manufacturing has been down for the past four months.

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Speaker 1: It has been one of your alarms.

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Speaker 2: It has been something that you have been focused on,

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Speaker 2: concentrating on, and concerned with.

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Speaker 1: Did this GDP report just make all that disappear?

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Speaker 3: No, not at all. That concern is very real, and

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Speaker 3: I think that the biggest information for the week is

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Speaker 3: not going to be this report, although this was a

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Speaker 3: huge surprise. Friday Friday, when the ISM, the Institute for

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Speaker 3: Supply Management comes out with their Purchasing Managers Index, that's

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Speaker 3: the thing that says is manufacturing shrinking or growing? It

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Speaker 3: shrunk last month for the last two months. What will

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Speaker 3: that look like now? I guess probably this next one

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Speaker 3: may not be the best one to look at because

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Speaker 3: we still have the tariff impact. But I'm telling you

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Speaker 3: I predict, and I don't make many predictions, that when

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Speaker 3: the tariff doest settles, and it is settling, I believe

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Speaker 3: that the manufacturing will grow because what we saw also

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Speaker 3: in this GDP report. Here's at a little nerdy tidbit.

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Speaker 3: The United States consumers significantly increased their purchase of domestic

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Speaker 3: goods versus imported goods. Now, I'm not saying that's good

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Speaker 3: or bad. I like buying imported goods. I want to

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Speaker 3: buy the highest quality, cheapest good I can get. That's

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Speaker 3: me and I strongly believe that. But the data says

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Speaker 3: that US citizens bought more domestic made products sold.

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Speaker 1: Right there, write down a note so you don't lose

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Speaker 1: your spot.

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Speaker 2: You're saying that the American consumer recognize the price shifts

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Speaker 2: because of tariffs and made spending habit shifts. That that

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Speaker 2: wasn't a debate, that actually happened.

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Speaker 3: Yes, that's what we see in this report. We see

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Speaker 3: more consumer spending from domestic sources versus imported sources. That

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Speaker 3: is in this report, and that was a goal of Trump.

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Speaker 3: Trump wanted us to buy domestic. Now I've said it

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Speaker 3: and I'll continue to say. We can't buy everything domestic.

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Speaker 3: About eighty to ninety percent of everything in the world

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Speaker 3: is on a container ship. So we would go back

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Speaker 3: to the Stone Age if we didn't buy imports. But

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Speaker 3: the shift, the shift grew the domestic economy GDP grew

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Speaker 3: because we're buying more domestic by the way is that

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Speaker 3: a surprise, imports cost more. If imports cost war, you're

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Speaker 3: going to buy less of them. That's exactly what happened here.

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Speaker 2: What this does tie into it, and I don't mean to

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Speaker 2: kind of meander to get back to me in subjects

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Speaker 2: talking to doctor Matt Will, economist at the University of Indianapolis.

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Speaker 2: This gets into the idea that tariff costs are being

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Speaker 2: absorbed and not being passed along to the consumer. Right,

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Speaker 2: We've been hearing at this with Toyota and with others.

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Speaker 2: They're absorbing the tariff costs. This report says the tariff

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Speaker 2: cost has not necessarily been absorbed by the company, the manufacturer.

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Speaker 2: It is being passed along. People are seeing it and

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Speaker 2: they're making a shift in their choices, which would make

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Speaker 2: one think that, you know, to how you brought this

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Speaker 2: subject up. The tariff dust settling means people have made

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Speaker 2: their decisions and everybody can go now from this new

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Speaker 2: level of certitude that seems to be where this data

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Speaker 2: tells us things are going.

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Speaker 3: No, no, let me say, it's not all or nothing.

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Speaker 3: There's a mixture. So they have absorbed most of the costs.

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Speaker 3: I mean, we've saw it in Toyota. We saw it

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Speaker 3: in Nissan's announcement today, a significant drop. We saw, you know,

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Speaker 3: General Motors announce that significant drop. So no, we have

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Speaker 3: seen a huge absorbing. I mean Whirlpool, Whirlpool a massive

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Speaker 3: loss reported yesterday. I mean, it's it's unfathomable. They cut

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Speaker 3: their dividend. Never happens. So it is true that companies

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Speaker 3: have absorbed the losses, but some of them have been

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Speaker 3: passed along, some of the terrorists passed along. I mean,

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Speaker 3: just look at the Amazon report that came out a

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Speaker 3: couple weeks ago from the Wall Street Journal. I mean

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Speaker 3: they had prices increasing across the board one hundred and

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Speaker 3: thirty six percent, one hundred and fifteen percent, thirty four percent.

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Speaker 3: I'm looking at the list right now. So no, there

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Speaker 3: have been some costs that we have absorbed as consumers.

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Speaker 3: Most of them have been absorbed by businesses. So when you,

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Speaker 3: when you as a consumer, have an increase in your costs,

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Speaker 3: you will switch your behavior, and they did. They switched

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Speaker 3: their behavior to find more domestic products. And Procter and

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Speaker 3: Gamble has even said that, but they also issued a

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Speaker 3: warning just this week on what looks not too good

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Speaker 3: for the future. Of consumer spending.

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Speaker 2: Talking to doctor Matt Will, economists at the University of Indianapolis.

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Speaker 2: And this is where it gets all like you're saying

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Speaker 2: two things at once. You're you're saying.

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Speaker 1: It's good, but it's not. It's bad, but it's not.

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Speaker 2: Stick with the first part here before we get into

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Speaker 2: the Proctor and Gamble warning.

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Speaker 1: You have people who have made these shifts.

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Speaker 2: You have these companies that understand that the tariffs are here,

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Speaker 2: and they understand that it's going to create new prices consumers,

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Speaker 2: as we said, making their decisions based on it.

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Speaker 1: But you also.

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Speaker 2: Say that we're the manufacturing numbers which have been down,

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Speaker 2: aren't necessarily a serious problem. If I understood you right,

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Speaker 2: that's what you were you were discussing there on the

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Speaker 2: manufacturing numbers, because when we take a look at inventories

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Speaker 2: and investment, in quarter one, inventories were up, in quarter two,

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Speaker 2: inventories were down, and as you note, not only inventories,

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Speaker 2: but investment.

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Speaker 1: Is down in the US. That would tell me the.

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Speaker 2: Tariffs are having a negative effect on American business.

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Speaker 3: Yes, that is correct, and that's what I observed. But

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Speaker 3: then when I looked at the numbers, this shocked me.

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Speaker 3: This was very fascinating to me. The decrease an investment

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Speaker 3: was one hundred percent a decrease in inventory investment. Because

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Speaker 3: you can invest in inventory or you can invest in

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Speaker 3: building a machine, they're in the same number. So the

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Speaker 3: decrease that we saw in investments was one hundred and

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Speaker 3: eighty nine billion. The decrease in inventories was one hundred

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Speaker 3: and ninety billion, So one hundred percent of the drop

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Speaker 3: in investments was due to inventory, which we talked about

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Speaker 3: on your show. It was front running. Companies bought inventory

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Speaker 3: in anticipation of the tariffs in Q one, So investments

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Speaker 3: were through the roof one hundred and fifty five billion,

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Speaker 3: up this quarter, they're down one hundred and eighty nine billion.

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Speaker 3: Why because they've already bought their inventory from overseas in

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Speaker 3: the first quarter.

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Speaker 2: So how does that play in the crystal ball world?

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Speaker 2: What does that mean for quarter three? That means fantastic,

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Speaker 2: This means really good. Think of the remember the bounce

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Speaker 2: back during COVID. You know, we forced everyone into a

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Speaker 2: recession and to stay home, and then we let them

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Speaker 2: loose and things came back.

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Speaker 3: Same thing. We front loaded our purchasing of inventory in

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Speaker 3: Q one. In Q two, we didn't buy any inventory.

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Speaker 3: So Q three should be back to normal. And here's

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Speaker 3: what's good about the normal. When I look into the data,

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Speaker 3: other than this anomaly of inventory switching, it's good. Investments

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Speaker 3: were up. Investments are positive, and it's not government investing,

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Speaker 3: it's private investing. I really see positive news in the

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Speaker 3: third quarter. Now, I gotta tell you, I saw Kevin

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Speaker 3: Hassett in an interview just a few moments ago. He

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Speaker 3: actually made a prediction which I'm shocked. He said GDP

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Speaker 3: at least four percent growth next quarter. That's a pretty

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Speaker 3: bold statement, but of course I think we're used to

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Speaker 3: bold statements from this administration.

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Speaker 2: Talking to doctor Matt Well, economists at the University of Indianapolis,

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Speaker 2: Kevin Howsett leads the White House Council of Economic Advisors,

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Speaker 2: and four percent GDP in a nation like ours is

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Speaker 2: beyond growth. Four percent might be too dang big. And

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Speaker 2: if you get which, don't.

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Speaker 1: Get me wrong. I'm not opposed to the growth.

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Speaker 2: I'm just playing in economic reality here. This all is

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Speaker 2: going to play into a Drone Powell conversation, which as

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Speaker 2: we're talking, he hasn't made the decision yet on rates.

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Speaker 2: I'm betting on he's holding firm. I'm betting on no

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Speaker 2: cuts whatsoever. I'll listen to what your bet is. But

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Speaker 2: if you get four percent, there's going to be a

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Speaker 2: worry that the economy is going too fast, inflation might return,

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Speaker 2: and this is going to keep the rates higher, which

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Speaker 2: Trump doesn't want. What is your take on a four

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Speaker 2: percent GDP and where inflation is.

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Speaker 3: If we have a four percent GDP growth that's not

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Speaker 3: government based, it's private company based, then we need more

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Speaker 3: cash in the economy. We need more cash because we

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Speaker 3: have more stuff. So that means he needs to cut rates.

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Speaker 3: He has to cut rates. I know, you know, I've

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Speaker 3: been an anti rate cutting guy, but now the data says,

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Speaker 3: and I said, this is a last few times we spoke,

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Speaker 3: data is indicating rate cuts.

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Speaker 2: So I'm on the opposite side. Well, I'm not on

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Speaker 2: the opposite side of it, but I see it incorrectly.

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Speaker 2: Is what you're saying that if indeed we get to

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Speaker 2: a level of four percent, if indeed we have the

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Speaker 2: speed in this economy, we have to cut rates to

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Speaker 2: ensure more cash can get into the system so the

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Speaker 2: products can be purchased or the investments can be utilized

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Speaker 2: because if not not cutting the rates is going to

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Speaker 2: keep inflation high. Yes, no, well actually you know what? Okay, ready,

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Speaker 2: are you sitting down? I'm always am I sitting down.

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Speaker 2: I have a very comfy chair. Look at this setup.

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Speaker 2: This is gold.

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Speaker 1: Deflation. Well, now you have me drink.

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Speaker 3: If you have so much growth in the economy, not

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Speaker 3: government growth, because government growth is different than private industry growth.

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Speaker 3: Government growth is another juice to the economy. It just

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Speaker 3: causes the inflation. Private industry growth is legitimate stuff. And

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Speaker 3: if you have more stuff, you need more cash. And

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Speaker 3: so this report says stuff is growing, so we now

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Speaker 3: need more cash. And I think that they need to

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Speaker 3: cut their rates. And I said this before, I'm gonna

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Speaker 3: say it again. They need to cut their balance sheet.

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Speaker 3: At the same time. They've got to cut their balance

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Speaker 3: sheet while they're cutting rates. And the perfect indication is

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Speaker 3: the yield curve. The yield curve is telling us to

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Speaker 3: do this. The yield curve long term rates have been

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Speaker 3: slightly increasing, and short term rates are still high. That's

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Speaker 3: an artificial increase. Jerome Powell is artificially keeping short term

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Speaker 3: rates low when all the data now says cut And

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Speaker 3: I think This is my opinion. I think it's personal.

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Speaker 3: I think he's no longer looking at the data. I

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Speaker 3: gave him a lot of credit in the last two years,

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Speaker 3: but now I think it's become personal, and I think

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Speaker 3: we're going to see FED governors diverge and defect and

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Speaker 3: not agree with his decisions.

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Speaker 1: This is already, Oh my god, this is already happening.

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Speaker 2: You already have the rumor mill going that federal Reserve

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Speaker 2: governors are going to come out and say this isn't right,

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Speaker 2: this is wrong, and this is going to be the

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Speaker 2: pressure point that might very well leaded Jerome Powell to resigning.

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Speaker 2: I think you're one thousand percent right on that part

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Speaker 2: of it. But just to get back to this really quick,

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Speaker 2: because maybe it's important that everybody understands how the economics plays.

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Speaker 2: You're saying that without a rate cut in an advancing,

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Speaker 2: growing economy, I should say we would see deflation. Now,

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Speaker 2: deflation is going to be the lowering of the prices,

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Speaker 2: the increasing of purchase power. So I don't know if

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Speaker 2: everybody is going to be upset by deflation. Is the

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Speaker 2: argument that this should be measured and not be allowed

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Speaker 2: to be a part of a wild gesticulation of market

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Speaker 2: forces that we should have government intervention to lessen that blow,

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Speaker 2: if you will.

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Speaker 3: Okay, Well, I don't know what gesticulation means. I'm just

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Speaker 3: a university professor.

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Speaker 1: Yeah, but.

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Speaker 3: No, deflation is actually bad and we've seen this in Japan,

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Speaker 3: and Japan had a forever depression because of deflation, not inflation.

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Speaker 3: Because what happens in dela If you have some money,

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Speaker 3: it's better to put it in your mattress under your

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Speaker 3: bed than to invest it in building a factory. Because

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Speaker 3: in deflation, your dollar gains value over time by just

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Speaker 3: sitting there doing nothing, So you're competing against putting money

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Speaker 3: under your pillow versus building a factory and growing the economy.

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Speaker 3: Deflation is worse than inflation because it's harder to get

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Speaker 3: out of deflation. Japan has not succeeded.

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Speaker 1: In doing so.

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Speaker 2: Inso a deflation is a killer of investments. Yes, yes,

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Speaker 2: deflation is a killer of investment. Stay right there, doctor Mattwell,

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Speaker 2: economist at the University of Indianapolis.

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Speaker 1: Keep it here. This is Tony Katz today. So let's

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Speaker 1: pick up.

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Speaker 2: Where we left off as we were discussing deflation. Tony Katz,

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Speaker 2: Tony Kats today. Good to be with you talking to

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Speaker 2: doctor Matt Whell, economist at the University of Indianapolis, and

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Speaker 2: how the moment may very well be here to.

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Speaker 1: Cut rates, because the cutting of rates.

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Speaker 2: If we're seeing the economy now with a GDP of

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Speaker 2: three percent, which I agree is an unbelievable number for

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Speaker 2: the last quarter, doctor Will, it is an absolutely amazing number.

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Speaker 2: And that number, when properly digested, might very well be

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Speaker 2: what President Trump needs to share with the rest of

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Speaker 2: the country economists, others, others on his economic team to.

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Speaker 1: Say, now we've got the data, now we can cut

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Speaker 1: the rates.

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Speaker 2: And maybe Jerome Powell, chairman of the Federal Reserve, is

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Speaker 2: taking all the attacks on him personally.

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Speaker 1: Of course that walk through of the building where they're

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Speaker 1: wearing the hard.

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Speaker 2: Hats, and he's Trump's like, you see he spent three

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Speaker 2: billion here, and Powell's looking at it like it's hieroglyphics.

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Speaker 2: He doesn't know which end is up. He might be

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Speaker 2: taking it personally, not want to cut rates. We do

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Speaker 2: have Federal Reserve governors who are going to apply pressure,

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Speaker 2: but for a lot of people like myself who have said,

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Speaker 2: I don't know if we're in a place to cut rates.

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Speaker 1: Yet you're telling us that this.

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Speaker 2: Data set says, okay, cut Trump wants one percent, two

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Speaker 2: percent to take whatever he can get. What is the

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Speaker 2: number here that you would advise Jerome Powell, because we're

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Speaker 2: speaking now before the rate cuts, what's the number you

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Speaker 2: would suggest, Jerome Powell?

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Speaker 1: Cut time.

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Speaker 3: Okay, I'm sorry, but I refuse to answer your question

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Speaker 3: the way that you asked it. I have to answer

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Speaker 3: it a different way. Okay, Wait, what's wrong with how

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Speaker 3: I asked it. There's nothing wrong with the way you

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Speaker 3: ask asked it, but I'm going to answer it a

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Speaker 3: different way. Sure, I believe that it's a He must

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Speaker 3: announce a combination of rate cut and shedding the balance sheet,

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Speaker 3: getting rid of in the assets that the Federal Reserve owns,

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Speaker 3: because that's how you need to control inflation. He's controlling

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Speaker 3: it improperly. He's controlling it. He's got to reverse all

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Speaker 3: this quantitative easing that occurred. It's massive. It's still over

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Speaker 3: seven trillion dollars on the Fed's balance sheet. So they

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Speaker 3: need to We talked about this in a previous show, Dislocation.

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Speaker 3: The Fed has to get their butt out of the markets.

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Speaker 3: They need to step on the sidelines, which means and okay,

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Speaker 3: I'll tell you to answer your question. Now, combination, I

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Speaker 3: would cut rates one percent plus and I would begin

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Speaker 3: selling at least at least ninety billion dollars a month

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Speaker 3: off the Fed balance. Chiet, Now we stop brought there.

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Speaker 2: When you talk about selling off the balance, you're talking

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Speaker 2: about selling debt.

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Speaker 1: Correct.

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Speaker 3: No, No, the the Federal Reserve bonds. Okay, yeah, you

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Speaker 3: could say that, but not government bonds. It's not selling

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Speaker 3: from the federal government. The Federal Reserve Board actually is

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Speaker 3: an investor. They own mortgages, is the big thing that

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Speaker 3: they bought, so they are an investor. They buy these mortgages.

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Speaker 3: That was the quantitative easing that we remember occurred in

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Speaker 3: two thousand and eight and nine. They bought mortgages which

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Speaker 3: printed money and put cash into the economy. They need

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Speaker 3: to now sell those mortgages and take the cash out

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Speaker 3: of theomy to control inflation. That's how they need to

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Speaker 3: control inflation. They need to not be the investor. They're

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Speaker 3: missing up the markets by being an investor. So again

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Speaker 3: my statement, if they sell their investments, which brings cash

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Speaker 3: out of the economy, then they can cut rates, which

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Speaker 3: puts cash back in the economy, and that will fix

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Speaker 3: the yield curve. The yield curve is dislocated, it's messed up,

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Speaker 3: it's dysfunctional, and Jerome pal can fix it. It's an

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Speaker 3: easy fix if he just has the guts to do it.

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Speaker 2: So I think that is a bit confusing, and I

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Speaker 2: want to go back to it. No, in terms of

437
00:23:37,880 --> 00:23:39,960
Speaker 2: what it is that the FED owns, and how does

438
00:23:40,040 --> 00:23:42,760
Speaker 2: selling these things get cash.

439
00:23:42,840 --> 00:23:46,200
Speaker 1: Out of the system or is it out of the system?

440
00:23:46,240 --> 00:23:47,040
Speaker 1: Is it in the system?

441
00:23:47,200 --> 00:23:49,800
Speaker 2: Go back, start from the beginning of what it is

442
00:23:49,840 --> 00:23:52,040
Speaker 2: they own, why you think they have to sell it,

443
00:23:52,080 --> 00:23:53,520
Speaker 2: and what it's actually.

444
00:23:53,320 --> 00:23:55,960
Speaker 3: Going to do to the economy. Let me explain what

445
00:23:56,000 --> 00:23:59,280
Speaker 3: the FED does. They print money. I mean, I'm not joking.

446
00:23:59,359 --> 00:24:03,119
Speaker 3: They literally they have printing presses. The Treasury owns the

447
00:24:03,160 --> 00:24:05,520
Speaker 3: printing presses, but the FED says turn them on. It's

448
00:24:05,520 --> 00:24:09,280
Speaker 3: a big red building south of the Washington Monument in Washington, DC.

449
00:24:09,400 --> 00:24:12,880
Speaker 3: They physically have printing presses. And the way they get

450
00:24:12,920 --> 00:24:16,520
Speaker 3: cash into the economy is many ways, but the one

451
00:24:16,520 --> 00:24:19,840
Speaker 3: that we're focusing on is they would buy bonds. So

452
00:24:20,160 --> 00:24:23,480
Speaker 3: say Tony, you own a bond, a mortgage, an investment,

453
00:24:23,640 --> 00:24:26,680
Speaker 3: they would buy it from you. They would then print

454
00:24:26,680 --> 00:24:28,520
Speaker 3: the money to give to you. So that's how they

455
00:24:28,560 --> 00:24:30,800
Speaker 3: would get cash in the economy. They would print cash

456
00:24:31,240 --> 00:24:33,480
Speaker 3: and give it to you in exchange. So they now

457
00:24:33,560 --> 00:24:38,120
Speaker 3: own all these investments. They're the largest investor in the country. Well,

458
00:24:38,160 --> 00:24:40,520
Speaker 3: they need to not be the largest investor. They need

459
00:24:40,560 --> 00:24:43,480
Speaker 3: to start selling that mortgage back to you, selling a bond,

460
00:24:43,600 --> 00:24:46,480
Speaker 3: selling any investments they have. They need to sell them

461
00:24:46,680 --> 00:24:48,359
Speaker 3: and then take the cash back and just throw it

462
00:24:48,359 --> 00:24:51,520
Speaker 3: in the trash can. That gets cash out of the economy.

463
00:24:51,680 --> 00:24:52,920
Speaker 3: That reduces inflation.

464
00:24:53,040 --> 00:24:55,560
Speaker 1: Cash doesn't go in a trash can. What does that

465
00:24:55,600 --> 00:24:58,800
Speaker 1: actually mean? No, it does, it does. No, it does,

466
00:24:59,040 --> 00:24:59,680
Speaker 1: it doesn't. They don't.

467
00:24:59,720 --> 00:25:03,159
Speaker 3: It doesn't go circulating around the economy. They print money

468
00:25:03,400 --> 00:25:08,600
Speaker 3: literally print money electronically or physically, and they also destroy money.

469
00:25:08,680 --> 00:25:09,320
Speaker 1: They do both.

470
00:25:09,359 --> 00:25:11,320
Speaker 3: They're the only entity in the country that can. That's

471
00:25:11,359 --> 00:25:13,480
Speaker 3: the problem with digital currency, which we won't get into,

472
00:25:13,560 --> 00:25:16,040
Speaker 3: is they can print money that we don't want them printing.

473
00:25:16,720 --> 00:25:20,080
Speaker 3: So this is exactly what they do. They physically are

474
00:25:20,119 --> 00:25:23,600
Speaker 3: the ones the FED interest rate. That's just another way

475
00:25:23,600 --> 00:25:25,560
Speaker 3: to get cash in the economy. If you're a bank

476
00:25:26,280 --> 00:25:28,760
Speaker 3: and I charge you zero percent, and I'm the Federal

477
00:25:28,760 --> 00:25:30,520
Speaker 3: Reserve Board. You're gonna say, hey, I like to borrow

478
00:25:30,520 --> 00:25:32,879
Speaker 3: a lot of money from you. Well they charge four

479
00:25:32,920 --> 00:25:33,520
Speaker 3: and a half percent.

480
00:25:33,600 --> 00:25:34,480
Speaker 1: Now you're not gonna.

481
00:25:34,240 --> 00:25:37,440
Speaker 3: Borrow as much. So guess what, There's not as much cash.

482
00:25:37,680 --> 00:25:40,720
Speaker 3: So there's many ways they control the cash in the economy,

483
00:25:41,280 --> 00:25:45,359
Speaker 3: and they need to sell their investments to pull that

484
00:25:45,520 --> 00:25:49,080
Speaker 3: cash out of the economy and cut rates that will

485
00:25:49,080 --> 00:25:52,000
Speaker 3: get them on the sidelines. We don't want them competing

486
00:25:52,040 --> 00:25:55,120
Speaker 3: with you and me and Chase and Bank of America.

487
00:25:55,440 --> 00:25:58,679
Speaker 1: But how are they competing with me if they own mortgages?

488
00:26:00,240 --> 00:26:03,119
Speaker 3: Because as an investor, again not homeowner. Don't think of

489
00:26:03,160 --> 00:26:05,240
Speaker 3: yourself as a homeowner. Think of yourself as an investor.

490
00:26:05,240 --> 00:26:07,679
Speaker 3: You could buy a mortgage. You can buy a mortgage

491
00:26:07,720 --> 00:26:08,480
Speaker 3: backed security.

492
00:26:08,960 --> 00:26:09,680
Speaker 1: You can, you can.

493
00:26:09,720 --> 00:26:11,880
Speaker 3: You know banks do. This is the big The biggest

494
00:26:11,920 --> 00:26:13,679
Speaker 3: asset that banks have is loans.

495
00:26:13,680 --> 00:26:14,480
Speaker 1: They make loans.

496
00:26:14,800 --> 00:26:16,440
Speaker 3: A big loan they make is mortgages.

497
00:26:18,640 --> 00:26:21,440
Speaker 2: Yeah you are, I'm gonna do this one more time

498
00:26:21,880 --> 00:26:24,800
Speaker 2: because I'm gonna get you to the place that that

499
00:26:24,880 --> 00:26:28,119
Speaker 2: I need to be. You're making the arguments that what

500
00:26:28,359 --> 00:26:30,880
Speaker 2: has to happen is the Fed has to get out

501
00:26:30,880 --> 00:26:33,400
Speaker 2: of being in competition with me. But I don't understand

502
00:26:33,480 --> 00:26:36,280
Speaker 2: how them owning mortgages is in competition with me. It's

503
00:26:36,320 --> 00:26:39,280
Speaker 2: never mind the whole idea of they pull cash out

504
00:26:39,359 --> 00:26:42,320
Speaker 2: when they go about selling the mortgage. Somebody put cash

505
00:26:42,359 --> 00:26:46,480
Speaker 2: in to buy the mortgage, so the it's not yet

506
00:26:46,520 --> 00:26:47,960
Speaker 2: clear how that this part.

507
00:26:47,760 --> 00:26:48,400
Speaker 1: Of it works.

508
00:26:49,600 --> 00:26:54,080
Speaker 3: You have investments, You probably have stocks, and you have bonds, right, okay,

509
00:26:54,280 --> 00:26:58,080
Speaker 3: the federal government, the Federal Reserve Board, they also have bonds.

510
00:26:58,680 --> 00:27:01,040
Speaker 3: So if you're a bond investor and they're a bond investor,

511
00:27:01,040 --> 00:27:07,320
Speaker 3: they're competing with you for bonds. And if Tony, you

512
00:27:07,359 --> 00:27:10,640
Speaker 3: want to buy a bond, A mortgage is a bond

513
00:27:10,680 --> 00:27:13,520
Speaker 3: by the way, it's an investment. So you, as an investor,

514
00:27:13,960 --> 00:27:17,359
Speaker 3: you can go into that market. Well what if again

515
00:27:17,400 --> 00:27:20,320
Speaker 3: this is crazy, but suppose there's only one bond in

516
00:27:20,359 --> 00:27:23,359
Speaker 3: the entire market to buy and you don't buy it,

517
00:27:23,400 --> 00:27:26,439
Speaker 3: the Federal Reserve Board buys it. Well, then what do

518
00:27:26,480 --> 00:27:27,680
Speaker 3: you have in your portfolio?

519
00:27:27,920 --> 00:27:28,560
Speaker 1: Cash?

520
00:27:28,920 --> 00:27:31,440
Speaker 3: They buy the bond from you. You're an investor, you're

521
00:27:31,440 --> 00:27:34,360
Speaker 3: a big shot Wall Street investor, They give you cash.

522
00:27:34,760 --> 00:27:36,520
Speaker 3: They take the bond out of the market. And put

523
00:27:36,520 --> 00:27:39,840
Speaker 3: it in their pocket. So now there's extra cash floating around.

524
00:27:40,080 --> 00:27:41,800
Speaker 3: What they need to do is they need to sell

525
00:27:41,840 --> 00:27:45,400
Speaker 3: that bond back to you and take the cash out

526
00:27:45,400 --> 00:27:47,639
Speaker 3: of your pocket, put it in their pocket, take it

527
00:27:47,680 --> 00:27:49,560
Speaker 3: out of the market, so it's not causing inflation.

528
00:27:49,640 --> 00:27:51,439
Speaker 2: So the cash that I use to buy the bond

529
00:27:51,600 --> 00:27:55,000
Speaker 2: from the federal reserve is going to lower the amount

530
00:27:55,040 --> 00:27:56,800
Speaker 2: of cash that's out there circulating.

531
00:27:57,160 --> 00:27:58,800
Speaker 1: Yes, yes, I.

532
00:27:58,840 --> 00:28:00,800
Speaker 2: Just need a clarity on that when I am shy

533
00:28:01,400 --> 00:28:05,520
Speaker 2: that we're playing in you know, four hundred level classes

534
00:28:05,560 --> 00:28:08,760
Speaker 2: here with doctor Matt Will economists at the University of Indianapolis.

535
00:28:08,840 --> 00:28:10,959
Speaker 2: Did that bother you? Was that like one of your

536
00:28:10,960 --> 00:28:13,280
Speaker 2: students saying, you're not making any sense? Why did I

537
00:28:13,320 --> 00:28:16,720
Speaker 2: go to this school? I actually love this because.

538
00:28:16,480 --> 00:28:18,280
Speaker 3: I know that I've got to learn to be able

539
00:28:18,280 --> 00:28:20,399
Speaker 3: to explain something in three or four or five different

540
00:28:20,440 --> 00:28:22,720
Speaker 3: ways because each person absorbs it differently.

541
00:28:23,119 --> 00:28:23,800
Speaker 1: That's my job.

542
00:28:24,040 --> 00:28:26,640
Speaker 2: Now let's go back to the rate cut, the one

543
00:28:26,720 --> 00:28:31,199
Speaker 2: percent concept of the rate cut. Is there such a

544
00:28:31,280 --> 00:28:35,879
Speaker 2: thing as cutting too much too fast? Because every conversation,

545
00:28:36,000 --> 00:28:39,320
Speaker 2: until now I know what Trump wants, every conversation has been.

546
00:28:39,560 --> 00:28:41,960
Speaker 1: Slowly go and slowly go and slowly go.

547
00:28:42,240 --> 00:28:44,640
Speaker 2: And I had made the argument that if you saw

548
00:28:44,720 --> 00:28:46,960
Speaker 2: that Joon Bowell was going to cut a quarter point,

549
00:28:47,560 --> 00:28:50,080
Speaker 2: that would be worse for him than if he didn't

550
00:28:50,080 --> 00:28:51,880
Speaker 2: cut at all, because people be like, what do you

551
00:28:51,920 --> 00:28:54,680
Speaker 2: do with you playing around the edges? But one percent

552
00:28:54,800 --> 00:28:57,200
Speaker 2: is a very very big number when we're talking about

553
00:28:57,280 --> 00:28:59,880
Speaker 2: these things. Why do you say one percent and not

554
00:29:00,120 --> 00:29:01,120
Speaker 2: let's say two percent.

555
00:29:02,800 --> 00:29:05,880
Speaker 3: Maybe I exaggerated, Maybe I should say half a percent

556
00:29:06,000 --> 00:29:09,280
Speaker 3: this month and half a percent next month. Because when

557
00:29:09,280 --> 00:29:11,240
Speaker 3: you combine it with this what we just talked about,

558
00:29:11,240 --> 00:29:14,720
Speaker 3: the buying and selling of bonds, you could cause disruption.

559
00:29:15,320 --> 00:29:17,680
Speaker 3: I mean, this is what China did just a couple

560
00:29:17,800 --> 00:29:20,760
Speaker 3: months ago. They threatened to dump eight hundred billion dollars

561
00:29:20,800 --> 00:29:23,960
Speaker 3: of US treasuries into the market, which has destroyed the

562
00:29:24,000 --> 00:29:27,440
Speaker 3: bond market and caused rates to go through the roof.

563
00:29:27,800 --> 00:29:30,240
Speaker 3: So you have to do it gingerly. You don't want

564
00:29:30,240 --> 00:29:33,120
Speaker 3: to come in and be, you know, fifty percent of

565
00:29:33,160 --> 00:29:35,000
Speaker 3: the bond market today. Hey, I would like to sell

566
00:29:35,000 --> 00:29:37,320
Speaker 3: some bonds and I'm fifty percent of all bonds sold

567
00:29:37,360 --> 00:29:40,640
Speaker 3: in one day. That's a little disruptive. So you want

568
00:29:40,640 --> 00:29:42,960
Speaker 3: to do it, you know, So you don't disrupt the markets.

569
00:29:43,000 --> 00:29:45,120
Speaker 3: And so maybe half of a percent would be better

570
00:29:45,160 --> 00:29:47,480
Speaker 3: this month and half a percent next month, and start

571
00:29:47,520 --> 00:29:49,800
Speaker 3: selling your bonds at a nice, gingerly pace.

572
00:29:50,200 --> 00:29:53,440
Speaker 2: So let's say it's a one percent cut that gets

573
00:29:53,520 --> 00:29:59,120
Speaker 2: more people investing, more people borrowing money to make capital investments, machinery, this, that,

574
00:29:59,200 --> 00:30:01,920
Speaker 2: and the other, and that is going to help speed

575
00:30:01,960 --> 00:30:04,320
Speaker 2: along economic growth.

576
00:30:06,000 --> 00:30:11,680
Speaker 3: Okay, yes, if yes, If the growth that's occurring is

577
00:30:11,800 --> 00:30:14,680
Speaker 3: private companies nice as.

578
00:30:14,480 --> 00:30:17,440
Speaker 2: You discussed earlier, this can't be government growth that defeats

579
00:30:17,440 --> 00:30:17,920
Speaker 2: the purpose.

580
00:30:18,400 --> 00:30:20,880
Speaker 3: Yeah, but that's an important thing to distinguish, because let

581
00:30:20,960 --> 00:30:24,480
Speaker 3: me give you some more and more nerdy data. Under Biden,

582
00:30:24,760 --> 00:30:27,360
Speaker 3: the federal government grew in the last four quarters zero

583
00:30:27,360 --> 00:30:31,840
Speaker 3: percent plus four plus nine plus four. Under Trump, it's

584
00:30:32,200 --> 00:30:35,520
Speaker 3: shrunk by four point seven and shrunk by three point seven.

585
00:30:36,280 --> 00:30:39,480
Speaker 3: That is such good news to me a capitalist. I

586
00:30:39,600 --> 00:30:44,320
Speaker 3: love seeing that the GDP is not government based. So now,

587
00:30:44,600 --> 00:30:47,000
Speaker 3: remember back to this nerdy discussion we had. You can

588
00:30:47,080 --> 00:30:50,520
Speaker 3: start cutting those short term rates and that will start investing.

589
00:30:50,800 --> 00:30:53,680
Speaker 3: It will encourage people to invest because let me, you're

590
00:30:53,680 --> 00:30:56,160
Speaker 3: an investor. Let's say you're a big shot entrepreneur, which

591
00:30:56,200 --> 00:30:59,280
Speaker 3: you are with your radio empire here, thank you very much,

592
00:30:59,560 --> 00:31:02,440
Speaker 3: and take you know, eight percent on your investment. But

593
00:31:02,480 --> 00:31:05,160
Speaker 3: you're barring money at nine. You're not gonna make an

594
00:31:05,200 --> 00:31:07,560
Speaker 3: eight percent investment when you're borrowing money at nine. But

595
00:31:07,560 --> 00:31:10,120
Speaker 3: if you're barring money at four or three, oh, you'll

596
00:31:10,120 --> 00:31:13,840
Speaker 3: definitely make that investment. So we need to start cutting

597
00:31:13,840 --> 00:31:18,240
Speaker 3: short term rates to make it cheaper for someone to borrow. Residential,

598
00:31:18,480 --> 00:31:21,640
Speaker 3: residential construction the big Okay, the piece of bad news

599
00:31:21,680 --> 00:31:26,040
Speaker 3: in this GDP report was construction down ten point three percent,

600
00:31:26,120 --> 00:31:28,800
Speaker 3: residential down four point six percent. You know what, they

601
00:31:28,840 --> 00:31:31,959
Speaker 3: live on short term rates. This is Trump's world. When

602
00:31:31,960 --> 00:31:34,320
Speaker 3: you're a construction guy and you're putting up a building,

603
00:31:34,320 --> 00:31:37,440
Speaker 3: you're getting a construction loan for twelve to eighteen months. Well,

604
00:31:37,520 --> 00:31:40,680
Speaker 3: short term rates are high, right now, cut short term rates.

605
00:31:40,760 --> 00:31:41,920
Speaker 3: You're going to juice construction.

606
00:31:42,200 --> 00:31:45,400
Speaker 2: Before I let you go, Doctor Matt Will Economist, University

607
00:31:45,480 --> 00:31:49,160
Speaker 2: of Indianapolis, Let me get into indiaan the tariffs.

608
00:31:49,600 --> 00:31:53,000
Speaker 1: Certainly, the effect of tariffs.

609
00:31:53,680 --> 00:31:57,280
Speaker 2: It leads one to question whether economists ever understood tariffs

610
00:31:58,000 --> 00:31:58,720
Speaker 2: and whether.

611
00:31:58,560 --> 00:32:01,480
Speaker 1: Or not the absorption of of businesses, etc.

612
00:32:02,000 --> 00:32:06,680
Speaker 2: Have allowed for enough cushion to make the effect negligible

613
00:32:06,920 --> 00:32:11,840
Speaker 2: to allow other things to occur. But the what we're

614
00:32:11,880 --> 00:32:15,120
Speaker 2: seeing now is that President Trump is saying to India,

615
00:32:15,480 --> 00:32:17,920
Speaker 2: you get a twenty five percent tariff and a penalty

616
00:32:18,360 --> 00:32:22,080
Speaker 2: because you have traded with Russia specifically buying oil, buying energy,

617
00:32:22,440 --> 00:32:26,160
Speaker 2: and we're here to strangle Russia on the energy side.

618
00:32:26,200 --> 00:32:29,440
Speaker 2: A lah Ronald Reagan and Garbachev back to ending the

619
00:32:29,480 --> 00:32:33,560
Speaker 2: colds war twenty five percent tariff on India. When you

620
00:32:33,600 --> 00:32:36,440
Speaker 2: said on this show just a day ago that India

621
00:32:36,520 --> 00:32:40,719
Speaker 2: is eating China's lunch in specific iPhones and other technology

622
00:32:40,760 --> 00:32:44,120
Speaker 2: that Americans are buying. This doesn't have an effect on

623
00:32:44,160 --> 00:32:45,120
Speaker 2: the American consumer.

624
00:32:46,600 --> 00:32:46,960
Speaker 1: It does.

625
00:32:47,000 --> 00:32:48,760
Speaker 3: But let me go, I take a little exception to

626
00:32:48,800 --> 00:32:51,800
Speaker 3: the premise when you started saying the impact has been

627
00:32:52,320 --> 00:32:53,600
Speaker 3: negligible for the tariffs.

628
00:32:53,760 --> 00:32:53,840
Speaker 1: No.

629
00:32:53,960 --> 00:32:55,600
Speaker 3: I can show you a list of companies that have

630
00:32:55,680 --> 00:32:59,000
Speaker 3: lost money, that have cut dividends, that are laying people off,

631
00:33:00,160 --> 00:33:02,440
Speaker 3: a huge impact that we've seen in the wholesale that

632
00:33:02,480 --> 00:33:04,680
Speaker 3: we will see in the retail. So I think there

633
00:33:04,720 --> 00:33:10,040
Speaker 3: is an impact in the in from the teriffs concerning India.

634
00:33:10,400 --> 00:33:15,080
Speaker 3: You know that's that's that's Trump's next nemesis, which I

635
00:33:15,080 --> 00:33:18,240
Speaker 3: don't understand, okay, I understand the political angle, and I

636
00:33:18,280 --> 00:33:21,760
Speaker 3: will defer to you on that that's not my area whatsoever.

637
00:33:22,400 --> 00:33:25,920
Speaker 3: But from the economic side, it makes me nervous because

638
00:33:26,400 --> 00:33:30,360
Speaker 3: they've done what we've asked. They've shifted production away from China.

639
00:33:30,680 --> 00:33:34,000
Speaker 3: India is becoming the new China for US. So why

640
00:33:34,080 --> 00:33:35,680
Speaker 3: do I want to start a war with them when

641
00:33:35,680 --> 00:33:39,200
Speaker 3: they've done exactly what we asked. Apple has done exactly

642
00:33:39,240 --> 00:33:41,200
Speaker 3: what we asked as far as manufacturing.

643
00:33:41,400 --> 00:33:43,280
Speaker 2: I can answer the question by saying, it's not the

644
00:33:43,280 --> 00:33:46,160
Speaker 2: objectives to start the war, it's to to put it

645
00:33:46,200 --> 00:33:48,480
Speaker 2: out there to allow for the deal to be hastened

646
00:33:48,520 --> 00:33:51,040
Speaker 2: happened a little bit faster, which is all about putting

647
00:33:51,040 --> 00:33:52,400
Speaker 2: the pressure on China.

648
00:33:52,480 --> 00:33:54,200
Speaker 1: I stick with my original thesis.

649
00:33:54,400 --> 00:33:57,600
Speaker 2: It's Japan, it's Vietnam, it's South Korea, it's India. Never

650
00:33:57,640 --> 00:34:00,680
Speaker 2: mind the EU deal, which is certainly interesting. But once

651
00:34:00,760 --> 00:34:03,959
Speaker 2: those four deals are made, the pressure point on China

652
00:34:04,080 --> 00:34:08,400
Speaker 2: is now full on and full strength against these major competitors.

653
00:34:08,400 --> 00:34:10,880
Speaker 2: And I think that's all this is. This is standard

654
00:34:10,880 --> 00:34:13,760
Speaker 2: Trump tactic to a thing. These tarifs may never actually

655
00:34:13,760 --> 00:34:17,360
Speaker 2: get fully implemented. Knowing the way Trump does things, A

656
00:34:17,440 --> 00:34:20,160
Speaker 2: wall shape may call it taco, he calls its strategy.

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Speaker 1: And right now he's winning that debate.

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00:34:23,560 --> 00:34:26,480
Speaker 2: Doctor Matt Will, economist at the University of Indianapolis. I

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00:34:26,480 --> 00:34:28,600
Speaker 2: appreciate you taking the time to be with us more

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00:34:28,640 --> 00:34:31,040
Speaker 2: to get to I'm Tony Katz. This is Tony Kats today.

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00:34:31,320 --> 00:34:34,520
Speaker 2: So we've reached the everybody a stupid portion of our

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00:34:34,600 --> 00:34:40,960
Speaker 2: show where Congressman Eric Swallwell, Democrat Fang Fang California, is

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00:34:41,080 --> 00:34:44,840
Speaker 2: challenging Greg Guttfeld of Fox to see how many bench

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00:34:44,920 --> 00:34:49,640
Speaker 2: presses he can do. Guys, there's no shot, there's no future.

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00:34:49,920 --> 00:34:53,440
Speaker 2: Just start drinking bourbon. Now, this guy's a member of Congress.

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00:34:54,280 --> 00:34:58,560
Speaker 2: How dumb can one be? Tony Katz Tony Katz today,

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00:34:59,000 --> 00:35:02,200
Speaker 2: I guess Swalwell is doing all these videos. Oh look

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00:35:02,239 --> 00:35:04,279
Speaker 2: at me, I'm bench pressing. Look at me, I'm doing this.

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00:35:04,520 --> 00:35:06,239
Speaker 2: Oh my gosh, look at the price of beef. And

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00:35:06,280 --> 00:35:08,920
Speaker 2: he thinks he's funny and whatever. It's nonsense. But I

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00:35:08,920 --> 00:35:11,160
Speaker 2: guess Guttfeld was talking about it on a show last

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00:35:11,239 --> 00:35:14,160
Speaker 2: night and Swalwell writes, here's a deal for Greg Gutfeld

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00:35:14,640 --> 00:35:17,839
Speaker 2: and then says never heard of him till he spent

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Speaker 2: eight minutes criticizing what I bench press.

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00:35:21,080 --> 00:35:21,760
Speaker 1: Bull crap.

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00:35:22,320 --> 00:35:25,400
Speaker 2: You never heard of Greg Gutfeld as a Democrat member

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00:35:25,400 --> 00:35:26,480
Speaker 2: of Congress.

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00:35:26,520 --> 00:35:31,399
Speaker 1: Never stop, just stop it. It's all a lie at

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00:35:31,400 --> 00:35:33,880
Speaker 1: that moment, and he says, here's the deal.

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00:35:34,200 --> 00:35:37,000
Speaker 2: If tough guy bench is more than me for ten reps,

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00:35:37,040 --> 00:35:40,839
Speaker 2: I'll leave Congress. If not, he leaves Fox News, I'll

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00:35:40,880 --> 00:35:43,640
Speaker 2: give Greg forty eight hours to accept. Then I'm calling

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00:35:43,680 --> 00:35:47,440
Speaker 2: him gutlass Feld. Oh oh, that's a slam right there.

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00:35:47,680 --> 00:35:50,600
Speaker 2: Greg Guttfeld is sixty. Eric Swawall is forty four.

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00:35:51,040 --> 00:35:54,160
Speaker 1: Gottfeld is supposed to bench as much as you. How

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00:35:54,160 --> 00:35:54,640
Speaker 1: about this?

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00:35:55,120 --> 00:35:58,680
Speaker 2: We cut out the nonsense, this nonsense measuring match you

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00:35:58,719 --> 00:36:01,960
Speaker 2: want to do, Swalwell, focus on the country, like the

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00:36:02,000 --> 00:36:04,560
Speaker 2: real issues that allegedly you got voted into handle.

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00:36:05,160 --> 00:36:08,000
Speaker 1: God, this is all embarrassing. Find everything at Tony kats

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00:36:08,040 --> 00:36:09,799
Speaker 1: dot com tomorrow. Everyone take care