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Speaker 1: I am absolutely opposed to the United States owning any

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Speaker 1: part of Intel. I was opposed to Solindra. I am

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Speaker 1: opposed to this. This is not the role of government.

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Speaker 1: I was opposed to too big to fail, the idea

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Speaker 1: that somehow we had to bail out these banks. Absolutely not.

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Speaker 1: I developed these insurance companies, never no chance. There is

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Speaker 1: no such thing as too big to fail. Those companies

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Speaker 1: that do not handle themselves appropriately, well that's the way

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Speaker 1: it goes. But the idea that somehow we have to

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Speaker 1: prop them up in order to save America, it doesn't

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Speaker 1: seem to be saving America. It was wrong when George

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Speaker 1: Bush did it, it was wrong when Barack Obama did it,

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Speaker 1: and yes it's wrong when Donald Trump does it.

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

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Speaker 1: Doctor Matt Will joins me right now, economist at the

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Speaker 1: University of Indianapolis.

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Speaker 2: And this Intel thing, it's right.

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Speaker 1: SoftBank comes in and spends two billion dollars gaining a

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Speaker 1: purchase of Intel, and I thought.

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Speaker 2: That was very, very weird.

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Speaker 1: Number is the money didn't make any sense to me,

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Speaker 1: But you consider all the investments soft Bank has already

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Speaker 1: said they're going to make in the US President Trump

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Speaker 1: and made those announcements, and then all of a sudden,

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Speaker 1: we see that the US is getting a ten percent

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Speaker 1: stake of Intel. Doctor will to walk me through the banks,

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Speaker 1: the basics of.

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Speaker 2: This deal and then your take on the deal.

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Speaker 3: Well, there's there's two parts of this. There's the conceptual

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Speaker 3: and there's the actual data. You know, the Intel, what

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Speaker 3: kind of company is it? And let me just start

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Speaker 3: with the concept. You know, I have to say that

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Speaker 3: this is pure socialism, whether it's George Bush, Barack Obama,

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Speaker 3: or Donald Trump. Like you said, it's socialism. The government's

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Speaker 3: role is not to be an owner of companies. It's

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Speaker 3: to be the referee. You know, Biden was wrong in

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Speaker 3: the Chipsack when he gave all this money to Intel,

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Speaker 3: and Trump is wrong in owning part of Intel. It's

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Speaker 3: a bad idea. We don't want the government to be

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Speaker 3: in the game. We don't want them to be the referee.

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Speaker 3: We want them to be the referee, not a member

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Speaker 3: of the team. You know, if the government owned buggy

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Speaker 3: whip manufacturing, we never would have had the car industry,

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Speaker 3: you know, because they would have had a vested interest.

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Speaker 3: You mentioned Cylinder back in twenty eleven. That was a

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Speaker 3: bad investment. The government has owned Amtrak, They've owned the

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Speaker 3: Tennessee Valley Authority, they owned the US Postal Service. None

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Speaker 3: of these things have gone well. And since two thousand

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Speaker 3: and nine they've owned Freddy and Fanny. They have six

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Speaker 3: trillion dollars in mortgages that they own. It is a

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Speaker 3: disaster when the government owns companies, and we don't want

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Speaker 3: that to happen in a capitalist, free economy.

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Speaker 1: So let's start with the baseline. You call it socialism,

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Speaker 1: and people say, how dare you? This is Trump saving

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Speaker 1: a company that's important to American growth and jobs.

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Speaker 2: What do you say to that?

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Speaker 3: Let him go under. It is not saving jobs. Until

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Speaker 3: in twenty twenty four to twenty five, has cut twenty

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Speaker 3: four thousand jobs. Tell me how that's saving jobs. By

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Speaker 3: cutting twenty four thousand jobs. In twenty twenty four, they

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Speaker 3: reported a seven billion dollar loss in their foundry division.

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Speaker 3: They canceled two megafab factories this year alone. By the way,

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Speaker 3: there's plenty of chip makers in the US. There's plenty. Nvidia,

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Speaker 3: the world's dominant AI chip maker, is based in Santa Clara, California.

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Speaker 3: The number one competitor for desktop CPUs is AMD. They're

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Speaker 3: a US based company, Qualcomm, Broadcom, Micron. These companies are

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Speaker 3: US based other than Taiwan Semiconductor. We own this industry.

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Speaker 3: Let them go under. Let a good company buy a

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Speaker 3: bad company. Intel is bad. I can give you the

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Speaker 3: data on how bad they are. Going to give you

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Speaker 3: the data on how great these other companies are.

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Speaker 2: Now tell me to your show.

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Speaker 1: Note that doctor Will has been on this for a

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Speaker 1: while talking to doctor Matt Will, economist at the University

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Speaker 1: of Indianapolis. This was him on the social media's after

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Speaker 1: Trump said that it's my great honor to report that

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Speaker 1: the United States of America now fully owns a good

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Speaker 1: rolls ten percent of Intel, a great American company that

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Speaker 1: has an even more incredible future. That he negotiated the deal.

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Speaker 1: The shares are now valued at eleven billion. It was you,

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Speaker 1: doctor Will, who said Intel is a bad company. The

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Speaker 1: government should not own private companies that should not pick

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Speaker 1: winners and losers. Intel must be allowed to fail or

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Speaker 1: succeed on its own merits. Stop socialism. So you are

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Speaker 1: you're very clearly, and people are gonna say to you

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Speaker 1: once again, here you are, doctor Will. Just throwing a

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Speaker 1: fit over something Trump does. You're just a Trump hater.

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Speaker 1: You don't like Trump, it's all, You're just anti Trump.

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Speaker 1: Is this anti Trump? I know this is an anti Trump.

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Speaker 1: This is antisocialism.

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Speaker 3: You know. A good friend of mine called me yesterday,

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Speaker 3: former Goldman Sachs person and asked me, well, you have

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Speaker 3: buyer's remorse as you call it. No, I would vote

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Speaker 3: for Trump again in a heartbeat. Most of the things

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Speaker 3: he's doing economically are fantastic. But this socialism thing is

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Speaker 3: bad and his statement was wrong. It is not a

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Speaker 3: good company. They're not creating AI chips. They had a

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Speaker 3: Gen six to Gen eleven core failure on the Xon CPUs.

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Speaker 3: Their reptile chip had a doss attacks this thing. They're

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Speaker 3: a mess. Look at their competitors. AMD. AMD year over

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Speaker 3: year revenue was up thirty two percent, their AI revenue

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Speaker 3: was up ninety four percent. Broadcom, a US company, their

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Speaker 3: AI revenue was up seventy seven percent. Micron a US company.

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Speaker 3: Their data center revenue was up one hundred percent this year.

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Speaker 3: There are plenty of good US companies in this industry,

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Speaker 3: and Intel is laying off people. They're losing money, they're

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Speaker 3: closing factories. How is this a good investment? Can someone

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Speaker 3: tell me how owning ten percent of Intel is a

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Speaker 3: good investment. Let them go bankrupt, someone else will buy them,

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Speaker 3: someone else will take over that market. That's called capitalism.

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Speaker 3: We don't support the horse and buggy industry. We want

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Speaker 3: the car industry to succeed, you know, we want businesses

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Speaker 3: to grow. We went innovation. We don't want to prop

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Speaker 3: up bad companies, and this is a bad company.

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Speaker 1: This leads us to the why we do it and

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Speaker 1: the the Really there's a political or philosophical underpinning to

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Speaker 1: all of this, and it's one of the reasons why

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Speaker 1: I'm not a populist in that way. You can't let

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Speaker 1: this company go under. This company is so important to

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Speaker 1: America and to American jobs. It's a great American company.

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Speaker 1: I'm with you if it's there's no such thing as

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Speaker 1: too big to fail. You say, you know, and discuss

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Speaker 1: this as socialism. You put this post out there. What

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Speaker 1: was the response? Just my curiosity that you got to it.

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Speaker 3: I was surprised at how many people were positive to it.

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Speaker 3: There was an initial and if people go back and look,

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Speaker 3: there were initially some folks who were not happy they

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Speaker 3: were saying, oh, you're against Trump, Europeans Trump. But then

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Speaker 3: when I laid out you know what the bad things

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Speaker 3: that have happened to Intel, and that there's all these

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Speaker 3: US competitors. There are US based Nvidia, amb Qualcom, Broadcom, Micron,

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Speaker 3: there's all these US companies. People started coming around. Although

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Speaker 3: one friend of mine, I was very disappointed. Who actually

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Speaker 3: is a big Ann Rand loves Ann Rand talks about

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Speaker 3: Atlas Shrugged all the time, was, you know, on the

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Speaker 3: Trump bandwagon for this topic. There's some people that are

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Speaker 3: so wedded to Trump they can't see when he does

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Speaker 3: bad and when he does good. And I'll tell you

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Speaker 3: again and again and again, I'd vote for him again,

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Speaker 3: and I'd vote for him twice on Sunday. And if

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Speaker 3: I could go to Illinois and Ohio and vote multiple times,

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Speaker 3: I would. No, I wouldn't because I'm not a an

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Speaker 3: ethical person. But he's the better choice by far. None

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Speaker 3: of the great things that are happening right now would

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Speaker 3: have happened if Harris would have won. But he isn't perfect,

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Speaker 3: and he's wrong on teriffs, and he's wrong on the

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Speaker 3: government owning businesses. That's not US capitalism. That's Karl Marx

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Speaker 3: socialism and I'm against it.

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Speaker 1: Talking to doctor Matt Will, economists at the University of Indianapolis,

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Speaker 1: this economy, I seem to be at odds with some people,

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Speaker 1: is not great. This economy is not there. The price

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Speaker 1: of everything is still high, the insurances are still high.

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Speaker 2: Is the movement in a downward trajectory has not come.

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Speaker 1: I mean, you had the announcement from Jerome Powell, Chairman

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Speaker 1: of the Federal Reserve, from Jackson out of Jackson Hole

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Speaker 1: at the symposium saying the conditions could show an opportunity

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Speaker 1: for reducing interest rates, which of course sent the markets

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Speaker 1: up near nine hundred points.

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Speaker 2: But this economy is not there.

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Speaker 1: Are we feeling the tariffs now taking an effect to

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Speaker 1: the negative or is this still the Biden hangover of

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Speaker 1: all that inflation working its way through.

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Speaker 3: It's a little of both. We still have a lot

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Speaker 3: of bad outcomes from the Biden policies, but now the

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Speaker 3: Trump policies are starting to weed their way into the economy.

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Speaker 3: There are some good and there are some bad. I mean,

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Speaker 3: in the second quarter we had phenomenal GDP growth. Consumer

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Speaker 3: spending is still very high, and we see that curving

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Speaker 3: of the use of debt. You know, credit card's still

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Speaker 3: too high, but it's curving down. We see wages increasing,

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Speaker 3: So there's some good stuff happening. The deregulation. I just

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Speaker 3: can't say enough good things about that. But you know

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Speaker 3: I said before, Trump's like this economic schizophrenic. He's doing

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Speaker 3: all these good things, but then the tariffs are slowing

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Speaker 3: down the economy. John Deere announced two hundred and thirty

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Speaker 3: eight layoffs, all tariff related. They announced six hundred million

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Speaker 3: dollars in expenses this fiscal year as a result of tariffs.

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Speaker 3: He's trying to help John Deere. He wants to help Caterpillar.

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Speaker 3: Yet Caterpillar reported one point five billion dollars in increased

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Speaker 3: cost related to tariffs. And I've said this many times,

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Speaker 3: and I'm going to keep repeating myself. In the end,

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Speaker 3: trade deficits are good, and tariffs remove the incentive to

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Speaker 3: do trade, which harms the thing. Trump wants to help agriculture.

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Speaker 3: He wants to help agriculture since the tariffour exports to

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Speaker 3: China for tariffs. Because of tariffs, agricultural products have dropped

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Speaker 3: five and a half billion dollars. Overall, agricultural trade has

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Speaker 3: dropped twenty eight point six billion dollars since the trade

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Speaker 3: war started. We look at the PMI report, I'm looking

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Speaker 3: at it right now. He started off when he was elected.

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Speaker 3: Economic output from manufacturing, which is what the tariffs are about,

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Speaker 3: in his mind, grew until the tariff started. We've had

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Speaker 3: five consecutive months of manufacturing contraction in the United States

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Speaker 3: as a result of tariffs. So if I could just

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Speaker 3: somehow convince the president to get off the tariff bandwagon

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Speaker 3: and stop owning other companies that's not his job, things

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Speaker 3: would be so good. You wouldn't be able to measure.

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Speaker 3: You know, we could borrow some adjectives from Trump, the

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Speaker 3: best economy you've seen in history, if you could just

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Speaker 3: get off the tariff bandwagon.

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Speaker 1: Is it solely and exclusively tariffs that are are keeping

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Speaker 1: prices high hat tariffs? I see insurances going up. I

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Speaker 1: see property taxes. I mean, certainly, I property taxes are

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Speaker 1: a different function. But I do see the insurance world,

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Speaker 1: car insurance, homeowners insurance, etc.

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Speaker 2: Going up, up, up, And it has been now for

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Speaker 2: the last few years.

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Speaker 1: And this is engaging some real hard costs preventing other

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Speaker 1: things from happening in retail markets.

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Speaker 2: Yet I see retail.

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Speaker 1: Spending going up, so I see the economy as not great.

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Speaker 2: I still see it as a gigantic problem.

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Speaker 1: But some of the numbers three percent GDP, retail spending up,

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Speaker 1: they don't seem to see it as a problem. So

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Speaker 1: how much longer can this economy continue to be an issue?

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Speaker 2: Yet people still spend it?

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Speaker 3: You know? Let me just say a bit about the

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Speaker 3: insurance costs. The insurance is unrelated to all of this.

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Speaker 3: I won't bore you with the cyclical aspect, but there's

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Speaker 3: about a seven year cycle on how claims are processed,

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Speaker 3: and that's unrelated. There is what we call an insurance

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Speaker 3: cycle that aside. We talked about this many times. The

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Speaker 3: tariffs don't initially cause inflation because tariffs are just a tax.

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Speaker 3: And when the government increases taxes, that doesn't cause inflation,

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Speaker 3: that doesn't print more money the tax The tariffs are

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Speaker 3: a delayed impact because they reduce the economy's growth. You

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Speaker 3: and I talk about this. Capitalists talk about this all

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Speaker 3: the time. Art Laugher talks about it. You cut taxes,

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Speaker 3: you spur growth, which causes an inverse reaction. It causes

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Speaker 3: not to have inflation because your economy is growing. The

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Speaker 3: taxes that are tariffs will slow the economy, and in

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Speaker 3: the long term they cause inflation. We're now getting towards

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Speaker 3: the long term. It's not here yet, but it's look.

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Speaker 3: We're seeing it in the PPI numbers, we see it

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Speaker 3: in the manufacturing data. We do see the fact that

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Speaker 3: we will have inflation again. The terrorists don't cause inflation

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Speaker 3: because it's just a tax, but they lead to a

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Speaker 3: slowing economy. And I'm going to go back to what

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Speaker 3: I said on your show recently. This is the battle

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Speaker 3: of Trump, the good Trump economic policies versus the bad

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Speaker 3: Trump economic policies, and I hope, I hope that he

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Speaker 3: wins the good policies. Right now, the most recent data

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Speaker 3: shows a fifty to fifty percent chance of a recession,

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Speaker 3: up from a forty percent chance, which was up from

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Speaker 3: a thirty three percent chance. There is now an equal

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Speaker 3: chance we'll have in a recession. So the battle of

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Speaker 3: Trump versus Trump, it looks like bad Trump and good

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Speaker 3: Trump are in a stalemate.

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Speaker 1: Talking to doctor Matt Well, economists at the University of Indianapolis,

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Speaker 1: let me move it over to the Federal Reserve. Jerome

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Speaker 1: Powell very much seems on his last legs, and certainly

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Speaker 1: that's term will come to an end and he will

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Speaker 1: be gone as a chairman of the Federal Reserve. But

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Speaker 1: he did when I spoke about the symposium of Jackson

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Speaker 1: Hole in Wyoming, he did hint that the conditions could

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Speaker 1: be favorable to an interest rate cut. Economists expecting this

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Speaker 1: cut to come.

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Speaker 3: Yeah, I think the futures market is around eighty percent

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Speaker 3: expectation of a cut. I think that's probably going to

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Speaker 3: be up today. I haven't looked at the most recent data,

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Speaker 3: so yeah, I think people think it's going to be

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Speaker 3: a cut. But I am no longer defending Jerome Pal.

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Speaker 3: I defended him for a while and I've stopped because

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Speaker 3: cutting rates would be good if he also dumps the

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Speaker 3: balance sheet, and he's not going to do that. He

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Speaker 3: has to sell the assets the Federal Reserve owns, and

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Speaker 3: he's not doing it. Jerome Pal is making a bad

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Speaker 3: and a bad decision. He could make two good decisions

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Speaker 3: if he would cut rates and dump the balance sheet,

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Speaker 3: but he's not doing that. He's going to cause inflation.

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Speaker 3: He could stop inflation. The guy is incompetent. He's not

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Speaker 3: doing his and he's got to be gone. I'm just

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Speaker 3: I'm sorry. You know, I was all in on him

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Speaker 3: at one point and I'm all out. We need a

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Speaker 3: new person in there, and we need to replace the

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Speaker 3: federies or bar with people that know what they're doing.

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Speaker 1: More with doctor Matt Will coming up in just a moment.

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Speaker 1: Find everything at tonykats dot com.

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Speaker 2: I appreciate if you do that, keep it here. This

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Speaker 2: is Tony Katz today.

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Speaker 1: So you've got all this talk about Jerome Powell and

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Speaker 1: how the Federal Reserve is doing things and whether they're

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Speaker 1: going to reduce interest rates, and and you know, you've

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Speaker 1: got Wall Street looking to this almost with desperation. Tony Katz,

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Speaker 1: Tony Katz today, Good to.

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Speaker 2: Be with you. But you also have this now level of.

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Speaker 1: Palace intrigue with Federal Reserve Governor Lisa Cook, which brings

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Speaker 1: us to this part two conversation talking to doctor Matt Will,

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Speaker 1: economist at the University of Indianapolis, talking about Jerome Powell

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Speaker 1: and not reducing the balance sheets, something that you've discussed here,

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Speaker 1: something that Kevin Walsh wants to do and might make

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Speaker 1: him a lead candidate.

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Speaker 2: To be the chair of the Federal Reserve.

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Speaker 1: But then you have President Trump saying of Lisa Cook,

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Speaker 1: you're fired.

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Speaker 2: You are off the Federal Reserve Board. The allegation is she.

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Speaker 1: Improperly filled out a mortgage application, lied on a mortgage application.

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Speaker 1: She is saying that the president has no authority over

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Speaker 1: the Federal Reserve or an independent agency, and you can't

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Speaker 1: fire me. What is wall Street's take on the removal

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Speaker 1: of Lisa Cook.

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Speaker 3: Well, I think wall Streets take is that it's going

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Speaker 3: to drag out in courts and that eventually Trump will

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Speaker 3: win because the Supreme Court has said no, this is

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Speaker 3: the executive branch. The president can make appointments and the

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Speaker 3: president can fire people. No one is above the law,

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Speaker 3: no one is excluded. Everyone falls under the three branches

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Speaker 3: of government. So they fall under his branch. So that's

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Speaker 3: what I think wall Street's doing. But let me get

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Speaker 3: into the nuts and bolts of this. This is very important, Tony.

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Speaker 3: If you or I committed mortgage fraud, if we said

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Speaker 3: we lived in Michigan and we lived in Atlanta, we

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Speaker 3: said that we signed a document saying we did it,

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Speaker 3: we wouldn't be prosecuted. Okay, they would send us a

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Speaker 3: note saying you have to remedy this, maybe give us

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Speaker 3: a fine. They'd say, you have to refinance one of

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Speaker 3: your mortgages. But you and I are not the entity

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Speaker 3: that regulates mortgages in the country. We're not on the

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Speaker 3: board that oversees mortgage regulation. We're not on the board

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Speaker 3: that has the largest ownership about six trillion dollars of mortgages.

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Speaker 3: She is one of those people whose job it is

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Speaker 3: to enforce the law. It is her job to oversee

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Speaker 3: it's enforced. I should say it's her job to oversee

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Speaker 3: the policies that she just violated. Now it's an accusation.

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Speaker 3: Let's wait and see what the courts say. Everyone's until

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Speaker 3: proven guilty. But she signed a document, according to the accusations,

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Speaker 3: that she owned a home in Michigan and she lived

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Speaker 3: in a home also in Georgia. She said, I live

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Speaker 3: in both places. Two months later, she put her Atlanta

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Speaker 3: condo on the market for rent. She even now admits

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Speaker 3: she collected rent on a property that she said she

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Speaker 3: lives in. This is like Silicon Valley Bank. You may

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Speaker 3: recall the CEO of Silicon Valley Bank was on the

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Speaker 3: regulatory board of the Federal Reserve Board in San Francisco.

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Speaker 3: He ignored. He was in charge of regulating himself. And

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Speaker 3: now we saw over one hundred notices from regulators saying

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Speaker 3: there's a problem here that we're not enforced. She is

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Speaker 3: in charge of this, She's part of the body that

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Speaker 3: oversees the regulation. That is a problem. She should be fired,

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Speaker 3: she should be prosecuted. This is not you and I.

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Speaker 3: This is a person in charge. She knows this, she

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Speaker 3: knows the laws. He helps write the law on mortgages.

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Speaker 3: Get her out of there. This is ridiculous.

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Speaker 2: This is.

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Speaker 1: I mean, I don't want to be in the esoteric

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Speaker 1: here in the ether, but I have long argued that

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Speaker 1: nineteen thirteen was the start of the tilt of America.

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Speaker 2: Right.

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Speaker 1: You had the direct election of senators, which I think

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Speaker 1: is an absolutely horrific idea. You have the income tax,

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Speaker 1: and I would make the argument to anyone anywhere. You

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Speaker 1: give me the Conference of Economists, and I will state

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Speaker 1: to them clearly that no good has ever come from

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Speaker 1: the income tax ever.

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Speaker 2: In the history of the income tax.

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Speaker 1: I can make that argument, I believe as soundly as

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Speaker 1: anybody in the world. And of the Federal Reserve, which

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Speaker 1: obstensibly was created to prevent wild gesticulations in the market.

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Speaker 2: You never get too high, you never get too low.

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Speaker 1: It'll create a more calm, more even way for the

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Speaker 1: country to build and grow.

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Speaker 2: And I don't believe any part of that is true.

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Speaker 1: So the question is not whether we replaced Room Powell

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Speaker 1: or not, whether you know we replaced Lisa Cook, and

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Speaker 1: is Lisa Cook guilty of any criminal activity?

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Speaker 2: Innocent, proven guilty?

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Speaker 1: I agree, But rather what is the purpose of the

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Speaker 1: Federal Reserve in today's world?

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Speaker 3: As you see it, The goal should be to create

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Speaker 3: price stability. That should be their number one goal. You know,

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Speaker 3: you're the data you're referring to back to nineteen thirteen.

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Speaker 3: All of that came from or maybe you're referring to

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Speaker 3: came from a book that Milton Freeman wrote called A

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Speaker 3: Monetary History of the United States, and it was a

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Speaker 3: phenomenal book and he won a Nobel Prize for it.

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Speaker 3: And he talked about this Federal Reserve Board. He talked

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Speaker 3: about the gold standard and how really we needed it.

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Speaker 3: But then he changed his opinion, and I agree with him,

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Speaker 3: and he said the Federal Reserve Board should operate under

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Speaker 3: a law, and the law is specific on that its

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Speaker 3: goal is to monitor the money supply and increase the

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Speaker 3: money supply sufficient to maintain price stability. That's all they

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Speaker 3: should do. But they have this other mandate of full employment,

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Speaker 3: which then gets very political. I think there should be

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Speaker 3: a law, like Milton Friedman said, it should be very specific,

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Speaker 3: and the Federal Reserve boards should be accountable to Congress

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Speaker 3: and to the President to enforce that law. I don't

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Speaker 3: think they should be this entity that goes off and

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Speaker 3: is supposedly independent, because that's a joke. There's no independence.

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Speaker 3: They're political, they're political appointees, and they're not doing a

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Speaker 3: good job at the moment. Historically they've done a decent

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Speaker 3: job now under not under Bernanki and not under Yelling.

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Speaker 3: But you know, Alan Greenspan, I think did a good job.

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Speaker 3: Paul Volker did not. So if you're playing keeping score here,

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Speaker 3: we haven't had that many good Federal Reserve chairmen.

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Speaker 1: The question about I think Alan Greenspan, we can might,

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Speaker 1: we might be able to go in a couple different

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Speaker 1: directions with whether he was good, whether he was.

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Speaker 3: Bad but he ended bad, he ended bad but he

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Speaker 3: started good. Let's let me put it that way.

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Speaker 1: I think that the largest scale question talking to doctor

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Speaker 1: Matt Will economists at the University of Indianapolis, is does

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Speaker 1: this provide a value?

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Speaker 2: Now?

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Speaker 1: You know, my take on nineteen thirteen has to do

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Speaker 1: with the fact that these three things happened, and these

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Speaker 1: three things changed how the country runs, and the changing

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Speaker 1: about the country ran changed how the country ran. And

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Speaker 1: I believe that I referred to it as the tilts

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Speaker 1: of America. And you could see how these things have

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Speaker 1: engaged in negative effect to our whole society. So now

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Speaker 1: we're hearing about Trump talking about wanting to change Trump Powell,

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Speaker 1: is he not going far enough? If we didn't have

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Speaker 1: a Federal Reserve, what actually would be the bad You.

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Speaker 3: Know, that's a good question. And you know, I'll go

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Speaker 3: back to the logic of Winston Churchill and I'll paraphrase

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Speaker 3: him improperly, but I'll try. You know, it's the worst

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Speaker 3: system except for all those others that have been tried

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Speaker 3: and failed. I think the Federal Reserve Board is not perfect,

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Speaker 3: but I think it's the best we've got. I think

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Speaker 3: it's done a decent job, but it's not perfect. It's

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Speaker 3: made mistakes. I'm not a fan of getting rid of it.

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Speaker 3: I do think it should be modified I think there

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Speaker 3: should be some legal parameters put in, but I think

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Speaker 3: it does a decent job historically. Right now it's totally

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Speaker 3: messing up. I think it messed up when it, you know,

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Speaker 3: transitory inflation was put out there, so you know, we

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Speaker 3: may disagree on this. I don't think the Federal Reserve

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Speaker 3: is perfect, but I think it's the best we have

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Speaker 3: now because but I don't know what to replace it with.

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Speaker 3: Do you replace it with the politicians? That's what happens

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Speaker 3: in third world countries where they just are printing money

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Speaker 3: like crazy.

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Speaker 1: But wait, first of all, transitory inflation was Jenny Yellen,

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Speaker 1: the Treasury Secretary. Not necessarily the Federal Reserve. But the

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Speaker 1: question is is it necessary at all? We started without it.

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Speaker 1: Why in the world do we need this bureaucracy level.

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Speaker 1: Can't an economy just run and we deal with what

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Speaker 1: happens next.

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Speaker 3: No, because we need someone to print the money. Remember

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Speaker 3: when the United States started, we had different currencies across

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Speaker 3: the country, I mean different states had different currencies, and

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Speaker 3: then we had a gold standard, and the gold standard

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00:24:12,480 --> 00:24:15,600
Speaker 3: didn't really work in controlling inflation because it was based

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Speaker 3: on who controlled the supply of gold and the amount produced,

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Speaker 3: So we need something to control the amount of cash

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Speaker 3: in the economy. And I'm not a fan of crypto

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00:24:23,359 --> 00:24:25,239
Speaker 3: because I don't think that that is a good way

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Speaker 3: to monitor the money supply. There's too much black market

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Speaker 3: and underhanded things that could happen. So no, we need

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Speaker 3: somebody to monitor the money supply. That's very important, and

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Speaker 3: I think they do a decent job historically at it.

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Speaker 3: And we've seen that because other than Germany and Switzerland,

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Speaker 3: we've had the lowest inflation globally for many, many years,

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Speaker 3: which is why we have the reserve currency. So they're

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Speaker 3: not perfect, but they do. You know, we need something

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Speaker 3: like them. I don't know what the alternative is.

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Speaker 1: Talking to doctor Matt Well, economists at the University of

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Speaker 1: Indianapolis before I let you go, you brought up Switzerland.

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Speaker 1: We are right now trying to rework their trade deal.

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Speaker 1: They're at a thirty nine percent tariff. We talked about

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Speaker 1: how the tariffs have not done well for US, and

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Speaker 1: I do believe that. I think the tariffs are indeed

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Speaker 1: a mistake, and I think trying to create trade deals

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Speaker 1: on trade deficits is also a mistake in its approach.

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Speaker 1: Targeted tariffs is tactic, like, for example, on China is

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Speaker 1: certainly something that I can get down with. Certainly you're

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Speaker 1: seeing the issue with India because they're buying Russian energy

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Speaker 1: getting close to China, and the United States is trying

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Speaker 1: to stop that from taking place. But these things like

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Speaker 1: Switzerland trying to recreate the deal, Canada trying to recreate

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Speaker 1: the deal, taking off some tariffs on US goods to

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Speaker 1: show some good faith in the end, are these trade

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Speaker 1: deals enough to offset the tariff cost?

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Speaker 3: No? No, I don't think there's no trade deal that's

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Speaker 3: going to be beneficial. It's going to be a lose lose.

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Speaker 3: You know, Switzerland is a very expensive country. I was

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Speaker 3: there in March can tell you the cost of living

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00:26:02,080 --> 00:26:05,040
Speaker 3: is outrageous. And it's ironic because while their cost of

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Speaker 3: living is very high, the available consumer goods is non existent.

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Speaker 3: They have such barriers like like Trump is correct and sane,

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00:26:13,440 --> 00:26:17,800
Speaker 3: tariff barriers, trade barriers. You can't find normal US products

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Speaker 3: in Switzerland because they ban them from coming in the country.

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Speaker 3: So will he trike a deal, yes, will it be good?

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Speaker 3: It's gonna you know, it's gonna be a lose lose.

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Speaker 3: It's just a matter of how much lose lose we get.

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Speaker 3: Every trade deal is a lose lose There is no

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Speaker 3: win whenever we increase tariffs on anybody.

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Speaker 1: Doctor Mattwell, economists at the University of Indianapolis. I appreciate

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Speaker 1: you taking on the times to be with us more

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Speaker 1: than get to I'm Tony Katz.

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Speaker 2: This is Tony Kats today,