1 00:00:00,800 --> 00:00:03,520 Speaker 1: Let's get back to the Mark Simone show on w 2 00:00:04,120 --> 00:00:05,600 Speaker 1: R Well. 3 00:00:05,760 --> 00:00:10,559 Speaker 2: John Carney, the brilliant business editor of Breitbart Business Digest. 4 00:00:10,640 --> 00:00:14,480 Speaker 2: You know the top economists in the world, A lot 5 00:00:14,480 --> 00:00:18,000 Speaker 2: of the businessmen, they subscribe to the Breitbart Business Digest. 6 00:00:18,040 --> 00:00:20,400 Speaker 2: You should too. It's great stuff. Every day. Just go 7 00:00:20,440 --> 00:00:24,280 Speaker 2: to Breitbart and then go to newsletters and subscribe. It's free. 8 00:00:24,320 --> 00:00:27,800 Speaker 2: Just subscribe to the Breitbart Business Digest. You can read 9 00:00:27,840 --> 00:00:30,920 Speaker 2: John Karney there every day. John Carney, how you doing. 10 00:00:33,600 --> 00:00:37,040 Speaker 2: Bring me back on Hey, great to have you. Hey, 11 00:00:37,159 --> 00:00:39,559 Speaker 2: Now tell us about oil. Soudast are saying, I go 12 00:00:39,600 --> 00:00:42,559 Speaker 2: to one eighty of people all upset. It's at one 13 00:00:42,600 --> 00:00:45,400 Speaker 2: oh five, it's one ten. This is all just temporary, 14 00:00:45,440 --> 00:00:47,080 Speaker 2: isn't it. 15 00:00:47,080 --> 00:00:48,160 Speaker 1: It is temporary. 16 00:00:49,080 --> 00:00:54,240 Speaker 3: But the problem is nobody knows how long the temporary lasts. 17 00:00:55,680 --> 00:01:00,000 Speaker 3: It's actually in some ways if it was seen as longer, 18 00:01:00,120 --> 00:01:03,680 Speaker 3: we would actually get more US investment in oil that 19 00:01:03,720 --> 00:01:07,520 Speaker 3: would then help bring the oil price down. They always 20 00:01:07,560 --> 00:01:11,480 Speaker 3: say the cure for high prices is high prices because 21 00:01:11,480 --> 00:01:15,960 Speaker 3: it brings on more supply. Here that's unfortunately not going 22 00:01:16,000 --> 00:01:19,920 Speaker 3: to happen because the high prices are being caused by 23 00:01:20,440 --> 00:01:25,080 Speaker 3: the bottleneck at the straight of her moves, and so 24 00:01:25,160 --> 00:01:28,840 Speaker 3: nobody's going to invest in new production in the US 25 00:01:29,440 --> 00:01:33,560 Speaker 3: because that they expect that to be cleared up. The 26 00:01:33,600 --> 00:01:37,480 Speaker 3: real problem, though, is when if we have oil at 27 00:01:37,520 --> 00:01:40,919 Speaker 3: one hundred and ten dollars a barrel, gasoline at around 28 00:01:41,040 --> 00:01:43,000 Speaker 3: four dollars a gallon for a. 29 00:01:42,920 --> 00:01:44,800 Speaker 1: Week or two, we're okay. 30 00:01:45,440 --> 00:01:49,440 Speaker 3: If it persists at that level or goes even higher, 31 00:01:49,560 --> 00:01:51,800 Speaker 3: the saudis talking about one hundred. 32 00:01:51,520 --> 00:01:55,040 Speaker 1: And eighty dollars a barrel. That will be very bad. 33 00:01:54,880 --> 00:01:58,480 Speaker 3: For the economy, not because it will cause inflation, but 34 00:01:58,560 --> 00:02:02,240 Speaker 3: because it will actually cause the opposite and economic contraction. 35 00:02:03,040 --> 00:02:07,320 Speaker 3: Every dollar extra a gallon that you have to put 36 00:02:07,320 --> 00:02:10,360 Speaker 3: into your car is a dollar less that you have 37 00:02:10,480 --> 00:02:13,800 Speaker 3: to spend on the other goods and services that. 38 00:02:13,720 --> 00:02:16,240 Speaker 1: You buy for your house, your family. 39 00:02:16,760 --> 00:02:22,720 Speaker 3: So gas says a tax, slowing down the economy, And 40 00:02:23,280 --> 00:02:27,160 Speaker 3: the real question is just duration. Persistence one hundred and 41 00:02:27,200 --> 00:02:29,480 Speaker 3: ten dollars for a couple of days, we're fined for 42 00:02:29,560 --> 00:02:32,079 Speaker 3: a couple months, it will slow the economy. 43 00:02:32,200 --> 00:02:34,760 Speaker 2: Yeah, Now there's things the president can do. Release oil 44 00:02:34,800 --> 00:02:37,519 Speaker 2: from the strategic reserve. You can turn up some spigots 45 00:02:37,520 --> 00:02:39,400 Speaker 2: somewhere right, There's things we can do if we have to. 46 00:02:40,760 --> 00:02:45,120 Speaker 3: There are some things we can do, but it's actually 47 00:02:45,160 --> 00:02:49,880 Speaker 3: much more limited than people think. We can use the 48 00:02:49,919 --> 00:02:53,000 Speaker 3: strategic control and reserve, but the problem is we actually 49 00:02:53,040 --> 00:02:53,400 Speaker 3: have a. 50 00:02:53,360 --> 00:02:55,919 Speaker 1: Lot of supply in the US right now. 51 00:02:56,520 --> 00:02:59,800 Speaker 3: We can the President suspended the Jones Act, which can 52 00:03:00,160 --> 00:03:02,240 Speaker 3: is what kind of ships can move oil from the 53 00:03:02,280 --> 00:03:06,560 Speaker 3: Gulf Coast up the East coast. That'll help a little bit, 54 00:03:07,440 --> 00:03:11,919 Speaker 3: but there's not a lot he can do because oil 55 00:03:12,000 --> 00:03:15,080 Speaker 3: price is not just somewha's available right now, but what 56 00:03:15,120 --> 00:03:19,040 Speaker 3: people expect to be available in the future. Your reserves 57 00:03:19,080 --> 00:03:23,440 Speaker 3: have an endpoint to them. Again, if this ends quickly, 58 00:03:23,960 --> 00:03:26,520 Speaker 3: you probably can use the reserves to hold down prices 59 00:03:26,520 --> 00:03:29,160 Speaker 3: from going up. If it keeps going, you can't. 60 00:03:29,760 --> 00:03:32,400 Speaker 2: So let's say two weeks and six days from now 61 00:03:32,440 --> 00:03:35,840 Speaker 2: they reopen the straits of horn Moose, thirty forty tankers 62 00:03:35,880 --> 00:03:38,360 Speaker 2: a day are coming through. Then how long before the 63 00:03:38,480 --> 00:03:39,200 Speaker 2: price comes down? 64 00:03:40,960 --> 00:03:46,000 Speaker 3: Well they always say that, particularly gasoline prices, that they 65 00:03:46,120 --> 00:03:50,840 Speaker 3: rise like a rocket and fall like a feather. There's 66 00:03:50,880 --> 00:03:54,440 Speaker 3: good reason for that, in that the gas station owners 67 00:03:54,560 --> 00:03:59,760 Speaker 3: are nervous about dropping the price down too far, too quickly, 68 00:04:00,160 --> 00:04:03,920 Speaker 3: because they're always thinking not of how much did I 69 00:04:03,960 --> 00:04:06,360 Speaker 3: pay for this gas, but how much will I have 70 00:04:06,480 --> 00:04:09,600 Speaker 3: to pay for my next tanker full of gas that 71 00:04:09,680 --> 00:04:11,600 Speaker 3: I have to fill up. You have to make enough 72 00:04:11,640 --> 00:04:13,840 Speaker 3: money to be able to fill up the next tanker. 73 00:04:14,120 --> 00:04:16,719 Speaker 3: So it'll take some time for gasoline prices to come down. 74 00:04:17,120 --> 00:04:18,960 Speaker 3: Oil prices, though, will go. 75 00:04:19,000 --> 00:04:19,960 Speaker 1: Down right away. 76 00:04:20,440 --> 00:04:23,039 Speaker 3: I think as long as people are confident that you 77 00:04:23,080 --> 00:04:25,800 Speaker 3: know that it's open, that it's going to stay open, 78 00:04:26,200 --> 00:04:29,200 Speaker 3: we will see a pretty dramatic decline in the price 79 00:04:29,200 --> 00:04:32,240 Speaker 3: of oil, and then gas will take a little longer 80 00:04:32,320 --> 00:04:32,960 Speaker 3: to come. 81 00:04:32,800 --> 00:04:34,000 Speaker 1: Down, but not much. 82 00:04:34,160 --> 00:04:38,720 Speaker 3: In pretty short order, we'll see the prices start to decline, 83 00:04:38,920 --> 00:04:41,479 Speaker 3: particularly if they get it done quickly and get it 84 00:04:41,520 --> 00:04:42,279 Speaker 3: done plausibly. 85 00:04:42,400 --> 00:04:42,599 Speaker 1: Right. 86 00:04:42,680 --> 00:04:45,520 Speaker 3: It can't just be, you know, something that where people 87 00:04:45,560 --> 00:04:47,760 Speaker 3: think it is, you know, we got a couple of 88 00:04:47,839 --> 00:04:51,520 Speaker 3: tankers through. It has to be that this twenty percent 89 00:04:51,600 --> 00:04:55,120 Speaker 3: of the world's oil supply that comes through there that 90 00:04:55,160 --> 00:04:58,760 Speaker 3: we expected to remain open for the foreseeable future. 91 00:04:59,279 --> 00:05:03,120 Speaker 2: Now, whenever the price drops dramatically, like under the first 92 00:05:03,200 --> 00:05:05,680 Speaker 2: year of President Trump, it doesn't seem to drop in 93 00:05:05,680 --> 00:05:06,960 Speaker 2: California or New York. 94 00:05:07,000 --> 00:05:08,120 Speaker 1: Why is that? 95 00:05:09,160 --> 00:05:12,080 Speaker 3: Yeah, Well, there's a there's a couple of reasons, and 96 00:05:12,120 --> 00:05:19,520 Speaker 3: they all rhyme with left wing politics. The California has 97 00:05:19,560 --> 00:05:23,560 Speaker 3: a couple problems. One is that even though we produce 98 00:05:23,600 --> 00:05:26,520 Speaker 3: a lot of oil in the US, California doesn't really 99 00:05:26,520 --> 00:05:28,440 Speaker 3: have access to very much of it. It can get 100 00:05:28,440 --> 00:05:31,960 Speaker 3: California out of it, can get oil that's actually taken 101 00:05:32,000 --> 00:05:35,600 Speaker 3: out of the ground in California, but these giant Midwest 102 00:05:36,720 --> 00:05:41,159 Speaker 3: oil platforms we have, there's not a good typeline to 103 00:05:41,240 --> 00:05:46,080 Speaker 3: get the oil across the whole country. That's a huge problem. 104 00:05:46,720 --> 00:05:51,000 Speaker 3: California and New York have enormous gasoline taxes. 105 00:05:51,680 --> 00:05:52,120 Speaker 1: Right now. 106 00:05:52,160 --> 00:05:57,320 Speaker 3: The national average price for gasoline is something like three 107 00:05:57,400 --> 00:06:00,359 Speaker 3: dollars in eighty eight, so that's called three dollars ninety sense. 108 00:06:00,800 --> 00:06:04,080 Speaker 3: In California it's well above five dollars that it's approaching 109 00:06:04,160 --> 00:06:07,960 Speaker 3: six dollars. So California is paying far more for gas. 110 00:06:08,320 --> 00:06:12,080 Speaker 3: But it's not because gas you know, gas stations are 111 00:06:12,120 --> 00:06:16,360 Speaker 3: greedier in California or oil companies, hey, California. It's because 112 00:06:16,720 --> 00:06:20,040 Speaker 3: the climate change activists won't let us build a pipeline 113 00:06:20,080 --> 00:06:24,120 Speaker 3: to California, and California insists on taxing it. They like 114 00:06:24,279 --> 00:06:27,280 Speaker 3: expensive oil because they want to force people to give 115 00:06:27,360 --> 00:06:30,480 Speaker 3: up their internal combustion engines by making it too expensive. 116 00:06:30,839 --> 00:06:33,480 Speaker 3: So this is not an accident. It's not even an 117 00:06:33,560 --> 00:06:37,000 Speaker 3: unintended consequence of their policies. This is what they were 118 00:06:37,040 --> 00:06:39,160 Speaker 3: aiming for us to have gas the more expensive. 119 00:06:39,600 --> 00:06:43,600 Speaker 2: Interesting. Hey, we're talking John Carney Brekebark Business Digest. Make 120 00:06:43,640 --> 00:06:48,760 Speaker 2: sure you subscribe to it. Fed Chairman Jerome Powell, what 121 00:06:48,839 --> 00:06:50,680 Speaker 2: the hell is he talking about? Now when his term 122 00:06:50,760 --> 00:06:54,800 Speaker 2: is up, he may become the pro temp chairman. What 123 00:06:54,920 --> 00:06:57,200 Speaker 2: is he talking about? There's no such role, is there? 124 00:06:58,440 --> 00:07:03,800 Speaker 3: No, there's not. So what Peals said was that if 125 00:07:04,160 --> 00:07:07,640 Speaker 3: his successor, Kevin worsh who has been nominated by President Trump, 126 00:07:07,920 --> 00:07:11,000 Speaker 3: is not confirmed by May fifteenth, that he will stay 127 00:07:11,040 --> 00:07:14,720 Speaker 3: on as chairman. That's not allowed under the law. Now, 128 00:07:14,840 --> 00:07:18,560 Speaker 3: there have been times where the Senate didn't confirm the 129 00:07:18,640 --> 00:07:21,560 Speaker 3: next chairman, but it was the same chairman. So, in 130 00:07:21,600 --> 00:07:26,640 Speaker 3: other words, back when Powell got renominated during Biden's term 131 00:07:26,920 --> 00:07:29,880 Speaker 3: for a second term as chairman, there was a gap 132 00:07:29,920 --> 00:07:32,640 Speaker 3: where the Senate hadn't yet gotten around in confirming him 133 00:07:32,680 --> 00:07:35,120 Speaker 3: to that role, and he was allowed to stay. 134 00:07:34,840 --> 00:07:35,320 Speaker 1: In that role. 135 00:07:35,480 --> 00:07:38,320 Speaker 3: But that was because the President had already nominated him 136 00:07:38,320 --> 00:07:41,120 Speaker 3: to the position. That happened with Ellen Greenspan as well. 137 00:07:41,720 --> 00:07:46,000 Speaker 3: There's no president for a former chairman holding on to 138 00:07:46,160 --> 00:07:49,920 Speaker 3: the role because the next chairman hasn't been nominated. What 139 00:07:50,080 --> 00:07:52,720 Speaker 3: the best legal analysis we have of this, which goes 140 00:07:52,760 --> 00:07:56,840 Speaker 3: back to the Carter Whitehouse, says the President that will 141 00:07:56,840 --> 00:07:59,600 Speaker 3: select one of the sitting chairmen. Now he could be 142 00:07:59,680 --> 00:08:02,000 Speaker 3: he could select Powell, but I don't think Trump's going 143 00:08:02,040 --> 00:08:05,920 Speaker 3: to select pal to be the temporary chairman. But he 144 00:08:06,360 --> 00:08:09,120 Speaker 3: gets to select one of the sitting governors to serve 145 00:08:09,120 --> 00:08:11,680 Speaker 3: as chairman. The Senate doesn't get to say in that. 146 00:08:11,760 --> 00:08:14,720 Speaker 3: The FED Board doesn't get to say in that. Certainly 147 00:08:14,760 --> 00:08:17,520 Speaker 3: the FED. The current FED chairman whose term is expiring, 148 00:08:17,960 --> 00:08:21,640 Speaker 3: doesn't get to claim the power to do this unilaterally. 149 00:08:21,920 --> 00:08:23,840 Speaker 3: He didn't even have a vote, by the way, from 150 00:08:23,840 --> 00:08:26,239 Speaker 3: the other FED members to say I have this power. 151 00:08:26,520 --> 00:08:31,480 Speaker 3: He is unilaterally grabbing it. Frankly, if he continues to 152 00:08:31,520 --> 00:08:34,520 Speaker 3: say this, it could I don't think Trump will do this, 153 00:08:34,600 --> 00:08:35,560 Speaker 3: but it could become. 154 00:08:35,400 --> 00:08:36,959 Speaker 1: Grounds to remove him. 155 00:08:37,480 --> 00:08:41,520 Speaker 3: Because he is claiming a legal power he does not have. 156 00:08:42,080 --> 00:08:43,480 Speaker 3: I don't think Trump will do that, and it would 157 00:08:43,480 --> 00:08:46,920 Speaker 3: be a bigger hassle. What Trump should do is just announced. 158 00:08:46,920 --> 00:08:51,120 Speaker 3: If worsh isn't confirmed, he is going to make Steven Myron, 159 00:08:51,360 --> 00:08:56,600 Speaker 3: Christopher Waller, or Michelle Bowman the FED chairman until warsh 160 00:08:56,760 --> 00:08:58,079 Speaker 3: his compromation comes around. 161 00:08:58,280 --> 00:09:01,040 Speaker 2: I like that well, John Carney, brilliant it. As always, 162 00:09:01,280 --> 00:09:04,800 Speaker 2: everybody should subscribe to brek Bart Business Digest. All the 163 00:09:04,840 --> 00:09:07,800 Speaker 2: top minds in America read it every day. And what 164 00:09:07,920 --> 00:09:09,400 Speaker 2: the best way is go to Breitbart right. 165 00:09:09,480 --> 00:09:13,720 Speaker 3: Just sign up, Yeah, Breitbart dot com slash Newsletters. There's 166 00:09:13,720 --> 00:09:16,480 Speaker 3: a whole bunch sign up for bright Bar Business Digest. 167 00:09:16,520 --> 00:09:19,319 Speaker 3: It's free, it comes to your mailbox, and here's you 168 00:09:19,360 --> 00:09:22,240 Speaker 3: actually get it a couple hours earlier before it goes 169 00:09:22,320 --> 00:09:25,240 Speaker 3: up on the site at Breitbart dot com slash Economy 170 00:09:25,920 --> 00:09:30,360 Speaker 3: you can. The subscribers get it about an hour and 171 00:09:30,400 --> 00:09:33,079 Speaker 3: a half earlier than everybody else. So it's worth subscribing to. 172 00:09:33,280 --> 00:09:35,400 Speaker 2: I'm telling you all the top economists read it. First 173 00:09:35,400 --> 00:09:38,520 Speaker 2: thing you read every day, bright Bart Business Digest, Breitbart 174 00:09:38,600 --> 00:09:40,920 Speaker 2: dot com slash Newsletters. You sign up for anything you 175 00:09:40,960 --> 00:09:42,480 Speaker 2: want there, but make sure you sign up for the 176 00:09:43,040 --> 00:09:46,240 Speaker 2: bright Bart Business Digest. John Carney great as always, Thanks 177 00:09:46,240 --> 00:09:49,160 Speaker 2: for being with us, Thanks for having me Mark right, 178 00:09:49,280 --> 00:09:53,480 Speaker 2: Take care, Hey, Coming up Buck and Clay noon today, 179 00:09:54,360 --> 00:09:56,400 Speaker 2: twelve noon to three. Buck and Clay every day. Get 180 00:09:56,400 --> 00:09:59,080 Speaker 2: Bucks new book too. It's excellent needs go to Amazon 181 00:09:59,520 --> 00:10:02,000 Speaker 2: and get it there. And then you got the most 182 00:10:02,080 --> 00:10:04,640 Speaker 2: listened to radio show in America. Sean Henry at three, 183 00:10:05,160 --> 00:10:07,840 Speaker 2: Jesse Kelly at six, and Jimmy Fayle A great show, 184 00:10:08,040 --> 00:10:10,920 Speaker 2: very funny every night at nine. It's right here on 185 00:10:11,120 --> 00:10:12,840 Speaker 2: seven ten Woir