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Speaker 1: We've seen some trade disruptions since the Israel Hamas War

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Speaker 1: has broken out, particularly with Ran backed Kothy militants striking

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Speaker 1: ships in the Red Sea. We've already seen several major

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Speaker 1: shipping lines that have suspended their services.

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Speaker 2: So does this mean anything for you?

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Speaker 1: What impact, if anything, will it have on the global

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Speaker 1: supplied chain? And then also we've already seen a lot

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Speaker 1: of disruptions since COVID. We've seen issues like pet parents

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Speaker 1: not being able to get baby formula for their kids.

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Speaker 1: So we'll get into all of this with Jim Nels.

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Speaker 1: He is an independent supply chain consultant and economists based

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Speaker 1: out of Chicago, Illinois. He spent a lot of time

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Speaker 1: throughout his career working on these various issues. At one point,

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Speaker 1: he was the chief supply chain officer at LG Electronics.

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Speaker 1: So we'll talk to him. We'll get his take on

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Speaker 1: all of this. We'll dig in on the global supply chain.

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Speaker 1: Should you be concerned, what should you be concerned about?

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Speaker 1: And what's coming up down the pipeline. Stay with us well,

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Speaker 1: jim Nels, I appreciate you taking the time to come

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Speaker 1: on the show. I'm really going to lean on you

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Speaker 1: to break this issue down I am not an expert

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Speaker 1: on the global supply chain, so I appreciate you taking

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Speaker 1: the time to talk to us a little bit about this.

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Speaker 3: Lisa, I really appreciate you having me. Thank you so much.

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Speaker 1: Thanks for coming on. All right, so let's just kind

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Speaker 1: of start from the basics. So, you know, how is

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Speaker 1: this war between Israel and Amas threatening shipping as well

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Speaker 1: as just a disruption of the global supply chain? You know,

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Speaker 1: take us through sort of the TikTok what you're seeing

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Speaker 1: and thirty thousand foot of what's going on right now.

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Speaker 3: Sure, so there's a rebel group that took over the

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Speaker 3: country of Yemen called the houthis not Hooty and the Blowfish,

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Speaker 3: but the Hoothys, and they've been running Yemen for a

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Speaker 3: while now, and they've decided that they want to start

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Speaker 3: shooting drones and ballistic missiles at cargo ships going through

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Speaker 3: the Red Sea, which I mean, we're literally letting a

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Speaker 3: bunch of goat herters with weapons destroy the global economy.

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Speaker 3: Just so you know, the Red Sea is basically the

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Speaker 3: I ninety five corridor of the ocean. You have at

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Speaker 3: any point in time about four hundred ships in there.

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Speaker 3: It's the distance between Washington, d C. And Boston, and

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Speaker 3: about ten billion dollars worth of commerce flows through their

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Speaker 3: a day, including eight million barrels of oil every single

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Speaker 3: day going through there. So it's really really important to

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Speaker 3: the global supply chain. The one thing that doesn't necessarily

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Speaker 3: impact as much as the United States because it's primarily

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Speaker 3: used to get goods into Europe or to get goods

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Speaker 3: out of Europe into Africa or Asia. So we're not

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Speaker 3: seeing it hit us here. But when you combine it

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Speaker 3: with what's happening with the Panama Canal, which is at

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Speaker 3: historic low levels and they've reduced capacity in the Panama

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Speaker 3: Canal to fifty percent, the global supply chain is really

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Speaker 3: at a tipping point right now.

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Speaker 1: And so we've seen so far, you know, several major

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Speaker 1: shipping lines have suspended their services through the Red Sea.

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Speaker 1: We've seen more than a dozen vessels been attacked since

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Speaker 1: the start of these Royal hamasque. We talk about those

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Speaker 1: shipping line suspensions and what do you anticipate and just

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Speaker 1: dig in a little bit more into that.

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Speaker 3: Yeah, so there are a few things there. So the

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Speaker 3: major shipping line in the world, Marisk, has decided not

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Speaker 3: to go through the Red Sea. Halphoyd Lloyd, which is

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Speaker 3: a German company, has decided the same thing. British Petroleum

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Speaker 3: is not sending ships through the Red Sea any longer

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Speaker 3: as well. So again it really impacts oils now kissing

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Speaker 3: seventy five dollars a barrel, which is a direct result

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Speaker 3: of what's happening here. But the other thing that you're

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Speaker 3: seeing is that, I mean, there are still twenty five

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Speaker 3: sailors from one of these cargo ships being held hostage

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Speaker 3: by these rebels that are under the threat of death

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Speaker 3: if they don't pay the ransom. So what you're starting

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Speaker 3: to see now again you're seeing these shipping lines saying

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Speaker 3: we're not going to go through the Red Sea because

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Speaker 3: their insurance companies won't cover the ships that go through

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Speaker 3: the Red Sea, and so they have to go around

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Speaker 3: the southern tip of Africa, which adds anywhere between fourteen

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Speaker 3: and twenty eight days to their shipping times depending on

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Speaker 3: where this cargo is going. And that leads to depleted

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Speaker 3: store shelves. And while I don't anticipate seeing anything like

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Speaker 3: we saw during COVID, you're going to have the less

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Speaker 3: ability to have the products that you want. We're really

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Speaker 3: fortunate that this happens when it did, as opposed to

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Speaker 3: say back in August, where it would have impacted Christmas.

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Speaker 3: But it's going to impact Q one of twenty twenty

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Speaker 3: four and could help drag the world into a global recession.

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Speaker 3: You know.

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Speaker 1: US Defense Secretary Lloyd Austin has said that American forces,

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Speaker 1: along with some of their countries, would create a new

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Speaker 1: force to try to protect ships in the region. How

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Speaker 1: much of difference do you think that will make or

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Speaker 1: will some of these shipping companies just say this is

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Speaker 1: not worth it, it's not worth the risk.

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Speaker 3: Again, my ability to predict the future is willfully ignorant.

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Speaker 3: But my guess is that it's not going to make

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Speaker 3: much of a difference because they're not escorting the ships

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Speaker 3: like we did with Kuwaiti oil tankers a couple of

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Speaker 3: decades ago. We're just increasing our presence in the and

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Speaker 3: Sea along with countries like Great Britain, Canada, France, Germany, etc.

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Speaker 3: So they're going to have more people in the Red

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Speaker 3: Sea who can help to shoot down these missiles if

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Speaker 3: and when we detect them. But it's not as if

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Speaker 3: that we're reflagging these ships as they go through there.

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Speaker 3: It's not as if we're escorting these ships. So I

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Speaker 3: don't think it's going to make a big difference. What

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Speaker 3: we need to see is the Biden regime take positive

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Speaker 3: kinetic action against Iran and show Iran that we're no

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Speaker 3: longer going to put up with this. We need to

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Speaker 3: do something like what Ronald Reagan did back in the

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Speaker 3: nineteen eighties with Operation Praying Mantis, where we destroyed two

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Speaker 3: Iranian oil platforms and then sunk half the Iranian navy

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Speaker 3: to tell them that we were no longer going to

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Speaker 3: tolerate them messing with shipping in the Persian Gulf. We

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Speaker 3: need to do the same thing in the Red Sea

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Speaker 3: and attacking I think Iran is a way to do it.

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Speaker 3: I don't want to go to war with Iran, but

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Speaker 3: I think a very very strategically massive, targeted attack against

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Speaker 3: some of the resources would be very very helpful. Maybe

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Speaker 3: something along the lines of what President Trump did in

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Speaker 3: Syria with the Mother of All Bombs.

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Speaker 1: You talked about the added days to rootes. What are

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Speaker 1: the added costs from that, Well, if you look.

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Speaker 3: At it again, about ten billion dollars a day if

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Speaker 3: commerce flows through the Red Sea. So if you add

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Speaker 3: twenty eight days to the time for a cargo ship

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Speaker 3: to go from point A to point B. That's two

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Speaker 3: hundred and eighty billion dollars per day or i'm sorry,

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Speaker 3: per month. So that's incredibly bad for the global economy.

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Speaker 3: We will see it in the United States is in

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Speaker 3: the price of oil because if we have more companies

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Speaker 3: like BP saying we're not going to ship through the

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Speaker 3: Red Sea, that's going to drive up the cost of oil.

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Speaker 3: And then we're seeing that already.

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Speaker 1: Yeah, we've already seen the cost of essentially everything have

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Speaker 1: already risen under this administration. Which countries are the most impacted.

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Speaker 1: Then by this disruption of the Red Sea.

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Speaker 3: You're seeing a lot of African countries that are being

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Speaker 3: impacted both from their imports and their exports their ability

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Speaker 3: to actually make money. And then you're seeing Europe being

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Speaker 3: impacted by this as well, because goods would flow through

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Speaker 3: the Suez Canal into the Mediterranean and then be offloaded

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Speaker 3: in countries like France and Spain and then the northern

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Speaker 3: coast of Africa. So you're seeing that it will impact

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Speaker 3: India as well, because you'd go through the Red Sea,

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Speaker 3: through the Suez and over to India and some places

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Speaker 3: in Asia, but any place that's importing oil that goes

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Speaker 3: through the Red Sea is going to see this happen

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Speaker 3: to them.

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Speaker 2: Now does Iran benefit.

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Speaker 3: From this, Well, I mean Iran's benefiting because we're funding

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Speaker 3: them now, right, So it doesn't. They don't rely on

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Speaker 3: what's happening there. But where they benefit is their prestige,

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Speaker 3: if you will, and the global terror organizations that they

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Speaker 3: can show that they can flip their middle finger at

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Speaker 3: the United States and not be worried about retaliation. That's

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Speaker 3: really why they're while they why they are doing this.

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Speaker 3: Excuse me, But as far as benefiting, No, there's still

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Speaker 3: under sanctions from a lot of countries in the world,

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Speaker 3: so this doesn't really benefit them financially, but it does

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Speaker 3: exaggerate their prestige on the global terror regime.

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Speaker 1: You know, this comes as we've already seen massive global

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Speaker 1: supply issues since COVID. Have we resolved those since COVID

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Speaker 1: or you know, how disrupted have things been since COVID.

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Speaker 3: I'm so glad you asked that question. The big mistake

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Speaker 3: that people make is that COVID caused supply chain issues.

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Speaker 1: Well it's the government.

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Speaker 3: Yeah, COVID didn't cause supply chain issues. The supply chain

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Speaker 3: issues were there before, it's just a matter that COVID

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Speaker 3: exposed them. When you rely on a supply chain primarily

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Speaker 3: from Asia that's you know, twelve to fifteen thousand miles

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Speaker 3: and takes four weeks ago across the ocean, you're one

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Speaker 3: bad day away from supply chain disruptions. The other thing, Lisa,

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Speaker 3: that's really really disgusting to me is that our two

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Speaker 3: primary reports in the United States, the Port of Long

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Speaker 3: Beach in the Port of Los Angeles, are the two

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Speaker 3: least efficient ports in the world by third party studies.

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Speaker 3: That means that places like Saudi Arabia and Congo can

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Speaker 3: unload ships twice as fast as we do in the

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Speaker 3: United States because we won't automate our reports because of

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Speaker 3: the unions, so therefore we're super inefficient. We get backed

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Speaker 3: up and we can't overcome the backups. And then you

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Speaker 3: see what California has done in terms of regulations for trucking,

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Speaker 3: taking more and more trucks off the road. So then

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Speaker 3: when we can actually unload a ship, we don't have

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Speaker 3: the trucks there to put the cargo on and ship

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Speaker 3: it to the grocery store. So it's a kind of

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Speaker 3: a self fulfilling prophecy mayor Peat is more worried about

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Speaker 3: equity for bridges and roads than he is, and trying

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Speaker 3: to fix some of these items, these issues, such as

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Speaker 3: the automation of the ports, getting the railroads to run

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Speaker 3: more efficiently and not derail every other day, and having

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Speaker 3: common sense laws about trucking that doesn't force a trucker

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Speaker 3: who might have a ten year old truck to go

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Speaker 3: off the road because it doesn't meet some arbitrary green

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Speaker 3: emission standard.

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Speaker 1: Well, you know, yeah, that makes no sense. But you know,

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Speaker 1: nothing seems to make sense anymore. We saw during COVID

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Speaker 1: to you know, China, I think controls about eighty to

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Speaker 1: ninety percent of our antibiotics, and they threaten to withhold

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Speaker 1: that from us. And it really begs the question of

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Speaker 1: why do we rely on enemy nations for critical goods

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Speaker 1: that are key to our survival as a country and

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Speaker 1: as humans.

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Speaker 3: But we do across the board, you know, I call

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Speaker 3: it our frenemies, right, So we import all of our

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Speaker 3: generic medicine from China, all of our medical equipment, most

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Speaker 3: of that comes from China. But also as the Biden

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Speaker 3: administration continues to push this green energy. All of the

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Speaker 3: materials for green energy pretty much come from China. All

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Speaker 3: the batteries that are using evs are Chinese made for

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Speaker 3: the most part. But then you see that we import

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Speaker 3: twenty percent of our uranium from Russia still today, and

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Speaker 3: so we continue to import goods from countries that don't

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Speaker 3: want to see us do very well. And what we

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Speaker 3: have to do is, again it's not necessarily decouple from

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Speaker 3: these countries, because you need a global source of supply

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Speaker 3: for everything, but we need to become much more independent.

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Speaker 3: We have enough off rare earth minerals in the United

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Speaker 3: States to fund any sort of green initiative that any

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Speaker 3: government would want to do. We've just passed laws that

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Speaker 3: says that they can't mind them. And so instead we

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Speaker 3: rely on Chinese companies in Africa using slave labor to

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Speaker 3: do the mining, and then we pay the Chinese for

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Speaker 3: the benefit of having their batteries come to the United States.

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Speaker 1: Quick break more in the global supply chain, I've seen

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Speaker 1: what seems like legitimate concerns about for electrical grid could

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Speaker 1: even handle the amount of electric vehicles they want to

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Speaker 1: push us to, and concerns over that. So I don't know,

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Speaker 1: but I'm not a big I'm not for the whole

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Speaker 1: electric vehicle push.

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Speaker 2: I think people should just.

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Speaker 3: Oh, I'm not paying evs. Don't get me wrong there,

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Speaker 3: but I'm saying that that's what they're going to do.

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Speaker 3: We have to do this. But no, the whole EV

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Speaker 3: thing is a joke and the fact that they're saying

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Speaker 3: things like by twenty thirty, they want every military vehicle

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Speaker 3: in the United States be an EV. What that means

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Speaker 3: is that you're going to have tanks who have to

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Speaker 3: a diesel generator behind them and use a diesel generator

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Speaker 3: to charge their battery while they're in the middle of

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Speaker 3: a battlefield. Our grid can't handle that. If you look

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Speaker 3: at going to solar, you would need six states the

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Speaker 3: side of the size of South Dakota in order to

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Speaker 3: have enough solar power to just do what we do today.

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Speaker 3: And that's before we start doing all these cars. And

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Speaker 3: think about this. I mean, you live in Miami. Imagine

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Speaker 3: a city like Miami or New York where you have

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Speaker 3: to have these super long extension cords coming out of

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Speaker 3: your condominium of your apartment down to your car and

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Speaker 3: charging your car. What's that going to look like? That's insane?

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Speaker 1: Also just don't like being forced into anything. And you know,

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Speaker 1: the market's not dictating the demand for electric vehicles. These

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Speaker 1: companies aren't because they're losing money on it. And to

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Speaker 1: your point, there's a whole host of questions about, you know,

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Speaker 1: if it's even feasible to try to reach the goals

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Speaker 1: they're trying to reach, which really begs the question, you know,

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Speaker 1: why the hell are we doing it?

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Speaker 3: I mean, look what Ford's doing. I mean, Forbes, they're

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Speaker 3: sales of the F one fifty, the electronic f one

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Speaker 3: fifty have gone to basically zero, and they've they've cut production.

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Speaker 3: We've seen other companies cutting down on their production of evs.

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Speaker 3: The one, the one company that is doing very well

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Speaker 3: is Toyota because Toyota is invested in hybrids, which kind

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Speaker 3: of actually makes sense if you think about it, right,

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Speaker 3: You run on electricity when you can, and you have

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Speaker 3: gas when you can't run on electricity. If you want

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Speaker 3: to do a transition, that kind of makes sense to

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Speaker 3: a guy like me, Even though I got to admit,

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Speaker 3: I got me a big Ford F one fifty that

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Speaker 3: I love driving, even in Chicago, so you know, I'm

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Speaker 3: not switching to evs anytime soon.

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Speaker 1: How capable is the US to be, you know, basically

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Speaker 1: completely self sufficient.

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Speaker 3: No country is able to be self sufficient everyone. I

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Speaker 3: mean this goes back to Adam Smith in the first

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Speaker 3: real writings about economics. No country can be self sufficient.

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Speaker 3: You have to rely on other nations. But what you

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Speaker 3: need to do is develop the ability in other nations

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Speaker 3: to do things. And we should be investing in countries

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Speaker 3: like Mexico and countries in South and Central America to

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Speaker 3: do some of the manufacturing that we're currently getting from

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Speaker 3: places like Asia, and that would shorten the supply chain,

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Speaker 3: that would make things a lot better for the country.

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Speaker 3: But what we need to do is take a very

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Speaker 3: very hard look at ourselves and say, what are the

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Speaker 3: strategic products that we need to be making. Going back

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Speaker 3: to what we just talked about a few minutes ago,

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Speaker 3: the medicines. We should not be getting medicines and medical

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Speaker 3: devices from a foreign country, any foreign country, even if

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Speaker 3: it was from a friend, say like France or Germany.

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Speaker 3: We should be self sufficient on something like that. But

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Speaker 3: when it comes to let's say champagne, let's let the

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Speaker 3: French do the champagn because they're kind of good at it.

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Speaker 2: I'll take that one. Why.

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Speaker 1: You know, we saw a ton of disruption during COVID,

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Speaker 1: which you know, sort of shows us how fragile the

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Speaker 1: global supply chain really is. Why was there so much disruption?

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Speaker 1: Sort of take us through what we saw. Then, you know,

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Speaker 1: we saw it later with baby food formula and a

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Speaker 1: whole host of things.

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Speaker 3: Let's separate the two. So let's go back to COVID

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Speaker 3: and what happened during that whole process. And what we

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Speaker 3: saw was in March of twenty twenty and into April

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Speaker 3: of twenty twenty, demand for anything pretty much other than

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Speaker 3: food fell off the cliff, and then people were like,

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Speaker 3: oh my god, we're going to be stuck in our

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Speaker 3: houses for the foreseen future. I want to get a peloton,

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Speaker 3: I want to get some weights, I want to get

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Speaker 3: some stuff. And so we started ordering a whole bunch

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Speaker 3: of stuff, and that mostly came from Asia. The other

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Speaker 3: thing that happened is that automotive sales fell off the charts,

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Speaker 3: and so the makers of the electronics for automotive companies

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Speaker 3: stopped manufacturing. And then when automotive companies started to say, hey,

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Speaker 3: we need some stuff, they had to ramp up the

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Speaker 3: manufacturing get that going again. So then you add that

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Speaker 3: to the inability of American ports to unload the ships.

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Speaker 3: There were literally ships Lisa that set off the coast

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Speaker 3: of California for three months waiting to be unloaded because

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Speaker 3: we're that inefficient at unloading the ships and then getting

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Speaker 3: the products to the stores.

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Speaker 1: Is that a worker concern, like people not going into

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Speaker 1: work because of COVID or.

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Speaker 3: No, it's because that we have We've succumbed to the

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Speaker 3: unions and refused to automate reports. Our ports are almost

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Speaker 3: entirely manually operated, not automated, and that's why it takes

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Speaker 3: us twice as long unloaded ship as it does someplace

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Speaker 3: in Saudi Arabia or China.

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Speaker 2: How do other countries do it?

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Speaker 3: They use automation, they use they use automated cranes. So

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Speaker 3: think about this. If you are operating a crane in

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Speaker 3: the port of Long Beach, you're one person on one crane,

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Speaker 3: because it's.

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Speaker 2: Like that would be very dangerous, it would be don't

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Speaker 2: let me near. It's not.

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Speaker 3: But it's not automative. If you're sitting in say Saudi Arabia,

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Speaker 3: you're operating in front of saying you know, imagine like

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Speaker 3: a series of TV screens and you're operating ten cranes

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Speaker 3: at the same time because you're doing it remotely, and

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Speaker 3: you can do it that way because of the automation

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Speaker 3: that happens, so you're able to unload ten ships at

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Speaker 3: the same time with one person, for example. We don't

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Speaker 3: do that in the United States. It's because of the unions.

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Speaker 3: It's because that we've we've never really wanted to challenge

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Speaker 3: the unions and say, guys, you've got to find better

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Speaker 3: ways to do this, because the supply chain really had

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Speaker 3: never been stressed as it was during the COVID crisis. Now,

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Speaker 3: going back to the baby formula that you asked about,

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Speaker 3: that was a totally different scenario. That was because the

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Speaker 3: government decided to shut down I believe it was one factory,

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Speaker 3: but that there may have been two that had self

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Speaker 3: reported issues with bacteria in the manufacturing process. They claimed

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Speaker 3: to have fixed it, but instead of going in and

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Speaker 3: inspecting that, the government shut them down for I think

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Speaker 3: it was three months, which led to that whole baby

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Speaker 3: formula crisis, and quite frankly, we're not totally recovered from

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Speaker 3: that yet.

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Speaker 1: There has to be an easier way, As you pointed,

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Speaker 1: out like automating. I mean, I just I refuse to

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Speaker 1: accept things being this inefficient. Nothing seems to work anymore,

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Speaker 1: Like planes don't take off on time. As you mentioned,

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Speaker 1: we've got trains derailing. Like it doesn't doesn't seem to

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Speaker 1: have to be this way.

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Speaker 3: Well, you're right, but let's look at airplanes. You're exactly right.

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Speaker 3: When's the last time you boarded an airplane, Lisa, and

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Speaker 3: you're like, wow, that was a really good experience.

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Speaker 2: Yeah.

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Speaker 1: I get nervous when planes take off on time now

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Speaker 1: because I'm like, wait, what's going on there?

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Speaker 3: Yeah? Right, it's probably something they do the safety check.

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Speaker 2: Big, Wait a minute, something can't be right.

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Speaker 3: But you know, if you look at how we board planes,

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Speaker 3: the way we board planes is completely backwards. Right. Planes

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Speaker 3: should be boarded from the back forward, number one Right.

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Speaker 3: It makes total sense to board from the back forward

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Speaker 3: because that way, the person did see thirty seven G

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Speaker 3: is the first one on the plane. They walk all

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Speaker 3: the way back there and they get it done. But

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Speaker 3: we don't do it that way. We allow We allow

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Speaker 3: employees of the airlines to board before paying passengers, and

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Speaker 3: the employees of the airlines take up all the overhead

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Speaker 3: space and so the paying passengers then have to get

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Speaker 3: on the plane and go, oh gee, there's no overhead

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Speaker 3: space here. So then they got to take their stuff

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Speaker 3: off the plane get it checked. It's a ridiculous process.

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Speaker 3: No one is looking at how to make this stuff

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Speaker 3: better and faster. They're only looking at how to protect

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Speaker 3: their jobs, which is understandable, but it's really sad for

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Speaker 3: the efficiency of the company.

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Speaker 1: If you had to read Pete Buddhajudge's The Transportation Secretary.

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Speaker 3: Zero I actually wrote an op ed about a year ago,

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Speaker 3: or maybe it was back in February saying that he

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Speaker 3: was actually the first member of the Biden cabinet that

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Speaker 3: should be impeached. He is the definition of an equity higher.

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Speaker 3: He has no knowledge of what to do. Remember his

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Speaker 3: nickname was pothole Pete. He couldn't fill potholes in a

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Speaker 3: small town of Indiana, right, So that's how he became

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Speaker 3: Secretary of Transportation. He spends more time talking about equity

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Speaker 3: for bridges and roads. He spends more time trying to

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Speaker 3: find airlines than he does trying to fix the infrastructure.

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Speaker 3: He should be think about this. He's so bad at

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Speaker 3: his job. He was on paternity leave for two months

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Speaker 3: and no one knew he was gone, And I go

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Speaker 3: with the old joke. Do you know how this? Do

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Speaker 3: you know how you know the secretary of Transportation is

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Speaker 3: doing a bad job? You know who the secretary of

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Speaker 3: Transportation is? And that kind of leads us to where

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Speaker 3: we are with Mayor p He's extremely bad at his job.

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Speaker 3: He's incapable. My twenty year old daughter could do a

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Speaker 3: better job just by not being stupid. And it's really

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Speaker 3: a shame that we put the infrastructure of the most

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Speaker 3: powerful country in the world in the hands of someone

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Speaker 3: who is basically an equity higher for the Biden administration.

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Speaker 1: Quick commercial break, stay with us. I remember flying into

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Speaker 1: LGA during Pride Month and they're like the first gay

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Speaker 1: transportation secretary and I'm like, I don't care. I just

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Speaker 1: want planes to take off on time, you know, Like

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Speaker 1: I just I don't care, like I just want things

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Speaker 1: to learn.

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Speaker 3: That is such a good points and that's the conservative mantra, right,

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Speaker 3: we don't care. We don't care who you sleep with,

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Speaker 3: I don't care what you think. We don't care about this.

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Speaker 3: Just make the darn stuff work the way it's supposed

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Speaker 3: to work, and not be as a Secretary of Transportation,

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Speaker 3: as the vice president, as a Supreme Court justice. I

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Speaker 3: don't care who you love. I don't care who you

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Speaker 3: sleep with as long as it's not a child. But

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Speaker 3: for God's sake, just do your gosh darn job.

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Speaker 1: As diversity, equity and inclusion steeped its way into you know,

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Speaker 1: global supply chain issues, or they're functioning of that more broadly,

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Speaker 1: it's everywhere.

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Speaker 3: I mean, I see it with my clients. They have

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Speaker 3: to hire people that normally wouldn't be hired into a job.

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Speaker 3: You know, my son recently graduated from college and he

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Speaker 3: had a hard time finding a job coming out of

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Speaker 3: school with a perfect GPA because he didn't check any

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Speaker 3: of the boxes. And so, you know, we're going to

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Speaker 3: continue to see more and more companies underperformed because they're

437
00:21:49,560 --> 00:21:54,080
Speaker 3: putting people in leadership roles that don't belong there. And

438
00:21:54,080 --> 00:21:56,959
Speaker 3: the other thing that happens, though, too, is that it

439
00:21:57,240 --> 00:22:01,760
Speaker 3: really hurts qualified people of diverse who could have gotten

440
00:22:01,760 --> 00:22:04,080
Speaker 3: a job, but now everyone thinks they got it because

441
00:22:04,119 --> 00:22:06,000
Speaker 3: of who they sleep with, or what color they are

442
00:22:06,119 --> 00:22:09,000
Speaker 3: or what gender they claim to be on that certain day.

443
00:22:09,200 --> 00:22:11,679
Speaker 3: And it shouldn't be like that. I remember going all

444
00:22:11,720 --> 00:22:14,000
Speaker 3: the way back to Lisa. I'm an old man. I

445
00:22:14,040 --> 00:22:16,440
Speaker 3: was in college in the late eighties and early nineties,

446
00:22:16,760 --> 00:22:19,280
Speaker 3: and I wrote an op ed that said, where is

447
00:22:19,320 --> 00:22:24,800
Speaker 3: my midget lesbian eskimo professor? Basically meaning I didn't care

448
00:22:24,880 --> 00:22:26,720
Speaker 3: who my professor was. I just wanted to be the

449
00:22:26,760 --> 00:22:27,720
Speaker 3: best one for the job.

450
00:22:28,000 --> 00:22:31,720
Speaker 1: Although that was prophetic, yes, But the point I'm trying

451
00:22:31,760 --> 00:22:35,120
Speaker 1: to make is that as conservatives, we don't care right.

452
00:22:35,200 --> 00:22:37,720
Speaker 3: We want the best. I want the most qualified person

453
00:22:37,800 --> 00:22:41,360
Speaker 3: being my professor, or being my son or daughter's professor.

454
00:22:41,640 --> 00:22:44,520
Speaker 3: I want the most qualified person making decisions about when

455
00:22:44,560 --> 00:22:46,800
Speaker 3: planes take off in land. I want the most qualified

456
00:22:46,840 --> 00:22:51,119
Speaker 3: person making interpretations of the Constitution, not someone who is

457
00:22:51,160 --> 00:22:54,040
Speaker 3: there because they just happened to fit the checkbox that

458
00:22:54,119 --> 00:22:55,560
Speaker 3: the sitting president wants them to fit.

459
00:22:55,680 --> 00:22:57,560
Speaker 1: I wanted to ask you real quick because I just

460
00:22:57,560 --> 00:23:01,560
Speaker 1: saw something for the going back to the issue at

461
00:23:01,600 --> 00:23:03,960
Speaker 1: the Red Sea. So I was reading about thirty percent

462
00:23:04,000 --> 00:23:08,160
Speaker 1: of Israel Israeli imports come through the Red Sea. How

463
00:23:08,160 --> 00:23:12,199
Speaker 1: does that impact Israel? Then I'm saying that you know

464
00:23:12,280 --> 00:23:14,119
Speaker 1: some of these it's going to be a big issue

465
00:23:14,160 --> 00:23:16,639
Speaker 1: for Israel. So talk a little bit about how does

466
00:23:16,680 --> 00:23:19,119
Speaker 1: that impact Israel and does it impact their ability to

467
00:23:19,480 --> 00:23:20,120
Speaker 1: fight this war?

468
00:23:20,560 --> 00:23:23,840
Speaker 3: It could, but you got to remember too, we're you know,

469
00:23:24,000 --> 00:23:27,119
Speaker 3: since October seventh, we're only talking about twelve ships that

470
00:23:27,160 --> 00:23:30,359
Speaker 3: have been attacked, and none of them have actually sank. So,

471
00:23:31,080 --> 00:23:33,560
Speaker 3: you know, this is generating a lot of news, and

472
00:23:33,640 --> 00:23:36,239
Speaker 3: rightly so, because we shouldn't let it be happening. But

473
00:23:36,800 --> 00:23:42,040
Speaker 3: other than delaying the shipping times and causing the supply

474
00:23:42,200 --> 00:23:46,160
Speaker 3: chain to be extended, it hasn't really disrupted supply yet,

475
00:23:46,400 --> 00:23:49,120
Speaker 3: So Israel is going to be fine. If I think

476
00:23:49,200 --> 00:23:51,159
Speaker 3: we got to the point where we were seeing Israel

477
00:23:51,160 --> 00:23:53,600
Speaker 3: be an impacted, you'd start to see the US escorting

478
00:23:53,640 --> 00:23:56,080
Speaker 3: ships into the ports of Israel. But we're not at

479
00:23:56,080 --> 00:23:56,760
Speaker 3: that point yet.

480
00:23:56,880 --> 00:23:59,080
Speaker 1: Are there any other issues we haven't touched upon that

481
00:23:59,280 --> 00:24:02,560
Speaker 1: are sort of impac acting the global supply or things

482
00:24:02,560 --> 00:24:04,480
Speaker 1: that you want to get across to the audience.

483
00:24:04,640 --> 00:24:05,879
Speaker 3: I think the other thing that we need to be

484
00:24:05,920 --> 00:24:10,320
Speaker 3: talking about is the economy and the economies impact on supply.

485
00:24:10,520 --> 00:24:13,400
Speaker 3: And you know, it's really interesting because we're seeing all

486
00:24:13,400 --> 00:24:17,240
Speaker 3: these talking heads talk about how great the November CPI was,

487
00:24:17,320 --> 00:24:19,199
Speaker 3: and it was at three point one percent, which is

488
00:24:19,320 --> 00:24:21,760
Speaker 3: good but when you add that to what it was

489
00:24:21,800 --> 00:24:24,840
Speaker 3: the year before, which was seven percent, we're still running

490
00:24:24,880 --> 00:24:27,679
Speaker 3: at ten percent inflation over the last two years, and

491
00:24:27,760 --> 00:24:30,080
Speaker 3: core CPI is stuck at four percent. So when people

492
00:24:30,080 --> 00:24:32,800
Speaker 3: can't afford to buy things, one of two things happened.

493
00:24:33,080 --> 00:24:35,760
Speaker 3: The economy slows down or people go into debt. And

494
00:24:35,880 --> 00:24:37,720
Speaker 3: right now we keep seeing people go into more and

495
00:24:37,800 --> 00:24:40,360
Speaker 3: more debt. We've got credit card debt at over one

496
00:24:40,359 --> 00:24:44,560
Speaker 3: point one trillion dollars. We're seeing record numbers of people

497
00:24:44,600 --> 00:24:47,800
Speaker 3: being denied credit cards. We're seeing record numbers of people

498
00:24:48,080 --> 00:24:51,760
Speaker 3: do emergency for one K withdrawals because they can't afford

499
00:24:51,800 --> 00:24:55,280
Speaker 3: to live. And they're not using their credit cards to say,

500
00:24:55,359 --> 00:24:58,400
Speaker 3: buy trips to Paris and flat screen TVs. They're using

501
00:24:58,400 --> 00:25:00,680
Speaker 3: the credit cards that pay for groceries and to pay

502
00:25:00,720 --> 00:25:03,119
Speaker 3: the rent and to pay their utilities and then paying

503
00:25:03,160 --> 00:25:05,639
Speaker 3: twenty five to thirty percent interest on top of that.

504
00:25:05,640 --> 00:25:08,639
Speaker 3: That is probably the biggest threat to our supply chain

505
00:25:08,880 --> 00:25:11,960
Speaker 3: than anything else right now, is the economy slowing down

506
00:25:12,320 --> 00:25:14,280
Speaker 3: because of the debt that people are incurring because of

507
00:25:14,280 --> 00:25:17,560
Speaker 3: the inflation and the failed economic policies of the Biden administration.

508
00:25:17,720 --> 00:25:19,440
Speaker 2: Yeah, my heart breaks for people right now.

509
00:25:19,480 --> 00:25:22,679
Speaker 1: It's definitely we've just been through a lot as a

510
00:25:22,680 --> 00:25:27,199
Speaker 1: country between COVID and government lockdowns, and then now with

511
00:25:27,400 --> 00:25:29,720
Speaker 1: the economic concerns and as you mentioned, a lot of

512
00:25:29,760 --> 00:25:32,600
Speaker 1: people having to pay for groceries on their credit card

513
00:25:32,640 --> 00:25:34,359
Speaker 1: because they need to feed their family they don't know

514
00:25:34,359 --> 00:25:37,040
Speaker 1: how else to do it. And then also the possibility

515
00:25:37,040 --> 00:25:39,479
Speaker 1: of a world war. So there's a lot going on.

516
00:25:39,760 --> 00:25:42,560
Speaker 3: Look at it this way, Lisa. I have a client,

517
00:25:42,680 --> 00:25:47,160
Speaker 3: a manufacturing client in the South, and they're losing people

518
00:25:47,160 --> 00:25:50,119
Speaker 3: who work in their factory. They've quit their job and

519
00:25:50,160 --> 00:25:52,880
Speaker 3: started working at a local McDonald's because they can walk

520
00:25:52,880 --> 00:25:55,480
Speaker 3: to the McDonald's and make fifteen dollars an hour. They

521
00:25:55,480 --> 00:25:57,679
Speaker 3: can't afford to drive the extra ten miles to the

522
00:25:57,720 --> 00:26:00,439
Speaker 3: plant and make eighteen dollars an hour because of the

523
00:26:00,440 --> 00:26:03,280
Speaker 3: price of gas. Think about that for a second. People

524
00:26:03,280 --> 00:26:06,720
Speaker 3: are leaving manufacturing jobs to work in fast food because

525
00:26:06,760 --> 00:26:08,640
Speaker 3: they can walk there and not to incur the price

526
00:26:08,640 --> 00:26:09,000
Speaker 3: of gas.

527
00:26:09,040 --> 00:26:10,840
Speaker 1: And then there's going to be an impact of that,

528
00:26:11,000 --> 00:26:13,800
Speaker 1: as you're pointing out, you know previously, you know if

529
00:26:13,840 --> 00:26:17,280
Speaker 1: that impacts our ability to manufacture things. So it's like,

530
00:26:17,680 --> 00:26:22,080
Speaker 1: doesn't seem to be any let up for people right now. Yeah,

531
00:26:22,080 --> 00:26:26,600
Speaker 1: but you knowbody bottom line, or at least my mentality

532
00:26:26,680 --> 00:26:29,359
Speaker 1: on all this stuff is, you know, because politics that

533
00:26:29,400 --> 00:26:32,159
Speaker 1: there's there's a heaviness and everything going on in the

534
00:26:32,160 --> 00:26:34,200
Speaker 1: country right now, and so I think it's more important

535
00:26:34,200 --> 00:26:37,960
Speaker 1: than ever to sort of disconnect and to spend time

536
00:26:37,960 --> 00:26:40,719
Speaker 1: with family and friends and find things that make you happy.

537
00:26:40,760 --> 00:26:43,520
Speaker 1: You know. I'm blessed to live in Miami and Florida,

538
00:26:43,640 --> 00:26:44,920
Speaker 1: and so you know, I spend a lot of time

539
00:26:44,960 --> 00:26:47,960
Speaker 1: outside and just go on walks, and I think it's

540
00:26:48,000 --> 00:26:51,159
Speaker 1: just important to try to find, you know, the deeper

541
00:26:51,200 --> 00:26:54,280
Speaker 1: meaning in life and to decompress and take some time

542
00:26:54,320 --> 00:26:56,080
Speaker 1: away from all this heaviness.

543
00:26:56,160 --> 00:26:58,280
Speaker 3: You're right. I mean, I live in the pupil's Republic

544
00:26:58,359 --> 00:27:00,639
Speaker 3: to Chicago, so it's not quite as nice as of

545
00:27:00,640 --> 00:27:03,040
Speaker 3: being in Miami. But you're actually right. This is a

546
00:27:03,040 --> 00:27:05,520
Speaker 3: time of year where we should all reflect because no

547
00:27:05,560 --> 00:27:07,760
Speaker 3: matter how bad we have it here in the United States,

548
00:27:07,760 --> 00:27:10,480
Speaker 3: and there are people who are hurting, seriously hurting, we

549
00:27:10,600 --> 00:27:12,639
Speaker 3: have it better than ninety nine point nine percent of

550
00:27:12,640 --> 00:27:15,760
Speaker 3: the global population, and we should take time to appreciate that,

551
00:27:16,200 --> 00:27:20,040
Speaker 3: and we should, as conservatives, help out our fellow human

552
00:27:20,040 --> 00:27:23,880
Speaker 3: beings who need the help and give through either through

553
00:27:23,960 --> 00:27:27,160
Speaker 3: churches or charities or whatever. But help folks out because

554
00:27:27,520 --> 00:27:29,199
Speaker 3: you know, given a hand up to people is what

555
00:27:29,440 --> 00:27:30,960
Speaker 3: this country is all about, and what we've done in

556
00:27:31,000 --> 00:27:33,119
Speaker 3: the past, we'll do it again. And the resiliency of

557
00:27:33,160 --> 00:27:35,800
Speaker 3: the American people is amazing, and I have no doubt

558
00:27:35,800 --> 00:27:37,879
Speaker 3: that we'll recover from all this. It will take some

559
00:27:37,960 --> 00:27:40,560
Speaker 3: time and we'll look back on these days and go, man,

560
00:27:40,600 --> 00:27:42,639
Speaker 3: can you believe we went through that? But you know,

561
00:27:42,720 --> 00:27:46,880
Speaker 3: my grandparents went through the Great Depression and my great

562
00:27:46,880 --> 00:27:49,560
Speaker 3: grandparents fought in the World War One, So it's we

563
00:27:49,880 --> 00:27:51,679
Speaker 3: go through things as a nation, but we always can

564
00:27:51,720 --> 00:27:52,119
Speaker 3: come through it.

565
00:27:52,200 --> 00:27:54,399
Speaker 1: Yeah, exactly. I mean ultimate gods in control. And then

566
00:27:54,440 --> 00:27:56,800
Speaker 1: I always try to think back to your pointing out

567
00:27:56,880 --> 00:28:00,879
Speaker 1: there's been through, you know, times throughout history where people

568
00:28:00,920 --> 00:28:03,880
Speaker 1: living at those times probably feel similar to where we do,

569
00:28:03,960 --> 00:28:05,240
Speaker 1: and if not much worse.

570
00:28:05,400 --> 00:28:08,800
Speaker 2: So we'll get through it. We'll get through it. Jim Nell's.

571
00:28:09,000 --> 00:28:11,520
Speaker 1: I appreciate you taking the time, sir, thanks for breaking

572
00:28:11,560 --> 00:28:13,360
Speaker 1: this all down for us. We really appreciate it.

573
00:28:13,520 --> 00:28:15,439
Speaker 3: Lisa, thank you so much, and Merry Christmas to you

574
00:28:15,440 --> 00:28:15,920
Speaker 3: and all your.

575
00:28:15,800 --> 00:28:23,320
Speaker 2: Listeners, you too, Merry Christmas. That was jim Nell's.

576
00:28:23,320 --> 00:28:25,960
Speaker 1: I appreciate him taking the time to break that issue

577
00:28:25,960 --> 00:28:26,600
Speaker 1: down for us.

578
00:28:26,800 --> 00:28:27,840
Speaker 2: Appreciate you guys.

579
00:28:27,720 --> 00:28:30,920
Speaker 1: At home for listening every Monday and Thursday. I hope

580
00:28:30,920 --> 00:28:34,320
Speaker 1: you have a very merry Christmas and can spend some

581
00:28:34,400 --> 00:28:35,520
Speaker 1: time with the people you love