1 00:00:10,640 --> 00:00:13,760 Speaker 1: The issues. We spend a lot of time talking about 2 00:00:13,800 --> 00:00:17,480 Speaker 1: the issues, don't we And they change from day to 3 00:00:17,560 --> 00:00:21,880 Speaker 1: day depending on what's in the news. Sometimes immigrations in 4 00:00:21,880 --> 00:00:26,040 Speaker 1: the news, sometimes abortions in the news, spending all these things, 5 00:00:26,160 --> 00:00:30,520 Speaker 1: the news changes. So the issues we're talking about change. 6 00:00:30,920 --> 00:00:33,640 Speaker 1: But here's what's something we should keep in mind at 7 00:00:33,680 --> 00:00:36,560 Speaker 1: all times. Something you have to keep in mind, something 8 00:00:36,640 --> 00:00:42,159 Speaker 1: I have to keep in mind. We are unique. You're unique. 9 00:00:42,720 --> 00:00:47,280 Speaker 1: I'm unique. We are political people. We understand that what 10 00:00:47,400 --> 00:00:52,000 Speaker 1: happens politically is critically important, so we focus on that 11 00:00:52,040 --> 00:00:54,640 Speaker 1: because it's super important for the direction of the country 12 00:00:54,640 --> 00:00:56,640 Speaker 1: and where we're going in our kids and our grandkids 13 00:00:56,680 --> 00:00:59,160 Speaker 1: and all this sudden. So we're political people, but we 14 00:00:59,240 --> 00:01:05,440 Speaker 1: always have to keep in mind most people aren't. Most 15 00:01:05,640 --> 00:01:10,080 Speaker 1: people aren't. They're simply not. If you asked me my 16 00:01:10,160 --> 00:01:14,679 Speaker 1: biggest issues for the twenty twenty four presidential election, I 17 00:01:14,760 --> 00:01:17,760 Speaker 1: have two things that are huge for me. And those 18 00:01:17,800 --> 00:01:21,240 Speaker 1: two things that are huge for me are probably not 19 00:01:21,360 --> 00:01:24,200 Speaker 1: on the top five, maybe not even the top ten 20 00:01:24,680 --> 00:01:27,039 Speaker 1: for the average voter. The two biggest things for me 21 00:01:27,120 --> 00:01:32,520 Speaker 1: going into the twenty twenty four presidential election COVID lockdowns, vaccines, tyranny. 22 00:01:32,959 --> 00:01:35,399 Speaker 1: Did you take part in it? If you did, have 23 00:01:35,520 --> 00:01:38,680 Speaker 1: you apologized and owned up to it. That's going to 24 00:01:38,760 --> 00:01:41,600 Speaker 1: be a big one for me. Number two, the FBI, 25 00:01:42,319 --> 00:01:46,200 Speaker 1: the weaponization of our federal police force, in my opinion, 26 00:01:46,319 --> 00:01:48,720 Speaker 1: most dangerous thing happening in the country. I will vote 27 00:01:49,120 --> 00:01:51,160 Speaker 1: based on those two issues. So as are my two 28 00:01:51,160 --> 00:01:54,200 Speaker 1: main issues going into twenty twenty four. Most voters will not. 29 00:01:55,240 --> 00:01:57,760 Speaker 1: Most voters don't care about those things, or if they do, 30 00:01:57,840 --> 00:02:00,400 Speaker 1: they care a little, it's not on their mind. You 31 00:02:00,520 --> 00:02:03,440 Speaker 1: probably have specific things too. They're probably not my two things. 32 00:02:03,480 --> 00:02:05,360 Speaker 1: But you have two things that I bet you they're 33 00:02:05,400 --> 00:02:07,600 Speaker 1: not common because you know what most people vote on. 34 00:02:07,680 --> 00:02:13,880 Speaker 1: Here's the truth. The economy. There's a million old political 35 00:02:13,919 --> 00:02:18,760 Speaker 1: statements about it. It's the economy, stupid, it's the economy. Historically, 36 00:02:19,760 --> 00:02:25,680 Speaker 1: presidents get reelected when there's no economic downturn. If you're 37 00:02:25,720 --> 00:02:29,040 Speaker 1: elected president, no matter your popularity, what else goes on. 38 00:02:29,280 --> 00:02:32,520 Speaker 1: If the economy is still chugging along, fine, when you're 39 00:02:32,600 --> 00:02:35,960 Speaker 1: up for reelection, you get reelected. That's a rule in 40 00:02:36,000 --> 00:02:38,520 Speaker 1: this country. Why do you think Democrats went after Donald 41 00:02:38,520 --> 00:02:41,079 Speaker 1: Trump's so hard? Why do you think they took advantage 42 00:02:41,080 --> 00:02:43,880 Speaker 1: of his naivete when it came to COVID so hard. 43 00:02:44,120 --> 00:02:46,440 Speaker 1: They did it because they knew they could wreck the economy. 44 00:02:46,440 --> 00:02:48,280 Speaker 1: The Trump economy was booming. It was going to get 45 00:02:48,320 --> 00:02:52,040 Speaker 1: him reelected. Boom. They slaughtered him for it. People vote 46 00:02:52,120 --> 00:02:55,400 Speaker 1: with their wallets. That's just the truth. And the truth 47 00:02:55,520 --> 00:03:01,040 Speaker 1: is this Joe Biden being elected, and he got elected. 48 00:03:01,960 --> 00:03:04,880 Speaker 1: It's just devastating for the country. Now. There's never a 49 00:03:04,880 --> 00:03:09,359 Speaker 1: good time to have an old, demented fool who can't 50 00:03:09,400 --> 00:03:13,560 Speaker 1: speak anymore, who's surrounded by card carrying communists. There's never 51 00:03:13,600 --> 00:03:16,160 Speaker 1: a good time to have that guy be elected president. 52 00:03:16,240 --> 00:03:18,919 Speaker 1: It's not like, oh wow, it's nineteen fifty four, We're 53 00:03:18,919 --> 00:03:22,119 Speaker 1: fine with Joe and it would always suck. But man, 54 00:03:22,120 --> 00:03:30,120 Speaker 1: we quite literally couldn't afford to have Joe Biden become 55 00:03:30,160 --> 00:03:34,200 Speaker 1: president of the United States of America because of the 56 00:03:34,400 --> 00:03:39,280 Speaker 1: insane COVID response around the world, but also in this country, 57 00:03:39,640 --> 00:03:44,040 Speaker 1: we simply put ourselves in a real bind. So when 58 00:03:44,080 --> 00:03:48,600 Speaker 1: twenty twenty came around, we really could not afford someone 59 00:03:48,680 --> 00:03:52,800 Speaker 1: like Joe Biden to be installed elected whatever you want 60 00:03:52,840 --> 00:03:55,360 Speaker 1: to call it, we simply couldn't afford it as a 61 00:03:55,480 --> 00:03:59,640 Speaker 1: nation and to be honest with you, If you're screaming 62 00:03:59,680 --> 00:04:01,680 Speaker 1: at the TV right now, they did it to Trump's 63 00:04:01,680 --> 00:04:03,760 Speaker 1: economy on purpose, You're one hundred percent right they did. 64 00:04:04,560 --> 00:04:07,480 Speaker 1: If you're screaming at the TV right now, they used 65 00:04:07,600 --> 00:04:10,400 Speaker 1: COVID to stop Trump to get him out of office, 66 00:04:10,440 --> 00:04:13,960 Speaker 1: You're right they did. But let's also keep in mind 67 00:04:14,080 --> 00:04:20,400 Speaker 1: the insane COVID response in this country began here, and 68 00:04:20,480 --> 00:04:24,200 Speaker 1: we're announcing new guidelines for every American to follow over 69 00:04:24,240 --> 00:04:27,839 Speaker 1: the next fifteen days as we combat the virus seach 70 00:04:27,839 --> 00:04:30,800 Speaker 1: and every one of us has a critical role to 71 00:04:30,839 --> 00:04:34,599 Speaker 1: play in stopping the spread and transmission of the virus. 72 00:04:34,680 --> 00:04:38,280 Speaker 1: We we did this today. This was done by a 73 00:04:38,360 --> 00:04:41,479 Speaker 1: lot of very talented people, some of whom were standing 74 00:04:42,120 --> 00:04:48,800 Speaker 1: with me. I know that hurts, but that's where the 75 00:04:48,880 --> 00:04:54,159 Speaker 1: path to destruction began, the very idea that you should 76 00:04:54,320 --> 00:04:57,960 Speaker 1: look at your economy when a virus comes for any reason, really, 77 00:04:57,960 --> 00:04:59,479 Speaker 1: but when a virus comes, that you should look at 78 00:04:59,480 --> 00:05:03,880 Speaker 1: your economy and say stop, everyone stop moving. I'll tell 79 00:05:03,880 --> 00:05:07,040 Speaker 1: you what we'll do. We'll just we'll press pause and 80 00:05:07,080 --> 00:05:09,720 Speaker 1: then whenever we feel like it will unpaus it. Guys, 81 00:05:10,320 --> 00:05:15,520 Speaker 1: that is insane. Anybody who's even vaguely familiar with how 82 00:05:15,560 --> 00:05:18,640 Speaker 1: to run a small mom and pop shop will tell 83 00:05:18,680 --> 00:05:21,800 Speaker 1: you that is insane to do for a nation, let 84 00:05:21,839 --> 00:05:25,440 Speaker 1: alone a world. You're putting yourself on the path to destruction. Okay, 85 00:05:25,480 --> 00:05:27,680 Speaker 1: so fifteen days to slow the spread put us on 86 00:05:27,720 --> 00:05:31,760 Speaker 1: the path to destruction. Then two years later Joe Biden 87 00:05:31,839 --> 00:05:35,599 Speaker 1: runs for office. Now he knows that Democrats used COVID 88 00:05:35,640 --> 00:05:38,680 Speaker 1: to destroy the economy so Donald Trump could get elected. 89 00:05:38,720 --> 00:05:42,040 Speaker 1: Donald Joe Biden knows all that. The problem is when 90 00:05:42,080 --> 00:05:45,440 Speaker 1: you run for two years on being pro lockdown, you 91 00:05:45,480 --> 00:05:47,599 Speaker 1: can't get elected and then say, Okay, we're done with 92 00:05:47,640 --> 00:05:50,560 Speaker 1: the lockdowns. So what is the Joe Biden solution been? 93 00:05:51,800 --> 00:05:54,960 Speaker 1: Why about it? Look, the bottom line is we made 94 00:05:54,960 --> 00:05:56,880 Speaker 1: a lot of progress over the last twenty months to 95 00:05:56,960 --> 00:05:59,000 Speaker 1: billy economy from the bottom up in the middle out 96 00:05:59,400 --> 00:06:02,560 Speaker 1: he stead trickle down economics that failed us the last 97 00:06:02,600 --> 00:06:05,640 Speaker 1: forty years, and we just have to keep going. In 98 00:06:05,640 --> 00:06:09,200 Speaker 1: my view, what I'm most excited about is people are 99 00:06:09,200 --> 00:06:11,960 Speaker 1: starting to feel a sense of optimism as they see 100 00:06:11,960 --> 00:06:15,320 Speaker 1: the impact of the achievements in their own lives. So 101 00:06:15,360 --> 00:06:18,880 Speaker 1: the economy is up, price inflation is down, reel incomes 102 00:06:18,880 --> 00:06:21,200 Speaker 1: are up, gas prices are down and need to come 103 00:06:21,240 --> 00:06:28,320 Speaker 1: down further. Everything's good, they got everything's good, Everything's fine. 104 00:06:28,320 --> 00:06:30,560 Speaker 1: But here's the thing, back to that talk we were 105 00:06:30,560 --> 00:06:33,360 Speaker 1: having about you and me and how we're different. You 106 00:06:33,440 --> 00:06:36,120 Speaker 1: already know the numbers. You know the inflation numbers. You 107 00:06:36,160 --> 00:06:39,159 Speaker 1: know people are hurting. But people who aren't watching I'm 108 00:06:39,279 --> 00:06:42,279 Speaker 1: right now, they understand the economy is not good too. 109 00:06:42,839 --> 00:06:49,720 Speaker 1: Why as they buy eggs, they buy meat, they buy materials. 110 00:06:49,720 --> 00:06:52,680 Speaker 1: If you ever price construction, if you price construction materials 111 00:06:52,760 --> 00:06:56,200 Speaker 1: recently out there, things are not good. Things are very, 112 00:06:56,279 --> 00:06:59,640 Speaker 1: very very bad. Things are so bad. I can't believe 113 00:06:59,680 --> 00:07:03,080 Speaker 1: this somehow out of the news already. You know, we 114 00:07:03,200 --> 00:07:06,600 Speaker 1: already had a recession during Joe Biden's presidency, right, two 115 00:07:06,640 --> 00:07:12,560 Speaker 1: straight quarters of economic shrinkage. By definition, that's a recession. 116 00:07:12,720 --> 00:07:18,000 Speaker 1: Yet they all just decided, well, the definition changed. Well, 117 00:07:18,000 --> 00:07:20,520 Speaker 1: we're certainly in a transition, and we are seeing slowing 118 00:07:20,600 --> 00:07:23,640 Speaker 1: as we all would have expected. But I think if 119 00:07:23,640 --> 00:07:26,360 Speaker 1: you look at the full data and the type of 120 00:07:26,440 --> 00:07:30,680 Speaker 1: data that NDER looks at, virtually nothing signals that this 121 00:07:30,840 --> 00:07:34,560 Speaker 1: period in the second quarter is recession area. President Biden 122 00:07:34,680 --> 00:07:38,280 Speaker 1: is said we've entered a new phase. In our recovery, 123 00:07:38,960 --> 00:07:45,000 Speaker 1: focused on achieving steady, stable growth without sacrificing the gains 124 00:07:45,040 --> 00:07:48,080 Speaker 1: of the last eighteen months. Look at it more broadly, 125 00:07:48,400 --> 00:07:51,960 Speaker 1: at the data, and that's why we're seeing. What we're 126 00:07:52,000 --> 00:07:54,960 Speaker 1: seeing is that we are in a transition. It doesn't 127 00:07:54,960 --> 00:07:57,320 Speaker 1: seem that the US economy is in recession right now. 128 00:07:57,760 --> 00:07:59,840 Speaker 1: That doesn't sound like a recession to me, thank you. 129 00:08:06,400 --> 00:08:09,960 Speaker 1: Back to the old Biden strategy of just lie, it's 130 00:08:10,000 --> 00:08:13,320 Speaker 1: actually quite simple. When you have no moral compass whatsoever, 131 00:08:13,960 --> 00:08:17,200 Speaker 1: whatever something's going wrong, you just lie. So back to 132 00:08:17,240 --> 00:08:20,360 Speaker 1: the economy that's going bad, it is bad. And if 133 00:08:20,360 --> 00:08:23,360 Speaker 1: you're paying attention to anything out there right now, any 134 00:08:23,360 --> 00:08:26,360 Speaker 1: of the economic indicators, from the layoffs to the new 135 00:08:26,400 --> 00:08:29,080 Speaker 1: home builders, the things they're saying, to things like that, 136 00:08:29,480 --> 00:08:32,400 Speaker 1: you understand that we are heading into a very very 137 00:08:32,480 --> 00:08:36,679 Speaker 1: dark period economically, which again circles back to Joe Biden 138 00:08:37,160 --> 00:08:39,680 Speaker 1: and how we just simply could not afford to have 139 00:08:39,800 --> 00:08:44,360 Speaker 1: this old fool elected because they are one committed to 140 00:08:44,400 --> 00:08:48,600 Speaker 1: the climate change death cultists, whose entire purpose in life 141 00:08:48,760 --> 00:08:52,679 Speaker 1: is destroying an economy that's already down. Here's our own 142 00:08:52,960 --> 00:08:58,760 Speaker 1: Treasury secretary. I think climate change is an existential threat 143 00:08:59,679 --> 00:09:05,480 Speaker 1: to our globe into our future. You can see that countries. 144 00:09:06,400 --> 00:09:09,600 Speaker 1: It is a long term risk, but it is becoming 145 00:09:10,160 --> 00:09:15,079 Speaker 1: notably more severe. I do believe that transition risks are 146 00:09:15,240 --> 00:09:20,560 Speaker 1: very real. As more and more countries adopt frameworks that 147 00:09:20,600 --> 00:09:26,200 Speaker 1: are meaningful to address climate change, we could see significant 148 00:09:26,360 --> 00:09:32,600 Speaker 1: changes in asset valuations that pose risk to financial institutions. 149 00:09:34,760 --> 00:09:38,640 Speaker 1: That's the Treasury secretary. Treasury Secretary is sitting around right now, 150 00:09:38,760 --> 00:09:43,000 Speaker 1: not stressed about your inflation, stressing about that suv you drive. 151 00:09:43,880 --> 00:09:46,520 Speaker 1: All that may have made you uncomfortable, but I am right. 152 00:09:46,600 --> 00:09:48,880 Speaker 1: The Great Carol Roth is going to break some of 153 00:09:48,880 --> 00:10:09,800 Speaker 1: this down for us next. The prices have tripled. It's outrageous. 154 00:10:10,160 --> 00:10:14,360 Speaker 1: Even buying the basics is a challenge. It's ridiculous that 155 00:10:14,440 --> 00:10:17,439 Speaker 1: we can't go to Sam's and get ketchup because they're 156 00:10:17,440 --> 00:10:20,360 Speaker 1: out of ketchup for weeks at a time. It took 157 00:10:20,360 --> 00:10:23,240 Speaker 1: me two months to get straws. I couldn't get straws 158 00:10:23,400 --> 00:10:26,320 Speaker 1: individually package straws. I was like, what do you mean, 159 00:10:26,360 --> 00:10:32,200 Speaker 1: I can't get straws. She can't even get straws. Tough 160 00:10:32,240 --> 00:10:35,040 Speaker 1: out there for small business owners joining me now, the 161 00:10:35,200 --> 00:10:38,839 Speaker 1: Great Carol Roth recovering investment banker, an author, which is 162 00:10:38,880 --> 00:10:40,520 Speaker 1: apparently going to be a thing for her now and 163 00:10:40,559 --> 00:10:44,960 Speaker 1: I'm glad about that. Carol. Okay, break this down for 164 00:10:45,040 --> 00:10:50,240 Speaker 1: somebody who's not aware. Why are supply chains so screwed up? 165 00:10:50,280 --> 00:10:53,000 Speaker 1: Why can't a small business owner get ketchup for straws. 166 00:10:53,040 --> 00:10:55,480 Speaker 1: These are things that have been readily available for my 167 00:10:55,679 --> 00:10:58,960 Speaker 1: entire forty one years on this planet. Yes, well, I 168 00:10:59,040 --> 00:11:02,920 Speaker 1: can seal care plastic straws in my purse just in 169 00:11:02,960 --> 00:11:06,240 Speaker 1: case of an emergency. You just put some into one 170 00:11:06,240 --> 00:11:09,000 Speaker 1: of those toothbrush holders. Teach My sister taught me that. 171 00:11:09,559 --> 00:11:11,960 Speaker 1: But it's a challenge. And this goes back a couple 172 00:11:12,000 --> 00:11:14,640 Speaker 1: of years when they decided it would be a great 173 00:11:14,679 --> 00:11:17,720 Speaker 1: idea to shut down like a third of the economy 174 00:11:17,760 --> 00:11:20,520 Speaker 1: and assume that they could just turn it back on 175 00:11:20,679 --> 00:11:23,760 Speaker 1: as if they were power cycling a modem, and it 176 00:11:23,920 --> 00:11:27,200 Speaker 1: had long term ripple effects that by the time Joe 177 00:11:27,200 --> 00:11:31,120 Speaker 1: Biden got into office, he had a chance to right 178 00:11:31,240 --> 00:11:34,880 Speaker 1: the ship and turn everything around, and instead Joe Biden said, 179 00:11:34,960 --> 00:11:38,599 Speaker 1: now I'm just going to double down on really stupid policies. 180 00:11:38,600 --> 00:11:41,560 Speaker 1: I'm going to just layer some extra crap on there, 181 00:11:41,600 --> 00:11:44,920 Speaker 1: because I don't think the American public is suffering enough. 182 00:11:44,960 --> 00:11:48,400 Speaker 1: I don't think small businesses are suffering enough. And then 183 00:11:48,720 --> 00:11:51,400 Speaker 1: I'm going to tell them that this is the greatest 184 00:11:51,480 --> 00:11:55,640 Speaker 1: economy of all time. That's my plan. I'm Joe Biden, 185 00:11:55,800 --> 00:12:02,400 Speaker 1: and I'm sticking to it. Errol, small business, How did 186 00:12:02,640 --> 00:12:05,680 Speaker 1: what did the government do to crush small business? Because 187 00:12:05,720 --> 00:12:08,040 Speaker 1: when people think about COVID lockdowns, they think it was 188 00:12:08,160 --> 00:12:10,760 Speaker 1: bad for business, bad for the economy, whether they support 189 00:12:10,800 --> 00:12:13,679 Speaker 1: them or didn't support them, And yet they can't quite 190 00:12:13,679 --> 00:12:17,000 Speaker 1: make sense of why things did just find at Amazon 191 00:12:17,320 --> 00:12:20,480 Speaker 1: and Target, but the small mom the pop shops not 192 00:12:20,600 --> 00:12:25,200 Speaker 1: so much. Why this was the very clever aspect of 193 00:12:25,240 --> 00:12:27,880 Speaker 1: the way they approached we were all in this together, 194 00:12:28,120 --> 00:12:30,440 Speaker 1: is that we were not all in this together. The 195 00:12:30,480 --> 00:12:33,760 Speaker 1: small businesses bore the brunts of the burden of the 196 00:12:33,800 --> 00:12:37,000 Speaker 1: shutdowns because who was shut down and who was deemed 197 00:12:37,200 --> 00:12:41,560 Speaker 1: the evil word essential was not based on data or science. 198 00:12:41,600 --> 00:12:45,439 Speaker 1: It was based on political cloud in connections. So your 199 00:12:45,559 --> 00:12:48,400 Speaker 1: dog could go get a haircut at a big box 200 00:12:48,520 --> 00:12:51,640 Speaker 1: retailer that dealt with pets, but you couldn't get your 201 00:12:51,640 --> 00:12:55,360 Speaker 1: own haircut at a small salon down the street from it. 202 00:12:55,360 --> 00:12:57,600 Speaker 1: It fundamentally made no sense. So that was sort of 203 00:12:57,600 --> 00:13:00,640 Speaker 1: the direct issue is those dollars when from the small 204 00:13:00,679 --> 00:13:04,800 Speaker 1: businesses to the big businesses. But then the Federal Reserve 205 00:13:04,920 --> 00:13:07,720 Speaker 1: came in with their intervention in the market. They took 206 00:13:07,760 --> 00:13:11,599 Speaker 1: interest rates down, they printed money, the government did stimulus, 207 00:13:11,640 --> 00:13:15,080 Speaker 1: and all of this gave cheap and easy capital to 208 00:13:15,280 --> 00:13:18,640 Speaker 1: the big companies to be able to come in and compete. 209 00:13:19,280 --> 00:13:21,840 Speaker 1: While it's screwed up the labor force, it screwed up 210 00:13:21,880 --> 00:13:26,559 Speaker 1: the supply chains. It eventually ended up stoking inflation with 211 00:13:26,600 --> 00:13:29,640 Speaker 1: the Biden decisions on top of that. And those are 212 00:13:29,679 --> 00:13:32,080 Speaker 1: all things that if you're a small business that's already 213 00:13:32,120 --> 00:13:35,360 Speaker 1: been hurt in terms of, you know, having your business 214 00:13:35,440 --> 00:13:38,200 Speaker 1: shut down and having these labor issues layering these things 215 00:13:38,240 --> 00:13:40,839 Speaker 1: on top of it, you don't have the financial wherewithal 216 00:13:41,200 --> 00:13:43,800 Speaker 1: to be able to withstand them. And you know, if 217 00:13:43,800 --> 00:13:46,760 Speaker 1: you look at some of the reports, Alignable says that 218 00:13:46,920 --> 00:13:50,840 Speaker 1: forty percent of the small businesses they surveyed couldn't pay 219 00:13:50,920 --> 00:13:54,240 Speaker 1: their rent on time and in full. In December, the 220 00:13:54,360 --> 00:13:58,719 Speaker 1: National Federation of Independent Businesses, which follow small businesses, has 221 00:13:58,720 --> 00:14:03,079 Speaker 1: had twelve months in a row of negative sentiments from 222 00:14:03,120 --> 00:14:06,559 Speaker 1: small business owners. So this is the backbone of the economy. 223 00:14:06,600 --> 00:14:08,320 Speaker 1: And by the way, Jesse, people think, you know, when 224 00:14:08,360 --> 00:14:12,120 Speaker 1: we're talking about small business that it's small it Before COVID, 225 00:14:12,120 --> 00:14:15,440 Speaker 1: this was half the economy, you know, half the GDP, 226 00:14:15,640 --> 00:14:19,600 Speaker 1: about about half the jobs and the biggest job creator. 227 00:14:19,720 --> 00:14:21,760 Speaker 1: So when we're talking about that, we're not just talking 228 00:14:21,760 --> 00:14:26,400 Speaker 1: about decentralization and economic freedom, but we're talking about, you know, 229 00:14:26,640 --> 00:14:29,600 Speaker 1: the economy. And what's going to happen is this great 230 00:14:29,640 --> 00:14:33,080 Speaker 1: consolidation that we're seeing where the big just get bigger 231 00:14:33,120 --> 00:14:39,800 Speaker 1: and more powerful and the average person ends up owning nothing. Carol, Now, 232 00:14:39,840 --> 00:14:42,440 Speaker 1: why can't they make ends meet? I don't understand. These 233 00:14:42,440 --> 00:14:46,960 Speaker 1: are business owners. Aren't they all rich? Yes, the average 234 00:14:46,960 --> 00:14:50,360 Speaker 1: a small business owner is super rich. You know, people 235 00:14:50,400 --> 00:14:55,080 Speaker 1: go into business because of economic freedom. There's the opportunity 236 00:14:55,240 --> 00:14:58,960 Speaker 1: potentially to get rich. But obviously, of the thirty two 237 00:14:59,040 --> 00:15:02,000 Speaker 1: point six million and at last count small businesses that 238 00:15:02,040 --> 00:15:04,320 Speaker 1: are in this country, a lot of them go into 239 00:15:04,360 --> 00:15:06,320 Speaker 1: it because they want to be their own boss, or 240 00:15:06,400 --> 00:15:09,160 Speaker 1: because they have a passion or a calling. There are 241 00:15:09,160 --> 00:15:11,800 Speaker 1: a lot of objectives that people have, and that's what 242 00:15:11,880 --> 00:15:14,800 Speaker 1: economic freedom is about. It's not just you know, becoming 243 00:15:14,840 --> 00:15:19,480 Speaker 1: a multimillionaire or a billionaires. It's putting out your dream 244 00:15:19,520 --> 00:15:21,720 Speaker 1: in the way that you want that meets your objectives. 245 00:15:22,080 --> 00:15:24,840 Speaker 1: And so you know, if you're an individual business owner, 246 00:15:25,200 --> 00:15:28,040 Speaker 1: you don't have a huge balance sheet of if you're 247 00:15:28,080 --> 00:15:31,200 Speaker 1: taking out a loan, you're probably personally guaranteeing it. You 248 00:15:31,280 --> 00:15:33,640 Speaker 1: might be dipping into your four oh one K, you 249 00:15:33,720 --> 00:15:36,960 Speaker 1: might be dipping into your home equity in order to 250 00:15:37,000 --> 00:15:40,320 Speaker 1: try to make this business go. And it helps everybody. 251 00:15:40,320 --> 00:15:43,280 Speaker 1: You may have employees, you're providing a product or a 252 00:15:43,360 --> 00:15:48,280 Speaker 1: service the people want or need. If you're in a 253 00:15:48,400 --> 00:15:51,640 Speaker 1: local community and people spend their sixty three cents of 254 00:15:51,680 --> 00:15:55,600 Speaker 1: every dollar it's estimated stays within that community. It supports choice, 255 00:15:55,760 --> 00:16:00,440 Speaker 1: it supports freedom, It supports decentralization and that pushback against 256 00:16:00,440 --> 00:16:05,000 Speaker 1: central control. And so it's very very meaningful in terms 257 00:16:05,120 --> 00:16:08,800 Speaker 1: of being able to have the opportunity to own something 258 00:16:08,840 --> 00:16:11,960 Speaker 1: and to build something and to build wealth and to 259 00:16:12,120 --> 00:16:16,320 Speaker 1: have those freedom and in that choice. And unfortunately, even 260 00:16:16,400 --> 00:16:20,000 Speaker 1: though it's so important to us, not enough people are 261 00:16:20,040 --> 00:16:26,360 Speaker 1: really caring about it. Well, at least the Treasury Secretary 262 00:16:26,440 --> 00:16:30,320 Speaker 1: is all over it. Carol Treasury Secretary Janet Yellen out 263 00:16:30,360 --> 00:16:34,720 Speaker 1: there talking about inflation coming down. I think we'll see 264 00:16:35,040 --> 00:16:39,200 Speaker 1: a substantial reduction in inflation in the year ahead. It's 265 00:16:39,240 --> 00:16:42,440 Speaker 1: going to take a year. Well, I believe, Buzzyan, this 266 00:16:42,560 --> 00:16:45,600 Speaker 1: next year you will see which lower inflation. If there's 267 00:16:45,640 --> 00:16:51,560 Speaker 1: not an unanticipated shock. I love that. If they're at 268 00:16:51,600 --> 00:16:54,960 Speaker 1: the end, well, if there's not an anticipated unanticipated shock. 269 00:16:55,280 --> 00:16:57,960 Speaker 1: Carol is still at six point two percent. I believe 270 00:16:58,240 --> 00:17:00,600 Speaker 1: that doesn't feel like it's coming down. It feels like 271 00:17:00,640 --> 00:17:03,840 Speaker 1: I'm poorer than I was a year ago. You are. 272 00:17:03,960 --> 00:17:06,840 Speaker 1: And let's just talk about Janet Yellow's track record for 273 00:17:06,880 --> 00:17:09,560 Speaker 1: a second. This is a woman who was head of 274 00:17:09,600 --> 00:17:14,760 Speaker 1: the Fed and completely missed the opportunity to raise interest rates. 275 00:17:14,760 --> 00:17:18,040 Speaker 1: She spent a whole a long time campaigning that we 276 00:17:18,160 --> 00:17:20,200 Speaker 1: talked about a couple of years ago, saying there would 277 00:17:20,200 --> 00:17:23,240 Speaker 1: be no inflation or and then it would be transitory 278 00:17:23,680 --> 00:17:26,000 Speaker 1: in between her gigs. By the way, she means seven 279 00:17:26,040 --> 00:17:29,360 Speaker 1: point two million dollars giving economic speeches because obviously she's 280 00:17:29,400 --> 00:17:32,320 Speaker 1: so good at predicting the stuff. And now she's going 281 00:17:32,359 --> 00:17:36,119 Speaker 1: to tell you that inflation is coming down. What they're 282 00:17:36,200 --> 00:17:38,359 Speaker 1: not telling you, and we knew this was going to 283 00:17:38,400 --> 00:17:42,280 Speaker 1: be The ruse is the rate of growth in inflation 284 00:17:42,960 --> 00:17:46,879 Speaker 1: is coming down, but the prices are not coming down, 285 00:17:47,040 --> 00:17:49,919 Speaker 1: so that you know nine percent year over year that 286 00:17:49,960 --> 00:17:53,240 Speaker 1: you absorbed last year, plus you know the six percent 287 00:17:53,359 --> 00:17:55,800 Speaker 1: this year, plus the fact that the numbers are fudged, 288 00:17:55,840 --> 00:17:58,359 Speaker 1: and we know that it's way higher than that anyway. 289 00:17:58,480 --> 00:18:02,760 Speaker 1: I mean, it's getting famous rappers like Cardie B concerned 290 00:18:02,760 --> 00:18:05,120 Speaker 1: when she goes to the grocery store and making videos. 291 00:18:05,119 --> 00:18:09,600 Speaker 1: If the rappers are feeling the heat of the economy, obviously, 292 00:18:09,760 --> 00:18:12,320 Speaker 1: think about what that's doing to the average American. But 293 00:18:12,600 --> 00:18:13,960 Speaker 1: they're going to sell it to you. They're going to 294 00:18:14,000 --> 00:18:16,600 Speaker 1: sell it to you. Everything's great, everything's coming down, it's 295 00:18:16,640 --> 00:18:20,720 Speaker 1: all under control. But what it's doing, it's wrecking a 296 00:18:21,000 --> 00:18:25,040 Speaker 1: personal balance sheets. Is a going to be a personal recession. 297 00:18:25,520 --> 00:18:29,400 Speaker 1: People are burning their savings, they're taking on debts, they 298 00:18:29,400 --> 00:18:33,240 Speaker 1: are killing their wealth to keep up with the stupidity 299 00:18:33,280 --> 00:18:36,480 Speaker 1: of the Federal Reserve and the government. And then by 300 00:18:36,480 --> 00:18:39,440 Speaker 1: the time we get to the next boom cycle, they're 301 00:18:39,480 --> 00:18:41,840 Speaker 1: going to have no wealth left and not be able 302 00:18:41,840 --> 00:18:44,439 Speaker 1: to take advantage of that. And all of that is 303 00:18:44,480 --> 00:18:47,600 Speaker 1: going to go to the wealthy and they already well connected, 304 00:18:47,840 --> 00:18:50,119 Speaker 1: and this is all part of the plan. And Jesse, 305 00:18:50,480 --> 00:18:53,200 Speaker 1: not to say that I might be writing a book 306 00:18:53,240 --> 00:18:56,639 Speaker 1: on this and how you can fight back about it, 307 00:18:56,680 --> 00:18:58,960 Speaker 1: and not say if I were that you would be 308 00:18:59,200 --> 00:19:03,160 Speaker 1: included it. But if I were, which is probably not happening, 309 00:19:03,160 --> 00:19:05,560 Speaker 1: if you go to Carol Roth dot com forward slash 310 00:19:05,680 --> 00:19:08,400 Speaker 1: nothing and ot H I n G, you can sign 311 00:19:08,480 --> 00:19:10,000 Speaker 1: up to find out about it. But this is all 312 00:19:10,080 --> 00:19:17,160 Speaker 1: very theoretical. Carol Roth dot com forward slash nothing. Hey, everybody, 313 00:19:17,160 --> 00:19:19,560 Speaker 1: there's nothing to see there. Don't don't go to that link, 314 00:19:19,600 --> 00:19:23,360 Speaker 1: all right, Carol Roth dot com slash nothing, Carol, thank you, ma'am. 315 00:19:24,520 --> 00:19:31,480 Speaker 1: It's been nothing. Jesse, yes, ma'am. That's always all right. 316 00:19:31,480 --> 00:19:50,640 Speaker 1: We got more economy talk with a great John Carney next. 317 00:19:50,680 --> 00:19:53,439 Speaker 1: I don't think anyone knows whether we're going to have 318 00:19:53,560 --> 00:19:56,080 Speaker 1: a recession or not, and if we do, whether it's 319 00:19:56,119 --> 00:19:58,240 Speaker 1: going to be a deep one or not. It's just 320 00:19:58,400 --> 00:20:05,400 Speaker 1: it's not noable. I'll be interesting interested to hear John 321 00:20:05,440 --> 00:20:08,600 Speaker 1: Carney's thoughts on that. Joining me now, Brybart News Finance 322 00:20:08,640 --> 00:20:12,879 Speaker 1: and economics reporter John Well One, we already had a 323 00:20:12,880 --> 00:20:17,200 Speaker 1: little recession, but two. I see one coming a mile away. 324 00:20:17,440 --> 00:20:20,360 Speaker 1: You're the economics expert. What do you see. Yeah, We're 325 00:20:20,359 --> 00:20:24,160 Speaker 1: gonna have a recession. J Powell is. I mean, look, 326 00:20:24,200 --> 00:20:26,200 Speaker 1: I get it. He doesn't want to tell everybody, yes, 327 00:20:26,359 --> 00:20:29,200 Speaker 1: we're definitely headed for a recession, because when the Federal 328 00:20:29,240 --> 00:20:32,160 Speaker 1: Reserve says that, it freaks people out. So he wants 329 00:20:32,160 --> 00:20:37,400 Speaker 1: to downplay the possibility, or I would say the definite 330 00:20:38,200 --> 00:20:41,719 Speaker 1: probability that we are going to have a recession. So 331 00:20:41,760 --> 00:20:43,920 Speaker 1: he's downplaying it a bit. He's not being too shy 332 00:20:43,960 --> 00:20:47,440 Speaker 1: about it. If you listen closely, he's saying, we're probably 333 00:20:47,480 --> 00:20:49,880 Speaker 1: headed for a recession. Nobody can tell you definitely we are. 334 00:20:50,359 --> 00:20:52,600 Speaker 1: But look, we just got a whole bunch of economic 335 00:20:52,680 --> 00:20:58,760 Speaker 1: data in about industrial production. The Philadelphia Fed, the New 336 00:20:58,840 --> 00:21:03,280 Speaker 1: York Fed all say that manufacturing is a contraction, the 337 00:21:03,359 --> 00:21:06,760 Speaker 1: housing market is in contraction. We will have a recession. 338 00:21:07,160 --> 00:21:09,679 Speaker 1: The only question in my mind is when does it 339 00:21:09,760 --> 00:21:12,240 Speaker 1: happen in the first half of this year, in the 340 00:21:12,280 --> 00:21:14,719 Speaker 1: middle of the year, or in the back half. I 341 00:21:14,800 --> 00:21:17,760 Speaker 1: used to be in the back half category. I thought, look, 342 00:21:17,800 --> 00:21:21,200 Speaker 1: employment is going very strong. I'm now not a certain 343 00:21:21,200 --> 00:21:23,399 Speaker 1: I don't think we'll ever recession in the first quarter 344 00:21:24,240 --> 00:21:27,480 Speaker 1: because employment is still very strong, but we are going 345 00:21:27,520 --> 00:21:33,600 Speaker 1: to have a recession probably sometime later this year. Oh gosh, okay, 346 00:21:34,240 --> 00:21:36,400 Speaker 1: can you expand a little bit on what you said 347 00:21:36,560 --> 00:21:40,280 Speaker 1: manufacturings in contraction and you bring up homebuilders. Now, I 348 00:21:40,320 --> 00:21:42,320 Speaker 1: was reading some stuff about this this morning, but I'd 349 00:21:42,400 --> 00:21:45,359 Speaker 1: rather you do it in your own words. What one, 350 00:21:45,640 --> 00:21:48,040 Speaker 1: what's happening with homebuilders? And two? Why should we care? 351 00:21:48,840 --> 00:21:53,840 Speaker 1: Absolutely so. Homebuilding is a major source of jobs in America, 352 00:21:53,880 --> 00:21:56,240 Speaker 1: and it's also a reflection of what's happening in the 353 00:21:56,240 --> 00:21:58,199 Speaker 1: rest of the economy. When people feel like they can 354 00:21:58,240 --> 00:22:01,760 Speaker 1: afford homes, what interest rates are too, then home building 355 00:22:01,840 --> 00:22:04,720 Speaker 1: usually does very well. And it is not just a 356 00:22:04,840 --> 00:22:07,760 Speaker 1: driver of jobs to build the homes themselves, which it 357 00:22:07,920 --> 00:22:11,359 Speaker 1: is and involves a whole bunch of levels of skill 358 00:22:11,359 --> 00:22:14,159 Speaker 1: of labor. So you have electricians and plumbers, and then 359 00:22:14,200 --> 00:22:16,680 Speaker 1: you have people whose job it is to dig the hole, right, 360 00:22:16,720 --> 00:22:19,560 Speaker 1: And so this is a great source of employment in 361 00:22:19,600 --> 00:22:22,879 Speaker 1: the United States, but it also creates economic opportunity for 362 00:22:22,920 --> 00:22:24,840 Speaker 1: a lot of other things. When you build a home, 363 00:22:25,040 --> 00:22:27,200 Speaker 1: you have to fill it with appliances, so that means 364 00:22:27,400 --> 00:22:30,560 Speaker 1: people who make appliances are working. People who deliver appliances 365 00:22:30,600 --> 00:22:32,960 Speaker 1: are working. A lot of times. When people buy a 366 00:22:33,000 --> 00:22:35,080 Speaker 1: brand new home, they also buy a car to go 367 00:22:35,119 --> 00:22:37,680 Speaker 1: in their brand new garage. That might see weird, but 368 00:22:37,800 --> 00:22:41,040 Speaker 1: that there is a correlation between home buying and people 369 00:22:41,080 --> 00:22:44,440 Speaker 1: buying cars. So there's a whole lot of economic activity 370 00:22:44,480 --> 00:22:48,280 Speaker 1: association associated with the home building and high interest rates 371 00:22:48,640 --> 00:22:53,280 Speaker 1: kill home buying altogether. And it is really hurting the 372 00:22:53,320 --> 00:22:56,719 Speaker 1: home builders right now because when you interest rates are 373 00:22:56,800 --> 00:22:59,040 Speaker 1: three percent, a lot of people can afford a home 374 00:22:59,480 --> 00:23:02,280 Speaker 1: when they're up. But seven percent, your monthly big on 375 00:23:02,359 --> 00:23:05,520 Speaker 1: that mortgage is a lot higher, and people either need 376 00:23:05,560 --> 00:23:08,160 Speaker 1: a much smaller home or a lot of them will 377 00:23:08,200 --> 00:23:10,400 Speaker 1: just say, you know what, I don't want to pay 378 00:23:10,440 --> 00:23:13,040 Speaker 1: that much for a house every month. I'm going to 379 00:23:13,119 --> 00:23:17,560 Speaker 1: hold back. John, can you help me understand something? And 380 00:23:17,560 --> 00:23:19,680 Speaker 1: I realize this is a stupid question, but I think 381 00:23:19,680 --> 00:23:23,480 Speaker 1: it helps people. Let's say my mortgage is two thousand 382 00:23:23,480 --> 00:23:26,439 Speaker 1: dollars a month when I'm paying three percent, all right, 383 00:23:26,440 --> 00:23:30,679 Speaker 1: so it goes to seven what's my mortgage become? Roughly? 384 00:23:30,720 --> 00:23:35,720 Speaker 1: I know this it's going to do. I mean, because 385 00:23:36,880 --> 00:23:38,920 Speaker 1: unless you have some sort of funky mortgage, which I 386 00:23:38,920 --> 00:23:41,720 Speaker 1: will advise everybody don't get one of these mortgages where 387 00:23:41,720 --> 00:23:44,199 Speaker 1: you're not actually paying some of the principle and some 388 00:23:44,280 --> 00:23:47,200 Speaker 1: of the interest. Every month. When the interest rate goes up, 389 00:23:47,680 --> 00:23:51,760 Speaker 1: the interest rate portion of your monthly payment goes up, 390 00:23:52,080 --> 00:23:55,000 Speaker 1: and so and while the principle might stay the same, 391 00:23:55,080 --> 00:23:57,959 Speaker 1: so it doesn't quite double, but it comes very close 392 00:23:58,040 --> 00:24:01,199 Speaker 1: to the interest rate portion, does you know, double, And 393 00:24:01,240 --> 00:24:03,520 Speaker 1: so you're paying a lot more. Right now, some people 394 00:24:03,560 --> 00:24:06,080 Speaker 1: are in a position where they own a home. They 395 00:24:06,200 --> 00:24:08,520 Speaker 1: might have retired, their kids might have grown up, and 396 00:24:08,520 --> 00:24:11,280 Speaker 1: they're thinking of moving into a smaller home. But if 397 00:24:11,320 --> 00:24:13,720 Speaker 1: they have a three percent mortgage, it might cost them 398 00:24:13,800 --> 00:24:17,359 Speaker 1: more to move into the smaller home and staying in 399 00:24:17,400 --> 00:24:19,679 Speaker 1: the big home. And what does that do. It paralyzes 400 00:24:19,760 --> 00:24:23,440 Speaker 1: the market because people who would be sellers of, say, 401 00:24:23,600 --> 00:24:26,880 Speaker 1: you know, bigger family homes aren't selling to people who 402 00:24:26,920 --> 00:24:30,240 Speaker 1: want those homes. That drives prices up, which makes homes 403 00:24:30,280 --> 00:24:33,359 Speaker 1: even less supportable. And that's basically the situation we're in 404 00:24:33,480 --> 00:24:39,639 Speaker 1: right now. Good grief. Okay, sorry about all the nerdy details, 405 00:24:39,640 --> 00:24:45,040 Speaker 1: but I find this stuff fascinating. Manufacturing contracting, Now, that 406 00:24:45,080 --> 00:24:48,000 Speaker 1: can't all be tied to home builders. Why is manufacturing 407 00:24:48,080 --> 00:24:53,000 Speaker 1: contracting right? So what a couple of reasons. One, interest 408 00:24:53,040 --> 00:24:57,639 Speaker 1: rates are high and that has made people start, you 409 00:24:57,680 --> 00:24:59,480 Speaker 1: know how they have to pay more for mortgages when 410 00:24:59,480 --> 00:25:02,560 Speaker 1: they have them. It is not unrelated dialogic. But also 411 00:25:02,760 --> 00:25:05,720 Speaker 1: there's been a huge shift in buying that's been going 412 00:25:05,760 --> 00:25:08,520 Speaker 1: on for a while now, where we bought a lot 413 00:25:08,600 --> 00:25:12,200 Speaker 1: of goods during the pandemic when we were locked in 414 00:25:12,240 --> 00:25:15,879 Speaker 1: our homes. People bought, you know, exercise bikes, people you know, 415 00:25:16,359 --> 00:25:19,040 Speaker 1: got new you know, redid their kitchen. A lot of 416 00:25:19,080 --> 00:25:24,119 Speaker 1: manufactured goods were in high demand during the pandemic and 417 00:25:24,320 --> 00:25:27,080 Speaker 1: the reopening. We're now shifting back to a kind of 418 00:25:27,119 --> 00:25:30,160 Speaker 1: more normal spending pattern. And one of the things that 419 00:25:30,200 --> 00:25:35,359 Speaker 1: means is that there's just a lower demand for manufactured goods, 420 00:25:35,600 --> 00:25:38,040 Speaker 1: both in the United States and around the world. And 421 00:25:38,080 --> 00:25:42,360 Speaker 1: so what's happen So we're seeing both in November and December, 422 00:25:42,960 --> 00:25:47,040 Speaker 1: manufacturing output shrank in the United States, meaning factories in 423 00:25:47,080 --> 00:25:51,720 Speaker 1: the US produced fewer manufactured goods, and in certain areas 424 00:25:51,800 --> 00:25:55,520 Speaker 1: like the Philadelphia area which includes Delaware, part of West Virginia, 425 00:25:55,880 --> 00:26:00,720 Speaker 1: part of part of Sorry doc part of Jersey, and 426 00:26:00,760 --> 00:26:06,320 Speaker 1: part of Pennsylvania. This the Philadelphia set Fen since manufacturing 427 00:26:06,320 --> 00:26:09,479 Speaker 1: in that area has been in contraction for seven months, 428 00:26:09,800 --> 00:26:12,960 Speaker 1: so we are really seeing who maufactory of the United 429 00:26:12,960 --> 00:26:17,760 Speaker 1: States shrink. And the question is, you know, as my 430 00:26:17,760 --> 00:26:20,720 Speaker 1: friend Larry Cudlow, who works for another debtwork, likes to say, 431 00:26:21,720 --> 00:26:25,240 Speaker 1: if you're not making stuff, you can't be consuming stuff. 432 00:26:25,280 --> 00:26:30,040 Speaker 1: So this manufacturing contraction means that eventually we're going to 433 00:26:30,119 --> 00:26:33,320 Speaker 1: have to start to pull back on consumers spending, and 434 00:26:33,400 --> 00:26:37,560 Speaker 1: probably employment's going to have to fall as well. Thang, 435 00:26:38,440 --> 00:26:41,920 Speaker 1: all right now, I'm want to talk about black Rock 436 00:26:42,000 --> 00:26:44,840 Speaker 1: and ESG and things like that for a moment because 437 00:26:44,920 --> 00:26:48,320 Speaker 1: Larry Fink right now is starting to become I'm grateful 438 00:26:48,359 --> 00:26:50,959 Speaker 1: for this, a more public figure. People are waking up 439 00:26:51,000 --> 00:26:55,520 Speaker 1: slowly to all this. Well, anyway, here's Larry Fink. How 440 00:26:55,600 --> 00:26:59,679 Speaker 1: much has the political backlash? Thank you to ESG, investing 441 00:26:59,720 --> 00:27:03,040 Speaker 1: head and black Rock. I'm taking this area seriously. We 442 00:27:03,119 --> 00:27:09,080 Speaker 1: are trying to address the misconceptions it is. It's hard 443 00:27:10,080 --> 00:27:12,680 Speaker 1: because it's not it's not business anywhere. They're doing it 444 00:27:12,760 --> 00:27:14,840 Speaker 1: in a personal way, and in the first time in 445 00:27:14,920 --> 00:27:21,959 Speaker 1: my professional career, attackment out personal um they're trying to 446 00:27:22,600 --> 00:27:29,600 Speaker 1: demonize issues. If we personally attacked that guy who's trying 447 00:27:29,600 --> 00:27:32,119 Speaker 1: to destroy our way of life. Anyway, John, could you 448 00:27:32,160 --> 00:27:35,240 Speaker 1: please explain what ESG is and what's black Rock? I've 449 00:27:35,240 --> 00:27:37,959 Speaker 1: never heard of these guys. Sure, black Rock is the 450 00:27:38,040 --> 00:27:42,359 Speaker 1: biggest asset manager in the world. They manage trillions of 451 00:27:42,440 --> 00:27:47,399 Speaker 1: dollars of retirement assets for pen for public patron funds 452 00:27:47,440 --> 00:27:50,320 Speaker 1: like a lot of teachers funds. State patron funds give 453 00:27:50,400 --> 00:27:52,800 Speaker 1: money to black Rock. A lot of state governments have 454 00:27:53,080 --> 00:27:55,399 Speaker 1: accounts with black Rock where they have some money and 455 00:27:55,440 --> 00:27:57,960 Speaker 1: they're trying to earn some interest on it. So black 456 00:27:58,080 --> 00:28:01,040 Speaker 1: Rock is a giant in the investor world. If you 457 00:28:01,080 --> 00:28:04,000 Speaker 1: look at the largest holders of a lot of stock, 458 00:28:04,520 --> 00:28:07,520 Speaker 1: you'll see that it's black Rock or a fund managed 459 00:28:07,560 --> 00:28:10,439 Speaker 1: by black Rock that is the biggest holder of many 460 00:28:10,560 --> 00:28:15,120 Speaker 1: of the Fortune five hundred companies. So black Rock got 461 00:28:15,160 --> 00:28:18,680 Speaker 1: really enthusiastic about a style of investing known as ESG, 462 00:28:19,480 --> 00:28:23,760 Speaker 1: which stands for Environmental, Social and Governance. What this meant 463 00:28:23,880 --> 00:28:27,000 Speaker 1: was the governance part was, you know, there are certain 464 00:28:27,040 --> 00:28:30,040 Speaker 1: things that certain people think are good governance, you know, 465 00:28:30,240 --> 00:28:33,600 Speaker 1: allowing shareholders a good way to vote on issues, not 466 00:28:33,720 --> 00:28:37,840 Speaker 1: having dual class stocks. That's okay, that's been around for 467 00:28:37,880 --> 00:28:42,040 Speaker 1: a long time. Worried about governance. The social aspect is 468 00:28:42,200 --> 00:28:45,840 Speaker 1: new and really in the last decade, i'd say them 469 00:28:45,960 --> 00:28:49,800 Speaker 1: mental aspect has almost come to dominate ESG investing, and 470 00:28:49,880 --> 00:28:52,520 Speaker 1: what it is is basically pushing a left wing climate 471 00:28:52,600 --> 00:28:57,040 Speaker 1: change agenda on corporate America, trying to pressure corporate America. 472 00:28:57,080 --> 00:28:59,320 Speaker 1: Because remember, black Rock is the biggest shareholder. So when 473 00:28:59,320 --> 00:29:02,560 Speaker 1: black Rock said we want you to be carbon neutral, 474 00:29:03,200 --> 00:29:05,640 Speaker 1: companies say yes, sir, right, They jumped to it because 475 00:29:05,680 --> 00:29:09,880 Speaker 1: they don't want Blackrock either selling shares of their company 476 00:29:10,120 --> 00:29:14,480 Speaker 1: or voting on proxies against the board of against the 477 00:29:14,480 --> 00:29:17,840 Speaker 1: board of directors of a company. So this has become 478 00:29:17,880 --> 00:29:20,720 Speaker 1: a very big thing. It's one of the reasons why 479 00:29:20,880 --> 00:29:26,200 Speaker 1: investment in energy infrastructure and particularly oil and gas extraction 480 00:29:26,280 --> 00:29:29,480 Speaker 1: in the US has been so low because so much 481 00:29:29,520 --> 00:29:34,440 Speaker 1: money has poured into ESG strategies that try to avoid 482 00:29:34,560 --> 00:29:39,440 Speaker 1: investing in fossil fuels. So basically what he's saying is, look, 483 00:29:39,920 --> 00:29:42,800 Speaker 1: I was part of the war on fossil fuels, and 484 00:29:42,840 --> 00:29:45,840 Speaker 1: I can't believe people have the temerity to get angry 485 00:29:45,880 --> 00:29:48,800 Speaker 1: at me. He's been pushing this for years, and I 486 00:29:48,960 --> 00:29:52,080 Speaker 1: think he is trying to back up, maybe one because 487 00:29:52,400 --> 00:29:55,000 Speaker 1: it actually ended up with a lot worse effects than 488 00:29:55,040 --> 00:29:57,320 Speaker 1: he thought it would. And then I think he's also 489 00:29:57,360 --> 00:30:02,160 Speaker 1: worried about the back line. John Carney, go read this stuff. 490 00:30:02,200 --> 00:30:08,720 Speaker 1: I appreciate you, John, thanks for having me all the great. 491 00:30:08,840 --> 00:31:14,920 Speaker 1: Dave Bratt joins us next. I don't know what that means. 492 00:31:15,440 --> 00:31:18,960 Speaker 1: Joining me now my friend Dave brad former congressman, current 493 00:31:19,480 --> 00:31:22,960 Speaker 1: Dean of Business at the Great Liberty University. Dave, I 494 00:31:23,000 --> 00:31:25,200 Speaker 1: went to community college. There's a lot of green and 495 00:31:25,280 --> 00:31:28,240 Speaker 1: a lot of red. Everything started going up this way 496 00:31:28,360 --> 00:31:30,800 Speaker 1: in the nineteen hundreds. What am I looking at, Dave? 497 00:31:30,880 --> 00:31:32,560 Speaker 1: That didn't look like crayons to me? I don't I 498 00:31:32,600 --> 00:31:37,560 Speaker 1: don't understand all this. Yeah, I cannot recommend this site 499 00:31:37,760 --> 00:31:43,680 Speaker 1: that it's called gap minder Gap. All of homeschool parents, educators, 500 00:31:43,720 --> 00:31:46,920 Speaker 1: kids who care by economics, go go google this thing. 501 00:31:47,680 --> 00:31:50,160 Speaker 1: You can have all the countries. I see your crew 502 00:31:50,240 --> 00:31:53,120 Speaker 1: got advanced and just highlighted the US and China. So 503 00:31:53,280 --> 00:31:58,040 Speaker 1: China's the red, US is the green. The significance of 504 00:31:58,080 --> 00:32:02,240 Speaker 1: this is economic grow in the modern world started at 505 00:32:02,320 --> 00:32:06,200 Speaker 1: eighteen hundred. That in itself is a big deal. So 506 00:32:06,520 --> 00:32:10,480 Speaker 1: no economic growth prior to that, everybody on earth, no 507 00:32:10,520 --> 00:32:14,120 Speaker 1: matter what's your culture, country economic system, made a thousand 508 00:32:14,200 --> 00:32:17,760 Speaker 1: dollars a year to live on. Period. Okay, then at 509 00:32:17,800 --> 00:32:21,160 Speaker 1: eighteen hundred, yet you start getting Adam Smith. Free markets. 510 00:32:21,440 --> 00:32:26,160 Speaker 1: Countries choose the free market system. That's the main ingredient. 511 00:32:26,200 --> 00:32:29,200 Speaker 1: If you choose. There's always been markets, right, the Hebrew 512 00:32:29,240 --> 00:32:32,240 Speaker 1: Bibles got markets. The Greek Agora was a market. But 513 00:32:32,360 --> 00:32:36,360 Speaker 1: that doesn't get you major economic growth. You have to 514 00:32:36,480 --> 00:32:39,600 Speaker 1: choose to use the free market system. So you see 515 00:32:39,720 --> 00:32:42,720 Speaker 1: right there again over their nineteen thirty right, the US 516 00:32:42,880 --> 00:32:45,400 Speaker 1: is moving. We're getting richer. The further to the right 517 00:32:45,480 --> 00:32:48,479 Speaker 1: you go, the richer you are. So we end up, 518 00:32:48,520 --> 00:32:51,719 Speaker 1: you know, at sixty thousand dollars per capita. But the 519 00:32:51,760 --> 00:32:54,120 Speaker 1: story on this thing, and keep your eye on the ball, 520 00:32:54,680 --> 00:32:56,840 Speaker 1: and the only ball to watch, even if all the 521 00:32:56,840 --> 00:32:59,440 Speaker 1: other two hundred countries around here is that red ball, 522 00:32:59,560 --> 00:33:04,840 Speaker 1: right China. The higher you get is your life expectancy, 523 00:33:04,880 --> 00:33:07,760 Speaker 1: which just comes straight off of economic growth. If you 524 00:33:07,800 --> 00:33:10,680 Speaker 1: grow economically, you live longer, and you get all the 525 00:33:10,720 --> 00:33:14,240 Speaker 1: other benefits you get human rights and calorie intake and 526 00:33:14,400 --> 00:33:17,480 Speaker 1: years of education and all that. And so the point 527 00:33:17,480 --> 00:33:22,040 Speaker 1: of this is, if anybody thinks the Russia Ukraine War 528 00:33:22,840 --> 00:33:25,360 Speaker 1: is the major piece of Polace, you ought to be 529 00:33:25,400 --> 00:33:29,560 Speaker 1: paying attention to. This video shows you very clearly there's 530 00:33:29,920 --> 00:33:33,520 Speaker 1: Russia's nowhere near the China piece. And then if you 531 00:33:33,560 --> 00:33:36,560 Speaker 1: add I'll just go real quick a couple other little variables. 532 00:33:36,880 --> 00:33:41,280 Speaker 1: One is the percentage of industrialization. You'll see that China 533 00:33:41,440 --> 00:33:44,680 Speaker 1: is cleaning our clocks on that. You can fiddle with 534 00:33:44,720 --> 00:33:47,240 Speaker 1: that over on the vertical axis and change it from 535 00:33:47,960 --> 00:33:52,640 Speaker 1: population or age expectancy of for life expectancy, you can 536 00:33:52,720 --> 00:33:56,880 Speaker 1: change it to percentage of industrialization. You'll see the US 537 00:33:56,960 --> 00:34:00,680 Speaker 1: has gone down lately, all of Europe has crashed in China, 538 00:34:00,760 --> 00:34:04,240 Speaker 1: of course, is going up. Same thing with a percent 539 00:34:04,360 --> 00:34:08,400 Speaker 1: of capital investment, which is the number one driver of 540 00:34:08,440 --> 00:34:12,200 Speaker 1: economic growth. And you'll see China way up doing the 541 00:34:12,280 --> 00:34:17,239 Speaker 1: right thing, the US going down. Europe yellow countries if 542 00:34:17,280 --> 00:34:19,799 Speaker 1: you if you click on all the countries there, and 543 00:34:19,840 --> 00:34:23,640 Speaker 1: that's the way it comes loaded. They're in decline. And 544 00:34:24,000 --> 00:34:26,240 Speaker 1: I don't know if your guy's got the second graph 545 00:34:26,239 --> 00:34:28,160 Speaker 1: I sent over with a purple line at the top 546 00:34:28,280 --> 00:34:35,239 Speaker 1: the chart that's got some environmental economic stuff on there. 547 00:34:35,239 --> 00:34:36,920 Speaker 1: If they had that, they can pop that up. But 548 00:34:37,000 --> 00:34:40,120 Speaker 1: right now Davos is going on and they're all selling 549 00:34:40,120 --> 00:34:43,720 Speaker 1: the green economy. There's another chart that shows the green 550 00:34:43,760 --> 00:34:48,080 Speaker 1: economy in Europe has overtaken the size of the overall 551 00:34:48,120 --> 00:34:52,560 Speaker 1: economy in the European countries. That's the social choice they've made, 552 00:34:52,840 --> 00:34:56,000 Speaker 1: so they haven't chosen the free market system. And then, 553 00:34:56,040 --> 00:34:59,640 Speaker 1: of course the irony of ironies is the poor countries 554 00:34:59,719 --> 00:35:02,560 Speaker 1: can't afford to be green, so the only countries that 555 00:35:02,600 --> 00:35:05,640 Speaker 1: matter for the environment are China and South America, etc. Right, 556 00:35:06,480 --> 00:35:10,120 Speaker 1: if you give them a choice between subsistence food, right, 557 00:35:10,160 --> 00:35:13,719 Speaker 1: like beating your kids so they don't die so they 558 00:35:13,719 --> 00:35:17,680 Speaker 1: have basic nutrition or being green, let me tell you 559 00:35:17,719 --> 00:35:21,200 Speaker 1: what button they're gonna push when they vote. And so 560 00:35:21,360 --> 00:35:23,799 Speaker 1: all the Diavos folks are over there, and it takes 561 00:35:23,840 --> 00:35:26,319 Speaker 1: about an eighth grade education to figure this stuff out. 562 00:35:26,440 --> 00:35:29,879 Speaker 1: Right on the environment. If you don't get China to cooperate, 563 00:35:30,239 --> 00:35:34,000 Speaker 1: which they won't because they need to survive, that ain't 564 00:35:34,040 --> 00:35:37,719 Speaker 1: gonna happen. So that it just almost proves the Divos 565 00:35:37,760 --> 00:35:42,280 Speaker 1: green pieces a ruse for them to gain huge wealth. 566 00:35:42,880 --> 00:35:44,960 Speaker 1: And so the I think most people that are following 567 00:35:45,000 --> 00:35:48,720 Speaker 1: your show also know the Russia Ukraine piece. The Ukraine 568 00:35:48,719 --> 00:35:53,080 Speaker 1: has been used as a monetary dumping ground to hide money, 569 00:35:53,160 --> 00:35:55,600 Speaker 1: and the proof of that is they won't audit the 570 00:35:55,760 --> 00:36:00,920 Speaker 1: hundred billion that US taxpayers have paid for that, while 571 00:36:00,920 --> 00:36:05,640 Speaker 1: the Europeans in their backyard have spent barely anything on 572 00:36:06,560 --> 00:36:10,640 Speaker 1: that war. So there's a brief summary, and you let 573 00:36:10,640 --> 00:36:14,520 Speaker 1: me have it. What I did not explain properly? No, 574 00:36:15,000 --> 00:36:18,160 Speaker 1: that's you explained it pretty well, Dave. I do have 575 00:36:18,200 --> 00:36:20,880 Speaker 1: to ask, as we watched that eye popping chart and 576 00:36:20,960 --> 00:36:23,239 Speaker 1: all of a sudden the red starts to jet to 577 00:36:23,280 --> 00:36:27,040 Speaker 1: the right really hard, right, why what happened? Did they 578 00:36:27,360 --> 00:36:31,120 Speaker 1: discover a big pot of gold over there or something? Yeah, 579 00:36:31,160 --> 00:36:35,640 Speaker 1: well that's that what I said. The reason they didn't 580 00:36:35,680 --> 00:36:38,640 Speaker 1: take off an eighteen hundred is because they didn't choose 581 00:36:39,800 --> 00:36:42,759 Speaker 1: the free market system. It's a system you have to 582 00:36:42,840 --> 00:36:47,520 Speaker 1: choose that Adam Smith spelled out. Uh, we've always had 583 00:36:47,560 --> 00:36:49,920 Speaker 1: smart people. The Chinese are plenty smart. We've always had 584 00:36:49,920 --> 00:36:54,880 Speaker 1: trade shipping all that inventions, but that does not cause 585 00:36:55,360 --> 00:37:01,680 Speaker 1: economic growth. So what happened in nineteen seven the Chinese 586 00:37:01,760 --> 00:37:06,520 Speaker 1: finally chose the free market system, some market reforms, they 587 00:37:06,560 --> 00:37:10,920 Speaker 1: allowed it, you know, the UH. The Russians opened up politically. 588 00:37:11,000 --> 00:37:15,040 Speaker 1: The Chinese were wiser communists. They chose to open up 589 00:37:15,520 --> 00:37:20,920 Speaker 1: economically the markets and stayed totalitarian on the political front. Well, 590 00:37:21,200 --> 00:37:24,560 Speaker 1: that work, that'll work in the short run. It's Japan 591 00:37:24,600 --> 00:37:27,280 Speaker 1: taught us as well. Eventually they run out of steam 592 00:37:28,280 --> 00:37:30,520 Speaker 1: and at the UH. The reason that's going to end 593 00:37:30,600 --> 00:37:33,560 Speaker 1: is Shigipeg. About two months ago now, they had the 594 00:37:33,640 --> 00:37:40,560 Speaker 1: twentieth CCP meetings and they made three He made three 595 00:37:40,560 --> 00:37:44,600 Speaker 1: basic decisions. Number One, they're full on Marxist Leninist period 596 00:37:44,680 --> 00:37:51,800 Speaker 1: ideology will drive everything. Two, no more market reforms. There's 597 00:37:51,800 --> 00:37:53,440 Speaker 1: your big hint as to what's going to happen to 598 00:37:53,560 --> 00:37:56,799 Speaker 1: China in the next decade. And then three, they've moved 599 00:37:56,800 --> 00:38:00,920 Speaker 1: to a war footing. They got rid of all Chinese lingo, 600 00:38:01,800 --> 00:38:04,879 Speaker 1: which was good, right, There's some Buddhist wisdom that used 601 00:38:04,880 --> 00:38:09,000 Speaker 1: to be in their platform and some confusion lingo about 602 00:38:09,120 --> 00:38:13,040 Speaker 1: peace and harmony and reason and living together. They got 603 00:38:13,120 --> 00:38:15,360 Speaker 1: rid of all that and moved toward a war footing 604 00:38:15,440 --> 00:38:18,920 Speaker 1: language of tension. We will be at tension with the 605 00:38:19,000 --> 00:38:23,239 Speaker 1: world and get ready for struggle sessions. So China had 606 00:38:23,320 --> 00:38:26,000 Speaker 1: the secret formula. They were moving, but now they're going 607 00:38:26,080 --> 00:38:30,560 Speaker 1: to move in reverse, is my forecast. Why why go 608 00:38:30,640 --> 00:38:33,080 Speaker 1: in reverse? It's working, the chart is going to the right. 609 00:38:33,160 --> 00:38:39,840 Speaker 1: Why are you going to reverse? They Shigipang probably thinks 610 00:38:39,920 --> 00:38:42,359 Speaker 1: they got some hard times coming right there. People are 611 00:38:42,400 --> 00:38:45,719 Speaker 1: finally getting the internet. They can see what's going on, 612 00:38:46,000 --> 00:38:48,759 Speaker 1: the COVID crisis. He knew he had to lock everybody down. 613 00:38:49,280 --> 00:38:54,200 Speaker 1: You're seeing many revolutions across China. Now there's a Christian 614 00:38:54,280 --> 00:38:58,839 Speaker 1: underground church that's emerging. Everyone helse cell phones they can 615 00:38:58,880 --> 00:39:02,200 Speaker 1: talk to each other and so, and the US is 616 00:39:02,200 --> 00:39:04,840 Speaker 1: already starting to move against China. You can see he 617 00:39:05,120 --> 00:39:07,880 Speaker 1: knew it was coming. Even China, I mean even Biden 618 00:39:07,960 --> 00:39:11,279 Speaker 1: went harder on China than Trump did. And so we're 619 00:39:11,320 --> 00:39:13,839 Speaker 1: starting to make some moves. So he's going to try 620 00:39:13,880 --> 00:39:18,480 Speaker 1: to go internal and develop his own self sufficient, consumer driven, 621 00:39:19,200 --> 00:39:23,600 Speaker 1: demand driven economy. In the past, it's been all supply side, 622 00:39:24,280 --> 00:39:29,080 Speaker 1: which really worked quite well for them, supply side business investment, 623 00:39:29,160 --> 00:39:32,840 Speaker 1: and then trade and stealing all of our ideas and patents, 624 00:39:32,840 --> 00:39:36,359 Speaker 1: and everybody knows that stuff. And so he I think 625 00:39:36,360 --> 00:39:39,279 Speaker 1: he knows that game is probably coming to an end. 626 00:39:39,920 --> 00:39:42,839 Speaker 1: So he's got to get self sufficient in energy. That's 627 00:39:42,880 --> 00:39:45,960 Speaker 1: why he's buddying up with Russia right now. And so 628 00:39:46,000 --> 00:39:52,399 Speaker 1: that's a short, sweet answer. I hope gosh, tough times coming. 629 00:39:52,480 --> 00:39:56,040 Speaker 1: Dave Bratt, you're the best man. I appreciate you, love it. Thanks, Jesse, 630 00:39:56,160 --> 00:40:02,040 Speaker 1: great show. Get smarter when Dave joins us. You know 631 00:40:02,040 --> 00:40:04,840 Speaker 1: what else, we get smarter with me and my final 632 00:40:04,880 --> 00:40:23,200 Speaker 1: thoughts their next Let's keep in mind that we are 633 00:40:23,239 --> 00:40:26,640 Speaker 1: a tiny percent you me, We're the one percenters, the 634 00:40:26,640 --> 00:40:28,400 Speaker 1: tip of the spear or something like that, whatever you 635 00:40:28,400 --> 00:40:31,919 Speaker 1: want to call us. The economy is what so many 636 00:40:31,920 --> 00:40:34,839 Speaker 1: Americans vote on. It's what so many Americans focus on. 637 00:40:34,920 --> 00:40:38,600 Speaker 1: They focus on themselves, their mortgage, their wife, their kids, 638 00:40:38,640 --> 00:40:41,879 Speaker 1: their husband, their mom, their vacation, their clothes. And I'm 639 00:40:41,880 --> 00:40:44,080 Speaker 1: not saying that's a bad thing. That's just real life. 640 00:40:44,080 --> 00:40:46,160 Speaker 1: That's how normal people vote. They vote on the food 641 00:40:46,160 --> 00:40:48,759 Speaker 1: on the table, and it's really bad right now, and 642 00:40:48,800 --> 00:40:52,320 Speaker 1: it's getting worse. Maybe for final thoughts, maybe our final 643 00:40:52,360 --> 00:40:55,720 Speaker 1: thoughts should be this, Maybe we should have that conversation 644 00:40:55,840 --> 00:40:59,640 Speaker 1: with our normal neighbor who's not really political, who's having 645 00:40:59,640 --> 00:41:02,680 Speaker 1: some struggles, and appropriately, whenever we can fit it in 646 00:41:02,719 --> 00:41:05,480 Speaker 1: when it's appropriate. Don't be out of line. Maybe let 647 00:41:05,520 --> 00:41:11,680 Speaker 1: them know why things are so bad. We'll do it again. 648 00:41:20,360 --> 00:41:23,080 Speaker 1: Each morning, the President of the United States receives a 649 00:41:23,160 --> 00:41:26,680 Speaker 1: highly classified briefing on the most important issues facing the country. 650 00:41:27,000 --> 00:41:30,600 Speaker 1: It's called the President's Daily Brief, or PDB. It's delivered 651 00:41:30,600 --> 00:41:33,680 Speaker 1: by America's spies and analysts. Well, now you can hear 652 00:41:33,719 --> 00:41:36,799 Speaker 1: your very own PDB in the form of a podcast 653 00:41:36,840 --> 00:41:40,880 Speaker 1: hosted by me Brian Dean Wright, a former CIA operations officer. 654 00:41:41,239 --> 00:41:43,960 Speaker 1: Each morning at six am Eastern, I'll bring you fifteen 655 00:41:44,000 --> 00:41:46,640 Speaker 1: to twenty minutes of the most important issues facing the country, 656 00:41:47,000 --> 00:41:50,359 Speaker 1: giving you the critical intelligence and analysis you need to 657 00:41:50,400 --> 00:41:51,560 Speaker 1: start your morning.