On today's show, Stephen K. B. joins me to discuss the latest in the Trump 2020 campaign and why he thinks the next president will have to be a supply-side candidate. We also discuss the impact of Bernie Sanders on the economy and what it means for the economy in 2020 and beyond.
00:01:12.000Warren Buffett dropped a bomb at the Berkshire Hathaway.
00:01:16.000I think they're gathering in Omaha over the weekend where he said, hey, look, the political class does not have the courage, the fortitude to actually do what needs to be done here, which is to cut spending, massively cut spending.
00:01:31.000What's going to happen is you're going to have massive tax increases.
00:01:35.000Look, I agree with Buffett on one thing.
00:01:42.000If we don't act now, we're going to have to have massive tax increases.
00:01:46.000The reason I've come out from behind my desk and have gotten involved with the campaign and doing more media for economic commentary is I believe this is our last chance to have a supply-side solution.
00:02:01.000And, you know, Warren Buffett's not a supply-sider.
00:02:04.000He feeds off a lot of government tidbits and morsels.
00:02:13.000But, you know, if we could free non-defense discretionary spending and get the debt under control, send good signals to the market that that's the intention.
00:02:26.000And, you know, I do believe that this is Donald Trump's intention in Trump 2.0, you know, that when he wins, that we will see emphasis on the debt.
00:02:40.000But and that will bring inflation down if we get the spending under control, which there's no prospect under that, you know, for Biden administration.
00:02:49.000You know, as we speak now, Lael Brainard, head of the National Economic Council, is giving a seminar at Brookings outlining how big the tax increases are going to be.
00:03:02.000And, you know, Steve, if the Trump 2017 tax cuts are not extended in 2025, this will be the single biggest tax cut in U.S. history.
00:03:14.000So I disagree with Warren Buffett on the timing.
00:03:19.000You mean the biggest. Hang on. Hang on.
00:03:21.060You mean the biggest single tax increase. Tax increase.
00:03:25.760You're saying that. If President Trump in early and this is what I keep telling people, because we have basically a year now, you got to run up to November 5th, which we got to have a show of force and getting out votes and fighting all the way.
00:03:43.160They're going to try to seal it. Then between November 5th and January 20th, Mark Elias, Jamie Raskin.
00:03:49.340They're going to do everything so Trump can't actually take the office or in taking actually taking the president, assuming the office, he is smeared by them about his legitimacy in doing it.
00:04:00.980Then after that, you've got the day of January 20th. You've got to seal the border, mass deportations.
00:04:07.880You've got the kinetic war going on in Ukraine, Israel, the Red Sea.
00:04:13.940On top of that, his tax cuts come off, the 2017 tax cuts, which fueled the growth of 18 and 19, right?
00:04:25.260And see, non-inflationary growth, which right now you just said, hey, what they colluded to do ended up giving us, if we have growth at all coming out here, because, hey, the first quarter was only 1.6 percent and we added $800 billion in debt and only got $300 billion bump in GDP.
00:04:49.680So I actually see that's not that is stagflation.
00:04:54.380I'd actually argue you're already in a recession if you didn't have had this massive Keynesian stimulus.
00:04:59.000But your point is, with all this going on, if Trump doesn't isn't able to get his tax cuts reinitiated going forward, that in itself will be the single biggest tax increase in our country's history.
00:06:08.260There are all kinds of things, you know, there's we're going to we're going to move the capital gains taxes up.
00:06:17.240They may even try to tax the unrealized capital gains, which, you know, if you want to kill innovation in America, that's the real way to do it.
00:06:26.480So, you know, just letting just letting the Trump tax cuts expire, that's not enough revenues for their big spending plans.
00:06:53.820A guy that you would you would say know something about capital markets in the economy.
00:06:58.640Yeah. And 40 whatever years, Stan has never had a down year in the market.
00:07:03.500And, you know, I thought the power of his interview was it was it was unemotional.
00:07:09.600It was fact based. And, you know, he he's clearly upset with with what he's seeing.
00:07:17.140And, you know, again, with both Treasury and the Federal Reserve, those are risk management positions.
00:07:25.300And they are both increasing risk rather than mitigating risk.
00:07:31.520And Stan's been doing this longer than I have.
00:07:34.160But this is my 40th year in the business.
00:07:36.260And I can tell you what I'm seeing from the Biden administration led by Yellen is it's they've created this three body problem where the economy is running off asset inflation,
00:07:52.480which Jerome Powell got when he goose financial conditions.
00:08:00.120So, you know, stock market up house prices up, you know, high interest rates for those with cash.
00:08:08.560And, you know, way to think about it is there's about 18 trillion of consumer spending stock markets up since November, about 12 trillion.
00:08:18.260Probably house prices are up another trillion.
00:08:20.400Crypto is probably up a trillion, a trillion of interest income.
00:08:25.260And that's all accruing to the top 20 percent.
00:08:29.520You know, in the meantime, the bottom 50 is choking on debt.
00:08:34.820And so this three body problem is an economy based on asset price inflation.
00:08:41.100The asset price inflation is being held up by a 7 percent budget deficit that's keeping the economy going.
00:08:50.740And as you said, it looks like it might be sputtering a little.
00:08:54.000And then the fueling the deficit or the ability to run the deficit is treasury borrowing, which has been moved to the front end.
00:09:03.880So, you know, you've got this very unstable equilibrium between these three aspects.
00:09:13.280And again, I've only seen this in emerging markets in my career.
00:09:18.080No, it's a it's a you know, we're going to have Josh Hammer from Newsweek, one of the editors over there.
00:09:25.760He's going to be on the six o'clock show with me today.
00:09:28.840And and Josh has written one, a condemnation piece about the Uniparty last week.
00:09:34.840This week, he goes, what what has to happen to make this a banana republic?
00:09:41.240What you're saying is that just don't look at the judicial system.
00:09:45.100Just don't look at what's happening on our southern border.
00:09:47.060Don't look at all the other things that make us look like that we're being governed as a third world country.
00:09:52.600Just look at what's supposed to be the most risk mitigation, the probity, the capital markets.
00:09:57.440And what you're saying there as a student of this and an investor in this and somebody takes actions, what this government is doing right now very much follows what a developed nation, not the most advanced industrial democracy in the history of this country and the history of this world and the most advanced economy in world history should be doing and how they should be keeping their economic and financial house.
00:10:21.960It's actually at the same extreme as you see, you know, the the rule of law and the judicial system, the our sovereignty protected, our territory protected on this invasion.
00:10:32.440You're actually arguing, hey, don't forget this because this is just as bad now.
00:10:58.680But if this nonsense continues in 2028, there won't be.
00:11:04.020And, you know, Janet Yellen gave a highly inappropriate speech for a treasury secretary in Arizona on Friday, which, you know, she came out of her lane.
00:11:17.460And so, you know, I think she's now fair game in the political arena.
00:11:22.840And I have to say, I was shocked by Professor Yellen here.
00:11:26.660In 2021, in an economic journal, I called her a distinguished public servant.
00:11:33.660A distinguished public servant has now become a brutal political apparatchik.
00:11:39.260And for her to worry about the state of democracy and the economy, that, you know, I'm an economic historian.
00:11:51.760I am a market practitioner, so history and practice tell me that autocracies are bred through poor economic performance, whether the French Revolution, Russian Revolution, Weimar Germany.
00:12:07.860The other thing, too, is by making a speech like this, she hurts the credibility of the U.S. Treasury to further a political agenda.
00:12:17.760So anyone, a U.S. citizen or a foreign government, now knows that she values the election more than the full faith and credit of the U.S. government.
00:12:41.900You're kind of the voice of reason out there.
00:12:44.000And remember, in the audience, every time you hear that Trump wants to sow chaos, he's the vote of anarchy, all of that, just look at what his policies are.
00:12:53.840Look at how he was in 17, 18, 19, and even to 20 before the bioweapon totally impacted us.
00:13:03.700But then you look at the people running up, Scott Besson and others.
00:13:06.460Scott, where do people go to get more of your thinking and more of your writing?
00:13:10.100Yeah, if anybody has any questions or would like a follow-up, they can come to our firm email, which is ir at keysq.com.
00:13:35.500Okay, we really make it an important part of this show to understand money, understand capital markets, to get the very best thinkers here to explain this to you, because obviously you know in your gut something's wrong.
00:13:52.640Drunken Miller and Warren Buffett have eviscerated this administration.
00:13:59.900They've also eviscerated the cowards on Capitol Hill for not standing up to them, because this all could have been stood up to them.
00:14:06.160If you go back to the opening show, this is why I'm so angry about what we've allowed to happen, having the Republican House, because we had the power of the purse.
00:14:16.960The reason it has to come to an end, you just heard Scott's statistics, 50% of the country, 50% of your countrymen own no assets whatsoever.
00:14:25.180They just have debt, mainly credit card debt, short-term debt, okay?
00:14:29.140But from the 50% to the 88th percentile, it's not a whole lot better.
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00:19:27.160He's considered a bigger danger to democracy by 11%.
00:19:32.520This is just one of the things that Carvel is responding to.
00:19:39.860Because he's saying nothing they're working, including the lawfare, is not working.
00:19:46.460They have to come up with something else.
00:19:48.280This is why now, in this zone, between now and November 5th, this is why I kind of break it into three parts.
00:19:54.020We have to be not just massive get-out-the-vote, but on watch and more aggressive than ever and on point offensively about the stealing of the vote.
00:20:05.940Nothing they can do is stopping the ascendancy of MAGA.
00:20:10.480Nothing they are doing is stopping the ascendancy and the return of their mortal enemy, and that would be Donald John Trump.
00:27:00.400You've got a federal judge in Florida that stepped in and is going to put Jack Smith on trial at the end of June for a three-day evidentiary hearing.
00:27:08.440How did you guys all collude and work together on this?
00:27:11.220She's going to ask some tough questions.
00:27:12.680Okay, then you've got the appellate court in Georgia and the state court are stepping into what is supposed to be a criminal trial.
00:27:21.400And they want Fannie Willis to testify because the Georgia State Senate is not moving quickly enough.
00:29:44.320The wealthy and the poor countries in education.
00:29:47.920If you forecast out the transformation that we're going to see across all societies because of AI, robotics, sensor technology,
00:29:58.400the speed in which this change is going to occur,
00:30:01.220I can argue in the developed countries, the big winners are countries that have shrinking populations.
00:30:10.280But in my conversations with the leadership of these large developed countries that have xenophobic immigration policies,
00:30:20.540they don't allow anybody to come in, shrinking unemployment, excuse me, shrinking demographics,
00:30:28.220these countries will rapidly develop robotics and AI and technology.
00:30:36.300And the social problems that one will have in substituting humans for machines is going to be far easier in those countries that have declining populations.
00:30:48.140Sometimes when I'm down and all alone,
00:32:41.540You know, Steve, when that ad was first released a couple of days ago, everyone freaked out and was really offended.
00:32:51.640Now, I understand that emotion, but I think that I actually applaud it because what you see there is probably the most naked and honest depiction
00:33:01.020of exactly what's happening with the ongoing technological revolution.
00:33:06.460As you just described, you see legacy humanity, traditional humanity being obliterated and replaced with a new razor-thin device
00:33:17.620that will surely be underperforming and overpriced.
00:33:21.060You know, I mixed that with Larry Fink's recent appearance at the World Economic Forum in Riyadh, Saudi Arabia,
00:33:28.960where he is talking about how societies with shrinking populations will probably fare better
00:33:36.860during the greater replacement of human beings by AI and robots.
00:33:43.340And what's really interesting about the entirety of Larry Fink's talk there is that Fink, not unlike Jensen Wang at NVIDIA
00:33:55.820and many others, is talking about a kind of new model for what this fourth industrial revolution will look like.
00:34:03.800And it is really geared towards taking individual cultures, such as Anglo-Saxon culture or Germanic culture, Saudi Arabian culture, Chinese culture, so on and so forth,
00:34:17.540and compressing it using artificial intelligence to create these sort of AGI hubs that function in essence like the gods of polytheistic religions
00:34:30.460in which, say, you have Athena in the Acropolis representing the spirit of Athens.
00:34:36.580Now you will have AGIs across the planet that maintain some sense of national identity but completely digitize it.
00:34:46.440It will crush everything that came before and blend it together into some sort of new, bizarre, digitized, automated personality
00:34:56.540with which human beings will interact with.
00:34:59.000And this is an idea that's spreading across the board.
00:35:01.620So, yeah, I think the advertisement is brilliant in that it unearths, it exposes, it unmasks the complete destruction of everything that came before
00:35:14.820and the creation of something that is soulless and lifeless.
00:35:19.380I want to, we're going to play this again, and particularly for our podcast and our vast radio audience
00:35:26.200that don't get the visuals of the Real America's Voice and our streaming over at Getter and Rumble
00:35:32.600and all the other services that Real America's Voice has put us on.
00:35:35.780The image here is quite powerful, and this is why you should go and sign up totally free.
00:35:42.480You get a command, you get our daily email, which is the command center report that ties in all the show,
00:35:49.340all the different shows we do, the four hours we do during the day, all the different clips, the hits,
00:37:33.520This was the end product of a process that their minds at Apple thought, yeah, this says best what we want to reinvigorate people to go buy a new iPad.
00:37:46.780It is one of the scariest things I've ever seen put out there because they are saying the way we think is to crush human creativity, to actually crush it.
00:37:57.320And human creativity is all its imperfections because you've got musical instruments and you have books and you have toys.
00:38:04.480You have all these different paints and humanity is not perfect.
00:38:11.180It's imperfection is what the trying to work and become a craftsman and go through it is part of the process of humanity, of making oneself better, of the work on oneself.
00:38:24.320And this is what they think about this.
00:38:25.680If we can, if my production team in Denver, can we play the Apple ad one more time?
00:39:33.040Joe, how can, how can an entity that markets itself as there to help humanity, remember they had that whole thing with Albert Einstein and Gandhi and Martin Luther King.
00:39:46.040How can the mentality be now that what's of benefit to us is the crushing of humanity and particularly the crushing of the tools and instruments that allow man, that humans have created to work on themselves to try to perfect themselves through artistic endeavor.
00:40:05.700There's something profoundly dark in the creation of the personal computer.
00:40:11.640You know, a lot of the early Apple culture comes out of the hippie culture, right, driven by Timothy Leary, who aside from being a priest of psychedelia, pushed from the 60s onward this idea.
00:40:26.960As he said in the clip we played many, many months ago, even years ago, he said the electronics will be the language of the theology of the future.
00:40:38.340And Timothy Leary was very much an advocate of the personal computer and a kind of companion figure to Apple.
00:40:44.660And, you know, many of our anyone who's read Dark Eon, for instance, will know that the the the first Macintosh was sold for six hundred and sixty six dollars and sixty six cents.
00:40:57.640And if you see the Apple on the front of an Apple computer with the bite taken out, there's obviously a reference there to the Garden of Eden, to eating the fruit of the knowledge of good and evil.
00:41:11.600And I'll never forget going to the Apple Museum in Prague in Czech Republic.
00:41:17.240And on the front, there is a decal with a quote.
00:41:22.060And the quote is, three apples changed the world.
00:41:31.700And the third was offered half eaten to the world by Steve Jobs.
00:41:36.200There is something profoundly dark in the creation of these technologies because it absorbs the human personality.
00:41:45.180It absorbs the world, repackages it, compresses it and then redisseminates it according to the whims of the tech oligarchs, the governments that they have under their sway.
00:41:58.300And now people like Larry Fink and Jensen Wang and Tim Cook and Mark Zuckerberg and Elon Musk are determining the fate of humanity while we are supposed to just watch idly as the entirety of human history is being reorganized, refashioned and disseminated as a new digital future.
00:45:10.300Do not let these thieves steal your home in broad daylight.
00:45:15.360Okay, one of the great things that happened this week, I was able to address the Palm Beach Republican Club.
00:45:26.400And, you know, we had Eli Crane on talking about he had gone and given a talk in Payson about the response to about keeping Mike Johnson around.
00:46:42.460They have 8, 10, 12, 15 million illegal alien invaders.
00:46:47.060I'll be playing some clips tonight and also over the weekend of what's happening in New York City and some of the brutality that's being visited upon the citizens.
00:46:57.960As if life in New York City is not hard enough, they now have to have illegal alien invaders there to basically torment people and to rob people and to rape people.
00:47:08.480Because the Americans, they do not care about you and the great awakening for African-Americans, the great awakening for the Hispanic population, the great awakening of the Asian-Americans, the great awakening of people under 30 years old.
00:47:23.940You see this massive tectonic plate shift.
00:47:31.400They understand that the system is not only rigged against them, the system is purposely rigged against them and going to remain even more rigged.
00:47:40.720Look at what Scott Besson said about capital markets.
00:47:43.820The top couple of percentages own not just the vast majority, 88 percent, 88 percent of the of the equities in the country.
00:47:55.700The mass, the Keynesian overspending, this this incredible stimulus we're putting into the economy to prop up the Biden regime is working for them.
00:48:08.700But eventually you have to pay for that.
00:48:12.060Warren Buffett's no fan of the war room.
00:48:14.880He's no fan of Steve Bannon or Donald Trump or MAGA.
00:48:18.600He's a liberal Democrat and he dropped the bomb.
00:48:21.260Hey, the political class, you've got to step up here and start to get control of this spending and actually start to have massive cuts or massive tax increases are coming.
00:48:33.280They know that the Biden regime, the Trump tax cuts reverting and coming off right now, they're over Brookings.
00:48:40.960They're talking about the largest tax increase ever.
00:48:43.920So if you don't want your taxes to go up, let me give you some simple advice.
00:48:47.480When you're getting in the grill of the 196 that voted to support Johnson, those people are supporting massive spending and massive deficits when they had every opportunity by the Constitution, the power of the purse to stop it.
00:49:07.060And they did not stop it because the wolves of K Street, as Brody Mullins, the investigative reporter of the Wall Street Journal, details in his book, own them, lock, stock and barrel.
00:49:33.740In five o'clock, I'm going to go to the courthouse, hopefully Boris, where we're going to break down why and how you can actually stop the vast criminal conspiracy against President Trump.
00:50:19.820Why would a Democrat, okay, why would a Democrat, particularly one of these Democrats up in Minnesota, why would a Democrat ever vote for President Trump?
00:50:27.580Well, because they remember December of 2019, Steve, how great the economy was.
00:50:33.320It was the highest consumer confidence in history.
00:50:59.540We're going to be doing videos and all kinds of stuff with them.
00:51:02.640And they're willing to flip because they know that the decisions that were made that manifested December of 2019 were great decisions that helped all people.
00:51:14.320Just like these decisions are helping nobody.