Biden has his showdown with Vladimir Putin, and it doesn t go well. The Federal Reserve dramatically increases its inflation estimate, and the left celebrates Juneteenth becoming a national holiday by decrying America s supposedly unending racism. Today s show is sponsored by ExpressVPN. Don t let big tech track what you do - anonymize your web browsing at expressvpn.co/anonymizeyourwebbrowsing at ExpressVPN to protect your online privacy today! Use the promo code: "ExpressVPN" to get 3 extra months for FREE. That's E-XP-R-E-S-V-P-N-D-O-T-C N to learn more about ExpressVPN and how you can protect your privacy online. It s really, really easy to use - you hit one button on your phone once you have installed it, and then once it s installed, you re protected. Use my link at expressVPN.com/ProtectYourData to get three extra months of ExpressVPN for FREE! Ben Shapiro is a writer, comedian, and podcaster. His work has been featured in the New York Times, NPR, CBS Radio, and other publications. His music has been heard on radio stations across the country, including Sirius XM, and his music is available on SoundCloud. His music is also available on iTunes and other streaming platforms. If you like what you hear, please consider becoming a patron of his music streaming service, Ben Shapiro's Workplace by going to gimlet.me/BenShapiro and Subscribe to his podcast, BenShapin. . Ben is a regular contributor on the Ben Shapiro Podcasts podcast, and he also writes a book called "Ben Shapiro's New Book" out now out now, out on amazon. and is available in Kindle, iBook, Paperback and paperback, and also on Audible, and Audible. Subscribe to Ben Shapiro s newest podcast, The Vagabond, The Best Fiend, which is out now. Ben's newest book is out in paperback edition is out on Amazon Prime, out now! and also out on Vimeo, coming soon on Dec. 19th, so you can get a copy of his newest novel, "The Devil Next Door" out in January 2020, out in February 2020, and all other places he's listening to it on the road?
00:00:00.000President Biden has his showdown with Vladimir Putin, and it doesn't go great.
00:00:04.000The Federal Reserve dramatically increases its inflation estimate, and the left celebrates Juneteenth becoming a national holiday by decrying America's supposedly unending racism.
00:01:13.000ExpressVPN is an app that encrypts all your network data and reroutes it through a network of secure servers so your private online activity stays just that, private.
00:01:39.000That's E-X-P-R-E-S-S-V-P-N-D-O-T-C-O-M-S-L-A-S-H-P-E-N to learn more.
00:01:43.000Alrighty, so yesterday was Joe Biden's big face-off with Vladimir Putin.
00:01:48.000And Joe was gonna stand tall and stand strong against Vladimir Putin, who you do have to admire the guy's commitment to being a Bond villain.
00:01:55.000I mean, truly, the guy is a Bond villain.
00:01:57.000It is astonishing how much he has committed to that role.
00:02:01.000He is going to lower Sean Connery over a tank filled with sharks and there will be lasers attached to their heads.
00:02:08.000He is very much committed to that image in public.
00:02:11.000Meanwhile, Joe Biden is wandering around stumbling into walls.
00:02:14.000So this was all set up with Joe Biden touting just how strong and powerful he was going to be.
00:02:19.000Now, again, there was no reason to have this meeting.
00:02:21.000Understand that usually when you have bilateral meetings with people from other countries, unless they're allies, there's an agenda on the table, stuff that you want to accomplish, stuff that you're negotiating over.
00:02:30.000Usually don't just get together for a photo op, because if you get together with a dictator for a photo op, he is elevated and you are naturally degraded.
00:04:11.000France, Brazil, Italy, and Canada all rank above Russia, and South Korea is right on their heels.
00:04:16.000So Russia is like, when we pretend that Russia is a world power, Russia is not a world power.
00:04:20.000Russia has a less powerful economy by a fairly large margin than Brazil, for example.
00:04:24.000And we don't treat Brazil with this kind of kid-glove treatment.
00:04:29.000We shouldn't treat Russia with the kid-glove treatment, but we have been for years because we have this kind of Cold War mentality where Russia is this aggressive world power that we somehow have to negotiate with.
00:04:37.000And because, frankly, too many European leaders are whores and they want Russian oil.
00:04:41.000I mean, really, the German, The German government has been basically making itself prone to Russian aggression and Russian leverage for years.
00:04:52.000Okay, in any case, Joe Biden treating... And this is a bipartisan problem, by the way.
00:05:00.000Like, everybody has been treating Russia as this great world power when, in fact, Russia is not even close to a world power at this point in time.
00:05:07.000In any case, Joe Biden says it's better to meet face-to-face.
00:05:10.000He can't really explain why we're meeting face-to-face or what he hopes to gain from meeting face-to-face.
00:05:14.000Vladimir Putin is very happy to meet face-to-face because for him it's a win.
00:05:17.000He goes home and he plays all of the clips of him chiding American media about how terrible America is.
00:05:23.000And meanwhile, the United States is saying kind of mild critiques of how Putin runs his dictatorial country.
00:05:30.000Putin is subjecting his own dissidents to jail time and maybe death.
00:05:36.000And the United States has, like, mild critiques, and we think maybe we can work with Vladimir.
00:05:44.000presidents should be very, very reluctant to meet with dictators, unless there's a real agenda on the table, like, for example, an arms reduction treaty or something.
00:05:52.000In any case, here was Joe Biden saying, you know, it's better to meet face to face.
00:05:56.000I hope that our meeting will be productive.
00:06:00.000As I said outside, I think it's always better to meet face to face.
00:06:04.000Okay, well, it's not always better to meet face-to-face, particularly when your face is an old doddering codger who can't really hold it together.
00:06:11.000This led to an unfortunate incident in which Joe Biden yesterday was asked by a reporter, do you trust Putin?
00:06:19.000Remember, Yamiche Alcindor is just a lackey for the administration, right?
00:06:21.000She works for PBS and she, of course, was a gadfly when it came to Trump, but she's a bootlicker when it comes to the Biden administration, just like most of the media.
00:07:04.000You know, like before you actually spoke with Joe Biden, you know what was in his head.
00:07:08.000The reality is that the Biden team treats him as an afterthought in their own administration.
00:07:15.000Joe Biden is not the one making policy.
00:07:17.000Joe Biden is not the one in control of the bus.
00:07:19.000Ronald Klain as chief of staff may be in control of the bus.
00:07:22.000Jake Sullivan on foreign policy may be in control of the bus.
00:07:25.000Joe Biden has very little control of this bus because he is just not with us.
00:07:29.000We've already shown you tape where he is walking around the G7 into random cafes and then being led away by the hand as though the woman is his care nurse and is dragging him away to get his vitals tested.
00:07:58.000And for all those people who are concerned about Trump's optics, this is a very different sort of optics, and it is really not a good optics either.
00:08:03.000We'll get to more of this in just one second.
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00:09:26.000The pressers were not particularly long.
00:09:27.000He answered like four questions in one presser because he just doesn't have the sort of stamina that other world leaders have had in the past or than Vladimir Putin had yesterday.
00:09:37.000Again, if you're going to have this meeting and the meeting is about optics, then we do have to pay attention to the optics.
00:09:43.000If the meeting is about substance, then we pay attention to the substance.
00:09:46.000But this entire meeting was about the optics.
00:09:47.000So Joe Biden decided for some odd reason that he was going to hold his presser outside.
00:09:55.000Also, he mixed up Trump and Putin at one point.
00:09:58.000I caught part of President Trump, Putin's press conference, and he talked about the need for us to be able to have some kind of modus operandi where he dealt with making sure the Arctic was, in fact, a free zone.
00:10:15.000Okay, so again, mixing up Trump and Putin, always a good look.
00:10:18.000Also, in terms of policy, Biden also said that he gave Vladimir Putin a list of 16 pieces of critical infrastructure not to hit.
00:10:26.000Now, I have some questions about this particular strategy.
00:10:33.000So you've got Arch-Villain, and you've got Goldfinger over here, sitting there, plotting things against the United States, and Joe Biden, rambles in and takes a list out of his pocket.
00:10:45.000He's like, I really like for you to not hit these particular targets, Shabba Dabba, Goose Dabba Dab.
00:10:51.000You just gave him a list of targets to hit.
00:11:35.000Second of all, are there any consequences attached to an attack on those pieces of infrastructure?
00:11:39.000Third, do you really think the Russians are just going to openly attack it?
00:11:42.000The game that the Russians have been playing for a very long time in terms of cybersecurity is they've been using proxy cutout groups.
00:11:47.000They use groups that are based not in Russia, or they create false sort of identification for groups based in Russia, and then they attack American sources, and then they just deny responsibility.
00:11:56.000This is something that state What is this?
00:11:59.000terror groups have been doing for a very long time now.
00:12:02.000And Iran recognizes that if Iran were to attack American soldiers directly, then America might hold Iran responsible. So instead, they set up some sort of proxy terror group in Iraq, or they set up a proxy terror group in Yemen or in Brazil or wherever. And the same thing is true of the Russians, right? They set up these sort of proxy groups, the proxy groups attack the United States, and then Russia just disclaims all responsibility.
00:12:20.000And Vladimir Putin throws, oh, what is this? We've never seen such a thing. So you hand him a list of the infrastructure you You don't want the archvillain to hit.
00:12:56.000And so that meant that Joe Biden's main goal here was to go out there and talk about the wonders and glories of democracy in Putin's face, basically.
00:13:06.000But honestly, I have no quarrel with talking about how the United States is superior to the evil dictator of Russia, the murderous dictator of Russia.
00:13:21.000The media treated this as though it was a win simply because Joe Biden said the word democracy over and over again.
00:13:24.000But did he actually leverage anything out of Vladimir Putin?
00:13:27.000Of course not, because that was never the agenda.
00:13:29.000The agenda was simply to go there and say a bunch of stuff and then leave.
00:13:32.000And then for the media to cheer Joe Biden as though Joe Biden is some sort of great world leader who is leading the civilized world into a brighter future.
00:14:12.000Alexei Navalny dying would be a terrible thing.
00:14:15.000And it would be caused by the Russian regime that tried to have him murdered in the last couple of years as well.
00:14:19.000But the subjugation of 7 million citizens of Hong Kong to complete Chinese tyranny came at zero cost for the Chinese regime.
00:14:26.000I mean, in fact, the unleashing of a virus that has killed now at least 3 million people all over the globe, including 600,000 Americans, has come at zero cost for the Chinese regime.
00:14:35.000I do not think that the West has deterrent power against China and Russia anymore.
00:14:38.000I think everybody knows it, including the Chinese and the Russians.
00:14:41.000And so I think that while the press is cheering Biden, I just don't think that there's any reality to this.
00:14:46.000I think Putin knows there's no reality to this, which is why he seems so unflapped and so unbothered by any of this.
00:14:50.000Here is Joe Biden talking up the idea that there will be serious consequences.
00:14:55.000I made it clear to him that I believe the consequences of that would be devastating for Russia.
00:15:04.000What do you think happens when he's saying it's not about hurting Navalny, all the stuff he says to rationalize the treatment of Navalny, and then he dies in prison?
00:15:18.000I pointed out to him that it matters a great deal.
00:15:22.000When a country, in fact, and they asked me why I thought there was important to continue to have problems with The president of Syria.
00:15:34.000I said because it's a violation of international norm.
00:15:38.000Yes, this, what a strong and unwavering, by the way, this is one of the great lies, and it has been told in sort of bipartisan fashion by presidents of both parties, and it's really, really stupid.
00:15:47.000When Joe Biden says, you know, I think that Vladimir understands that it wouldn't be in his interest to, you know, let's see Navalny.
00:15:56.000When he says that kind of stuff, I'm pretty sure that Vladimir Putin thinks it's in his interest for Navalny to die.
00:16:01.000And I really don't think he feels particularly threatened.
00:16:03.000He's been playing this game for 20 years.
00:16:05.000He's been killing all of his political opponents and garnering personal wealth amounting to billions of dollars in Russia since, like, 1999.
00:16:13.000I do not think that he sits around and he thinks to himself, well, I don't know, is it in my interest to kill political opponents?
00:16:20.000I think mostly Vladimir Putin's considerations are things like, will I kill him with radioactive material or push him out window?
00:16:27.000That's pretty much as far as the thought goes for Vladimir Putin.
00:16:29.000Because again, the guy's maintained power for two decades.
00:16:33.000There's this very self-flattering Western notion that everybody thinks like we do.
00:16:39.000By the way, it is exactly this sort of notion that leads to the ridiculous sort of self-critiques of the West that you see in the West.
00:16:45.000Like, oh my god, we're so racist, we're so terrible, we're such an awful, unjust, hierarchical society.
00:16:50.000And anybody who's spent any time outside of Western civilization, you walk around planet Earth for like five seconds, you're like, whoa, America's pretty damned unbelievable.
00:17:00.000But because we in the United States don't spend a lot of time doing that, and because we think that everybody thinks like we do, like, but why can't we make peace with the Russians?
00:17:08.000Why can't we just give something away?
00:17:24.000The same exact sort of foolish theory that democracy can be implanted anywhere and take root immediately and be fine.
00:17:30.000That led to the notion that we were going to immediately turn Afghanistan and Iraq into thriving multicultural democracies.
00:17:36.000That exact same theory that was widely disproved and scorned in the 2000s.
00:17:41.000is still applicable, according to the left, for pretty much everything else.
00:17:45.000Well, you know, the Russians, they probably think like we do.
00:17:47.000I mean, Vladimir Putin, that government, they probably think like we do.
00:17:49.000So when Joe Biden is saying to himself, even Vlad understands that he shouldn't do that.
00:17:55.000No, he understands exactly what he wants to understand, which is how to keep power in his country and amass personal wealth to himself and expand the borders of the old Soviet Union, which he would like to rebuild if he actually had the power to do that.
00:18:05.000And you can see this in Vladimir Putin.
00:18:08.000This is part of the problem with watching This stuff with a weathered eye.
00:18:12.000When you watch these sorts of events with any sort of knowledge of history and you watch, not Biden, but the other guy, it's not like he's hiding the ball.
00:18:20.000He's saying exactly what he wants and what he plans on doing.
00:21:47.000And again, this is the way that the USSR used to act.
00:21:50.000Every time anybody would point out that, you know, they were starving millions of people in Ukraine, for example, or that they were engaging in a full-scale purge and murdering people at the basement of the Lubyanka by the tens of thousands.
00:22:00.000Anytime anybody would mention this, the USSR would immediately come back with, yes, and what about Jim Crow?
00:22:04.000Well, this is what Vladimir Putin is doing right now.
00:22:46.000What did he get out of this optically?
00:22:48.000Nobody seems to bother caring what Putin got out of it optically because the media is so fascinated by the idea that Biden is greater and better and more pure than Trump.
00:22:57.000What this was and should have been about is depriving Russia of a win, but they didn't deprive Russia of a win.
00:23:02.000Here's Vladimir Putin talking about how Biden is responsible for shootings and killings in the United States.
00:23:08.000You know, in principle, everything that happens in our countries, one way or another, is the responsibility of the leaders themselves.
00:25:09.000Well, Putin announced that they'd reached some sort of agreement on cybersecurity, which really means they haven't reached an agreement on cybersecurity.
00:25:16.000As far as cyber security is concerned, we agreed that we would begin consultations on that issue.
00:25:27.000And I believe that's extraordinarily important.
00:25:29.000Okay, so what exactly were the details of that cyber security agreement?
00:25:36.000According to the Associated Press, which again was cheerleading for Biden throughout this whole thing, U.S.
00:25:40.000President Joe Biden and Russia's Vladimir Putin exchanged cordial words and plotted modest steps on arms control and diplomacy, but emerged from their much-anticipated Swiss summit Wednesday largely where they started, with deep differences on human rights, cyber attacks, election interference, and more.
00:25:53.000The two leaders reached an important but hardly relationship-changing agreement to return their chief diplomats to Moscow and Washington after they were called home as the relationship deteriorated in recent months.
00:26:03.000And Biden and Putin agreed to start working on a plan to solidify their country's last remaining treaty, limiting nuclear weapons.
00:26:08.000But their three hours of talks on the shores of Lake Geneva left both men standing firmly in the same positions they had started in.
00:26:14.000I'm not confident he'll change his behavior, Biden said at a post-summit news conference.
00:26:18.000What will change his behavior as the rest of the world reacts to them and they diminish their standing, I'm not confident.
00:26:23.000And meanwhile, the White House and Kremlin had set low expectations going into the summit.
00:26:26.000They issued a joint statement after the conclusion that said that their meeting showed the practical work our two countries can do to advance our mutual interests and also benefit the world.
00:26:33.000Okay, so basically they issued a statement from miscongeniality, right?
00:26:38.000That's pretty much like they, world peace, world peace.
00:26:44.000Over and over, Biden defaulted to, we'll find out, when assessing whether their discussions about nuclear power, cybersecurity, and other thorny issues will pay off.
00:26:52.000Biden came into the summit pushing Putin to clamp down on the surge of Russian-originated cyber security and ransomware attacks.
00:26:57.000When the summit ended, it wasn't evident that more than superficial progress had been made.
00:27:02.000Biden said that he made clear that if Russia crossed certain red lines, his administration would respond.
00:27:06.000And the consequences would be devastating, right?
00:27:08.000That was him talking about Navalny as we played before.
00:27:50.000That's why he was beaming with joy when he left the summit and went to the press conference.
00:27:58.000Even when he entered the building before the talks, he got the attention that he couldn't be dreaming of getting during the last few years.
00:28:49.000It was directed at an American political audience.
00:28:52.000Because Biden knew that if he said a couple of things, like human rights and democracy, without actually demanding anything of Putin, in terms of hard deliverables, then the media would celebrate him and say, well, at least he isn't Trump.
00:29:22.000So there was a clip that went viral a little bit yesterday of these reporters who were outside, their mics were on, and they started joking about the kinds of questions that they were going to be asking Biden right before the summit.
00:29:33.000What did you think of the vice president's trip, Mr. President?
00:32:10.000Wolf, it is quite striking to just see the confidence in his approach, in his tone, as he really handles all of this.
00:32:18.000He did not go point by point rebutting everything that Vladimir Putin said.
00:32:22.000There was a discussion among White House aides what he should talk about.
00:32:26.000But in the end, he ended up talking about at this press conference essentially what he had planned to going into it.
00:32:33.000Certainly was comfortable in that moment taking off his jacket, answering these questions from some top foreign policy reporters in the audience that he doesn't always call on.
00:32:45.000Wolf, as we assess this trip, this is why Joe Biden ran for president.
00:32:52.000I mean, first of all, I thought that CNN had originally suspended Jeffrey Toobin for masturbating on camera, but apparently you're allowed to do it so long as they let you.
00:33:13.000By the way, even Biden later recognized there was some blowback online, and Biden was like, probably I should probably walk that back a little bit.
00:33:19.000The truth is, Joe Biden is a combative jerk.
00:33:21.000People who have been following him in the media for years know this.
00:34:30.000Oh, oh, oh, I'll have what they're having.
00:34:33.000And what in the what in the actual world?
00:34:35.000So here is Joe Biden walking that back.
00:34:36.000He knows where his bread is buttered, too, which is as long as he continues to massage the media every so often, they will continue to to release his chakras.
00:34:44.000Look, to be a good reporter, you gotta be negative.
00:34:46.000You gotta have a negative view of life, okay?
00:34:48.000It seems to me, the way you all... You never ask a positive question.
00:34:51.000Why, in fact, having agreement... Well, find out!
00:34:55.000The thing that always amazes me about the questions, and I apologize for having been short on it.
00:35:02.000If you were in my position, would you say, well, I don't think, man, anything's gonna happen.
00:35:14.000You should say, I am highly skeptical that we are going to get any sort of concession from the Russian government absent serious international pressure, which is why I'm calling for a ratcheting up of serious international pressure.
00:35:25.000Instead, it's like, no, I'm hopeful that we'll get something.
00:37:06.000I'm going to talk in a few minutes about some stories of people just seeing their individual rights stripped from them because every major institution in American life has been re-normalized and weaponized by the left against these rights.
00:37:18.000That's why I wrote the book, The Authoritarian Moment, to help understand how all of these institutions, from education to science, got taken over by the left, renormalized and weaponized against you and your rights.
00:37:27.000And what the book really is about is how we fight back against that.
00:37:30.000What steps do we need to take in order to reverse the progress that the left has made in taking over these institutions and emptying them out of any content and then using them purely as weapons?
00:37:39.000Arm yourself with the knowledge you need to shut the woke cult down in its tracks before it is too late.
00:37:52.000Once again, it's called The Authoritarian Moment.
00:37:54.000It's already sold thousands and thousands and thousands of copies.
00:37:56.000Get yours right now on pre-order at any bookseller, including Amazon.
00:38:01.000Meanwhile, no one ever said leaving a cult was easy.
00:38:04.000Every now and then, somebody actually does it.
00:38:05.000If they didn't, we'd never get an inside glance into just how disturbing the ideologies they push really are.
00:38:10.000That's why we should all be listening to Georgia Howe's brand new podcast, Office Hours, here at Daily Wire.
00:38:14.000Georgia is a former liberal and school teacher.
00:38:16.000She became aware of the ideological indoctrination spreading throughout the school system.
00:38:19.000She took a stand against it in her viral walk away video.
00:38:23.000Now, on her podcast, she gets into everything from critical race theory to transgenderism with various experts the media will not allow you to hear.
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00:38:38.000Get ready for the ultimate listening experience no matter where you are.
00:38:42.000Also, We have another exciting announcement for you today, and yet another reason to join the Daily Wire.
00:38:47.000The left loves to quote-unquote amplify black voices, but only when those voices repeat exactly what the left wants.
00:38:54.000That's why it was not a big surprise that during Black History Month, Amazon removed, created equal, a documentary about Clarence Thomas' rise from the segregated South to the highest court in America, and the all-out war that was waged on him by the left during his confirmation hearing.
00:39:06.000So Amazon took that documentary down, like in the middle of Black History Month.
00:39:10.000Now, it is unfortunate that Amazon deep platform such an excellent and it was actually really high performing documentary, but the Daily Wire has gained from that because right now the Daily Wire has acquired the North American streaming rights to created equals.
00:39:35.000members over at dailywire.com. If you're not yet a Daily Wire member, you can join with code justice for 20% off your membership. Get ready to start streaming today. Take a look at the trailer.
00:39:45.000I was never going to be white. The problem is I could never go back completely to the world I came from. I saw what I had become.
00:39:54.000And then I asked God, if you take anger out of my heart, I'll never hate again.
00:39:58.000You're not really black because you're not doing what we expect black people to do.
00:40:19.000If you're not yet a Daily Wire member, join with Code Justice for 20% off your membership and get this amazing Clarence Thomas documentary and all of our other fantastic content, like Run, Hide, Fight, or our talk show, Candace, or the second hour of this show, On Demand.
00:40:50.000After a year in which they're wrong about nearly everything, it turns out they've been wrong on the economy as well.
00:40:54.000According to Ben Zeisloff, reporting for The Daily Wire, the Federal Reserve hiked its inflation expectations while not backing down from aggressive monetary stimulus, which makes perfect sense.
00:41:02.000You're completely acknowledging that you got wrong your inflation recommendations, and then you're just holding to the same policy.
00:41:10.000The central bank insisted, during its much-anticipated June meeting, inflation is transitory in nature as the United States emerges from COVID-19 and the lockdown-induced recession.
00:41:18.000Although the Federal Open Market Committee intends to aim for stable inflation rates in the long term, it increased inflation projections for 2021 to 3.4%, an entire percentage point higher than its March forecast.
00:41:29.000The Fed's statement reads, quote, the committee seeks to achieve maximum employment and inflation at a rate of 2% over the long run.
00:41:36.000With inflation having run persistently below this longer run goal, the committee will aim to achieve inflation moderately above 2% for some time so that inflation averages 2% over time and longer term inflation expectations remain well anchored at 2%.
00:41:47.000The committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved.
00:41:51.000So in other words, because there was deflation last year, because demand fell off, because all the businesses were closed and all of the rest of it.
00:42:01.000Because of that, they're now saying, well, if we run, you know, 4% inflation, 5%, 6% inflation year on year, well, we can do that for a while and it'll all average out in the end.
00:42:09.000Yeah, except for if it starts to run out of control, it's going to be kind of harder to control it on the other end without some pretty significant economic ramifications when you raise those interest rates.
00:42:17.000Why would you not be gradually raising interest rates right now?
00:42:20.000There's no shortage of credit in the American system right now.
00:42:23.000Right now, in fact, we're just paying people to stay home.
00:42:27.000Meanwhile, the Fed will continue to promote a near zero interest rate and purchase treasury bonds in order to inflate the currency.
00:42:32.000The committee decided to keep the target range for the Fed funds rate at zero to one quarter percent and expects it will be appropriate to maintain that target range until labor market conditions have reached levels consistent with the committee's assessment of maximum employment.
00:42:46.000And inflation has risen to 2% and is on track to moderately exceed 2% for some time.
00:42:49.000So to understand what they are doing right now, you have to understand that basically what the Fed funds rate does is it sets the overnight lending rate between banks.
00:42:56.000Basically, you have all of these banks and at the end of the day, their balance sheets have to live up to what they promise, right?
00:43:02.000They have to hold a certain amount of money in the back room in case people come to the bank and they want the money, because when you give your money to the bank, the bank doesn't normally hold it there. It lends it out.
00:43:10.000Okay, so these banks lend to each other at an overnight rate.
00:43:14.000So if I have a surplus of cash and another bank needs cash in its back room, I lend to that bank and there's a rate, the overnight market's rate, that sets what that rate is.
00:43:23.000When the Fed sets its rate at zero, basically it makes it very, very easy for banks to take out credit from the Fed funds.
00:43:31.000When the Fed funds decide that they want to inject money, when the Federal Reserve decides it wants to inject money into the system, the way it does this is the Treasury Department issues a bond.
00:43:39.000Hey, then let's say Goldman Sachs buys the bond from the Treasury Department and then resells it to the Federal Reserve, which literally just makes up money in order to buy it.
00:43:47.000The Federal Reserve doesn't take money that's already there.
00:43:49.000The Federal Reserve just adds a zero to its ledger at the end of a big number and then just buys a bunch of bonds.
00:43:54.000And then that fake money, which is digital, becomes real money in the hands of these bond traders.
00:44:01.000And then these banks and these institutional investors are supposed to take that money and they're supposed to invest it.
00:44:05.000And this is supposed to jog the economy.
00:44:07.000Well, what if people aren't leveraging up right now because there is just not the demand?
00:44:11.000What if people have stopped leveraging up because no matter how much they leverage up, they're not able to actually get workers to come back in the workforce because we are paying them to stay out of the workforce.
00:44:20.000Then you have inflation because you have too much money chasing too little product.
00:44:23.000And that's exactly what we are seeing right now.
00:44:26.000The Fed has upgraded expectations of America's real GDP growth from 6.5% to 7% in 2021.
00:44:32.000It made no changes to its forecast of a 4.5% near-term unemployment rate.
00:44:37.000The Fed is also going to extend its temporary U.S.
00:44:39.000dollar liquidity swap lines with nine central banks through December 31st, 2021, in order to promote the supply of credit to households and businesses, both domestically and abroad.
00:44:48.000Again, we are seeing the worst increase in inflation since the Great Recession.
00:44:51.000The Consumer Price Index saw a 5% year-over-year increase, but the Producer Price Index, a metric that tracks businesses' purchasing costs, reached a 6.6% year-over-year increase.
00:45:01.000I've been talking to people, particularly in the construction industry here in Florida, they're telling me they cannot get materials.
00:45:06.000They're telling me that the materials they are getting are extremely expensive.
00:45:09.000And most of all, they're saying they literally cannot find labor.
00:45:11.000That people are not willing to work right now because the government is just paying them to stay home.
00:45:15.000So, genius stuff happening from our federal government, as always.
00:45:20.000Meanwhile, controversy breaking out, oddly enough, mainly from the left over Juneteenth.
00:45:26.000So yesterday, Congress adopted, pretty much unanimously, there are a few people who voted against it, to make Juneteenth a national federal holiday.
00:45:34.000Now, Juneteenth is the date in which slaves in Texas were finally informed about the Emancipation Proclamation.
00:45:41.000And it happened like two years after the Emancipation Proclamation.
00:45:44.000And so it's been celebrated in black communities around the United States as sort of the marking the end, the date marking the end of slavery.
00:45:53.000And so now, it's been made a federal holiday.
00:45:56.000And as I said yesterday on the program, not only do I not have a problem with this, I think that it's quite good that we have a federal holiday marking the end of slavery.
00:46:02.000Because that was a signal moment in America's history.
00:46:06.000It seems to me that we should absolutely celebrate the end of slavery, whether that should be on Juneteenth or whether that should be upon the ratification of the 13th and 14th amendments to the United States Constitution, the revivification of the promises of the Declaration of Independence under the auspices of the Lincoln administration, and the end of slavery, and the establishment of equality before law, at least
00:46:28.000In at least in the Constitution and then gradually effectuated over time so that now there is full equality before law in the United States and if you don't believe that you should read some of the laws of the United States sometime.
00:46:41.000Now, what the left was saying is that they want Juneteenth to be made a federal law so that we can basically club Americans by saying that if they don't now agree with our racial agenda, then it's because they don't understand the legacy of Juneteenth.
00:46:53.000The legacy of Juneteenth is racial progress, right?
00:46:55.000It is literally marking racial progress in the United States.
00:46:57.000And there's been a lot more racial progress, as it turns out, between 1865 and 2021.
00:47:02.000Okay, so it seems that that should be a date that, you know, frankly, everybody should celebrate, right?
00:47:05.000I mean, that is a very, very good thing that slavery ended in the United States.
00:47:37.000With like total support from everyone.
00:47:39.000He says that what's truly amazing is that many of the same people who are voting to make Juneteenth a national holiday also oppose critical race theory.
00:47:48.000Critical race theory is not Juneteenth.
00:47:50.000Critical race theory is the belief that all of America's institutions are irrevocably intertwined with racism, that they are shot through with racism, that they are so poisoned at the root that all of the branches are just fruit of the poisonous tree.
00:48:02.000That is the basic idea of critical race theory, that whiteness is present in everything, that racism is a normal state of the world, that people don't even acknowledge their own racism, and that people benefit from that racism.
00:48:16.000Okay, and that kids are supposed to be taught this.
00:48:26.000Juneteenth is going to be a federal holiday for reasons teachers won't be allowed to explain to their students out of fear of critical race theory backlash.
00:48:54.000And if you apparently, quote-unquote, give the left an inch, and I don't think this is giving the left an inch.
00:49:00.000I don't think it's giving them anything, frankly, to celebrate the end of slavery.
00:49:02.000Again, I think that's a pretty unifying thing.
00:49:04.000But if you give them what they perceive to be an inch, they then proceed to try and take it for a mile.
00:49:09.000And that mile is indoctrinating your children in the idea that America's institutions are irrevocably racist, which, by the way, is the precise reverse of what Juneteenth is.
00:49:15.000Juneteenth is a recognition that America's institutions changed and morphed and molded and adapted in order to be less racist.
00:49:24.000The reality is the constitutional provisions for amendment were utilized in order to end slavery in the United States.
00:49:31.000The reality is that it was America's legal process that was changed by the law under the systems and institutions of the United States in order to effectuate the end of legalized racism in the United States.
00:49:44.000So actually, celebrating Juneteenth is precisely counter to critical race theory, which suggests, I mean, Derrick Bell openly suggested this, that racism in the United States has gotten worse, not better.
00:49:53.000Juneteenth is a precise rebuke and rebuttal of that idea.
00:49:56.000But the media have decided that basically you have to accept, if you are racially sensitive, you have to accept that America is a more racist place, a more terrible place, and you have to allow the indoctrination of your children in this particular idea.
00:50:08.000That is, of course, absolute stupidity.
00:50:10.000There's a reason why there's a backlash, and that backlash is going to be extremely strong.
00:50:14.000I'm perfectly willing, and so is every other American I know, to hear about the flaws of the United States.
00:50:18.000What I'm not willing to hear is that the United States is at root a racist, horrifying country, and our institutions are bad.