The Charlie Kirk Show - May 02, 2023


Another 2008... Or Worse?


Episode Stats

Length

33 minutes

Words per Minute

157.7668

Word Count

5,322

Sentence Count

443


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

Transcript

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00:00:00.000 Hey everybody, today the Charlie Kirk show.
00:00:01.000 Banks are collapsing.
00:00:02.000 In fact, what if I told you the numbers for bank collapses?
00:00:06.000 It's actually worse than 2008.
00:00:08.000 It's amazing.
00:00:08.000 You're going to want to listen to this entire episode.
00:00:10.000 It's very deep.
00:00:11.000 A lot of economic discussion here.
00:00:13.000 If that interests you, you should listen to it.
00:00:15.000 If it doesn't interest you, it should.
00:00:16.000 Honestly, it impacts every single one of you.
00:00:18.000 It impacts our entire civilization.
00:00:21.000 Email us your thoughts.
00:00:21.000 Always freedom at charliekirk.com.
00:00:23.000 I want to thank those of you that support us.
00:00:24.000 Thank you, Steve from Maryland, James from Louisiana, Sarah from Minnesota, Michaela from Illinois, Christine from North Carolina, Laura from Colorado, Julio from California, Lori from Arizona, Tana from California, Rebecca from California, Angela from Alabama, Bethany from Tennessee.
00:00:42.000 I want to thank Sarah from North Carolina, charliekirk.com/slash support.
00:00:47.000 All of you support us and help us remain strong, growing, and flourishing.
00:00:51.000 That is charliekirk.com/slash support.
00:00:54.000 Get involved with turningpointusa at tpusa.com.
00:00:58.000 That is tpusa.com.
00:01:00.000 Get engaged and get involved.
00:01:01.000 Start a high school and college chapter at tpusa.com.
00:01:05.000 That is tpusa.com.
00:01:08.000 Buckle up, everybody.
00:01:09.000 Here we go.
00:01:10.000 Charlie, what you've done is incredible here.
00:01:12.000 Maybe Charlie Kirk is on the college campus.
00:01:14.000 I want you to know we are lucky to have Charlie Kirk.
00:01:17.000 Charlie Kirk's running the White House, folks.
00:01:20.000 I want to thank Charlie.
00:01:21.000 He's an incredible guy.
00:01:22.000 His spirit, his love of this country.
00:01:24.000 He's done an amazing job building one of the most powerful youth organizations ever created.
00:01:30.000 Turning point USA.
00:01:31.000 We will not embrace the ideas that have destroyed countries, destroyed lives, and we are going to fight for freedom on campuses across the country.
00:01:40.000 That's why we are here.
00:01:42.000 Brought to you by the Loan Experts I Trust, Andrew and Todd at Sierra Pacific Mortgage at andrewandTodd.com.
00:01:52.000 The media is probably getting calls from the Treasury Department right now.
00:01:56.000 I guarantee you, the big uglies, CNN, even the people running the Apple News desk, NBC, I can almost guarantee you the Treasury Department's PR side, the communications director, they are working the phones saying, hey, can you just downplay the bank story?
00:02:16.000 It's okay if you cover it.
00:02:17.000 Just don't lead with it.
00:02:19.000 And apparently it's working.
00:02:21.000 I mean, they do mention it on the front page of the Wall Street Journal, but what catches your attention here?
00:02:26.000 The front page of the Wall Street Journal is some freak wearing a cat uniform at the Met Gala.
00:02:35.000 Jared Leto, Leto, next to Ann Hathaway, and Selma Hayek.
00:02:43.000 So it's working.
00:02:44.000 The lead should be not some doja cat thing.
00:02:53.000 Again, I've joked around for a while that we're living through the Hunger Games.
00:02:56.000 This is confirmation that the Hunger Games were awfully prophetic.
00:03:00.000 Again, they do cover it, but it's as if your eyes go away from it.
00:03:06.000 First Republic sees sold to JP Morgan on page of the New York Times, B1.
00:03:12.000 So it's buried because the front page of the New York Times, they're leading with Ukraine.
00:03:17.000 They do cover the bank issue, but you could tell it's not the emphasis.
00:03:20.000 Somebody is lobbying.
00:03:21.000 Somebody is working the ropes of these media companies.
00:03:24.000 And there's a reason for it.
00:03:26.000 We're on the precipice of a major bank run.
00:03:28.000 Institutional, an institutional bank run.
00:03:31.000 Now, you know this.
00:03:33.000 I hope you know this.
00:03:34.000 The money in your bank account is not actually there.
00:03:37.000 The money in your bank account is just a promise.
00:03:40.000 It's a promissory note.
00:03:41.000 It is a fractional reserve banking system.
00:03:44.000 It works as long as everybody doesn't go and withdraw their money all at once.
00:03:49.000 So the fall of First Republic Bank should be a lot bigger on the Wall Street Journal than the eye candy distraction smokescreen Doja cat person.
00:03:59.000 But somebody at the Treasury Department, and quite honestly, you can't blame them, is trying to just kind of tamper this down.
00:04:06.000 You can cover it here or there, but do not engage in panic.
00:04:12.000 So the New York Times has an incredibly important graphic right now.
00:04:17.000 Do you know that the three failed banks this year, Silicon Valley Bank, Signature Bank, and First Republic Bank, surpasses the amount of assets of busts in 2008?
00:04:31.000 So there were more banks that busted in 2008 than have busted so far, but these were so big that in 2008, there were 25 banks that busted for a total of $94 billion.
00:04:47.000 So far this year, three banks have busted for a total of $110 billion, $110 billion.
00:04:57.000 So currently, the banking collapse is already worse this year than it was in 2008.
00:05:04.000 What is driving this?
00:05:04.000 Well, a couple of things.
00:05:06.000 Number one, the $6 to $7 trillion of money that we created out of thin air, and we were against it from the beginning.
00:05:13.000 You can go back in the podcast archives.
00:05:14.000 We were one of the few people that thought that we should have zero stimulus.
00:05:19.000 Congress should not act.
00:05:20.000 And we were attacked.
00:05:21.000 People said, oh, Charlie, it's the worst thing ever.
00:05:23.000 During the lockdown, we said the number one way to stimulate the economy is to open the economy.
00:05:29.000 And Republicans and Democrats agreed to keep on spending money we do not have, creating money out of thin air, funneling fiat currency into the economy.
00:05:40.000 And basic economic truths, best articulated by Milton Friedman and Thomas Sowell, when you create six, seven, eight, nine trillion dollars out of thin air, you're going to get a lot of bad behavior.
00:05:53.000 You're going to subsidize bad behavior.
00:05:55.000 You are going to get what in economics is called externalities.
00:06:00.000 You're going to get what's even more specifically called in economics, malinvestment.
00:06:05.000 Bad companies will be able to stay open.
00:06:08.000 Defunct nonprofits will be subsidized through ERCs or through this bailout money or through the stimulus money.
00:06:16.000 It was a completely unnecessary cash infusion that Republicans should have opposed.
00:06:21.000 And they did eventually.
00:06:24.000 It was a poor allocation of capital, especially since our dollar is just based on fiat, on the faith of the dollar.
00:06:34.000 Not to mention then the Biden regime comes in and wages a war on oil and natural gas and pushes for more regulation and destroys entrepreneurial confidence.
00:06:46.000 Poor allocation of capital always happens before bubble bursts.
00:06:49.000 Now, strict Austrian economists, of which I agree with some of what they have to say and disagree with other things, Ludwig von Mises, beautiful literature that they wrote.
00:06:59.000 And I read all this stuff like 10 or 12 years ago.
00:07:02.000 Murray Rothbard, but he's a little extreme.
00:07:04.000 They did have an interesting argument where they said the Austrian business cycle, as they argue, is that booms and busts are actually not normal.
00:07:15.000 Absent a massive central bank infusing the economy with artificial capital.
00:07:22.000 So basically they say this idea of recessions and growth and recession and depression, it's actually not the normal business cycle, that if you have a stable currency, you'll be able to get rich slowly.
00:07:35.000 You see, the promise of the people that want a metallic-based currency is you will get rich over a period of time and it's actually better that way.
00:07:44.000 Well, look at this graph here on the New York Times, that we already have more assets that have collapsed.
00:07:50.000 And again, the media, I don't want to say the media is doing a disservice.
00:07:54.000 The fact they're not playing into this is actually probably the right thing.
00:07:59.000 Why?
00:08:00.000 Why is it probably the right thing?
00:08:02.000 Because if the media led with bank run, bank collapses instead of Doja Cat, if the media led with this instead of Ukraine, you would have probably another 10 or 20 or 30 banks collapse, especially regional ones.
00:08:17.000 And this is not speculation.
00:08:19.000 Today, Pacific Western Bank is down 30%.
00:08:24.000 Regional banks are teetering on the brink right now as stocks slide to new lows.
00:08:30.000 In fact, I got a call from a very wealthy man yesterday, very, very wealthy.
00:08:34.000 And we were talking and he said, Charlie, just so you know, I have now reduced all of my accounts down to $249,999, $2,400.
00:08:45.000 Basically saying right below the FDIC limit.
00:08:48.000 Like, I am not going to keep a dollar of cash in any of my accounts that the FDIC does not 100% guarantee.
00:08:55.000 And that is a warning sign.
00:08:58.000 That goes to show that people's confidence in the system is deteriorating in real time.
00:09:06.000 The big, huge story happening in the country right now is not the Met Gala.
00:09:11.000 It's not Doja Cat.
00:09:14.000 It's not even the Ukraine war.
00:09:16.000 You are living through one of the worst bank collapses that is even worse than anything we have seen since the Great Depression.
00:09:23.000 Paying attention yet?
00:09:24.000 The Dow is down 500 points.
00:09:27.000 And this is how the CNBC covers it.
00:09:28.000 And again, the media has to be careful because the media does not want to be, they don't want to be chief sponsors of a mass bank run.
00:09:38.000 They say banking concerns linger.
00:09:40.000 Yeah, banking concerns is a mild way to put it.
00:09:43.000 This is already worse than 2008.
00:09:45.000 But let's make sure we understand why this has happened.
00:09:48.000 This did not happen because of Bitcoin or cryptocurrency.
00:09:52.000 This happened because of our flawed, unstable, fiat currency model that is finally coming home to roost.
00:10:02.000 30 or 40 years of cheap money, of neoliberal agendas.
00:10:08.000 Soon people are going to have a bigger indictment of the American dollar where they're saying, wait a second, there's nothing backing my currency.
00:10:17.000 There has not been anything backing your currency since Nixon, when he officially closed the door on the gold standard.
00:10:23.000 It's all hope, promise, and that hope and that full faith in credit of the United States is collapsing in real time.
00:10:33.000 It's smoke and mirrors.
00:10:35.000 Everybody, it is only May, and there have been $110 billion in bank collapses.
00:10:41.000 If this keeps up, we could see hundreds of billions of dollars more in bank collapses.
00:10:46.000 And I am not here as a fear monger.
00:10:48.000 It's the last thing that I want to do.
00:10:51.000 But we're seeing here, regional banks are falling sharply across the board.
00:10:55.000 If there is even a 5% to 10% bank run to some of these regional banks, it will put them under, after, under, after, under.
00:11:03.000 Hey, everybody, you're probably magnesium deficient.
00:11:06.000 That's right.
00:11:07.000 And people message me, Charlie, how do you get sleep?
00:11:09.000 I sleep great because I get the magnesium I get.
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00:11:26.000 Over 75% of the population is magnesium deficient.
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00:11:36.000 Not only does magnesium breakthrough help you sleep better, it also calms your mind and allows you to feel grounded and relaxed during the day and especially before bed.
00:11:43.000 You also wake up easier.
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00:12:31.000 You're living through something that is historic and chaotic, and I'm afraid that there is an agenda behind it.
00:12:36.000 We're going to tell you what that is.
00:12:37.000 They're not shy.
00:12:38.000 The great reset crowd have talked about one world currency, centralized bank digital currency.
00:12:44.000 You see, the big banks are not upset about this at all.
00:12:47.000 JP Morgan is a beneficiary.
00:12:48.000 Their stock went up yesterday.
00:12:50.000 Bank of America, Wells Fargo, they're going to benefit from this.
00:12:54.000 Regional banks keep America free.
00:12:58.000 Regional banks are local.
00:13:02.000 They're accountable.
00:13:03.000 They usually have between $500 million and $2 billion in assets.
00:13:07.000 Regional banks are the state's rights equivalent of the American banking system.
00:13:12.000 They're ideologically diverse.
00:13:14.000 They underwrite loans that big banks won't always underwrite.
00:13:18.000 They donate to the local football team.
00:13:20.000 They'll open up an extra hour for you.
00:13:22.000 They'll take a bet on a local entrepreneur.
00:13:24.000 They stay in touch with local businesses.
00:13:27.000 And they're largely, this is the kicker.
00:13:29.000 They're mostly agrarian-based.
00:13:34.000 They underwrite farmers, heavy equipment loans.
00:13:39.000 If you look at the regional banks, yes, they'll do a restaurant, but it's a lot of local rural towns.
00:13:45.000 It's the food supply that is literally underwritten by a lot of these regional banks.
00:13:51.000 And we're seeing the amount of regional banks go down and down and down.
00:13:54.000 That's one of the, that's always been one of the prime directives of Dodd-Frank.
00:13:58.000 You see, Barney Frank, who was a slob, we don't talk about Barney Frank very often.
00:14:02.000 We should.
00:14:03.000 And I believe his name is Chris Dodd.
00:14:05.000 They came out with Dodd-Frank, not as a way to regulate banks, but they wanted to pseudo-nationalize them through shrinking the amount of banks.
00:14:14.000 This is a trend that we are seeing across the board.
00:14:17.000 They want a smaller and smaller selection of companies that you are able to choose from.
00:14:22.000 They want less banks.
00:14:23.000 They want less beverage companies.
00:14:25.000 They want less automobile companies.
00:14:27.000 We have three or four automobile manufacturers, if you count Tesla.
00:14:31.000 In Canada, there are basically five national banks.
00:14:34.000 Our huge array of local banks is not a law of the universe.
00:14:38.000 In fact, if they're able to chip away at the fact that we have a regional bank there and a regional bank there, and you got Wichita General there, and you got First Tampa there, and you got Des Moines regional there, and they could chip it away and chip it away.
00:14:53.000 And either they collapse, they go under, and they get eaten by JP Morgan or Bank of America.
00:14:59.000 That makes America less free.
00:15:02.000 They're local and decentralized, which we talk about repeatedly.
00:15:05.000 Local and decentralized power is a key to liberty.
00:15:08.000 This accumulation of power and money is smaller in a smaller number of banks threatens our very liberty.
00:15:15.000 So when they close these local banks, it's threatening our autonomy.
00:15:19.000 It's threatening your ability to be free of woke capital.
00:15:24.000 And these regional banks cannot always be controlled by DC bureaucrats.
00:15:29.000 This is a direct sabotage campaign to come for mom-and-pop banks to try to conform us into a national banking strategy controlled by a small, select few of banks headquartered out of New York.
00:15:42.000 Bank of America, Wells Fargo, J.P. Morgan.
00:15:44.000 Those are the big three.
00:15:45.000 And if you want to add the asset managers into it, it's BlackRock.
00:15:48.000 And then, of course, you have Goldman Sachs.
00:15:51.000 An underrated aspect of America's success.
00:15:55.000 This is more broadly applicable, which is something that we must just keep on repeating because it's a truth that we do not say often enough.
00:16:03.000 One of the reasons why America has been the most prosperous, generous, entrepreneurial country is decentralization of power.
00:16:11.000 The founding fathers' vision of this has proven to be one of the great liberators of humanity, one of the great guaranteers of flourishing.
00:16:22.000 Authoritarians always want centralized power.
00:16:25.000 Why do we have 50 states with a lot of autonomy?
00:16:28.000 We're very historically unusual.
00:16:30.000 Remember during the lockdowns, Florida was able to remain open.
00:16:33.000 South Dakota was allowed to remain open more than New York because the states created the federal government.
00:16:39.000 The federal government did not create the states.
00:16:40.000 But you see in the banking system right now a continuation, acceleration of the trend that we do not want decentralized.
00:16:47.000 We want uniform and monolithic.
00:16:50.000 They've done this to automobiles.
00:16:51.000 They've done this to food.
00:16:53.000 They've done this to pharmaceuticals.
00:16:54.000 One of the last institutions that has not been completely clobbered up by the centralized, by the Leviathan, is our banking system, but it's happening right now.
00:17:07.000 Hey, everybody, Charlie Kirk here.
00:17:08.000 Are you tired of feeling burnt out and struggling to stay productive throughout the day?
00:17:12.000 Does brain fog and short-term memory loss keep you from functioning at your best?
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00:17:26.000 They combine NADH, CoQ10, and marine collagen to boost your body's cellular function.
00:17:31.000 I personally take it every day.
00:17:32.000 I'm a big NAD believer.
00:17:33.000 People say, Charlie, how do you keep up the schedule?
00:17:35.000 How do you have mental clarity?
00:17:37.000 Go do some research on NAD.
00:17:38.000 It is a precursor to ATP, which is your body's life source.
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00:17:46.000 I get approached by many supplement brands, and I tell most of them no.
00:17:49.000 Do yourself a favor and give Strong Cell a try.
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00:18:09.000 Okay, we're getting hundreds of emails about the banking collapses, and we appreciate that.
00:18:14.000 Please keep them coming.
00:18:16.000 Let me read from the New York Times here.
00:18:17.000 Government regulators seized and sold off the First Republic Bank on Monday, making it the first, the third bank to fail this year after Silicon Valley Bank and Signature Bank collapsed in March.
00:18:27.000 These banks held a total of $532 billion in assets.
00:18:31.000 That's more than the $526 billion when adjusted for inflation held by the 25 banks that collapsed in the collapse in 2008 at the height of the global financial crisis.
00:18:41.000 So that really begs the question before any further, are we living through a financial crisis that the kind of the new strategies just kind of do ignore it?
00:18:49.000 Like, oh, yeah, we're not in a recession.
00:18:50.000 It's fine.
00:18:52.000 Look, the Treasury Department is very nervous right now, and they should be very nervous.
00:18:55.000 They're trying to downplay this.
00:18:56.000 The system is fully intact.
00:18:58.000 Everything is perfectly fine because they are just a couple percentage points of human behavior changing away from legitimate bank runs.
00:19:07.000 Even JP Morgan should be nervous at this point, but they're not.
00:19:10.000 Jamie Dimon is projecting strength.
00:19:13.000 They're like, oh, everything's fine.
00:19:14.000 It's a great opportunity.
00:19:18.000 The implosion in 2008 was of WAMU, as well as Lehman Brothers and Bear Stearns.
00:19:25.000 This is more than Washington Mutual, Bear Stearns, and Lehman Brothers.
00:19:29.000 I hope you guys understand that.
00:19:32.000 Just in the last couple months, we are experiencing a bigger bank collapse than WAMU, Lehman Brothers, and Bear Stearns.
00:19:46.000 You see, banks are failing, and we aren't having new banks grow.
00:19:50.000 The amount of regulation for a new bank to get started is nearly impossible.
00:19:53.000 The barrier to entry is so high that it's just basically pre-existing banks that are grandfathered in, and they want to destroy them all.
00:20:01.000 They want to pick off every regional bank.
00:20:03.000 Regional banks are a threat, and let's just reinforce this, re-emphasize this.
00:20:08.000 Why does America feel like it's in decline?
00:20:12.000 Because we're more centralized, more controlled, more stiff.
00:20:17.000 There's more power in San Francisco, Palo Alto, Washington, D.C., and New York.
00:20:24.000 Those are the three power centers in the country.
00:20:26.000 If you want to add a fourth, it's Los Angeles from cultural and you could say artistic, it's hard to call it art influence.
00:20:35.000 In recent years, fewer banks have gone under.
00:20:37.000 This is the New York Times editorializing this.
00:20:39.000 This is wrong.
00:20:40.000 Thanks in part to stricter regulations that were put in place in the wake of the financial crisis.
00:20:45.000 For Silicon Valley Bank, the last bank to fail was in late 2020.
00:20:49.000 So there hasn't been any bank failings for two years, and you have this massive spike.
00:20:53.000 And I'm afraid we are not done.
00:20:57.000 I'm afraid that we have not seen the end of it.
00:20:59.000 I'm afraid that we're just beginning to see the early stages of widespread bank collapses, potential bank runs, deterioration of our currency, entire portions of wealth being eradicated and destroyed.
00:21:12.000 Almost like a slow-motion demolition of the country.
00:21:15.000 Let's play Cut 39.
00:21:17.000 Great wisdom from the legendary Milton Friedman.
00:21:20.000 Play Cut 39.
00:21:22.000 Inflation is just like alcoholism.
00:21:24.000 In both cases, when you start drinking or when you start printing too much money, the good effects come first.
00:21:31.000 The bad effects only come later.
00:21:34.000 That's why, in both cases, there's a strong temptation to overdo it, to drink too much and to print too much money.
00:21:41.000 When it comes to the cure, it's the other way around.
00:21:44.000 When you stop drinking or when you stop printing money, the bad effects come first, and the good effects only come later.
00:21:51.000 That's why it's so hard to persist with the cure.
00:21:55.000 Why has the West been so great?
00:21:58.000 A lot of reasons.
00:21:59.000 One of them is delayed gratification.
00:22:04.000 We used to be a civilization and a country that believed in delayed gratification.
00:22:09.000 Delayed gratification from how we ate to our exercise to how we raised our children to how we invested to, yes, even how we appropriated money via public policy decisions.
00:22:23.000 Delayed gratification is all about leaving the next generation better off.
00:22:29.000 But the temptation to retire delayed gratification as a core value was irresistible.
00:22:37.000 The leaders in the early 1990s, primarily led by baby boomers, and I know I'm going to get a lot of emails about this.
00:22:42.000 I'm not blaming every baby boomer, but this is a generational fact, okay?
00:22:47.000 There was a decision made in the early 1990s to retire delayed gratification and prioritize instant gratification.
00:22:56.000 And it was hard to resist that temptation.
00:23:00.000 The guard was dropped after the fall of the Berlin Wall.
00:23:03.000 The 90s was the tech boom.
00:23:05.000 It was roaring.
00:23:06.000 It was the best time to be in America.
00:23:09.000 The stock market just kept on going up.
00:23:11.000 Wealth kept on getting created.
00:23:16.000 It seemed like boom times was going on forever.
00:23:20.000 Delayed gratification would have said, hold on a second.
00:23:23.000 We're not going to engage in malinvestment or relaxing monetary standards.
00:23:27.000 And everything changed after 9-11.
00:23:29.000 And again, I'm not blaming every member of the baby boomer generation.
00:23:32.000 Just so happens, every person who made these decisions were largely baby boomers in power.
00:23:37.000 And 2001, 9-11, 2001, and the Rubicon began to get crossed.
00:23:44.000 The Federal Reserve lowered rates after 9-11.
00:23:47.000 Looking back, that was completely unnecessary.
00:23:51.000 It was strictly a way to try to rebuild people's confidence in a system.
00:23:56.000 I believe this was done by Alan Greenspan called the Greenspan put.
00:24:01.000 I could be wrong, but Alan Greenspan, I believe, was chairman of the Federal Reserve in 2001 and lowered interest rates after 9-11.
00:24:10.000 Now, 9-11 was awful and it was horrible, and it did destroy actual infrastructure.
00:24:15.000 But was it really necessary to make money cheaper just because people's confidence was temporarily shaken after a terrorist attack?
00:24:25.000 No, what Greenspan started was a new philosophy of the Federal Reserve, which is that the Fed can lower rates if enough people get nervous.
00:24:38.000 After Alan Greenspan did that, we saw the low rates stay.
00:24:43.000 We also saw the proliferation of the Community Reinvestment Act, and eventually that all led to the 2008 financial crisis.
00:24:52.000 And then what did we do after?
00:24:55.000 What did Ben Bernanke and Timothy Geithner and Hank Paulson do post-2008 financial crisis?
00:25:01.000 We lowered rates.
00:25:03.000 Now, what does it mean to lower rates?
00:25:05.000 It means you make money cheaper.
00:25:07.000 Lower rates, as Milton Friedman just said, is alcoholism.
00:25:11.000 It gets you into a drunken stupor.
00:25:14.000 And we kept them low for ages.
00:25:15.000 And then what did we do again?
00:25:18.000 When the Chinese coronavirus happened, we further lowered rates where we were having 2.8 to 3.1% interest rates.
00:25:27.000 Why?
00:25:28.000 Because people got nervous.
00:25:30.000 So basically, Federal Reserve interest rates post-Greenspan in 2001 became Xanax for the financial markets.
00:25:41.000 You get a little nervous, your thoughts start getting a little out of control.
00:25:46.000 Interest rates became a way to kind of cool the jets a little bit.
00:25:50.000 Just take a little volume.
00:25:51.000 Just cool out.
00:25:52.000 We're just going to turn down the interest rates.
00:25:54.000 But anytime you manipulate interest rates, it comes with a serious, catastrophic, and to your society and economy, deathly cost.
00:26:05.000 And yeah, a lot of people got rich in 2020 and 2021.
00:26:09.000 For those of you that bought real estate and bought homes and actually leaned into low interest rates, your asset prices are up major, but things are not more valuable.
00:26:18.000 They are just priced higher because there's more dollar bills.
00:26:22.000 When you have more dollar bills, it's not necessarily more wealth is created.
00:26:26.000 It's just that asset prices go up.
00:26:28.000 And you know who's been crushed?
00:26:29.000 The muscular class and the middle class.
00:26:32.000 You see, Greenspan changed everything because the Federal Reserve could kind of just be almost used as a thermometer, not a thermometer, a thermostat.
00:26:43.000 Get a little bit hotter, a little bit colder, a little bit hotter, a little bit colder.
00:26:48.000 Milton Friedman continues explaining what our banking system actually is.
00:26:55.000 Play Cut 40.
00:26:57.000 You may think that when you take some cash to a bank and deposit it, the bank takes that money and sticks it in a vault somewhere to wait until you need it again to turn it back over to you.
00:27:09.000 The bank does no such thing.
00:27:10.000 It immediately takes a large part of what you put in and lends it out to somebody else.
00:27:14.000 The result is that if all depositors at all the banks tried all at once to convert their deposits into cash, there wouldn't be anything like enough cash in the banks of the country to meet their demands.
00:27:27.000 In order to prevent such an outcome, in order to cut shorter run, it's necessary to have some way either to stop people from asking for it or to have some additional source from which cash can be obtained.
00:27:42.000 That was intended to be the purpose of the Federal Reserve System.
00:27:45.000 It was to provide the additional cash.
00:27:48.000 It was to provide the additional cash in the need of a bank run.
00:27:53.000 The Greenspan put was in 1987.
00:27:56.000 He also lowered rates with the stock market decline after 2001, which was even more significant and completely and totally unnecessary.
00:28:04.000 And it set in motion, a cause set in motion, a cause and effect that we are now living through.
00:28:12.000 Multiple decades of economic malfeasance, multiple decades of financial incompetency, or was it incompetency?
00:28:22.000 That's the question.
00:28:24.000 Are we living through the culmination of error?
00:28:29.000 Or are we living through the culmination of design?
00:28:37.000 How often do you hear, I'll pay for it later?
00:28:39.000 I mean, you can finance a boat, you can finance your medical bills, which is understandable.
00:28:45.000 You can finance anything.
00:28:47.000 That's not delayed gratification.
00:28:49.000 That's instant gratification.
00:28:51.000 I want the dopamine rush.
00:28:53.000 I want the easier life, max out my credit cards, and we're all dead in the long run, as John Maynard Keynes would say.
00:29:00.000 Our whole society embraced a cultural rot.
00:29:06.000 The Federal Reserve did.
00:29:08.000 Our economists did.
00:29:10.000 And the cultural rot was no more short-term pain, no more short-term pain, period.
00:29:17.000 You see, raising interest rates, it's like taking your cough medicine.
00:29:21.000 It's kind of awful, but it's necessary at times.
00:29:25.000 Or restricting the money supply or cutting spending.
00:29:28.000 No, no, no.
00:29:28.000 You can't tell people that you very well might need to make adjustments to certain programs.
00:29:34.000 I mean, I'll give you an example.
00:29:36.000 If you even suggest that future retirees of Social Security have to have the age raised slightly, you have a revolt on your hands.
00:29:46.000 People do not want to hear that.
00:29:48.000 Look at what's happening in Paris, right?
00:29:50.000 I mean, revolt, literally, revolts on the streets because of an appropriate move by Macron to raise their retirement age.
00:29:58.000 It's just totally out of control.
00:30:00.000 Short-term pain is not just important.
00:30:04.000 It is necessary.
00:30:07.000 Delayed gratification built the West.
00:30:09.000 I am going to live not the ideal life for myself, but I love my kids so much.
00:30:14.000 I'm going to do what is necessary.
00:30:16.000 We don't balance our federal budgets.
00:30:18.000 We don't balance our home budgets.
00:30:19.000 It's all about.
00:30:22.000 It's about me.
00:30:24.000 I'm the most important.
00:30:25.000 It is the rise of the modern self.
00:30:28.000 I am the center of the universe, the galaxy.
00:30:31.000 I demand the stock market goes up.
00:30:34.000 I demand I have a second home.
00:30:36.000 I demand that I have a good golf game.
00:30:38.000 It is the economic catastrophe we are living through.
00:30:42.000 Yes, has globalist World Economic Forum implications that I'll talk about.
00:30:45.000 But I think most of this can be explained away by just widespread, unchecked narcissism.
00:30:53.000 That's too bad because a country rooted in duty, honor, and obligation would balance its budget and not lower interest rates and not just care about the instant sugar high.
00:31:05.000 What we have done over the last 30 or 40 years is we have had a diet of Twizzlers, Skittles, MMs, whiskey, and rum.
00:31:14.000 And we wonder why we're a little hungover.
00:31:18.000 Play cut 38.
00:31:20.000 Now, the first step toward understanding the cause of inflation is to recognize that it is always and everywhere a monetary phenomenon.
00:31:33.000 It's always and everywhere a result of too much money, of a more rapid increase in the quantity of money than an output.
00:31:44.000 Moreover, in the modern era, the important next step is to recognize that today governments control the quantity of money so that as a result, inflation in the United States is made in Washington and nowhere else.
00:32:05.000 It's made in Washington and nowhere else.
00:32:07.000 Our leaders, the people in charge in both political parties, they just increased the guzzle.
00:32:13.000 Ah, who cares?
00:32:14.000 We're all dead in the long run.
00:32:16.000 We'll figure it out.
00:32:17.000 Lower the rates, increase the money supply.
00:32:19.000 What's the worst that could happen?
00:32:21.000 Understand the whole neoliberal project of invading the world and supporting the war in Ukraine and importing products that we don't need.
00:32:29.000 It's all based in delayed gratification.
00:32:31.000 I mean, instant gratification, not delayed gratification.
00:32:34.000 America First, at its best, is a movement that we care what happens when we die.
00:32:45.000 We care what happens beyond my life.
00:32:48.000 America First is about the restoration, not just the restoration, but the preservation that my children and my grandchildren, in fact, that is in the preamble of the United States Constitution, posterity.
00:33:03.000 And both political parties just continue to want to get drunk at the guzzle of cheap money.
00:33:09.000 And yes, now you're seeing globalist forces and Jamie Dimon come and sweep in and buy up these regional banks.
00:33:14.000 The cheap money is not ending anytime soon, but we did this to ourselves.
00:33:19.000 And you're living through something dramatic.
00:33:22.000 And our leaders, more importantly, did it to us because many of you did delayed gratification over the last couple of decades, but your leader certainly didn't.
00:33:31.000 Thanks so much for listening, everybody.
00:33:32.000 Email us your thoughts as always, freedom at charliekirk.com.
00:33:35.000 Thanks so much for listening, and God bless.
00:33:40.000 For more on many of these stories and news you can trust, go to CharlieKirk.com.