The Glenn Beck Program - Best of the Program ｜ Guests： David Buckner & Carol Roth

00:00:00.000 hey today you really missed a great show if you didn't hit it you're grabbing the podcast now

00:00:05.320 listen to the whole thing it's fascinating things you will not hear anywhere else uh first we have

00:00:13.320 ramaswamy on uh with um esg he'll give you a very clear and you know he's only a guy who started a

00:00:23.420 billion dollar company what does he know right he'll give you very clear uh what is happening

00:00:29.240 on that then we talked to david buckner he'll tell you what debt means and then carol roth we spent an

00:00:36.020 hour with her on on how how is this war going to affect your dollar and what does that mean it's

00:00:44.840 a high learning curve today and back to the number one book in america the great reset by glenn beck

00:00:51.780 it's available now it's amazing what having books available will do for sales right it's incredible

00:00:56.520 like it wasn't number one when we had no books to sell no we did something wrong yeah we're gonna

00:01:01.880 have to look back and retrospect and figure that out you can get the first chapter of that book at

00:01:06.120 glenn's new book.com and don't forget to subscribe to this podcast if you're not here every day

00:01:10.760 subscribe to it rate and review as well as studios america new episodes five days a week

00:01:15.760 and don't miss out on the subscription as well blaze tv.com slash glenn the promo code is glenn to save 10 bucks

00:01:21.540 there is a massive lie uh that uh you are being told and that is that esg and the great reset is

00:01:45.580 not what you think it is it's not what these crazy people say it is um well those crazy people that say

00:01:51.260 what it really is uh are the people that are at the top of the food chain the elites that have put it

00:01:58.280 together and put it into action uh and you know when we were working on this um esg legislation

00:02:05.220 up in uh up in idaho we're working with 20 different states idaho folded like a cheap suit

00:02:13.180 um and it's because they the the lobbyists are coming out and they are spending a fortune

00:02:20.940 to lobby against anyone who is trying to pass any kind of legislation against esg it it is

00:02:29.660 it's a lie when they say oh no this is just the free market no it's not no it's not it's the opposite

00:02:35.940 of the free market it is 21st century fascism vivek ramaswamy is uh with us he's the author of woke

00:02:43.040 inc and um vivek i wanted to get you on because you've had a couple of really great articles and

00:02:49.120 tweets lately and i just wanted to um kind of mine this and and have you explain what you mean by this

00:02:55.400 i wish ceos would say in public what they say in private about their views on esg and dei it would go

00:03:05.220 a long way towards restoring our trust in leaders esg represents the greatest social credit scoring

00:03:12.520 system in human history wow welcome to the program you want to go into that yeah absolutely glenn thanks

00:03:22.540 for having me and i and i'm really glad that a voice like yours is on top of what i think is the

00:03:26.840 defining issue of our time amen which is the use of the private sector to do through the back door

00:03:32.700 what government cannot do through the front door yes that is what the three let i call this the

00:03:38.460 three letter acronymized version of capitalism some call it esg some will say dei some will say

00:03:44.960 ccr behind it all is the ccp but whichever three letter acronym you prefer it is actually the

00:03:51.320 definition of modern crony capitalism which works in reverse it's not just companies bribing the

00:03:57.000 government to do their work it is also the government bribing companies in return to do their work back for

00:04:02.620 them and so you know look i mean i i'm an author i've written these books but i've also been a ceo

00:04:06.820 right i'm a founder and ceo fortunately of a multi-billion dollar company i was a hedge fund

00:04:11.200 partner for years before that and i wasn't born into lead america but i've lived it for the last 15

00:04:15.800 years i know how the game is played and i will tell you i had lunch with the ceo of one of the largest

00:04:22.040 companies in his industry uh publicly traded company and it was actually the day that i put out that

00:04:27.240 first tweet it was just i was so frustrated coming out of it because he i felt like his therapist the

00:04:31.840 whole time where he had read my book and wanted to complain to me about all the things that he had

00:04:36.400 to go through he's the ceo of the company mind you yeah and yet at the end of the day actually i look

00:04:41.780 back at some of the statements he's been making it's a carbon copy footprint of diversity and equity

00:04:46.760 inclusion must be part of our agenda esg is the way of the future but he it's clear to me he doesn't

00:04:52.880 mean the things he's saying but the actual loss of public trust in many ways comes from the fact that

00:04:58.780 even when the words are coming out of the ceo's mouth whether you're on the right or the left

00:05:03.080 you know that you can't believe them and so that's a big part of what i meant by that that particular

00:05:06.820 remark so it is it is truly terrifying when i was working um against these lobbyists small banks

00:05:14.880 local banks were coming to uh the representatives in the state and saying please i cannot say this out

00:05:23.160 out loud um but please pass anti-esg legislation or we're all toast please pass this people are not

00:05:32.480 willing to say it out loud and that's killing us it's killing us that is that is the culture of fear

00:05:38.660 and look to me the best health of the measure of any democracy especially american democracy is the

00:05:44.520 percentage of people who are willing to say what they actually think in public correct and when there

00:05:50.000 is no doubt that we are doing worse than any time i can remember in my lifetime on that metric

00:05:54.940 because we have combined the use of economic force with the normative questions that we settle through

00:06:01.100 a democracy and so you know look at democracy you're supposed to settle questions through persuasion

00:06:05.460 through free speech and open debate in the public square maybe you and i would have one view on climate

00:06:09.920 change and appropriate policy towards it maybe somebody else would have a different view or how do we

00:06:14.580 correct for racial injustice somebody else has a different view great in democracy we talk in the open

00:06:19.500 in the civic sphere and persuade each other what the esg and related stakeholder capitalist movement do is

00:06:26.080 they substitute economic force firing you excluding you from the economy etc they use that force as a

00:06:33.820 substitute for free speech and open debate and the esg movement in particular uses the force of capital

00:06:39.160 ownership in companies to do it where you have an ideological cartel of 20 trillion dollars in the hands of the top

00:06:46.620 three asset managers in this country blackrock state street and vanguard that go to the top companies in

00:06:51.600 this country show up as the shareholder and say that we are the shareholders we want you to you know

00:06:56.740 implement diversity equity inclusion cut your carbon emissions if you're an oil company stop producing oil

00:07:02.120 but guess what the people whose money they are using to wield that power are your listeners are me are you

00:07:09.160 are our everyday americans whose money is being weaponized back against them in ways that would

00:07:14.460 make their blood boil if they actually knew what was going on that's why that's to you for teaching

00:07:19.740 them what's going on well that's why it is so frustrating we just had a secretary of uh uh or the

00:07:26.480 state treasurer of idaho fold and uh take a tough esg bill and just put one in it without any teeth

00:07:34.720 and the whole idea was don't invest in um places like blackrock that are working against the people

00:07:43.920 of our state by is this julie ellsworth you're talking about why do you why do you ask i was

00:07:51.220 as a state treasurer idaho you were mentioning yeah i mean it's just that these are do you know her

00:07:55.420 intention people they're well i mean i spoke to a conference of the state treasurers yeah a couple

00:08:00.420 of months ago and most of them were in the audience and i was explaining to them look

00:08:03.780 it's not blackrock's money it's not your money either it is the money of your citizens thank you

00:08:08.960 that ultimately actually find their way into the public's fisk which in turn finds its way

00:08:14.020 into the fisk of blackrock which then uses that money to vote those shares and to whisper campaign

00:08:20.900 in the ears of the top 500 ceos of this country to say that this is what we as the investors want

00:08:25.940 betraying the idea that it is not the state treasurer's money it is not the actually it is not the

00:08:31.420 blackrock manager's money it is the money of those everyday citizens now here's what i'll say about

00:08:35.680 state treasurers is many of their hearts are in the right place actually many of them are starting

00:08:40.700 to wake up to this phenomenon because they're hearing from their constituents many are unlike

00:08:44.660 blackrock ceo unlike larry fink they are politically accountable and that is a good thing that is how a

00:08:49.760 democracy works yes so that mechanism of political accountability has caused them to wake up

00:08:54.120 but they're also accountable to the force of dollars through lobbying and political contributions

00:08:58.860 that pull them in the other direction but i think that at the end of the day they're accountable

00:09:02.740 to the people and what we need to educate people on is the fact that it is their own money that they

00:09:08.380 get to vote as well not just vote every november at the ballot box but their second vote and their

00:09:13.760 third vote come through the capital they spend the way their shares are voted in the marketplace of

00:09:18.860 corporate america and i think that that tide is getting ready to ship so i'm optimistic that even though

00:09:23.900 many of these people it's going to take a lot of courage for the first few state treasurers to sort of

00:09:27.880 jump at the deep end of the pool and go the other way but but i think that that's what the people are

00:09:32.080 demanding and the more we shine a sunlight on the problem the more we make progress towards the

00:09:37.380 solution and i'm personally working on actually creating alternatives in the marketplace here to

00:09:42.580 provide consumers with men actually bringing a voice to the table thank you the most important

00:09:47.460 problem thank you thank you thank you i agree i think this is this is it i mean if this is implemented

00:09:53.260 we become china uh and it's it's over the freedom that we have the constitution means nothing

00:10:00.300 and i think the best example of this and people aren't tying this together

00:10:04.640 we're not the ones that that have uh decided to go to war against russia these sanctions

00:10:14.920 these are not governmental sanctions this is esg mcdonald's pulling out after they said they didn't

00:10:23.120 want to and then they they they announced i thought this was amazing that they're they had real

00:10:28.900 reputational risk that they had to consider so they closed mcdonald's these decisions are yeah are not

00:10:36.100 being made through public pressure they're not being made through uh our elected officials they're not

00:10:42.720 being made by by people voters regular people they are being made by the boardrooms after they get

00:10:49.540 the calls from the banks and the financial industry exactly and you know what this is how both sides are

00:10:56.720 duped into submission liberals and conservatives liberals used to be skeptical of corporate power

00:11:01.040 but they've accepted it as corporate powers now used to advance their own objectives we conservatives for

00:11:06.720 our part are duped into submission because they say the free market can do no wrong without recognizing

00:11:11.620 that that free market does not exist today and both sides are duped to the rise of this woke

00:11:16.660 industrial esg industrial complex that's actually far more powerful than big government alone because

00:11:22.220 it can work with the private sector to do what big government cannot do and i and i think when you're

00:11:27.240 on this i don't need to i feel i feel a little shy preaching to you but i think the i think the defining

00:11:33.080 political force of our time and struggle is not left versus right actually yep it is the everyday

00:11:38.300 citizen versus the managerial class it is the great reset which calls for dissolving the boundary

00:11:44.580 between institutions globally yes those institutional leaders work together towards their vision of the

00:11:49.400 common good versus what i call the great uprising which is also a transnational movement of everyday

00:11:56.560 citizens yes beginning to say no we make those decisions in a democracy together it is our voice that

00:12:02.880 matters equally to larry thinker anyone else sitting in a corner office and those two forces glenn i believe

00:12:09.040 are on a collision course you know we won't see in 2022 because it's the let's go brandon agenda or

00:12:13.720 whatever in partisan politics the united states that's boring to me but in the couple of years after

00:12:18.480 this is coming to a head it is an existential question for democracies in the west and you know

00:12:25.040 look i'm on the side of the great uprising but i want to channel that energy in a productive

00:12:28.920 direction me too and i think we can do that you know and i think and i think it's the most important

00:12:32.720 question of our time i just said um a few minutes ago that republicans you better wake up to this right

00:12:39.440 now because the people will go if they don't find somebody that's reasonable to lead them and to tell

00:12:46.500 them the truth i'm telling you both sides both sides of reasonable people that work for a living i don't

00:12:53.780 care how you voted they're going to find out what this is all about and they're going to be hurting

00:12:59.240 financially and god help us god help us uh we are headed for real trouble and you know what um

00:13:07.820 vivek you're the only person that i've heard that really talks about the whole world is in that we're so

00:13:13.980 we're we're so focused on ourselves that we don't understand that brexit is about the same kind of

00:13:22.900 thing and the truckers in canada yes same thing in their bones do this is a this is a transpartisan

00:13:29.600 transnational issue and you know what i don't have much faith in the republicans actually i don't

00:13:34.720 either at the end of the day they're most of them are institutionalists most of them are bought and

00:13:39.480 sold just like the other side yeah that's why i think the partisan politics of this is boring it

00:13:44.380 misses the issue it almost deflects the issue by retrofitting a model a historical model onto a

00:13:49.540 phenomenon right now that's totally different it is the everyday citizen versus the managerial class

00:13:55.060 and there are members of both parties in each camp i mean you and i both spoke at cpac tulsi gabbard

00:14:00.120 she spoke at cpac she ran for president of the united states on the democratic party ticket correct

00:14:03.600 she's still as best i could tell from her comments on the side of the everyday citizen and so there's

00:14:07.440 people and there's a god knows there's a lot of republicans on the side of the managerial class and so

00:14:11.500 i think that we need to rethink the boundaries and i think it's everyday citizen versus managerial

00:14:16.020 class it is great reset versus great uprising that's the way we need to be recognizing this

00:14:21.580 you know beyond partisan beyond beyond national boundary issue and i will last point i will make

00:14:27.240 is glenn you're one of the few people who i've heard actually put his finger on the international

00:14:32.320 dimension of this you just did a little bit ago but i think china is really really an important factor

00:14:37.700 to watch because they understand that capitalism all right is the trojan horse through which they win

00:14:44.040 the great power struggle yeah greece would have never defeated troy militarily china will never

00:14:49.140 defeat the united states militarily but they have recognized that the esg link movement creates an

00:14:55.280 opportunity to turn our own multinational companies based here into trojan horses to undermine our own

00:15:01.780 agenda from within and i'll give you a very specific example okay yeah i could give you countless

00:15:06.380 examples i talk about countless examples in my book but a recent one even for my book or not not for my book

00:15:10.460 after my book is black rock okay they take four they take three seats vote in favor of three changed

00:15:17.240 seats on the board of exxon okay and they tell exxon that you need to cut oil production well they call

00:15:23.360 that esg friendly let's see what that's done for gas prices here let's see what that's done for our

00:15:27.280 reliance on foreign producers of oil one year later but put that to one side you think those projects

00:15:32.940 are still going to happen or are they not going to happen whatever you think about climate change and

00:15:36.840 carbon emissions those projects are still going to happen and better positioned to take on those

00:15:41.920 projects are going to be none other than the likes of petro china which can take on the projects that

00:15:47.980 exxon draws and guess who is an almost equally large shareholder of petro china i'm sure you can guess

00:15:54.580 it's the same guys who wanted us to cut oil production here in the united states black rock unbelievable

00:16:00.900 this is this is unbelievable where at the end of the day china is able to use capital force

00:16:06.380 the carrot of market access to the to the golden goose of the chinese market as a weapon to get those

00:16:14.240 same companies to weaken the united states within by applying so-called esg standards without applying

00:16:19.360 those same standards to china abroad and so that's how they're playing this game and they're playing us

00:16:24.360 like a chinese mandolin and it is working but it'll only work for as long as we don't see it

00:16:28.340 vivek i would love to have you on again soon you 100 get it and your voice needs to be heard

00:16:35.540 vivek ramaswamy uh he is um the author of woke inc if you haven't read it yet you should get it

00:16:41.920 great to talk to you vivek we'll uh we'll talk again hopefully soon

00:16:45.500 this is the best of the glenn beck program and we really want to thank you for listening

00:16:58.340 we've been talking david buckner he is a professor at columbia university he's one of the only

00:17:06.000 one of the only uh professors that i would ever trust especially from columbia university

00:17:11.240 uh he is a president of bottom line training and consulting he works with companies all over the

00:17:16.820 world he has been a guy that has been explaining um you know the economy and how money works for me for

00:17:24.760 a very very long time used to see him on fox news with me um we were just talking about what

00:17:31.440 has happened because of the war and what's going on with our money so let me i've got three questions

00:17:37.700 for you david let me start with this i keep reading that this war and everything that's going on

00:17:44.780 is a uh is an anti-globalist movement but i think that's elite talk because i think what this

00:17:52.160 actually is um you know to the average person it's not anti-globalist it is dividing the world

00:18:00.440 into an axis and allied power where it'd be the united states and europe and then there would be

00:18:06.480 china russia you know afghanistan india pakistan all the way to saudi arabia uh and god forbid taiwan

00:18:14.720 and if we lose taiwan and maybe we lose the southern pacific as well with uh australia but that is

00:18:22.300 there's a group that will have their own economic system and their own way of doing business and then

00:18:28.840 there'll be the west am i reading this right or wrong well we're dealing with something right now

00:18:36.820 glenn you're you're not wrong in your observations of kind of where it's going the we're we're we're in a

00:18:44.340 position where the united states was kind of the only superpower remaining correct and you see many

00:18:51.940 that are observing it see the division within the united states there's so much discombobulation and

00:18:56.280 discomfort in the u.s because it's a country that was kind of built on the idea of fighting something

00:19:01.040 you know the the whole idea of of the founders etc was we're we're here fighting tyranny etc and there

00:19:07.280 was nothing else to battle and so there's kind of the psychology of where does the u.s go and

00:19:13.060 and as you start to look at this world you end you you've always established systems and systems

00:19:19.980 have worked we had a monetary system we had a political system we had even the united nations

00:19:25.760 was kind of a system and and now we're starting to see systems cannot they're not broken they're

00:19:32.740 circumvented cryptocurrencies have circumvented monetary systems to where we don't have systems that have to

00:19:40.600 be relied upon for people to make exchanges you're getting a barter market where they no longer i mean

00:19:47.020 facebook marketplace you know what i mean yeah are being blown up to where either that lends itself to

00:19:55.020 a natural system of chaos okay which some would love to have i'm sure or a system where a pure market

00:20:02.920 overtakes the old structure of planning and you're starting to see with some of the commentary that's

00:20:08.420 coming out of leadership in russia that they don't they don't want to lose their their i mean even

00:20:14.840 that the leader has suggested he doesn't want to lose his position he wants to go back to the old

00:20:19.780 soviet union in some ways but i don't know if he's seeing that you can't unmarket something it becomes a

00:20:27.760 black market perhaps but you can't unmarket it well they i mean it's a market i think that's why we're

00:20:35.980 talking about um you know um a digital programmable dollar uh from the fed because they think they

00:20:45.220 can kill the black market they can control it all the way down to the the very the very bottom level

00:20:51.740 but that would assume adoption that would assume that we all adopt that you're finding the youth of

00:20:59.260 today glenn they don't have bank accounts and they don't carry currency now to your point they use

00:21:07.300 digital exchange venmo and other things right right so they they may be being wooed into a system that

00:21:14.860 could be monitored but i i dare venture that i'm not sure that they're being wooed into a system that

00:21:21.060 and it could be manipulated as well to be fair but i'm not sure as soon as they were to find that

00:21:26.060 that system is being managed they might adapt to a different system you're finding more pure market

00:21:33.180 movement yeah that you would have to adopt a digital currency and people would have to assume that that's

00:21:40.080 the only mechanism by way we would exchange for that to be truly as viable and productive as many of

00:21:46.320 those you know that are building it would say so you're seeing movement in this market which is

00:21:51.880 really quite fascinating and it's disconcerting for those who want control correct it's heartening for

00:21:58.620 those who think they're going to be controlled and it's enabling for those who think oh my gosh

00:22:04.000 if this doesn't work i can try something else i mean you go from it you know if you go to social

00:22:09.780 media it used to be facebook and then it went to now now you're getting snap and now you're getting

00:22:14.420 everybody moves they keep moving moving moving away from less control to more individual control so

00:22:21.880 that may be the one redeeming component of all this david do you uh do you agree that we are operating

00:22:27.540 now in the united states under modern monetary theory by default we are moving away from traditional

00:22:35.040 structured monetary components that's the way i identify it because while the the monetary structures

00:22:43.320 are in place they're less relevant today than they've ever been and that that changes the whole

00:22:50.800 dynamic and the conversation when you say liquidity the youth of today don't don't there's just no

00:22:58.000 mindset around i gotta go to a bank i've gotta show my credit rating i mean they're they're venmoing

00:23:04.160 each other loans all over the place that's a completely informal market and that's the way it's

00:23:09.560 going to transform exchanges globally i'm talking not just in our neighborhood global transactions

00:23:15.960 and cryptos are going to play into this a bit to the degree we don't know okay but it's going to

00:23:22.920 deep it's going to remove the formality to so to your question yes so it will remove it will

00:23:29.720 remove the formality unless the nations decide they want that control and they're they're moving that

00:23:38.160 way through esg whether they can actually pull it off before people rise up and go whoa whoa whoa whoa

00:23:44.520 whoa wait what um you know that remains to be seen um i accept that i accept that glenn with this

00:23:52.600 exception we in many countries that are highly planned where i've been i mean you you know we've

00:23:59.400 been friends for a long time and the number of countries i've traveled i know that are supposed to

00:24:04.660 be planned they're supposed to be very closed instruction to be fair i've not been to places

00:24:09.220 that are closed okay right but the ones that are highly planned are more market internally than you'd

00:24:15.400 ever imagine now we would call it a black market and they might even call it an observed market because

00:24:21.260 as long as they don't disrupt the governance they allow them to occur but they're highly um uh market

00:24:29.520 driven by barter systems so even with this can they control us i think i think the the the the box is open

00:24:37.860 and you can't un-market a place it will be a black market but we don't have the controls that we once had

00:24:45.960 or the closed borders or the boundaries or the walls you can't even build a wall anymore around a marketplace

00:24:51.680 when you have a a mindset of a venmo use of today that can exchange in 15 seconds something that we

00:24:58.500 used to have to transfer through transactions and a bank they don't use a bank they're using these

00:25:03.700 clearinghouse mechanisms that are so on uh so fluid that they don't understand really that you actually

00:25:11.280 have to have one centralized look that's why some of these crypto conversations are so fascinating

00:25:17.120 is because they've overtaken the structure and to your point can we re-box that i don't know i don't

00:25:26.060 think i think i think you can until it hits critical mass and i don't know what that number is that market

00:25:32.260 cap is but as soon as you have too many people with way too much money into it then i don't think you can

00:25:41.520 i don't think you can put it into a box um david last question i've only got a couple of minutes um

00:25:46.780 your thoughts on inflation and where we're headed well we're we're dealing with uh a debt that is

00:25:55.900 frightening the 30 trillion dollars with the debt ceiling that continues to increase we're we're

00:26:00.880 double spending every year and anytime you hear uh leaders suggesting that they're going to reduce

00:26:07.500 our deficit by a trillion they don't they don't explain the fact that we're spending four trillion more

00:26:12.600 than we're taking in right so reducing that down to only spending three trillion the expenditures the

00:26:18.420 inordinate amount of expenditure into the economy in the name of what we've gone through which is covid

00:26:23.540 and and the the reality of that is is organically setting us up for a significant hit on inflation

00:26:33.520 it's not just a check mark for 15 seconds we're dealing with significant inflationary pressures

00:26:40.280 and now you're going to start seeing that that will increase especially with interest rates and

00:26:45.140 other things dominoing i worry for the next you know period of time that the disparity between rich

00:26:50.800 and poor will become even greater because those who hold property where real estate goes up in an

00:26:55.880 inflationary time and those who are renters where rent goes up and they can't pay for it that

00:27:00.480 disparity gap is going to be enormous creating even greater problems and discomfort on this inflation

00:27:05.660 so it's it's real glenn it's real thank you david it's good to talk to you again thank you so much

00:27:11.680 always good yeah god bless you god bless you my best to your family david buckner uh from columbia

00:27:17.460 university don't hold that against him uh he's the guy who i met years ago who came up to me at a uh

00:27:24.580 some event and he walks up to me and uh i'm of course at the food table and he said uh where'd you get

00:27:32.400 your economic uh degree and i thought you i said i don't have one he said i knew it and i was about

00:27:40.660 to punch him in the face and and that's when he said i cannot get my students to think like you he

00:27:46.480 said you've got to think out of the box and this higher education all it does is put you in a box put

00:27:52.820 you in a box put you in a box and the only way you see trouble is if you don't think that way you know

00:27:58.200 uh that's a good david buckner story and of course the david buckner story maybe most famous is the

00:28:03.020 one where he passes out on fox news however my favorite david buckner story yeah is when we did

00:28:09.300 a stage show and you were going to explain the economy and you decided you were going to explain

00:28:13.900 it like the economy was a car it was a convertible and you had this grand of course you're getting us

00:28:21.800 to run around and try to find a convertible like 10 minutes before the show yeah they bring out this

00:28:25.720 old school convertible and david buckner is going to be part of the show he's going to help explain

00:28:29.600 the economy and so i don't know 15 minutes before the show thousands of people out there all in their

00:28:35.200 seats you decide instead of i don't know instead of me calling out david you know a half an hour

00:28:40.720 into the show like i was going to what i'm thinking of doing is i'm going to just have him out there

00:28:44.960 and i'll just bounce ideas off of him the entire time we'll go back and forth and david i want you to

00:28:49.480 just come out and you just start in the car you're sitting in the convertible on stage and then i'll just go

00:28:54.440 back and forth with you the whole time and and he's like yeah absolutely glenn whatever you need

00:28:59.220 so he goes out there he sits up the camera the uh the curtain goes up yeah david buckner this

00:29:04.360 economist that no one you know they know him from the show maybe but like you know they don't know

00:29:08.720 why he's sitting in this car or why the car is why the car is even there so glenn comes out

00:29:13.540 does a totally unrelated monologue for like 45 minutes without introducing david at all

00:29:21.520 or the car or the car so there's just a car with a guy sitting on stage with no explanation

00:29:28.240 for the entire show the curtain goes down and then oh sorry david i'm sorry i never got i don't think

00:29:36.240 you ever got to him and asked him a question the entire show oh david i don't know why you're still

00:29:44.400 my friend i don't know either the best of the glenn beck program

00:29:50.320 carol welcome to the uh welcome to the glenn beck program hey glenn lots of things to talk about

00:30:02.720 yeah boy i've got a long list for you too um so let's let's start with what happened yesterday

00:30:08.420 and why people should care so i want to take a step back and talk about you know why the fed

00:30:15.860 did what it did in terms of raising interest rates what we call 25 basis points or a quarter of a percent

00:30:23.400 100 basis points is one percent okay and basically they were undoing um the if at least attempting to

00:30:31.700 start to undo the effects of what they in part cost their monetary policy zero interest rate policy

00:30:40.100 printing trillions of dollars the government spending trillions of dollars in terms of fiscal stimulus

00:30:47.220 turning parts of the economy off and wrecking the labor market and the supply chain all of those things

00:30:54.980 are the reasons we have inflation today exacerbated by decisions that the biden administration made

00:31:01.460 around oil and gas dependence and whatnot so basically we had um inflation which we've all

00:31:07.700 been talking about and seeing as we go to the grocery store and certainly at the fuel pump and whatnot

00:31:14.100 and so finally they said we have to do something now i'm going to tell you this is a little bit of

00:31:19.780 window dressing because they were doing accommodation they were in the market purchasing securities last week

00:31:27.540 so last week they were being accommodative but this week we have to maintain our credibility and we

00:31:33.620 need to do something so they decided to raise what is called the fed funds rate it's a rate where banks

00:31:41.060 lend to each other overnight in terms of their reserves and that reverberates through the market so they

00:31:47.220 had brought that down to a target of zero to a quarter of a percent and they had held it there for the last

00:31:54.340 couple of years and they said okay well you know inflation's getting away we better raise some

00:31:59.380 interest rates one of our tools in order to do that and they took the huge step of a whole quarter of a

00:32:05.860 point increase to do yeah very very very meaningful because they need to be credible right the last time

00:32:12.340 we had this problem of this size it took an interest rate of about 19 or 20 percent uh if i'm not mistaken

00:32:19.860 um raising it a quarter is is really is is a joke where do you think these interest rates should be

00:32:30.980 not not considering killing the economy i just where it should be should it if we were in a healthy country

00:32:37.940 still would it be 20 percent or more so there are a couple things to unpack there first of all this is an

00:32:45.380 unprecedented situation we don't have a benchmark because we've never had central banks not just

00:32:51.220 in the us but around the world printing trillions upon trillions of dollars this has just never

00:32:57.700 happened before we've never had governments turn off the economy you never have a situation where

00:33:03.940 there's 1.7 jobs available for every job seeker because of what the government did so we're flying a

00:33:10.980 little bit blind um i've always been a fan of normalized interest rates i think it's a horrible

00:33:17.780 idea to have the fed meddling and trying to direct things i want you know i want the market to set it

00:33:23.860 and so before all of this nonsense started before the financial crisis the great recession financial

00:33:30.100 crisis in 07 08 which was really the first time we we went totally off the rails with the zero interest

00:33:35.940 rate policy and the purchase of securities the interest rates were around you know five plus

00:33:42.340 percent and you know that seems to be you know a healthy place where things should be we should not

00:33:48.420 be in a place where we're saying um you know when you take risk you shouldn't be getting rewarded for

00:33:52.820 it you know zero percent interest it makes no sense so in reality i mean we're still at very historically low

00:33:59.940 interest rates and in a healthy economy you know to have three four five percent would be completely

00:34:07.460 acceptable we just have been so addicted to this easy money and this free money for so long

00:34:14.100 i'm not sure how we get out of it okay so there's a couple of problems with five percent interest

00:34:20.340 rates right now one would be that people would not be able to afford new house etc etc because of inflation

00:34:26.500 everything else but the other that nobody ever talks about is we now have a national debt over 30

00:34:33.220 trillion dollars and that is just like buying a house you have an interest rate on that if we had an

00:34:40.820 interest rate of five percent how much more money do we have to pay bingo this is the dilemma that the fed

00:34:50.980 has gotten themselves into by keeping down interest rates they've basically given the government a free

00:34:57.380 pass to just spend and spend and to rack up more and more debt and we're at a point where the debt is

00:35:03.220 completely out of control and you know has exceeded our level of gdp so if you think about 30 trillion of

00:35:11.540 debts and obviously the fed funds rates and the interest rate on the debt isn't a one-to-one correlation but

00:35:17.540 we know that as one moves up the other moves up so in terms of the interest on our national debt i want

00:35:23.300 everyone to pay very close attention because this is staggering for every one percent increase that is

00:35:30.580 another 300 billion dollars that we have to pay in interest on the national debt that is our tax dollars

00:35:40.420 that are going to pay more for things that we have already purchased it is not new purchases it's

00:35:47.940 literally a finance charge a almost like credit card interest rate on stuff we have already bought

00:35:54.340 and this is the dilemma the fed has because they know as they raise interest rates this is going to get

00:36:00.660 out of control the cbo had made a projection that's saying that this is going to get out of control but in

00:36:07.620 their projection they said well you know we think the yield on the 10-year treasury note gets to about

00:36:14.260 2.1 percent in 2025 so you know we're going to have to really be concerned maybe in 2029 the yield on the

00:36:23.540 10-year treasury note is at that 2.1 percent today so i don't know please talk down to me like i'm in

00:36:30.980 kindergarten i i don't understand the yield thing with the treasury how that works how that's affected

00:36:37.140 so can you explain that yeah so basically um it's you know how much the government has to pay on the

00:36:44.260 debt on debt so it's what the market demands and obviously um you know if there is a lot of demand

00:36:51.460 for treasury securities right uh the prices that go up then the the yield or the interest that you

00:36:58.740 demand is lower because there's a lot of demand you have to pay a lot for your debt but we had been

00:37:03.620 at very very very low even because the fed was buying up there was no demand for our uh our

00:37:11.540 treasuries uh which is our loan so let me put it in context what we are paying currently on our

00:37:18.260 national debt in terms of a combined interest rate is somewhere in the neighborhood i've seen

00:37:23.620 projections of you know 1.4 percent to 1.6 percent so they've been able to finance that

00:37:29.620 at a very low rate but that number is starting to creep up and with the fed increasing interest

00:37:36.900 rates it will further creep up and every one percent is 300 billion dollars so if we have an

00:37:44.500 interest rate of five or five or six percent we're talking like between two and three trillion dollars

00:37:52.500 more the entire budget exactly it's just completely untenable at that point in time so um

00:38:01.380 i would i would imagine other things happened um in the interim but you know this is why

00:38:06.660 when we talk about things like mmt modern monetary theory or why i call it magic money trade that says

00:38:13.300 you well you can just print into infinity because we can just print more well we are now living

00:38:18.260 through that real-time experiment as we've all said no you can't it causes inflation it has

00:38:23.780 real costs for the average american and it decreases the value of every dollar that you hold all right

00:38:30.020 so the best thing you can do is get out of credit cards you should cut those up if you can uh and pay

00:38:37.860 them off if you can get a refi right now because you're probably paying about 16 percent for your credit

00:38:43.780 cards correct uh uh yeah i mean and it could be going up and anything that has that adjustable

00:38:52.420 interest rate associated with some people may have something called an arm and adjustable rate mortgage

00:38:58.260 where it's you know it adjusts over time maybe it's fixed for a certain number of years but then

00:39:02.980 it starts to float anything that is adjustable rate debt is going to increase in price and if you

00:39:08.820 if you need financing let's say you have a business and you haven't taken advantage of low rates

00:39:14.580 yet you're going to want to lock that in on a fixed basis now because it's not going to get cheaper

00:39:19.460 anytime soon now the other problem the the problem with raising interest rates is let's say you have

00:39:25.860 a business and you need a loan if if the interest rates start to go up that kills that business

00:39:33.220 they can't afford that loan just like we can't afford our national debt or you want to buy a house

00:39:39.940 yesterday mortgages the new mortgages fell immediately uh or just on the the whisper that

00:39:47.620 it was coming we are seeing a slowdown in mortgages which means that people are going to buy fewer houses

00:39:54.740 the the scary thing about this is you don't know where that switch is you just kind of have to guess

00:40:01.220 and it might shut everything down that's the needle that the fed is trying to thread in addition to

00:40:08.980 dealing with the consequences of the national debt what happens is as they raise interest rates you know

00:40:15.460 their intention is to slow down the economy i mean that's basically what it is they want to slow down

00:40:21.540 consumer demand but the question is you know how do you do that without creating a recession or without

00:40:29.220 uh creating reverberations for the economics of the average american can i be really really cynical

00:40:37.140 i mean let in fact let me go beyond cynical let me go into i'm a thriller writer okay and i'm writing a

00:40:44.180 thriller and for some reason this country needs to slow down the economy but they can't slow down the

00:40:51.940 economy because then businesses will fail but they don't really care about the average person you know

00:40:57.300 what i mean that's gonna fail that's fine we'll print more money we'll put them on welfare tell them

00:41:01.300 to stay home or whatever um wouldn't one way to slow the economy for the consumer but not slow the economy

00:41:11.780 for the big corporations would a war do that um i think that would completely change the tenor of the

00:41:24.260 economy but uh i think that raising the interest rates does that because kind of like we saw over

00:41:31.140 the last couple of years if you are a big corporation you can take an advantage of that debt you have that

00:41:38.260 war chest you have that strong balance sheet so in terms of the transfer of wealth um you know that is

00:41:45.300 one way to do that but the war you know that would completely change the tenor of you know who um benefits

00:41:52.260 um benefits and certainly it would be the bigger guys versus the smaller guys but it would probably

00:41:57.620 be folks in you know defense um rather than the financial services industry for example all right

00:42:03.860 so i i want to talk to you about the dollar being the world's reserve currency um because i'm watching

00:42:13.860 the sanctions that are being put on and i'm seeing things happen to where if i'm another country

00:42:20.660 especially russia i'm going to china immediately saying i want to partner with you because they just made

00:42:27.780 my money worthless i can't get my money out of the central bank the federal reserve that that's my money

00:42:35.780 and they won't let me get to my money um if that starts to happen and then saudi arabia starts to sell

00:42:43.140 oil off of the petrodollar that's really bad news and let's say the west holds together

00:42:50.580 but half the world is off the petrodollar what does that mean for us carol um it potentially means

00:42:59.300 the end of the u.s dollar as a reserve currency explain what that means because okay i mean to

00:43:07.300 the average person forget about you know the central banks and everything else what does it mean to the

00:43:12.660 average person to have half the world get off our dollar ship them back so so this is why i love you

00:43:19.300 glenn is because we take the most complicated concepts in the world and try to explain them

00:43:25.140 as if uh you know it's elmo and big bird here um the idea of being the reserve currency it's something

00:43:32.980 that um you know has sort of long history and it means uh particularly in the case of goods and services but

00:43:40.580 also in the case of oil that everyone in the world pretty much agreed to use dollars for settlements

00:43:47.460 and that puts some responsibility on the united states there's something that is called the triffin

00:43:54.500 dilemma and there's an economist back in the 1960s who basically said there's a conflict if you are going

00:44:01.780 to be the world reserve currency you're going to have to make tough choices and you're not always

00:44:07.140 going to be able to do what's right uh at home in order to make sure you're doing what's right

00:44:13.860 in the national sphere yeah and unfortunately um you know this has been an issue that's been going on

00:44:20.420 for a long time but in recent times as we've been talking about with the fed and the decisions that

00:44:26.020 they've made they actually haven't done right by either party they've been screwing over the average

00:44:33.300 american with their policy and transferring wealth but they've been doing the same thing in the national

00:44:38.340 sphere and frankly a lot of countries are getting sick of it and so there have been predictions for

00:44:44.500 quite some time that there was going to be an event um an advisor actually to the oecd said that

00:44:51.780 it's probably not an economic event it's a geopolitical event that's going to expose this system you

00:44:58.980 know wink wink nudge nudge um and so a lot of folks feel like the sanctions that were made against

00:45:06.580 russia were potentially a cover story that we know we are potentially going to lose this reserve currency

00:45:14.340 status so we're going to say well we did it because we had to take a stand but the reality is you know as

00:45:22.660 we've now shown the world you can put your money in our central bank and you can buy treasuries and

00:45:28.900 u.s dollars and hold them but you might not be able to access them which is not a really good

00:45:34.180 thing if you're going to be the world reserve currency so there are a couple of potential

00:45:39.540 outcomes and i know that you've been uh you know talking about this glenn um but you know one thing

00:45:45.460 that folks have been talking about is you does china potentially step into the reserve currency position

00:45:52.820 there is an issue around that because usually if you have the reserve currency you run a trade deficit

00:46:00.500 and we know that china is a nation of exporters so are they really going to step into that i'm not sure

The Glenn Beck Program - March 17, 2022

Best of the Program ｜ Guests： David Buckner & Carol Roth ｜ 3⧸17⧸22

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