Best of the Program ｜ Guests： Larry Keane & Carol Roth ｜ 6⧸21⧸22
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Summary
The Supreme Court came out with something really, really good for religious freedom and school choice. We have all of that in today's program. We also told you about what's going on with ammunition and how the government is in a public-private partnership with the private firm, Winchester. That's why you're finding it very difficult to be able to find 556 or 223 in the last few days.
Transcript
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Hey, great podcast today. The Supreme Court came out with something really, really good
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for religious freedom and school choice. Stu will have all of that in today's program.
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We also told you about what's going on with ammunition and Winchester. The government is
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in a public-private partnership. Somebody at Winchester has leaked what's going on. That's
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why you're finding it very difficult to be able to find 556 or 223 in the last few days.
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That's the number one ammunition for the modern sporting rifle, otherwise known as the IR-15.
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The government is trying to stop the commercial sales on that. That's first out of the shoot.
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We also talk about Bitcoin, what's coming in our economy with Carol Roth, and so much more. Today
00:00:48.740
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You're listening to The Best of the Glenn Beck Program.
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So there was a story, I think it was last week in The Federalist, and we saw it, and we began to do
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our own homework on it, because it was very, very disturbing. And it came out of The Federalist.
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While Democrats claim to engage in talks on bipartisan gun legislation in good faith,
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the White House is behind the scenes trying to shut down nationwide ammunition sales.
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In northwestern Missouri, major government-owned ammunition plant is now facing closure as the
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Biden administration escalates its war on American gun owners. The Lake City Ammunition Factory is one
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of the largest manufacturers of 556 and 223 ammunition, which is the most popular caliber for
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the most targeted firearm in the country, the AR-15. In operation since 1941 to produce ammunition for
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the U.S. Army, the government contracts with the private firm Winchester to run the enterprise and
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sell any excess supplies to the open market. So here's what happened. Winchester called them,
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I'm sorry, the government called Winchester, apparently, allegedly, and said, you know,
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you got a cute little business going on here, and it'd be horrible for something to happen to that
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business, you know what I'm saying? So what I'd like you to do is maybe stop selling the 30%
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of the ammunition to the private market. And Winchester said, most likely, well, if we do
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that, then if there's a war, we can't ramp up to be able to make more ammunition for the war machine.
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I don't think you heard me. You're gonna stop selling that ammunition.
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Now, celebrity voices are impersonated in this scenario, but I think that's pretty much what
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happened there. Otherwise, maybe we find somebody else to make our ammunition, you know what I'm
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saying? So public-private partnerships always work out so very well. So we started doing our homework.
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It looks like Susan Rice was involved in this. But again, nobody's talking because they're all
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afraid of their legs being broken. One group that we have spoke to that knows the situation very well
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is the National Shooting Sports Foundation. And we have Larry Keene on with us. Hello, Larry, how are you?
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Very good. Very good. So, you know, I know, I know it wasn't quite as mob-like, perhaps with Susan Rice
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involved, maybe it was more. But can you tell me, is the gist of what I just said, correct?
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I mean, basically, yes. Winchester was contacted by the army that runs or owns the Lake City
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ammunition facility that Winchester runs under a contract. And they were told that the army
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is considering issuing a policy edict in which Winchester would no longer be able to sell into
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the commercial market excess ammunition above the needs of the military to the commercial market,
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which accounts for between 30 and 40% of the market for 556 ammunition, which is the caliber
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most commonly chambered for modern sporting rifles, including AR-15. So it would have a devastating effect
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on the commercial market for gun owners, as well as to harm national security and military preparedness.
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So there's a couple of things here. First of all, let's talk about the commercial side.
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The commercial side, you drop 30 to 40%. Your price, I've read your price of ammunition
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Obviously, economics being supply and demand, if you cut the supply that is already strained by
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30 plus percent, it's going to have a significant impact on the price in the commercial market,
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for sure. It's also going to have an impact on what the military pays for ammunition manufactured
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at the Lake City facility, because the cost, the economics of running that business for Winchester
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So the other part of this is for the military, not just in cost, but the reason why, if I'm not mistaken,
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the reason why Winchester has that 30% and they make 30 or 40% of the commercial market,
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is so they have the staff in case there's ever a major war. They have the staff. They don't have
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to ramp up. They can just shift all of that over to the military immediately. So we have enough
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ammunition to be able to fight a war. Is that true?
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That's precisely correct. And if they can't sell into the commercial market, those employees are gone.
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That production capacity is gone. And in a surge situation, let's say hypothetically,
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we were engaged in a shooting war with an adversary like Russia, China, or something.
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The ability of Winchester to meet that surge in demand would not exist. We would not be able to
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meet that need. Whereas now they can, they can simply shift that production from the commercial market
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to the priority of meeting the needs of the warfighter. So that ability is gone. Then we can't meet
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surge in demand. And the price that the military pays for the ammunition they get now, even in a
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non-surge situation would go up considerably. And the sale to the commercial market also helps to fund
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capital expenditures at the Lake City facility. So it's not just, you know, that they, Winchester sells
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that ammunition, um, in the commercial market. They, they also are putting money back into the
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DOD to, for capital improvements, capital expenditures at Lake City, so that it is state of the art and
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So as this was revealed last week, we had, um, some congressmen, um, start to write some, uh, write
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some letters to the White House. Um, some press started to, uh, sniff around, at least on, you know,
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on the, on the right side, uh, we started to sniff around and immediately the gates are closed to the
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White House and they say, this is, and I want to quote them here. Um, the reports on a possible ban
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are way off. Uh-huh. Uh, do you believe that? I mean, the person making that go ahead is either
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woefully uninformed of the facts because there was a meeting at the highest levels of the military on
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Friday to discuss this very issue, uh, or, uh, they are not being truthful, but it, it did happen.
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It is happening. Um, and there is a letter from 50 house members that has gone to the White House
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yesterday led by Congresswoman Vicki Hartzler in whose district the Lake City facility is located.
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And Senator Blunt's office from Missouri has been engaged in this issue as well.
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So, uh, you know, in 2015, the Obama administration tried to ban this ammunition, um, under this
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incorrect legal theory that it was somehow armor-piercing ammunition. It is not by definition
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armor-piercing ammunition. Okay. Hold on, hold on, hold on just a second, because that,
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because that's really important because I just read another story today that said that this is armor-piercing
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ammunition. Um, and you can find the definition for armor-piercing ammunition. And if you look at
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this M855 green tip ammunition, it does not meet the definition of armor-piercing ammunition. It is not
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by law armor-piercing ammunition. So the Obama administration's effort in 2015 to somehow
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declare it armor-piercing ammunition, uh, was withdrawn. And when there was a reaction by Congress
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and, uh, there were over 300,000 comments, public comments to a notice that ATF had put out,
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they backed off, unable to, to make it illegal. The Biden administration now is trying to make it
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unavailable. And this is all because they can't, uh, pass a ban on modern sporting rifles.
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So if you can't ban the ammunition, ban the ammunition. Without burning any bridges here,
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because I think it's very important that we know the truth, and I, I certainly don't want to cause any
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trouble. How do we know your information is accurate? How, how do we know the White House is
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lying here? We have had direct conversations with officials at Winchester, and we have had
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conversations with, uh, staff from Senator Blunt and, uh, Congressman Hartzler's office. So this is in
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fact, uh, happening, uh, and, um, a moderation. Again, either the person making that statement is
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woefully uninformed of the true facts or is misleading the public.
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Um, another way of saying that is lying. Uh, the White House has been lying about many things.
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They continue to say things are conspiracy theories or they're, uh, or inaccurate. And then all of a
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sudden, what do you know? It turns out to be true. Has this stopped? Do you know, is the,
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is the pressure off of, of Winchester? Is this not going through now that they've been nabbed?
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Uh, we have not been informed, um, that, um, that this, uh, has definitively been withdrawn and
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is no longer being considered. Um, but this is, you know, this is not the first time we've seen an
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effort by, um, first Obama, now Biden, uh, to ban this ammunition and to make it unavailable. So we are
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going to continue to pursue this issue to ensure that this is not, uh, no longer a recurring problem
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and that, um, that whoever holds the contract for the Lake City facility has the right to sell this
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excess, uh, ammunition into the commercial market. Because again, it's necessary for military
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preparedness. It's important for the taxpayer and it helps to fund capital expenditures at the
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facility. And it's important, obviously, for second amendment rights to be exercised.
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Exactly right. Exactly right. Larry, is there anything the public can do?
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They should contact their, uh, elected representatives in Washington, their congressmen
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and their representatives and insist that this, uh, this issue be fixed once and for all.
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So we don't have to revisit this every couple of years. And how do we fix it once and for all?
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Uh, we make it clear in statute that whoever holds that contract has the right to sell this
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excess ammunition in the commercial market for the reasons we've just talked about.
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Okay. Uh, thank you so much, Larry. I appreciate it. I appreciate everything that you guys are doing,
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uh, keeping, uh, keeping our second amendment right, uh, safe. Thank you. Um, appreciate it. We'll stay
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in touch. That's Larry King. He's from the National Shooting Sports Foundation about the, uh, Missouri
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ammunition plant that the Biden administration is trying to curtail, which would, uh, cut off a third
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to 40% of the two, two, three and five, five, six ammunition, which is the ammunition used by modern
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sporting rifles. This is the best of the Glenn Beck program. And we really want to thank you for
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listening. What I'm about to talk to you about today will not be mentioned by the mainstream media.
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They definitely, uh, will not be addressing it in the Biden administration. And I doubt the
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department of justice is doing Jack squat. This is the closest to a mainstream media outlet that
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anyone, uh, will get for Jane's Jane's revenge. Two weeks ago, the department of Homeland security
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issued a terrorism threat advisory bulletin where they warned, and I quote individuals who advocate
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both for and against abortion have on public forums encouraged violence. So if you are pro-life,
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apparently you're just as dangerous as some of these insane abortion enthusiasts that are showing
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up to the Supreme court justice's home, um, Biden's DOJ has equated the current breakout of violent
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acts surrounding abortion to both sides of the equation. How many participants of the March of
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Life have showed up to a Supreme court justice's home, you know, to, to even March, let alone show up to
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kill the family research council tallied up, uh, over the recent violent attacks and found that there
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have been over 40 incidents involving pro-life organizations and churches since the leak on the
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Dobbs decision. And the attacks span the entire country, Washington DC, Washington state, Georgia,
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Texas, Maryland, Virginia, Wisconsin, New York, Michigan, it's everywhere. Now imagine if a wave
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of terror attack spanning the entire country began breaking out over the cause considered right wing
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or conservative. How do you think Biden's DOJ would react? How do you think the media would react to
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this? We know the answer, but this is a relatively new phenomenon when it comes to terror. Back in the
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1960s, seventies and eighties, we knew exactly what the left wing extremists were all about. We were
00:16:54.980
fighting a war against global communism and we knew that fear was their weapon and both the government
00:17:02.380
and the media called them on it. Here's just a short list of some of the left wing extremist groups,
00:17:10.160
the weather underground, the simonese liberation army, the United freedom front, FALN, and the may 19th
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communist organization that included members of the black Panthers, even with an active campaign to
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expose them and catch them and prosecute them. These left wing terrorists, uh, were responsible for an
00:17:34.260
insane amount of criminal acts and bombings and murders. Imagine what would happen if the government
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and the media of today were operating back then? Well, we've got a little taste as the Democrats began
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to turn a blind eye to the left wing violence in the 1990s. Things began to spiral out of control.
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Have you ever heard of the animal liberation front or the earth liberation front? Most haven't, but
00:18:02.500
between 1996 and 2002, they were responsible for 600 criminal acts that caused over $42 million in
00:18:12.100
damages. But those guys are rookies. The black lives matter and Antifa violence in 2020 alone resulted in
00:18:21.520
multiple deaths and one to $2 billion in damage. We went from a nation of laws and law enforcement
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to a nation of, no, I'm re-imagining this violence is mostly peaceful. It's mostly peaceful firebombs,
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murders, and chaos. The problem is, is the democratic party just stopped caring. They realized that fear is
00:18:47.000
a very powerful weapon. And in 2001, Bill Clinton pardoned Patty Hearst, who helped one radical
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Marxist group commit armed robberies. Then he pardoned Weather Underground members, Susan Rosenberg and
00:19:01.320
Linda Evans. Rosenberg was convicted of possessing 740 pounds of dynamite and Evans was convicted for
00:19:10.240
helping to bomb the U.S. Capitol. You've seen the pictures recently. It was much, much, much,
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much worse than anything that happened on January 6th. So in 2017, Obama then commuted the sentence of
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Oscar Lopez Rivera. He helped lead the Marxist group FALN. That group from 1974 to 1983, as he was leader,
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they were responsible for more than 130 bombings, four deaths, and dozens wounded. Are you noticing
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a pattern here? The people who are getting released by our democratic presidents are all terrorists.
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This is the modern American left. They pardon or commute the sentences for Marxist terrorists,
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but a nationwide campaign to attack churches and pro-life organization, that goes on now in
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silence. Why? Well, I think it's consistent. They've refused to bat an eye when the son of two
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Weather Ground, Underground members, Chesse, how do you say his last name, Budin? Yeah, Chesse Budin,
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who runs the district, who runs for district attorney in San Francisco, that is, that is the son.
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Then they try and run PR as he's blamed for massive crime waves that ultimately ended in
00:20:41.960
his recall. The Democratic Party. They see fear as a weapon. Maxine Waters told her supporters to
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follow the GOP politicians everywhere they go. It's why Keith Ellison tweeted a photo of himself
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holding a copy of the Antifa handbook. It's why Jen Psaki would never say the Biden administration
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condemned the abortion protests outside of Kavanaugh's home. They want you to be afraid.
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They want you to be subdued. They want you to be broken.
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Over 40 attacks on pro-life organizations and churches, and it appears that the Justice
00:21:21.260
Department is ignoring it. Where are they? Let me show you again a poster from the Night
00:21:30.120
of Rage. This is a poster that is on the streets of the District of Columbia today as we wait
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for more results from the Supreme Court. Posters everywhere in New York. DC call to action. Night
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of Rage. The night SCOTUS overturns Roe versus Wade hit the streets. You said you'd riot.
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To our oppressors, if abortions aren't safe, neither are you. Jane's Revenge.
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Where's the DOJ on this? In May, a pro-life organization, Madison, Wisconsin, attacked with a
00:22:05.840
Molotov cocktail. Also vandalized with the words, if abortions aren't safe, then neither are you.
00:22:10.940
Hmm. Sound familiar? Now, it wasn't immediately known who was responsible, but an anonymous
00:22:18.540
intermediary reached out to investigate journalist Robert Evans claiming responsibility. I'm sorry.
00:22:26.520
They reached out to investigative reporter Robert Evans claiming responsibility. It was titled
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The First Communique, and that first communique was found on the dark web, you know, where nobody I
00:22:40.120
know lives. The group calls themselves Jane's Revenge. That comes from a 1970s era group that performed
00:22:47.760
illegal abortions called the Jane's Collective. Now, listen to some of their own words from the
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First Communique. Quote, this is not a declaration of war. War has been upon us for decades. This was
00:23:04.040
only a warning. As you continue to bomb clinics and assassinate doctors with impunity, so too
00:23:11.700
shall we adopt increasing extreme tactics to maintain freedom over our own bodies. We are forced to adopt
00:23:21.480
the minimum military requirement for a political struggle. Again, this was only a warning. Next time,
00:23:29.320
the infrastructure of the enslavers will not survive. Medical imperialism will not face a passive enemy.
00:23:37.060
Wisconsin is the first flashpoint, but we are all over the U.S., and we will issue no further warnings,
00:23:44.100
and we will not stop. We will not back down, nor will we hesitate to strike. We are not one group,
00:23:52.200
but many. We are in your city. We are in every city. Jane's Revenge. Is that not terror? Is that not the
00:24:05.500
very definition of a terrorist group? This warning came out May 8th. On May 30th, Jane's Revenge issued
00:24:13.300
another communique announcing a night of rage, which they are holding secret for the near term and the
00:24:20.460
near future. We believe, because of the posters that have just been put out, that that is for the night
00:24:26.540
of broken glass, if you will, the riot, the night that Roe v. Wade may be overturned. Now, imagine what would
00:24:37.800
happen if the Weather Underground or May 19th Communist Organization bombed a government building, then announced
00:24:43.940
a night of rage in the near future. If they were stalking our Supreme Court justices, the FBI, the DOJ,
00:24:52.720
and every other alphabet agency would have been all hands on deck in all of government response to find
00:25:01.060
them and to take them down. Again, where's the Department of Justice? Where was Joe Biden's address to let the
00:25:10.860
public know that they condemned this group and they're actively investigating? The warnings have
00:25:17.380
gone unanswered, and one week later, a pro-life facility operated by Compass Care in Buffalo was
00:25:24.540
the next to be firebombed. One week later, Jane's Revenge took credit for the attack. They were also
00:25:31.200
listed, uh, listing other attacks that they were involved with. Quote, you may have seen us in
00:25:39.260
Madison, Wisconsin, Fort Collins, Colorado, Risertown, Massachusetts, Olympia, Washington, Des Moines,
00:25:45.600
Iowa, Linwood, Washington, Washington, D.C., Asheville, Buffalo, Hollywood, Florida, Vancouver, Washington,
00:25:53.300
Frederick, Maryland, Denton, Texas, Gresham, Oregon, Eugene, Oregon, Portland, Oregon, among,
00:25:59.280
and among many others, and we work in countless locations invisibly. Quoting, your 30 days expired
00:26:08.440
yesterday. We offered an honorable way out. You could have walked away, but now the leash is off,
00:26:15.160
and we will make it as hard as possible for you to campaign and continue your campaign of aggression,
00:26:22.400
oppression. We have demonstrated in the past month how easy and fun it is to,
00:26:29.280
attack. From here forward, any anti-choice group who closes their doors and stops operating will no longer
00:26:36.480
be a target. But until you do, it is open season, and we know where your operations are.
00:26:44.520
Again, where is the Department of Justice? They've already claimed responsibility for at least 17 attacks.
00:26:53.480
There are more than 2,800 pregnancy clinics in the country. How far does this have to go before Biden does
00:27:02.360
his job? We've been looking into this organization, trying to find its funding. It appears their structure
00:27:10.500
is specifically designed to be vague. It's also suspiciously exactly the way Antifa operates.
00:27:18.200
We spoke to some pro-life organizations that voiced suspicion that Jane's Revenge could, in fact,
00:27:23.700
be members of Antifa. We're still looking into it. But their organization, as well as their graffiti,
00:27:29.360
is very telling. Some of the buildings that they have attacked have been tagged with the anarchist
00:27:33.980
A, common with Antifa. They also spray-painted the numbers 1312, which stands for A-C-A-B,
00:27:43.900
A-C-A-B, all cops are bastards. Does that sound like a pro-abortion person talking to you?
00:27:52.960
For years, we have asked the government to do something about Antifa. President Trump tried to
00:27:58.700
label them as domestic terrorists, but it never went through. That inaction contributed to the
00:28:04.140
summer of rage in 2020, and their further inaction has now put pro-life organizations even at greater
00:28:10.660
risk. And at this point, the only way to get Biden's DOJ to take notice is if you're a parent
00:28:16.480
that doesn't like CRT or sexually explicit material in your kids' schools. Or if you happen to be on
00:28:23.640
Washington, D.C.'s mall on January 6th, and that's about it. If a leftist terrorist group violently
00:28:32.440
attacks a pro-life organization, declares more attacks in the future, no big deal.
00:28:36.840
If you just follow the trends from the Democrats over the past few decades, this is not surprising,
00:28:45.840
nor will it be surprising, what happens when the left unleashes war on our streets. For fear is their
00:28:56.440
weapon. And congratulations, who everybody wanted to return to normalcy with Joe Biden.
00:29:08.720
You're listening to the best of the Glenn Beck program.
00:29:11.860
What is happening with Bitcoin? Is the cryptocurrency thing over or what? What's happening?
00:29:35.000
Well, as I always like to say, you know, if I had the perfect crystal ball, I would be on my yacht
00:29:39.840
in the Mediterranean. So I think that the answer is there is an interesting bull case and an interesting
00:29:48.440
bear case, and we have to kind of leave it up to the people to decide. What's happening with the
00:29:54.440
price now is really, you know, the contagion of, you know, what goes on when there is fear in the
00:30:01.140
markets. And Bitcoin, for all the times that people said it was a hedge, it's never been a hedge. This
00:30:07.120
has been a speculative asset that's trying to find its footing and maybe become a hedge in the future,
00:30:13.700
but it has been a speculative asset. And as we've had all of this money pumped into the markets via
00:30:20.700
the Fed, via the stimulus, everything has gone up and Bitcoin has been a beneficiary. So now that the
00:30:28.280
Fed is reversing course, we don't have stimulus, we're getting tightening monetary policy. Everything is
00:30:35.640
going down and Bitcoin is going down with it. Plus, there is this sort of spiral effect. You know,
00:30:42.380
I don't know if you know this, Glenn, but people are greedy and they can't just be happy with the
00:30:48.920
prices of things going up. So when they see stuff going up, they often want to double down. And so
00:30:55.320
they'll take on loans or they'll pledge some of their assets as collateral to get loans in order to buy
00:31:02.120
more Bitcoin, which is great when it's going up. But when it starts to come down, then you get the margin
00:31:08.780
call from your financial institutions that you don't have enough collateral to back this. You know, what are you
00:31:14.080
going to do? And so that creates a lot of downward selling pressure. So I think there's a lot of flushing
00:31:18.780
out of the leverage. There is, you know, kind of that contagion effect between the markets. And, you know, I think that
00:31:26.460
for a lot of the novices who have been lured in, in some cases by bad actors, because there are some
00:31:34.500
very smart people who are in Bitcoin and there are some really questionable actors who are in Bitcoin.
00:31:40.560
For those who have kind of had this marketing machine and lured in the novices that, you know,
00:31:45.280
can explain to you what a gold chain is, but they can't explain what a blockchain is, but they're still
00:31:49.940
doubled down in Bitcoin. I think a lot of those people, you know, tend to be the first ones to go out
00:31:55.780
because they don't have an underlying conviction and underlying investment thesis. They're just
00:32:00.860
trying to, they're the FOMO people, the fear of missing out.
00:32:04.940
So I have, you know, I bought Bitcoin, unfortunately, not when Mark Andreessen sitting in his office told me
00:32:13.580
to buy it, which was, I mean, tenths of pennies. I bought it later. And my wife has said to me,
00:32:22.460
this is long-term. We're not pulling it out. We're not pulling it out. We're not pulling it out.
00:32:26.820
And so we haven't pulled it out. And it's a little freaky, but I wouldn't pull it out because
00:32:31.800
I do believe that something like Bitcoin is going to be the future. My only fear is what the government
00:32:39.740
can do to it. That's the only thing that is a doubt in my mind. Otherwise, I'd be buying more
00:32:46.520
Bitcoin today, you know, because I believe, I believe in it except for the government.
00:32:54.680
Yeah. And that's a huge exception because governments around the world retain power by
00:33:00.700
having control over the money supply. And they're actually trying to use the interest in Bitcoin
00:33:06.160
to kind of trick people into supporting the central banks, creating their own digital currency,
00:33:12.460
which is not crypto. It's not decentralized. They own it, but it's digital. And a lot of people
00:33:17.480
don't really sort of appreciate the nuance there. So I think that is a huge risk. There's no way
00:33:23.980
sovereign nations want decentralized finance to become a thing. So they're going to do everything
00:33:30.520
they can to fight it. We've already seen, you know, potential proposals and potential legislation.
00:33:35.980
So I think that makes it a very, very serious risk. And, you know, there's a topic I think that's
00:33:42.320
related to this that people need to understand. And it's the concept of total returns versus risk
00:33:48.440
adjusted returns. You know, you can go out and spend a dollar on a lottery ticket and you could
00:33:54.320
win the Powerball. You could win it. A hundred million dollars. Your return is phenomenal. But on a
00:34:00.340
risk adjusted basis for every person who does that, most people are going to lose the dollar.
00:34:05.560
And so when you're looking at these speculative assets, a lot of times people are looking at total
00:34:10.740
returns. Oh, look at how much it's returned. But you're taking on a lot of risk to do it.
00:34:15.920
So it really needs to be treated in that asset class, that speculative asset class. And like you
00:34:22.360
said, you know, maybe it's a small amount of your portfolio, but you have to look at risk adjusted
00:34:30.740
Carol, I want to talk to you about something that I've been reading a lot about from from people like
00:34:39.980
you and economists, etc. And some are saying and some are denying that deflation is coming. And as I was
00:34:49.220
reading, I've been studying up on the Great Depression recently. And as I was reading what what happened
00:34:56.280
there, the the stock market crashed, and everybody freaked out. And they ran to the banks, we saw
00:35:04.480
it's a wonderful life, they ran to the banks, they got their money out. The banks closed, they had to
00:35:10.000
reset everything. But people were so fearful that they held on to their dollars, and they weren't spending
00:35:16.900
those dollars. And so, as I'm reading this, and I'm thinking, this seems like a no brainer to think
00:35:26.160
this is coming. And I'd like you to talk me down from this tree. I could very easily see a situation
00:35:34.740
where our food and our fuel is so expensive, it breaks the back of most consumers. They just are,
00:35:44.100
they're, they're just living for food and fuel and heat. And you know, they're living at the bare
00:35:48.760
necessity, which means they don't have any money to go out and buy new clothes, they don't have
00:35:54.260
anything to buy non essentials. Would it not be is it not possible to have super high inflation on some
00:36:03.980
products, and super low deflation prices that are, are crazy, because they, nobody's buying them
00:36:15.360
in other categories? Is that possible? Have both of those?
00:36:19.760
Yeah, I think that the the best analogy for that was would be, you know, kind of the 70s. And you're
00:36:25.240
something that looks like stagflation, where the economy stagnates, and it's stagnating, like you said,
00:36:30.800
because all of the money is being sucked up in a couple of categories. And there really isn't a lot
00:36:36.320
to go around in other places, there's not a lot of investments being made and whatnot. But we still
00:36:42.480
end up having high inflation. And we are certainly a lot of people feel like we are in that sort of
00:36:47.200
stagflation, you know, arena right now, you know, and it can continue on the trajectory. But you have to
00:36:53.480
remember, in terms of deflation, I mean, that's what the Federal Reserve is trying to do,
00:36:58.860
they are actively trying to deflate, you're not just the bubbles and assets, but they're trying to
00:37:04.580
deflate spending to cool off the economy. That's why they're shedding their balance sheet. That is
00:37:09.900
why they're raising their interest rates, it is meant to cool off demand. And that's the math problem
00:37:16.600
that I keep talking about, you know, they keep saying, oh, the consumer and businesses are going
00:37:21.420
to save us from a recession. But at the same time, the policy is meant to do the exact opposite,
00:37:27.820
the policy is meant to make it so that people aren't able to spend in the same way. So those
00:37:34.780
two objectives are at odds with each other. And so I do think that we could end up in this prolonged
00:37:40.860
period, like you said, where the inflation hasn't quite got under control, especially because we have
00:37:46.820
so many supply demand imbalances in our economy. You know, we have a labor imbalance, we have a food
00:37:53.140
imbalance, we have a housing imbalance, we have an energy imbalance, and we have a commodity imbalance.
00:37:58.400
And that is not going to be, you know, solved by any monetary policy that requires real action.
00:38:05.020
And we don't have leadership that's willing to to lead or frankly, do anything.
00:38:09.760
So, so we have, as I see it, we're looking at a situation again, I'm going back and please correct
00:38:18.200
me where my thinking is off. But I'm going back to the Great Depression. So people were afraid,
00:38:23.600
they held on to their money, they spent what they had to and what they could afford. But nothing else
00:38:31.040
that caused the labor market to shoot out of control to under to about 25% unemployment.
00:38:40.400
Because the factories were closing down because no one was buying anything from the factories,
00:38:45.980
which then in turn made FDR say, we're going to build the Hoover Dam to give people jobs,
00:38:52.280
but it was all the government money, which would have just caused more inflation,
00:38:58.340
inflation, if I'm not mistaken, had it not been for the, and I hate to say it this way,
00:39:04.640
but the saving grace of the Second World War, right? We were were we in a death spiral?
00:39:10.900
I mean, the war was definitely a different kind of reset. And I think that, you know,
00:39:16.900
a lot of the logic that you're talking about makes sense, your consumer sentiment is really important.
00:39:22.040
And it becomes a self fulfilling prophecy. If people don't feel confident, they don't go out
00:39:28.760
and spend if they're worried about their inflation and being able to feed their family and get to work,
00:39:34.860
they aren't going to spend. I think there are a couple of things that we have that are different.
00:39:39.340
And it's not necessarily better for the average American. So I just want to be clear that I'm on
00:39:44.260
your side. And I'm not saying that it's better. But because of this huge supply demand and balance
00:39:50.040
in the labor market, you know, we have two jobs available for every person looking,
00:39:54.980
the likelihood is that that probably contracts to be, you know, a better match than having massive
00:40:02.020
unemployment just because, you know, that that scenario is going on. And we also have a whole
00:40:09.040
slew of Americans who are doing, you know, have done very well, you know, they've been the beneficiaries
00:40:15.000
of this giant wealth transfer from Main Street to Wall Street. So I think we're going to have,
00:40:19.780
you know, a lot of, you know, different outcomes, you know, that inequality that's been driven by
00:40:25.700
government policy. And that's never a good thing because of, you know, the social unrest that comes
00:40:31.580
with it. And rightfully so, because, you know, these policies have really put the middle class,
00:40:38.080
the working class, and in some cases, the lower class at risk to the benefit of the people on the
00:40:45.040
inside. And so the numbers on average may not show how dire the situation is. And so they're going to
00:40:52.300
be able to spin and say, Oh, everything's great. And the consumer is doing well, when people are
00:40:57.080
really struggling. And, you know, that's where we're going to continue to just be furious and demand
00:41:05.880
Carol, thank you so much for everything you do. She's just issued a new paper, a new piece for
00:41:13.380
The Blaze, what the heck is going on with Bitcoin. And you can find that at theblaze.com,
00:41:20.080
theblaze.com, what is going on with Bitcoin by Carol Roth. Thanks, Carol. God bless.