The Glenn Beck Program - Best of The Program ｜ Guests： Rep. Karen Whitsett & Harry Dent ｜ 4⧸16⧸20

00:00:00.000 Hey, it's Pat Gray for Stu on the Glenn Beck Program today.

00:00:03.520 A lot of great, great interviews on the podcast.

00:00:08.980 Oh, by the way, don't forget to vote for a national, state, or local official to receive the Mao Award.

00:00:14.220 Those will be awarded next week.

00:00:16.600 And you can vote in the meantime for your local, state, or national official who deserves this dictator award.

00:00:25.040 Today on the podcast, you're going to hear a great interview with Jim Jordan, who stopped by to talk to Glenn about quarantining, the healthy as well as the negative aspects of printing money.

00:00:36.300 Also, Representative Karen Whitsett of Detroit talks about how unprepared her city is to fight this virus.

00:00:43.080 She is the representative that defended Trump on the hydroxychloroquine thing because she took it and it saved her life.

00:00:49.080 Also, Harry Dent, a chilling hour spent with him talking about what may be on the way.

00:00:57.760 And a bar owner in Georgia, Jennifer Knox, who owns a bar and had a tradition where people came in and pinned dollar bills to the wall and the ceiling in the bar. 0.89

00:01:10.960 She took it all down and gave it to her employees to keep them going for the next couple of weeks. 1.00

00:01:14.700 All of that and more coming up on the podcast.

00:01:19.080 You're listening to the best of the Glenn Beck program.

00:01:32.620 Welcome to the program.

00:01:35.640 On Monday, we had a Michigan state lawmaker who said she had the coronavirus and she was cured by hydroxychloroquine.

00:01:47.620 And she she credited Donald Trump while she's a Democrat.

00:01:53.300 And apparently you can't say anything nice about somebody if you're in the wrong party.

00:01:58.740 Well, that didn't stop her. 0.99

00:02:00.220 And she went to meet with President Trump on Tuesday.

00:02:03.280 She was asking for help for the people of Detroit.

00:02:06.420 Detroit is really, really suffering right now.

00:02:10.460 And so I wanted to get an update from her on how that meeting went and what was decided.

00:02:16.140 If anything, welcome again to the program, Democrat State Representative Karen Witsett.

00:02:23.400 Hi, Karen.

00:02:24.020 How are you?

00:02:24.880 Hi, Glenn.

00:02:25.820 Thank you for having me back on again.

00:02:27.580 I really appreciate it.

00:02:29.480 Sure.

00:02:30.000 So tell me what happened.

00:02:32.500 Well, it was an amazing experience to be able to be at the White House, not for myself, but for the city of Detroit and for the people that I represent that I call my family.

00:02:43.620 So to be able to speak to the president as well as to the vice president was first off an honor that I did not expect.

00:02:55.460 But to be able to let them know firsthand that I did not feel that they were being handed the truth of what was going down in the city of Detroit and that they needed to be made aware that we need to put people over politics and that I'm not going to let my people in the city of Detroit be a political pawn in this game.

00:03:13.880 This has been going on for far too long.

00:03:15.780 And we know that as far as history goes back, that people will be used as a political pawn, whatever the issue may be.

00:03:22.280 And that is what I'm not going to allow.

00:03:24.080 So I am on here and I went on there and I went there to talk about the fact that my people will not be used for the Democratic Party.

00:03:37.420 That's not going to happen.

00:03:39.700 So, Karen, they shouldn't be used for the GOP either.

00:03:43.340 And I know you mean that as well.

00:03:46.120 But it is such an honor to talk to you in a time where we are being trained to stay away from each other.

00:03:53.440 This is affecting all of us.

00:03:56.060 It doesn't matter who you voted for.

00:03:58.320 Coronavirus doesn't care. 0.65

00:04:00.180 It doesn't care.

00:04:01.200 When you went, did you feel the president and the vice president listened to you and headway was made?

00:04:09.240 Absolutely.

00:04:10.220 I mean, they were actually stunned by the information that I gave them.

00:04:13.740 They were not aware that we were in such bad shape.

00:04:18.920 And that was very disheartening to me to hear that directly from the vice president.

00:04:25.560 How do you think that that happened?

00:04:28.460 And do you think that was genuine?

00:04:31.100 I honestly.

00:04:31.820 They were genuinely surprised.

00:04:33.360 Oh, they were genuinely surprised.

00:04:35.740 They were absolutely genuinely surprised.

00:04:37.760 It was not a game.

00:04:38.780 It wasn't.

00:04:39.400 It wasn't an act.

00:04:40.680 They were genuinely surprised that they, you know, because up in the upper part of Michigan, in the upper part of Michigan, everyone is doing what they need to do.

00:04:48.720 So the executive, they're honoring the executive orders in the lower part of Michigan, where I am in Detroit, Dearborn area, the executive orders are not being honored, but they can't be honored if you don't have what you need.

00:05:00.380 I'm tired of getting the phone calls that I'm receiving.

00:05:04.080 Yesterday, I got the most heartbreaking phone call from Beaumont Hospital nurse who is crying and she's at home.

00:05:11.640 She's sick with the virus and she's talking about how the reuse of equipment at Beaumont Royal Oak.

00:05:19.700 She's talking about how babies are being tested positive for the COVID virus.

00:05:24.480 And she's talking about how she's at home sick and how I have to do something and please do something and to stop this and how we're losing Wayne County Sheriff's to this virus and how many are sick because they don't have not even thermometers, not even proper PPE.

00:05:41.640 How people are still having water shut off here when we're not supposed to have water shut off.

00:05:46.100 How people have started evictions here in February and they're still being carried out in March and April.

00:05:52.980 And this has to stop.

00:05:55.100 And we have pipes, pipes that are not connected in people's homes, so therefore they still do not have any water.

00:06:02.440 We still have problems in Flint, Michigan.

00:06:06.080 We still have problems.

00:06:07.300 And let's not talk about the hotbeds in our senior citizen homes and our charter schools.

00:06:13.980 Our charter schools kids are not getting food.

00:06:16.560 You are at the level that no one in this country is really talking about, except I think, like my friends and neighbors, we are.

00:06:28.240 We're talking about how are people doing it that are at the very bottom level that don't have computers, let alone have internet access for their kids.

00:06:39.480 They don't have food.

00:06:40.700 Their kids go to school to get their food.

00:06:42.520 They don't have a stove.

00:06:44.920 They don't have a stove.

00:06:46.200 You're talking about, I mean, they get the food.

00:06:48.480 They don't have a stove.

00:06:49.700 They don't have, we have drop-off points where you can go pick up food.

00:06:53.720 But if you don't have access to go and get it, how are you supposed to get it?

00:06:58.740 And this is what's happening to my seniors as well.

00:07:01.440 They don't fall in the category for Meals on Wheels.

00:07:03.900 And yet they can't get out and go get the food either.

00:07:08.020 I mean, I'm in here fighting a war, and I feel like I'm fighting by myself, Glenn.

00:07:13.500 I mean, this is insane, what I'm going through.

00:07:16.460 And it's like, my God, this is the city of Detroit.

00:07:19.380 We are one of the biggest cities that there is, and I'm fighting by myself.

00:07:24.640 And I'm tired of getting beat up because I care about the people of my city.

00:07:30.580 So what did the president say and the vice president say to give you comfort that help is on the way?

00:07:37.060 They gave me comfort and help is on the way.

00:07:39.300 I don't want to talk about specifics, but I can tell you that help and comfort is on, it's coming.

00:07:45.660 It is coming.

00:07:46.400 Okay.

00:07:47.160 Okay.

00:07:47.520 I want you to know that after we spoke on Monday, I reached out to my charity, Mercury One, and I said,

00:07:55.700 we have got to help the people of Detroit.

00:07:58.600 And so we will work with your office.

00:08:01.660 If you will take a call from my charity, we will work with your office.

00:08:05.660 I don't care if we have to send truckloads of food up to you or if you need PPEs or whatever you need, we will help you.

00:08:15.260 This audience is one of the greatest groups of people ever.

00:08:19.940 Oh, my God.

00:08:23.320 Oh, my God.

00:08:24.480 Thank you.

00:08:29.080 Oh, my God, Glenn.

00:08:30.540 Thank you.

00:08:34.060 We're all in this together, Karen.

00:08:37.320 Glenn, from the bottom of my heart, from the people of the city, Detroit.

00:08:45.260 I thank you so, so very much.

00:08:50.940 You tell us what we need to do, and we will do it.

00:08:54.540 And if you need people that are there, I can guarantee you that we can send volunteers up there that will deliver whatever needs to be delivered.

00:09:03.360 You tell us what you need, and we will do it as a community.

00:09:07.240 I need, you know, from my mothers and my fathers that are at home with their kids in these charter schools that have fallen through the cracks that don't fall under the Detroit public school system.

00:09:21.020 They have no iPads.

00:09:24.320 They have no means of trying to do their homework, and they're trying to do it on a single phone.

00:09:30.460 They don't have, even toaster ovens would be a benefit.

00:09:36.140 Even the cheapest, smallest toaster ovens would be a benefit.

00:09:40.020 Trying to get cleaning supplies for our jails and for our prisons and testing kits.

00:09:46.080 Partnering up with Mark Campbell that I was with yesterday.

00:09:50.520 Partnering up with him because he does have the testing.

00:09:55.040 He can do the test.

00:09:56.420 If we can get more testing kits, if we can test, if we can get thermometers, if we can help the Wayne County sheriffs, if we can help our Detroit police officers and our first responders.

00:10:09.680 We had over 1,600 nurses walk out and staff walk out of hospitals and more than one hospital, even Sinai Grace Hospital.

00:10:20.160 I mean, I have a laundry list.

00:10:24.640 Well, right now, what you've offered is a lifeline to you.

00:10:31.260 Karen, I'm going to put you in touch with my charity.

00:10:36.080 They will reach out to you today, and we will figure out what we can do.

00:10:42.180 And I ask every member of this audience to please go to mercuryone.org slash donate and donate now.

00:10:50.840 I want you to know that if you market for COVID or Detroit or whatever, 100% of your donation will go there.

00:10:59.520 It will not be used for any 100% of your donation.

00:11:04.440 So please donate now, and let's make an impact in the lives of these people who everyone has forgotten in the great city of Detroit.

00:11:16.040 Karen, we will talk again.

00:11:20.800 Glenn, and your audience, thank you for making the United States united.

00:11:28.500 Thank you.

00:11:30.280 God bless.

00:11:31.340 We'll talk to you again.

00:11:32.200 I just got a notification that Facebook is going to be alerting people.

00:11:56.580 If you have come up and crossed misinformation about the coronavirus, I warn you, be very careful.

00:12:06.700 They demonetized us and throttled us way back at Glenn Beck, my Facebook page,

00:12:14.340 because I posted the show two weeks ago that it looks like not as a weapon, but it looks like the Chinese were doing a study on bats,

00:12:26.740 and they brought them back to this laboratory in Wuhan, and that's where this thing came from, not from bat soup.

00:12:36.840 Well, two weeks ago, that was new information, and USA Today deemed that fake information and fake news.

00:12:45.560 We are still being penalized for that and been on the list of fake news.

00:12:51.580 You might get a notice saying Glenn Beck has been passing around fake news.

00:12:54.940 That is not fake news, and we stand by it, and we demand that our ban be taken off.

00:13:00.660 But this is one reason why please, please become a member of Blaze TV, because you're going to get information in real time,

00:13:10.020 and if the media decides they don't like that information, for instance, AP is now saying that it's just the far right that has a problem in Michigan.

00:13:22.460 No, I think there's a lot of people that are having a problem with the governor of Michigan, and they're not all far right.

00:13:27.000 Just because you believe in the Bill of Rights is not far right, and I say this now because I've asked Harry Dent to come back on the program.

00:13:35.860 He is a guy who was here in the fall, and he predicted that we would hit a Great Depression.

00:13:42.400 At the time, that looked like it was insane.

00:13:46.420 Turns out, not so insane.

00:13:48.640 Looks like that's exactly what we're in right now,

00:13:51.000 So we wanted to talk to him about what he's seen and what we should do as individuals.

00:13:58.440 And is there an exit on this one?

00:14:01.800 Welcome to the program, Harry Dent.

00:14:03.140 How are you, sir?

00:14:04.520 Nice to be back, Glenn.

00:14:06.760 It's good to have you back.

00:14:08.180 Harry, I wish that I could say you were wrong, but you're not.

00:14:14.280 You are a bit like me.

00:14:18.720 You might be wrong on timing sometimes, but you're not wrong on the direction.

00:14:24.020 And this one is quite a call that you made on this program.

00:14:28.540 You said we are going to be in a depression in 2020.

00:14:34.340 And what was it that you saw that predicted this?

00:14:39.340 Because it's now being brought on by this virus.

00:14:43.000 Well, you know, Glenn, last time we talked, you were contacting me because you were seeing the same thing I was.

00:14:49.540 Oh, this little repo crisis.

00:14:51.900 You know, this was not a total, full-out resumption of quantitative easing.

00:14:55.760 It was.

00:14:56.200 It was a total panic.

00:14:57.740 It got up to $700 billion in a matter of a few months to cover these leveraged investment stuff,

00:15:04.380 overnight stuff that banks are supposed to cover themselves.

00:15:07.080 Wouldn't.

00:15:07.700 Fed had to step in.

00:15:08.880 They panicked so much.

00:15:10.060 They didn't only did that.

00:15:10.860 They bought a bunch of T-bills, and now they're buying everything, and then they had a $5 trillion credit line.

00:15:16.080 This was the system breaking down.

00:15:18.820 The Federal Reserve and central banks have had us now since early 2009 on emergency support,

00:15:25.340 endless money printing to keep the whole banking system and weak demographics and excessive debt here and around the world from breaking down,

00:15:33.580 which it wants to do so we can get healthy again and get rid of a lot of these excesses.

00:15:38.380 And so in, you know, 2017, they said, well, we'll taper.

00:15:42.020 Well, you know, this was just a short-term black swan, and we're over it now.

00:15:46.320 By the way, that's 9 years later.

00:15:49.520 And, of course, when they started to drain the reserves, the banks stopped funding the repos, and everything went bad, and here we are.

00:15:58.180 Now, what happened, what I saw then, right as we were talking, this was what I call the final orgasmic phase.

00:16:04.740 This bubble's been going and going, and people like you and I warn against it, and they just print more money.

00:16:09.720 But I saw this final orgasmic phase with this repo thing.

00:16:14.240 The market was going up directly in step with every dollar they printed in that repo panic.

00:16:20.120 And I knew that.

00:16:20.900 I was saying this is going to peak by early March to mid-May at the rate it's going compared to past final phases,

00:16:27.060 and the only thing to cut it a few weeks early was this great virus.

00:16:30.440 I hate to say it. 0.98

00:16:31.340 I like this virus in one stupid way in that it's the perfect trigger because it's the one thing the central banks, 0.99

00:16:39.720 banks can't stop by just printing ever more money. 0.99

00:16:42.580 It doesn't stop the virus.

00:16:43.780 It may cushion the economy less and less.

00:16:46.200 It didn't stop this virus, and the virus took this thing down.

00:16:49.240 And I always said, Clint, I mean, way back, you'll know this bubble's over when you get a first sudden 40% give or take crash in two, two and a half months.

00:16:59.380 And that's exactly what we just got, and I think we still have, chances are we got one more leg down in this until we get a rebound that allows people to get out.

00:17:07.800 And that's going to be the real reprieve here.

00:17:09.380 A lot of people are going to miss this first, but there is going to be a better chance to get out and reposition.

00:17:14.580 Okay, so hang on just a second, Harry, because I don't believe in the stock market at all.

00:17:20.320 I mean, we're not getting healthy.

00:17:22.740 We're printing even more money.

00:17:24.160 The Fed owns almost everything now.

00:17:26.660 They're the largest landowner in the world.

00:17:30.380 They own our treasuries.

00:17:31.780 They're buying them up.

00:17:32.840 I mean, how is this getting us more healthy?

00:17:35.000 And Japan, Japan and Europe's done this more than us.

00:17:37.560 Japan's been buying stocks for a long time.

00:17:40.120 We're going to end up doing that.

00:17:41.460 And now the Fed's buying all types of bonds, corporate, munis, junk bonds.

00:17:46.720 They're propping everything up, and they've been doing it for now 11 years, and it doesn't work.

00:17:52.540 Japan has never come out of a long downturn 30 years later, and it's getting ready to go deeper. 0.64

00:17:59.080 And we're getting ready to finally see the deleveraging and getting rid of debt and excessive bubbles that should have happened in 2009 and 2010.

00:18:08.940 We would have been over this by now if they hadn't stepped in and just goosed everything up artificially.

00:18:14.760 You're right, Clint.

00:18:15.680 The stock market has nothing to do with the economy.

00:18:18.860 It is 120% overvalued at the recent peak, 10 times more any time in history because of this money printing has only created asset price inflation, especially in stocks.

00:18:30.640 It has not reignited the economy, which has been growing the slowest in all of history.

00:18:35.580 Okay, so I said a couple of years ago that I felt that stocks could go 30,000 to 40,000, and we would have a melt up, and then it would just shut down.

00:18:50.680 I don't think we're – we haven't hit that, and I think with all this money printing and everything else, and everybody is just screaming about, oh, my gosh, look, the stocks are up today.

00:19:01.440 I think we're still going – we're headed for a melt up.

00:19:04.720 Do you agree or not?

00:19:06.540 You know, I think you get a semi-one.

00:19:09.200 I think this was it.

00:19:10.660 I think this was the top.

00:19:12.400 The reason is – and remember what I just said.

00:19:14.920 This is the perfect trigger.

00:19:16.540 Last time the trigger was the subprime mortgage crisis, and that was minor in the global scale.

00:19:22.500 It was only four states.

00:19:23.940 It was only 14% of consumer debt only in the United States only.

00:19:28.220 Nobody else had a subprime crisis, but it triggered a worldwide collapse because the world was heavily in debt.

00:19:34.840 Demographic trends were turning down, which is something I can easily predict decades in advance.

00:19:40.620 And so that's what caused the – it was a trigger, but the bigger thing was a change in demographic trends when the world was awash in debt way more than in time in history.

00:19:50.300 Well, now we're way more awash, another $90 trillion in global debt, most of that in emerging countries who are less creditworthy, most of it in corporate debt and government debt, not consumer this time.

00:20:02.640 And so we're just worse off, more overstretched.

00:20:06.100 And what I think happens here – and it is possible we have one more new high in the markets, but I think only the NASDAQ may make that.

00:20:12.940 And I don't even know if that – because we're going into this deep shock.

00:20:16.540 I mean, I went through this at the hurricane in Puerto Rico, three months of total zero, the economy knocked out, no Internet, no TV, no phones, no nothing.

00:20:29.580 I had to go to New York for three months and come back for a slow recovery, but it was dead.

00:20:35.280 This is a deep freeze.

00:20:36.620 Now, what that does is it shows how weak the economy is, how many corporations are going to default, and even if they get some level of government assistance, which is going to be too little and too late.

00:20:47.760 And consumers who get laid off for the third time in the last 10 years and baby boomers, a lot of them very close to retirement anyway, and just decide, I'm not coming back.

00:20:56.100 We're not going to come back full way.

00:20:59.040 So markets are going to try.

00:21:00.620 They're already bouncing a little stronger than they should with a thing.

00:21:03.220 But I don't – I put the odds of a new high, not that high.

00:21:07.360 And by the way, Glenn, the Dow got within points of 30,000.

00:21:11.300 And my target was 10,000 on the NASDAQ, and we got within points of that too.

00:21:16.160 So I think that was the top.

00:21:18.780 This is the first 40% crash.

00:21:21.040 I think we got one more leg down when the reality sets in.

00:21:24.200 And then we're going to rally like we did in the first 1929 crash, the biggest bubble before this one, the last tech bubble that crashed in early 2000, that first crash.

00:21:37.760 We got a little more to go.

00:21:39.120 Then we have like maybe three, four, five months rally into the election, and that's when, boy, we can – yeah, take – then get out of stocks.

00:21:46.480 Let them bounce and then get out and, boy, really play it safe.

00:21:49.680 Okay, so, Harry, I want to talk to you beyond stocks because I don't see – I don't see a way out.

00:21:59.920 They're debasing our currency.

00:22:02.620 We are headed – headlong into socialism and everything else, everything bad.

00:22:11.400 And we lost another, what, five million people joined the jobless roles this week.

00:22:19.680 Any guess what our unemployment number is going to be when it comes out next month?

00:22:24.960 Yeah, I think we're between 14 and 17 already percent, and it's going to be just in this first shock as high as 20.

00:22:32.400 Now, the Great Depression had a 25% peak early on and an 18% second.

00:22:38.020 That is Great Depression levels.

00:22:39.960 And, again, now, I think we're going to get this first shock for the second quarter, maybe bleed in the third quarter.

00:22:45.080 There will be some sort of rebound, but we don't – there's no way, Glenn, no freaking way the economy even gets close back to normal.

00:22:53.780 Travel plans have been canceled.

00:22:55.520 I had speaking engagements around the world canceled, and nobody's even thinking about anything the rest of the year.

00:23:02.160 Nobody's thinking about traveling anywhere on a jet.

00:23:04.540 Jet travel passengers are down 95% cruise ships, annihilated hotels.

00:23:09.080 And hotels – I mean, you don't come back from this, so the only thing that will try to come back will be, like you said, stocks.

00:23:16.400 I bet stocks don't make it to new highs, and the only index that might be that NASDAQ, and it might make a slight new high.

00:23:24.300 It might just go up and ring 10,000, and then I would run and get out of stocks.

00:23:29.380 They're going to go down for two-some years after that.

00:23:32.520 They're going to be down 80% or more.

00:23:33.980 I've been forecasting this for 20 years, not just recent years.

00:23:37.400 When this great boom and bubble peaks, stocks will go down 80% to 90% like they did in 1929 to 1932,

00:23:44.240 not 50% like they did in the long recession in the 70s or any other time.

00:23:48.600 So you've got to get out.

00:23:50.020 Real estate's going to go down.

00:23:51.800 It just goes down later than stocks and less, but it's going to go down.

00:23:55.260 And now, you know, last time it was 34% in the U.S.

00:23:59.820 I think it's going to be 40% to 50% this time.

00:24:01.980 Imagine the foreclosures and the bank problems from that.

00:24:05.940 So this is the biggest thing in our lifetimes.

00:24:09.620 If you don't get out of the way of it, and again, I've studied these things.

00:24:13.260 Everyone in history, particularly the two big ones of the last century in the U.S.,

00:24:17.960 you are going to get, because of this mass stimulus, you are going to get some sort of reprieve

00:24:23.180 probably into August, September, October, right in maybe as much as the election.

00:24:27.280 I'm telling you, after all the stimulus election and Trump getting re-elected or not,

00:24:32.300 or whatever happens, this thing's going to fall apart.

00:24:35.380 All the smart money in Silicon Valley are trying to get any IPO out while they can,

00:24:40.320 because they all know after the election this thing's going to hell.

00:24:43.460 Got the smart money.

00:24:44.320 Okay, Harry, hold on just a second.

00:24:47.440 I'm going to ask you to stay for the full hour.

00:24:49.700 I'm going to move our coronavirus update.

00:24:51.580 In fact, we may even blow it off today.

00:24:53.140 This is the best of the Glenn Beck Program.

00:25:03.900 Harry Dent, the author of the book Zero Hour.

00:25:07.700 He put it out quite a while ago, and it's beginning to look like, oh, now's the time.

00:25:15.400 We should have all read that book.

00:25:18.020 He was on the program in the fall, and he said we are going to hit around March.

00:25:23.140 And we're going to hit a Great Depression.

00:25:25.460 He did.

00:25:26.480 Nobody knew about the coronavirus, but that was the trigger that forced this house of cards down.

00:25:34.380 Harry, we talked about the stock market and everything else last hour.

00:25:38.080 I want to talk to you about things like, for instance, inflation versus deflation.

00:25:45.940 We're probably headed for deflation, where nothing has real value.

00:25:52.380 Our homes are worth about half, right?

00:25:56.900 Is that what we're headed towards?

00:25:58.600 Yeah.

00:25:59.120 Yeah, yeah.

00:25:59.500 Basically, when the central banks inflated all this money, they didn't give it to consumers

00:26:04.820 or even put it into the banking system or businesses or anything like they're finally doing this.

00:26:09.140 They just bought financial assets from banks to give them liquidity to keep them from going under,

00:26:15.100 and they ignited a huge financial asset bubble.

00:26:18.980 So stocks and real estate, stocks the most, then real estate, those type of investments.

00:26:25.000 And most bonds are way overvalued, and they have to reset back down to reality.

00:26:30.040 That's going to destroy a lot of money.

00:26:32.560 There's money in your bank account that you spend,

00:26:34.320 but there's money in your brokerage account that's going to disappear even more.

00:26:37.980 That's money.

00:26:39.060 So if you can sell your house or have to sell your house, now is the time to do it.

00:26:44.040 I mean, you know, there's no better time than right now.

00:26:47.440 But if you don't have to, can you ride this out?

00:26:50.800 I mean, what does it look at?

00:26:51.720 Does it come back in five, six years?

00:26:54.580 It does not, Glenn.

00:26:55.780 For the first time in history, we have a smaller generation following a large one.

00:27:00.360 The baby boom peak around the world, and particularly here in the United States, 0.99

00:27:04.320 in births in the early 60s and in their inflation impact 20 years later when they hit the workforce in the 70s.

00:27:10.640 So that's done.

00:27:11.660 We're never going to have that much growth again.

00:27:14.780 And now the baby boomers are dying faster than the millennials coming along to buy. 0.99

00:27:19.220 Real estate will not come back fast and will not come back new.

00:27:23.180 I advise selling all non-strategic real estate and real estate that's bubbly.

00:27:28.840 Even if I'm not living in – I'm not owning my primary home, but I own my vacation home on an island because it's going to, you know,

00:27:36.300 better zoning and it's a special place.

00:27:38.440 I don't even own my primary home right now.

00:27:41.340 I'm willing to buy after this.

00:27:42.940 You're going to get the bargain of your life.

00:27:44.900 Here's the difference in real estate.

00:27:46.260 What you said is to sell real estate right now.

00:27:49.140 You've got less time.

00:27:50.180 Real estate freezes up in a crash.

00:27:52.420 Stocks, even when you're late, you can still sell.

00:27:54.540 They're very illiquid.

00:27:55.220 Same with high-quality bonds and stuff.

00:27:57.400 You've got to move on real estate now.

00:27:59.420 Stocks, I'd say, more like August, September, October into the election is going to be the time to sell at an even better price,

00:28:06.820 especially if we go lower first.

00:28:08.480 So real estate is the hardest to get out of, and you're going to get the biggest penalty if you wait

00:28:13.700 because it just freezes up and nobody wants to buy it.

00:28:16.660 So we have 20%, let's just say, 20% unemployment.

00:28:23.660 When does that number start to come down, Harry?

00:28:27.160 Okay, first of all, three scenarios in the past, the 80-82 deep recession,

00:28:32.440 then 29-32 bubble crash, and the 2000-2000 tech bubble crash, all have the same shape.

00:28:38.520 There's nothing black swan about this, Glenn.

00:28:40.520 It starts with the first crash when the reality sets in and the bubble bursts.

00:28:44.640 We're in that now.

00:28:45.740 That's going to cause a sharp, sudden downturn in the economy like happened in the first half of 1980.

00:28:51.160 Then all the stimulus will cause a quarter or two of rebound,

00:28:54.840 but that won't work because too much damage has been done,

00:28:58.060 and we go into a two-year slide into deleveraging, deflation of assets.

00:29:03.480 That's when deflation sets in before inflation follows after.

00:29:07.280 So deflation does come first, and then inflation.

00:29:10.620 That's important to understand that deflation is about loans being restructured

00:29:14.400 and financial assets coming down to reality, and that's where you lose your money.

00:29:18.080 That's where your business gets in trouble if you're not ahead of it and hunker down.

00:29:22.060 That's where people get unemployed and all this sort of stuff.

00:29:26.120 And so you have to be ahead of this on every minute.

00:29:28.840 If you've got a good job, be nice to your boss and keep it.

00:29:32.760 If you can do something on the side for business, do that.

00:29:35.540 If you can hunker down on your business, cut costs ahead of your competitors.

00:29:38.960 The point of this whole thing is to get the economy healthy again, out of debt, into reality,

00:29:44.360 prices back to where people can invest in the future and afford to buy a home, healthy,

00:29:49.080 but that's going to be painful.

00:29:50.480 You've got to get out of the way of this ahead of everybody else.

00:29:53.220 If your business just survives this downturn, you're going to have double the market share.

00:29:58.260 For years and decades to come, you're going to come out stronger than ever.

00:30:01.560 If you, like Joseph Kennedy, sold his stocks at the top and then rebuy when they're down 70%, 80%, 90%,

00:30:08.200 you're going to have the greatest gains in your life.

00:30:12.840 Yeah, my grandfather used to say he lived through the Great Depression.

00:30:15.680 He said those who had money, those who didn't lose it right at the beginning, they made a killing.

00:30:22.240 Made a killing in the business.

00:30:24.000 General Motors passed Ford forever and became the largest corporation in the world out of that.

00:30:29.380 Right.

00:30:30.320 General Motors, everybody in business should read about what General Motors did in World War II and the Great Depression,

00:30:36.540 because they were the real winners.

00:30:39.540 They were really, really ahead of the game.

00:30:41.660 They were.

00:30:41.880 And the other big winner was the Mafia.

00:30:43.860 The Mafia played the boom, the roaring bootlegging, and became the loan shark for small businesses in the Depression

00:30:51.520 and just hit a home run both ways.

00:30:54.380 But the Mafia probably played.

00:30:55.960 Mafia, General Motors, and Joseph Kennedy are the three great examples of how you make a fortune in a crash

00:31:01.660 instead of losing most of your assets.

00:31:03.300 And only one of them was really legitimate.

00:31:07.460 So, Harry, let me go to the people who are, I mean, what do restaurants look like?

00:31:18.580 I mean, I don't know how the mom-and-pop restaurant survives this.

00:31:24.080 Okay, look, I went to the, again, the hurricane in Puerto Rico.

00:31:28.420 We were totally out for three months.

00:31:30.140 When we get back, you crawl back, and guess what?

00:31:32.720 I had 21 restaurants within a block and a half of my condo.

00:31:37.280 And six out of seven good ones went under and never came back.

00:31:40.940 And one out of three of the bad ones went under and never came back, the cheapos.

00:31:45.060 And they just don't come back because a lot of businesses are already over in debt or have weak market positions.

00:31:52.120 This just brings that all out.

00:31:53.620 So, people who think, oh, this is just a virus, and when it goes back, all this stimulus will come back, a V-shaped recovery.

00:31:59.600 There is no V-shaped recovery to this.

00:32:03.500 No way.

00:32:04.680 Only stocks will try that, and they will fail.

00:32:08.480 All right.

00:32:09.280 So, let me go back to the unemployment.

00:32:12.360 When do we start seeing, because we have significant unrest if we have 20% unemployment for very long.

00:32:19.340 Yeah.

00:32:20.300 Another reason I'm glad I'm in Puerto Rico, Glenn,

00:32:22.260 and we've been in 14 years of recession and no civil unrest.

00:32:25.600 Okay.

00:32:26.040 80-82 is a great example.

00:32:27.780 So is the 30s, but that's more reason.

00:32:29.520 The first shock, unemployment went up to 8%.

00:32:31.960 And then, when GDP came back for a quarter, quarter and a half, all it did was kind of edge back down to like 7%,

00:32:39.600 because it's still the economy's weak, like I said.

00:32:42.220 You don't come V-shaped out of it.

00:32:44.380 And then, in the next phase, late 81-82, it went up to 11%.

00:32:49.600 So, double those figures.

00:32:51.040 This time, let's call that 15% plus in the first shock.

00:32:54.720 And then you go down a little bit, and then you go to 20-25% in the longer shock.

00:33:00.760 This is serious.

00:33:02.140 There is going to be civil unrest.

00:33:03.580 It's going to get a point where the government can't backstop every small business and every person like they're doing. 0.80

00:33:09.240 You've got to realize, Glenn, the government this time, after the last shock,

00:33:12.960 and stimulating for 9 to 11 years, nobody knows better than the central banks how weak the economy is,

00:33:19.100 because they keep pumping Viagra into this thing, and nothing happens.

00:33:23.400 And so they're blowing their whole wad right at the beginning.

00:33:26.900 What else can they do?

00:33:28.080 And I tell small businesses, get every subsidy or loan you'll get right now.

00:33:33.900 You know, consumers, get anything you can get.

00:33:36.340 Be first in line, because this is going to run out.

00:33:38.980 And don't have your money in normal bank accounts other than pay your bills.

00:33:43.500 Have it in a brokerage account and safe haven investments under your own name that cannot be lent against and lose that money.

00:33:50.060 The government can't back all the bank accounts in the country either.

00:33:54.780 So you have to get safe.

00:33:56.200 You can't listen to Warren Buffett or the experts or Wall Street or politicians the least.

00:34:02.020 They're all going to tell you this is okay.

00:34:04.220 Don't panic.

00:34:05.140 This is one time you should panic and cover your assets.

00:34:10.040 So wait, wait, wait.

00:34:10.720 So where is the – what is the safe haven?

00:34:15.080 Okay.

00:34:15.760 Number one.

00:34:16.440 We just saw it, Glenn.

00:34:17.840 We just saw it except for one except.

00:34:19.500 I told people the number one is the 10- and 30-year, yes, U.S. Treasury bonds, because they won't default.

00:34:26.600 They have to print money to pay them off.

00:34:28.900 Second is AAA.

00:34:30.160 Only the highest quality corporate bonds don't have the default risk when interest rates go down.

00:34:36.400 So bonds like interest rates going down, but only the highest quality.

00:34:39.880 Well, guess what?

00:34:40.360 In this crash, the Treasury bonds did great.

00:34:43.340 The AAA corporates didn't do so well, because when you see you're a cruise line or an airline or a retail store and you see 50% to 80% declines, your AAA rating turns into junk overnight, and you trade like a junk bond.

00:34:55.420 So really, it's the Treasury bonds at first, and then when things settle down, the AAA – so that is the best.

00:35:02.680 So wait, wait, wait, wait.

00:35:03.640 But how do you – do you have belief in a long-term Treasury?

00:35:07.920 I mean, you know, you say, well, they'll just print their money.

00:35:10.380 They have to pay out.

00:35:11.900 Well, I mean, money has no value.

00:35:15.680 No, no, that's not true, Glenn.

00:35:17.580 Currencies trade relative to each other.

00:35:19.520 And I can tell you this.

00:35:20.520 I've said this for years.

00:35:21.500 Nobody gets it until it happens.

00:35:22.780 It happened in 2008.

00:35:23.940 When the Lehman Brothers and things went the worst, the U.S. dollar went up 28%, and all the other currencies went down.

00:35:31.120 We are not a good house.

00:35:33.040 We're just the best house in a bad neighborhood.

00:35:35.200 Japan has printed 105% of their GDP.

00:35:38.380 Now we're at 20%.

00:35:39.620 Europe's at 42%.

00:35:40.900 Now we're all amping up again.

00:35:42.700 We are the best house.

00:35:44.200 We're still the reserve currency.

00:35:46.360 Loans around the world are made in dollars.

00:35:48.400 When those loans go bad, especially in the emerging world, dollars are going to disappear.

00:35:52.120 There's going to be fewer dollars, which means they're worth more temporarily.

00:35:56.740 I say the U.S. dollar, and particularly the U.S. Treasury bonds and highest quality corporate bonds, hold up the best in deflation at first.

00:36:04.460 After that, no, I'm not in the dollar after.

00:36:07.220 The dollar just does well.

00:36:08.840 It's the best house in the crisis like it did in 2008.

00:36:11.640 When we go into the next boom, it's all going to be about Asia, and even less about China.

00:36:16.640 It's going to be about India, Southeast Asia.

00:36:18.720 There's no way the U.S. is going to be the reserve currency in the future.

00:36:22.420 I'm just saying the U.S. dollar, I mean, there's not enough gold to back everything, and cryptos.

00:36:28.660 Cryptos are the biggest bubble ball.

00:36:30.420 I've been saying the cryptos are going to go down the most.

00:36:32.960 When this happens, cryptos have already proven not to be.

00:36:35.600 Now, just recently, in just this first crash, Treasury bonds did the best.

00:36:40.840 The U.S. dollar went up.

00:36:42.060 Other currencies went down.

00:36:43.240 Gold went up in the early stages, as it did in 2008, and then retreated some.

00:36:47.160 Gold was still the next best to those high-quality bonds because it held its value better than other commodities and way better than stocks.

00:36:55.200 But the ultimate safe haven, I'm telling you, it's going to be the 10- to 30-year Treasury bond during the crisis.

00:37:01.620 After that, those very Treasury bonds and all bonds are going to go into a 20-year-plus bear market with rising rates.

00:37:09.500 Inflation is going to follow. 0.66

00:37:10.620 Not high inflation, but gnawing inflation is going to follow this crisis, and bonds are going to be trash.

00:37:16.920 But in this crisis, only the best ones are good.

00:37:19.940 And, of course, cash, just sitting in cash.

00:37:22.820 So I would have cash, like I'd have high-quality bonds.

00:37:26.620 I'd have some gold.

00:37:27.780 It's also a great diversifier.

00:37:29.180 And that's it.

00:37:29.800 And if you want to hedge, you can put some money in a simple, unleveraged, inverse fund.

00:37:35.700 S&P 500, you know, I'd bet against that.

00:37:37.720 You buy SH.

00:37:39.080 S-P-Y on the way up. 0.66

00:37:40.540 S-H will just go down.

00:37:42.800 If the S&P goes down, you know, 40% here, then you're up 40, and it ultimately goes down 80, you're up 80.

00:37:49.320 And you're not unleveraged.

00:37:50.240 You're not going to get margin calls.

00:37:51.360 You just sit on it.

00:37:52.440 And maybe you put 10% or 20% of your portfolio in that.

00:37:54.860 So small amount, inverse funds, small amount in gold, a lot in high-quality bonds.

00:38:00.340 That's where I would be.

00:38:01.600 But you have now.

00:38:03.020 You're going to have several months to prepare for this.

00:38:05.520 You know, so it's the real estate you should focus on first because that just dries up.

00:38:11.400 And I've seen that happen time and time again.

00:38:13.200 Nobody wants to buy a house, and no bank will lend to buy a house, even if somebody wants to, once it starts to go.

00:38:21.760 Okay.

00:38:22.380 Harry, thank you very much.

00:38:23.820 I really appreciate it.

00:38:24.840 Harry Dent from harrydent.com.

00:38:26.500 The name of the book is Zero Hour.

00:38:28.660 It came out a while ago, but it's describing everything that we're going through right now.

00:38:33.560 And he backs all of it up with charts and graphs.

00:38:36.880 And, I mean, he said that it would be probably about March that we would hit the Great Depression.

00:38:41.220 And that's pretty accurate.

00:38:44.400 Pretty accurate.

00:38:45.620 So we'll keep in touch with him, and you should read Zero Hour.

The Glenn Beck Program - April 16, 2020

Best of The Program ｜ Guests： Rep. Karen Whitsett & Harry Dent ｜ 4⧸16⧸20

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