The Great America Show - BIDEN ECONOMY FAILING ALL AMERICANS

00:00:00.000 Hello, everybody, and welcome to The Great America Show.

00:00:05.380 It's great to have you with us.

00:00:06.380 Thanks so much for joining us today.

00:00:08.500 The world is in shambles.

00:00:09.720 America is in shambles.

00:00:11.080 I mean, everything is out of control under this Biden-Harris administration.

00:00:14.780 This week, we find out Border Patrol agents are going to revolt if Kamala Harris and Joe 0.98

00:00:19.360 Biden, well, I should say just Kamala Harris, win the 2024 election. 1.00

00:00:24.200 They're going to get the hell out of there and take retirement early because they can't

00:00:27.300 deal with four more years of what's been going on in this country.

00:00:31.000 Another big issue here at home is the economy.

00:00:33.220 And as you hear me often say on this show, it teeters.

00:00:35.520 And the economy was something Lou took great pride in and attention to on this show because

00:00:44.160 it affects all of our daily lives, whether it be the inflation that we deal with every

00:00:47.680 single day, us Americans who have 401ks, Americans who are trading in the stock market, or just

00:00:53.840 simply Americans who go shopping every single day, who can't afford a carton of eggs, a

00:00:59.640 gallon of milk, the bare necessities we need, laundry detergents.

00:01:04.480 The Biden administration under this president has made it impossible for almost all of us

00:01:09.460 to live.

00:01:10.420 But President Trump, it seems, is on the horizon to victory in November, on November 5th, at

00:01:17.080 least we can hope for, America.

00:01:18.500 He was at the Chicago Economic Club this week, meeting with a not-so-smart man.

00:01:23.860 He's a Bloomberg News editor-in-chief, and he completely owned this man.

00:01:28.140 I want to bring in our guest today who knows a little bit about economics.

00:01:31.180 He's John Lonsky.

00:01:32.220 He's the founder and president of the Lonsky Group.

00:01:35.420 John, first of all, thanks so much for joining us here on the Great America Show.

00:01:39.440 Well, thank you, John.

00:01:40.520 I want to begin with first a clip for the audience on how this interview with President Trump and

00:01:46.400 John Micklethwaite, I think is how you say his name, the Bloomberg News editor-in-chief.

00:01:52.180 How their conversation started, take a listen.

00:01:54.620 You said, President Trump, at the moment, there is a thing called the Trump trade in the markets.

00:01:58.640 Do you know what that is?

00:01:59.400 The Trump trade is very simple.

00:02:00.880 People are betting that your policies, they're going to drive up debt.

00:02:05.240 They're going to drive up inflation. 0.95

00:02:06.820 So they're going to drive up inflation, interest rates.

00:02:09.740 Are the investors wrong?

00:02:11.040 Yeah, I had four years, no inflation.

00:02:13.780 I had four years, no inflation.

00:02:15.280 But that was when you had much...

00:02:17.460 I had four years.

00:02:19.040 It's better than that.

00:02:20.720 And Biden, who has no idea where the hell he is, okay?

00:02:24.260 Biden went two years with no inflation because he inherited from me.

00:02:29.120 And then they started spending money like drunken sailors.

00:02:32.140 They spent so much money. 0.99

00:02:33.640 It was so ridiculous, the money they were spending. 0.95

00:02:36.180 They were spending on the Green New Scam. 0.94

00:02:38.660 The Green New Scam, the Green New Deal. 0.98

00:02:40.900 You know, it was conceived of by AOC plus three.

00:02:45.560 She never even studied the environment in college.

00:02:48.020 She went to a nice college.

00:02:50.260 She came out.

00:02:51.220 She just said, the Green New Scam.

00:02:53.100 She just named all these things.

00:02:54.820 President Trump, the issue of the moment, the markets are looking at the facts.

00:02:58.520 You are making all these promises.

00:03:00.340 Latest one was car loans.

00:03:02.160 You're flooding the thing with giving giveaways.

00:03:05.000 But we're going to grow?

00:03:05.760 I was actually quite kind to you.

00:03:07.520 I used $7 trillion.

00:03:09.540 The upper estimate is $15 trillion.

00:03:11.800 People like the Wall Street Journal, who's hardly a communist organization.

00:03:15.020 Yeah, but you don't know.

00:03:15.620 They have criticized you on this as well.

00:03:17.700 You are running up enormous debt.

00:03:19.400 What does the Wall Street Journal know?

00:03:20.940 I'm meeting with them tomorrow.

00:03:22.020 What does the Wall Street Journal know?

00:03:23.100 They've been wrong about everything.

00:03:24.400 So have you, by the way.

00:03:26.180 You've been wrong about everything.

00:03:26.920 You're trying to turn this.

00:03:28.080 You're trying to turn this.

00:03:29.200 You've been wrong about everything.

00:03:29.860 No, you're trying to turn this into debate.

00:03:33.320 It's not a debate.

00:03:34.300 No, but you're wrong.

00:03:35.600 You've been wrong.

00:03:36.340 You've been wrong all your life on this stuff.

00:03:40.080 John Lonsky, Trump taking his latest victim.

00:03:43.800 I don't I can't seem to understand, John, why these people do this to themselves.

00:03:49.240 They're nowhere near as smart as President Trump or the advisors he had around him.

00:03:53.680 President, I can understand if we're back in 2015, John, where President Trump had no economic record to run on.

00:04:00.040 But we saw what President Trump did in four short years.

00:04:03.560 I mean, and some people say it's something short of just a miracle.

00:04:08.260 Your thoughts on that brief exchange between the Bloomberg News Editor-in-Chief, John Minklethwaite, and President Trump?

00:04:15.480 Well, the Bloomberg editor, I think, overlooked the importance of deregulation and tax cuts to facilitating rapid economic growth without faster price inflation.

00:04:33.600 That's his big mistake.

00:04:35.000 And in fact, if Trump had maintained the presidency following the 2020 election, we would be in much better shape today.

00:04:45.740 We would have would have had a continuation of his policies that were being guided by a team that I consider to be significantly brighter than Team Biden or Team Harris.

00:05:03.180 And we might well be looking at solid economic growth without a budget deficit that is now just over six percent of GDP and without rapid price inflation.

00:05:17.020 You know, it's interesting, John, is this Nimrod, John Minklethwaite.

00:05:22.200 I hope I'm saying his name right.

00:05:24.620 He wants to talk about spending money.

00:05:27.400 He didn't bring up the Green New Deal, which would have dumped trillions and trillions of dollars of wasteful spending.

00:05:32.720 That would have absolutely done nothing.

00:05:34.880 The money I think President Trump has touted that he will will cut on Americans is money that will be made back through tariffs, through people spending more money.

00:05:46.000 What people don't understand is if it's very simple and you know this better than anybody, John, and you can attest to it and give me your thoughts on after.

00:05:53.000 But if people have more money in their pockets and it's a stable economy, right, because that's a very key factor.

00:05:59.920 It's a stable economy where inflation isn't rampant.

00:06:02.820 If people have extra money in their pockets, John, they're going to go out and they're going to buy that car that they wanted.

00:06:07.580 They're going to go out and they're going to go shopping.

00:06:09.280 They're going to your wife's going to buy that pocketbook. 1.00

00:06:11.500 She wanted the kids are going to go out and they're going to get that new baseball mitt, 0.93

00:06:15.720 that new baseball bat.

00:06:16.960 That's the thing that these people don't understand, John.

00:06:19.480 And it's something that I learned, I think, in probably eighth grade.

00:06:22.700 And it's embarrassing to me, in my opinion.

00:06:25.200 And I'm sure in yours as well, because you're an economist. 1.00

00:06:28.140 This is what you do for the Bloomberg News editor in chief to sit there and say something so stupid. 0.98

00:06:35.920 Yeah, he doesn't really understand, fellow from Bloomberg, that the stimulus we supply to the economy can differ 0.98

00:06:44.480 regarding whether or not it promotes an increase in the work incentive, an increase in the labor supply,

00:06:52.200 as well as an increase in investment spending.

00:06:55.500 You know, with more investment spending, with more people wanting to work,

00:06:59.320 we can get away with an increase in spending that does not put unwanted upward pressure on prices.

00:07:07.760 And, you know, the Green New Deal, my goodness, energy policy has been nothing less than an unmitigated disaster

00:07:17.480 for the Biden-Harris administration.

00:07:20.440 Not only has it caused a lot of problems for the U.S. economy by limiting the supply of energy

00:07:28.440 and thereby making the whole production process costlier than otherwise,

00:07:34.000 let's not forget that the Biden-Harris energy policy has been a complete disaster

00:07:41.980 for foreign policy in the United States.

00:07:44.440 My goodness, it was by going ahead and pushing fossil fuel prices sharply higher

00:07:51.300 that we enriched the belligerent states of Iran and Russia, and we're paying for that dearly today.

00:08:00.340 So energy policy is very important for the domestic economy, international economy, and for world peace.

00:08:10.300 I don't think I could have said it better myself, John.

00:08:12.780 I'm by no means an economist.

00:08:14.440 I'm just a guy who reads the Wall Street Journal every now and then or every day.

00:08:18.240 You mentioned foreign policy.

00:08:19.580 I want to take a quick break here, but when we return, tariffs, they're a big issue,

00:08:23.740 and they've been talked about now since 2016, since President Trump.

00:08:27.740 It's almost like tariffs didn't exist before 2016 because our leaders didn't know what they were doing.

00:08:32.740 But everyone has touted tariffs as such a bad thing.

00:08:35.380 Well, I shouldn't say everyone.

00:08:36.320 It's the Democrats.

00:08:37.180 The Marxists left.

00:08:38.500 They don't like tariffs because they know they work, and no Democrats will have the,

00:08:41.940 I don't know how to say this, the gojones to go ahead and go to China and say,

00:08:48.140 hey, you guys are going to pay for this, or Mexico, you guys are going to pay for that.

00:08:51.400 I want to take a quick break here.

00:08:52.500 When we return, we got more video footage from that meeting with President Trump and the Breitbart News,

00:08:59.120 Bloomberg News Editor-in-Chief, Arne Tariff.

00:09:02.000 You've guessed it.

00:09:02.780 President Trump owned him once again.

00:09:04.400 We're going to take a quick break.

00:09:05.260 We're coming right back with John Lonsky of the Lonsky Group.

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00:10:53.460 We'll see you there.

00:10:54.100 We're back.

00:10:57.260 We're talking with John Lonsky, the founder of the Lonsky Group,

00:11:00.420 a brilliant economist, one of Lou's favorite.

00:11:03.080 Lou had favorite guests on this show, as you probably imagine,

00:11:05.980 and John was one of them.

00:11:08.280 John, President Trump was asked about tariffs

00:11:10.520 and the destruction it's going to do on this country

00:11:12.880 and everything that comes with it.

00:11:14.980 I'll let the audience take a listen.

00:11:16.620 Take a listen.

00:11:17.140 So they're taking a tremendous advantage of us, $350 billion on trade,

00:11:24.040 and we're then supporting them.

00:11:26.440 In other words, it's not sustainable.

00:11:28.180 You can't keep doing this.

00:11:29.200 You can't have that, China, all of these countries. 1.00

00:11:32.900 And stupid people made these deals. 1.00

00:11:35.260 I saw trade deals that were so stupid that you'd have to be, excuse me, 1.00

00:11:41.120 that were so bad that you'd have to be an idiot to sign them. 1.00

00:11:45.300 And we signed them for years. 0.99

00:11:47.420 We had, we had, I could tell you trade deals that I have never seen of them.

00:11:52.660 I said, who would agree to this?

00:11:54.680 They had to be corrupt. 0.99

00:11:56.740 They had to be corrupt. 0.93

00:11:57.700 To make those deals, they had to be corrupt because there's no way a rational human being, 1.00

00:12:02.960 I always say either corrupt or extremely stupid because there's no way a rational human being 1.00

00:12:09.120 would ever sign the trade deals that this country signed. 1.00

00:12:12.880 And I got out of many of those deals.

00:12:15.400 What are your thoughts, John?

00:12:16.920 As you got to witness President Trump, Obama before Trump,

00:12:21.660 and the distinction between the trade deals that were made under President Trump

00:12:25.820 and the trade deals that were made under Obama and the trade deals now that were made,

00:12:29.660 I don't think there's any notable ones that were made under Biden.

00:12:32.960 And potentially ones under a Harris administration.

00:12:36.760 Well, John, I think you hit on a very important word, and that is deals, trade deals.

00:12:44.380 Trump views tariffs as a negotiating tool in order to get the best possible deal

00:12:53.860 for American workers and for American companies.

00:12:58.340 We also want to be sensitive to the fact that we may have become too complacent about the importance

00:13:07.560 of national security in international trade.

00:13:12.140 I don't think it's a very good idea for the U.S. to become too dependent on overseas sources of,

00:13:21.780 say, pharmaceuticals, of critical metals, and so on.

00:13:25.980 So there is a strong justification for tariffs, if only to bolster, to improve national security

00:13:37.300 in the United States.

00:13:39.760 And China is making a huge mistake.

00:13:43.060 Let's face it, China's biggest customer is the American consumer.

00:13:48.140 And what you don't want to be doing is pointing a gun at the head of your best consumer, which China appears to be doing right now. 0.57

00:13:57.280 So perhaps through the skillful negotiations pertaining to tariffs, we could help China lessen its degree of belligerence out of the realization that China would be doing itself a lot of harm if it went ahead and shut off this very important market for its exports.

00:14:24.200 Right now, the Chinese domestic economy is really hurting.

00:14:28.660 And the only perhaps bright light in the Chinese economy, as it was in the past, is exports.

00:14:35.480 And if you take that away from them, they'll be in big trouble.

00:14:39.560 And I think that once he assumes a presidency, Trump should have a lot of power when negotiating with China over tariffs.

00:14:49.160 John, the old saying, kick the dog while they're down, I think applies here more than any, because the truth of the matter is nobody holds China accountable for anything they've done to us since, I guess, maybe the early 2000s of Belt and Road Initiative, which we let them do. 0.91

00:15:04.740 They unleashed COVID on the world, killed over a million Americans, millions around this world, got away with it, no repercussions from the Biden administration.

00:15:14.520 I do think if Trump was to return to office in January of 2021, he would have probably hit them with more tariffs as retribution for what they did to this country, because I think it's more than apparent they released it on the world, not by accident.

00:15:27.220 But they get away with everything, right? We're letting them go now. Their economy's hurting. We should be hitting them now where it really hurts.

00:15:34.680 We shouldn't have to wait for President Trump to come back in on November 5th or sworn back in on January to hit them where they hurt. 0.94

00:15:41.280 Biden should be crippling these people for what they've done to us.

00:15:45.320 John, not only on the COVID side, but on the economic side, the fentanyl side, what they're shipping into our country, fentanyl, killing hundreds of thousands of people a year with fentanyl.

00:15:54.080 We let them get away with it. But this guy, I can't get over it, this Bloomberg News editor-in-chief, thought he knew about the tariffs.

00:16:02.580 Take a listen to President Trump, take him to town on tariffs, because he's one of the savants, this fellow from Bloomberg. Take a listen.

00:16:10.300 You're also talking about 10, 20% tariffs on the rest of the world. That is going to have a serious effect on the overall economy.

00:16:17.020 And yes, you're going to find some people who would gain from individual tariffs. The overall effect could be massive.

00:16:23.380 I agree. I agree. It's going to have a massive effect, positive effect. It's going to be a positive, not a negative.

00:16:29.540 Let me just tell you. No, no, let me tell you. I know how committed you are to this.

00:16:33.540 And it must be hard for you to spend 25 years talking about tariffs as being negative and then have somebody explain to you that you're totally wrong.

00:16:41.320 It'll have a negative. It will have. I'll go a step further.

00:16:45.540 If you don't do this, this country has no chance.

00:16:48.700 40 million jobs is a lot of jobs to rely on trade.

00:16:51.160 They're all coming back.

00:16:52.540 Those are 40 million jobs in America that rely on trade.

00:16:57.100 Are you ready? John Deere, a great company, they announced about a year ago they're going to build big plants outside of the United States, right?

00:17:05.600 They're going to build them in Mexico.

00:17:06.900 And you threatened the tariffs and they stopped.

00:17:08.900 That's right. I said, if John Deere builds those plants and not selling anything into the United States, they just announced yesterday they're probably not going to build the plants, OK?

00:17:17.920 I kept the jobs here.

00:17:20.060 John, he literally contradicts himself at the end, this fella.

00:17:24.360 It makes absolutely no sense.

00:17:25.780 The simple, simple thing, there's only tariffs on imports, John.

00:17:30.700 The people who are making things here in America and employing Americans are going to pay the regular corporate tax that every other corporation in America pays,

00:17:38.220 which President Trump gave a massive break to in order for these companies to stay and come back to America, further stimulating an economy, further stimulating jobs and helping out the American people.

00:17:49.360 So it's just mind-blowing to me, John, that these people on the left are so deranged that they're willing to go on national television and lie.

00:17:59.520 Can you tell me one negative effect that the Trump tariffs had on this country, John?

00:18:03.780 Well, we don't know of any quite yet, can we?

00:18:06.980 We don't know of any whatsoever, and inflation remained low.

00:18:10.300 I mean, inflation was less than 2 percent even prior to COVID and, of course, much less than 2 percent when Trump left office.

00:18:17.980 What we don't want to overlook is that when we talk about a 20 percent tariff, we're not stating that the prices of imported goods will rise by the whole 20 percent.

00:18:29.720 Let's not forget that a lot of that tariff will be absorbed by the importer, by whoever is bringing that good into the United States,

00:18:40.320 and thus the price increase could be considerably less than 20 percent.

00:18:45.220 Still, you've got to be careful with tariffs.

00:18:47.360 You've got to use them judiciously.

00:18:51.020 You don't want to be protecting industries in the United States that are not worthy of protection.

00:18:57.760 I mean, you can get yourself into a problem that if you reduce the competition faced by U.S.

00:19:04.600 companies too much because of tariffs, then you will not only pay the price in terms of significantly higher retail prices,

00:19:15.320 you'll also pay the price in terms of a loss of product quality.

00:19:19.160 This is something that has happened in South America.

00:19:21.460 It happened in Argentina.

00:19:23.900 Do we need tariffs?

00:19:25.500 Yes.

00:19:25.900 Do we want to apply tariffs blindly?

00:19:30.600 No.

00:19:31.420 Yeah.

00:19:31.700 And I think you'll agree with me on this is that where Trump applied the tariffs, they were very concentrated and they worked.

00:19:40.080 We brought in money, John, that we never seen brought into this country.

00:19:42.880 The other thing that people don't miss is President Trump says he's going to put the tariffs on.

00:19:48.320 If you own a company, John, and you're down in Mexico and I tell you, you know, it may cost up to 50 percent for you to come across the border.

00:19:55.040 There's no doubt that you're going to come back to America. 1.00

00:19:57.280 So I don't even think in most cases the tariffs will be necessary.

00:20:02.020 It's it's a bargaining tool that President Trump very smartly uses as a New York businessman, you know, that will try to get these companies.

00:20:11.140 He did it with carrier air conditioning.

00:20:12.500 He did it with Nabisco.

00:20:13.980 But, you know, he's right.

00:20:15.500 These companies, John, you go over to Europe, you don't see any American made cars there.

00:20:19.620 You're very few and far in between.

00:20:21.440 You don't see American made things over in Europe, in China.

00:20:25.180 You know, American manufacturing is dying and it's at the hands of the Marxist Dems.

00:20:30.960 So I want to take one more quick break here.

00:20:33.280 When we return, we're going to get your thoughts on that.

00:20:35.460 I also want to take up Jerome Powell and the Fed and where we go from here and where this market goes.

00:20:41.520 It seems we don't have a president right now, yet we have a very unstable market, in my opinion.

00:20:46.580 We're going to get your take on that.

00:20:47.700 When we return, we're talking with John Lonsky of the Lonsky Group.

00:20:50.840 Stay with us.

00:20:51.320 We're coming right back.

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00:21:58.960 We're back.

00:22:01.220 We're talking with John Lonsky of the Lonsky Group, a brilliant economist.

00:22:04.420 And, John, we were talking before we went to break about China.

00:22:07.300 And, you know, the big issue that a lot of people miss, you know, above the surface is the national security aspect of it.

00:22:15.060 We go over to China, and I use Elon Musk.

00:22:17.100 I love Elon Musk, but I use him as an example all the time.

00:22:20.180 He's over there building the batteries for his cars.

00:22:24.200 How much trouble are we in as a country, John, that we have Apple, Tesla, 90% of our pharmaceuticals being made overseas, as you had mentioned before?

00:22:34.700 How much trouble are we in as a country?

00:22:37.460 That's dangerous.

00:22:38.760 I mean, I'm thinking about these critical metals for the development of weapons in the defense industry.

00:22:45.040 You have to have access to those metals.

00:22:46.960 But right now, a lot of those metals are found in China or they're found in South America.

00:22:53.740 But the companies that now produce these metals in South America are owned by the Chinese.

00:23:01.340 So we have to proceed with a lot of caution in this manner because of geopolitical risk that could really become amplified if we do have a conflict with China.

00:23:15.420 I think I want to know, too, and I think this is important.

00:23:17.500 You could always make a strong case for tariffs when there is the very real danger that a low-cost producer overseas may decide to dump its products on the U.S. market.

00:23:32.140 Electric vehicles right now constitute a prime example of this threat.

00:23:37.660 Supposedly, China has more than a million electric vehicles that it cannot sell.

00:23:44.900 And China would love to go ahead and export these EVs to the United States at prices that would be so low that it would lead to an immediate shutdown of EV production facilities in the United States, Tesla, as well as at other companies.

00:24:03.620 So, you know, how can you say that there is no need for tariffs when, indeed, there is a strong argument to be made that without tariffs, your developing industries would have no future whatsoever?

00:24:20.760 Yeah, it's John.

00:24:22.260 You know, the problem is me and you are above the surface.

00:24:25.040 These people who are running this country, these people who are running Bloomberg.

00:24:29.400 I mean, Bloomberg has lost so much credibility over the last few years, and Michael Bloomberg, to his credit, he's a brilliant guy. 0.97

00:24:35.060 But these people he has running his organizations are just total buffoons. 0.82

00:24:39.460 I want to turn to some issues here at home.

00:24:42.960 Should President Trump, and hopefully he wins on November 5th, he has a big decision to make, and that's whether to keep or to get rid of Jerome Powell.

00:24:50.600 Here was his thoughts on it at the Chicago Economic Club.

00:24:53.580 But you've gone backwards and forwards about whether you want to keep Jerome Powell as chair of the Federal Reserve.

00:25:00.520 His term as chair runs on to May 2026.

00:25:04.220 Would you seek to remove or demote him?

00:25:07.460 Look, I think it's the greatest job in government.

00:25:11.940 You show up to the office once a month and you say, let's see, flip a coin.

00:25:16.480 And everybody talks about you like you're a god.

00:25:20.300 Oh, what will he do?

00:25:21.420 I mean, before, the guy used to walk into my office, he was like begging, he was fine.

00:25:27.780 But you did talk about, you talked about removing him once.

00:25:31.540 I did, because he was keeping the ridge too high.

00:25:34.180 And I was right.

00:25:35.380 And you would do that again.

00:25:36.560 In fact, he actually dropped him too much when I did this.

00:25:40.840 Because I said, I was threatening to terminate him.

00:25:44.720 There was a question as to whether or not you could.

00:25:47.420 And there was an article in the New York Times, two half pages.

00:25:50.600 One page said, I can do it by lawyers.

00:25:53.040 One half page said, I couldn't.

00:25:54.540 And that was enough for him.

00:25:55.760 And he dropped the hell out of the ridge.

00:25:57.100 He dropped him too much.

00:25:58.560 He went so, he dropped him actually too much.

00:26:01.420 Okay.

00:26:02.820 Here's the story.

00:26:03.680 I think that if you're a very good president with good sense, you should be able to at least talk to him.

00:26:12.160 I don't say make the decision at all.

00:26:13.980 But I mean, I've been a very successful businessman.

00:26:17.240 I've done really good, much better.

00:26:19.220 Now people are understanding how good I've done because they're seeing it much better than the fake news wants to give me credit for it.

00:26:26.020 So, John, what's your thoughts on Jerome Powell?

00:26:28.200 You know, I'm sort of tied and torn because it seemed like he's played politics a little bit too much during COVID.

00:26:35.340 He was sort of playing games with the rates when they needed to be lowered.

00:26:38.180 President Trump, as he said, he had to almost threaten him to do something to stimulate the economy that was hurting so bad.

00:26:45.060 Now you've got an economy that's teetering and he's sitting there cutting rates and doing this.

00:26:49.560 And it's almost like it's to try to save face for Joe Biden and Kamala Harris.

00:26:53.540 What is your thoughts?

00:26:54.220 Well, you know, what you just mentioned is a real possibility that this latest rate cut, the depth of the rate cut, was politically motivated in order to provide a boost to Harris.

00:27:06.640 You can't argue that that was not the case.

00:27:09.820 He's made a lot of mistakes.

00:27:11.560 I think that his approach to the job is absolutely missing.

00:27:15.220 But missing in one very important point, back when Alan Greenspan was Fed chairman, he was not afraid to bring up the importance of a thought to be gargantuan federal budget deficit to the performance, long term performance of the U.S. economy.

00:27:33.060 My goodness, I can't believe it.

00:27:34.800 We even have a bigger deficit relative to GDP today.

00:27:38.720 It's more than six percent at this stage of an economic recovery.

00:27:43.500 The deficit should be no higher than three to three and a half percent of GDP.

00:27:48.280 It's one point eight trillion dollars with perhaps every chance of approaching two trillion dollars next year.

00:27:55.820 This is ridiculous.

00:27:57.240 And this should be brought up by the Fed chairman over and over again, like it was by Greenspan. 0.66

00:28:05.640 But no, Jerome Powell, not a peep out of them regarding the deficit.

00:28:10.280 And the deficit helps to explain why, despite this latest rate cut by the Federal Reserve, they cut Fed funds by half a percentage point.

00:28:20.180 Instead of moving lower, the 10 year treasury yield and long term mortgage yields have climbed higher.

00:28:27.780 I think the hardest thing to explain to someone these days is how you make more money on a bond and a yield in six months, leaving your money there than on a five year.

00:28:40.640 It's sort of so asked back or a 10 year that it's like almost unimaginable to explain, to try to explain to someone.

00:28:47.780 It's better to just let it go and and go ahead and buy it into your bonds and stuff.

00:28:52.320 So the problem is I was talking to my father, who's spent 30, 40 years in on Wall Street.

00:28:58.060 The problem is, is Jerome Powell is not an economist.

00:29:00.300 He doesn't know what the hell he's doing.

00:29:01.420 I think if I trade, he's a lawyer.

00:29:03.040 And when you put somebody in who doesn't know what they're doing, look at Boeing. 0.99

00:29:06.320 David Calhoun has ran Boeing into the damn ground. 0.96

00:29:09.260 You put a businessman in to run an engineering company and that's what happens. 0.99

00:29:12.960 It's it's just the truth of the matter.

00:29:14.880 And I think it's the same thing with Jerome Powell.

00:29:16.960 You have a guy who doesn't know what the hell he's talking about.

00:29:18.720 But, John, our economy here at home is in trouble.

00:29:21.360 7-Eleven, the convenience store giant, announcing they're closing 400 stores across America, 444 to be exact.

00:29:28.220 Walgreens this week announcing they're closing 1,200 stores.

00:29:32.100 Bank giants, JP Morgan, Chase, Bank of America, closing branches all across this country.

00:29:38.100 If this doesn't scream that we're in trouble right now, I really don't know what does.

00:29:42.280 What are your thoughts?

00:29:43.860 You know, good jobs are disappearing.

00:29:45.720 If we looked at the private sector jobs number for the month of September, we would find that the only substantial jobs growth you could find occurred in the industries of leisure and hospitality.

00:29:59.500 That's low paying as well as health services.

00:30:02.880 And that tends to be low paying.

00:30:04.680 So, jobs growth has been skewed towards these lower paying occupations.

00:30:10.680 And thus, we shouldn't get carried away when we read that we had 254,000 new jobs created in the month of September that well exceeded expectations.

00:30:22.180 No.

00:30:22.460 Before it gets adjusted, John.

00:30:24.100 Before it gets adjusted down 200,000.

00:30:27.260 Yeah, before they revise it lower by 200,000.

00:30:30.280 But the fact of the matter is, there is lack of quality jobs being created in this country.

00:30:37.320 And that is why that early October reading on consumer sentiment from the University of Michigan is close to a historical low.

00:30:47.020 And by the way, when we had consumer sentiment in the month of October, as low as it was this past early October, the incumbent party always lost the presidential election.

00:31:00.380 And I wouldn't be surprised if history repeats itself.

00:31:03.540 Also note, too, that a lot of these jobs being created are either directly or indirectly being funded by the government.

00:31:10.640 Government jobs are doing great, as well as jobs in health care that are, in effect, often funded by the government.

00:31:18.460 And let's not forget, some of those construction jobs are related to the subsidies provided to companies that are building with microchip factories, as well as other facilities that are related to green energy.

00:31:36.520 Yeah, you know, it's very odd, John.

00:31:39.340 And I do a lot of traveling.

00:31:41.560 Over the last few weeks, I was over on the West Coast.

00:31:43.900 I was in Vegas for a little bit for some meetings.

00:31:46.520 And one of the nights I went out for a fairly expensive dinner with some friends at a restaurant at a brand new hotel in Vegas.

00:31:54.180 And it's a restaurant that on any day of the week, specifically a Friday or Saturday, especially a Friday or Saturday, I should say, is packed wall to wall.

00:32:02.080 You couldn't get in.

00:32:03.060 And I'm nobody special.

00:32:04.020 So I make regular reservations and I was able to get in on a Friday, Saturday night.

00:32:07.020 I go to this restaurant.

00:32:08.260 The place is completely empty.

00:32:09.440 When you see the richer stop spending, John, you know, there's a problem.

00:32:13.260 I often go to a cigar lounge out here by my place talking to the guy the other day.

00:32:18.380 He said sales are terrible.

00:32:19.980 People are just not spending.

00:32:21.080 So now you've got the blue collar worker who's not buying cigars. 0.68

00:32:24.720 Restaurants all across the board, John, are getting killed.

00:32:27.620 I think people are very terrified of what's happening.

00:32:30.380 What are your thoughts as we wrap up here on where the economy sits right now?

00:32:37.000 Are you a little bit more optimistic than me?

00:32:39.520 You know, that we're not on some sort of seesaw that can go either way at any point.

00:32:43.800 I think this economy is slipping into recession for the current economic recovery.

00:32:52.880 It's going to be death by a thousand cuts, if you like.

00:32:56.160 But I think the forthcoming recession is necessary to force a correction of the imbalances that we currently suffer from.

00:33:04.240 The lack of affordability in housing, unfortunately, that's only going to be remedied by a decline in home prices.

00:33:12.480 And that may already be underway in states like Florida, Texas and California.

00:33:18.900 And moreover, at some point, we've got to do something about excessive government spending.

00:33:25.480 We've got to get taxes a bit lower.

00:33:28.940 You know, we've got to return to the economy that we had under Trump back in 2017, 2019,

00:33:37.500 when the young people were being encouraged to work as hard as they possibly can, gain these skills because they saw some upside for all of their efforts.

00:33:49.880 So we and it's enough to get there is going to take some macroeconomic pain for the United States.

00:34:00.260 And it's going to take someone with a brain to lead us there, John.

00:34:03.480 And I think that man is President Trump.

00:34:05.280 Thanks for all the good work that you do and the good work that the word that you get out there and the honesty,

00:34:10.100 because as we saw through those video clips from that fellow at Bloomberg,

00:34:14.300 there's not very many honest people out there who will tell the truth.

00:34:18.080 And, John, you're one of them.

00:34:19.140 We appreciate it.

00:34:19.780 John Lonsky of the Lonsky Group.

00:34:21.660 John, thanks so much.

00:34:22.900 Thank you so much, John.

00:34:24.580 Thanks to John Lonsky.

00:34:25.720 And thank you all for being with us today here on The Great America Show.

00:34:28.980 Please be sure to join us back here tomorrow for The Great America Show as our quest for truth, justice and the American way continues.

00:34:35.720 Thanks again for being with us today.

00:34:37.000 We'll see you right back here tomorrow.

00:34:38.720 May God bless you.

00:34:39.720 May God bless America.

00:34:41.120 And may God bless the great Lou Dobbs.

00:34:43.140 God bless you.

00:34:49.760 God bless you.

00:34:50.700 God bless you.

00:34:51.220 God bless you.

00:34:51.380 God bless you.

00:34:52.960 God bless you.

00:34:53.080 God bless you.

00:34:54.020 God bless you.

00:34:55.240 God bless you.

00:34:55.820 townhouse.

00:34:56.120 God bless you.

00:34:57.080 God bless you.

00:34:57.560 God bless you.

00:34:58.340 God bless you.

00:34:59.840 God bless you.

00:35:00.720 God bless you.

00:35:01.260 God bless you.

00:35:02.860 God bless you.

00:35:04.040 God bless you.

00:35:04.380 God bless you.

00:35:04.700 God bless you.

00:35:04.780 God bless you.

00:35:05.280 God bless you.

00:35:06.160 God bless you.

00:35:07.180 God bless you.

00:35:08.560 God bless you.

00:35:08.620 God bless you to thank you.

00:35:08.900 God bless you.

The Great America Show - October 21, 2024

BIDEN ECONOMY FAILING ALL AMERICANS

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