WITCHHUNTS, RADICAL DEMS AND BIDENFLATION
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Summary
Former White House Chief of Staff Mark Meadows joins the Great America Show with Lou Dobbs to discuss the Democratic response to the January 6th riots in Washington, D.C. and the ongoing investigation into the events that transpired that day.
Transcript
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Ladies and gentlemen, welcome to the Great America Podcast with Lou Dobbs,
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always in the fight for truth, justice, and yes, our American way of life.
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And now, here he is, the Peabody award-winning voice of truth, the great Lou Dobbs.
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Hello, everybody, and welcome to the Great America Show.
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There is much happening in Washington, and much of it is, well, more of the same.
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That is, more lies emanating from the White House, more skullduggery on Capitol Hill.
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There is obviously no limit to the venomous, radical, dim compulsion to hound and harangue
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It seems without Donald Trump, the Democrats have no purpose at all.
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Nancy Pelosi formed a special committee with which to go after the former president,
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the Dems seeking to make much more of the shameful January 6th riots on Capitol Hill
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But, of course, in order to do that, they needed much more than they actually possessed.
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Riot, trespass, limited pillaging simply weren't enough for the radical Dems.
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No, they saw political opportunity in that day on Capitol Hill,
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and what they conjured was insurrection, a chance to go after Donald Trump one more time.
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They had gotten away with every vicious, baseless attack on him all four years of his presidency.
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So why not give it a go now that he was no longer in power?
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Pelosi named her pack of persecutors the January 6th Committee,
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and now they have the former president's chief of staff, Mark Meadows, in their sights.
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The full House voted to hold Meadows in contempt of Congress.
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And with us today is Mark Meadows, former congressman from North Carolina,
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former chair and co-founder of the Freedom Caucus,
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Mark, it's great to have you on The Great America Show.
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And it is slings and arrows are coming fast and heavy at you from almost every direction.
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But one in particular, that direction being from the left,
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they just will not quit persecuting you and the president.
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Even after he's left office, it is an ugly thing to watch a unanimous vote now from the January 6th Committee,
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which means two of your fellow Republicans joined the radical Dems to vote against you
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in what appears to be, again, just persecution, political persecution.
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And honestly, when you stand on principle and you stand for the rule of law and what's right,
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I can say this, you know, it's so many Americans have wished me well.
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And the prayers from all over the country, coast to coast, Lou, have been very touching.
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This is about a political retribution because they didn't like Donald Trump.
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And they're afraid that he's going to run again.
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And I'm, you know, I'm as his chief of staff, he is invoked the executive privilege.
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And I'm not going to be the first chief of staff in the history of our country that goes
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You know, if the courts want to weigh in on this and say that Congress is right, that will
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And it's certainly not Congress's and Adam Schiff's and the January 6th committees to
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Well, that issue of executive privilege is fascinating.
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It's important, critically important in all of this.
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But I believe most Americans don't understand why that committee, a partisan committee, it is
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a bunch of Democrats and two rhinos charging full steam ahead at the president, the former
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And certainly there will be lots of others and a group of detainees being held, some of
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At some point, why can we not get the Supreme Court, whatever is the appropriate?
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Court to say this stops here because this is a political bloodbath in the offing.
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And I think hopefully the courts will weigh in, perhaps even the Supreme Court.
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As you know, I filed a lawsuit against Nancy Pelosi in the January 6th committee.
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That's basically saying the courts should weigh in.
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The subpoena power that this committee has exercised.
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And I'm not just talking about the subpoenas issued to me and a few others.
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I'm talking about dozens and dozens, if not hundreds of subpoenas that they've issued.
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And when they do that, you see a very problematic path that we're going down.
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Because then they can not only subpoena the private text messages and emails of individuals,
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but they're not looking at it from a legislative purpose standpoint.
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Oh, they may say, oh, it has some kind of legislative calisthenics to get them to a point to justify
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Everybody on the January 6th committee has already voted to impeach President Trump.
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What they're trying to do is to seek the very best that they can to establish political revenge.
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And when you allow one party to do that, it is, and you mentioned, it's all Democrats except
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for Adam Kinzinger and Liz Cheney, who were the two Republicans to vote for contempt.
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And for me, my oath to my country and certainly my support of President Trump and his rightful
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claim is not something that you can just give away regardless of the consequence.
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You know, everybody, you know, they look at it and the consequences.
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I mean, honestly, if I'm found guilty of this charge, you know, I could serve time.
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And yet, I am in such a much better position than so many people that are listening in right now.
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I've got friends who truly I've been praying because they've got family members with cancer.
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We've got law enforcement officers that, you know, stand in harm's way each and every
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We've got service members who are separated from their families.
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And fortunately for me, you know, my Heavenly Father blessed me with a great family and a
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And so I want that message to be very clear to them that, yes, I'm standing on principle,
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but we're trusting that the end result, that the truth will prevail.
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Well, spoken as I would expect, Mark Meadows is a man of great character and class and faith.
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I like to think I've got good character, but I've got to tell you, those two rhinos sitting
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on that committee are lower than snake bellies.
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Adam Schiff is a cretin of the lowest order, and those who are joined with him on the Democratic
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They are demonstrating contemptuous behavior, contemptuous of everything this country stands
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for, integrity, fair play, and the national interest.
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You know, they are, in my opinion, awful, and they have much to account for.
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You know, he took a text message, and then he manipulated it to indicate that Jim Jordan
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was saying or implying something that he didn't imply.
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You know, if you did that in a court of law, you'd be thrown out.
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They'd throw out the case immediately, and yet, you know, what do we get from the January
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It's everything else that they're doing to try to spin their narrative to suggest that
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there was advanced knowledge in the West Wing of a security breach that happened on January
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I can tell you the president and I certainly weren't aware of any, and I'm not aware of
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anybody in the West Wing that is guilty of the things that they've accused them of.
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Well, and I know you well enough to know that they should accept that as the word of an honest
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man of integrity who's demonstrated that throughout his life and career.
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But this is, as you said earlier, this is not about, you know, anything approaching a serious
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This is the same order as two attempts at impeaching the president of the United States
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simply because you said because they didn't like him.
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I think it's because they fear him and everything he stood for.
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He talked about exactly the issues that are most important to the country, whether it be
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the strength of our military, whether it be the movement of our military out of places in
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which they have absolutely no business in the tradition of the United States.
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Our heritage is not to be a police state with an army that is at the beck and call of third
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And for those who would try to find a national interest in it, it is disgusting what they
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And here's the interesting thing is if they did not fear that he was going to run again
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in 2024, I don't know that they would be this aggressive.
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Now, they may have to be because, Lou, here's the other fact.
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I mean, we've got inflation that's hitting gas prices that are hitting hitting highs.
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We've got a border that is so open at our southern border that people are coming and going.
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The drug cartels because of an open border, the Taliban in Afghanistan because of the debacle
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of the way that they left Afghanistan and China.
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Because of the way that they're they're negotiating with China from a position of weakness.
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The only thing they're building back better are our adversaries, not our allies, and certainly
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These Democrats right now really don't want to run on their record because their record
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is one of opening the borders to fentanyl, to heroin, cocaine, methamphetamine.
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It is a record of death across that border as the cartels smuggle sex traffic, smuggle drugs,
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They're a part of the corrupt, the corrupt machine that makes it possible for those cartels
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Last year, 100,000 overdose deaths, the leading cause of Americans, 18 to 45 drug overdoses.
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And the Democratic Party will not join with the Republicans, the Trump-led Republicans, and
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It's ignorance at the highest level, and it's only made possible because the Republican leadership
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is so effete and so feeble and so cowardly that they won't stand up for principle and
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the men and women who support those principles and advocate those principles, namely Donald
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I find this situation unbearable in this country, that we have to tolerate this nonsense, and
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I don't know how we extricate ourselves from these radicals, neo-Marxists, whatever they
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want to call themselves, and the deep state, who in combination are destroying the nation.
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I can tell you it's a combination of the deep state, apathy on behalf of Republican leadership
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who is willing to just allow things to continue to go and pretend like Donald Trump was never
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That's what Washington, D.C. would like to do, is they'd like to pretend that Donald Trump
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was never president, didn't accomplish the historic things that he was able to accomplish.
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The problem is, is the history of what he accomplished continues to be a constant reminder to the
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American people that he was one of the few people to ever run for office who actually
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You know, when he came down that escalator, he made a lot of promises, and he was the president
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that actually fulfilled those promises each and every day because he was willing to actually
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And sadly, too many people love the titles instead of loving the responsibility that goes with it.
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How do you think that Adam Schiff can ever show his face again?
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He created a playwright's version of the president's phone call with President Zelensky of Ukraine.
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He is everything that should be absolutely scorned in this country.
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And yet he sits there like a peacock, a pencil neck peacock, wagging a finger at people who
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are so much better than him in every sense of principle and integrity.
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In fact, they play his false statements, whether it be, and you mentioned it, you know, the problem
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is, is had he just done this one time, that would have been different.
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You know, had he had just done it to the president over a false pretend-like phone call, you know,
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Well, it got played on all the, most of the mainstream media, not as a parody, but as the truth.
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In fact, I had people saying, you know, they were quoting Adam Schiff and saying, well, the president
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You know, he returned to his ways and did the same thing to my good friend, Jim Jordan.
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Let me just tell you, Jim Jordan has not only fought for this country each and every day
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in the legislature, both in the state house in Ohio and in Congress, but he's willing to
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not only support President Trump, but support the American people who deserve representation
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And for Adam Schiff to essentially cut and paste to make Jim Jordan and others look bad,
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And it shows the true motive behind the January 6th committee.
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It's not one that is really trying to make the Capitol safer.
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Well, I've got an idea for the January 6th committee.
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Investigate why the hell people are still being detained without charges.
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Why are Americans being treated as though they are third rate citizens of a third world country
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Why isn't the committee investigating clearly the state and the status of those people who
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are quickly being, and far too quickly being, forgotten by people in power who could actually
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It's, it's so much of what happened in the riots, uh, uh, in 2020, uh, that, that literally,
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you know, instead of looking into it, they were looking in how to make bail and, and, uh,
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It's not standing on the side of law and, or, you know, it's interesting that, you know,
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they keep talking about the rule of law, but this is a party that, that really not only
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wants to defund the police, but wants to replace them with, with social workers across the country,
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uh, in, in hopes that somehow that's going to send a message, uh, to the woke left.
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I, I just, uh, listen, I, the president has had a long, uh, in, in steadfast support of
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Uh, and, and it just, it galls me to see, uh, what this committee is ignoring, uh, while
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they're trying to, uh, put together a, uh, a fictional novel of what supposedly happened,
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Speaking of, uh, books, you have a terrific new book out.
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We want to be sure to recommend it to our audience.
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And we do so, uh, highly and enthusiastically, uh, it's called the chief's chief.
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Uh, and that is of course, Mark Meadows, who served as, uh, president, uh, Trump's chief
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of staff, uh, in his final year, uh, in the, uh, white house.
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And, uh, it's a terrific book and a terrific account of that, that period, uh, which seems
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frankly, so long ago to me, Mark, I don't know about you.
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It just seems like ages ago, uh, when we had a president who put America first, who, who
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instilled fear and confusion in the hearts and minds of our enemies, rather than this,
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uh, feeble, uh, non-entity, uh, who continues to make mistake after mistake, uh, whether
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And I put that in the book, uh, you know, the, the president, uh, you know, one of my
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latter conversations with him, as I was finishing up the book, he says, Mark, he says, man, I wish
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And the other thing he says, can you imagine it would have gotten this bad, this quick.
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And, and yet what we see is, is that he is still willing to take the message to the American
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You know, he's, he's still the only president that I know of that can then go out and get
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a stadium full of people cheering wildly, um, you know, chanting, we love you because
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he was willing to remember the forgotten man and woman.
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The final chapter in the book, uh, talks about, uh, the Afghanistan withdrawal and some of the
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problems that, that secretary Esper and, uh, general Milley had when, when they were serving
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president Trump, but it also talked about the fact that we didn't have to lose 13 service
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members because of the plan that, that Donald Trump had in place.
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And, and it, it closes out by talking about the fact that in my opinion, we need four more
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We're going to, we're going to find out about that.
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I think, uh, quicker than many people think, because, uh, we are racing toward that midterm
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election in 2022, uh, and, uh, it's, we've got to fix what we can about the house and the
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I know that there's great optimism about the Republicans winning.
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Uh, but I have to say to you, Mark, I'm very concerned about the leadership of the RNC.
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I'm very concerned about the rhinos that, that still infest the, uh, Republican party.
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Uh, your thoughts here as, uh, as we wind down.
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Yeah, Lou, you've been very, uh, candid about your assessment and quite frankly, uh, willing
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to hold the Republican party accountable and they need to be held accountable.
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I can tell you, it's not enough just to have a Republican majority with an R behind their
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It needs to be people who are willing to stand up for the forgotten man and woman.
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It needs to be Republicans who are willing to actually stand in the gap for the people
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And ultimately at the end of the day, what it needs to be are people who are willing to
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hold their job very loosely and stand on principle and make a difference and truly train and drain
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Those are the kinds of people that we need to make sure we elect in 2022.
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I, and, uh, and I hope that you'll be amongst those leading that effort.
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Well, I, I have no plans to run for office again.
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Uh, I am going to stay, as you know, I'm working, uh, for a conservative nonprofit, the
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conservative partnership Institute in Washington, DC.
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I'm working with a lot of those freedom fighters that are willing to actually have backbones
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So, uh, I'm going to work behind the scenes to help them to make sure that they're there.
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And, uh, and should, uh, president Trump decide to run again, do my very best to make sure
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that, uh, I get a good seat at his, uh, second inauguration.
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I tell you, uh, it's, uh, I I've said, I don't know whether he's going to run or not,
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but I do know this, uh, that he deserves the country, uh, uh, drafting him and putting him
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in office by acclamation for what he has had to endure his family and all, uh, uh, of those
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who have made his presidency possible, uh, and foremost amongst those, in my opinion,
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Uh, I mean, they, they all deserve so much better.
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And I think the American people, uh, would agree with that sentiment.
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Now we got to hope that, uh, he makes the right choice, right?
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Well, I, I, I hope he does, you know, I, I believe he will, I don't speak for the president
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and I don't speak for his campaign, but I do talk to him an awful lot.
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And I, I think that, uh, at the end of the day, uh, Donald Trump will be the nominee and
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he will, he will get the four more years, uh, despite, uh, the very aggressive partisan
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attacks that he continues to get each and every day.
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And, uh, Mark Meadows is amongst the, all of his great qualities, an outstanding political
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So you heard it here first on the great America show with Mark Meadows.
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And, uh, uh, my Deb and I are amongst those praying for your, uh, success and vindication
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and soon, uh, I'd like to pray a little bit about those Democrats, but I don't think that
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Probably not, but we, I appreciate your prayers, Lou, all the best to, to you and your wife
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and all those that are tuned in right now, uh, God bless them and God bless America.
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Mark Meadows, Mark, a great American in every way.
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Uh, and, uh, his book, we recommend it to you highly.
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Uh, it is the chief's chief, a great read, as they say, go out and buy two copies and tell
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your friends and neighbors to grab two, get two folks to buy a couple more.
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It's available now online and in bookstores, uh, everywhere that we, uh, appreciate Mark
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taking the time in the middle of this ordeal, uh, that he's going through to, to talk with
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We'll continue with the great America show in just one minute.
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Welcome back to the great America show, the most important trusted podcast in all the
00:26:14.280
If CNN can make such a hyperbolic claim about their audience, then we certainly can we're
00:26:23.360
And I want to say, thank you all as always for your support, we're growing and growing
00:26:29.960
We're still an acorn, but we're a big acorn now.
00:26:34.380
The political cross currents in the United States right now are intensifying and pressure
00:26:41.620
The Biden presidency is creating much of that strain.
00:26:45.360
Biden himself is weak and old, a man not given to honesty or great judgment.
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His poll numbers reflect his ineptitude and that of his vice president.
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It seems to turn a page these days, trying to project what is certainly unnatural warmth.
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She actually claimed the other day she really, really, honestly likes people.
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It's the small beginning of a charm offensive that lacks at this point only charm.
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Harris is trying to fend off critics who portray her as hateful, mean, a nasty person
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who not only is contemptuous of her staff and others in the White House, but is uninterested
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So with all the drama within the administration, Mr. Biden is contending still with Vladimir
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Putin, continuing his buildup of troops, threatening Ukraine.
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Europe has made it clear to Putin there will be grave consequences if he invades Ukraine.
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Here at home, the issues, a lack of leadership, a confused high court, rhino activist, liberal
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chief justice, Roberts, begging his associates on the right to leave Roe v.
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Wade untouched by their originalist, textualist interpretations of the Constitution.
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Roberts, as usual, playing to his many friends on the left.
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There are only two friends on the left, however, on the high court.
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The economic headwinds are beginning to howl, whether it's trillions more of what could be
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destructive fiscal stimulus, Mr. Biden's Build Back Better bill, or the continued dislocation
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of the global supply chain in its many variations.
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So here with us now to guide us through these complexities, events, and issues, Professor Steve
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Hanke, Professor of Applied Economics at Johns Hopkins University.
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We're all looking for assured prosperity in America, but there also may be a few setbacks,
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Your judgment about where we are and where we're headed.
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We're sinking in the swamp that's down there south of Baltimore, where I'm speaking from.
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Even some of the Democrats finally have come around to pointing a finger at the source of
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the problem, which is the Federal Reserve and the mismanagement of the Federal Reserve,
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They have exploded the money supply since COVID.
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And as we all know, inflation is everywhere and always a monetary phenomenon.
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Forget the supply chains and all the ad hoc reasons they come up with for the explanation
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It's all about money, too much money, excess money.
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And we've got now an inflation that's, you know, record levels for us.
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Now, John Greenwood, the chief economist at Invesco in London, and I read an article in
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And we said in that article that inflation would end the year 2021 at 6% or even as high as 9%.
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And so you have to ask the question, well, how could we write that in July?
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And we were using the quantity theory of money, the kind of Milton Friedman, plain vanilla quantity
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theory of money that's been around clearly since the 17th century.
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And that says that if you produce excess money, that excess money is going to go into inflation.
00:31:00.500
Well, and when you say forget the Federal Reserve and forget about rather the fiscal stimulus and
00:31:08.640
they build back better bill, for example, we're talking about now in fiscal stimulus over $5
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It goes into M through M zero through M four in a hurry.
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It's it really is stimulus and it really is piling on and against that asset, those assets
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I mean, we're looking at the most overheated economy and prospect in, well, anything we've
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Now, here's here's the way it's working, as you describe it, which is correct.
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They've been spending money like drunken sailors down there and running up a big deficit.
00:32:16.140
So to finance the deficit, the government issues bonds.
00:32:21.640
And this is where the money part comes and the inflation comes.
00:32:29.980
They've been what they call monetizing the debt.
00:32:33.540
And when that and that that that all these M's that you're talking about, the money supply
00:32:38.460
measures, M zero, M one, M two and three and four and so forth.
00:32:42.540
So that that that is what comes out of this expanded government spending, government deficit, key, the key Fed monetizing the debt by buying these bonds and expanding their balance sheet at the Fed and expanding the money supply.
00:33:06.040
And that's why we that's why we have a big increase in the money supply.
00:33:11.080
If you don't increase the money supply, then you will not get inflation.
00:33:16.000
Now, let's go through a scenario where that would happen.
00:33:19.640
They let's say they were they were spending all this money.
00:33:23.160
They were running up deficits and the Fed wasn't buying the debt.
00:33:27.740
They were selling the debt to the non-bank public.
00:33:32.200
Well, that would not create inflation, Lou, because it would suck money out of the private sector.
00:33:38.180
If Lou Dobbs was buying bonds from the government, you would have to give up income and it would be just like a tax.
00:33:48.160
The only difference is you'd actually get your principal and interest back from buying a bond rather than a tax.
00:33:54.660
So so this it's it's a little bit tricky for people to get their their head around government spending and government deficits does not necessarily lead to inflation.
00:34:08.040
It if the bonds are not purchased by the Federal Reserve, the central bank and monetized.
00:34:22.080
They create money when they buy and they draw money when they sell.
00:34:37.160
And and and that is what is expanded the money supply.
00:34:41.540
And with the expansion of the money supply, it's it's been excessive and and that excessive expansion is what's causing the inflation.
00:34:51.500
Now, the interesting thing about it, you say, well, we don't read about this in the press.
00:35:01.840
There's not even a mention of the word money or money supply in the press.
00:35:07.680
They have all these ad hoc reasonings and and the ad hoc reasons our supply chain is causing it.
00:35:16.780
The plug port and Long Beach, the covid, the used cars.
00:35:23.340
We don't we can't produce enough cars because semiconductor problems.
00:35:27.300
And you name it, there there is an infinite there are an infinite variety of ad hoc reasons for inflation.
00:35:38.400
The only thing causing inflation is the money supply, period.
00:35:44.400
And by the way, this this is something you've been on for years.
00:35:48.980
If you look at the press, the press is complicit in all of this cover up because it is a cover up all these ad hoc reasons.
00:35:59.660
And and they don't report it because they bought the spin coming out of Washington or they're just it's possible they're just incompetent and don't get it that way.
00:36:11.760
But the bottom line is Hankey's 95 percent rule, Hankey's 95 percent rule is that everything 95 percent of what you read in the financial press is either wrong or irrelevant.
00:36:26.400
And and 95 percent, maybe even higher on this inflation thing is either wrong or irrelevant.
00:36:36.020
Or that, yeah, absolutely put a lot of pushing their own book.
00:36:41.120
I mean, they they basically are buying the spin that's coming out of Washington.
00:36:54.260
With that state, we've you know that I think that's what we call a pretty thorough tiptoeing through the weeds here a little on economics.
00:37:02.540
And I but I got to tell you, folks can put up with us.
00:37:06.640
They you gave them a very good tutorial and I'm sure that everybody appreciates it as much as I do.
00:37:16.980
Yeah, let me before we turn the page, Lou, the key thing is and the thing that Greenwood and I were talking about even back in July is this inflation is not going to be temporary.
00:37:37.120
Paul Krugman, New York Times, all Janet Yellen, Janet Yellen, Jerome Powell, President Biden, you name it.
00:37:47.660
Every dog and cat you can find is telling us this thing is going to be transitory.
00:37:54.620
This rate that we've got between six and nine percent will last through 2024, just given the excess money that's already been produced.
00:38:17.300
And are you saying that we're looking at a ceiling at six point eight?
00:38:24.620
This this this is this forecast is based on the assumption that the Fed will actually start slowing down the money supply.
00:38:37.560
Right now, the money supply is growing at a little over 12 percent measured by M sub two.
00:38:44.440
And that's double the rate that would be consistent with hitting the Fed's inflation target at two percent.
00:38:51.940
Right. So Green Greenwood and I have assumed in this forecast that quickly they will reduce the growth in the money supply down to around six percent.
00:39:03.340
Get it get it in the zone where it where it has been and where it should be.
00:39:07.460
And then we will still have this this inflation of around six to nine percent going into 2024 because they've already produced the excess money.
00:39:19.700
In other words, this government spending and the government deficit and the monetization of that has already created a huge amount of excess money that will be drained out of the system and inflation over these next two or three years.
00:39:37.320
So I want to ask you about some of the implications so people can put some money in their pocket or save the money they've got or at least have a very much better understanding of what these markets are going to do.
00:39:49.700
What they're going to do and what they should expect in terms of our standard of living, our quality of life and our financial situations.
00:40:02.280
If the inflation rate is going to do that through 24, we're talking about, I think, as I understand you correctly, four to four to six percent real inflation.
00:40:16.920
And people want to know, should they be buying Bitcoin?
00:40:24.720
So let's start with stocks in that environment.
00:40:27.900
What is the history of staying in the market as inflation, inflation that we haven't seen for at least 40 years?
00:40:37.840
And I think you've got to go back even farther to get a level like this.
00:40:42.400
What is the what is what are your prospects if you're an investor in the stock market?
00:40:48.420
OK, the best place to start is to look at the bond markets and see what the bond market actually is pricing in right now in terms of inflation.
00:41:01.300
And if we do that, we find surprisingly that the market has bought into this spin coming out of Washington.
00:41:13.820
They've priced in the the the transitory scenario for the next year.
00:41:21.300
If you if you look at the forward curves and expectations about inflation, they're pricing in about three and a half percent inflation for the next year.
00:41:36.800
Then if you go beyond one year, Lou, that the rates drop to two to two and a half percent inflation is priced into the market.
00:41:46.320
So my view is since since we already know that baked in the cake, we're going to have at least six percent inflation for the for the next two or three years, at least six percent, no matter no matter what the Fed does.
00:42:02.120
Right. We have a massive mispricing of the bond market.
00:42:06.300
We're going to have the biggest train wreck in the bond market that we've seen in the history of man because of this mispricing.
00:42:17.120
Now, that will cause number one, the what's what's going to happen.
00:42:23.280
Of course, the bond bond prices will tank for nominal bonds.
00:42:26.940
I'm not talking about Treasury inflation protected securities tips bonds because they're protected from from inflation.
00:42:34.720
But the nominal bond, by the way, I think we should say that when we talk about the tips bonds, that that is a very good choice for those who want to be cautious and to be insulated to a considerable degree against inflation.
00:42:51.240
That's correct. Yes, that's absolutely correct.
00:42:53.920
That's it. It's the only way if you're in the bond market, that's the only way you can protect yourself.
00:42:59.600
Definitely. And in general, that is a good way to protect yourself.
00:43:04.680
It is conservative, but it is it is protective.
00:43:09.980
Now, the bond market is is just absolutely going to be killed and and riled up.
00:43:19.520
I started with bonds and this what is an obvious, massive mispricing in the bond market is going to come home to roost with a lot of adjustments in the bond market.
00:43:33.160
A lot of blood is going to be on the street and that will slop over into the stock market that it will rile the stock market tremendously.
00:43:43.340
So right now, I think there are a lot of risk, not obviously in the bond market, but also in the stock market.
00:43:58.000
That's that's always the classic inflation head or or real assets of any kind.
00:44:03.940
You know, we've already seen huge increases in asset prices and in homes and apartments, real estate, real estate.
00:44:16.640
So that's still I think I think that's a winner.
00:44:19.660
And related to that, by the way, home builders and the equity markets, home builders are still, I think, a good bet in the stock market.
00:44:30.820
And principally because of the low inventory of residential housing, single home housing in this country.
00:44:48.020
We're behind the curve after the adjustment and the Great Recession, you know, the mortgage crisis in 2008.
00:44:57.460
Things really slowed down and the market adjusted and so forth.
00:45:01.940
But but in the in the process of that adjustment, the adjustment, of course, adjusted, but it adjusted maybe a little bit too far.
00:45:11.600
So we've got a backlog, a backlog of construction that has to take place.
00:45:17.180
And that means that home builders are probably in pretty good shape.
00:45:20.740
They're going to they're going to have a good rigorous demand facing them for quite some time.
00:45:27.300
Now, people listening to you, Steve, are thinking to themselves, well, I'm we're talking inflation.
00:45:37.140
Let's just assume that for right now, those are the only two avenues to go.
00:45:42.280
Which would you take and what are the risks for both?
00:45:52.800
And in fact, there's a there's a classic book called The Golden Constant, which is still in print.
00:46:00.540
And the golden constant is that if you really want to protect yourself over long periods of time and protect yourself with constant purchasing power, gold is the way to go.
00:46:17.840
If you if you have an ounce of gold, it'll always buy you essentially the same packet of goods and services.
00:46:27.980
Now, Bitcoin is completely another ballgame because Bitcoin, if if you like to go to casinos and gamble, then Bitcoin is for you.
00:46:45.060
This is a highly, very highly speculative asset that I think has a fundamental value of zero, actually.
00:46:56.320
By the way, it's it's not used for anything but speculation.
00:47:03.020
Obviously, it's just up there virtual in the sky.
00:47:12.040
You can't go in and buy a cup of coffee in those places and Bitcoin or groceries or anything like that.
00:47:19.020
The transactions that are used, about half of them are involved in money laundering and illegal activities.
00:47:27.800
And those and and if that isn't good enough to give a person a pause, I would like to remind everybody that, you know, when you've got El Salvador and communist China behind a speculative investment, a speculative asset.
00:47:45.360
I'll put it that way if it's even an asset, you might give, you know, you might scratch your head and say, no, thank you.
00:47:55.040
I could have made a lot of money at Bitcoin, but I think it's I have thought from the very beginning that it is an absolute crapshoot with the advent of the involvement of the communist China behind its mining, behind its its transactions.
00:48:15.500
In many parts of the world, there's no way in the world I touch most of the mining for Bitcoin was in China.
00:48:23.640
But remember, China, even China has cut that out.
00:48:30.400
And now, where is the biggest center for mining Bitcoin?
00:48:37.540
In China, you have to believe that they've quit mining.
00:48:45.940
I think that it's a play against the reserve currency, which is the dollar, of course, that they want to see how far they can extend it.
00:48:53.680
So, you know, just on that, on that one, my view is not your view.
00:49:03.560
And anyway, that's that's that's that's that's that's that's that's why we that's why we get on here and exchange views.
00:49:15.100
We can argue about it, but we come to the same conclusion.
00:49:22.760
If you if you like to go to casinos, if you like to go to Vegas, roll a dice on Bitcoin.
00:49:30.460
I I'm not going to I'm I'm not one to prohibit people from doing things that I would I wouldn't necessarily do.
00:49:40.160
Each individual should be free to choose what they want to do.
00:49:45.520
I'll guarantee you this audience knows about they know they've got a choice and they make sure that those choices are.
00:49:51.920
They're are assured this is a this is a tough, smart, independent, whether they're Republican or moderate or conservative, whatever you want to call them.
00:50:04.300
You know, they're they believe in choice, because that's what this country is about, Steve, we're we've gone way over talking about things that I think a lot of people need to know.
00:50:15.320
I hope that everybody has stayed with us through this.
00:50:18.800
It's been very informative and I appreciate you taking the time.
00:50:33.900
Don't touch Bitcoin and don't touch build back better.
00:50:42.800
I'd love the the projection at important school, their model, four point six trillion dollars, they say, is the actual cost.
00:50:54.840
I don't think there's a better, better example of what's wrong right now with the White House and the swamp, as you so eloquently put it.
00:51:05.400
Lou, the interesting thing is that the public is getting wise to this.
00:51:10.640
The Federal National Mortgage Association just did a survey and 70 percent of the participants in the survey indicated that they thought President Biden was wrong way Corrigan.
00:51:28.180
That should that should re re instill confidence in our fellow citizens to see that that poll result.
00:51:39.800
It means that this country is still functioning and has some healthy skepticism about government.
00:51:46.660
Steve Hanke, thanks for being with us, partner.
00:51:56.640
Join us again tomorrow for the Great America podcast.
00:52:00.800
Truth, justice and the American way will prevail against all enemies, against all odds.