Inflation in America is expected to get worse, and we may be headed toward our worst ever recession. Those are the latest warnings from economist Peter Schiff. Plus, we ll get into the latest on the SBF scandal rocking the crypto world.
00:02:26.800What I'm most excited about is people are starting to feel a sense of optimism as they see the impact of the achievements in their own lives.
00:02:35.460It's going to accelerate months ahead.
00:02:38.280And it's part of the broad story about the economy we're building that works for everyone.
00:02:47.080Well, remember, incumbent in presidents always claim that the economy is great while they're in office.
00:02:52.960You know, if the circumstances were identical and Donald Trump was still president, Biden would be criticizing the very economy that he's now touting.
00:03:07.600Jamie Dimon, the J.P. Morgan CEO, said inflation could tip the economy into a recession next year.
00:03:15.200You seem to think he's understating it.
00:03:17.120Yeah, well, I think the economy is in horrible shape.
00:03:21.800I think that's one of the reasons that President Biden is so unpopular, because I think a lot of the people who are struggling in this economy, in part, blame the president.
00:03:32.200He's not solely responsible, but he certainly hasn't done anything to help everything he's done is actually taken a bad situation and made it worse.
00:03:41.280But if you look objectively at the data, the savings rate is at the lowest it's been since 2007.
00:03:51.620So Americans have blown through all their stimulus money, and now they're pretty much broke.
00:03:59.120If you look at credit card debt, it's at an all-time record high.
00:04:03.320So Americans are struggling to put food on the table and to pay the electric bill, and so they're borrowing more money on their credit cards.
00:04:11.140If you look at what's happening to wages, they are declining in real terms.
00:04:15.300And I think the real decline is being masked by the fact that we are understating inflation.
00:04:22.420I think the actual inflation rate is about double what the government will admit to, and that means that the real decline in wages is much greater, which explains why so many people are now moonlighting.
00:04:35.760A record number of Americans have two in three jobs.
00:04:39.120In fact, you have more Americans than ever that are working two full-time jobs.
00:04:46.560They would prefer to be able to support themselves and their family on one job.
00:04:50.840But unfortunately, in the Biden economy, that's not possible.
00:04:54.640And that's where all these jobs that are being created are going.
00:04:57.920They're going to people who don't want more jobs but who are forced to take them anyway because that's the only way that they can keep up with the rising cost of living.
00:05:05.540That's amazing because the November jobs report has been touted by the administration and even some of their critics as the sign of something good to come.
00:05:16.600The November report said the labor market looks strong.
00:05:20.880The economy added 263,000 jobs in November, well above the 200,000 job projection.
00:05:29.200And at the employment rate now, very flat at 3.7 percent.
00:05:34.340And that led the president to brag about how they're creating jobs.
00:05:38.040And you can hear him sounding very optimistic.
00:05:39.940Those numbers on paper, they do look good.
00:05:42.460But you're saying you have to dig a little deeper.
00:05:45.720Yeah, they're being very disingenuous.
00:05:47.880And that's a nice way of putting it about these numbers.
00:05:50.920Because the implication is that, oh, 260,000 people who didn't have jobs who were unemployed, now they've got jobs.
00:06:24.960And that is where these jobs are coming from.
00:06:26.800If people come out of retirement, let's say somebody was retired, they're 70 years old, they were looking forward to just playing golf and going to the beach and hanging out with their grandkids, but now they have to go take a job at Target because that's the only way to pay the grocery bill.
00:06:43.880Do you want to brag about creating an economy where unemployed people are forced to go back into the workforce?
00:06:52.600Well, what about the unemployment rate, right?
00:06:54.880They're saying it's nice and low, 3.7 percent.
00:06:58.740You know, this is some employers complain about this because they say they can't find good workers.
00:07:02.320That suggests all the jobs are filled and, you know, people are working to the extent they want to work.
00:07:08.280Well, the main reason that the unemployment rate is so low is so many people who aren't working are not counted as being unemployed.
00:07:15.180We have over 100 million working age Americans who are no longer in the labor market.
00:07:22.860Isn't that isn't that now the current narrative is that those people, unlike in some past, you know, low economic periods where they couldn't get jobs, people weren't whatever.
00:07:33.240These are supposedly people who have decided, you know, post pandemic, they saw the light.
00:07:52.240Maybe they can live off of welfare and housing vouchers and SNAP, you know, benefits.
00:07:59.060Maybe they find that a better alternative than having to actually work for a living.
00:08:03.320But I'm sure a lot of the people there are just discouraged workers.
00:08:07.800You know, you don't count if you've basically given up looking for a job because you don't think there's a job out there that you're qualified for at a wage that, you know, makes sense for you to take the job.
00:08:19.000After a year, you don't count even in the U6 number, which, you know, which is not the number that you just cited.
00:08:26.200If you look at the U6 number, which includes discouraged workers and people who are only working part time but would prefer to work full time and who are still looking for full time employment but can't find it, there the unemployment rate I think is closer to 7%.
00:08:41.200But even that unemployment rate, once you've been discouraged for over a year, you're no longer counted in that number either.
00:08:49.900So I think if you objectively measured the unemployment rate and included all the people who are not working but who would be working if they believe they can find a job or who have settled for a part time job when they prefer a full time job, I'm sure the actual unemployment rate is in the double digits.
00:09:11.060Hmm. What what about you mentioned the savings and the reports I read CNBC claims that consumers have one point five trillion right now in excess savings from the pandemic stimulus stimulus programs, but that it's going to run out at some point soon.
00:09:26.900But if if if if they've got one point five trillion still right now in excess savings, I mean, how does that compare to where we were and it doesn't support what you said, which is that money ran out?
00:09:40.040Yeah, the savings rate again is two point three percent. That's the most recent number that was released last week by the government.
00:09:46.800We haven't had savings that low since 2005.
00:09:50.860But one of the reasons that Americans weren't saving in 2005 is because they had so much home equity.
00:09:57.460They were just getting rich off the real estate. That was the peak of the real estate bubble.
00:10:03.380But right now, Americans are losing their home equity. Real estate prices are now falling.
00:10:09.920But what's more problematic is real wages are falling because the cost of living is going up and credit card debt has exploded.
00:10:17.020So if Americans really had all this savings, credit card debt wouldn't be skyrocketing.
00:10:23.100The reason credit card debt is going up so much is because people don't have savings.
00:10:27.000They can't afford to buy things. They have to borrow the money.
00:10:29.700But more of the money that that they're borrowing is being spent on food.
00:10:34.020It's being spent on electricity, on gas.
00:10:37.340I mean, look at all the big retailers that are reporting that their customers are spending more money on food and less money on everything else because food is so expensive.
00:10:52.820I have been in deep credit card debt back in my law school days when I had to put myself through school and support myself at the same time.
00:11:00.980And it's a sickening feeling to see those cards run up.
00:11:05.040And the people who run it up, yes, there are some who are just spendthrifts.
00:11:08.540But the vast majority of people, I think, who have enormous credit card debt are buying things they do need.
00:11:13.960And they'd rather not have it on credit, but they don't have the cash.
00:11:17.340And it's it's stomach turning to see the bills run up and to see the interest rates go up and the interest rates go up and up and up.
00:11:27.260And I can only imagine it would make people feel kind of angry at the Fed for, you know, every time they raise one of these rates, you owe more.
00:11:36.920Yeah, you're looking at credit card rates now that are about 20 percent.
00:11:40.680And that is a huge amount of interest to pay.
00:11:44.120And, you know, I think a lot of people today have a lot more consumer debt than just their credit card debt,
00:11:50.040because over the last few years, a lot of these buy now, pay later companies have come into existence.
00:11:56.820And so people are using those companies to buy stuff without money.
00:12:01.740But it doesn't show up in the credit card numbers because it's not credit card debt.
00:12:05.940But it's still debt that the consumer is obligated to repay.
00:12:10.320And I don't believe they're going to be able to do it.
00:12:16.940It's insurmountable. So as you see these credit card repayments get to these astronomical levels where people are not going to be able to pay that.
00:13:10.580And, you know, what also happens with credit card debt is once somebody with credit card debt recognizes that they can't pay it back and they've decided they're not going to pay it back or that they're going to file for bankruptcy.
00:13:24.840What they will do before is max out their credit card.
00:13:29.580They'll just borrow as much money as they can, because whatever they're buying, they're getting for free.
00:13:34.820Right. So if you're planning on going bankrupt and you have 50,000 worth of credit card debt, but you still have another 50,000 that you can borrow.
00:13:43.660You're going to go out and spend the other 50,000 and buy as much stuff as you can, because when you go bankrupt, you don't have to return that stuff.
00:13:50.800If you go out and you buy a bunch of clothes and some consumer electronics or take a vacation and then you file for bankruptcy, you don't have to give any of that stuff back.
00:13:59.620And it makes sense that before you file for bankruptcy to buy as much as you can, because once you declare bankruptcy, you're not going to get any new credit cards for a while.
00:14:08.660So you might as well buy everything you can before you go bankrupt.
00:14:12.620So you get that moral hazard that's going to accelerate the losses for the banks that are issuing the credit.
00:14:19.160That is a moral hazard. So I don't explain to me why there are these predictions by you, by Jamie Dimon, of others, of an impending recession when the Fed is doing everything it can to prevent that.
00:14:34.840It's raising interest rates every week, it seems now it's up four percent now and more coming.
00:14:41.280So that's that was supposed to combat the amount of money flowing around in the economy, chasing too few goods by saying to people who would otherwise have borrowed money or spent money.
00:14:52.440Whoa, whoa, wait, I don't want to do that now. And we're seeing layoffs at companies.
00:14:56.540So it seems like, OK, that's that's maybe part of the plan. So isn't it is it not going according to plan?
00:15:03.360Well, I'm not even sure they have a plan, but I think we're already in a recession and the rate increases that you're talking about are partially responsible for that recession.
00:15:17.660I think the recession is going to get a lot worse. Now, that doesn't mean the Fed shouldn't be raising rates.
00:15:22.300They should be. They should already have raised them a lot more than they have.
00:15:25.620The problem was they never should have cut them. That was the mistake. It was cutting rates.
00:15:29.860Raising them back up is really just an acknowledgment of that mistake.
00:15:34.240But what happens is when the Fed raises rates, it uncovers all of the problems that it created when it reduced rates, because when it slashed interest rates to zero, it inflated a bubble economy and it inflated it with inflation.
00:15:49.840Quantitative easing was inflation. It's just another word to describe inflation.
00:15:54.700It's just that a lot of people don't realize that it is inflation because inflation has a bad connotation to it.
00:16:01.940And so quantitative easing doesn't sound as bad. If the Fed said our policy is to create inflation, the public would have said, wait a minute, I don't want inflation.
00:16:11.500So if they say, well, our policy is quantitative easing, then you don't have as many people critical of the policy.
00:16:17.980But we're now experiencing the consequences of that inflation, rising prices and prices still have a long way to go.
00:16:25.900And that's one of the reasons I think that the recession is going to get a lot worse because more consumer income is going to be diverted to necessities like food, energy, rent, insurance, things like that.
00:16:38.760And interest rates are going to have to keep rising. And that's also going to take a lot of purchasing power out of the economy because people have to service their debt.
00:16:49.620And if you're spending money paying interest on the money you borrowed to buy stuff in the past, you have less money left over to buy stuff in the present and in the future.
00:16:59.780And that's what helps bring about a more severe recession.
00:17:04.660So what does all this do for, let's say, people for their 401ks, the stock market, because that's been all over the place?
00:17:13.160Well, most people's stock portfolios are going to continue to fall.
00:17:17.720Most people who own stocks, unfortunately, own the most overvalued stocks.
00:17:23.660Big tech, for example, those are the stocks that went up the most because interest rates were zero.
00:17:28.840And people thought that inflation would be low forever.
00:17:32.980Well, now that interest rates are not zero and inflation is here and getting worse, those stock valuations are coming down.
00:17:39.780I think they still have a long way to fall.
00:17:41.900So most people will lose money in the stock market.
00:17:44.460I think they'll fare even worse in the bond market.
00:17:47.020Even though yields are higher now on bonds, they're not nearly high enough to offset inflation.
00:17:53.580So people are going to lose a lot in bonds.
00:17:56.300So they have to start thinking outside the box and look towards alternative types of investing.
00:18:02.820You can still invest in stocks, but you can't invest in the indexes that are so dominated by overpriced tech names.
00:18:11.000You have to be more discriminating in the stocks you buy.
00:18:17.260You have to select the stocks based on value and dividend yield and just build your own portfolio rather than just buying these indexes.
00:18:26.040And I think the best values are had abroad.
00:18:29.560I think the highest dividend yields are outside the U.S.
00:18:33.220And I think that also gives you the benefit of a hedge against what I believe is going to be a very weak U.S. dollar.
00:18:40.580The dollar is up on the year, but it's losing those gains rapidly.
00:18:45.300But I think over the next several years, we're going to see a very weak dollar as the markets come to terms with the reality that inflation is not only going to get higher, but it's here to stay.
00:18:55.880It's not going back down to 2 percent and that's going to result in a run on the dollar, I think, and on U.S. dollar denominated assets, especially when the Federal Reserve actually has to go back to quantitative easing, which is creating more inflation because the economy gets so bad that it actually turns into a financial crisis.
00:19:14.740And now the Fed is under a lot of pressure to try to stimulate the economy.
00:19:19.500But the only way you can do that is by creating even more inflation.
00:19:27.780And meanwhile, we're getting reports every day of more layoffs when this is really concerning.
00:19:32.280I mean, right before Christmas, I just the pain of getting of losing your job with these kinds of numbers and this kind of inflation has got to hurt.
00:19:40.060These are just some examples on the subject of investment banks.
00:19:43.540Morgan Stanley reportedly laying off 2 percent of its global staff.
00:20:49.180Well, first of all, just to point to the jobs that are being lost, these are full-time jobs, high-paying jobs with benefits.
00:20:58.840The jobs that we're creating are part-time jobs with low pay and no benefits.
00:21:03.580So it's not, you know, I can even trade off when you look at the jobs we're losing and the jobs that are being created to replace those lost jobs.
00:21:12.820But I think this is just early in the layoffs.
00:21:16.260I think the layoffs are going to be very widespread.
00:21:19.280And, in fact, some companies are going to be laying off 100 percent of their workforce because they're going to be going bankrupt.
00:21:24.360But a lot of companies are going to be laying off a lot of workers to avoid going bankrupt because they have to start cutting their costs.
00:21:32.760And one of the costs that they can cut is labor.
00:21:36.180And so when you cut your labor, you have to eliminate employees.
00:21:40.140And the reason for this is that companies' real sales are going down because their customers are broke, so they can't afford to buy as many products.
00:21:50.160And so the companies selling those products or services don't need as many workers to help provide those goods and services.
00:21:57.360And employers are looking at higher interest rates if they've borrowed money, which a lot of employers have borrowed money to buy capital equipment that they might need.
00:22:07.820Their rent might be going up on their office space and their other raw material costs are rising.
00:22:15.720And so they have to figure out how to get by because businesses need to generate a profit because that's the way the owners of the business make money off the business.
00:22:26.080And if they don't have a profit, they have to figure out how to create one or they're going to go out of business.
00:22:30.960And so one way would be to scale back the size of the business, and that means reducing your headcount.
00:22:38.380And that's going to go on across the economy.
00:22:41.000And, of course, there are a lot of companies that never should have been created in the first place, that only were created as a consequence of monetary policy, of cheap money, and the casino-like environment that the Fed created in the stock market.
00:22:55.900You have a lot of companies that have never made any money, but they have a lot of employees.
00:23:01.540How were they able to pay these employees if they had no money to pay them with?
00:23:05.720Well, they were selling stocks to investors, and they were using that money to pay their workers.
00:23:10.900But if the appetite for shares of money-losing companies is no longer there, a lot of these companies aren't going to be able to stay in business.
00:23:20.420And to the extent that they can stay in business, it will only be if they can dramatically downsize their operations and start generating a profit.
00:23:28.840And that probably means they have to eliminate most of their workforce.
00:23:32.200Like what kinds of companies are you talking about?
00:23:33.700Well, a lot of these social media-type companies or tech companies or, you know, last year I think we had a record in money-losing companies that went public.
00:23:44.420I mean, normally you wouldn't go public until you had been able to prove the viability of your company, that you're a profitable company, and you just want to get more money so that you can scale it up.
00:23:55.020But you had all these companies that never proved anything other than the fact that they can lose money, and they went public.
00:24:01.100And I think a lot of these companies are going to go from IPO to bankruptcy in a relatively short period of time.
00:24:08.080So do you think that these layoffs are, in fact, necessary?
00:24:10.460Because I read something suggesting they don't really need to be doing this.
00:24:13.840They're just using the downturn in the economy as an excuse to turf a lot of dead weight.
00:24:20.840Well, I mean, they don't need excuses.
00:24:23.480If employers are going to look at their workforce and if employees are not contributing to the company, then there's no reason to employ them.
00:24:34.000I mean, you hire somebody because they're going to help increase your profits.
00:24:38.460And so employers are going to, you know, objectively look at the value workers bring to the table and what it costs to employ them.
00:24:47.080And, you know, if it's a losing proposition for the employer, then, you know, the job is going to get eliminated.
00:24:53.720But, you know, when workers are not employed productively, it's good for the economy if those jobs are eliminated.
00:25:02.880Because what happens is that worker is now freed up to do something else.
00:25:06.620Because if I'm working at a job, but I'm not actually adding value to the company, I'm subtracting value, then my labor is actually being wasted.
00:25:15.380I need my labor to be utilized more productively by another business that has a better use for it.
00:25:21.580But the problem is with all the government regulations and taxes, it's a lot harder for labor to go to its highest and best use.
00:25:31.180And so a lot of times people end up trapped in an unemployed situation because of government.
00:25:38.780So I mentioned this is happening right around the holidays, which it's never a great time to get laid off.
00:25:42.960But right before the holidays is especially painful.
00:25:45.820So how's all of this affecting like inflation right now, affecting holiday shopping?
00:25:50.200You know, we heard it was a record Black Friday, Cyber Monday.
00:25:53.140That's supposed to be a great stimulant.
00:25:55.120How does the holidays play into all this?
00:25:57.420Well, first of all, it was only record spending because of the inflation.
00:26:02.940And if you adjust it for inflation, it wasn't a record at all.
00:26:06.840Spending was down because prices were up.
00:26:09.520So if you're paying higher prices, then obviously you're spending more.
00:26:15.740You're just paying more for what you're buying.
00:26:17.940And that's what happened on this Black Friday or Cyber Monday.
00:26:22.260But I think the rest of the holiday season is going to be a dud from the point of view of the retailers.
00:26:28.280I think people are going to spend less.
00:26:31.100And layoffs, I think, are going to pick up quite a bit in January because I think employers are reluctant to lay people off going into the holidays.
00:26:40.440I mean, nobody wants to be Scrooge and do that.
00:26:44.820So I think that a lot of these decisions are postponed to January.
00:26:49.540And I would expect a lot of people are going to be getting pink slips if they still mail those things out in January.
00:27:57.700You've had a doubling in the interest on a mortgage.
00:28:01.880And that dramatically reduces how much somebody could pay for a house.
00:28:09.560And so home prices are going to have to fall sharply because that's the only way anybody can afford to buy them.
00:28:17.060Now, of course, you know, there won't be a lot of homes on the market for a while because people are not going to build them because it's too expensive to build them and people can't afford to buy them.
00:28:27.340And a lot of the people who own homes don't want to leave because if they sell their house, they can't buy another one because the mortgage on the new house could be double the mortgage they have on their current house.
00:28:39.640So that's helping to mitigate the supply a bit.
00:28:43.180But ultimately, I think the prices are going to be determined by demand and what people are able to pay.
00:28:50.200And with higher mortgage rates, they're able to pay a lot less.
00:28:54.220And so prices are going to come down a lot.
00:28:57.000And that means home equity is going to vanish for a lot of people who are in their homes.
00:29:02.340They're not going to have all that equity.
00:29:04.340And that's going to have a big impact psychologically on their saving and their spending, on their ability to use their house as an asset for a loan or something like that.
00:29:16.140But even though home prices are going to be coming down, the cost of home ownership is going to be going way up because even if you buy a house that's gone down 20% or 30%, based on where mortgages are, your monthly payment will still be higher than the payment would have been had you bought the house a year or two ago at a lower price but with a much lower mortgage.
00:29:42.980But the mortgage is not the whole cost of home ownership.
00:30:19.900Your utility bill, the cost to heat the house, the air condition, everything is going up.
00:30:25.440So home ownership is getting a lot more expensive.
00:30:28.340And so fewer and fewer Americans will be able to afford to own a home, let alone buy one.
00:30:33.600So just to put a period on the end of that, after the pandemic, like kind of during the pandemic and then in 2021,
00:30:40.480we saw a rush to the suburbs, to more rural areas, to, you know, kinder, gentler nature riddled towns because people wanted to be outside.
00:30:52.800And they were they've learned the hard way that it's not so great to be in a small apartment that where you can't leave.
00:30:58.020And those those pockets, the homes went like this in value, right?
00:31:02.580You could get so much more for your home if you were lucky enough to own one in an area like that.
00:31:08.940So is that over, you know, that that sort of huge spike in let's say you have a property in Florida or you have a property in the mountains or at the beach or, you know, just something more suburban and country-esque?
00:31:21.560Well, you know, there's still going to be some appeal from that perspective to have a larger home where you can work from home and you have more room for your kids.
00:31:31.680If they're, you know, if they're homeschooled or something like that.
00:31:35.000But I think that a lot of the people who rushed from the cities and maybe they were renters and they bought places out in the country or the suburbs,
00:31:44.040they had no idea how expensive it really is to maintain those properties.
00:31:49.720You know, I own some homes and I can tell you from experience, you know, they're money pits.
00:31:54.900They cost a lot of money because stuff is constantly going wrong with your house.
00:32:00.440And so people probably bit off a lot more than they can chew.
00:32:07.320And if some of these people have buyer's remorse and maybe they want to sell their property,
00:32:11.840it's going to be difficult in an environment where interest rates have doubled.
00:32:16.020And, of course, a lot of other potential homeowners are going to be losing their jobs.
00:32:21.440So unemployed people have a hard time making their mortgage payments.
01:05:13.460Or whatever, wherever you're from, I don't know what your heritage is, Megan.
01:05:18.860But if you dress in the garb of your ancestors and showed up to a cocktail party, I'm sure several people would ask you because you're inviting it.
01:05:29.580It's almost rude not to if you're going to show up as a sort of billboard for your continent and your country.
01:05:39.960Number two, it is not rude or racially insensitive to ask people where they're from.
01:05:47.400Every time I get into an Uber and the guy has a thick accent, I ask him where he's from.
01:05:53.740And then he tells me either he's from Iraq or his parents are or they're from New Guinea or they tell me.
01:06:03.680And then we have a nice dialogue about his heritage or her heritage and why they came here and what they think of this country.
01:06:12.120This notion that, oh, every time you ask somebody what their heritage is or where they're from or what their accent is, that that's some sort of racial insensitivity.
01:06:22.960Racial insensitivity is getting in the back of the Uber and ignoring the person.
01:06:28.680Racial insensitivity is going to the party and ignoring the woman who's dressed that way.
01:06:35.640Not asking questions that she sought you to ask only so she could twist it around and become a victim.
01:07:20.380Nobody ever really got into the nuances of it as you and I are doing here today.
01:07:25.780And, you know, maybe the message was sent.
01:07:28.720Maybe the message was sent when they fired the host of The Bachelor.
01:07:32.680Maybe this message was sent when they fired Sharon Osbourne.
01:07:36.640Maybe the message is you can't even ask questions about zero burgers that are called racist attacks now without putting your job in jeopardy.
01:07:47.620So, once again, like Megan and Harry, it's not them.
01:08:18.300And I'm telling you, like the fact that King Charles has invited this Ngozi, Marlene, to go to the palace to meet with him personally and Queen Camilla is outrageous.
01:08:29.220This woman called him and Camilla domestic violence perpetrators because of what Meghan Markle said in her Oprah interview.
01:08:38.700She tweeted out that Meghan was the victim of domestic abuse at the hands of her in-laws and some other very unflattering tweets about the royal couple.
01:08:49.220And yet, so, first of all, she never should have been invited to go to the palace at all because you're inviting a keg of dynamite in there.
01:08:53.780You know, you are setting yourselves up to fail.
01:08:55.340But now, once she's gone out there, she's embarrassed your lady, your lady-in-waiting, first initially claiming she didn't want to get anybody in trouble.
01:09:03.040But she tweeted out the lady's name, even though she wanted credit for not doing that.
01:09:24.820Not only that, but it just perpetuates this racism fever dream that we've been in in this country and in many Western civilizations for the last 10 years.
01:09:50.340It really hurts a generation of young black people if you really think about what this theme is doing.
01:09:58.520Like she's sitting down with the prince.
01:10:01.860Harry and Meghan are hammering checks.
01:10:03.820But somewhere there's some 14-year-old black kid who has had this lie perpetuated that racism is all-encompassing and it engulfs that person and they can't get along because we live in a racist nation.
01:10:29.520You're hanging out with Netflix executives.
01:10:31.640But what about this super dangerous message that you're spreading and you're trying to claim the mantle of hero while spreading this very insidious, dangerous message to yet another generation of Americans or Englanders?
01:10:50.180She, when Meghan Markle spoke in New York on Tuesday, she was talking about the oppressed, you know, how we have to fight for the oppressed as if she's one of them.
01:10:56.960I mean, as if this woman who was raised by a loving family in California who wound up marrying a prince, becoming a multimillionaire and living in a castle first in England, then in Montecito, is somehow in any way oppressed.
01:12:05.500Apparently, they are the source material for the ride is the 1946 film Song of the South, which supposedly portrays plantation life in a way that is insensitive.
01:12:17.840So a few years ago, they had this argument and the Wokesters lost.
01:12:21.960And the people who defended Splash Mountain said at the time, Splash Mountain has never included depictions of slaves or any racist elements.
01:12:28.640And it is based solely on historical African folktales that families of all ethnicities have been enjoying for nearly a century.
01:12:37.900And they said at the time, it's absurd to pander to a small group of Disney haters that do not understand the story.
01:12:43.860Now, Disney has decided it a different way.
01:12:48.080They're closing it and then they're going to reopen it.
01:12:55.980Well, I don't know if it's going to be a log flume, but it's a new ride entitled Tiana's Bayou Adventure, which will carry on the legacy of the princess and the frog, which features a black heroine named Tiana.
01:13:20.160And as a matter of fact, I have a theory about all this nonsense that we do and engage in.
01:13:27.380And I think not only does it not move the needle or help the cause or do anything to move things along, sort of like when the NFL stencils in end racism in the end zone as if it's going to do anything or stop hate on the helmets of some of the players.
01:13:46.740I think it actually hurts the cause because, A, it puts the message out there that we are a racist nation, as previously discussed, but also it sort of satiates.
01:14:02.240Like, maybe there are some problems and maybe we should get to those problems and maybe we should honestly look at those problems.
01:14:09.520Like, what is hurting the black community?
01:14:48.200So, for instance, the biggest problem facing the black community is the lack of dads in the community.
01:14:55.660So you're going to focus on Meghan Markle and you're going to focus on Princess Whoever in Buckingham Palace and you're going to focus on Splash Mountain and you're never going to get to the real problem.
01:16:05.780We're all about talking about racism, but we don't like school choice, which would help that group quite a bit more than getting rid of a Disney ride.
01:16:16.260So it's not just is it a waste of time?
01:16:27.320You know, I want to follow up on that one second because something happened in California, your state that they think they're fixing racism.
01:16:35.960But before we go there, here's here's an example of the perniciousness of this woke ideology being approved and just rubber stamped into existence, whether it's Splash Mountain's gone.
01:16:45.560And now we have to be honoring a black princess or this American girl.
01:16:56.640She's getting a little old for it now, but we spent a lot of hours there in New York and it's supposed to be a super fun, magical place for girls.
01:17:04.360You can get your little American girl dolls like hair done at the hair salon inside.
01:17:10.400You can get matching outfit between you and your doll.
01:17:14.020You can get a little book about your doll.
01:17:15.980Well, now now, Adam, what you can get is a book called Body Image, a smart girl's guide, which gives advice to girls as young as three on how to change their gender by asking doctors for puberty blockers.
01:17:32.580A passage in the book advises, quoting here from the Daily Mail, if you haven't gone through puberty yet, the doctor might offer medicine to delay your body's changes.
01:17:42.500Then it provides a list of resources for organizations the children can turn to, quote, if you don't have an adult you can trust.
01:17:50.220And by the way, it's billed as a guide that is and is marketed to girls aged between three and 12.
01:17:56.100That is outrageous. Can you believe that?
01:18:00.000I love the idea that you don't have an adult you can trust when you're five.
01:18:04.760That adult is called your mom and your dad.
01:18:10.980I mean, I think and I'm not really a conspiracy theorist, but I think we could safely say from a trend standpoint,
01:18:21.120they used to have to kind of wait until the kids got to college to try to sort of poison them and indoctrinate them with all these nut job theories,
01:18:36.640whether it was race based or gender based or had to do with the environment or whatever.
01:18:42.360This group would have to wait until you sent your kids off to college to go then start poisoning them on all these sort of progressive subjects.
01:18:56.600At some point, they figured out why are we waiting until the kid's 18?
01:19:01.920You know, you don't get all of them at 18.
01:19:04.220At 18, your brain is dried a little bit, and it's kind of hard to convert you into one of their soldiers for whatever cause they're going to need you to support,
01:19:16.320which is going to be a lot of crazy causes in the future.
01:19:19.340Instead of converting them at college, why don't we just get them when they're in the second grade?
01:19:25.500Why don't we start working this stuff to Disneyland?
01:19:29.120Why don't we start working this stuff to the American Girl Store?
01:19:32.600Why don't we start doing drag queen story hour?
01:19:35.720Like, why not get them when they're 10 versus waiting until they're 18?
01:19:41.920And as you sit back and look at what's going on, I think you'd say that's kind of where we're at.
01:19:48.760It's disturbing, like, to start that young.
01:19:51.680We're trying to drive a wedge between the little ones and their parents.
01:19:55.340And then the teachers take over, the school systems.
01:19:58.440All right, a quick word on California.
01:20:00.000Your state, they've got the solution to historic systemic racism, in particular the hangover from slavery.
01:20:08.880And that is, this California panel appointed by what you call your sociopathic governor, Newsom,
01:20:14.780has estimated that your state owes 569 billion dollars in reparations to black residents of California.
01:20:26.860That this task force has been studying the long term effects of slavery and systemic racism on black residents in the state.
01:20:33.340That's their estimate of how much it will take to make descendants of enslaved people whole.
01:20:40.380The nine member panel concluded that black Californians whose ancestors were in the U.S.,
01:20:45.900this is according to the New York Post, in the 19th century are due 223,200 dollars each due to housing discrimination practices utilized from 1933 to 1977.
01:20:59.960Now, it still has to be approved by the California legislature.
01:21:05.220The options in paying out these reparations could include something like direct cash payments or perhaps tuition grants, perhaps housing grants.
01:24:10.520And we, by the way, we tried to hand out checks in California for COVID and three quarters, three quarters of the money went to guys who are incarcerated.
01:24:21.740We're never going to be able to pull this off.
01:24:24.500I can't imagine they're going to pass this, but I don't I mean, it's California.
01:24:28.420But the resentment that will follow between races within within races, I mean, imagine being a black person who's what you know, you got here.
01:24:37.340Your ancestors got here just just past the deadline or just in front of the deadline or you couldn't exactly prove it.
01:24:48.340It's just going to cause that kind of resentment.
01:24:51.220This is and who's going to pay for it?
01:24:54.520People today who had absolutely nothing to do with slavery or any of this treatment are going to be asked to pay people who actually didn't suffer at all.
01:25:03.020Realistically, as a result of that treatment, a bunch of money also causes this weird chasm that basically says all black people were descendants of slaves and all black people were damaged by slavery.
01:25:19.480And then de facto, all white people somehow flourished because of this or were a part of it in some way, shape or form.
01:25:31.660My family is from Italy and they moved to South Philly in 1927.
01:27:37.520But you and I both know these are not devastating effects of the pandemic.
01:27:41.820They are devastating effects of the policies put in place as a result of the pandemic, which we must now admit not only made no sense,
01:27:51.420but were severely harmful in particular to children, including teens, policies like school closures, which have now been ruled incredibly insensitive,
01:28:03.420ineffective and very damaging to mental health by any authority that's taken an honest look at it outside the United States.
01:30:09.920You know, Fauci had his horrible policies, fine.
01:30:14.820But when I was hiking down the horse trail behind my house, why was some neighbor telling me to pull up my mask or, in my case, put on a mask because I wouldn't wear one?
01:30:27.620How come they weren't able to suss these carpetbaggers out?
01:30:31.700How come they weren't able to connect the dots between the Great Barrington Declaration and people who were being pulled off of Twitter and doctors that were being attacked or CNN calling ivermectin horse paste, Sanjay Gupta?
01:31:07.460And when it comes to something like depression and young girls and young men and school closures, of course, they scared the crap out of these people.
01:31:55.920Because you can't have a pandemic if the schools are open.
01:31:59.160And you can't justify closing down small businesses if the schools are open.
01:32:04.320But between systemic racism, climate change that's going to end the world in nine years and COVID, if you were 13, you don't think you're going to see your 30th birthday anyway.
01:32:19.480Society, you know, the oceans are going to rise and carry you away.
01:32:24.300I mean, think about the message that these asinine people are sending to the young people.
01:32:31.300They're saying you live in a systemically racist society.
01:33:06.780Why are you scaring the crap out of the kids and then expecting that they should be strong and their voices should be heard?
01:33:13.880You're confusing them about their sexuality.
01:33:17.020You know, they're, you know, birthing people, men or women, women or men.
01:33:20.780You're scrambling their brains and then you're asking them to carry on.
01:33:26.200Dividing them from their parents, the people who presumably love them more than anyone in the world, taking faith out of the public square entirely, replacing it with their faith, which is wokeism, all of which is very damaging.
01:33:40.400This culture of fear has taken hold amongst this group and too many on the left writ large.
01:33:45.740And that in this whole safe spaces thing, you start in the movie, the greatest movie, safe spaces, if you haven't seen it, has really damaging effects.
01:34:06.580When an actual risk comes along, like a virus, which was potentially deadly for a lot of people, they they don't have the skills to manage that risk.
01:37:03.260But the reality is, if everyone had just done the little that you, I, your son, my son, Tin Horn Flats had done, this wouldn't have happened.
01:37:17.740They shut the beaches down in California.
01:37:20.320They took down the nets to the beach volleyball courts.
01:37:24.200They bulldozed sand through the skate park.
01:37:27.400Everyone should have gone to the beach that day.
01:37:30.620The day they said we're closing beaches is the day everyone should have taken the day off of work and grabbed their swim trunks and headed to the beach.
01:38:02.400Well, this is the perfect note to wrap it up on, given the theme of our discussion, running to victimhood, embracing safe spaces, and the amount of damage that does in one's life and to our country.
01:38:12.320You, I think about within two years of her unfortunate death this week, interviewed Kirstie Alley, who I absolutely loved.
01:38:23.520I grew up watching her on Cheers, and we went through some of her resume the other day, and it was a great, great interview.
01:38:29.180People should definitely Google it because the whole thing is entertaining.
01:38:32.480Great, funny stories from Cheers and her life and, you know, some of the stuff they did on the set that she never could have gotten away with today.
01:38:40.260But the greatest was her choice to not be a victim, despite having had considerable hardship and heartache in her life.
01:38:49.740Here's a clip, and I'll give you the last word.
01:38:53.640You know, my dad and mom were hit by a drunk driver, and my mom was killed, and my dad was almost killed.
01:39:00.540I've never once heard my dad talk about the injustice of all the drunk drivers in all the history of mankind, you know?
01:39:13.140He was able to differentiate and keep it at, that was, that was, the consequence of that decision to drive drunk by that woman cost him his wife.
01:39:24.960You don't have to hate people if they hate you.
01:39:27.060You don't have to be the victim of something if you don't want to be.
01:39:30.540I don't want to be a victim of something.
01:39:32.300I want to be, I want to be triumphant.
01:39:35.360Even if something bad happens to me, I want to turn it into something triumphant because it makes my life and everybody around me happier.
01:40:15.560You know, we need more people like her.
01:40:18.560And, you know, back to the theme, if we had more people like her during COVID, then maybe the kids wouldn't be suffering as much right now.
01:40:29.200Now, she did something that is really rare in Hollywood, which is she spoke her mind, even if it would be detrimental to her career.
01:40:45.340She said, this is right and this is wrong, and I'm not going along with stuff I disagree with, even if it means I may not be gainfully employable within the Hollywood community because they punish you the most.
01:40:59.200If you get off the reservation, as many people like James Woods have figured out.
01:41:05.620So, but she was, but, but she was also really funny and she was free.
01:41:29.660Stop worrying about what other people are thinking or saying.
01:41:33.340It's no accident that she and you and so many others who fight back against this nonsense have what you just mentioned, a healthy sense of humor.
01:41:43.640It helps to fight these wars, to get through life, to not take yourself too seriously, and just to manage one's overall stress and well-being.