The Megyn Kelly Show - Peter Schiff on Biden's Dysfunctional Economy, Inflation Concerns, and the Value of Bitcoin

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00:00:30.660 Welcome to The Megyn Kelly Show.

00:00:32.520 Your home for open, honest, and provocative conversations.

00:00:42.020 Hey everyone, I'm Megyn Kelly.

00:00:43.540 Welcome to The Megyn Kelly Show.

00:00:44.760 We've got a great show for you today

00:00:45.940 with a big focus on the economy.

00:00:48.420 Have you noticed your grocery store bills going up?

00:00:50.740 Are you finding items are taking longer to ship to you

00:00:53.900 than they usually do?

00:00:55.120 If you, like me, are not an expert

00:00:57.660 when it comes to our economy,

00:01:00.780 you're going to be in luck today

00:01:02.820 because you may be feeling confused

00:01:04.540 about what inflation, the supply chain,

00:01:06.300 and even the stock market or jobs report

00:01:07.760 have to do with your everyday life.

00:01:09.480 And we have got it all figured out for you today,

00:01:12.560 or at least our guest does.

00:01:14.060 And he's going to walk us through it.

00:01:15.560 Peter Schiff is chief economist

00:01:17.760 and global strategist at Euro Pacific Capital

00:01:20.180 and host of The Peter Schiff Show.

00:01:22.180 He's here with us today

00:01:23.660 and he's fired up about Biden's economy,

00:01:26.180 the attempts at a COVID recovery, and more,

00:01:29.000 and is used to speaking sense

00:01:31.160 in a field that is overwhelming at times

00:01:34.220 for people like me.

00:01:35.400 Peter, great to have you here.

00:01:36.340 Thank you for being here.

00:01:38.000 Oh, my pleasure, Megyn.

00:01:39.360 Thanks for having me on your program.

00:01:41.180 Okay, so let's assume that you're not on CNBC.

00:01:44.620 Assume you're dealing with somebody

00:01:45.780 who has an eighth grade understanding of the economy.

00:01:48.780 And let's go from there, okay?

00:01:50.800 Don't feel like you're being pejorative

00:01:53.100 by explaining the most simple terms, okay?

00:01:56.540 Like, I understand the Fed pretty much,

00:01:59.880 but that's pretty much all I understand.

00:02:02.460 I understand generally what inflation is

00:02:04.840 in the supply chain,

00:02:05.700 but let's just not assume anything.

00:02:07.980 What do you see as the number one issue

00:02:10.040 facing our economy right now?

00:02:11.700 Because we just got a good jobs report,

00:02:13.900 unemployment's relatively low,

00:02:15.440 and the Biden administration is celebrating this

00:02:17.600 as a big win.

00:02:18.780 Well, I certainly think inflation is a big issue.

00:02:22.320 And, you know, a lot of people on CNBC

00:02:23.960 don't understand what inflation is.

00:02:25.820 A lot of people think they know what inflation is,

00:02:27.960 but they actually don't,

00:02:29.160 because a lot of people confuse the symptom

00:02:32.300 of inflation with inflation itself.

00:02:35.580 So most people think of inflation as prices going up,

00:02:38.620 but that's not inflation.

00:02:40.600 If you think about the word inflate,

00:02:42.740 it actually means to expand.

00:02:45.040 You know, if you inflate a balloon,

00:02:46.420 then it expands.

00:02:47.980 Prices don't expand.

00:02:49.260 They can go up,

00:02:49.940 they can go down,

00:02:50.880 but they don't expand.

00:02:52.100 What is expanding is the money supply.

00:02:54.800 So that's where the word inflation comes from.

00:02:57.320 When you increase the money supply,

00:02:59.780 that's inflation.

00:03:01.100 Now, when you create money,

00:03:02.600 and you have people use that money to buy goods,

00:03:06.540 prices will go up.

00:03:07.880 Or maybe prices were going to go down,

00:03:10.520 but because we printed a lot of money,

00:03:12.760 they didn't go down.

00:03:13.740 But either way, when you inflate the money supply,

00:03:17.600 prices are higher than they otherwise would be.

00:03:20.820 But the reason the massive inflation that we've created

00:03:24.360 over the last couple of years,

00:03:26.020 and certainly since COVID,

00:03:27.940 is so problematic now,

00:03:30.040 is because we were expanding the money supply

00:03:32.800 at the same time people were not working.

00:03:35.600 People were leaving their jobs.

00:03:37.440 They weren't being productive.

00:03:38.860 They weren't producing goods.

00:03:40.120 They weren't producing services.

00:03:42.440 Yet the Federal Reserve flooded the economy

00:03:45.120 with new money.

00:03:46.920 And so even though people didn't work,

00:03:48.600 they were spending more money

00:03:49.880 than they did when they were still employed.

00:03:52.060 And so you have all this money

00:03:53.520 chasing a declining supply of goods and services.

00:03:58.060 And so prices are exploding.

00:03:59.820 And we're experiencing this inflation.

00:04:02.400 And in many respects,

00:04:04.240 inflation amounts to a tax.

00:04:05.900 Because it's the way government funds its spending.

00:04:09.380 When it doesn't collect enough taxes

00:04:11.400 to pay for the spending,

00:04:12.820 it relies on the Fed to print up the difference

00:04:15.560 between what the government collects in taxes

00:04:17.700 and what it spends.

00:04:19.840 And so the government robs us of our purchasing power

00:04:22.700 as it spends new money into circulation.

00:04:25.760 Wait, I didn't understand that last part.

00:04:27.200 I was with you until less ends.

00:04:29.180 What?

00:04:29.620 About inflation being a tax?

00:04:31.180 About how they use the Fed

00:04:32.440 to make up the difference.

00:04:33.360 Well, when the government runs a deficit, right?

00:04:36.680 The government collects taxes

00:04:38.060 and then it spends money.

00:04:40.260 But if it spends more than it collects,

00:04:42.240 it has to bridge that gap.

00:04:44.540 And normally it will sell bonds to the public.

00:04:48.180 People will buy U.S. Treasuries.

00:04:50.240 But nobody really wants to buy U.S. Treasuries

00:04:52.540 when the yields are so low.

00:04:54.400 So the main buyer is the Federal Reserve.

00:04:56.860 But the Federal Reserve can only buy Treasuries

00:04:59.040 if it prints the money to do it.

00:05:00.740 So this increases the money supply.

00:05:03.840 And now the government spends

00:05:05.380 that newly created money into circulation.

00:05:08.640 And the people who get that money,

00:05:10.320 well, they take it to the store

00:05:11.680 and they try to buy stuff.

00:05:13.600 But most of the people

00:05:14.840 who are getting government money

00:05:16.080 aren't producing stuff.

00:05:17.840 They're just getting government checks.

00:05:20.220 And so they're trying to buy things

00:05:21.660 and prices go up.

00:05:23.280 And everybody has to pay higher prices

00:05:25.600 because of all these debts

00:05:27.580 that the Federal Reserve is monetizing.

00:05:29.740 And so that's why inflation is effectively a tax

00:05:33.540 because the government has two ways

00:05:35.620 to pay for its spending.

00:05:37.180 It can take our money through taxation

00:05:38.980 or it can take our purchasing power

00:05:41.160 through inflation.

00:05:41.900 But either way,

00:05:43.440 the cost of government is borne

00:05:45.460 by the average American.

00:05:47.500 That's why when Biden says

00:05:48.900 that his big spending plans

00:05:50.460 aren't going to cost anybody

00:05:51.920 who makes less than $400,000 anything,

00:05:54.600 that's a lie.

00:05:55.760 Because the brunt of the inflation

00:05:58.260 is felt by middle class

00:06:00.560 and working poor Americans.

00:06:02.440 So that's who's paying

00:06:03.540 for all the stimulus.

00:06:05.200 And this infrastructure bill

00:06:06.540 and this Build Back Better bill,

00:06:08.620 they're going to be financed

00:06:09.680 almost exclusively by inflation,

00:06:11.940 which means the middle class

00:06:13.580 is going to pay through the nose

00:06:15.040 with much higher prices.

00:06:17.200 That's exactly right.

00:06:18.120 So I understand

00:06:19.000 because I see it in my grocery bill.

00:06:21.740 I see it in my gas bill,

00:06:23.080 you know,

00:06:23.300 the numbers going up

00:06:24.500 and it wasn't that long ago

00:06:26.580 in my life

00:06:27.100 that that really would have hurt,

00:06:28.400 you know,

00:06:28.560 that I had to watch the gas bill

00:06:29.820 and the grocery bill

00:06:30.500 very carefully.

00:06:31.580 But now that I've got

00:06:32.220 some money in the bank,

00:06:33.300 it doesn't hurt me

00:06:34.360 nearly as much as it hurts

00:06:36.100 the working class,

00:06:37.620 someone like my mom

00:06:38.640 who's on a retiree's,

00:06:40.480 you know, pension

00:06:41.120 and folks out there

00:06:43.040 who really have to watch

00:06:44.060 paycheck to paycheck

00:06:44.900 what the grocery bill is

00:06:46.220 and what the gas bill is.

00:06:47.700 So, yes,

00:06:48.020 I'll get hit by Biden's

00:06:49.460 new tax policies,

00:06:50.480 I'm sure.

00:06:51.800 But your point is

00:06:53.460 you can't heave a sigh of relief

00:06:55.080 when he does all this spending

00:06:56.860 if you're not

00:06:57.720 among the so-called rich

00:06:59.440 because you're going to be

00:07:01.380 paying for it

00:07:02.080 one way or another.

00:07:04.120 Yeah.

00:07:04.420 In fact,

00:07:05.040 a lot of people who are rich

00:07:06.560 end up benefiting

00:07:07.520 from inflation

00:07:08.360 because inflation

00:07:09.340 also pushes up

00:07:10.580 the value of assets

00:07:11.980 that a lot of rich people own.

00:07:13.960 But unfortunately,

00:07:14.960 a lot of middle class Americans

00:07:16.140 don't own those assets.

00:07:17.960 They just get stuck

00:07:19.120 with the bill.

00:07:19.760 They earn wages,

00:07:21.140 but their wages

00:07:22.040 don't rise nearly as much

00:07:23.620 as the cost of living.

00:07:25.200 And so even though

00:07:25.920 they get a bigger paycheck,

00:07:27.660 they're actually earning less

00:07:29.180 because when they go

00:07:30.180 to spend those dollars,

00:07:31.760 they can't buy

00:07:33.000 nearly as much stuff.

00:07:34.600 And that's why

00:07:35.360 inflation is the worst way

00:07:37.360 to pay for government.

00:07:38.640 It's the most regressive

00:07:39.700 form of taxation.

00:07:41.180 It hits hardest

00:07:42.180 those who can least

00:07:43.120 afford to pay.

00:07:44.220 That is the biggest problem

00:07:46.100 because Biden wants

00:07:47.420 to pretend

00:07:48.100 that we're getting

00:07:49.020 all this government

00:07:49.780 for free.

00:07:51.000 Nothing is free,

00:07:52.040 especially government.

00:07:53.620 And whenever the government

00:07:54.460 claims you're getting

00:07:55.340 something for nothing,

00:07:56.340 it's a lie.

00:07:58.160 They're just trying

00:07:58.780 to win your vote,

00:07:59.820 but then you don't realize

00:08:01.040 that they're buying your vote

00:08:02.640 with your own money.

00:08:04.440 So explain this to me

00:08:05.880 because I didn't

00:08:07.160 totally understand it,

00:08:08.080 but I saw that the Fed,

00:08:09.840 speaking of those treasury bonds,

00:08:11.580 they announced

00:08:12.340 that later this month

00:08:13.460 they're going to buy

00:08:14.240 fewer of them.

00:08:15.100 It was like they were

00:08:16.120 they were going to

00:08:17.040 they're going to buy

00:08:17.500 15 billion dollars

00:08:19.140 per month fewer.

00:08:20.520 And the article I read

00:08:21.600 said, well,

00:08:22.120 it could have been worse.

00:08:22.840 They could have said

00:08:23.300 they're going to buy

00:08:23.840 30 billion dollars

00:08:25.340 per month fewer.

00:08:26.980 This seems to be them

00:08:28.060 trying to address

00:08:29.100 some of these

00:08:30.040 inflationary concerns.

00:08:31.760 Right.

00:08:32.360 I don't totally understand.

00:08:33.840 Like, should we be happy

00:08:34.860 that they're buying

00:08:35.600 fewer treasury bonds?

00:08:37.760 Well, they shouldn't

00:08:38.600 be buying any treasury bonds.

00:08:40.540 That is part of the problem.

00:08:42.180 They never should have

00:08:42.960 bought any bonds.

00:08:43.800 That was quantitative easing.

00:08:45.740 But that is the mechanism

00:08:46.820 for creating inflation.

00:08:48.300 They print money

00:08:49.220 and then they buy

00:08:50.080 government bonds.

00:08:51.200 And they are talking

00:08:52.500 about tapering

00:08:53.440 their bond purchase

00:08:55.420 program,

00:08:56.240 where they're saying

00:08:57.160 they're going to buy

00:08:57.740 fewer bonds

00:08:58.860 in the months ahead

00:09:00.340 than they've been buying

00:09:01.900 in the months prior.

00:09:03.640 Although that is

00:09:04.560 their intention

00:09:05.260 and that's what

00:09:06.240 they're pretending,

00:09:07.460 I have a hard time

00:09:08.700 believing

00:09:09.140 they're going to be able

00:09:10.300 to live up to that

00:09:11.260 commitment.

00:09:11.700 Because as the U.S.

00:09:13.720 government

00:09:14.080 increases spending

00:09:15.660 and we know

00:09:16.500 that we're going

00:09:17.200 to get this

00:09:18.020 infrastructure bill,

00:09:19.500 we're going to get

00:09:20.380 this Build Back Better bill,

00:09:22.320 they're going to get

00:09:23.180 passed,

00:09:24.700 there's not going

00:09:25.360 to be nearly enough

00:09:26.700 tax increases

00:09:27.980 to cover the cost.

00:09:30.520 So the Federal Reserve

00:09:31.860 is going to end up

00:09:32.960 buying even more bonds.

00:09:34.280 Even if it's saying

00:09:35.280 it's going to buy less,

00:09:36.660 it's going to end up

00:09:37.720 buying even more

00:09:38.700 because that's the only

00:09:39.760 way to pay

00:09:40.740 for all the spending.

00:09:42.580 And by the way,

00:09:43.720 the plans are going

00:09:45.160 to actually cost

00:09:46.140 far more

00:09:46.820 than what the government

00:09:47.740 claims.

00:09:48.460 The government

00:09:48.800 always underestimates.

00:09:50.480 Let me just stop you there.

00:09:51.460 I definitely want to talk

00:09:52.180 about the Build Back Better

00:09:53.080 bill, whatever.

00:09:54.040 I mean, this is the new

00:09:54.880 propaganda name for it.

00:09:56.500 It's basically just

00:09:57.300 a wish list of

00:09:58.140 Democrats' social causes.

00:10:00.020 But the infrastructure bill

00:10:01.280 has already passed,

00:10:01.920 so that one's going.

00:10:03.100 And it certainly looks like

00:10:04.240 the BBB

00:10:05.120 is also going.

00:10:06.360 So what you're saying is,

00:10:08.260 let's say they pass BBB

00:10:09.680 and we already have

00:10:10.600 the $1.2 trillion

00:10:11.420 infrastructure bill

00:10:12.840 that's passed,

00:10:13.520 that all those wish list

00:10:15.300 items in there,

00:10:16.420 they can't actually tax

00:10:18.080 Jeff Bezos enough

00:10:20.120 to pay for all of it.

00:10:21.900 They can't.

00:10:22.760 So they're going to run

00:10:23.580 out of regular Americans

00:10:24.860 to tax

00:10:25.920 to pay for this stuff.

00:10:27.800 So they're going to

00:10:28.860 look at the Fed

00:10:29.560 and they're going to say,

00:10:30.380 you have to print

00:10:31.200 more money

00:10:31.860 and buy more of those

00:10:33.000 American treasury bonds

00:10:34.340 because we need it.

00:10:35.380 And so that cutback

00:10:36.400 that they just announced

00:10:37.180 isn't really going to be

00:10:37.880 worth the paper.

00:10:38.580 It's printed on,

00:10:39.160 the announcement,

00:10:39.900 because we're going

00:10:41.440 to be short dough

00:10:42.380 to finance

00:10:43.740 all these wish list items

00:10:45.600 that are in these two bills.

00:10:47.600 And the more we print dough,

00:10:49.540 the more we drive up

00:10:50.700 inflationary pricing

00:10:51.860 and the more the average

00:10:52.980 consumer gets pinched.

00:10:55.400 Yes.

00:10:56.020 I mean,

00:10:56.300 people have to remember

00:10:57.420 that the cost of government

00:10:59.000 is what government spends.

00:11:00.520 So every dollar

00:11:01.820 of government spending

00:11:03.000 needs to be paid for.

00:11:04.600 And so if it's not

00:11:06.160 paid for through taxation,

00:11:07.520 it's paid for

00:11:08.800 through some other means

00:11:09.940 and that is inflation.

00:11:11.180 And just because

00:11:12.400 the Federal Reserve

00:11:13.100 prints money

00:11:13.900 and gives it

00:11:14.820 to the government

00:11:15.340 to spend,

00:11:16.240 it doesn't mean

00:11:17.160 that we're getting

00:11:17.700 all that spending

00:11:18.380 for free.

00:11:19.160 We're going to pay

00:11:20.060 much higher prices

00:11:21.280 for consumer goods

00:11:22.640 and that means

00:11:23.300 Americans are going to

00:11:24.260 have to reduce

00:11:24.960 their spending

00:11:25.700 because everything

00:11:26.740 is going to cost

00:11:27.500 a lot more

00:11:28.200 and since we don't

00:11:29.280 have an unlimited

00:11:29.960 amount of money,

00:11:31.220 people are going

00:11:31.780 to buy a lot less

00:11:32.800 which is exactly

00:11:33.740 what would happen

00:11:34.460 if their taxes went up.

00:11:36.080 If the government

00:11:36.480 raised your taxes,

00:11:37.640 you have less money

00:11:38.720 so you can buy

00:11:39.640 less stuff.

00:11:40.740 But if they don't

00:11:41.360 raise your taxes,

00:11:42.160 if they print money

00:11:43.100 instead,

00:11:43.920 then the price

00:11:44.520 of everything goes up

00:11:45.520 and you still end up

00:11:46.620 buying less stuff

00:11:47.520 because the stuff

00:11:48.360 you need

00:11:48.880 is much more expensive.

00:11:50.960 I see it.

00:11:51.780 I mean,

00:11:51.860 I use my mom

00:11:52.460 as a benchmark.

00:11:53.260 Obviously,

00:11:53.500 I help my mom out

00:11:54.440 but she's prideful

00:11:56.720 and she doesn't

00:11:58.160 really want my money.

00:12:00.040 And so she's trying

00:12:01.600 to make ends meet

00:12:02.480 on her pension.

00:12:04.100 She was a productive

00:12:04.820 citizen all of her life.

00:12:06.340 She's 80 now

00:12:06.980 but she's living

00:12:07.820 on her pension

00:12:08.500 and she also

00:12:09.980 gets Social Security.

00:12:11.600 And so she's

00:12:12.340 on this fixed budget

00:12:13.340 and those numbers

00:12:14.360 don't go up.

00:12:15.860 So she really is

00:12:16.620 the person who gets

00:12:17.580 pinched by the increase

00:12:19.060 in prices and gas

00:12:20.280 and so on

00:12:20.840 because none of her

00:12:22.160 income goes up

00:12:23.320 at this point.

00:12:24.420 Only her expenses do

00:12:25.840 and she's living

00:12:26.780 this real time

00:12:27.440 like most Americans.

00:12:28.240 People who are

00:12:29.500 on a fixed income

00:12:30.560 are hit particularly

00:12:31.600 hard by inflation

00:12:33.480 because if you're younger

00:12:34.580 and you still have a job

00:12:35.920 you can at least

00:12:36.900 recover some of the

00:12:38.060 inflation with higher wages.

00:12:40.120 You know,

00:12:40.260 you go to your boss

00:12:41.180 and you say,

00:12:41.640 look,

00:12:41.740 I need a raise

00:12:42.420 or I'm quitting,

00:12:43.520 right,

00:12:43.760 because the prices

00:12:44.420 are going up

00:12:45.180 and so you can get a raise.

00:12:46.840 It may not be enough

00:12:47.860 to completely offset

00:12:49.000 the increase

00:12:50.100 but at least you get

00:12:50.980 some of it back.

00:12:52.140 But if you're retired

00:12:53.060 and you're living

00:12:53.700 on a fixed income

00:12:54.780 that income's not going up

00:12:56.740 but your cost of living is

00:12:58.440 and so it's particularly

00:13:00.620 you know,

00:13:01.780 troublesome

00:13:02.180 for older retired people

00:13:04.040 like your mom

00:13:04.960 and I think a lot

00:13:06.480 of Americans

00:13:07.020 who are preparing

00:13:08.340 to retire now

00:13:09.460 are going to have

00:13:10.020 to rethink their plans

00:13:11.160 because there's no way

00:13:12.640 the money that they've saved

00:13:14.380 and the income streams

00:13:15.580 that they anticipate receiving

00:13:17.000 are going to be sufficient

00:13:18.480 given the much higher

00:13:20.080 cost of living

00:13:20.960 that we're going

00:13:21.740 to be experiencing.

00:13:22.740 And this is not just

00:13:23.620 going to be,

00:13:24.180 you know,

00:13:24.540 a few percent a year.

00:13:25.500 We're talking

00:13:26.340 double-digit increases

00:13:27.940 in the cost of living

00:13:29.140 for many,

00:13:30.080 many years in a row.

00:13:31.400 So a substantial increase

00:13:33.360 maybe a 50 or 100% increase

00:13:35.480 maybe even a triple

00:13:36.800 in the cost of living.

00:13:38.480 So if your income stream

00:13:39.920 doesn't keep up

00:13:41.080 then you're getting poorer.

00:13:43.320 How can they even consider

00:13:45.240 passing the BBB?

00:13:47.340 It was 3.5 billion

00:13:48.960 or trillion.

00:13:49.680 Actually,

00:13:50.000 I lose track.

00:13:51.060 Trillion in Democrats

00:13:52.940 social items.

00:13:54.420 spending.

00:13:56.080 Now it's reportedly down

00:13:57.580 up to about half that

00:13:58.660 thanks to Joe Manchin

00:13:59.740 and Kirsten Sinema.

00:14:01.260 How can they even consider

00:14:02.600 passing something that large

00:14:04.040 given what you're saying?

00:14:06.160 Well,

00:14:06.380 because they don't

00:14:06.980 consider anything.

00:14:07.980 They're just completely

00:14:08.760 reckless and irresponsible.

00:14:10.580 But also,

00:14:11.320 they don't understand

00:14:12.460 the moral hazard

00:14:13.980 that will be created

00:14:15.720 by the programs

00:14:17.480 that they're creating

00:14:18.340 as part of this

00:14:19.180 BBB bill

00:14:20.260 because government

00:14:21.540 always looks

00:14:22.480 at a particular

00:14:24.020 situation

00:14:25.480 and they assume,

00:14:26.680 well,

00:14:26.840 if we cover the cost,

00:14:28.400 here's how much

00:14:29.380 it's going to be.

00:14:30.380 But what they don't

00:14:31.520 understand is

00:14:32.280 how much higher

00:14:33.140 the costs become

00:14:34.160 once the government

00:14:35.260 subsidizes the activity

00:14:36.780 because now demand

00:14:38.140 for whatever

00:14:38.780 they're subsidizing

00:14:39.760 goes way up

00:14:40.920 and so does the cost

00:14:42.380 of what they're subsidizing.

00:14:43.800 So if the government

00:14:44.920 says it's going

00:14:46.060 to cost $1.75 trillion,

00:14:48.660 it's probably going

00:14:49.320 to cost $5 trillion.

00:14:52.220 Okay,

00:14:52.820 that's a lovely note

00:14:53.600 on which to pause you.

00:14:54.800 We're going to squeeze

00:14:55.660 in a quick commercial break

00:14:57.020 and then come back

00:14:58.280 and you're going to want

00:14:59.220 to hear more from Peter

00:15:00.140 because this guy

00:15:01.060 knows of what he speaks.

00:15:02.620 I'm going to play for you

00:15:03.340 some of the predictions

00:15:04.020 he's had about our economy

00:15:06.040 in the past spot on

00:15:07.540 and then I'll ask him

00:15:08.340 what he's predicting

00:15:09.020 is going to happen next

00:15:10.780 in our current economy.

00:15:13.800 Peter,

00:15:18.960 so the Fed is saying

00:15:20.500 we expect inflation

00:15:21.820 is going to go down.

00:15:22.820 It's not going to,

00:15:23.420 you know,

00:15:23.840 it's not.

00:15:24.760 And that what I read

00:15:25.760 is people are like,

00:15:26.620 well,

00:15:26.720 what else is it going to say?

00:15:27.860 Because it would send

00:15:28.780 the markets into a tumble

00:15:29.960 if it said it's going to stay up

00:15:31.380 and we have no idea

00:15:32.080 when it's coming down,

00:15:32.920 which is what some

00:15:33.960 even Democrat lawmakers

00:15:35.080 have said

00:15:35.600 in their more honest moments.

00:15:36.660 They don't know

00:15:37.180 when it's coming down.

00:15:38.560 We don't know.

00:15:39.840 And, you know,

00:15:40.500 it's certainly not going

00:15:41.180 to be in time for Christmas.

00:15:42.000 Even the best projections

00:15:43.520 are in 2022.

00:15:45.260 That's what Jamie Dimon

00:15:46.140 was saying,

00:15:46.760 the CEO of JPMorgan Chase.

00:15:48.400 So what do you think

00:15:49.520 is going to happen

00:15:50.120 with these inflation numbers?

00:15:52.880 Assuming the Democrats

00:15:54.120 do get their

00:15:54.800 some form of their

00:15:55.920 BBB plan

00:15:57.640 pushed through

00:15:58.240 in addition to the

00:15:58.880 1.2 trillion infrastructure.

00:16:00.040 Well, first of all,

00:16:01.820 the more spending programs

00:16:03.480 the Democrats succeed

00:16:05.220 in pushing through Congress,

00:16:07.440 the worse the inflation

00:16:08.540 problem is going to get.

00:16:10.160 But even if they don't

00:16:11.460 increase spending anymore,

00:16:12.780 it's already going to be

00:16:14.100 very bad.

00:16:15.380 And, you know,

00:16:15.600 the Federal Reserve,

00:16:16.740 they look at their mission

00:16:18.500 as to always put

00:16:19.740 the best possible spin

00:16:21.460 on any economic data.

00:16:24.280 And whoever the Fed chairman

00:16:25.920 is regardless

00:16:27.340 of who appoints him,

00:16:30.180 he always wants

00:16:31.300 to further

00:16:32.340 the interest

00:16:33.180 of the administration

00:16:35.040 that is currently

00:16:36.320 in power.

00:16:37.680 And so if you go back

00:16:38.600 to the early days

00:16:40.260 of the financial crisis

00:16:41.340 or before the financial crisis

00:16:42.780 started,

00:16:43.540 when you saw

00:16:44.420 the big blow up

00:16:45.500 in subprime,

00:16:46.700 which was obviously

00:16:47.800 a huge problem,

00:16:51.140 you know,

00:16:51.400 Bernanke dismissed it.

00:16:52.660 He said,

00:16:53.120 don't worry about it.

00:16:54.700 It's contained.

00:16:56.300 The overall economy is fine.

00:16:58.320 The housing market is fine.

00:16:59.720 There's nothing to worry about.

00:17:01.540 Well, clearly,

00:17:02.200 there was a lot

00:17:02.960 to worry about.

00:17:03.700 I mean,

00:17:03.820 I was out on television

00:17:05.720 back then in 2006,

00:17:08.060 you know,

00:17:08.820 warning about

00:17:09.780 the housing bubble

00:17:11.420 and the impending

00:17:12.400 financial crisis

00:17:13.320 because I understood

00:17:14.540 the implications

00:17:15.920 of what we were seeing

00:17:17.100 in the subprime market

00:17:18.340 because I had been warning

00:17:19.980 about the problems

00:17:20.880 in housing

00:17:21.840 and in particular

00:17:22.660 subprime for years.

00:17:24.620 But I think the Fed

00:17:25.780 had an indication

00:17:27.100 of how bad it might be.

00:17:29.860 They just didn't want

00:17:30.600 to let the cat out of the bag.

00:17:31.920 They just hoped

00:17:32.600 that they could

00:17:33.240 say enough positive things

00:17:35.060 that maybe they could

00:17:36.320 save the economy

00:17:37.220 with their rhetoric.

00:17:38.720 And I think they're doing

00:17:39.600 the same thing now

00:17:40.760 with inflation.

00:17:42.540 They're simply hoping

00:17:44.260 that if they pretend

00:17:45.300 it's transitory,

00:17:46.400 it'll just go away

00:17:47.340 on its own.

00:17:48.760 But the one thing

00:17:50.100 they can't do

00:17:50.940 is actually fight

00:17:51.960 the inflation,

00:17:52.700 which is why

00:17:53.160 they're not doing it

00:17:54.200 because the only way

00:17:55.300 to fight inflation

00:17:56.200 would be to tighten

00:17:57.860 monetary policy.

00:17:59.380 So they would have

00:18:00.260 to not only stop

00:18:01.320 buying government bonds,

00:18:03.040 they would have to start

00:18:04.000 selling government bonds

00:18:05.340 into the market,

00:18:06.560 draining liquidity,

00:18:07.760 shrinking the money supply,

00:18:09.120 and they would have

00:18:10.000 to be aggressively

00:18:10.740 raising interest rates,

00:18:12.180 not keeping them at zero,

00:18:14.060 but moving them up.

00:18:15.260 The Fed can't do

00:18:16.560 any of that

00:18:17.260 without collapsing

00:18:18.200 the economy.

00:18:19.520 So instead,

00:18:20.260 they're pretending

00:18:20.960 inflation isn't a problem.

00:18:23.660 But the only thing

00:18:24.660 worse than fighting inflation

00:18:26.360 would be admitting

00:18:27.400 that they can't

00:18:28.320 because the minute

00:18:29.100 they let that cat

00:18:30.280 out of the bag,

00:18:31.160 it's all over

00:18:32.020 because the dollar

00:18:33.040 is going to implode

00:18:34.100 and then we'll have

00:18:35.140 a dollar crisis

00:18:36.280 and a sovereign debt crisis

00:18:37.620 and consumer prices

00:18:39.100 will be moving up

00:18:40.040 even faster.

00:18:41.080 So all they can do

00:18:42.280 really is put

00:18:43.620 a smiley face on this,

00:18:45.660 pretend that it's transitory

00:18:47.160 and that it will go away

00:18:48.300 and just try to kick

00:18:49.880 the can down the road

00:18:50.900 for as long as they can.

00:18:53.020 I mean,

00:18:53.220 how does it work?

00:18:54.240 Is there any situation

00:18:55.520 in which Jerome Powell

00:18:56.780 says to the Biden administration,

00:18:59.180 does that BBB bill

00:19:02.020 really make sense right now

00:19:03.560 given what we're dealing

00:19:04.720 with over here?

00:19:06.600 No, I mean,

00:19:07.420 they're never going to talk

00:19:08.520 about the reality

00:19:09.600 of paying for government programs.

00:19:11.640 And you know,

00:19:11.880 there are a lot of people

00:19:12.940 in government

00:19:15.520 that believe in something

00:19:17.840 called modern monetary theory,

00:19:19.940 right?

00:19:20.360 MMT.

00:19:21.140 And they just think

00:19:22.240 government is free

00:19:23.220 if you print money

00:19:24.000 to pay for it.

00:19:25.040 They don't even see

00:19:25.700 the connection between

00:19:27.060 I don't call that

00:19:27.660 modern monetary theory.

00:19:29.140 I call that YOLO.

00:19:31.300 Yeah, that's the money.

00:19:32.660 That's their monetary policy.

00:19:34.320 You only live once.

00:19:35.500 Go for it.

00:19:37.120 Yeah, I mean,

00:19:38.220 there's nothing modern about it

00:19:40.680 because it's been tried

00:19:42.200 many times in the past

00:19:43.600 and it's always failed.

00:19:44.640 You know,

00:19:45.160 they had it in Zimbabwe.

00:19:47.360 They had it in Argentina.

00:19:49.060 You know,

00:19:49.200 they had it in

00:19:49.740 Weimar Republic, Germany.

00:19:51.660 The result there

00:19:53.060 is hyperinflation.

00:19:54.640 And that is

00:19:55.580 a distinct possibility

00:19:57.160 in the United States.

00:19:58.320 If we continue

00:19:59.100 in this direction,

00:20:00.620 then that's where

00:20:01.360 we're going to end up.

00:20:02.260 But the only way

00:20:03.300 to avoid hyperinflation

00:20:04.920 is going to be

00:20:05.900 to swallow

00:20:06.460 a very bitter pill

00:20:07.920 that's going to produce

00:20:09.700 an economic crisis

00:20:11.160 much worse

00:20:12.080 than the one we had

00:20:12.720 in 2008.

00:20:13.900 And then nobody

00:20:14.800 gets any bailouts.

00:20:16.000 So a lot of businesses

00:20:17.360 are going to fail.

00:20:18.620 A lot of investors

00:20:19.560 are going to lose money.

00:20:21.260 It's going to be

00:20:22.100 a real mess

00:20:23.220 if we do the right thing.

00:20:24.940 But if we do

00:20:25.700 the wrong thing,

00:20:26.600 of course,

00:20:26.980 it's going to be

00:20:27.500 an even bigger mess.

00:20:29.240 All right.

00:20:29.380 And just in case

00:20:30.040 you doubt Peter

00:20:31.020 and his ability

00:20:32.100 to predict the future,

00:20:33.560 he referenced it there

00:20:34.940 and we've got it on tape.

00:20:36.380 This is Peter

00:20:36.920 back in 2006.

00:20:38.560 OK, 2006.

00:20:39.420 Remember the financial collapse

00:20:40.520 thanks to the housing market

00:20:41.860 and that whole Fannie Mae

00:20:42.860 that whole implosion

00:20:43.780 came in 2008.

00:20:45.300 Listen to Peter

00:20:46.160 being scoffed at,

00:20:47.720 by the way,

00:20:48.180 in 2006.

00:20:49.880 Prices are completely

00:20:50.840 unsustainable.

00:20:51.840 They were bid up

00:20:52.460 to these artificial heights

00:20:53.740 by a combination

00:20:54.580 of temporarily low

00:20:56.500 adjustable rate

00:20:57.160 mortgage payments

00:20:57.960 by a complete,

00:20:59.280 you know,

00:20:59.560 absence of any

00:21:00.620 lending standards

00:21:01.500 and by speculative buying.

00:21:03.380 And what's going to happen

00:21:04.120 in 2007

00:21:05.000 is a lot of these

00:21:06.420 artificially low

00:21:07.460 arm payments

00:21:08.320 are going to be

00:21:08.940 reset upward.

00:21:10.120 You're going to start

00:21:10.740 to see both the government

00:21:12.360 and the lenders

00:21:13.080 reimposing lending standards

00:21:14.960 and tightening up

00:21:15.640 on credit.

00:21:16.440 And you're going to see

00:21:17.000 a lot of the speculative

00:21:17.840 buyers turn into sellers.

00:21:19.480 And these sky-high

00:21:20.440 real estate prices

00:21:21.300 are going to come

00:21:21.740 crashing back down to earth.

00:21:23.340 First of all,

00:21:24.000 I have no idea

00:21:25.100 what Peter Schiff

00:21:25.980 is talking about.

00:21:27.120 Most of the profits

00:21:28.120 that people have

00:21:28.780 in real estate

00:21:29.340 are going to vanish

00:21:30.040 just like the profits

00:21:31.060 in the dot-coms

00:21:32.640 in 1999, 2000.

00:21:34.340 It's a fantasy.

00:21:35.280 People can't sell

00:21:36.100 their house.

00:21:37.200 Wow.

00:21:37.940 Wow.

00:21:38.480 I don't even know

00:21:38.940 who that is.

00:21:39.560 I was at Fox News

00:21:40.280 at the time.

00:21:40.720 I don't recognize

00:21:41.400 that anchor.

00:21:42.800 Mike Norman.

00:21:43.880 He didn't keep laughing

00:21:44.920 because, boy,

00:21:45.960 oh boy,

00:21:46.300 were you right

00:21:46.780 about that.

00:21:47.840 So with that

00:21:48.880 understanding,

00:21:50.100 I mean,

00:21:50.320 what specifically

00:21:51.240 do you think

00:21:52.360 is going to happen now?

00:21:53.500 So you're saying

00:21:53.880 the feds could

00:21:54.800 control this

00:21:55.360 by stopping

00:21:55.940 printing the money

00:21:57.760 and buying the bonds.

00:21:58.700 They're tapering it

00:21:59.600 slightly,

00:22:00.340 but you're saying

00:22:00.940 it's going to have

00:22:01.280 to go back up.

00:22:01.960 It's not a real taper.

00:22:03.300 And we are probably

00:22:04.380 going to see the passage

00:22:05.460 of this BBB.

00:22:06.880 We just don't know

00:22:07.640 what the huge number

00:22:08.660 is going to be,

00:22:09.160 but it's going to be

00:22:09.700 well over 1.5 trillion.

00:22:11.680 And that would be

00:22:12.360 a win for the country.

00:22:13.700 I mean,

00:22:13.800 it was 3.5 trillion.

00:22:16.060 So what specifically

00:22:17.700 do they do

00:22:18.960 if the feds

00:22:19.440 are not going to stop buying

00:22:20.300 and they're not going

00:22:20.760 to raise interest rates?

00:22:22.300 Well,

00:22:22.540 as I said,

00:22:23.080 they're going to keep

00:22:23.800 on printing money

00:22:24.820 until the dollar collapses

00:22:27.340 because they have built

00:22:28.800 this phony economy

00:22:30.100 and it certainly

00:22:31.680 predates Biden.

00:22:32.760 It's been going on

00:22:33.520 for a long time.

00:22:34.920 It really started

00:22:35.820 early in the

00:22:37.540 Greenspan era

00:22:38.760 back in

00:22:39.540 the late 80s,

00:22:40.580 early 90s

00:22:41.320 when we really started

00:22:42.240 embarking on this

00:22:43.540 path.

00:22:44.700 But we've printed

00:22:46.020 all this money

00:22:46.760 and we've taken

00:22:47.700 on all this debt

00:22:48.620 and we now have

00:22:49.760 this gigantic

00:22:50.580 bubble economy

00:22:51.660 that is based

00:22:52.860 on going

00:22:53.460 increasingly deeper

00:22:54.660 into debt,

00:22:56.080 borrowing money

00:22:56.720 that we can never

00:22:57.460 possibly repay.

00:22:59.180 And the only way

00:22:59.820 we're able to afford

00:23:01.120 to pay the interest

00:23:02.240 on the money

00:23:02.780 we've already borrowed

00:23:03.800 is because the feds

00:23:05.060 got rates at zero.

00:23:06.740 Meanwhile,

00:23:07.500 we've completely

00:23:08.300 hollowed out

00:23:09.220 our industrial base.

00:23:11.120 I mean,

00:23:11.320 Donald Trump

00:23:12.140 at least pointed this out

00:23:13.720 when he ran

00:23:14.640 for presidency

00:23:15.440 back in 2016.

00:23:17.080 He talked about

00:23:18.040 our huge trade deficits

00:23:19.260 and that he was going

00:23:20.460 to do something

00:23:21.040 to turn it around.

00:23:22.080 Unfortunately,

00:23:22.840 he didn't do anything

00:23:23.700 to turn it around

00:23:24.440 and the trade deficits

00:23:25.320 got bigger

00:23:26.100 under Trump's watch.

00:23:27.780 But now under Biden,

00:23:29.900 they've exploded.

00:23:31.420 I mean,

00:23:31.640 they're by far

00:23:32.500 all-time record highs.

00:23:34.240 So our dysfunctional economy

00:23:37.040 is being propped up

00:23:38.920 by imports.

00:23:40.440 All these products

00:23:41.300 that we no longer produce

00:23:42.900 are being supplied to us

00:23:44.740 from stronger economies

00:23:46.420 abroad

00:23:47.120 that can produce

00:23:48.420 the stuff

00:23:48.840 that we can't,

00:23:50.000 but we're only able

00:23:50.940 to pay for it

00:23:51.920 so long as they're willing

00:23:53.140 to accept our paper dollars.

00:23:55.240 But if we keep printing them

00:23:56.460 and they keep losing value,

00:23:58.080 the world's not going

00:23:58.980 to want our paper anymore

00:24:00.300 and the value

00:24:01.620 is going to collapse.

00:24:02.980 And that means

00:24:03.500 the prices

00:24:04.040 of all the goods

00:24:04.880 that we're importing

00:24:05.660 are going to go

00:24:06.560 through the roof.

00:24:07.320 And if you think

00:24:07.840 we've got an inflation

00:24:08.660 problem now,

00:24:10.020 wait till you see

00:24:10.580 what happens

00:24:11.200 after the dollar crashes.

00:24:13.160 So then what happens?

00:24:14.420 Well, prices go way up

00:24:17.140 and so do interest rates

00:24:18.720 because nobody

00:24:19.940 will lend us money

00:24:21.040 with inflation skyrocketing.

00:24:23.860 And so a whole economy

00:24:25.180 that's based on

00:24:26.640 debt finance consumption

00:24:28.460 where we print up money

00:24:30.220 and borrow money

00:24:31.420 to buy the products

00:24:32.400 that are made

00:24:32.880 in other countries,

00:24:33.940 this whole model implodes.

00:24:36.340 And then what's left behind

00:24:37.680 is a dysfunctional economy

00:24:39.700 that can't really,

00:24:41.240 you know, isn't viable

00:24:42.900 because where are

00:24:44.300 all the factories?

00:24:45.420 Where's all the productivity?

00:24:46.620 We can't operate

00:24:47.900 a service sector economy

00:24:50.120 without the imports

00:24:51.580 coming in

00:24:52.320 to bridge the gap

00:24:53.480 between what we consume

00:24:54.660 and what we produce.

00:24:55.820 So what's going to have

00:24:56.680 to happen is

00:24:57.360 consumption is going

00:24:58.400 to have to implode

00:24:59.500 because we're not going

00:25:00.680 to have the goods

00:25:01.220 to consume.

00:25:02.000 But when 70 plus percent

00:25:03.800 of your GDP

00:25:04.480 is consumption

00:25:05.840 and everybody

00:25:06.680 stops consuming

00:25:07.660 because there's

00:25:08.160 nothing to buy,

00:25:09.400 then what happens

00:25:10.200 to the economy?

00:25:11.100 And what happens

00:25:12.000 is the government's ability

00:25:13.140 to fund its spending.

00:25:14.940 Tax revenues implode

00:25:16.480 and then what?

00:25:17.640 Is the government

00:25:18.120 going to print,

00:25:18.780 is the Fed going to print

00:25:19.660 even more money?

00:25:20.780 Is it going to pour

00:25:21.560 all that gasoline

00:25:22.560 on a raging inflation fire?

00:25:24.840 Because if they do that,

00:25:26.500 then we have hyperinflation.

00:25:28.400 The alternative

00:25:28.980 is the government defaults

00:25:30.360 on all those commitments.

00:25:31.600 It doesn't make

00:25:32.220 the Social Security payments.

00:25:33.560 It doesn't even make

00:25:34.440 the payments

00:25:34.980 on the national debt.

00:25:36.340 It has to tell holders

00:25:37.380 of U.S. Treasuries

00:25:38.420 they're not going to get paid

00:25:39.920 because the government's

00:25:41.000 run out of money.

00:25:42.260 Okay, this is very

00:25:42.940 doomsday-ish

00:25:43.680 and it's very scary.

00:25:45.500 And I keep,

00:25:47.200 I want to keep asking,

00:25:48.360 and then what?

00:25:49.000 I mean, and then we just,

00:25:50.000 we sit with our soup

00:25:51.460 alone with no money.

00:25:54.220 Like what?

00:25:54.860 I mean, honestly,

00:25:55.520 then we elect a Republican

00:25:56.760 and he comes in and says,

00:25:58.560 well, I mean,

00:25:59.080 the last Republican

00:26:00.060 spent like the drunken sailor too.

00:26:01.780 So, but who,

00:26:02.560 what do we do?

00:26:03.140 Like, then we elect Peter Schiff

00:26:04.840 and we say,

00:26:06.260 Peter, help us.

00:26:07.340 We have two choices, right?

00:26:09.400 We can do the right thing

00:26:10.480 or we can, you know,

00:26:11.700 keep doing the wrong thing.

00:26:13.080 The right thing would be

00:26:14.220 to collapse government,

00:26:16.480 to cut government spending

00:26:17.820 dramatically,

00:26:18.900 to deregulate the economy

00:26:20.960 to the greatest degree possible

00:26:22.940 so that we can unleash

00:26:24.620 the free market

00:26:25.520 so that we can dig ourselves

00:26:27.300 out of this gigantic hole

00:26:28.980 that we're in.

00:26:30.320 That's the only way

00:26:31.280 we're going to get out of it

00:26:32.220 is with a real free market,

00:26:34.380 capitalist economy.

00:26:35.400 People have to go back to saving.

00:26:37.500 We have to go back to sound money

00:26:38.880 and higher interest rates.

00:26:40.640 We have to produce

00:26:41.540 more than we consume.

00:26:43.080 That's how you get out of debt

00:26:44.400 and rebuild the economy.

00:26:46.580 We can do it.

00:26:47.620 It's possible.

00:26:48.440 I mean, we did it before.

00:26:49.720 I mean, America wasn't always

00:26:51.020 a rich, powerful nation.

00:26:52.760 We became rich and powerful

00:26:54.340 because we were the freest people

00:26:55.760 in the world.

00:26:56.520 Well, we're no longer

00:26:57.400 the freest people.

00:26:58.700 We have a big government

00:26:59.960 that taxes and regulates

00:27:02.320 to a great degree

00:27:03.800 and we need to change that.

00:27:05.960 We need to restore

00:27:06.660 the freedom that we lost

00:27:08.120 so we can rebuild

00:27:09.060 the prosperity

00:27:09.880 that government destroyed.

00:27:11.920 But I'm concerned

00:27:13.080 given the mood

00:27:15.280 of the electorate

00:27:16.180 and the popularity

00:27:17.640 of socialism

00:27:18.660 and the contempt

00:27:20.520 that a lot of people

00:27:21.460 unfortunately feel

00:27:22.560 for capitalism

00:27:23.440 because capitalism

00:27:24.720 has been given

00:27:25.300 a really bad name

00:27:26.520 by the government

00:27:27.820 because they preach capitalism

00:27:29.520 but they don't practice it.

00:27:30.620 they practice socialism

00:27:31.840 or corporatism

00:27:33.340 or fascism

00:27:34.280 or crony capitalism

00:27:35.420 whatever you want to call it

00:27:37.120 but whatever we've had

00:27:38.480 has not been capitalism

00:27:39.860 and that's been the problem.

00:27:41.860 But if the public

00:27:42.820 buys into this myth

00:27:44.380 that what we need

00:27:45.480 is government

00:27:46.080 to do everything

00:27:46.920 we need to further

00:27:48.040 empower government

00:27:49.380 to micromanage

00:27:50.760 the economy

00:27:51.560 and allocate resources

00:27:53.620 and to make everything fairer

00:27:56.060 then we're in a lot

00:27:57.340 of trouble

00:27:57.740 in this country.

00:27:58.320 We're going to see

00:27:59.360 not only a precipitous

00:28:00.740 decline in our standard

00:28:01.840 of living

00:28:02.260 but it's going to be permanent

00:28:03.660 and then of course

00:28:05.020 a lot of people

00:28:06.020 are going to be

00:28:06.460 leaving the country.

00:28:07.340 That's going to be

00:28:07.760 the unfortunate part.

00:28:09.120 All four of my grandparents

00:28:10.580 came here

00:28:11.380 in search of freedom.

00:28:13.060 It would really be a shame

00:28:14.300 if my children left

00:28:15.560 in search of freedom.

00:28:17.420 Okay.

00:28:18.200 Let me take you back

00:28:19.120 to something I understand.

00:28:20.520 When I was in law school

00:28:21.860 I was poor.

00:28:23.200 I was putting myself

00:28:23.940 through law school.

00:28:24.880 I had no money

00:28:25.640 and you weren't even allowed

00:28:26.820 to work

00:28:27.260 to supplement

00:28:27.920 your income there.

00:28:29.480 So yeah,

00:28:30.260 I had no income

00:28:31.020 and I had a ton of debt

00:28:33.320 and it was just racking up

00:28:34.880 and racking up

00:28:35.460 and racking up

00:28:35.900 so I had the credit card

00:28:36.940 which was racking up

00:28:37.860 and racking up

00:28:38.420 and then of course

00:28:38.880 with the interest rate

00:28:39.600 it was going through

00:28:40.840 the roof

00:28:41.720 and my brother

00:28:43.620 who's always been

00:28:44.460 financially responsible

00:28:45.600 unlike yours truly

00:28:47.460 I wasn't

00:28:48.300 said,

00:28:49.380 Meg,

00:28:49.680 you have to stop spending.

00:28:51.580 You have to stop

00:28:52.500 running up that credit card

00:28:53.700 and I said,

00:28:54.700 Pete,

00:28:55.140 I have no choice.

00:28:56.840 I need it.

00:28:57.860 You know,

00:28:58.060 I'm using it to pay

00:28:59.140 for my groceries

00:28:59.900 and things like that.

00:29:00.900 I don't have another

00:29:01.960 source of income

00:29:02.540 and he said,

00:29:04.300 well,

00:29:05.120 then you're going

00:29:06.280 to have to find a way

00:29:07.260 of taking in some money

00:29:09.100 of earning.

00:29:09.920 You're going to have

00:29:10.520 to find some ways

00:29:11.120 of earning

00:29:11.680 so you can pay it off.

00:29:12.660 Well,

00:29:12.940 I couldn't

00:29:13.500 but then I graduated

00:29:14.760 from law school

00:29:15.320 and I got a good job

00:29:16.480 right out of law school

00:29:17.680 and it was wonderful

00:29:18.880 because even though

00:29:20.080 I had never found a way

00:29:20.960 to stop running up

00:29:21.680 that credit card,

00:29:22.640 my income went up.

00:29:24.460 It became existent

00:29:25.280 and slowly but surely

00:29:26.940 I was able to pay off the card.

00:29:28.340 What I hear the government

00:29:29.220 saying is

00:29:30.060 the Build Back Better bill

00:29:31.880 is going to result

00:29:33.100 in so many jobs.

00:29:34.520 Women are going

00:29:35.040 to get more jobs.

00:29:36.460 Minorities are going

00:29:37.120 to get more jobs

00:29:38.040 that they're going

00:29:40.460 to be like

00:29:40.900 the newly minted

00:29:42.460 Megyn Kelly lawyer,

00:29:44.360 Esquire,

00:29:45.160 and they're going

00:29:45.880 to be running around

00:29:46.700 producing

00:29:48.060 and earning

00:29:49.700 and all of that earning

00:29:51.500 which then the government

00:29:52.120 will tax and so on

00:29:53.180 is going to solve

00:29:54.200 this problem.

00:29:55.260 Why is that not true?

00:29:57.340 Well,

00:29:57.580 first of all,

00:29:58.260 politicians have been

00:29:59.200 saying that for decades.

00:30:00.820 I mean,

00:30:01.000 it's not new.

00:30:02.780 Politicians used to say

00:30:03.940 that,

00:30:04.280 you know,

00:30:04.880 today's deficit

00:30:06.100 is a down payment

00:30:07.140 on tomorrow's surplus.

00:30:08.460 If we make the investments

00:30:09.500 now,

00:30:10.200 we'll grow the economy

00:30:11.460 faster

00:30:12.020 and that's how

00:30:12.940 we're going to reduce

00:30:13.600 the debt.

00:30:14.340 Well,

00:30:14.540 we're $30 trillion

00:30:15.760 in debt

00:30:16.620 or $29 trillion

00:30:17.760 in debt.

00:30:18.540 So none of these

00:30:19.700 government promises

00:30:20.700 of increased spending

00:30:22.060 have ever resulted

00:30:23.640 in less debt.

00:30:24.940 It always increases

00:30:26.400 the debt,

00:30:27.000 which makes sense.

00:30:28.040 The government

00:30:28.500 is going to borrow

00:30:29.220 more money

00:30:29.840 and spend it.

00:30:30.820 By definition,

00:30:32.160 that's going to grow

00:30:32.960 the debt.

00:30:33.660 But to say that

00:30:34.680 making government

00:30:35.520 bigger

00:30:35.980 is going to somehow

00:30:37.160 lead to a more efficient,

00:30:38.480 more productive economy

00:30:39.580 is sheer nonsense.

00:30:41.120 It's actually the reverse

00:30:42.220 that is true.

00:30:43.160 The smaller you make

00:30:44.380 government,

00:30:45.020 the more productive

00:30:45.880 the economy.

00:30:46.480 If the build back

00:30:47.780 better bill

00:30:48.500 ends up redirecting

00:30:50.160 resources away

00:30:51.400 from the private sector

00:30:52.500 to government,

00:30:53.420 which is what it does

00:30:54.580 because resources

00:30:55.680 aren't created

00:30:56.340 out of thin air.

00:30:57.500 Any resources

00:30:58.300 that the government

00:30:59.000 uses have to be

00:31:00.640 come at the expense

00:31:01.720 of resources

00:31:02.540 that the private sector

00:31:03.740 no longer has access to.

00:31:05.800 So to the extent

00:31:06.700 that the government

00:31:07.320 becomes bigger

00:31:08.300 and more involved

00:31:09.180 in the economy,

00:31:10.280 the economy becomes

00:31:11.200 less efficient

00:31:12.060 and less productive.

00:31:13.380 And so the deficits

00:31:14.760 will get even larger

00:31:16.060 than just what we get

00:31:17.840 from spending the money

00:31:19.060 because it will reduce

00:31:20.460 the economic output

00:31:21.600 of the country

00:31:22.440 and it will add

00:31:23.540 to the inflationary

00:31:24.500 pressures

00:31:24.920 that already exist

00:31:26.340 in the economy.

00:31:28.100 My gosh,

00:31:29.100 this is so depressing.

00:31:30.240 This is like the me

00:31:31.620 graduating from law school

00:31:33.080 with instead

00:31:33.960 at the time

00:31:34.500 I had over $100,000

00:31:35.720 in debt

00:31:36.220 and absolutely no money

00:31:36.980 to my name.

00:31:38.100 And but my very first job

00:31:39.700 was $85,000 a year

00:31:40.940 because I went for

00:31:41.480 a white shoe law firm

00:31:42.600 which trust me

00:31:43.280 back in 1995

00:31:44.100 even today is good

00:31:45.280 but back in 1995

00:31:46.180 I was like I am rich.

00:31:48.000 I've gone from zero

00:31:48.920 to rich.

00:31:50.060 And this is like

00:31:50.780 that me doesn't have

00:31:52.720 $100,000 in debt.

00:31:54.380 That me's got

00:31:54.960 $100,000,000 in debt

00:31:56.640 and my $85,000 a year

00:31:58.940 is a teaspoon

00:31:59.700 in the ocean

00:32:00.380 and I'm not going to be able

00:32:01.400 to tackle it.

00:32:02.200 And there's another complication

00:32:04.420 in that situation

00:32:05.080 where I've got this third party

00:32:06.400 working against me.

00:32:08.400 In our nation's situation

00:32:10.560 it's government.

00:32:11.240 You know

00:32:11.640 sort of paddling

00:32:12.680 the other way.

00:32:14.480 And a lot of people

00:32:15.360 a lot of these

00:32:16.220 you know

00:32:16.720 Keynesian economists

00:32:18.080 or MMTers

00:32:19.380 see they think

00:32:20.280 that government debt

00:32:21.520 is irrelevant

00:32:22.740 because as long as

00:32:23.960 the government

00:32:24.280 can print money

00:32:25.140 they don't see

00:32:26.040 the debt as a problem

00:32:27.020 because they say

00:32:27.920 well the government

00:32:28.380 will never run out of money

00:32:29.520 because it can print

00:32:30.420 as much as it wants.

00:32:31.820 Well the problem is

00:32:32.680 if it prints too much

00:32:33.880 the money runs out

00:32:35.120 of purchasing power.

00:32:36.340 So what good is it

00:32:37.360 if you can print

00:32:38.000 a bunch of money

00:32:38.680 that doesn't have any value?

00:32:40.180 If you can't buy anything

00:32:41.840 with the money

00:32:42.380 then the money

00:32:42.940 it doesn't matter

00:32:44.220 that you can print

00:32:44.940 an unlimited amount of it.

00:32:46.300 And that is the risk

00:32:47.200 that we have.

00:32:48.200 All governments

00:32:48.940 that take on too much debt

00:32:50.440 end up destroying

00:32:51.720 their currency.

00:32:52.780 The only reason

00:32:53.680 that we haven't destroyed

00:32:54.720 ours yet

00:32:55.340 is because we've been

00:32:56.620 the reserve currency.

00:32:57.920 So we've been able

00:32:58.860 to abuse that privilege.

00:33:00.680 We've been able

00:33:01.220 to go deeper

00:33:01.960 into debt

00:33:02.600 without destroying

00:33:03.460 our currency

00:33:04.120 than any other country

00:33:05.640 in the history

00:33:06.260 of the world.

00:33:06.820 But that doesn't mean

00:33:08.220 that there's an unlimited

00:33:09.160 amount of debt.

00:33:10.160 We are going to find

00:33:11.160 that breaking point

00:33:12.040 and I think that point

00:33:13.300 is coming relatively soon.

00:33:16.000 So Glenn Beck

00:33:16.420 was on the program

00:33:17.060 about a month ago

00:33:17.860 and he was making

00:33:20.240 some dire predictions

00:33:21.100 not totally dissimilar

00:33:22.280 to this

00:33:22.680 and was saying

00:33:23.900 at that point

00:33:24.840 once we've

00:33:25.480 basically eliminated

00:33:26.960 the value

00:33:27.540 of our own currency

00:33:28.380 he predicted

00:33:29.740 the government's

00:33:30.320 going to do

00:33:30.600 something radical

00:33:31.280 like your currency

00:33:32.780 truly is

00:33:33.840 no longer relevant.

00:33:35.220 Whatever you have

00:33:36.640 in the bank

00:33:37.040 it's no longer relevant

00:33:37.900 and we're going

00:33:38.200 to start reallotting

00:33:39.080 our new currency

00:33:40.220 based on identity

00:33:41.800 or whatever

00:33:42.580 the flavor

00:33:43.300 of the day is

00:33:44.320 and all your savings

00:33:45.760 if you've been

00:33:46.340 somebody who worked hard

00:33:47.180 and put savings

00:33:47.840 away in the bank

00:33:48.520 versus somebody

00:33:49.400 who hasn't worked

00:33:50.000 at all

00:33:50.300 and wants more

00:33:50.760 of a socialistic system

00:33:51.740 where you take

00:33:52.280 from the workers

00:33:52.940 and give to the non

00:33:53.800 we'll wind up

00:33:55.580 winning the day

00:33:56.220 because the value

00:33:58.460 of our savings

00:33:59.060 will have effectively

00:33:59.920 been eliminated.

00:34:01.360 What do you think

00:34:01.860 of that?

00:34:03.340 Well, yeah

00:34:04.200 I think the government

00:34:04.920 is going to wipe out

00:34:05.800 savings

00:34:06.300 and of course

00:34:06.900 it's going to wipe out

00:34:07.720 its own debt

00:34:08.440 because a lot of our savings

00:34:10.420 are in government debt

00:34:11.800 and that's going to get

00:34:12.980 wiped out with inflation

00:34:14.340 but it's not going to be

00:34:15.620 a panacea.

00:34:16.520 I mean, first of all

00:34:17.380 yeah, people are no longer

00:34:19.260 going to have debt, right?

00:34:20.160 You took out a big mortgage

00:34:21.240 to buy a house

00:34:22.260 and now you don't really

00:34:23.140 owe any money anymore

00:34:24.120 because, you know,

00:34:25.040 the mortgage is wiped out

00:34:26.900 through inflation

00:34:27.540 but our whole standard of living

00:34:29.780 is going to implode

00:34:30.900 because the world

00:34:32.340 is not going to simply

00:34:33.480 re-accept

00:34:34.240 whatever our new money is

00:34:36.440 as the reserve currency, right?

00:34:38.720 That will be over, right?

00:34:40.280 We're not going to have

00:34:41.220 that ace up our sleeves anymore

00:34:43.440 so how is the U.S. economy

00:34:45.920 going to function

00:34:47.520 without all those goods

00:34:49.660 coming in

00:34:50.480 from the rest of the world?

00:34:52.120 I mean, you think

00:34:52.620 there's a supply shortage now

00:34:54.360 you know, we have record

00:34:55.860 trade deficits right now

00:34:57.180 so we have more foreign goods

00:34:58.820 than ever

00:34:59.320 flowing into the U.S.

00:35:00.880 and it's still not enough

00:35:02.060 because we don't produce

00:35:03.160 anything ourselves

00:35:04.000 imagine what happens

00:35:05.480 when none of those foreign goods

00:35:07.080 are coming in anymore

00:35:08.040 I mean, imagine going into a Walmart

00:35:09.900 and staring at nothing

00:35:11.960 but empty shelves

00:35:12.840 I mean, go in there

00:35:13.820 and try to find the stuff

00:35:15.560 that's made in America

00:35:16.520 you won't be able to do it

00:35:18.000 it'd be like a scavenger hunt

00:35:19.540 so when we no longer

00:35:21.600 have the ability

00:35:22.480 to buy all the stuff

00:35:24.560 the world makes

00:35:25.420 with the money that we print

00:35:26.860 that's the end of this economy

00:35:28.680 the whole thing implodes

00:35:29.920 and then where are we going to go?

00:35:32.200 I mean, as I said

00:35:32.660 the only way out

00:35:33.740 is to radically shrink government

00:35:36.160 government needs to get smaller

00:35:38.280 like the taxes

00:35:39.640 the regulations

00:35:40.360 need to go away

00:35:41.360 but even then

00:35:42.880 it's not going to happen overnight

00:35:44.480 it's going to take a long time

00:35:46.240 to rebuild

00:35:47.040 what the government took

00:35:48.380 decades to destroy

00:35:49.760 I mean, well, it's so crazy

00:35:51.500 that you listen to Joe Biden

00:35:52.600 he's like

00:35:52.920 well, we're going to expand the IRS

00:35:54.680 and we're going to manage

00:35:55.840 to find the taxes

00:35:57.320 and those, you know

00:35:58.120 one percenters

00:35:58.840 who aren't paying their fair share

00:35:59.860 not even the one percenter

00:36:00.760 the billionaires

00:36:01.380 this is not the solution

00:36:03.140 this is not going to get it done

00:36:05.980 and you mentioned the supply chain

00:36:08.080 I mean, what do you make of that, Peter?

00:36:09.680 because that

00:36:10.440 you know, we've seen more and more

00:36:12.640 that that doesn't seem

00:36:14.020 like it's anywhere near being solved

00:36:16.160 in fact, Chris Wallace

00:36:17.740 had Pete Buttigieg

00:36:19.500 on Fox News Sunday

00:36:20.940 this past week

00:36:21.840 and he was making some good points

00:36:23.900 listen to the numbers he threw out

00:36:25.100 let's talk about the backups

00:36:27.360 in the supply chain

00:36:28.640 since the president announced

00:36:30.380 two weeks ago

00:36:31.340 that the Port of Los Angeles

00:36:32.640 was going to 24-7 operations

00:36:34.900 the number of container ships

00:36:37.000 waiting offshore

00:36:37.880 has not gone down

00:36:39.520 it's gone up

00:36:40.240 from 56 to 77

00:36:41.900 one day last week

00:36:43.760 a terminal pier in Long Beach

00:36:45.760 announced 2,000 appointments

00:36:47.820 for truckers

00:36:48.660 went unused

00:36:50.340 Goldman Sachs says

00:36:51.880 that port congestion

00:36:53.200 is not going to ease

00:36:54.820 until the second half

00:36:56.300 of next year

00:36:57.640 yeah, there are definitely

00:37:01.280 going to continue to be issues

00:37:02.960 especially as long

00:37:04.160 as the pandemic continues

00:37:05.380 right?

00:37:06.700 okay

00:37:07.100 yes, there are

00:37:09.400 but everything's going

00:37:11.080 in the wrong direction

00:37:11.880 I mean, that's

00:37:12.380 those numbers he was ticking off

00:37:13.620 are post

00:37:14.340 the Biden administration's

00:37:15.940 emergency intervention

00:37:17.140 and trying to get these ports

00:37:18.360 to work 24-7

00:37:19.600 and trying to increase

00:37:20.440 the number of truckers

00:37:21.220 and so on

00:37:21.660 that's post all that

00:37:22.940 yeah, and first of all

00:37:24.960 this is all symptomatic

00:37:26.720 of America's dysfunctional economy

00:37:29.000 because all the traffic

00:37:30.500 is one way

00:37:31.280 we have all these containers

00:37:33.000 coming

00:37:33.560 but they're leaving empty

00:37:35.140 in fact, some of them

00:37:36.040 don't even leave

00:37:36.940 because it's too expensive

00:37:38.420 to bring them back to China

00:37:39.680 and so they're piling up

00:37:41.300 you know, over here

00:37:42.600 but we're importing

00:37:44.100 more than ever before

00:37:45.460 the problem

00:37:46.500 isn't a lack of supply

00:37:47.920 it's an abundance of demand

00:37:50.420 that's been created

00:37:51.400 by the government

00:37:52.220 just printing up money

00:37:53.800 and giving it to everybody

00:37:55.260 and the problem is

00:37:56.800 we're not producing

00:37:58.080 the stuff domestically

00:37:59.800 we're relying more and more

00:38:01.580 on what we're importing

00:38:03.340 but the cost of bringing

00:38:04.940 in those imported goods

00:38:06.300 keeps on going up

00:38:07.840 and that's not a function

00:38:09.460 of the supply shortage

00:38:10.600 it's again on the demand side

00:38:12.880 from the Federal Reserve

00:38:14.780 creating money

00:38:15.520 and of course

00:38:16.380 decades and decades

00:38:18.380 of excessive regulation

00:38:20.080 and taxes

00:38:20.780 that has destroyed

00:38:22.320 our domestic

00:38:23.560 productive capability

00:38:24.780 and our own supply chains

00:38:26.620 that has made us

00:38:27.700 so reliant

00:38:28.880 on the rest of the world

00:38:30.480 and now the rest of the world

00:38:32.080 can't actually fill that gap

00:38:34.320 because it too

00:38:35.500 is dealing with

00:38:36.200 its own COVID related issues

00:38:37.860 and even though

00:38:38.760 it's supplying us

00:38:39.700 with more merchandise

00:38:40.540 than ever before

00:38:41.560 that's still not enough

00:38:43.160 because that's how

00:38:44.060 screwed up

00:38:44.820 our economy is

00:38:46.040 and also

00:38:46.660 I want to circle back

00:38:47.600 to your comments

00:38:48.300 on the IRS

00:38:49.080 you know the last thing

00:38:50.120 America needs

00:38:50.940 is more IRS agents

00:38:52.520 harassing American businessmen

00:38:54.120 they have a big enough

00:38:55.240 problem as it is

00:38:56.420 dealing with existing regulations

00:38:58.460 now dealing with COVID

00:38:59.740 to have more IRS agents

00:39:01.940 you know

00:39:02.380 that are going to be

00:39:03.080 breathing down their necks

00:39:04.300 is going to make it

00:39:05.300 even harder

00:39:05.860 for these guys

00:39:06.760 to stay in business

00:39:07.720 and also

00:39:08.600 the IRS agents

00:39:10.480 are not going after

00:39:11.660 the billionaires

00:39:12.440 the billionaires

00:39:13.420 are not evading their taxes

00:39:15.300 they don't have to

00:39:16.240 there are plenty

00:39:17.040 of legal ways

00:39:17.860 for billionaires

00:39:18.720 to avoid their taxes

00:39:20.220 the government

00:39:21.220 is going after

00:39:22.120 middle class Americans

00:39:23.460 it's the small business owner

00:39:25.360 who is evading taxes

00:39:27.160 it is the guy

00:39:28.680 working in a gig economy

00:39:30.040 who's not reporting

00:39:31.400 all of his cash income

00:39:32.760 he's evading taxes

00:39:34.200 and a lot of these

00:39:35.220 small business owners

00:39:36.260 and independent contractors

00:39:37.560 they would pay their taxes

00:39:39.360 if they could

00:39:40.000 but you know what

00:39:40.700 it's either

00:39:41.380 pay the rent

00:39:42.220 feed the family

00:39:43.220 or pay taxes

00:39:44.220 so a lot of people

00:39:45.180 are not paying taxes

00:39:46.400 because it's the only way

00:39:48.000 they can survive

00:39:48.700 and that is who

00:39:49.700 the IRS agents

00:39:50.560 are going after

00:39:51.240 they're not going after

00:39:52.360 the billionaires

00:39:53.060 they're going after

00:39:54.080 average Americans

00:39:55.220 who are by necessity

00:39:57.200 probably under reporting

00:39:58.840 their income

00:39:59.520 or inflating their deductions

00:40:01.140 the billionaires

00:40:02.040 don't have to do that

00:40:03.000 the tax code

00:40:03.860 is already rigged

00:40:04.760 to benefit the super rich

00:40:06.120 they don't have to cheat

00:40:07.260 it's so true

00:40:08.460 that is 100% true

00:40:09.820 I mean I know

00:40:10.440 a very rich man

00:40:11.420 in New York

00:40:12.400 just by way of example

00:40:13.400 in the real estate industry

00:40:14.960 who said

00:40:15.960 I pride myself

00:40:16.580 on never paying

00:40:17.260 one dollar in taxes

00:40:18.060 he said

00:40:18.720 my father would roll over

00:40:19.780 in his grave

00:40:20.220 if he knew

00:40:20.640 I paid one dollar in taxes

00:40:22.020 they already have a system

00:40:23.480 that's set up

00:40:24.060 to help them avoid

00:40:24.960 and it's all legal

00:40:25.880 we saw that with Trump

00:40:27.100 and his tax returns

00:40:27.900 when they got leaked

00:40:28.500 it was outrageous

00:40:29.900 to a lot of folks

00:40:30.620 but it was totally lawful

00:40:31.800 and it's people

00:40:32.740 who can't afford

00:40:33.480 these high priced accountants

00:40:34.920 to sort of work

00:40:35.660 the system

00:40:36.280 who are going to get pinched

00:40:38.160 but can I ask you

00:40:39.140 a question

00:40:39.480 the biggest problem Megan

00:40:40.440 if your income

00:40:41.940 comes from wages

00:40:43.000 or salaries

00:40:43.920 you're screwed

00:40:44.900 right

00:40:45.480 and that's where

00:40:46.340 the middle class

00:40:47.100 gets their money

00:40:48.000 they work for a living

00:40:49.300 and they get paid

00:40:50.520 and they don't have

00:40:52.220 all these tax write-offs

00:40:53.260 it's when you're already rich

00:40:54.840 and your income

00:40:55.960 comes from investment

00:40:57.180 whether it's real estate

00:40:59.180 or other types

00:41:00.160 of capital gains

00:41:01.120 and you have the ability

00:41:02.520 to shelter income

00:41:03.860 and depreciate assets

00:41:05.440 and all sorts of ways

00:41:07.000 to eliminate

00:41:07.640 your taxable income

00:41:08.960 even as you're getting richer

00:41:10.400 right

00:41:10.880 there's ways around

00:41:12.220 all these laws

00:41:13.140 if you have the right

00:41:14.320 kind of income

00:41:15.080 but if you're just

00:41:15.900 an average guy

00:41:16.940 you know working for a living

00:41:18.440 you know you're stuck

00:41:19.840 paying confiscatory rates

00:41:21.420 of tax

00:41:21.920 especially when you look

00:41:23.300 at your payroll tax

00:41:24.460 your unemployment tax

00:41:25.620 and the self-employed people

00:41:27.160 they really feel it

00:41:28.120 because they pay

00:41:28.960 the entire 15%

00:41:30.420 right

00:41:30.780 they don't have an employer

00:41:31.700 to share it with

00:41:32.540 and then they pay

00:41:33.440 the income tax

00:41:34.220 the federal income tax

00:41:35.300 the state income tax

00:41:36.780 you know they may be giving

00:41:37.920 a third of their income

00:41:39.300 in taxes

00:41:40.400 and they can't survive

00:41:42.160 on what's left over

00:41:43.280 especially now

00:41:44.600 with prices rising so much

00:41:46.220 mm-hmm

00:41:47.040 okay so we're gonna

00:41:48.480 pick it up with Peter

00:41:49.300 in one minute

00:41:50.040 on the unemployment rate

00:41:51.520 right because the

00:41:52.060 Biden administration

00:41:52.640 was dancing over

00:41:53.400 this jobs report

00:41:54.300 saying you know

00:41:55.720 it was better than expected

00:41:56.700 so should they be dancing

00:41:58.380 should you

00:41:59.080 we're gonna pick it up

00:42:00.300 with Peter there

00:42:00.780 in just one minute

00:42:01.840 but right after this break

00:42:03.880 did you know

00:42:04.860 that you cannot say

00:42:06.020 the W word anymore

00:42:07.600 we have a new

00:42:08.720 you can't say that

00:42:09.760 coming up

00:42:10.460 and remember folks

00:42:11.680 you can find

00:42:12.140 the Megan Kelly show

00:42:12.900 live on Sirius XM

00:42:14.240 Triumph channel

00:42:14.960 111 every weekday

00:42:16.220 at noon east

00:42:17.660 as well as the full video show

00:42:19.780 and clips

00:42:20.400 when you subscribe

00:42:21.240 to our YouTube channel

00:42:22.560 just go to

00:42:23.000 youtube.com

00:42:24.220 slash Megan Kelly

00:42:25.600 and it would be great

00:42:26.860 if you would subscribe

00:42:27.380 over there

00:42:27.940 and I meander through

00:42:28.940 the comments

00:42:29.420 from time to time

00:42:30.160 it's always fun

00:42:30.740 to see what you guys

00:42:31.420 are thinking

00:42:31.900 by the way

00:42:33.040 if you prefer

00:42:33.480 an audio podcast

00:42:34.800 and you want to

00:42:35.280 share it with folks

00:42:36.080 just go ahead

00:42:36.520 and subscribe

00:42:36.980 and download

00:42:37.520 on Apple, Spotify,

00:42:38.620 Pandora, Stitcher

00:42:39.540 or wherever you get

00:42:40.680 your podcasts

00:42:41.380 and there you can

00:42:42.120 find our full archives

00:42:43.060 with more than

00:42:43.640 195 shows

00:42:46.120 which I think

00:42:46.680 you'll enjoy

00:42:47.540 it's time for another

00:42:54.560 edition of a feature

00:42:55.460 on our show

00:42:56.280 called

00:42:56.680 you can't say that

00:42:57.820 or do that

00:42:58.620 or think that

00:42:59.440 oh wait

00:43:00.240 this is America

00:43:01.280 and today

00:43:02.500 we're going to

00:43:03.020 talk about

00:43:03.600 the W word

00:43:04.800 you know the word

00:43:06.120 wait am I allowed

00:43:07.200 to say it

00:43:07.680 okay cover your ears

00:43:09.160 if you're offended

00:43:09.800 by strong language

00:43:10.820 ready

00:43:11.200 woke

00:43:12.700 yes you see

00:43:14.980 the left

00:43:15.580 has set its sights

00:43:16.760 on a new target

00:43:17.680 in the word

00:43:18.740 policing arena

00:43:19.940 it's not that

00:43:21.080 woke

00:43:21.660 is under fire

00:43:22.660 for being a set

00:43:23.500 of beliefs

00:43:24.100 that are worthy

00:43:24.660 of attacking

00:43:25.240 no

00:43:25.700 now the word

00:43:27.060 itself

00:43:27.560 is apparently

00:43:28.200 problematic

00:43:29.040 remember

00:43:29.940 Emily Jasinski

00:43:30.900 was telling us

00:43:31.560 about this

00:43:32.040 this really

00:43:33.260 started

00:43:33.820 as most things

00:43:34.900 do on Twitter

00:43:35.840 most bad things

00:43:36.620 that is

00:43:37.000 after Virginia's

00:43:38.280 results last Tuesday

00:43:39.220 Democrat James Carville

00:43:40.380 went off

00:43:41.220 on the progressive

00:43:42.380 left

00:43:42.900 for contributing

00:43:44.080 to the massive

00:43:44.860 losses in the state

00:43:46.240 you'd think

00:43:46.600 they'd listen to him

00:43:47.380 he knows a thing

00:43:48.100 or two about

00:43:48.560 how to win

00:43:49.040 and he pointed

00:43:50.360 to the problem

00:43:51.040 of wokeness

00:43:52.280 it was the basis

00:43:53.440 for a question

00:43:54.120 CNN

00:43:54.700 asked Democratic

00:43:56.320 Senator Mark

00:43:57.060 Warner over the

00:43:57.760 weekend

00:43:58.060 watch Carville

00:43:59.080 and then the

00:43:59.840 question after

00:44:00.420 I want you

00:44:01.200 to listen

00:44:01.600 to what

00:44:02.300 Democratic

00:44:02.780 strategist

00:44:03.400 James Carville

00:44:04.040 had to say

00:44:04.780 about what

00:44:05.520 he thinks

00:44:06.120 went wrong

00:44:06.640 for Democrats

00:44:07.460 what went wrong

00:44:09.500 was just

00:44:09.900 stupid wokeness

00:44:10.980 I mean

00:44:11.760 just

00:44:12.060 defund the police

00:44:13.740 lunacy

00:44:14.720 just take

00:44:15.340 Abraham Lincoln's

00:44:16.400 name off

00:44:16.960 the schools

00:44:17.500 I mean

00:44:18.200 that

00:44:18.480 people see

00:44:19.760 that

00:44:20.080 and

00:44:21.060 it

00:44:21.760 it

00:44:22.240 it's

00:44:22.600 it's

00:44:22.840 just

00:44:23.040 really

00:44:23.540 have a

00:44:24.200 suppressive

00:44:24.760 effect

00:44:25.340 all across

00:44:26.120 the country

00:44:26.560 the Democrats

00:44:27.000 some of these

00:44:27.500 people need to

00:44:28.180 go to a

00:44:28.720 woke detox

00:44:29.540 senator

00:44:29.900 or something

00:44:30.400 it's amazing

00:44:31.980 are Democrats

00:44:33.000 too woke

00:44:33.520 senator

00:44:33.840 are they

00:44:35.080 too woke

00:44:35.520 well

00:44:36.340 Barack Obama

00:44:37.180 has called out

00:44:37.780 the Democratic

00:44:38.200 Party for this

00:44:39.020 James Carville

00:44:40.300 has called out

00:44:40.840 the Democratic

00:44:41.220 Party for this

00:44:41.820 they know

00:44:42.140 something about

00:44:42.620 how to win

00:44:43.020 an election

00:44:43.440 but

00:44:43.900 some don't

00:44:44.800 care

00:44:45.040 like

00:44:45.600 representative

00:44:46.120 AOC

00:44:46.580 she didn't

00:44:47.640 like Carville

00:44:48.100 using the

00:44:48.600 term woke

00:44:49.320 in his

00:44:49.740 critique

00:44:50.140 and she

00:44:50.780 tweeted

00:44:51.060 that

00:44:51.400 using

00:44:52.120 terms

00:44:52.600 like

00:44:52.880 woke

00:44:53.300 to

00:44:53.540 insult

00:44:53.960 voters

00:44:54.460 under

00:44:54.840 45

00:44:55.560 is

00:44:56.300 denigrating

00:44:57.140 is there

00:44:57.540 anything

00:44:57.920 to that

00:44:58.620 is not

00:44:58.880 denigrating

00:44:59.340 to her

00:44:59.840 but others

00:45:00.980 saw something

00:45:01.480 different

00:45:01.780 with the

00:45:02.020 use of

00:45:02.300 the term

00:45:02.640 woke

00:45:03.060 by Carville

00:45:03.880 and CNN

00:45:04.380 Adam

00:45:05.080 Serwer

00:45:05.780 staff writer

00:45:06.740 at the

00:45:07.000 Atlantic

00:45:07.260 shared the

00:45:07.740 video on

00:45:08.140 Twitter

00:45:08.320 Sunday

00:45:08.660 night

00:45:08.920 and implied

00:45:09.780 the use

00:45:10.160 of the

00:45:10.360 term

00:45:10.540 woke

00:45:10.840 was

00:45:11.000 actually

00:45:11.400 something

00:45:11.880 deeper

00:45:12.880 perhaps

00:45:13.280 more

00:45:13.540 diabolical

00:45:14.240 part

00:45:15.280 of the

00:45:15.560 utility

00:45:15.980 of this

00:45:16.320 kind

00:45:16.540 of

00:45:16.680 use

00:45:16.980 of

00:45:17.160 woke

00:45:17.560 is

00:45:18.140 that

00:45:18.300 it

00:45:18.420 expresses

00:45:18.860 sentiments

00:45:19.540 the

00:45:19.740 people

00:45:20.040 using

00:45:20.500 it

00:45:20.700 would

00:45:20.900 be

00:45:21.120 uncomfortable

00:45:21.880 articulating

00:45:23.040 directly

00:45:23.780 he tweeted

00:45:24.680 oh you see

00:45:25.800 what he's getting

00:45:26.260 at there

00:45:26.740 see what he's

00:45:27.540 implying

00:45:27.940 well if you

00:45:28.280 don't

00:45:28.600 Joel

00:45:28.900 Anderson

00:45:29.380 of

00:45:29.600 Slate

00:45:29.960 put a

00:45:30.780 much finer

00:45:31.200 point

00:45:31.680 on it

00:45:32.220 quote

00:45:32.720 if you're

00:45:33.840 not black

00:45:34.440 and started

00:45:35.240 using

00:45:35.600 woke

00:45:36.000 pejoratively

00:45:36.620 sometime

00:45:37.000 post

00:45:37.360 2018

00:45:37.980 or so

00:45:38.700 or worse

00:45:39.400 don't know

00:45:40.200 anything

00:45:40.440 about the

00:45:40.900 earlier

00:45:41.260 iteration

00:45:41.720 of the

00:45:41.980 term

00:45:42.200 I think

00:45:42.760 it's

00:45:42.940 fair to

00:45:43.220 consider

00:45:44.240 racial

00:45:44.680 slur

00:45:45.340 he tweeted

00:45:46.020 a racial

00:45:46.820 slur

00:45:47.240 but he

00:45:48.040 goes on

00:45:48.540 and it

00:45:49.180 doesn't

00:45:49.420 mean I'm

00:45:49.720 gonna do

00:45:50.040 anything

00:45:50.340 to you

00:45:51.060 or that

00:45:51.660 anyone

00:45:51.900 else

00:45:52.220 will

00:45:52.480 but it

00:45:53.320 doesn't

00:45:53.580 mean I

00:45:53.920 won't

00:45:54.360 either

00:45:54.720 oh really

00:45:55.700 really

00:45:56.360 Joel

00:45:56.940 we're

00:45:58.080 quaking

00:45:58.480 in our

00:45:58.800 boots

00:45:59.180 what does

00:46:00.120 that mean

00:46:00.700 he answered

00:46:01.840 someone in

00:46:02.300 the replies

00:46:02.780 sometimes

00:46:03.560 violence

00:46:04.340 or threatening

00:46:05.260 it

00:46:05.580 is the

00:46:06.380 answer

00:46:06.820 I gotta

00:46:07.340 say

00:46:07.760 screw

00:46:08.060 you

00:46:08.360 Joel

00:46:08.760 so if

00:46:09.760 you're

00:46:09.880 saying

00:46:10.180 woke

00:46:10.680 you not

00:46:11.680 only might

00:46:12.120 be a

00:46:12.380 racist

00:46:12.680 but you

00:46:13.440 might need

00:46:14.020 to be dealt

00:46:14.420 with through

00:46:15.140 violence

00:46:15.780 or at the

00:46:16.320 very least

00:46:16.820 threats of

00:46:17.760 violence

00:46:18.220 because you

00:46:19.340 can't say

00:46:20.000 that

00:46:20.320 oh wait

00:46:21.160 this is

00:46:21.800 America

00:46:22.260 so woke

00:46:23.900 woke woke

00:46:24.660 woke woke

00:46:25.520 woke Joel

00:46:26.780 woke

00:46:27.460 come and get

00:46:28.440 me

00:46:28.660 oh wait

00:46:29.340 I'll sick

00:46:29.980 the police

00:46:30.360 on you

00:46:30.660 if you commit

00:46:31.140 a crime

00:46:31.540 by hurting

00:46:32.040 me

00:46:32.280 oh that's

00:46:33.620 racist too

00:46:34.240 I'm so

00:46:37.480 I'm so sick

00:46:37.760 of this

00:46:38.000 Steve

00:46:38.180 Krakauer

00:46:38.640 I'm like

00:46:39.240 the word

00:46:40.500 policing

00:46:40.900 has gotta

00:46:41.320 stop

00:46:41.820 and I'm

00:46:42.320 gonna keep

00:46:42.680 saying

00:46:43.000 woke

00:46:43.240 and I

00:46:43.460 think

00:46:43.600 everybody

00:46:43.880 should

00:46:44.120 too

00:46:44.320 yeah

00:46:45.500 well

00:46:45.940 I like

00:46:46.880 to

00:46:47.080 you know

00:46:47.340 say the

00:46:47.580 word

00:46:47.720 woke

00:46:48.000 also

00:46:48.340 I mean

00:46:48.620 I think

00:46:48.840 it seems

00:46:49.160 like

00:46:49.320 there was

00:46:50.140 a great

00:46:50.360 article

00:46:50.640 it was

00:46:50.880 like

00:46:51.000 okay

00:46:51.220 fine

00:46:51.520 we won't

00:46:51.880 say

00:46:52.060 woke

00:46:52.280 but can

00:46:52.560 we have

00:46:52.760 a term

00:46:53.120 for what

00:46:53.520 is

00:46:53.660 absolutely

00:46:54.220 happening

00:46:54.820 here

00:46:55.140 and needs

00:46:55.620 to be

00:46:55.920 described

00:46:56.340 because

00:46:56.760 what

00:46:57.280 you know

00:46:57.680 okay

00:46:57.940 if we

00:46:58.240 can't

00:46:58.440 say

00:46:58.540 woke

00:46:58.760 can we

00:46:59.020 say

00:46:59.160 something

00:46:59.440 else

00:46:59.800 something

00:47:00.260 is very

00:47:00.600 real

00:47:00.900 happening

00:47:01.260 here

00:47:01.460 but we

00:47:01.700 need

00:47:01.840 a way

00:47:02.020 to

00:47:02.140 describe

00:47:02.440 it

00:47:02.700 incredibly

00:47:03.440 annoying

00:47:03.780 assholes

00:47:04.300 I'll settle

00:47:05.080 on that

00:47:05.400 that's

00:47:05.700 that works

00:47:06.180 too

00:47:06.520 somebody who's

00:47:07.780 not annoying

00:47:08.260 is Peter Schiff

00:47:09.020 he's coming

00:47:09.400 back right

00:47:10.120 after this

00:47:10.460 quick break

00:47:10.900 before we

00:47:16.480 move on to

00:47:16.880 the unemployment

00:47:17.320 rate

00:47:17.680 can I ask

00:47:18.320 you because

00:47:18.640 you know

00:47:18.880 as we talk

00:47:19.500 about our

00:47:19.900 currency

00:47:20.400 getting devalued

00:47:21.520 and going

00:47:21.940 into the

00:47:22.340 toilet

00:47:22.620 I know

00:47:23.520 you tweet

00:47:23.900 a lot

00:47:24.160 about

00:47:24.400 bitcoin

00:47:25.020 and gold

00:47:26.120 and we've

00:47:26.860 had a lot

00:47:27.260 of bitcoin

00:47:27.780 believers

00:47:28.300 come on

00:47:28.740 here to

00:47:29.180 talk to

00:47:29.520 us about

00:47:30.020 you know

00:47:30.400 why we

00:47:30.780 should be

00:47:31.140 buying it

00:47:31.700 and so

00:47:32.860 far in my

00:47:33.320 case

00:47:33.560 we're not

00:47:34.240 I thought

00:47:35.880 it was

00:47:36.080 hilarious

00:47:36.420 that you

00:47:36.740 called

00:47:37.100 bitcoin

00:47:37.600 an imaginary

00:47:39.140 friend

00:47:39.760 what does

00:47:40.960 that mean

00:47:41.500 well you

00:47:43.420 talk about

00:47:43.960 bitcoin

00:47:44.400 believers

00:47:44.960 and that's

00:47:45.740 the only

00:47:46.300 value the

00:47:47.340 asset has

00:47:48.240 is the

00:47:48.800 belief

00:47:49.220 that people

00:47:50.140 have in

00:47:50.580 it

00:47:50.760 you know

00:47:52.420 because

00:47:52.740 bitcoin

00:47:53.320 itself

00:47:53.860 is nothing

00:47:54.680 it's just

00:47:55.320 a string

00:47:56.420 of numbers

00:47:57.620 generated

00:47:58.280 by computer

00:48:00.100 so it

00:48:01.080 exists in

00:48:01.740 cyberspace

00:48:02.620 but there's

00:48:03.720 no real

00:48:04.080 utility

00:48:04.520 to this

00:48:05.480 string of

00:48:05.900 numbers

00:48:06.220 there's

00:48:06.560 nothing

00:48:06.800 that you

00:48:07.140 can actually

00:48:07.660 do with

00:48:08.160 it

00:48:08.360 but to

00:48:09.200 the extent

00:48:09.600 that people

00:48:10.120 believe

00:48:10.860 that you

00:48:12.100 know this

00:48:12.400 string of

00:48:13.000 numbers has

00:48:13.560 value and

00:48:14.220 they're willing

00:48:14.600 to buy the

00:48:15.640 string of

00:48:16.020 numbers from

00:48:16.560 somebody else

00:48:17.320 then it can

00:48:18.720 have a price

00:48:19.480 and so as

00:48:21.300 long as you

00:48:22.220 know everybody

00:48:22.720 is delusional

00:48:23.640 with respect

00:48:24.360 to what

00:48:24.760 they own

00:48:25.300 and they're

00:48:26.260 just willing

00:48:26.760 to maintain

00:48:27.400 their belief

00:48:28.260 that this

00:48:28.860 thing is going

00:48:29.500 to continue

00:48:30.080 to appreciate

00:48:31.500 forever and

00:48:32.360 go to the

00:48:32.780 moon

00:48:33.120 you know you

00:48:34.340 have this

00:48:34.820 market

00:48:35.200 but to me

00:48:36.460 it's just a

00:48:37.000 gigantic bubble

00:48:37.880 I mean we've

00:48:38.460 seen it in

00:48:39.620 other asset

00:48:40.260 classes

00:48:40.820 you know you

00:48:41.420 think about

00:48:41.920 the beanie

00:48:42.360 baby craze

00:48:43.260 I mean beanie

00:48:44.100 babies had

00:48:44.620 some value

00:48:45.420 at least

00:48:45.880 I mean bitcoin

00:48:46.500 has none

00:48:47.240 but people

00:48:48.500 ascribed a

00:48:49.580 much higher

00:48:50.140 value to

00:48:51.380 beanie babies

00:48:52.040 than the

00:48:52.640 fact that

00:48:53.000 they were

00:48:53.240 just a

00:48:53.660 you know

00:48:53.880 a cuddly

00:48:54.320 little toy

00:48:54.980 but let me

00:48:55.560 ask you

00:48:55.820 something

00:48:56.080 if they

00:48:59.000 held on

00:48:59.440 to them

00:48:59.860 isn't it

00:49:00.460 isn't

00:49:01.300 can you

00:49:01.820 say the

00:49:02.440 same thing

00:49:03.020 about gold

00:49:03.760 my kids

00:49:04.200 were actually

00:49:04.520 just asking

00:49:05.080 me this

00:49:05.400 question the

00:49:05.820 other day

00:49:06.060 they're like

00:49:06.340 who decided

00:49:07.480 that gold

00:49:08.280 was going

00:49:08.780 to be this

00:49:09.420 most valuable

00:49:10.500 thing like

00:49:11.060 why didn't

00:49:12.060 somebody pick

00:49:12.580 up dirt

00:49:13.040 and say

00:49:13.540 this is going

00:49:14.500 to be the

00:49:14.760 basis for

00:49:15.160 our current

00:49:15.500 set like

00:49:15.760 what is

00:49:17.100 there intrinsic

00:49:17.860 value in

00:49:18.740 gold beside

00:49:19.740 that that we

00:49:20.960 just decided

00:49:21.560 to ascribe

00:49:22.140 to it

00:49:22.540 nobody

00:49:23.560 decided

00:49:24.340 gold was

00:49:25.040 going to

00:49:25.240 be money

00:49:25.740 gold just

00:49:26.760 became money

00:49:27.640 over thousands

00:49:29.020 of years

00:49:29.600 because it

00:49:30.320 worked better

00:49:31.020 as money

00:49:31.620 than all the

00:49:32.680 other commodities

00:49:33.440 that had been

00:49:34.700 used as money

00:49:35.700 in addition

00:49:36.780 to gold

00:49:37.380 but gold's

00:49:38.940 value comes

00:49:39.900 from its

00:49:40.380 properties

00:49:40.940 and its

00:49:42.300 scarcity

00:49:42.820 you know

00:49:43.780 bitcoin may

00:49:44.780 be scarce

00:49:45.520 even though you

00:49:46.220 can replicate

00:49:46.860 it indefinitely

00:49:47.800 with other coins

00:49:48.740 but its properties

00:49:50.000 don't really

00:49:50.520 have any value

00:49:51.420 gold is a

00:49:52.540 valuable metal

00:49:53.440 because of all

00:49:54.640 the things

00:49:55.200 you can do

00:49:56.160 with gold

00:49:56.760 I mean gold

00:49:57.500 jewelry is made

00:49:58.800 out of gold

00:49:59.340 for a reason

00:50:00.280 it's not like

00:50:01.360 they just

00:50:01.740 use it

00:50:02.860 it's because

00:50:03.820 the jewelry

00:50:04.500 has a better

00:50:06.140 use when it

00:50:07.540 is made out

00:50:08.320 of gold

00:50:08.760 than if you

00:50:09.380 make it from

00:50:09.960 something else

00:50:10.780 you know

00:50:11.280 you look inside

00:50:12.160 your cell phone

00:50:13.040 you get the

00:50:14.120 computer chip

00:50:14.800 and there's gold

00:50:15.640 in there

00:50:15.940 conducting electricity

00:50:17.000 why do they

00:50:18.040 use gold

00:50:18.580 why don't they

00:50:19.160 use a cheaper

00:50:19.860 metal

00:50:20.200 well because

00:50:20.940 gold does

00:50:21.520 a better

00:50:21.820 job

00:50:22.360 and so

00:50:22.980 it's worth

00:50:23.480 paying the

00:50:23.980 extra cost

00:50:24.780 to have that

00:50:25.720 better conductor

00:50:27.020 inside your chip

00:50:28.260 I mean they

00:50:28.960 use gold

00:50:29.740 in dentistry

00:50:30.720 in aerospace

00:50:32.660 in medicine

00:50:33.700 because the

00:50:35.080 properties that

00:50:35.960 gold has

00:50:36.820 and they're

00:50:37.800 superior to

00:50:39.240 the properties

00:50:39.840 that other

00:50:40.680 metals have

00:50:41.380 that potentially

00:50:42.060 you might be

00:50:42.840 able to use

00:50:43.580 so you know

00:50:45.440 but the

00:50:45.960 people in the

00:50:46.420 bitcoin community

00:50:47.240 they put out

00:50:48.400 a lot of

00:50:48.860 false information

00:50:49.840 on gold

00:50:50.760 because they

00:50:51.380 want to

00:50:51.880 diminish the

00:50:52.540 value of

00:50:53.080 gold and

00:50:54.100 pretend that

00:50:54.980 gold is

00:50:55.420 worthless so

00:50:56.460 they can

00:50:56.880 substitute it

00:50:57.740 for bitcoin

00:50:58.700 or substitute

00:50:59.380 bitcoin for

00:51:00.180 gold but

00:51:01.160 you know it's

00:51:01.560 hard to say

00:51:02.220 where you hear

00:51:03.760 the most

00:51:04.140 ridiculous stuff

00:51:05.780 coming from

00:51:06.300 the bitcoin

00:51:06.720 crowd is it

00:51:07.740 the positive

00:51:08.280 stuff they

00:51:08.820 said about

00:51:09.280 they say

00:51:09.780 about bitcoin

00:51:10.320 or the

00:51:11.320 negative

00:51:11.660 stuff they

00:51:12.200 say about

00:51:12.660 gold because

00:51:13.740 either is

00:51:15.000 is irrational

00:51:15.780 but it's all

00:51:16.840 part of the

00:51:17.480 mania part of

00:51:18.240 the hype to

00:51:19.300 dupe people

00:51:20.120 into buying

00:51:21.340 it because

00:51:21.940 once you own

00:51:23.020 bitcoin your

00:51:24.220 main goal is

00:51:25.160 to get other

00:51:25.640 people to buy

00:51:26.300 it too

00:51:26.660 yeah that's the

00:51:27.640 only way it

00:51:27.980 works because

00:51:28.460 if we're gonna

00:51:29.280 just take a

00:51:29.820 look at these

00:51:30.300 numbers in the

00:51:31.200 digital world

00:51:31.880 just these random

00:51:32.560 numbers on a

00:51:33.260 screen and say

00:51:33.840 that's worth

00:51:34.540 something to me

00:51:35.480 then you need

00:51:36.500 the delusion

00:51:37.040 like that's the

00:51:37.680 only way it

00:51:38.180 works that

00:51:38.680 everybody agrees

00:51:39.420 oh yes that's

00:51:40.160 worth something

00:51:40.740 and i want

00:51:41.260 it too

00:51:41.700 but it seems

00:51:43.140 to be

00:51:43.680 working right

00:51:44.840 i mean you've

00:51:45.180 got so many

00:51:45.900 very well-known

00:51:47.440 people right

00:51:48.260 elon musk and

00:51:49.140 others but

00:51:49.600 really successful

00:51:51.400 people buying

00:51:52.260 into this they

00:51:52.880 just had the

00:51:53.300 mayor of new

00:51:53.860 york eric

00:51:54.400 adams not

00:51:54.920 that he's

00:51:55.320 incredibly

00:51:56.080 financially

00:51:56.680 successful but

00:51:57.360 he's saying

00:51:57.740 he's gonna

00:51:58.000 take his

00:51:58.280 first three

00:51:58.680 paychecks in

00:51:59.260 bitcoin more

00:52:00.500 and more you're

00:52:00.920 seeing people

00:52:01.360 like oh i'm

00:52:01.820 too late to

00:52:02.280 get in on it

00:52:02.800 i want to get

00:52:03.160 in on it

00:52:03.640 you know i i

00:52:04.540 bought it for

00:52:05.320 a thousand dollars

00:52:06.160 and now i've

00:52:07.780 got five hundred

00:52:08.340 thousand worth of

00:52:09.080 bitcoin right so

00:52:09.700 it's like

00:52:10.040 yeah a lot of

00:52:11.300 people feel like

00:52:11.820 it's a gold rush

00:52:12.720 and they've

00:52:13.460 missed it and

00:52:13.920 they need to

00:52:14.240 get in on it

00:52:14.880 yeah it's a

00:52:16.040 fool's gold rush

00:52:17.040 and all of

00:52:18.360 these schemes

00:52:19.080 always work

00:52:20.080 until they

00:52:20.580 don't i mean

00:52:21.200 that's the

00:52:21.920 problem right

00:52:22.580 you whether

00:52:23.120 it's a chain

00:52:23.780 letter a

00:52:24.620 pyramid scheme

00:52:25.620 a ponzi scheme

00:52:26.780 they all work

00:52:27.980 really well

00:52:28.880 initially and

00:52:30.960 people have a

00:52:31.660 delusion that

00:52:32.420 they've made a

00:52:32.920 bunch of money

00:52:33.600 because all the

00:52:34.840 gains are on

00:52:35.740 paper now some

00:52:36.980 people actually

00:52:38.040 made real gains

00:52:39.020 because they got

00:52:39.620 in early and

00:52:40.400 they cashed out

00:52:41.300 but mostly you

00:52:42.840 have people that

00:52:43.480 got in and never

00:52:44.480 got out and so

00:52:45.940 it's this gigantic

00:52:47.160 bubble and the

00:52:48.540 problem is when the

00:52:49.520 bubble pops and the

00:52:50.920 air comes rushing

00:52:51.700 out that will

00:52:52.660 eventually happen but

00:52:53.900 when you get these

00:52:54.500 politicians saying oh

00:52:55.720 i'm going to take a

00:52:56.560 paycheck in bitcoin

00:52:57.500 they're not taking

00:52:58.740 their salary in

00:52:59.640 bitcoin their

00:53:00.620 salary is in

00:53:01.540 dollars they're just

00:53:02.880 doing this publicity

00:53:03.840 stunt where they're

00:53:05.520 going to say hey

00:53:06.060 you could take my

00:53:06.960 salary convert it

00:53:08.360 to bitcoin pay it

00:53:09.700 to me then i'm

00:53:10.580 going to take the

00:53:11.140 bitcoin and sell

00:53:12.080 them and get the

00:53:13.000 dollar so i can pay

00:53:14.120 my rent i can buy

00:53:15.540 my groceries i can

00:53:16.740 pay my insurance

00:53:17.800 and my taxes why

00:53:19.600 are these mayors

00:53:20.300 doing it because

00:53:21.380 they want the

00:53:22.180 political support of

00:53:23.740 the bitcoin community

00:53:24.780 they're probably

00:53:25.580 getting campaign

00:53:26.720 donations from big

00:53:28.240 bitcoiners for

00:53:29.660 them coming out

00:53:30.400 and helping to

00:53:31.040 pump up bitcoin

00:53:31.860 and clearly these

00:53:34.600 mayors would like

00:53:35.680 to see some of

00:53:36.820 these crypto

00:53:37.460 related businesses

00:53:38.760 set up shop you

00:53:40.380 know within their

00:53:41.060 cities so they can

00:53:42.400 start paying taxes

00:53:43.480 locally you did say

00:53:44.640 something people

00:53:45.400 locally so to curry

00:53:46.980 favor with these

00:53:48.420 crypto entrepreneurs

00:53:49.340 they come out and

00:53:50.820 say stuff like this

00:53:51.940 uh you know which

00:53:53.160 uh makes it more

00:53:54.640 likely that some of

00:53:55.680 these businesses

00:53:56.360 will will move

00:53:57.720 there but at the

00:53:58.740 end of the day

00:53:59.380 this is going to

00:54:00.200 come back to bite

00:54:00.940 those cities because

00:54:02.060 all these crypto

00:54:03.040 businesses are going

00:54:04.140 to fail because

00:54:05.460 they're all part of

00:54:06.420 the bubble it's all

00:54:07.540 malinvestment because

00:54:09.100 when the price comes

00:54:10.120 crashing down the

00:54:11.580 businesses are gone

00:54:12.660 the only reason people

00:54:13.960 want bitcoin or any

00:54:15.200 other crypto is

00:54:16.400 because they think

00:54:17.180 they're going to get

00:54:17.760 rich it's their

00:54:18.960 ticket to easy street

00:54:20.240 it's a lottery ticket

00:54:22.040 that can't lose all

00:54:23.540 you have to do is buy

00:54:24.560 it and hold it and

00:54:25.940 you're going to be

00:54:26.460 rich you don't have

00:54:27.280 to work hard you

00:54:28.220 don't have to save

00:54:29.160 just buy this bitcoin

00:54:30.820 and just sit on it

00:54:32.600 hodl it and you're

00:54:34.360 going to be a

00:54:34.760 millionaire right

00:54:35.940 well that's a

00:54:36.820 fantasy a lot of

00:54:37.860 people unfortunately

00:54:38.720 are believing in

00:54:39.920 this fantasy and

00:54:41.260 the fact that the

00:54:42.000 price is going up

00:54:43.060 is helping to

00:54:43.800 perpetuate the

00:54:44.920 delusion uh and

00:54:46.520 you know the greed

00:54:47.460 uh that surrounds all

00:54:48.980 these cryptocurrencies

00:54:49.720 but this is going to

00:54:51.720 end badly uh you

00:54:52.980 know i've seen this

00:54:53.720 before many many

00:54:54.800 times you have a lot

00:54:56.180 of young people uh

00:54:57.720 that that have never

00:54:58.620 seen this before

00:54:59.580 that think older

00:55:00.660 people like me we

00:55:01.680 weren't we don't

00:55:02.080 know what we're

00:55:02.400 talking about we're

00:55:03.220 missing out on this

00:55:04.220 this new era because

00:55:05.840 it's different this

00:55:06.740 time well you know

00:55:07.920 it's not different

00:55:08.620 this time it's the

00:55:10.020 same uh you know

00:55:11.340 just because it's on

00:55:12.900 a blockchain uh

00:55:14.180 doesn't mean that uh

00:55:15.480 the laws of

00:55:16.080 economics no longer

00:55:17.540 apply if it walks

00:55:19.320 like a bubble and

00:55:20.720 quacks like a bubble

00:55:21.840 right it's a bubble

00:55:23.080 and that's what this

00:55:24.200 thing is and the

00:55:25.220 people who are trapped

00:55:25.960 inside it just don't

00:55:27.440 realize it yet

00:55:28.220 do you have any

00:55:29.220 predictions on when

00:55:30.760 that's going to

00:55:31.700 implode i stopped

00:55:33.460 trying to do that i

00:55:34.540 mean the price keeps

00:55:35.760 going up as more and

00:55:37.360 more people get fooled

00:55:38.560 into buying it uh and

00:55:41.060 so how many more fools

00:55:42.640 are gonna overpay for

00:55:44.400 worthless you know uh

00:55:46.360 digital tokens i don't

00:55:48.020 know i mean the price

00:55:49.380 can certainly go higher

00:55:50.560 i mean here we are you

00:55:51.960 know 65 66 000 i think

00:55:54.180 we got to 68 000 earlier

00:55:56.300 this morning so getting

00:55:58.080 close to 70 000 a lot

00:55:59.720 of people have laser

00:56:00.580 beams in their eyes

00:56:01.580 hoping for 100 000 i

00:56:04.080 mean it's certainly

00:56:04.660 possible i mean it may

00:56:05.780 not happen it may

00:56:06.600 happen i don't know but

00:56:08.440 i do know that once it

00:56:09.620 stops going up it's

00:56:11.120 going down and it's

00:56:12.400 going way down and

00:56:13.520 eventually it's going to

00:56:14.640 zero

00:56:14.960 it's it's basically

00:56:16.900 gambling so you know

00:56:18.000 you be prepared to lose

00:56:19.360 the money same as you

00:56:20.640 you are when you go to

00:56:21.420 vegas don't bet

00:56:22.100 anything you can't

00:56:22.700 afford to lose

00:56:23.280 okay so let's talk

00:56:24.660 about the unemployment

00:56:25.260 rate because i do

00:56:26.240 think it's something

00:56:28.220 something bigger is

00:56:29.280 going on here um the

00:56:30.980 u.s added 531 000 jobs

00:56:33.020 last month that was

00:56:34.200 better than we

00:56:35.140 expected we thought it

00:56:36.060 was going to be worse

00:56:36.900 than that and it was

00:56:37.540 better those numbers

00:56:38.740 topped uh the

00:56:39.680 expectations of 450 000

00:56:41.620 by almost 100 000 and

00:56:44.020 um it was it follows a

00:56:45.640 more disappointing

00:56:46.240 month which which was

00:56:47.380 september where we

00:56:48.040 only added 312 000 so

00:56:50.560 the unemployment rate is

00:56:51.740 down and that's a good

00:56:53.180 thing down to 4.6 percent

00:56:55.160 in october that's the

00:56:56.100 lowest it's been since

00:56:56.960 february of 2020 um so

00:56:59.980 the unemployment rate's

00:57:00.840 going down we're adding

00:57:02.240 more jobs and the

00:57:03.420 biden administration is

00:57:05.740 looking at us saying

00:57:06.740 well a c our policies are

00:57:09.800 working and then b why

00:57:12.000 aren't you more happy

00:57:12.740 with us you should be

00:57:13.620 more happy with us why

00:57:15.140 was economy the number

00:57:16.720 two issue according to

00:57:18.220 most polls for all those

00:57:19.520 voters who voted

00:57:20.200 republican this past two

00:57:21.720 day because look what we

00:57:23.040 did for you your thoughts

00:57:24.500 on that well first of all

00:57:26.960 you know the economy is

00:57:28.060 always only the number

00:57:29.160 one issue when it's bad

00:57:31.020 see when the economy is

00:57:32.340 good voters look for

00:57:33.640 other reasons to vote it's

00:57:35.780 only when the economy is

00:57:36.800 bad uh that it becomes the

00:57:38.660 number one issue and and i

00:57:40.560 think the economy is bad and

00:57:41.820 i think those numbers don't

00:57:42.960 really tell the whole story i

00:57:44.540 mean first of all we're not

00:57:46.000 really creating jobs we're

00:57:47.600 restoring the jobs that

00:57:49.300 were temporarily put on hold

00:57:50.940 due to the pandemic which

00:57:52.520 is why it's so laughable when

00:57:54.520 biden claims credit for

00:57:56.220 creating these jobs these

00:57:57.400 jobs were here before biden

00:57:58.920 right the workers just went

00:58:00.800 home because they were told

00:58:02.500 to go home because they had a

00:58:04.060 lockdown for covid and so all

00:58:06.220 that's happened since biden

00:58:07.600 has become president is those

00:58:09.500 people have gone back to their

00:58:10.900 jobs biden had no role in

00:58:13.220 creating those jobs they were

00:58:14.560 here what biden has done is

00:58:17.200 actually slow down the

00:58:18.460 process more people would

00:58:20.220 have returned to their jobs

00:58:21.300 sooner but for the policies

00:58:23.260 of the biden administration

00:58:24.920 the other big problem though is

00:58:27.120 a lot of people are not going

00:58:28.940 back to work that's why the

00:58:30.400 labor force participation rate

00:58:32.080 is still so low and one of the

00:58:34.140 reasons that the unemployment

00:58:35.220 rate is so low is because in

00:58:37.540 order to be counted as

00:58:38.920 unemployed you have to want to

00:58:40.960 work but we have a lot of

00:58:42.740 people who don't have jobs who

00:58:44.660 don't want them now because

00:58:46.160 the government's made them a

00:58:47.220 better deal and so they're not

00:58:48.940 working or they're just trading

00:58:50.760 cryptocurrencies or trading

00:58:52.540 stocks they're doing other

00:58:53.780 things and they think they've

00:58:54.940 found a better way than

00:58:56.840 actually going back to work so

00:58:59.300 that is part of the problem is

00:59:01.240 the the mass number of people

00:59:02.980 that are no longer even part of

00:59:05.400 the labor force that is one of

00:59:07.160 the reasons that so many

00:59:08.180 companies are having such a

00:59:09.840 hard time hiring people because

00:59:11.640 they don't want to work even if

00:59:13.720 they pay them higher wages many

00:59:15.500 people still don't want to

00:59:16.480 work but of course if they pay

00:59:17.900 them higher wages they have to

00:59:19.740 pass that on to the customers in

00:59:22.340 higher prices and so even though

00:59:24.560 people are going back to work

00:59:26.080 their paychecks don't go as far as

00:59:28.180 they used to even though in some

00:59:30.120 cases the paychecks are bigger

00:59:31.740 they're not big enough to

00:59:33.620 compensate for the increase in

00:59:35.800 prices and those price increases

00:59:38.080 prices are going to you know

00:59:39.780 accelerate we got the producer

00:59:41.720 price numbers that came out

00:59:43.020 today uh and in for the first 10

00:59:45.920 months of the year uh producer

00:59:48.260 prices are up 8.3 percent so if you

00:59:51.120 annualize that out over the full

00:59:52.840 year that's a 10 percent increase in

00:59:55.800 prices at the producer level well

00:59:58.580 does that mean consumer prices are

01:00:00.120 only up about six percent what does

01:00:02.040 that mean that means that businesses

01:00:03.820 have been reluctant to pass on those

01:00:06.440 increases in their costs to the

01:00:08.640 consumer well that's all going to

01:00:10.340 change i think next year because a

01:00:12.280 lot of these businesses were kind of

01:00:14.160 hoping that the price pressures would

01:00:16.360 ease off that the fed was right that

01:00:18.940 it was transitory and so they were

01:00:20.960 not passing on these increases to the

01:00:24.060 customers well when it turns out that

01:00:26.460 the price increases are permanent

01:00:28.600 they're going to stop hoping for

01:00:30.980 relief and instead they're going to

01:00:32.840 look to the customers to pay these

01:00:34.680 higher costs so you're going to see

01:00:36.740 that in 2022 as well as the

01:00:39.700 additional increases that are going

01:00:41.680 to come during that year so not only

01:00:43.880 is 2022 going to have all the

01:00:46.280 inflation from 2022 but we're going

01:00:48.580 to have to catch up with what we we

01:00:50.980 didn't get in 2021 because the the

01:00:53.840 producers uh you know took that

01:00:55.720 bullet for us who are the people who

01:00:57.860 are still sitting at home because even

01:00:59.560 the biden extended unemployment checks

01:01:01.500 stopped in september so i mean that

01:01:04.240 government you know dole out it

01:01:06.180 doesn't last forever how how are these

01:01:07.960 people affording to still be sitting on

01:01:09.960 their couches well there are still other

01:01:12.360 benefits that people are getting that

01:01:14.420 didn't expire uh that they get you know

01:01:17.060 for how many kids they have and people

01:01:20.120 are still able to get regular

01:01:21.680 unemployment benefits even if they

01:01:23.240 don't get the the supplement uh some

01:01:25.920 people may still be sitting on some of

01:01:27.860 their savings a lot of people remember

01:01:29.860 didn't pay rent for a long time uh you

01:01:32.300 know because of the rent moratorium i'm

01:01:33.980 not sure how many people are still

01:01:35.320 living rent free uh because of that

01:01:37.980 um but obviously people are finding a

01:01:41.400 way to get by without jobs because

01:01:43.820 there's what five million fewer people

01:01:46.460 in the labor force today than there were

01:01:49.440 prior to the pandemic and of course you

01:01:51.240 know we've added population people have

01:01:53.660 graduated from high school and college

01:01:55.620 over the last couple years yet we still

01:01:57.960 have you know five million fewer people

01:02:00.320 that are employed and actually helping

01:02:03.020 to produce stuff

01:02:03.780 so peter you're an interesting guy with

01:02:07.120 looking at your background i i now having

01:02:09.260 listened to you i'm not surprised that you

01:02:10.760 once worked on um it was the ron paul

01:02:13.160 presidential campaign right not not ran for

01:02:15.180 the ron paul in very libertarian yeah it

01:02:17.480 was back in 2008 out so yeah so that i

01:02:20.900 mean that that makes sense right listening

01:02:22.780 to you smaller government and all that

01:02:24.180 um and so i wonder who do you think like

01:02:27.640 when you look around today's politicians

01:02:29.480 who do you like the big right this is

01:02:32.260 like it seems like both parties now want

01:02:34.300 to grow government and throw money at our

01:02:35.800 problems yeah you know that was the big

01:02:38.340 problem during the trump era i mean trump

01:02:41.400 was a big government guy i mean he talked

01:02:43.980 about uh smaller government on the campaign

01:02:46.960 trail but when he became president what did

01:02:49.820 he do he increased military spending he

01:02:52.060 increased welfare spending he created new

01:02:54.640 departments of government like you know

01:02:56.640 the space force uh and so instead of

01:02:59.520 making government smaller under trump we

01:03:01.860 made it a lot bigger uh also donald trump

01:03:05.080 was a big advocate of zero percent interest

01:03:07.460 rates quantitative easing in fact he

01:03:09.500 wanted the fed to go negative he thought

01:03:11.520 zero was too high he wanted negative

01:03:13.780 interest rates he wanted even more

01:03:15.540 inflation to pay for his expanded

01:03:17.820 government and he was a protectionist

01:03:19.680 you know i was a big critic of the trump

01:03:22.340 tariffs and his the trade deals

01:03:24.200 at the time he was making them not that

01:03:26.540 many republicans were willing to stand up

01:03:28.500 for that but i said these deals were going

01:03:30.500 to backfire and today we have record trade

01:03:34.200 deficits with china so if we we were losing

01:03:37.160 on trade before trump we're losing even bigger

01:03:39.920 on trade after trump so really you know

01:03:43.600 please trump was more of a populist than a

01:03:46.380 true conservative or libertarian you know

01:03:49.040 what we need in the republican party is a

01:03:53.400 party of fiscal responsibility and small

01:03:56.140 government free markets capitalism we have

01:03:59.720 to cut government spending you know and not

01:04:03.160 just on the things that are unpopular but on

01:04:05.800 the popular programs we have to cut social

01:04:08.140 security spending we have to cut medicare

01:04:10.240 spending the government doesn't have the

01:04:11.980 money it you know we need to make these big

01:04:14.540 cuts to make government smaller to relieve the

01:04:18.360 economy of the burden of paying for all this

01:04:21.800 government especially the younger people who

01:04:24.400 are just starting out they can't succeed with

01:04:28.480 the type of tax burden that's on the economy

01:04:31.260 and we can't create the type of jobs that they

01:04:33.980 need to succeed unless we unleash you know the

01:04:37.680 economy and free up all these resources we need

01:04:40.740 more savings we need more capital investment

01:04:42.880 we can't just print money uh we have to make stuff and

01:04:46.620 we're not going to do that uh with zero percent

01:04:49.260 interest rates massive government spending so we

01:04:52.260 need politicians to understand this and who have

01:04:55.720 the guts to tell the public the truth about what

01:04:58.520 needs to be done yeah it's funny because you hear

01:05:01.320 these young people say like socialism socialism is

01:05:03.620 like there's nothing wrong with capitalism capitalism

01:05:05.460 done right capitalism done wrong can lead to some

01:05:08.780 unfortunate results we may be feeling that now i will say

01:05:11.540 this you know ron has a son his name is rand and he's uh he's got a lot of the

01:05:16.780 same economic policies would you ever consider

01:05:19.420 supporting him well i've always supported rand i've known him for a long time

01:05:23.840 i've known i knew him before he got to the senate in fact

01:05:26.680 when he was first elected in kentucky in 2010 i ran for senate that year too in

01:05:31.500 connecticut yeah and so i never made it out of the primary because i lost it

01:05:35.400 i can't believe we have blumenthal here in the primary and then won the white

01:05:39.460 house so i i am a supporter of of rand he is you know one of the few uh

01:05:43.520 senators who who i can support uh but you know you said that you know

01:05:47.780 capitalism you know when it's done wrong it's a problem the bigger problem is

01:05:51.520 there's no way to do socialism right it sounds like everybody thinks that the

01:05:55.460 only reason socialism hasn't succeeded is because they didn't do it right it's

01:05:59.860 impossible to do it right yeah and people also forget uh that fascism is a form of

01:06:05.940 socialism a lot of people think no fascism is what you get when you're on the

01:06:09.120 extreme right no the the extreme right would be anarchy uh if you're going to put you

01:06:14.280 know capital communism on the left uh then the opposite of that would be no

01:06:18.820 government not complete government communism is actually a form of socialism

01:06:22.960 it's one form fascism is another form of socialism and unfortunately the type of

01:06:28.540 socialism that we basically have in america really is fascism if you go back and look at

01:06:33.640 mussolini fascism we've pretty much adopted it here in the united states and that is the

01:06:38.200 problem we need more freedom in america and that means lower taxes less government regulation

01:06:45.200 and a lot less government spending sounds great it's sad that you did not win that race

01:06:51.840 because we got richard blumenthal here in connecticut instead who's got a very different

01:06:55.280 economic philosophy than you do what a pleasure getting to know you thank you so much for coming

01:06:59.720 on peter oh my pleasure megan uh listen i want to thank everybody for joining us today tomorrow we've

01:07:04.640 got a megan kelly show all-star pairing for our 200th episode it's the 200th episode of our podcast

01:07:10.780 which we launched last september coleman hughes and cheryl atkinson are here that's a great pairing i'm

01:07:16.380 excited for them um and in the meantime if you want to check out the show you can go to youtube.com

01:07:21.360 slash megan kelly you can check out our interview with the don lemon accuser dustin heist yesterday

01:07:25.860 and download the show megan kelly on apple pandora spotify and stitcher love your support see you

01:07:31.960 tomorrow thanks for listening to the megan kelly show no bs no agenda and no fear

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The Megyn Kelly Show - November 09, 2021

Peter Schiff on Biden's Dysfunctional Economy, Inflation Concerns, and the Value of Bitcoin ｜ Ep. 199

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