The StoneZONE with Roger Stone


The Stone Zone ｜ 04-09-25


Episode Stats

Misogynist Sentences

5

Hate Speech Sentences

22


Summary

Roger Stone on President Trump's trip to New Hampshire and why he thinks he can beat Hillary Clinton in a primary election. Also, why he doesn t think China is going to get a fair deal from the United States on trade.


Transcript

00:00:00.960 At Desjardins, we speak business.
00:00:03.880 We speak equipment modernization.
00:00:06.040 We're fluent in data digitization and expansion into foreign markets.
00:00:09.980 And we can talk all day about streamlining manufacturing processes.
00:00:14.260 Because at Desjardins Business, we speak the same language you do.
00:00:17.960 Business.
00:00:18.760 So join the more than 400,000 Canadian entrepreneurs who already count on us.
00:00:23.460 And contact Desjardins today.
00:00:25.520 We'd love to talk business.
00:00:30.000 This is the Stone Zone with Roger Stone.
00:00:43.840 People love him and respect him.
00:00:45.300 Roger Stone.
00:00:46.500 Now, get him a zone.
00:00:48.500 It's the Stone Zone.
00:00:50.540 Here's Roger Stone.
00:00:53.780 Welcome in to the Stone Zone.
00:00:56.700 Anybody who knows President Donald Trump, and I've known him 50 years, understands he is not a man to be trifled with.
00:01:07.520 I mean, I worked for former Presidents Richard Nixon.
00:01:10.180 I also worked for Senator Bob Dole.
00:01:12.700 He would have been a great president.
00:01:14.480 They were both very, very tough guys.
00:01:17.240 But neither one of them is as tough as Donald Trump.
00:01:20.480 And he has a worldview, which is correct.
00:01:23.920 He's been saying since the 80s, I remember when I persuaded him to dip his toe in the water in 1988 with a potential presidential bid.
00:01:36.140 We made a trip to Portsmouth, New Hampshire.
00:01:38.140 And he spoke to the Portsmouth, New Hampshire Chamber of Commerce, I believe it was.
00:01:44.880 It was really the first time I'd ever seen the electricity of Trump in a political context.
00:01:50.520 And, of course, the fact that it was an election year, the fact that New Hampshire holds the first in the nation primary.
00:01:56.840 There was huge speculation that this trip was about exploring a presidential bid.
00:02:04.760 And he spoke in a speech that could be given today.
00:02:09.520 He talked about the inequities of our trade deals with countries around the world.
00:02:16.620 As he pointed out, when it comes to negotiations, they send killers and we send social workers.
00:02:23.480 Donald Trump's economic plan is not as simple as a tariff war.
00:02:29.420 That is but one leg of a three-legged stool.
00:02:33.500 Yes, he would like to go to zero tariffs everywhere.
00:02:36.980 You put no tariffs on us, we'll put no tariffs on you.
00:02:40.640 That's free trade.
00:02:42.060 That's fair trade.
00:02:43.560 But he will use tariffs as a cudgel to get a fair deal for the United States.
00:02:49.620 Then, of course, we have to renew the Trump tax cuts, which were not only the deepest across-the-board tax cuts in American history,
00:02:58.280 but we must also cut our profligate spending.
00:03:02.540 If Elon Musk and Doge have done anything, they've demonstrated to the American people the not millions,
00:03:09.680 not billions, but trillions of dollars that are being spent, or God knows what,
00:03:16.600 subsidizing all kinds of political causes and being paid to journalistic enterprises right here in the United States.
00:03:25.480 It's a massive waste of money.
00:03:27.620 I mean, $140 million to the New York Times?
00:03:30.960 That's a lot of subscriptions.
00:03:33.260 $90 million to Politico?
00:03:35.240 For what?
00:03:35.840 So, after President Trump raised tariffs on China to 104% yesterday,
00:03:42.760 China retaliated with an 84% tariff on U.S. products.
00:03:47.340 Contrast that with the Mexicans who announced that they were dropping their tariffs to zero,
00:03:52.800 so we will now drop ours to zero.
00:03:55.520 See, I really don't think Donald Trump is a traditional conservative.
00:03:59.080 It's not that he loves tariffs, but he loves using them as a club to force other nations to give us a fair deal.
00:04:06.700 In fact, President Trump has responded by lowering tariffs for every nation except China,
00:04:13.160 whose tariffs he raised even higher.
00:04:16.040 On True Social, President Trump said,
00:04:17.880 Based on the lack of respect China has shown to the world's markets,
00:04:22.500 I am hereby raising the tariff charged to China by the United States to 125% effective immediately.
00:04:29.900 At some point, hopefully in the near future,
00:04:32.520 China will realize that the days of ripping off the United States of America are over.
00:04:36.660 In other countries, it is no longer sustainable or acceptable.
00:04:41.520 Conversely, and based on the fact that more than 75 countries have called representatives of the United States,
00:04:48.120 including the Department of Commerce, the Treasury, and the United States trade representative,
00:04:54.380 to open negotiations for a solution to the subject being discussed relative to trade,
00:05:00.240 trade barriers, tariffs, currency manipulation, and non-monetary tariffs,
00:05:07.240 and that these countries have not, at my strong suggestion,
00:05:10.420 retaliated in any way, shape, or form against the United States,
00:05:13.860 I have authorized a 90-day pause
00:05:16.180 and a substantially lowered reciprocal tariff during this period.
00:05:20.600 A mere 10%, also effective immediately.
00:05:23.880 Thank you for your attention to this matter.
00:05:26.720 I always can tell when the President's posting himself late at night,
00:05:31.240 there's a lot of capitalized words and all capital words,
00:05:36.200 and occasionally even a misspelling,
00:05:38.560 because, you know, sometimes your mind works faster than your fingers.
00:05:42.040 Greg, I always tell when it's him, it's not some junior staffer.
00:05:46.960 The Dow Jones and the stock market responded at 1.30 p.m. Eastern time
00:05:52.380 by shooting upwards almost 2,000 points.
00:05:56.060 So much for the Panacons.
00:05:59.540 That's the name that President Trump has given those who don't have the courage
00:06:04.740 to see this reset of the American economy through.
00:06:09.460 Yesterday's show, I suggested that the enormous sell-off
00:06:14.060 and the panic in the stock market be investigated,
00:06:17.300 because I think most of those dumping huge amounts of stock
00:06:22.540 are institutional investors, maybe in some cases even foreign countries.
00:06:27.380 I'm not sure that if they look closely, and the SEC can do this,
00:06:32.120 that you will find that it is the mom-and-pop investors
00:06:36.000 who are selling off.
00:06:39.000 The stock market is only a measure of our economy
00:06:43.460 when the Democrats want it to be.
00:06:45.240 When we had record stock market under President's first term,
00:06:49.180 the Democrats insisted that it meant nothing.
00:06:51.960 I don't think it's a good long-term barometer
00:06:56.760 of the health of the American economy.
00:07:00.080 Barry Habib, one of the leading experts in the country
00:07:04.460 when it comes to mortgages and housing,
00:07:06.860 but also, candidly, economically across the board,
00:07:10.420 one of the smartest guys I know is going to join us in a little bit
00:07:13.560 to talk about this.
00:07:15.260 President Trump's tariffs began last Wednesday
00:07:17.460 and have created massively successful results so far.
00:07:21.260 You wouldn't know that by watching CNN or MSNBC
00:07:24.700 and several of the others,
00:07:27.740 but those aren't really news outlets, folks.
00:07:29.480 Those are propaganda fronts.
00:07:32.040 Don't go looking there for the truth.
00:07:34.080 Go looking here at the Red Apple Audio Networks
00:07:37.920 and the programming we have,
00:07:39.360 particularly, pardon me if I'm biased,
00:07:42.040 the Stone Zone.
00:07:43.200 The European Union and Taiwan
00:07:45.240 already offered the United States a flat deal
00:07:47.540 of zero tariffs for zero tariffs across many industries.
00:07:50.920 White House Press Secretary Caroline Leavitt,
00:07:53.920 she's a firecracker, by the way,
00:07:56.000 said that since the Liberation Day announcement,
00:07:59.100 nearly 70 countries have reached out to the president
00:08:02.080 to begin a negotiation.
00:08:05.920 Regarding China,
00:08:07.160 Trump fulfilled his earlier promise
00:08:09.860 when he said China issued retaliatory tariffs at 34%
00:08:13.680 on top of their already record-setting tariffs,
00:08:16.700 non-monetary tariffs,
00:08:18.140 illegal subsidization of companies,
00:08:21.580 and massive long-term currency manipulation,
00:08:24.340 despite my warnings that any country
00:08:26.560 that retaliates against the United States
00:08:28.880 by adding additional tariffs above and beyond
00:08:30.780 their existing long-term tariff abuse,
00:08:33.440 our nation will be immediately met with new
00:08:35.160 and substantially higher tariffs,
00:08:37.740 above and beyond those initially set.
00:08:40.520 Therefore, if China does not withdraw,
00:08:42.320 its 34% increase above their
00:08:44.340 already long-term trade abuses by tomorrow,
00:08:48.460 the United States will impose
00:08:49.660 an additional tariff of 50%
00:08:51.800 effective April 9th.
00:08:53.520 And Donald Trump is a man who says what he means
00:08:55.980 and means what he says.
00:08:58.060 He has done exactly that.
00:09:00.660 Remember, folks,
00:09:01.300 President Trump is correcting a
00:09:02.620 decades-long problem
00:09:05.160 with our economy.
00:09:08.020 He is not a man to be trifled, Will.
00:09:11.340 He will stay at the course.
00:09:13.740 And I really still continue
00:09:15.780 to believe in him
00:09:16.800 and believe this has been a long time
00:09:19.220 necessary
00:09:20.580 and that he's going to lead us
00:09:22.580 into a golden age of peace,
00:09:25.160 prosperity,
00:09:26.220 security,
00:09:27.380 justice,
00:09:28.020 and law and order.
00:09:30.400 The Supreme Court also
00:09:32.480 delivered an incredible victory
00:09:35.240 to President Trump yesterday
00:09:36.860 and upheld
00:09:37.720 the mass firing
00:09:39.540 of tens of thousands
00:09:41.060 of probationary federal employees
00:09:43.760 granting a request
00:09:44.680 for an emergency administrative stay
00:09:46.800 on a blatantly unconstitutional ruling
00:09:49.460 from a lower court
00:09:50.520 blocking the order of the firings.
00:09:53.960 The idea that the Supreme Court
00:09:55.560 or that a lower court, pardon me,
00:09:58.680 can suspend the executive power
00:10:02.740 of the presidency
00:10:03.760 is, well, unconstitutional.
00:10:06.080 The majority of the Supreme Court
00:10:08.060 ruled 72
00:10:08.960 that the plaintiffs,
00:10:10.560 nine non-profit organizations
00:10:12.920 who had sued
00:10:14.080 to reinstate the employees,
00:10:15.600 lacked standing to sue.
00:10:17.340 Even the liberal justice,
00:10:19.660 Elena Kagan,
00:10:20.800 ruled for the Trump administration.
00:10:23.040 The legal battle here
00:10:24.760 stems from the termination
00:10:26.180 of an estimated 1,600
00:10:28.080 probationary federal employees
00:10:31.080 prompting a wave of lawsuits
00:10:33.700 from Democrat-led states
00:10:36.580 and former workers.
00:10:38.820 Justice Department lawyers
00:10:39.780 have warned that
00:10:40.700 forcing the government
00:10:42.060 to rehire these employees
00:10:43.420 would create chaos
00:10:44.580 across federal agencies.
00:10:46.540 They also maintained
00:10:47.620 that the firings
00:10:48.340 were tied to poor performance
00:10:50.680 and allegation dismissed
00:10:52.680 employees strongly disputed.
00:10:55.080 Now, this is the second major win
00:10:57.520 for the Supreme Court
00:10:59.020 that the Supreme Court
00:11:00.600 has handed
00:11:01.120 the Trump administration,
00:11:02.200 actually.
00:11:03.100 On Monday,
00:11:03.940 the Supreme Court
00:11:04.760 granted President Trump's request
00:11:06.500 to vacate a lower court's ruling,
00:11:09.460 barring the administration
00:11:10.900 from deporting
00:11:12.200 Venezuelan nationals
00:11:13.500 under the Aliens' Enemies Act,
00:11:16.280 including alleged members
00:11:18.060 of the Tren de Agua gang.
00:11:21.440 In other words,
00:11:22.100 we had a federal judge
00:11:23.720 in D.C.,
00:11:24.760 Judge Jed Boasberg,
00:11:26.680 the same judge,
00:11:27.500 by the way,
00:11:28.200 who allowed
00:11:29.020 the FISA courts
00:11:30.480 to illegally spy
00:11:31.740 on Donald Trump's
00:11:32.940 presidential campaign,
00:11:35.100 the same judge
00:11:35.840 who showed up
00:11:36.680 minus his robe
00:11:38.040 for Donald Trump's
00:11:39.180 indictment
00:11:39.940 by Special Counsel
00:11:41.940 Jack Mueller
00:11:42.920 until the court
00:11:44.660 decided that Mr.,
00:11:46.100 pardon me,
00:11:46.540 Jack Smith,
00:11:47.500 until the court decided
00:11:48.760 that Mr. Smith's appointment
00:11:50.020 was in itself
00:11:51.080 unconstitutional.
00:11:53.020 It's because Mr. Smith
00:11:54.100 had never been confirmed
00:11:55.900 by the U.S. Senate,
00:11:57.840 and there is no law
00:11:58.840 creating his position,
00:12:00.960 even though Merrick Garland
00:12:02.360 gave him sweeping
00:12:03.640 prosecutorial powers.
00:12:07.700 While the Supreme Court
00:12:09.480 ruled five to four
00:12:10.700 to grant the administration's
00:12:12.080 request to lift
00:12:13.420 the blatantly
00:12:13.980 unconstitutional stay,
00:12:16.720 Judge Amy Coney Barrett
00:12:19.440 ruled with the other
00:12:20.720 three liberal women
00:12:21.700 on the court
00:12:22.280 to block
00:12:23.360 President Trump's
00:12:24.220 deportation
00:12:25.140 of criminal illegal aliens.
00:12:27.360 Think how different
00:12:28.480 history would be
00:12:29.520 if President Donald Trump
00:12:31.140 had listened to me
00:12:32.020 when I suggested
00:12:32.880 that he not appoint
00:12:34.120 Amy Coney Barrett
00:12:36.000 to the court,
00:12:37.120 but instead appoint
00:12:38.320 Judge Andrew Napolitano.
00:12:41.940 Even Chief Justice Roberts
00:12:43.660 recognized the obvious
00:12:45.000 constitutionality
00:12:46.200 of President Trump's actions
00:12:47.460 and the incredible overreach
00:12:49.040 of the leftist activist
00:12:51.540 Judge Boesberg.
00:12:54.420 Big, big news
00:12:56.320 out of Texas.
00:12:58.000 Texas Attorney General
00:12:59.280 Ken Paxton
00:13:00.000 announced he's running
00:13:01.200 for the Senate
00:13:01.720 against incumbent
00:13:02.580 John Cornyn.
00:13:04.260 The Texas Attorney General
00:13:05.980 Paxton says
00:13:06.800 he's in the race,
00:13:07.860 often called
00:13:08.560 a Republican
00:13:10.000 in name only
00:13:10.760 or RINO.
00:13:11.740 Cornyn has held
00:13:13.100 the U.S. Senate seat
00:13:14.000 from Texas
00:13:14.540 since 2002
00:13:15.640 while Paxton
00:13:16.280 has been active
00:13:17.480 in Texas politics
00:13:18.540 since he ascended
00:13:19.380 to the Attorney General's
00:13:20.460 office in 2015.
00:13:23.160 In his announcement
00:13:24.200 Paxton said
00:13:25.100 the state needs
00:13:25.960 a new senator
00:13:26.740 to stand up
00:13:27.760 for Republican values.
00:13:30.460 He announced
00:13:31.180 he was running
00:13:31.720 for the U.S. Senate.
00:13:32.640 This is going to be
00:13:33.260 one of the hottest races
00:13:35.600 in the country.
00:13:36.540 We're going to be
00:13:37.040 following it here
00:13:37.840 extensively
00:13:38.420 in the Stone Zone.
00:13:40.720 Cornyn is running
00:13:41.980 for his fifth,
00:13:43.360 six-year term.
00:13:45.560 If ever there was
00:13:46.240 an argument
00:13:46.780 for term limits,
00:13:48.480 well, it's right there
00:13:49.380 with John Cornyn
00:13:50.280 in Texas.
00:13:51.500 If you're just tuning in,
00:13:52.740 this is the Stone Zone
00:13:54.240 on the Red Apple
00:13:56.600 Audio Networks.
00:13:58.100 And whatever you do,
00:13:58.880 don't touch that dial
00:14:00.020 because we'll be
00:14:01.040 right back.
00:14:01.820 This is the Stone Zone
00:14:04.020 with Roger Stone.
00:14:06.320 The Stone Zone.
00:14:13.360 If you're looking
00:14:15.200 to create,
00:14:16.020 grow,
00:14:16.380 and sustain
00:14:17.000 your wealth,
00:14:17.920 download and subscribe
00:14:18.760 to the Pain Points
00:14:19.940 of Wealth podcast
00:14:20.940 at BeBullish.com
00:14:22.780 with Bob,
00:14:23.680 Ryan,
00:14:24.160 and Chris Payne.
00:14:25.200 It's your podcast
00:14:26.020 for market insights,
00:14:27.200 money tips,
00:14:27.780 and real talk
00:14:28.700 on the economy.
00:14:29.480 Download and subscribe
00:14:30.780 at BeBullish.com
00:14:32.800 This is the Stone Zone
00:14:45.260 with Roger Stone.
00:14:46.740 They went after
00:14:47.520 a guy named Roger Stone
00:14:49.420 who's sitting in the office.
00:14:50.700 And I'll say this
00:14:51.360 in front of Roger,
00:14:52.140 he's no baby.
00:14:53.100 And right now,
00:14:53.760 he's cleaner than
00:14:54.600 anybody in this place.
00:14:56.700 Now,
00:14:57.280 they treated him
00:14:57.980 very unfairly.
00:14:58.940 Now,
00:14:59.960 get in the zone.
00:15:01.120 It's the Stone Zone.
00:15:03.140 Here's Roger Stone.
00:15:06.460 And we're back
00:15:07.900 in the zone.
00:15:08.820 Remember when
00:15:09.800 Governor Ronald Reagan
00:15:11.380 was running for president
00:15:12.520 and he told us
00:15:13.580 that machine control
00:15:15.120 of the Panama Canal
00:15:16.200 would be an egregious
00:15:17.480 mistake
00:15:17.900 to the United States?
00:15:19.700 Reagan said,
00:15:20.880 we built it,
00:15:22.680 we paid for it,
00:15:23.640 and it's ours.
00:15:25.280 Unfortunately,
00:15:26.280 President Gerald Ford
00:15:28.480 furthered the effort
00:15:30.560 to sell the Panama Canal
00:15:32.260 for the princely dollar,
00:15:34.820 although it was under
00:15:35.700 President Jimmy Carter
00:15:37.400 that the deal
00:15:38.100 was finally consummated.
00:15:39.580 Now,
00:15:40.240 Secretary of Defense
00:15:41.380 Pete Hegseth,
00:15:42.900 recognizing that
00:15:43.880 the Panama Canal
00:15:44.720 has fallen under
00:15:45.640 the control
00:15:46.240 of the communist Chinese,
00:15:48.660 said that the U.S.
00:15:49.960 will take back
00:15:50.560 the Panama Canal
00:15:51.500 from China's influence
00:15:52.760 as Washington
00:15:53.620 seeks to reassort
00:15:55.080 control over
00:15:55.920 this major trade route.
00:15:57.900 This is not just
00:15:58.660 a question
00:15:59.100 of commercial trade.
00:16:01.000 It is also
00:16:01.620 a security issue.
00:16:03.960 Otherwise,
00:16:04.500 of course,
00:16:05.540 military or commercial
00:16:07.460 vehicles would have
00:16:08.320 to go all the way
00:16:09.180 around the continent
00:16:10.800 to get to the other ocean.
00:16:13.480 The United States
00:16:14.200 of America
00:16:14.720 will not allow
00:16:15.680 communist China
00:16:16.520 or any other country
00:16:17.880 to threaten
00:16:18.460 the canal's operations
00:16:19.620 or integrity,
00:16:21.160 Hegseth said.
00:16:21.960 To this end,
00:16:22.580 the United States
00:16:23.200 and Panama
00:16:23.780 have done more
00:16:25.020 in recent weeks
00:16:25.880 to strengthen
00:16:26.440 our defense
00:16:27.100 and security
00:16:27.660 cooperation
00:16:28.300 than we've done
00:16:29.100 in decades.
00:16:31.040 China did not
00:16:32.100 build this canal.
00:16:33.660 China does not
00:16:34.580 operate this canal
00:16:35.720 and China will not
00:16:36.800 weaponize the canal.
00:16:38.560 Together,
00:16:39.140 we will take back
00:16:40.080 the canal
00:16:40.520 from China's influence,
00:16:42.160 said Secretary of Defense
00:16:43.720 Pete Hegseth.
00:16:45.700 Panama withdrew
00:16:47.020 from its 2017
00:16:48.340 Belt and Road
00:16:49.520 Initiative agreements
00:16:50.420 with the Chinese
00:16:51.140 earlier this year.
00:16:52.500 That was a signal
00:16:53.260 that Panama
00:16:53.860 had chosen sides
00:16:55.200 and they were
00:16:55.760 going with the
00:16:56.260 United States
00:16:56.920 and the Trump
00:16:58.060 administration
00:16:58.720 in this geopolitical
00:17:00.620 spat.
00:17:01.980 Today,
00:17:02.880 Hegseth,
00:17:03.760 who I think
00:17:05.840 is doing a great job,
00:17:07.480 will be said
00:17:08.240 that we will be
00:17:08.860 signing a joint
00:17:09.580 declaration
00:17:10.180 with the Minister
00:17:10.940 of Canal Affairs
00:17:13.080 on the security
00:17:13.980 and operations
00:17:14.520 of the Panama Canal,
00:17:15.500 which is a framework
00:17:16.640 for U.S. warships
00:17:18.440 and auxiliary ships
00:17:19.760 to sail first
00:17:20.560 and free
00:17:21.400 through the Panama Canal.
00:17:25.160 In the meantime,
00:17:26.920 the IRS
00:17:27.880 has decided
00:17:28.660 that they will
00:17:29.420 provide illegal
00:17:30.440 immigrants data
00:17:31.300 to ICE
00:17:32.100 under a new agreement.
00:17:34.040 The IRS
00:17:34.800 reached this historic
00:17:36.240 agreement
00:17:36.680 with the Department
00:17:37.380 of Homeland Security
00:17:38.240 to share
00:17:38.740 the personal information
00:17:39.760 of illegal immigrants
00:17:41.760 who have
00:17:42.380 filed tax returns.
00:17:46.760 So,
00:17:47.260 Donald Trump
00:17:47.940 is winning.
00:17:48.700 I, for one,
00:17:49.260 am not yet
00:17:49.940 tired of winning.
00:17:51.280 I think he's going
00:17:51.860 to keep on winning.
00:17:53.540 Coming up next,
00:17:54.520 I'll be joined
00:17:55.180 by Barry Habib.
00:17:56.660 He is the chief
00:17:57.500 executive officer
00:17:58.420 of MBS Highways.
00:18:00.620 He's an American
00:18:01.420 entrepreneur
00:18:02.020 and a frequent
00:18:03.740 source
00:18:05.480 in the media
00:18:06.720 on the economy,
00:18:07.660 but he's much
00:18:08.360 more than that.
00:18:09.800 He is widely
00:18:10.760 viewed as the
00:18:11.720 single most knowledgeable
00:18:12.780 person in the country
00:18:13.880 when it comes to
00:18:14.900 mortgages
00:18:15.680 and housing,
00:18:16.880 but in truth,
00:18:18.560 he is an economic
00:18:20.040 guru
00:18:20.900 and he's going
00:18:22.840 to tell us
00:18:23.580 what the president's
00:18:24.720 larger game plan is
00:18:26.180 and why he believes
00:18:27.400 that it's going
00:18:28.820 to work.
00:18:29.620 So,
00:18:29.980 if you're tuned in
00:18:30.780 to the Stone Zone
00:18:32.100 here on the
00:18:33.280 Red Apple Audio Networks,
00:18:35.300 you're going to want
00:18:35.920 to hear Barry Habib.
00:18:37.660 Whatever you do,
00:18:38.800 don't go away
00:18:39.660 because we'll be
00:18:40.360 all right.
00:18:40.820 This is the Stone Zone
00:19:03.040 with Roger Stone.
00:19:04.560 They went after a guy
00:19:05.700 named Roger Stone
00:19:07.240 who's sitting in the office.
00:19:08.500 And I'll say this
00:19:09.160 in front of Roger,
00:19:09.900 he's no baby.
00:19:10.900 And right now,
00:19:11.560 he's cleaner than
00:19:12.400 anybody in this place.
00:19:14.480 Now,
00:19:15.080 they treated him
00:19:15.780 very unfairly.
00:19:17.080 Now,
00:19:17.760 get him a zone.
00:19:18.920 It's the Stone Zone.
00:19:20.960 Here's Roger Stone.
00:19:24.580 And you're back
00:19:25.960 in the Stone Zone.
00:19:27.560 Joining us now,
00:19:28.620 Barry Habib.
00:19:29.620 He is the chief
00:19:30.440 executive officer
00:19:31.440 of MBS Highway.
00:19:33.600 He's an American
00:19:34.440 entrepreneur
00:19:35.240 and the frequent
00:19:36.580 media source
00:19:37.520 when it comes
00:19:38.060 to his expertise
00:19:38.840 on mortgages
00:19:39.800 and the housing market.
00:19:42.340 But I call him
00:19:44.040 an economic guru
00:19:45.480 because he is
00:19:47.200 so much more
00:19:48.240 than an expert
00:19:48.840 on housing and mortgage.
00:19:49.860 He is a finger
00:19:51.300 on the pulse
00:19:52.220 of the economy
00:19:53.120 and how it really works.
00:19:54.440 And what I love
00:19:55.460 about Barry
00:19:56.080 is he's able
00:19:56.800 to make complicated
00:19:57.800 things understandable
00:19:59.100 to the average citizen.
00:20:00.380 So,
00:20:01.280 Barry,
00:20:01.640 welcome back
00:20:02.620 into the Stone Zone.
00:20:04.540 Thanks, Roger.
00:20:05.460 It's always wonderful
00:20:06.460 to be with you.
00:20:07.960 So,
00:20:08.980 there's a lot
00:20:10.300 of disinformation
00:20:11.140 out there.
00:20:12.240 President Donald Trump
00:20:13.180 moving ahead
00:20:14.460 like the stalwart
00:20:16.200 that he is
00:20:16.900 on one of the prongs
00:20:18.780 of his plan
00:20:20.020 to revive
00:20:20.820 the American middle class
00:20:22.180 and return prosperity
00:20:23.440 and jobs
00:20:24.220 and opportunity
00:20:24.920 to the country.
00:20:26.160 President Trump
00:20:26.800 today announced
00:20:27.500 he is temporarily
00:20:28.200 lowering tariffs
00:20:29.240 on every nation
00:20:30.220 except for China
00:20:31.100 whose tariff
00:20:32.120 he is raising.
00:20:33.760 How do you expect
00:20:34.560 the American economy
00:20:35.420 will respond
00:20:36.160 to higher tariffs
00:20:37.440 on China?
00:20:39.540 Well,
00:20:40.160 if you go by
00:20:40.780 the stock market
00:20:41.660 as a gauge,
00:20:42.960 the stock market
00:20:44.720 really liked it.
00:20:45.660 We went from
00:20:46.220 a stock market
00:20:46.960 that was to the downside
00:20:48.400 to finishing the day
00:20:49.640 up on the Dow,
00:20:51.640 you know,
00:20:52.160 2,962 points.
00:20:54.660 That's one
00:20:55.940 of the biggest
00:20:56.620 turnarounds
00:20:58.000 and dollar
00:20:58.580 and point changes
00:20:59.920 that I can recall seeing.
00:21:01.500 So it's being
00:21:02.900 cheered on
00:21:03.560 by the marketplace,
00:21:05.420 I guess,
00:21:06.640 feeling that the economy
00:21:07.580 will do very well.
00:21:09.300 You know,
00:21:09.480 Roger,
00:21:09.820 these tariffs there,
00:21:10.920 we've been seeing
00:21:11.660 a lot of market movement
00:21:12.960 back and forth
00:21:13.800 as the headlines
00:21:14.540 come out.
00:21:15.860 It's creating
00:21:16.720 a lot of uncertainty.
00:21:18.300 And that's the main
00:21:19.040 thing right now
00:21:19.720 is just people
00:21:20.320 are uncertain
00:21:21.340 and the media
00:21:22.540 plays checkers
00:21:24.140 that they don't
00:21:24.800 play chess.
00:21:26.080 You know,
00:21:26.240 what I'd like to do
00:21:26.960 with you
00:21:27.240 is take a deeper
00:21:28.180 look at this stuff
00:21:29.300 and maybe
00:21:29.660 what could be
00:21:31.100 driving
00:21:31.600 some of the
00:21:33.160 reasons
00:21:35.980 and rationale
00:21:36.920 as to
00:21:37.780 how these tariffs
00:21:39.100 have been implemented.
00:21:40.360 Okay,
00:21:40.820 well,
00:21:41.740 so first off,
00:21:42.920 when we take a look
00:21:44.300 at tariffs,
00:21:45.260 why are we doing this?
00:21:46.640 I think
00:21:47.300 many people
00:21:48.220 will agree
00:21:48.800 that the path
00:21:50.180 we were on
00:21:50.760 was unsustainable.
00:21:52.140 to have the
00:21:53.280 large amount
00:21:54.080 of debts
00:21:54.620 that we have,
00:21:55.700 the large deficit
00:21:56.700 that we have
00:21:57.380 over $2 trillion
00:21:58.580 and $30 trillion
00:22:00.420 plus in debt
00:22:02.300 greater than
00:22:04.020 our GDP,
00:22:04.960 more than 100%
00:22:05.860 of GDP,
00:22:06.980 these things
00:22:07.560 don't lead
00:22:08.180 to good outcomes.
00:22:10.580 And we could
00:22:11.600 have made changes,
00:22:12.640 but those days
00:22:13.540 are gone.
00:22:14.500 The Biden
00:22:14.960 administration,
00:22:15.900 they put us
00:22:16.880 in a pretty big hole.
00:22:18.880 Now,
00:22:19.520 it's unfortunate
00:22:20.660 that we're here,
00:22:21.380 but the key
00:22:22.500 is how do we
00:22:23.300 fix it?
00:22:24.280 So what are
00:22:25.000 our options?
00:22:26.360 Option one,
00:22:27.740 can we cut
00:22:28.240 spending enough?
00:22:29.080 Well,
00:22:29.560 when you think
00:22:30.380 about the things
00:22:31.260 that are kind
00:22:32.180 of must-spends,
00:22:33.660 like you have
00:22:34.160 to spend
00:22:34.560 on military,
00:22:35.940 the interest
00:22:36.540 on the debt,
00:22:37.860 Social Security,
00:22:39.240 Medicare,
00:22:39.600 Medicaid,
00:22:40.020 when you take
00:22:40.880 that,
00:22:41.220 it's really
00:22:41.900 the lion's share
00:22:42.960 of what we spend.
00:22:44.680 The amount
00:22:45.100 that's left
00:22:45.560 for discretionary
00:22:46.440 spending,
00:22:47.260 while it is sizable,
00:22:49.280 it's just,
00:22:49.980 you can't cut
00:22:50.660 that much out
00:22:51.520 of it
00:22:51.820 to narrow
00:22:52.600 the gap.
00:22:53.560 So,
00:22:53.980 okay,
00:22:54.180 what else
00:22:54.520 can you do?
00:22:54.940 You can raise
00:22:55.440 taxes,
00:22:56.580 but the top
00:22:57.440 10% are
00:22:58.340 literally keeping
00:22:59.400 our economy
00:23:00.200 going right now.
00:23:01.220 They represent
00:23:01.760 about 80%
00:23:02.740 of economic
00:23:03.440 activity,
00:23:04.400 and therefore,
00:23:05.280 if you tax
00:23:06.100 them,
00:23:06.400 you will send
00:23:06.900 the economy
00:23:07.400 into a tailspin.
00:23:10.020 However,
00:23:11.120 it's,
00:23:12.020 even if you
00:23:12.400 took 100%
00:23:13.420 of what they
00:23:13.860 earned,
00:23:14.580 you still
00:23:15.320 wouldn't close
00:23:16.080 the gap
00:23:16.620 on what the
00:23:17.880 deficit is.
00:23:18.440 The deficit
00:23:18.900 is just
00:23:19.340 that big.
00:23:20.460 So,
00:23:20.780 what else
00:23:21.080 can you do?
00:23:22.400 Well,
00:23:22.920 a VAC tax,
00:23:23.800 like many people
00:23:24.520 have in other
00:23:25.240 countries,
00:23:26.020 if you've
00:23:26.340 traveled,
00:23:26.780 you've experienced
00:23:27.320 that called
00:23:28.180 value-added tax,
00:23:29.800 it's a tax
00:23:30.440 on consumption.
00:23:31.380 When you buy
00:23:31.860 something,
00:23:32.320 it's like a
00:23:32.760 sales tax,
00:23:33.420 but to a
00:23:33.820 greater extent.
00:23:35.540 Well,
00:23:36.440 we don't,
00:23:37.120 I don't think
00:23:37.700 at this point
00:23:38.200 in time
00:23:38.520 have the appetite
00:23:39.240 for it,
00:23:39.980 but this is a
00:23:40.640 form of that
00:23:41.520 on imported
00:23:42.400 goods.
00:23:43.340 So,
00:23:44.020 in trying
00:23:44.780 to do this,
00:23:45.360 you're trying
00:23:45.700 to raise
00:23:46.260 revenue and
00:23:47.040 take in
00:23:47.500 revenue to
00:23:48.280 reduce the
00:23:49.000 deficit and
00:23:50.260 you can do
00:23:50.660 it in a
00:23:51.020 sizable
00:23:51.440 manner without
00:23:52.460 having to
00:23:53.020 go to
00:23:53.260 extremes on
00:23:54.020 taxing people
00:23:55.040 to hurt the
00:23:55.520 economy or
00:23:56.700 cutting vital
00:23:58.000 things that
00:23:58.820 are things
00:24:00.620 that we depend
00:24:01.200 upon or
00:24:01.680 cutting the
00:24:02.080 military tooth
00:24:02.840 in.
00:24:03.100 So,
00:24:03.800 it's
00:24:04.360 understandable.
00:24:05.580 However,
00:24:05.920 it does have
00:24:06.320 a downside
00:24:06.940 because what
00:24:08.460 happens now
00:24:09.000 is imported
00:24:09.700 goods could
00:24:11.180 wind up costing
00:24:12.000 more,
00:24:12.260 but people
00:24:12.600 don't understand
00:24:13.640 how it works.
00:24:14.400 They see the
00:24:14.980 headlines,
00:24:15.340 they hear
00:24:16.040 all this
00:24:16.380 crap and
00:24:16.800 the negative
00:24:17.240 media bias
00:24:17.960 and anything
00:24:19.900 that Trump
00:24:20.340 does,
00:24:20.960 they want to
00:24:21.380 criticize.
00:24:21.840 So,
00:24:21.980 it's easy
00:24:22.320 to take
00:24:22.660 pot shots,
00:24:23.340 but let's
00:24:23.840 take a little
00:24:24.260 bit of a
00:24:24.640 dive where
00:24:25.160 people don't
00:24:25.720 understand it.
00:24:26.720 So,
00:24:27.020 who pays
00:24:27.560 this?
00:24:28.540 It is not
00:24:29.260 paid by the
00:24:29.800 country.
00:24:30.120 So,
00:24:30.240 if you put
00:24:30.500 an import
00:24:31.960 tax on
00:24:32.440 Vietnam,
00:24:33.700 Vietnam
00:24:33.940 doesn't pay
00:24:34.520 it.
00:24:35.200 So,
00:24:35.420 when they
00:24:35.680 send something
00:24:36.300 to us,
00:24:36.840 it is the
00:24:37.340 importer.
00:24:38.620 XYZ
00:24:39.060 company wants
00:24:39.900 to buy
00:24:40.320 these shirts
00:24:41.280 or clothing
00:24:41.900 or dress
00:24:42.480 or pants
00:24:43.120 from Vietnam.
00:24:44.080 They buy
00:24:44.680 it.
00:24:44.840 They pay
00:24:45.540 the tax.
00:24:46.060 It's like
00:24:46.340 when you go
00:24:46.780 to a store
00:24:47.260 and you pay
00:24:47.740 a sales tax.
00:24:48.680 So,
00:24:48.860 that's what
00:24:49.260 happens.
00:24:49.680 You make
00:24:50.060 that tax
00:24:50.660 payment from
00:24:51.500 the importer.
00:24:52.120 Now,
00:24:52.280 the importer
00:24:52.700 has a decision
00:24:53.300 to make.
00:24:54.040 That item
00:24:54.520 that used
00:24:54.860 to cost
00:24:55.240 $100,
00:24:56.480 now might
00:24:56.940 cost them,
00:24:57.400 let's say
00:24:57.620 it's a 20%
00:24:58.320 tax,
00:24:58.840 now costs
00:24:59.300 them $120.
00:24:59.860 do they
00:25:01.060 have the
00:25:01.580 power to
00:25:02.740 go ahead
00:25:03.320 and send
00:25:04.880 that $20
00:25:05.520 increase
00:25:06.400 on to
00:25:07.480 their wholesaler
00:25:08.580 or whomever
00:25:09.160 they are
00:25:09.500 selling it
00:25:10.120 to.
00:25:11.040 Maybe
00:25:11.360 they do,
00:25:12.260 but when
00:25:12.560 they do
00:25:12.860 now,
00:25:13.080 that wholesaler
00:25:13.760 makes a
00:25:14.440 profit on
00:25:15.040 top of
00:25:15.420 it to
00:25:15.640 the retail.
00:25:16.600 Maybe,
00:25:16.980 I don't
00:25:17.140 know,
00:25:17.320 that's
00:25:17.580 20%.
00:25:18.560 And then
00:25:19.360 on top
00:25:19.940 of that,
00:25:20.320 the retailer
00:25:20.900 might have
00:25:21.440 100%
00:25:22.180 markup
00:25:22.640 when they
00:25:23.040 sell it.
00:25:24.020 So,
00:25:24.640 the wholesaler's
00:25:25.700 profit,
00:25:26.280 the retailer's
00:25:27.020 profit are
00:25:28.040 not tariffed.
00:25:29.140 They don't
00:25:29.680 get tariffed.
00:25:30.560 So,
00:25:30.760 even if
00:25:31.060 there's a
00:25:31.360 20% tariff,
00:25:32.720 the consumer
00:25:33.400 may only
00:25:34.260 see something
00:25:34.880 closer to
00:25:35.500 5%.
00:25:36.220 And I'm not
00:25:36.640 saying 5%
00:25:37.400 is insignificant,
00:25:38.700 but it's
00:25:39.140 important to
00:25:39.720 understand this
00:25:41.100 as to how
00:25:41.740 much it
00:25:42.060 should be.
00:25:42.660 Is it
00:25:43.060 inflationary?
00:25:44.280 Only one
00:25:44.940 time.
00:25:45.500 It's not like
00:25:46.060 normal inflation,
00:25:47.080 which is
00:25:47.560 persistent.
00:25:48.140 It's a
00:25:48.400 one-time
00:25:48.880 price adjustment.
00:25:50.140 So,
00:25:50.380 now that we
00:25:50.700 understand this,
00:25:51.940 what's the
00:25:52.380 idea here?
00:25:53.540 We did an
00:25:54.240 analysis,
00:25:54.940 Roger,
00:25:55.180 I sent it
00:25:55.680 to you on
00:25:56.060 every country's
00:25:57.120 percentage of
00:25:58.620 GDP that
00:25:59.960 what they
00:26:00.520 export to
00:26:01.120 us.
00:26:01.360 And it is
00:26:01.880 very significant.
00:26:03.800 So,
00:26:04.080 that's why a
00:26:04.540 lot of
00:26:04.780 countries want
00:26:05.800 to come and
00:26:06.540 make deals
00:26:07.000 with us.
00:26:07.380 Now,
00:26:07.540 it takes a
00:26:08.040 little time
00:26:08.580 for them to
00:26:09.140 feel the
00:26:09.540 pain,
00:26:10.140 which is
00:26:10.820 why what
00:26:11.860 President Trump
00:26:12.460 is trying to
00:26:13.020 do is play
00:26:14.220 tests here and
00:26:15.960 not checkers.
00:26:17.200 Now,
00:26:17.400 China is a
00:26:18.180 different story.
00:26:19.320 And we are
00:26:20.220 seeing an
00:26:20.680 escalation in
00:26:21.500 trade war come
00:26:22.300 back and forth
00:26:22.960 between the
00:26:23.520 U.S.
00:26:23.820 and China.
00:26:24.700 The one
00:26:25.360 major card
00:26:26.300 that could
00:26:26.800 be played
00:26:27.340 by the
00:26:27.760 U.S.
00:26:28.120 is what
00:26:29.000 if you
00:26:29.280 delisted
00:26:30.000 Chinese stocks
00:26:31.140 and robbed
00:26:31.780 them of
00:26:32.380 the ability
00:26:33.160 to have
00:26:34.960 capital
00:26:35.600 for their
00:26:36.580 companies in
00:26:37.260 China that
00:26:38.180 comes from
00:26:38.640 the U.S.?
00:26:39.320 That could
00:26:39.860 be a major
00:26:40.580 card.
00:26:41.160 Scott
00:26:41.420 Besson,
00:26:42.400 when asked
00:26:43.060 about this,
00:26:43.880 said everything
00:26:44.720 is on the
00:26:45.680 table.
00:26:46.560 So,
00:26:46.920 that just
00:26:47.480 kind of gives
00:26:47.960 you an
00:26:48.260 outline of
00:26:49.200 where we
00:26:49.640 are and
00:26:50.280 what the
00:26:50.580 mindset is.
00:26:51.320 And obviously,
00:26:52.460 undertone of
00:26:53.080 this is,
00:26:53.560 of course,
00:26:53.800 we want a
00:26:54.240 level and
00:26:54.820 more fair
00:26:55.900 playing field
00:26:56.920 of trade
00:26:57.620 because President
00:26:59.080 Trump,
00:26:59.520 and rightfully
00:27:00.040 so,
00:27:00.940 feels like
00:27:01.380 there has
00:27:01.940 not been
00:27:02.540 fairness in
00:27:03.840 trade.
00:27:04.480 So,
00:27:04.960 you could
00:27:05.360 say,
00:27:05.680 hey,
00:27:05.840 look,
00:27:06.020 I don't
00:27:06.240 want to
00:27:06.460 rock the
00:27:06.860 boat.
00:27:07.600 Even though
00:27:08.020 I'm getting
00:27:08.340 screwed here,
00:27:09.580 I don't want
00:27:10.180 to go through
00:27:10.580 any pain.
00:27:11.340 But then you're
00:27:11.840 on that
00:27:12.100 unsustainable
00:27:12.800 path.
00:27:13.300 Or you could
00:27:13.600 say,
00:27:13.880 let's make
00:27:14.140 this more
00:27:14.500 fair.
00:27:15.180 Let's raise
00:27:15.640 some revenue.
00:27:16.720 It means we
00:27:17.200 go under a
00:27:17.680 little bit of
00:27:18.080 pain here
00:27:18.660 initially,
00:27:19.380 but longer
00:27:20.240 term it's
00:27:20.740 fixed.
00:27:23.080 It just
00:27:23.440 gets worse
00:27:24.040 and then
00:27:24.400 you could
00:27:24.620 have a
00:27:24.860 crisis.
00:27:26.220 I watched
00:27:27.360 Secretary
00:27:28.480 Besant did
00:27:29.540 a press
00:27:30.100 stand-up
00:27:30.560 outside the
00:27:31.360 White House
00:27:31.820 not long
00:27:33.220 ago,
00:27:33.520 a couple
00:27:33.740 hours ago.
00:27:34.520 I am
00:27:35.080 really in
00:27:37.240 awe at
00:27:38.020 this guy's
00:27:39.000 skills as
00:27:39.900 a communicator.
00:27:41.020 I think he
00:27:41.560 is a very
00:27:42.920 reassuring
00:27:44.000 voice of
00:27:44.980 calm.
00:27:46.140 I mean,
00:27:46.420 I know him
00:27:47.280 and I know
00:27:47.580 him to be
00:27:47.960 an outside
00:27:48.380 the box
00:27:48.980 thinker who
00:27:49.760 is completely
00:27:50.360 loyal to the
00:27:51.160 president and
00:27:51.840 completely
00:27:52.220 committed
00:27:52.720 to this
00:27:53.720 plan.
00:27:54.360 The New
00:27:54.660 Republic ran
00:27:56.220 a totally
00:27:56.900 baseless article
00:27:57.800 the other
00:27:58.160 day saying
00:27:58.700 he was so
00:27:59.300 upset by
00:27:59.840 the president's
00:28:00.500 economic plan
00:28:01.380 that he was
00:28:02.120 thinking of
00:28:02.540 resigning.
00:28:03.340 I spoke to
00:28:04.020 Besant and
00:28:04.380 myself Sunday
00:28:05.040 night,
00:28:06.260 whole cloth,
00:28:07.140 nothing to it
00:28:07.780 whatsoever.
00:28:08.540 He is deeply
00:28:09.060 committed to
00:28:09.560 the president's
00:28:10.100 plan and he
00:28:11.140 gave me a
00:28:11.560 number of
00:28:11.820 reasons why
00:28:12.380 he thought it
00:28:14.560 would work in
00:28:15.680 the long
00:28:16.080 term.
00:28:16.640 But you're
00:28:17.260 right,
00:28:18.020 Trump is
00:28:18.740 playing the
00:28:19.720 long game.
00:28:20.480 Now, I
00:28:20.780 also saw
00:28:21.680 Secretary of
00:28:22.280 Commerce
00:28:22.600 Lutnick on
00:28:23.220 the Sunday
00:28:23.620 shows last
00:28:24.220 Sunday.
00:28:25.280 My takeaway
00:28:26.140 was not
00:28:27.180 candidly as
00:28:28.120 positive.
00:28:29.620 He was
00:28:30.480 entertaining,
00:28:31.340 but he
00:28:32.240 didn't have
00:28:32.840 the reassuring
00:28:33.980 calm and
00:28:35.620 confidence.
00:28:37.020 And actually,
00:28:38.560 Besson's more
00:28:39.180 like you,
00:28:39.760 Barry, he
00:28:40.180 takes complicated
00:28:41.420 issues and
00:28:42.680 he makes them
00:28:43.460 understandable to
00:28:44.680 the average
00:28:45.240 consumer and
00:28:46.060 the average
00:28:46.400 American.
00:28:46.820 Besson's more
00:28:48.760 important.
00:28:49.160 That's a
00:28:49.760 very important
00:28:51.280 key and I
00:28:52.460 had the
00:28:52.800 pleasure of
00:28:53.480 spending about
00:28:54.060 15 minutes
00:28:54.780 one-on-one
00:28:55.500 with Scott
00:28:56.340 Besson in
00:28:57.720 no small
00:28:58.260 part thanks to
00:28:59.420 the fact that
00:29:00.380 he knows that
00:29:01.640 you and I
00:29:02.080 have a
00:29:02.400 friendship and
00:29:03.520 his high
00:29:04.260 regard and
00:29:04.780 respect for
00:29:05.320 you allowed
00:29:06.420 him to give
00:29:06.940 me the time
00:29:07.600 to spend
00:29:08.340 with him.
00:29:08.760 I found
00:29:09.160 him to be
00:29:09.780 absolutely
00:29:10.440 brilliant and
00:29:12.080 the best
00:29:12.740 treasury
00:29:13.160 secretary that
00:29:14.720 I have ever
00:29:15.620 seen in the
00:29:16.360 United States
00:29:17.060 that has an
00:29:18.080 understanding of
00:29:18.780 the housing
00:29:19.180 market, the
00:29:19.780 mortgage market,
00:29:21.020 the spreads
00:29:21.480 between 30-year
00:29:22.640 fixed-rate
00:29:22.980 mortgages and
00:29:23.640 treasuries, how
00:29:25.180 to handle the
00:29:25.900 treasury market
00:29:26.600 issuance, which
00:29:27.580 is very important.
00:29:28.780 He has a desire
00:29:29.440 to bring long-term
00:29:30.320 yields down and
00:29:31.580 I think he'll be
00:29:32.200 very, very
00:29:32.700 successful in
00:29:33.580 doing so.
00:29:34.720 I was in
00:29:37.180 awe at his
00:29:38.180 vast knowledge
00:29:39.680 of not just
00:29:40.840 the things that
00:29:41.320 normal treasury
00:29:41.920 secretaries are
00:29:42.720 looking at, but
00:29:43.940 even in other
00:29:46.020 areas.
00:29:46.740 The guy, his
00:29:47.660 history is one
00:29:48.860 of brilliance as
00:29:49.740 a fund manager.
00:29:51.560 He worked with
00:29:52.260 Stanley Drunkenmiller.
00:29:54.420 He is someone
00:29:56.060 who is extremely,
00:29:59.140 extremely experienced
00:30:00.680 and knowledgeable
00:30:01.400 and not just
00:30:02.940 having experience
00:30:03.680 but having
00:30:04.060 successful
00:30:04.560 experience.
00:30:05.760 You know, I had
00:30:08.140 a conversation
00:30:08.780 with him months
00:30:09.760 ago about the
00:30:10.960 housing market
00:30:11.660 and the fact
00:30:12.360 that the lack
00:30:13.600 of affordable
00:30:14.120 housing is a
00:30:15.160 gigantic problem
00:30:16.880 in this country.
00:30:17.980 Robert F.
00:30:18.480 Kennedy Jr., I
00:30:19.320 think, serves
00:30:20.040 credit for really
00:30:20.900 raising this
00:30:22.500 during the most
00:30:23.420 recent presidential
00:30:24.300 campaign and I
00:30:25.880 hadn't realized it.
00:30:28.000 The extent to which
00:30:29.120 it's a problem, it's
00:30:29.860 not just a problem
00:30:30.600 in any one section
00:30:31.600 of the country,
00:30:32.580 it's a problem
00:30:33.320 across the country.
00:30:35.020 I think that Bill
00:30:36.460 Pulte, who the
00:30:37.660 president appointed
00:30:38.580 to the Federal
00:30:39.780 Home Finance
00:30:41.100 Administration,
00:30:42.160 like Besson,
00:30:43.120 another superstar,
00:30:44.400 a guy who comes
00:30:45.240 from the housing
00:30:45.940 industry, Pulte Homes,
00:30:47.580 people may be
00:30:48.160 familiar with the
00:30:48.780 name, one of the
00:30:49.280 largest home
00:30:49.840 builders in the
00:30:50.360 country.
00:30:51.220 Trump has an
00:30:52.380 all-star team
00:30:53.600 around him,
00:30:55.020 particularly when it
00:30:56.380 comes to the
00:30:57.280 economy.
00:30:57.840 Now, the stock
00:30:58.440 market shot up
00:30:59.240 today, as you
00:31:00.300 say, to a record
00:31:01.640 high or a record
00:31:02.760 gain, do you
00:31:04.900 think, this may
00:31:06.760 be an impossible
00:31:07.300 question to answer,
00:31:08.560 what do you expect
00:31:09.060 the stock market
00:31:09.720 to do tomorrow?
00:31:12.300 I'm a little leery
00:31:13.160 that these gains
00:31:14.040 continue.
00:31:14.620 I think there
00:31:15.020 could be some
00:31:15.600 profit-taking that
00:31:16.560 happens.
00:31:17.120 You know, the last
00:31:18.120 couple of days, I
00:31:18.920 know you get our
00:31:19.520 commentary, we had
00:31:20.900 thought that the
00:31:22.020 stock market would
00:31:22.800 have a turning point
00:31:23.540 two days ago.
00:31:24.360 It did, and
00:31:24.760 yesterday, with the
00:31:26.980 stock market up, I
00:31:28.000 did not feel it
00:31:28.780 would hold its
00:31:29.260 gains.
00:31:29.580 It was up 1,500
00:31:30.480 points, and our
00:31:31.200 commentary was that
00:31:32.060 it would close to
00:31:32.720 the downside, and
00:31:33.960 it did.
00:31:35.020 And then this
00:31:35.420 morning, quite
00:31:35.960 honestly, what I
00:31:36.660 said is, I have
00:31:37.440 no freaking clue
00:31:38.180 what it's going to
00:31:38.640 do today, because
00:31:40.320 there's just a lot
00:31:41.920 of uncertainty out
00:31:43.120 there, and we
00:31:44.080 don't know which
00:31:44.980 way the headlines
00:31:45.640 are going to go.
00:31:46.620 But I think the
00:31:47.480 stock market at
00:31:48.560 these levels had
00:31:49.760 such a strong
00:31:50.920 close that it's
00:31:53.180 quite possible that
00:31:54.360 in the morning we
00:31:55.000 see it open, but
00:31:56.240 I don't know if
00:31:57.240 there is conviction,
00:31:58.920 Roger, that it's
00:31:59.580 for this to
00:32:00.320 continue throughout
00:32:01.680 the day.
00:32:02.820 I'm looking at my
00:32:04.180 charts here.
00:32:05.100 I think that we
00:32:05.680 could see a little
00:32:06.520 bit more of a move
00:32:07.540 up in the morning,
00:32:08.580 but it would not
00:32:09.720 surprise me to see
00:32:10.800 some of those gains
00:32:11.660 relinquished.
00:32:12.320 And then you have a
00:32:13.480 lot of trading that
00:32:14.220 says, okay, well,
00:32:14.960 before we see another
00:32:15.880 down day, I want to
00:32:17.280 get out.
00:32:17.620 And that's why you've
00:32:18.100 seen so much
00:32:18.820 momentum.
00:32:19.380 It happens so
00:32:20.140 quickly, because now
00:32:21.040 with all the program
00:32:21.780 trading, as soon as
00:32:23.100 you start to see some
00:32:23.900 profits gone, then it
00:32:25.180 triggers selling and
00:32:25.980 selling and selling
00:32:26.560 gets more selling.
00:32:27.600 So I would not be
00:32:29.020 surprised to see an
00:32:30.520 upside open tomorrow,
00:32:31.780 but I think that
00:32:33.600 there's a reasonably
00:32:34.800 good chance that a
00:32:36.480 lot of experienced
00:32:37.500 traders will use that
00:32:38.760 as an exit period and
00:32:40.600 get out while there's
00:32:41.780 still so much
00:32:42.400 uncertainty.
00:32:42.900 And therefore, why
00:32:44.940 don't they hold the
00:32:45.540 gains?
00:32:46.100 In my book published
00:32:48.100 several years ago,
00:32:49.280 Stone's Rules, with
00:32:50.900 a forward by my good
00:32:52.080 friend Tucker Carlson,
00:32:53.100 I had two rules.
00:32:54.420 One was what goes up
00:32:55.860 must come down.
00:32:57.180 The other one, you'll
00:32:58.240 like even more.
00:32:59.100 Whoever talks first
00:33:00.120 loses.
00:33:01.500 And so it is, it's
00:33:03.200 going to be interesting
00:33:03.680 to see what happens.
00:33:04.740 What do you expect the
00:33:05.540 European Union to do?
00:33:08.640 Will they make a
00:33:09.400 substantial concession
00:33:10.360 to the United States in
00:33:11.300 light of the president's
00:33:12.300 strategy of isolating
00:33:13.660 China, or is the EU
00:33:15.240 going to work with
00:33:16.080 China against American
00:33:17.860 interests?
00:33:18.380 We have about two
00:33:18.960 minutes here, and then
00:33:20.100 we'll go to commercial
00:33:20.900 break and return.
00:33:22.380 Well, as you know, the
00:33:23.420 EU had just today
00:33:26.120 voted to ratify their
00:33:28.780 plan to come up with
00:33:30.540 a plan which would
00:33:31.480 have some retaliatory
00:33:33.940 tariffs against the U.S.
00:33:35.500 But in light of what
00:33:37.600 happened today, where we
00:33:38.720 dropped it to just the
00:33:39.680 10 percent baseline, I
00:33:41.340 would expect Europe
00:33:42.200 to back off.
00:33:43.000 I don't think Europe
00:33:43.680 wants to be in a
00:33:46.080 situation where they're
00:33:47.200 at odds with the U.S.
00:33:49.520 Whether or not they
00:33:50.480 trust the U.S.
00:33:51.960 completely or not, I
00:33:53.040 think they trust the U.S.
00:33:53.980 more than they trust
00:33:54.960 China.
00:33:56.460 And therefore, I don't
00:33:57.900 see them trying to
00:33:59.920 form alliances with
00:34:01.060 China against the U.S.
00:34:02.720 I think that this
00:34:04.060 move by President Trump
00:34:06.040 today to reduce the
00:34:07.120 tariffs to the 10 percent
00:34:07.940 baseline will bring the
00:34:10.060 European Union closer to
00:34:11.300 trying to cut deals with
00:34:12.380 us in fairness rather than
00:34:13.600 move towards China.
00:34:14.360 folks, if you're just
00:34:16.260 tuning in, this is the
00:34:18.100 Stone Zone on the Red
00:34:19.520 Apple Audio Networks, and
00:34:21.320 we're talking to Barry
00:34:23.100 Habib.
00:34:24.040 I call him an economic
00:34:25.700 guru because to say that
00:34:28.160 he's just an expert on
00:34:29.360 housings and mortgage would
00:34:30.640 greatly understate his
00:34:32.140 knowledge and his wisdom.
00:34:33.660 We're glad to have him
00:34:34.600 because, well, as I think
00:34:36.520 it was James Carville, my
00:34:38.020 Democrat counterpart, once
00:34:39.540 said, it's the economy,
00:34:41.140 stupid, and indeed it is
00:34:43.080 the economy, here's what
00:34:45.240 we know.
00:34:45.720 What we were doing under
00:34:46.620 Joe Biden and Barack
00:34:48.100 Obama was not working,
00:34:51.120 did not work.
00:34:52.240 We reversed that trend
00:34:53.260 when Trump was president
00:34:54.160 in his first term, then
00:34:55.640 Biden returned us to the
00:34:57.120 policies of Obama and the
00:34:58.800 economy suffered,
00:35:00.120 particularly the middle
00:35:01.420 class working family and
00:35:03.280 taxpayers.
00:35:04.400 Donald Trump has changed
00:35:05.720 the political dynamic.
00:35:07.580 The Republican Party is now
00:35:08.700 the party.
00:35:09.540 of working people, of the
00:35:11.280 middle class, no longer
00:35:12.400 the party of the elites,
00:35:13.520 no longer the party of
00:35:14.440 Wall Street, no longer
00:35:15.700 the party of the
00:35:16.440 millionaires and
00:35:17.240 billionaires.
00:35:17.980 We'll be right back with
00:35:19.240 more of Barry Habib, so
00:35:20.700 whatever you do, don't
00:35:21.940 touch that dial.
00:35:23.100 This is the Stone Zone
00:35:24.860 with Roger Stone.
00:35:39.540 This is the Stone Zone.
00:35:47.700 Now, get in the zone.
00:35:49.900 It's the Stone Zone.
00:35:51.940 Here's Roger Stone.
00:35:53.700 And we're back in the Stone Zone
00:35:58.620 here on the Red Apple Audio
00:36:00.760 Networks.
00:36:01.440 We're talking to Barry Habib,
00:36:04.160 the chief executive officer of
00:36:06.040 MBS Highway.
00:36:07.200 We just call him economic guru.
00:36:08.720 Here's a question for you,
00:36:10.180 Barry, just a little off topic.
00:36:11.840 But how do you feel about
00:36:14.800 acquiring precious metals like
00:36:16.760 gold and silver in a tumultuous
00:36:19.900 economic time like this?
00:36:21.980 Roger, we've talked about
00:36:23.860 this several times.
00:36:25.040 And, you know, back about
00:36:25.920 $800 in price ago in gold,
00:36:29.820 you know, bullish and every
00:36:30.720 time I've been giving you the
00:36:31.700 same thing.
00:36:32.160 And here we are at these
00:36:34.280 extraordinarily higher levels.
00:36:35.980 So our thoughts on gold, I
00:36:38.540 know you agree, have been on
00:36:40.160 and people that have
00:36:41.100 heeded that advice have done
00:36:42.620 exceedingly well in there.
00:36:44.800 I do think that in times of
00:36:46.680 uncertainty, gold is a place
00:36:48.700 that you can certainly hide.
00:36:49.980 Because here's here's what
00:36:51.960 would happen.
00:36:52.980 The way the mechanics of the
00:36:54.680 market, I just want to try and
00:36:56.140 explain this to people.
00:36:57.860 So we had some unusual
00:36:59.340 circumstances.
00:37:00.060 You saw stock prices decline,
00:37:03.240 you know, this morning as
00:37:04.840 well.
00:37:05.280 You saw at the same time,
00:37:07.720 trade, which means bond prices
00:37:09.280 were selling off, stocks were
00:37:10.820 selling off, and our dollar was
00:37:12.320 weakening.
00:37:12.900 So what was happening?
00:37:14.160 What did people decide to do?
00:37:15.920 They didn't put it in Bitcoin.
00:37:17.620 Where did they go?
00:37:18.260 They went to probably some in
00:37:20.160 cash, but gold was soaring.
00:37:23.220 So a lot of people put their
00:37:25.460 money in gold.
00:37:27.060 So during times of volatility
00:37:28.700 and uncertainty, gold seems to
00:37:30.600 be the place to be.
00:37:32.360 And it was very interesting
00:37:34.000 because as stocks rallied and
00:37:36.460 came back and the bond market
00:37:38.160 came back, so yields declines,
00:37:39.760 so people bought bonds, they
00:37:41.320 really bought stocks.
00:37:42.780 But what did they do?
00:37:44.540 They did not sell gold to do so.
00:37:47.100 They took it out of cash, which
00:37:48.780 means that they said, hey, gold
00:37:50.620 is a place I'm hiding if things
00:37:52.840 get bad.
00:37:53.800 But even though that's money I'm
00:37:55.280 hiding, I'm not parking it
00:37:57.040 there.
00:37:57.420 I'm keeping it there because I'm
00:37:59.000 comfortable with gold.
00:38:00.160 All this to try and answer your
00:38:01.660 question and say, I think gold
00:38:03.240 has more room to run, Roger,
00:38:05.000 because I don't think that this
00:38:06.240 move up in gold is temporary
00:38:07.820 because if it were, gold would
00:38:09.920 have lost its gains when the stock
00:38:11.860 market rallied back and people
00:38:13.180 said, OK, I'm going to buy stocks
00:38:14.700 with both fists, let me sell gold
00:38:16.820 to do so.
00:38:17.480 No, they took it out of cash or
00:38:18.800 they took it on margin.
00:38:19.960 And that's why.
00:38:21.300 Now, by the way, Roger, here's
00:38:22.320 another thing that's very
00:38:23.340 important about answering your
00:38:24.380 question on gold.
00:38:25.700 When the stock market takes a
00:38:27.420 sudden drop like it did, it's not
00:38:29.280 that it declined, but that it
00:38:30.900 declined suddenly.
00:38:32.620 That triggers margin calls.
00:38:34.740 So broker dealers say, hey, you
00:38:36.180 have this on margin.
00:38:37.140 You've now come underneath your
00:38:38.360 margin requirements.
00:38:39.520 You've got to pay up and you've
00:38:40.500 got to pay up now.
00:38:41.760 So how do you raise cash?
00:38:43.360 One of the ways that they would
00:38:44.780 do it is by selling other
00:38:46.180 assets.
00:38:46.700 The old saying is you don't
00:38:48.160 sell what you want.
00:38:49.740 You sell what you can.
00:38:51.280 And what you can sell are things
00:38:52.560 that are value like from the
00:38:53.620 bond market or gold.
00:38:55.240 They did not choose to sell
00:38:57.840 gold.
00:38:58.640 They sold bonds.
00:38:59.980 They took it out in cash.
00:39:01.420 So what this tells you is that
00:39:03.140 gold is someplace where people
00:39:04.720 are investing money and they're
00:39:06.000 not letting it go.
00:39:07.400 So that's my my
00:39:09.120 reasoning as to why I think
00:39:10.820 gold will continue to do well
00:39:12.580 for us, Roger.
00:39:13.680 All right.
00:39:14.060 I appreciate it.
00:39:14.840 I think we are unfortunately
00:39:16.040 out of time.
00:39:16.820 I want to thank my guest,
00:39:18.440 Barry Habib, the chief
00:39:20.900 executive officer of MBS
00:39:22.380 Highway.
00:39:22.900 But we just call him the guru,
00:39:24.840 Barry, the economic guru.
00:39:27.000 Barry, thank you so much for
00:39:28.160 joining us today in the Stone
00:39:29.300 Zone.
00:39:29.620 And thanks.
00:39:30.160 And folks, until we meet
00:39:31.240 again, God bless you
00:39:32.820 and Godspeed.