Latest / Stampede of Truth / The Larry Kudlow Show - The Larry Kudlow Show: Money, Politics, And Historical Importance

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The Larry Kudlow Show - The Larry Kudlow Show: Money, Politics, And Historical Importance · Stampede of Truth

• 0:08
  Speaker 1: It's the Larry Kudlow Show.
• 0:10
  Speaker 2: Free market prosperity starts here.
• 0:13
  Speaker 1: Now, here's Larry Kudlow.
• 0:15
  Speaker 3: Hello, folks. I'm Larry Kudlow. Great to be with you.
• 0:18
  Speaker 3: This is the Larry Kudlow Show. We're going to need
• 0:21
  Speaker 3: a new cable on this because it's going in and out.
• 0:23
  Speaker 3: All right. So why don't you take care of that
• 0:25
  Speaker 3: technical issue while I'm trying to talk. Anyway, great to
• 0:30
  Speaker 3: be back with you. Our sinus infection is improving, so
• 0:35
  Speaker 3: I'm alive. I was back on the air on Fox Business. Finally,
• 0:43
  Speaker 3: last Wednesday, Thursday, Friday, by the way. Catch us Sunday
• 0:48
  Speaker 3: morning futures. I'm pinch hitting through the election season. Sunday
• 0:53
  Speaker 3: morning futures, 10 to 11 a.m. Sunday on Fox News. Here,
• 0:59
  Speaker 3: by the way, you can live stream us on the
• 1:03
  Speaker 3: Internet if that works for you. Live stream us on
• 1:06
  Speaker 3: the Internet, LarryKudlowShow.com, LarryKudlowShow.com. You can catch us all around
• 1:12
  Speaker 3: the world throughout the solar system, including the Milky Way.
• 1:17
  Speaker 3: And finally, last promo, Fox Business, fabulous Fox Business. The
• 1:23
  Speaker 3: name of the show is Kudlow, and we are 4
• 1:26
  Speaker 3: to 5 p.m. Monday through Friday. So the Sunday morning
• 1:31
  Speaker 3: futures are 10 a.m. Sunday, but the Fox Business Show
• 1:35
  Speaker 3: is 4 to 5 p.m. every day, Monday through Friday.
• 1:39
  Speaker 3: Fabulous Fox Business. So we're just about two weeks out
• 1:43
  Speaker 3: from the election, and the tide is turning toward the GOP.
• 1:50
  Speaker 3: The tide is turning toward the GOP. Interestingly, the polls
• 1:55
  Speaker 3: are narrowing. You've got toss-ups throughout the Senate I've got
• 2:01
  Speaker 3: Speaker Mike Johnson coming on the show tomorrow. Ask him
• 2:06
  Speaker 3: about the House, but I think that's tightening, too. One
• 2:10
  Speaker 3: very important point is enthusiasm is improving a lot. The
• 2:18
  Speaker 3: Echelon poll shows Republican enthusiasm is now up about 10 points.
• 2:25
  Speaker 3: This from my friend Ben Shapiro of The Daily Wire.
• 2:30
  Speaker 3: It's actually spiked in several key states. Polls are consistently
• 2:34
  Speaker 3: overestimating Democratic performance. That is for sure. The echelon poll
• 2:38
  Speaker 3: is a pretty good poll as far as polls go. Anyway,
• 2:42
  Speaker 3: it looks like the GOP enthusiasm has gone from about
• 2:46
  Speaker 3: 55% to 65%. Democrats are about 70%. So that's closing.
• 2:50
  Speaker 3: And it's very interesting. Even the New York Times is
• 2:55
  Speaker 3: worried that the Democratic blue wave not going to pan out.
• 3:02
  Speaker 3: It's not going to pan out. Let's see. We are
• 3:05
  Speaker 3: 17 days away. Call it a fortnight. And so they
• 3:10
  Speaker 3: ran a piece yesterday. Democrats worry that a few Senate
• 3:16
  Speaker 3: races in bluer states aren't slam dunks. Well, yeah, no kidding. Now,
• 3:23
  Speaker 3: they cited Abdul El-Sayed in Michigan, Troy Jackson in Maine.
• 3:28
  Speaker 3: Peggy Flanagan in Minnesota. Every one of those is going
• 3:31
  Speaker 3: to lose. Michelle Tafoya is going to win in Minnesota.
• 3:39
  Speaker 3: Mike Rogers is going to win in Michigan. And Susan
• 3:41
  Speaker 3: Collins is going to win in Maine. Boom, boom, boom.
• 3:44
  Speaker 3: I'm just telling you. Even the polls are showing that
• 3:48
  Speaker 3: they're now ahead. But you've got to add in Tallarico
• 3:53
  Speaker 3: in Texas. He's running against oil and gas drilling and
• 3:57
  Speaker 3: fracking He's running against cattle or beef. Of course, he
• 4:02
  Speaker 3: has his gender confusion regarding the Lord and the Bible.
• 4:07
  Speaker 4: Okay.
• 4:11
  Speaker 3: He's a loser. And another loser is going to be
• 4:14
  Speaker 3: this Mary Peltola in Alaska who's going to lose to
• 4:18
  Speaker 3: Dan Sullivan, the incumbent Republican senator. That is the Dan Sullivan,
• 4:23
  Speaker 3: not the phony Dan Sullivan. I know Senator Sullivan very well.
• 4:28
  Speaker 3: He's a very smart guy, one of the smartest people
• 4:30
  Speaker 3: in the Senate. He's going to beat it. Listen, this
• 4:33
  Speaker 3: Peltola woman at the debate was reading off of index
• 4:38
  Speaker 3: cards in full view. She couldn't answer the question. She
• 4:42
  Speaker 3: had to pull up an index card. Now, either A,
• 4:48
  Speaker 3: she doesn't know the issues, or B, she got fed
• 4:52
  Speaker 3: the questions ahead of time. Or C, both, I don't know.
• 4:57
  Speaker 3: But she looked like a damn fool. And Dan Sullivan,
• 5:01
  Speaker 3: as I say, is one of the smartest guys. He
• 5:03
  Speaker 3: knows this very well. And also in Alaska, if you
• 5:10
  Speaker 3: read Kim Strassel's Wall Street Journal column yesterday, Alaska considers
• 5:14
  Speaker 3: economic suicide. So what Kim Strassel, dear friend, brilliant woman, she.
• 5:25
  Speaker 3: Chronicles how during the Biden years, when Peltola was a congresswoman, Democrats,
• 5:32
  Speaker 3: I mean, listen to this. This is Alaska, okay? Democrats
• 5:36
  Speaker 3: banned oil and gas leases. Also, mining projects, timber harvests,
• 5:42
  Speaker 3: stopped new roads, cut back on defense, no oil and
• 5:46
  Speaker 3: gas leases offshore, no National Petroleum Reserve, no LNG money,
• 5:53
  Speaker 3: No oil or gas leases in the Arctic National Wildlife Refuge. ANWR.
• 6:00
  Speaker 3: This is what she did. Congresswoman from Alaska. Plus chronic absenteeism.
• 6:08
  Speaker 3: And of course, don't forget that Biden's killed the Keystone
• 6:11
  Speaker 3: Pipeline in the Midwest, coming down from Alberta, Canada. I mean,
• 6:19
  Speaker 3: oil and gas.
• 6:21
  Speaker 3: Is Alaska's cash crop. And she ran against it. And incidentally,
• 6:27
  Speaker 3: you know, I can generalize Democrats who are talking about
• 6:31
  Speaker 3: affordability and four and a half dollar gasoline and six
• 6:37
  Speaker 3: and a half dollar diesel. I understand those are high prices.
• 6:40
  Speaker 3: I get that. And I know there's a certain amount
• 6:42
  Speaker 3: of pain over it. I mean, I hear it all
• 6:44
  Speaker 3: the time. I understand. But first, let me say I
• 6:49
  Speaker 3: do believe in Mr. Trump's crusade to destroy the Iranian
• 6:56
  Speaker 3: Islamic revolutionary regime and stop them from any nuclear weapons.
• 7:03
  Speaker 3: And that has a lot more support than many of
• 7:06
  Speaker 3: these polls are letting on. But the other point I'll
• 7:11
  Speaker 3: make is if Democrats win, they'll go back to radical
• 7:14
  Speaker 3: climate change, Green New Deal, no fossil fuels, They'll end, heck,
• 7:21
  Speaker 3: like California taxing gasoline where the price is six and
• 7:25
  Speaker 3: a half bucks a gallon compared to four and a
• 7:27
  Speaker 3: half bucks nationwide. And the Democrats will work to ban
• 7:33
  Speaker 3: all fossil fuels and gasoline powered cars. So who are
• 7:36
  Speaker 3: we kidding here? Affordability nonsense. They hate gasoline and they'll
• 7:41
  Speaker 3: do everything they can to stop it. Anyway, back to
• 7:47
  Speaker 3: the Alaska story. Sullivan's going to win. He's going to win.
• 7:52
  Speaker 3: Tafoya's going to win in Minnesota. Paxson's going to win
• 7:57
  Speaker 3: in Texas.
• 7:59
  Speaker 6: A.G.
• 7:59
  Speaker 3: Paxson's going to be on our Sunday morning future show tomorrow.
• 8:06
  Speaker 3: Mike Rogers is going to win in Michigan. Susan Collins
• 8:10
  Speaker 3: is going to win in Maine.
• 8:14
  Speaker 6: Okay.
• 8:16
  Speaker 3: So the New York Times is right to get nervous
• 8:19
  Speaker 3: because the numbers are rolling in. Now, I can't predict
• 8:23
  Speaker 3: the House. I'm always saying the Senate. I might not
• 8:27
  Speaker 3: be right at every race. I believe we'll win, by
• 8:30
  Speaker 3: the way. We'll win. Conservatives will win in Iowa and Kansas.
• 8:37
  Speaker 3: Kansas for sure. In fact, the incumbent, what's his name,
• 8:45
  Speaker 3: the doctor is already taken a small lead in the polls,
• 8:49
  Speaker 3: but there's more of that coming. Now, one other point
• 8:55
  Speaker 3: I want to make, very important, on this whole issue
• 9:01
  Speaker 3: of affordability, okay? Senator Bernie Sanders submitted a bill, Medicare
• 9:08
  Speaker 3: for All. He submitted the bill a couple years ago,
• 9:12
  Speaker 3: Medicare for All. That has been taken up by basically
• 9:16
  Speaker 3: the entire Democratic Party. El-Sayed, Tallarico, all these lefties, Flanagan
• 9:25
  Speaker 3: in Minnesota, all these socialist lefties. And I don't know
• 9:33
  Speaker 3: if we've gotten this out yet as much as possible.
• 9:37
  Speaker 3: This is something Newt Gingrich and I have talked a
• 9:40
  Speaker 3: lot about. On the TV show and in print, we've
• 9:44
  Speaker 3: written about it. The point is that Bernie Sanders' Medicare
• 9:48
  Speaker 3: for All includes illegal immigrants. Let me make this very clear.
• 9:56
  Speaker 3: Medicare for All will include illegal immigrants. immigrants. And on
• 10:04
  Speaker 3: top of that, the legislation would include free SNAP, that's
• 10:11
  Speaker 3: food stamps, free housing subsidies, and free Medicaid for immigrants. illegals. Now,
• 10:23
  Speaker 3: if you ever look at Medicare for All, it's a
• 10:25
  Speaker 3: state takeover. It's nationalized health care. It's socialism, big government socialism.
• 10:33
  Speaker 3: So if you like your health care plan, you will
• 10:36
  Speaker 3: lose it. It's worse than Obamacare. If you like your
• 10:41
  Speaker 3: health care plan, listen to this number, over 160 million
• 10:44
  Speaker 3: working folks, Almost the entire American labor force has some
• 10:55
  Speaker 3: kind of employer-based health insurance. It's a good deal, and
• 11:00
  Speaker 3: they like it. If you went to socialist health care,
• 11:06
  Speaker 3: Medicare for all, including illegals, you will lose your employer-based
• 11:13
  Speaker 3: health insurance. Now, people have to understand that. That is
• 11:19
  Speaker 3: one of the, maybe the most radical of these socialist proposals.
• 11:25
  Speaker 3: And I'm giving you facts. This is what is in
• 11:28
  Speaker 3: the Bernie Sanders bill, and it's what these DSA types
• 11:33
  Speaker 3: are talking about on the campaign trail. You like your
• 11:37
  Speaker 3: health care plan, you won't be able to keep it.
• 11:40
  Speaker 3: Just as bad, just as bad, Medicare for all, Medicaid,
• 11:46
  Speaker 3: food stamps, various housing subsidies from HUD for illegals. It's
• 11:53
  Speaker 3: in the legislation. Council of Economic Advisors has priced out
• 12:00
  Speaker 3: the DSA at about $ 50 trillion over 10 years. $ 50 trillion,
• 12:07
  Speaker 3: of which Medicare is the biggest chunk. Precisely what? I
• 12:13
  Speaker 3: don't know. I'm going to say it's $ 35- 40 trillion. The
• 12:18
  Speaker 3: other stuff, the add-ons, food stamps and so forth, but
• 12:22
  Speaker 3: even that's hard to know because of Medicaid, which is
• 12:25
  Speaker 3: a leveraged deal. The more the state puts up, the
• 12:30
  Speaker 3: more the federal government has to cover it. But that
• 12:32
  Speaker 3: could be another trillion dollars easily. So let me get
• 12:37
  Speaker 3: this right. This Democratic affordability issue, which is hilarious, I mean,
• 12:44
  Speaker 3: they would take $ 10, $ 10 gasoline, and ban it forever.
• 12:50
  Speaker 3: We'll hear the whole climate change, radical existential threat, all
• 12:54
  Speaker 3: that nonsense. Ending gas-powered cars, stopping fossil fuels. $ 50 trillion
• 13:01
  Speaker 3: for Medicare for all, for illegals, including illegals. Come on.
• 13:07
  Speaker 3: This is what they're running on?
• 13:09
  Speaker 6: Really?
• 13:09
  Speaker 3: Now, it's up to the GOP. And the President Trump
• 13:14
  Speaker 3: is doing the best he can right now, covering states.
• 13:17
  Speaker 3: He's indefatigable. The enthusiasm is rising. He's having an impact.
• 13:21
  Speaker 3: Pretend I'm on the ballot. He's having a positive impact.
• 13:25
  Speaker 3: His economic message is sharper. He's raising all these key issues,
• 13:29
  Speaker 3: traveling all over the country. It's really quite remarkable. But
• 13:35
  Speaker 3: the GOP has got to make this message, the candidates individually.
• 13:39
  Speaker 3: They're going to hold the Senate. They're going to hold
• 13:41
  Speaker 3: the Senate. The House could be raised within. I don't know.
• 13:46
  Speaker 3: Right now, they're losing the generic ballot. I acknowledge that.
• 13:50
  Speaker 3: John McLaughlin, likely voters, they're down five points. With 17
• 13:55
  Speaker 3: days left, that's not great. But we'll see how it
• 13:59
  Speaker 3: turns out. Anyway, Medicare for all, including illegals. If you
• 14:05
  Speaker 3: like your health care, folks, you will lose it if
• 14:08
  Speaker 3: the Democrats win. I'm Kudlow. We'll take a quick break.
• 14:13
  Speaker 2: This is the Larry Kudlow Show. Now, back to the
• 14:28
  Speaker 2: Larry Kudlow Show.
• 14:29
  Speaker 3: One thing I want to add to the election roundup
• 14:35
  Speaker 3: is Bruce Blakeman clobbered Kathy Hochul, Governor Hochul, at the
• 14:40
  Speaker 3: debate this past week. I mean, just clocked her across
• 14:44
  Speaker 3: the board. Everything imaginable. Taxes, crime, Cornell University, fracking. And
• 14:53
  Speaker 3: he was very strong. And she was running against Donald Trump,
• 14:57
  Speaker 3: not Bruce Blakeman. And Blakeman was good-natured, good smile on
• 15:02
  Speaker 3: her face. She was snarling, didn't know her stuff, stumbling
• 15:07
  Speaker 3: over her words, couldn't even get her opening statement out.
• 15:13
  Speaker 3: I mean, it was really a bad show. And I'm sure,
• 15:16
  Speaker 3: I haven't seen any polls, but I'm sure Blakeman, who's
• 15:18
  Speaker 3: closing fast, will do very well in the polls. And
• 15:22
  Speaker 3: you've got these, it's interesting now in the papers, you've
• 15:26
  Speaker 3: got Democrats walking away from Hochul. Up in Westchester, Mike
• 15:31
  Speaker 3: Lawler running against Kate Conley. And Conley joined Lawler in
• 15:39
  Speaker 3: bashing Hochul, said, I'm not for Hochul. And I see
• 15:44
  Speaker 3: Tom Suozzi, longtime congressman from Long Island, he's walked away
• 15:49
  Speaker 3: from Hochul, won't appear with her At an event, upstate
• 15:53
  Speaker 3: New York, North Country, at least Stefanik's old district. This guy,
• 16:01
  Speaker 3: I probably never, Jean de Bien, Jean de Bien, that's
• 16:05
  Speaker 3: his name. Apologies if I misspell it. But he refused
• 16:09
  Speaker 3: to make a decision. They asked him, he wouldn't say
• 16:13
  Speaker 3: yes and he wouldn't say no. She's losing her base
• 16:17
  Speaker 3: because she's been one of the worst governors in America. And,
• 16:21
  Speaker 3: you know, she I mean, really snippety, dark kind of
• 16:25
  Speaker 3: presentation at the mean. And it showed. And Blakeman, you know,
• 16:31
  Speaker 3: had a great visage. I mean, he's a pro. This
• 16:34
  Speaker 3: is a guy who won Nassau County twice. It's a
• 16:36
  Speaker 3: Democratic county, but he won twice. He knows his stuff.
• 16:40
  Speaker 3: He's been doing this stuff for years. I've known Bruce
• 16:42
  Speaker 3: for a long time and his brother who worked in
• 16:45
  Speaker 3: the Bush White House years ago. Smart guys are very smart.
• 16:51
  Speaker 3: And he stood his ground. I mean, she's running against Trump.
• 16:55
  Speaker 3: And he would say, look, he didn't walk away from Trump.
• 16:58
  Speaker 3: He said, I have some disagreements. Trump is pro-life, I'm pro-choice.
• 17:05
  Speaker 3: That being one of them. And he favors visas for
• 17:11
  Speaker 3: certain temporary farm workers, which I guess Mr. Trump doesn't,
• 17:15
  Speaker 3: although it's not entirely true. But he said, I'm proud
• 17:19
  Speaker 3: of Trump, and Trump is my friend, and I'm glad
• 17:22
  Speaker 3: I'm endorsed him. And then she's talking about natural gas.
• 17:26
  Speaker 3: She's opposed to fracking. Of course, it's the Andrew Cuomo position.
• 17:30
  Speaker 3: That's why utility rates are twice as high as they
• 17:32
  Speaker 3: ought to be. And Blakeman said, just like Pennsylvania, New
• 17:36
  Speaker 3: York and the Marcellus Shale should use fracking for natural
• 17:40
  Speaker 3: gas and clean burning fuel. So he won easily. He
• 17:44
  Speaker 3: won that debate easily. We'll talk some more about this,
• 17:47
  Speaker 3: but I'll tell you, Things are changing fast. I like
• 17:50
  Speaker 3: the direction. I'm Kudlow. We'll be right back.
• 17:54
  Speaker 2: From Wall Street to the White House, this is the
• 18:04
  Speaker 2: Larry Kudlow Show.
• 18:06
  Speaker 3: So, again, I'll test my thesis out that the tide
• 18:11
  Speaker 3: may be turning. Even the New York Times is getting
• 18:15
  Speaker 3: quite worried. that the blue states may not stay blue.
• 18:19
  Speaker 3: And in fact, I believe they won't, particularly when we're
• 18:22
  Speaker 3: looking at Minnesota and Michigan. And Maine's going to stay
• 18:29
  Speaker 3: in Republican hands. Anyway, I want to hear from Senator
• 18:33
  Speaker 3: Ron Johnson, distinguished chairman of the Budget Committee now, lately.
• 18:38
  Speaker 3: Assuming the Republicans hang on to the Senate, he will
• 18:42
  Speaker 3: maintain that important He is a leading conservative. Senator Johnson, welcome.
• 18:47
  Speaker 3: Thank you for doing this, sir. We appreciate it. Morning, Larry.
• 18:50
  Speaker 7: Hope you're doing well.
• 18:51
  Speaker 3: Pretty good. Pretty good. Let me just start out by,
• 18:56
  Speaker 3: what's your take on, I think the GOP holds the
• 18:59
  Speaker 3: Senate nicely, Senator, but what do you hear and what
• 19:02
  Speaker 3: are you thinking?
• 19:04
  Speaker 7: Well, I'll say I sure hope so. What is alarming
• 19:08
  Speaker 7: to me, Larry, is the appeal of socialism, particularly to
• 19:12
  Speaker 7: young people. They've been indoctrinated in our education system through
• 19:16
  Speaker 7: our legacy media. And it is alarming. The hope is
• 19:22
  Speaker 7: that voters start rejecting it. And you mentioned Minnesota and Michigan.
• 19:28
  Speaker 7: In Minnesota, we now have a U.S. Senate candidate who
• 19:32
  Speaker 7: has a shot against the Democrat because the Democrat lieutenant
• 19:36
  Speaker 7: governor was involved in the massive fraud. Again, in the
• 19:39
  Speaker 7: same world, These elections wouldn't even be close. But again,
• 19:44
  Speaker 7: with the left having infiltrated our education institutions, our media,
• 19:49
  Speaker 7: virtually every institution in this country, we've got a long-term
• 19:52
  Speaker 7: game plan here. And they've been laying the groundwork for
• 19:55
  Speaker 7: the rise of socialism. And that's what concerns me. So
• 19:58
  Speaker 7: I hope Americans are sane enough to reject that. Again,
• 20:03
  Speaker 7: it's not theoretical anymore. I can understand 100 years ago
• 20:06
  Speaker 7: after the Great Depression, we had to find a different
• 20:08
  Speaker 7: economic model. We know what socialism and communism results in.
• 20:13
  Speaker 7: So again, I'm just hoping and praying that America rejects it.
• 20:17
  Speaker 3: You know, it's interesting on all those points, and I
• 20:20
  Speaker 3: agree with you, it's a problem. The indoctrination, particularly the
• 20:24
  Speaker 3: elite schools on the two coasts, 100% right. They're running
• 20:29
  Speaker 3: a tip poll, you know, the old Investors Business Daily
• 20:32
  Speaker 3: tip poll, one of the better polls. If you use
• 20:37
  Speaker 3: the phrase free enterprise, Senator, free enterprise, it does a
• 20:42
  Speaker 3: lot better than capitalism, like 10 or 12 points better.
• 20:46
  Speaker 3: I'm just throwing that out. It doesn't negate your point
• 20:50
  Speaker 3: about the indoctrination, but it is just interesting. John McLaughlin
• 20:55
  Speaker 3: told me this years ago, and I've always... I use
• 20:57
  Speaker 3: big government socialism on the one side and free enterprise
• 21:02
  Speaker 3: on the other to distinguish. But I wanted to ask you,
• 21:06
  Speaker 3: you know, in the messaging, which I think is beginning
• 21:11
  Speaker 3: to improve, Trump is out there talking about the economy
• 21:15
  Speaker 3: and closing the border and other things. I don't know
• 21:19
  Speaker 3: how many people know that the original Bernie Sanders bill,
• 21:24
  Speaker 3: Medicare for All, includes free health care for illegal immigrants.
• 21:30
  Speaker 3: This is something that Newt Gingrich and I have been
• 21:32
  Speaker 3: talking about. And I think if people knew that, it
• 21:37
  Speaker 3: might make a big difference. And it turns out, and
• 21:40
  Speaker 3: you may know this, you're a budget chair, but that
• 21:44
  Speaker 3: includes free food stamps, SNAP, and the various housing subsidies,
• 21:51
  Speaker 3: and some proportion of Medicaid, if not all of it.
• 21:54
  Speaker 3: But the key thing is, Medicare for all, extreme health
• 21:59
  Speaker 3: care for illegal immigrants. Now, I think that would be
• 22:03
  Speaker 3: very popular on the campaign trail and very indicting for Democrats.
• 22:10
  Speaker 7: Well, I would make the basic point, if most voters
• 22:13
  Speaker 7: were well-educated, if they truly understood this, if they weren't
• 22:16
  Speaker 7: swayed by the rhetoric, by the demagoguery, we'd be in
• 22:21
  Speaker 7: far better shape because I think most Americans understand at
• 22:23
  Speaker 7: their core that, you know, it is freedom. It is
• 22:26
  Speaker 7: that competitive system that has allowed us to dream and
• 22:30
  Speaker 7: aspire and build and create this nation. I think they,
• 22:32
  Speaker 7: at their core, they understand that, but the rhetoric, the,
• 22:37
  Speaker 7: prevails too often. In addition to, which is the point
• 22:41
  Speaker 7: you made about Medicare, I don't think most people realize
• 22:44
  Speaker 7: you will lose your private health insurance. If you like
• 22:47
  Speaker 7: the insurance you get from your employer, that's gone. That'll
• 22:50
  Speaker 7: be illegal. So no, again, that's the problem we have
• 22:54
  Speaker 7: when you have an education system dominated by leftists. When
• 22:58
  Speaker 7: you have a legacy news media dominated by leftists, they
• 23:01
  Speaker 7: leave out the bad parts, right? It's just, health care
• 23:05
  Speaker 7: is the right. Everybody deserves health care. I mean, yeah,
• 23:08
  Speaker 7: we all want people to get good health care. We
• 23:10
  Speaker 7: all want people to have a good basic income. You know,
• 23:13
  Speaker 7: we all want to help people. They just don't, you know, again,
• 23:17
  Speaker 7: people aren't educated that socialism, communism fails. Every time it's tried,
• 23:21
  Speaker 7: it's spectacular failure. And the only thing that works is freedom,
• 23:26
  Speaker 7: And free enterprise, competition, people, again, building things, and quite honestly,
• 23:34
  Speaker 7: because they want to do better for themselves. And in
• 23:35
  Speaker 7: doing better for themselves, I just saw a recent clip
• 23:40
  Speaker 7: with Milton Friedman talking about, is there a society that
• 23:43
  Speaker 7: has not been driven by greed? You don't think Venezuela
• 23:47
  Speaker 7: or China or the Soviet Union wasn't driven by greedy people?
• 23:54
  Speaker 7: They want things for themselves. But again, in a free
• 23:57
  Speaker 7: market enterprise system, greed is a good motivator and everybody
• 24:02
  Speaker 7: benefits from it. Again, we just don't educate our children
• 24:06
  Speaker 7: and young people to accept that. I mean, greed sounds
• 24:09
  Speaker 7: like such a bad word, but it drives economic progress.
• 24:14
  Speaker 3: We're talking to Senator Ron Johnson of Wisconsin, who is
• 24:19
  Speaker 3: presently the budget chairman in the Senate. The fact is
• 24:25
  Speaker 3: you will lose your employer-based health care, absolutely, and illegals
• 24:32
  Speaker 3: will get it free also, so you're going to pay
• 24:34
  Speaker 3: for that. The estimates for the whole Democratic Socialists of America,
• 24:40
  Speaker 3: the Council of Economic Advisers, you probably saw it, about
• 24:43
  Speaker 3: fifty trillion dollars i think they're underestimating and i think
• 24:46
  Speaker 3: they're underestimating medicare for all uh... isn't includes these other
• 24:51
  Speaker 3: benny's by the way including including free medicaid all right
• 24:54
  Speaker 3: which is in that bill but i think you know
• 24:58
  Speaker 3: it's it really would be uh... incumbent on republicans to
• 25:02
  Speaker 3: make those points senator in the last two weeks you
• 25:04
  Speaker 3: know spell out exactly what medicare for all would do
• 25:10
  Speaker 3: and uh... who gets it for free and that includes
• 25:13
  Speaker 3: the illegals. I mean, to me, that would be devastating.
• 25:16
  Speaker 3: There's a lot of things to talk about, but I'd
• 25:18
  Speaker 3: put that either at or near the top of the list.
• 25:22
  Speaker 7: I mean, I agree. Plus, now we have the Nick
• 25:24
  Speaker 7: Shirley video. We have a Dr. Oz uncovered in Los
• 25:28
  Speaker 7: Angeles where a third of all hospice centers were in
• 25:30
  Speaker 7: the Los Angeles area, so we stopped funding 400 of them,
• 25:33
  Speaker 7: and not one of them complained. So the lowest estimate
• 25:38
  Speaker 7: for fraud that I've seen, Larry, in the federal budget
• 25:42
  Speaker 7: is $ 250 billion a year. The highest, we had the
• 25:44
  Speaker 7: CEO from LexisNexis, I didn't realize they did this research,
• 25:48
  Speaker 7: come into a subcommittee hearing, a trillion dollars. So somewhere
• 25:51
  Speaker 7: between $ 250 billion and $ 1 trillion a year is fraud.
• 25:55
  Speaker 7: in federal spending. And now we've seen it again. We're
• 25:57
  Speaker 7: only seeing the tip of the iceberg, you know, $ 750
• 26:00
  Speaker 7: million flying out of the Minneapolis airport back to various
• 26:04
  Speaker 7: countries in Africa. Again, the media doesn't cover this. They're
• 26:09
  Speaker 7: not outraged by it. We were holding hearings. Not one
• 26:12
  Speaker 7: Democrat showed up to them. They could care less about fraud.
• 26:16
  Speaker 7: So no, I think we have, you know, all kinds
• 26:19
  Speaker 7: of things to talk about. Uh, Again, I'm not in cycle.
• 26:22
  Speaker 7: I'm not campaigning this year. It's all about affordability. People
• 26:26
  Speaker 7: ticked off about diesel prices. Again, the president's got to
• 26:30
  Speaker 7: make the case that I stopped an existential threat. I mean,
• 26:35
  Speaker 7: you think diesel prices are high. Now you think if
• 26:38
  Speaker 7: Iran was a nuclear power and they could lob a
• 26:41
  Speaker 7: nuclear weapon and one of their missiles over America and
• 26:43
  Speaker 7: wipe out our electrical grid with an EMP attack? I mean,
• 26:48
  Speaker 7: that would be devastating. It's existential threat. You have to
• 26:51
  Speaker 7: kind of make that case. That's why we're doing what
• 26:54
  Speaker 7: we're doing in Iran, to prevent an existential threat to America.
• 26:58
  Speaker 7: And yeah, yeah, short term, it's driving up gasoline prices,
• 27:02
  Speaker 7: diesel prices long term. And we've got the solution, drill, baby, drill.
• 27:06
  Speaker 7: We're going to utilize our God-given natural resources as opposed
• 27:10
  Speaker 7: to Democrats who had a war on fossil fuel, drove
• 27:13
  Speaker 7: up the price of gasoline to five bucks a gallon
• 27:15
  Speaker 7: in June of 2022 because of their policies. So no,
• 27:18
  Speaker 7: there's all kinds of things to talk about. Our problem
• 27:22
  Speaker 7: continues to be, Larry, and we'll go right back to it.
• 27:24
  Speaker 7: Our education system, our news media, not properly educating the
• 27:29
  Speaker 7: American public. And, you know, God bless Americans. They live
• 27:32
  Speaker 7: their lives, and so they don't get immersed into the
• 27:36
  Speaker 7: details of these things. And so the demagogues always carry
• 27:41
  Speaker 7: the day.
• 27:43
  Speaker 3: You know, you can look at California, which hates fossil
• 27:48
  Speaker 3: fuels and gasoline. taxes gasoline, six and a half bucks
• 27:53
  Speaker 3: a gallon, $ 2 above the national average. Ditto for diesel.
• 27:57
  Speaker 3: Senator Johnson, they'd go for $ 10, but they want to
• 28:00
  Speaker 3: end gasoline-powered cars altogether. That's what's so hilarious about affordability.
• 28:06
  Speaker 3: It's absolute nonsense. They would cause these fossil fuels to
• 28:10
  Speaker 3: spike to unheard of levels and then ultimately end them.
• 28:14
  Speaker 3: That would cost the country a fortune. And on top
• 28:16
  Speaker 3: of that, Medicare for All Everybody would lose their private insurance,
• 28:20
  Speaker 3: as you say, the employer-based insurance, and the illegals would
• 28:23
  Speaker 3: get it for free. These are pretty simple things. You know,
• 28:26
  Speaker 3: the fraud, I interviewed Elon Musk, I don't know, a
• 28:32
  Speaker 3: little over a year ago, 25. He was still working
• 28:36
  Speaker 3: on the thing. I think it was April or May.
• 28:38
  Speaker 3: I can't remember. But he pointed out his number for
• 28:42
  Speaker 3: fraud total was about $ 550 billion at that time. And
• 28:47
  Speaker 3: that's pretty close to what the government accounting office had.
• 28:49
  Speaker 3: GAO had about $ 500 to $ 550 billion in fraud. You know,
• 28:55
  Speaker 3: you and I talked about this. I wished we'd had
• 28:58
  Speaker 3: a big budget, big bang budget bill, big bang reconciliation
• 29:02
  Speaker 3: bill that would have included this fraud as massive spending
• 29:06
  Speaker 3: reform and savings along with tax cuts. I mean, I
• 29:09
  Speaker 3: think that would have helped the messaging quite a bit.
• 29:12
  Speaker 3: I know you favor that sort of thing, but we
• 29:16
  Speaker 3: both lost. But at least you could message it, right?
• 29:19
  Speaker 3: We should talk about it, even though we can't get
• 29:21
  Speaker 3: it done. Message it.
• 29:23
  Speaker 7: Well, Larry, behind the scenes, we're still working on that.
• 29:26
  Speaker 7: We'll see what happens after this election stuff. And whatever
• 29:32
  Speaker 7: we spend on defense or whatever the spending priorities are,
• 29:36
  Speaker 7: we want to offset that with, again, not reducing benefits,
• 29:39
  Speaker 7: but reducing. and eliminating fraud. That would be the goal
• 29:43
  Speaker 7: of any reconciliation we do. Again, it's going to be
• 29:46
  Speaker 7: a pretty small needle thread. But no, we're quietly talking
• 29:50
  Speaker 7: about this, but doing a lot of work behind the
• 29:51
  Speaker 7: scenes to hopefully have a pretty good reconciliation package after
• 29:55
  Speaker 7: the election. It's on the table.
• 29:57
  Speaker 3: Give me a hint. I love this talk. Give me
• 29:59
  Speaker 3: a hint. Spending fraud. What about taxes?
• 30:07
  Speaker 7: Again, that is the hint, Larry. I don't want to
• 30:11
  Speaker 7: talk too much more before the election, but But we
• 30:13
  Speaker 7: are actively working on this. And you know me, Larry.
• 30:15
  Speaker 7: I would love to simplify and rationalize our tax system,
• 30:19
  Speaker 7: focusing on economic growth. I mean, we're on the same
• 30:22
  Speaker 7: page from that standpoint. Time might be short on that.
• 30:25
  Speaker 7: But again, because the Nick Shirley video, because Americans have
• 30:30
  Speaker 7: seen just the tip of the iceberg, that's why the
• 30:34
  Speaker 7: Republican candidate in Minnesota may win that Senate seat, because
• 30:37
  Speaker 7: even in Minnesota, a pretty blue state, unfortunately. The voters
• 30:42
  Speaker 7: are awake into this stuff. So we just keep driving
• 30:46
  Speaker 7: that message. And part of the problem we have, too,
• 30:48
  Speaker 7: is Democrats come in, they destroy the economy, they open
• 30:52
  Speaker 7: up our borders, they leave such enormous messes. It's hard
• 30:56
  Speaker 7: to clean these things up in a couple of years.
• 30:58
  Speaker 7: It's amazing how Trump closed the border within a couple
• 31:01
  Speaker 7: of months. got inflation under the control. It's a little
• 31:05
  Speaker 7: too high right now, but we were bringing down energy prices.
• 31:09
  Speaker 7: So again, the voters are very impatient. Every election is
• 31:12
  Speaker 7: a change election. They expect immediate results. So one of
• 31:16
  Speaker 7: the things we have to, I always in business, I
• 31:20
  Speaker 7: would under-promise and over-deliver. We have a tendency in politics
• 31:24
  Speaker 7: to over-promise what's very difficult, if not impossible, to deliver.
• 31:27
  Speaker 7: So I would advise against that. But try and lay
• 31:30
  Speaker 7: out the realistic case, but always point out, Democrats opened
• 31:34
  Speaker 7: up the border. They caught 40-year high inflation. They let
• 31:38
  Speaker 7: the international scene degrade to the point where Trump had
• 31:40
  Speaker 7: to act. But again, voters are always forward-looking, and they're
• 31:44
  Speaker 7: not satisfied with things they are, and they're going to
• 31:46
  Speaker 7: blame the party in power.
• 31:48
  Speaker 3: Let me take a quick break, Senator, okay? Commercial break.
• 31:51
  Speaker 3: We are free enterprisers here at WABC. And then we'll
• 31:56
  Speaker 3: have you back to finish it off. It's all very enlightening,
• 31:58
  Speaker 3: great stuff. Senator Ron Johnson, budget chair from Wisconsin. I'm Kudlow.
• 32:04
  Speaker 3: We'll take a break and be right back.
• 32:07
  Speaker 1: Larry Kudlow.
• 32:21
  Speaker 2: From Wall Street to the White House, this is The
• 32:24
  Speaker 2: Larry Kudlow Show.
• 32:26
  Speaker 3: And we're talking to Senator Ron Johnson, who is the
• 32:30
  Speaker 3: chair of the Senate Budget Committee from the great state
• 32:34
  Speaker 3: of Wisconsin. Senator Johnson, you were talking about, after the election,
• 32:39
  Speaker 3: the so-called lame duck session. How about the permitting reform
• 32:42
  Speaker 3: bill that didn't quite make it through? It got through
• 32:44
  Speaker 3: the House, I think. It didn't quite make it through
• 32:47
  Speaker 3: the Senate. But it is bipartisan, at least in part.
• 32:51
  Speaker 3: I mean, that would be a hell of a thing
• 32:54
  Speaker 3: to get that through.
• 32:55
  Speaker 7: It really would be, and it would be a bipartisan accomplishment.
• 32:58
  Speaker 7: Mike Lee and Shelley Moore Capito have been working with
• 33:01
  Speaker 7: Sheldon Whitehouse, and it's real. I mean, we did, by consent,
• 33:06
  Speaker 7: agree to get on with that as soon as we
• 33:08
  Speaker 7: get back. Um, and I, I, I mean, it's a
• 33:11
  Speaker 7: real possibility and it's because people are giving and taking
• 33:14
  Speaker 7: on both sides. The president Trump, I think he's held
• 33:17
  Speaker 7: up some of the, the wind projects that are near
• 33:20
  Speaker 7: and dear to Sheldon Whitehouse's heart. And okay, we'll let
• 33:23
  Speaker 7: those go. If you're willing to actually allow other people
• 33:25
  Speaker 7: to build other things. So that's a real possibility. And
• 33:28
  Speaker 7: that would be a huge win long-term. There's no political
• 33:32
  Speaker 7: advantage into for anybody. It's, it's just advantageous to America.
• 33:37
  Speaker 7: So that would be a big win. So hopefully we'll
• 33:38
  Speaker 7: get on the Senate, get that passed in the first
• 33:40
  Speaker 7: week or whatever, turn ourselves to a budget reconciliation resolution
• 33:45
  Speaker 7: before we leave for Thanksgiving, and then pass the actual
• 33:49
  Speaker 7: reconciliation bill in December. That would be the game plan
• 33:52
  Speaker 7: if we can accomplish it.
• 33:54
  Speaker 3: One other one that didn't make it through in the Senate,
• 33:57
  Speaker 3: I think the ratepayers protection bill. Now, I don't know
• 34:03
  Speaker 3: as much about that bill. But I know it was
• 34:06
  Speaker 3: popular at the moment, but it didn't quite get through.
• 34:10
  Speaker 7: Well, that's all about, you know, calming everybody down on
• 34:14
  Speaker 7: these AI data centers, which we're going to have to
• 34:16
  Speaker 7: build and just say, OK, these data centers, if they're
• 34:20
  Speaker 7: constructed in a municipality, can't increase the cost of energy.
• 34:25
  Speaker 7: And it blows me. I don't know why Democrats would
• 34:27
  Speaker 7: be opposed to that. The other thing they rejected was
• 34:32
  Speaker 7: the House, I think, brilliantly put together a ban on
• 34:34
  Speaker 7: stock trading by members of Congress together with just a
• 34:38
  Speaker 7: voter ID bill, something Democrats, when we were debating the
• 34:44
  Speaker 7: Save America Act, said, oh, we're for voter ID, which
• 34:46
  Speaker 7: is not for this bill. Okay, well, we'll do a
• 34:48
  Speaker 7: simple voter ID bill. So we combine that with banning
• 34:51
  Speaker 7: stock trading by members of Congress, individual stocks, which I
• 34:55
  Speaker 7: support that. And they all rejected it. So voters have
• 35:01
  Speaker 7: to understand Democrats just want to block things that actually
• 35:05
  Speaker 7: are advantageous to America and Americans to acquire power. They
• 35:10
  Speaker 7: were happy to have the economy in chaos if it
• 35:13
  Speaker 7: would help get them elected and put them in a
• 35:17
  Speaker 7: greater position of power. Again, it's frustrating for people like
• 35:20
  Speaker 7: you and I that kind of see this pretty clearly,
• 35:23
  Speaker 7: that their rhetoric, their demagoguery seems to be so effective because, again,
• 35:28
  Speaker 7: our education system, our news media is not properly informing
• 35:32
  Speaker 7: America the way it should.
• 35:35
  Speaker 3: Well, Senator, you know, Nancy Pelosi had an investment track
• 35:40
  Speaker 3: record that was probably the greatest in history, better than
• 35:43
  Speaker 3: Warren Buffett's or anybody. That was a joke. You don't
• 35:47
  Speaker 3: have to answer.
• 35:48
  Speaker 7: No, I'm fully aware of that. Her husband was very savvy.
• 35:54
  Speaker 3: Anyway, very savvy guy. Had ability to look ahead and
• 35:58
  Speaker 3: predict legislation. Anyway, we'll leave it. You're right. We need
• 36:02
  Speaker 3: a bill. Okay. Own an index fund. You know, that's
• 36:06
  Speaker 3: the federal savings plan. But not buying and selling individual stocks,
• 36:11
  Speaker 3: especially when you're on the relevant committee or subcommittee. Rounding up, Senator,
• 36:17
  Speaker 3: the economy looks very strong, probably 4% in the third quarter,
• 36:23
  Speaker 3: but we are seeing inflation now, and the Federal Reserve
• 36:26
  Speaker 3: is probably going to have to raise their target rate.
• 36:30
  Speaker 3: I think the economy can take that because it is
• 36:32
  Speaker 3: so strong. But how do you see the economic story?
• 36:36
  Speaker 7: Well, again, I applaud President Trump for appointing Kevin Warsh.
• 36:40
  Speaker 7: I think he's exactly the kind of person we have.
• 36:43
  Speaker 7: He's dead serious about this. He kind of let the
• 36:45
  Speaker 7: markets tell him where things need to go. Again, I
• 36:50
  Speaker 7: know President Trump loves ultra-low interest rates. I think it
• 36:53
  Speaker 7: leads to misallocation of capital. So I want people who
• 36:56
  Speaker 7: want to invest in a bond to have a good
• 36:59
  Speaker 7: rate of return above inflation. So again, the marketplace pretty
• 37:03
  Speaker 7: well sets that. And I think the Fed's primary job
• 37:06
  Speaker 7: is stable currency and keeping inflation under control. So again,
• 37:11
  Speaker 7: I think Kevin Warsh is exactly the guy and president
• 37:13
  Speaker 7: Trump appointed him. And I think he's letting him do
• 37:15
  Speaker 7: the job and I appreciate that.
• 37:16
  Speaker 3: Yeah. You know, you make a good point about the
• 37:18
  Speaker 3: stable currency. I've always felt that a strong, steady dollar, uh,
• 37:24
  Speaker 3: not only attracts investment, it holds down prices, which are
• 37:28
  Speaker 3: denominated in dollars. So as you may know, um, Scott Besson,
• 37:34
  Speaker 3: Treasury Secretary Scott Besson, has brought in Judy Shelton to
• 37:38
  Speaker 3: be a counselor to the Secretary of the Treasury. Now,
• 37:42
  Speaker 3: she's a hard money, strong dollar gal, Senator Johnson. Pretty
• 37:47
  Speaker 3: good from my lights.
• 37:49
  Speaker 7: Yeah, big supporter of her as well. So, no, again,
• 37:52
  Speaker 7: President Trump is very good at strong, self-intelligent people. And, again,
• 37:56
  Speaker 7: we're making success. We're just not getting credit for it.
• 37:59
  Speaker 3: All right. Well, we'll see.
• 38:00
  Speaker 8: We should.
• 38:01
  Speaker 3: We'll see. It ain't over till it's over. That's the music.
• 38:04
  Speaker 3: That means we're over. Senator Ron Johnson of Wisconsin, thanks
• 38:07
  Speaker 3: for a Saturday morning. We appreciate it, sir. Folks, we'll
• 38:11
  Speaker 3: take a break. And on the other side, we're going
• 38:14
  Speaker 3: to do some economics with John Carney and E.J. and Tony.
• 38:17
  Speaker 3: Talk about the Fed and inflation. I'm Kudlow. Please stay
• 38:21
  Speaker 3: with us.
• 38:29
  Speaker 2: It's the Larry Kudlow Show. Free market prosperity starts here. Now,
• 38:35
  Speaker 2: here's Larry Kudlow.
• 38:36
  Speaker 3: So, take a look at the economy, as we always
• 38:41
  Speaker 3: do in the second hour. We got a lot of
• 38:45
  Speaker 3: releases this week. Economy's strong. Atlanta Fed GDP now estimating 3.6%
• 38:52
  Speaker 3: GDP growth in Q3. which is already over. We'll get
• 39:01
  Speaker 3: those numbers maybe next week or the week after. But
• 39:07
  Speaker 3: retail sales, pretty good. Production, manufacturing, not bad. Capital spending
• 39:15
  Speaker 3: is still very, very strong. But we got some hotter
• 39:20
  Speaker 3: than expected inflation numbers. A friend of mine calls it,
• 39:28
  Speaker 3: let me see, what does he call it? Inflation has
• 39:32
  Speaker 3: escaped the oil barrel. Very good. That being John Carney,
• 39:39
  Speaker 3: Breitbart news editor for economics and finance and co-author of
• 39:43
  Speaker 3: the terrific daily Breitbart Business Digest. Inflation has escaped the
• 39:49
  Speaker 3: oil barrel. Yes, indeed. And my pal E.J. Antoni, who
• 39:52
  Speaker 3: was on the show last evening, economist and senior fellow
• 39:56
  Speaker 3: at Unleash Prosperity and the Heritage Foundation. Gentlemen, welcome. John,
• 40:01
  Speaker 3: how bad is the inflation? I mean, it seems to
• 40:05
  Speaker 3: be hitting from all sides, PPI, CPI, import prices. And
• 40:12
  Speaker 3: I guess I want to know from both of you, actually,
• 40:16
  Speaker 3: but What is the source of this inflation? Now, let's
• 40:21
  Speaker 3: put the oil aside. As you say, it's escaped the
• 40:25
  Speaker 3: gas pump. It's spilled over from the gas. It's escaped
• 40:28
  Speaker 3: the oil barrel. What's driving the inflation? The Fed's going
• 40:32
  Speaker 3: to tighten. It can't just, you know, it's not going
• 40:34
  Speaker 3: to tighten because of oil prices. There's nothing they can
• 40:36
  Speaker 3: do about that, at least not yet. The Fed doesn't
• 40:39
  Speaker 3: have oil reserves. They haven't stretched their central planning quite
• 40:44
  Speaker 3: that far. What is it that's pushing this inflation higher?
• 40:49
  Speaker 9: I think that there is a little bit of just spillover,
• 40:54
  Speaker 9: as we said, oil spill on to when that the
• 40:59
  Speaker 9: economy could basically take higher oil prices, higher gas prices,
• 41:04
  Speaker 9: higher deals, diesel prices for about five months. before it
• 41:09
  Speaker 9: actually started to put some supply constraint on the economy,
• 41:13
  Speaker 9: where the price of shipping everything got more expensive. And
• 41:18
  Speaker 9: that is actually starting to push prices higher. So that
• 41:24
  Speaker 9: if the Iran straight up removes the oil out of
• 41:28
  Speaker 9: Saudi Arabia, if that had all been resolved by now,
• 41:31
  Speaker 9: I think we wouldn't have started to see this spillover.
• 41:34
  Speaker 9: It's only because it lasted so long that it's starting
• 41:37
  Speaker 9: to filter through to the other prices in the economy.
• 41:40
  Speaker 3: I mean, it is true. And I used to make
• 41:43
  Speaker 3: this case on the reverse side, that low oil and
• 41:47
  Speaker 3: gasoline prices, had a pervasive effect. There are hundreds and
• 41:52
  Speaker 3: hundreds of prices that are related to petroleum one way
• 41:56
  Speaker 3: or another. I mean, literally hundreds and hundreds of prices.
• 42:00
  Speaker 3: So you make a good point. But E.J., you know,
• 42:04
  Speaker 3: one of the things Kevin Warsh said during his confirmation hearings, Kevin,
• 42:09
  Speaker 3: who John calls Silent Cow, I love that, didn't say
• 42:13
  Speaker 3: much in Bangkok, did he? Well, that's good. No forward guidance.
• 42:16
  Speaker 3: At least he's hanging on to that. But, you know,
• 42:21
  Speaker 3: monetary policy is the biggest driver of inflation. So you
• 42:28
  Speaker 3: have to ask, I mean, is the money supply growing
• 42:31
  Speaker 3: too fast? Is the dollar too low? Is the balance
• 42:36
  Speaker 3: sheet too large, which is the ultimate base for the
• 42:41
  Speaker 3: money supply and the credit supply as well? I mean,
• 42:45
  Speaker 3: I don't want to get too doctrinaire about it. But,
• 42:48
  Speaker 3: you know, after all, the Fed's remit is holding down
• 42:52
  Speaker 3: inflation and unemployment. But monetary policy is the driver. What
• 42:58
  Speaker 3: is it that they're going to do if they raise
• 43:00
  Speaker 3: their target rate by another quarter, either this month or
• 43:04
  Speaker 3: in December or whenever? What is it and why?
• 43:09
  Speaker 10: Well, Larry, it's a great, great question.
• 43:11
  Speaker 11: I mean, if you look at M2, it's definitely continuing
• 43:15
  Speaker 11: to grow. I think it is growing a little too fast.
• 43:18
  Speaker 11: But in terms of the balance sheet, this was something
• 43:21
  Speaker 11: that Warsh said even before his confirmation hearings. He was
• 43:25
  Speaker 11: talking about how the Fed has the policy mix completely backwards.
• 43:29
  Speaker 11: In other words, they have interest rates too high, and
• 43:32
  Speaker 11: they also have the balance sheet too big. And if
• 43:34
  Speaker 11: they were to shrink that balance sheet, it would give
• 43:37
  Speaker 11: them room to.
• 43:38
  Speaker 1: Cut interest rates.
• 43:40
  Speaker 11: And the fact that they haven't done anything yet on
• 43:43
  Speaker 11: the balance sheet tells me that Jerome Powell still being there,
• 43:46
  Speaker 11: because Jerome Powell was a big fan of having this
• 43:49
  Speaker 11: massive balance sheet and keeping it so large, not just
• 43:53
  Speaker 11: in times of an emergency, but kind of perpetually, that
• 43:56
  Speaker 11: tells me that Powell and his cronies at the Fed
• 43:59
  Speaker 11: basically just aren't on board yet with Warsh's vision of
• 44:03
  Speaker 11: reducing that balance sheet, of getting it down and using
• 44:06
  Speaker 11: that to put downward pressure on on inflation. So aside
• 44:10
  Speaker 11: from the oil shock that you and John were just
• 44:12
  Speaker 11: talking about, and I think you guys are 100% right,
• 44:15
  Speaker 11: that's the primary driver of these higher prices today. And
• 44:19
  Speaker 11: you're right, Larry, it's not just transportation, it's all of
• 44:22
  Speaker 11: these products that actually directly use petroleum as an ingredient, basically.
• 44:27
  Speaker 11: Everything from cosmetics to pharmaceuticals and everything in between All
• 44:32
  Speaker 11: of that, absolutely. Oil being higher is causing all of
• 44:35
  Speaker 11: those other prices to go higher. But on top of that, yes,
• 44:39
  Speaker 11: I do think there is probably a monetary element to this,
• 44:43
  Speaker 11: which is that the Fed has not yet begun to
• 44:45
  Speaker 11: shrink the balance sheet. And they really, really need to
• 44:48
  Speaker 11: do that. If they actually did that, if Warsh could
• 44:51
  Speaker 11: get the rest of the board on board, so to speak,
• 44:53
  Speaker 11: with his agenda, then yes, I think that would have
• 44:56
  Speaker 11: a really positive impact on inflation. And it would give
• 44:59
  Speaker 11: you room down the road to even lower interest rates.
• 45:01
  Speaker 3: You know, my eyeglasses are petroleum. My tennis racket, my
• 45:08
  Speaker 3: tennis shoes, clothing, antihistamines, all manner of equipment, all equipment,
• 45:18
  Speaker 3: one way or another, uses some kind of petroleum. So
• 45:22
  Speaker 3: there's that. Now, Powell was increasing the balance sheet last winter.
• 45:28
  Speaker 3: In his remaining days at the Fed, they were putting
• 45:31
  Speaker 3: more money in. That has stopped. That has stopped under Warshaw.
• 45:36
  Speaker 3: I'm not sure it's consciously stopped, but it's statistically stopped,
• 45:41
  Speaker 3: John Carney. But you're still.
• 45:43
  Speaker 1: At $ 6.
• 45:43
  Speaker 6: 7 trillion.
• 45:46
  Speaker 9: I think that the market actually may be underestimating what
• 45:51
  Speaker 9: Warsh is going to do. Right now, so Warsh gave
• 45:56
  Speaker 9: a speech, or not a speech, a talk in Bangkok,
• 45:59
  Speaker 9: and he did what he wanted to do, which was
• 46:03
  Speaker 9: not do forward guidance. The market read that as a
• 46:06
  Speaker 9: confirmation of what it was already pricing in.
• 46:08
  Speaker 10: That's a mistake.
• 46:09
  Speaker 9: When Kevin Warsh isn't telling you what it used to be,
• 46:12
  Speaker 9: when the Fed wasn't telling you what it was going
• 46:13
  Speaker 9: to do, you could assume- that it was confirming what
• 46:18
  Speaker 9: the market had already priced in because that's how the
• 46:21
  Speaker 9: Fed was working. He's not doing that now. And so
• 46:24
  Speaker 9: when the market is reading his silence as a confirmation.
• 46:28
  Speaker 4: That's what I'm saying.
• 46:29
  Speaker 9: Warsh may actually surprise the market. I don't know if
• 46:33
  Speaker 9: he'll do it this meeting, the next meeting, either by
• 46:37
  Speaker 9: hiking or announcing something with the balance sheet. that the
• 46:42
  Speaker 9: market isn't expecting. In fact, he may have to do
• 46:46
  Speaker 9: that because the only way he's going to convince the
• 46:49
  Speaker 9: market that he's seriously not giving forward guidance, that each
• 46:52
  Speaker 9: meeting something new could happen, will be for him to
• 46:56
  Speaker 9: surprise them.
• 46:57
  Speaker 3: You know, why not October? Why not next week? I
• 46:59
  Speaker 3: think he might. I don't have a problem with it.
• 47:03
  Speaker 9: I mean, very hot inflation reports and it would make
• 47:06
  Speaker 9: a lot of sense. You actually underestimated, Larry, how good
• 47:09
  Speaker 9: the I think the industrial production numbers that came out
• 47:12
  Speaker 9: this week are really actually much stronger than people thought.
• 47:18
  Speaker 9: Just just to look at it from the time Trump
• 47:22
  Speaker 9: came in. Real American manufacturing production is up 2.56%. Under
• 47:30
  Speaker 9: the last 19 months under Biden, it contracted 1.19%. So
• 47:34
  Speaker 9: in other words, we've turned this around by almost 4%.
• 47:40
  Speaker 9: This is a huge change in direction for manufacturing. It's
• 47:44
  Speaker 9: very strong. And that actually gives the room, the Fed,
• 47:47
  Speaker 9: room to tighten because the economy is doing so strong
• 47:52
  Speaker 9: that we don't have to worry. Nobody's losing their job
• 47:55
  Speaker 9: in America right now. Record low jobless claims. Unemployment is
• 47:59
  Speaker 9: super low. We are manufacturing output.
• 48:03
  Speaker 7: Is way up.
• 48:04
  Speaker 9: All that's going really well. Inflation's too high. I think
• 48:07
  Speaker 9: Kevin may surprise people. The market's only giving like a
• 48:09
  Speaker 9: 15% chance of a hike in October? That might not
• 48:13
  Speaker 9: be correct.
• 48:14
  Speaker 3: Yeah, I mean, I wouldn't. The president won't love it,
• 48:17
  Speaker 3: but that's life.
• 48:21
  Speaker 9: He might like it because I think long-term rates may
• 48:24
  Speaker 9: come down. If people think he's going to squash inflation
• 48:27
  Speaker 9: more quickly, then I think you could get mortgage rates
• 48:30
  Speaker 9: coming down. You could get longer-term rates. That could actually
• 48:32
  Speaker 9: help the AI stocks do better because people are worried
• 48:36
  Speaker 9: about how they're going to pay their debt. So hike short-term,
• 48:39
  Speaker 9: you may get a longer, you may get the long-term
• 48:42
  Speaker 9: yields to come out.
• 48:44
  Speaker 3: You know, if he can, he can convince that I've
• 48:46
  Speaker 3: always counseled Kevin, whatever he does, stay in touch with
• 48:51
  Speaker 3: the boss, stay in touch with him, explain to him,
• 48:55
  Speaker 3: you know, what you're doing, what the logic is, uh,
• 48:58
  Speaker 3: and then he'll be okay with it, which Kevin has done.
• 49:01
  Speaker 3: He does speak to him periodically, which is what a
• 49:04
  Speaker 3: fed chair should do. Jay Powell, uh, was always attacking Trump,
• 49:09
  Speaker 3: but Warsh is much smarter and works better with Besant,
• 49:14
  Speaker 3: which is also very, very important. He has Besant's support.
• 49:19
  Speaker 3: But when's the next meeting? I know it's next week,
• 49:24
  Speaker 3: this coming week. After that, there's nothing in November. Is
• 49:27
  Speaker 3: that the idea? Next one is in December, or is
• 49:30
  Speaker 3: that right?
• 49:31
  Speaker 9: That's right. No meeting today. We have an October meeting
• 49:36
  Speaker 9: and then nothing at all in November, not till December.
• 49:40
  Speaker 3: Now, some people, E.J., are making the case that the
• 49:43
  Speaker 3: PCE deflator, personal consumption expenditures deflator, which I guess is
• 49:48
  Speaker 3: the Fed's ultimate inflation target, will come in lighter than
• 49:53
  Speaker 3: these CPIs and PPIs and import prices. Is there anything
• 49:58
  Speaker 3: to that?
• 50:00
  Speaker 10: Larry, I'm not sure there really is because what I
• 50:03
  Speaker 10: think a lot.
• 50:03
  Speaker 11: Of those predictions are relying on is the kind of
• 50:06
  Speaker 11: substitution effect that you get with the PCE that you
• 50:10
  Speaker 11: don't get with CPI. In other words, CPI measures a
• 50:14
  Speaker 11: fixed basket of products and services. that the kind of
• 50:18
  Speaker 11: stereotypical consumer buys, whereas PCE is measuring the prices of
• 50:23
  Speaker 11: things on which people are actually spending their money. And
• 50:27
  Speaker 11: this is one of the reasons why PCE tends to
• 50:29
  Speaker 11: come in lower than CPI in terms of inflation, because
• 50:33
  Speaker 11: as a certain product or service gets more expensive, consumers
• 50:37
  Speaker 11: will start substituting away from that. So, for example, earlier
• 50:41
  Speaker 11: this year when beef got really expensive, consumers bought.
• 50:44
  Speaker 1: Less of that.
• 50:44
  Speaker 11: They bought more chicken.
• 50:46
  Speaker 1: They bought more pork.
• 50:47
  Speaker 11: And then they had other protein options that they switched
• 50:49
  Speaker 11: to like eggs. And so the inflation as measured by
• 50:53
  Speaker 11: PCE came in a little bit lower. However, when we
• 50:58
  Speaker 11: look at what's getting really expensive right now in the CPI,
• 51:01
  Speaker 11: it's an energy story like you were talking about earlier
• 51:04
  Speaker 11: with John. And so you don't have a lot of
• 51:07
  Speaker 11: easy substitutions when it comes to something like gasoline and diesel.
• 51:12
  Speaker 11: So I'm not sure you're going to see that much
• 51:14
  Speaker 11: of a difference between the two.
• 51:16
  Speaker 3: By the way, James Tallarico doesn't want any cattle or
• 51:20
  Speaker 3: beef in Texas. So you'll have a problem with substitution.
• 51:25
  Speaker 3: He doesn't want any. Nor does he want any fossil fuels.
• 51:29
  Speaker 3: I guess that's a different subject, different segment. Sorry. So
• 51:32
  Speaker 3: how come that long-term, all these bad inflation numbers, but
• 51:36
  Speaker 3: interest rates fell significantly this week? John, I'm looking at,
• 51:41
  Speaker 3: let's see, the two-year note fell eight basis points. The five-year, 15%.
• 51:46
  Speaker 3: And the 10 and 30, 17. So everything fell. The
• 51:52
  Speaker 3: bond market rallied on all this bad news.
• 51:55
  Speaker 9: I think a couple of things. One, the people are
• 51:59
  Speaker 9: not afraid of the of a recession or the economy
• 52:02
  Speaker 9: doing badly. So, you know, that that that helps. But
• 52:05
  Speaker 9: I also think that right now the people do think
• 52:11
  Speaker 9: that the high inflation numbers mean that the Fed is
• 52:14
  Speaker 9: going to tighten the Fed and that actually and by
• 52:19
  Speaker 9: stomping out inflation more quickly, then the longer term, the
• 52:24
  Speaker 9: long end of the curve can come down a little bit.
• 52:27
  Speaker 9: And I think people are starting to suspect that Kevin
• 52:32
  Speaker 9: Warsh really is an independent Fed chairman, that yes, the
• 52:37
  Speaker 9: president wants rates to be lower. But I think the
• 52:42
  Speaker 9: president really wants long-term rates that people are actually paying.
• 52:45
  Speaker 9: The short-term rates that the Fed affects when it hikes
• 52:48
  Speaker 9: are That's what banks are paying for to borrow Fed
• 52:52
  Speaker 9: funds and what they get paid in the interest on
• 52:54
  Speaker 9: reserves from the Fed. But if you bring down the
• 52:58
  Speaker 9: long-term rates, which I think Warsh.
• 53:00
  Speaker 1: Will be able to do.
• 53:01
  Speaker 3: Much more important.
• 53:03
  Speaker 9: Much more important to everyone. And as you said, he
• 53:06
  Speaker 9: can explain that to the president. By the way, in Bangkok,
• 53:08
  Speaker 9: he used the term superintelligence. He's obviously still in touch
• 53:14
  Speaker 9: with President Trump.
• 53:15
  Speaker 3: You know that? We've got to take a break, but.
• 53:19
  Speaker 3: Kevin is a very dear friend. When we talk, I
• 53:22
  Speaker 3: always tell him that because my experience when I was
• 53:25
  Speaker 3: at NEC in the first term, you know, I'd go
• 53:29
  Speaker 3: out and I would be speaking and I would, oftentimes
• 53:33
  Speaker 3: I would speak to him or he would call me
• 53:36
  Speaker 3: early in the morning and we'd go through some of
• 53:39
  Speaker 3: the messaging of the day on the economy. It kind
• 53:43
  Speaker 3: of gave me the lead on that stuff. And, you know,
• 53:46
  Speaker 3: You could depart from the script as long as he
• 53:49
  Speaker 3: understood what you were doing. And he does respond, incidentally,
• 53:53
  Speaker 3: to not only numbers, but he loves charts, loves charts.
• 53:59
  Speaker 3: So you show him, you know, you're describing, both of
• 54:02
  Speaker 3: you guys are describing Robert Lucas's theory of rational expectations.
• 54:07
  Speaker 3: You tighten now, inflation expectations come down, people realize that,
• 54:11
  Speaker 3: they go out and buy bonds, so forth and so on.
• 54:15
  Speaker 3: You know, if you explain it to him, he'd be
• 54:16
  Speaker 3: OK with it. And by the way, if bond rates
• 54:19
  Speaker 3: are falling, this whole period is fascinating. You know, so
• 54:22
  Speaker 3: maybe they tighten. So they raise the funds rate to four,
• 54:26
  Speaker 3: four and a quarter. And the 10-year comes down another
• 54:30
  Speaker 3: 15 or 20 basis points. And the mortgage rate comes down. Now,
• 54:34
  Speaker 3: that would make the president very happy. I got to
• 54:36
  Speaker 3: get out. They're yelling at me. Producers are yelling. All right.
• 54:39
  Speaker 3: John Carney, Breitbart.
• 54:41
  Speaker 7: E.J.
• 54:41
  Speaker 3: And Tony Unleashed Prosperity will come right back. I'm Kudlow.
• 54:45
  Speaker 3: More on the economy.
• 54:47
  Speaker 2: This is the Larry Kudlow Show. Now back to the
• 55:01
  Speaker 2: Larry Kudlow Show.
• 55:03
  Speaker 3: So we had so much fun in the long first segment.
• 55:07
  Speaker 3: You really don't have any more time. in the second segment.
• 55:10
  Speaker 3: So I'm just going to thank our guests, John Carney,
• 55:14
  Speaker 3: Breitbart News Editor for Economics and Finance, and the author
• 55:18
  Speaker 3: of the Breitbart Business Digest, and E.J. Antoni, Senior Economist
• 55:24
  Speaker 3: at Unleashed Prosperity and Heritage Foundation. We covered the waterfront, gentlemen.
• 55:29
  Speaker 3: We had just so much fun. I'm sorry. But we
• 55:32
  Speaker 3: are free enterprise, and we need to make our ads.
• 55:34
  Speaker 3: Thanks for coming on. We will talk next weekend. Folks,
• 55:38
  Speaker 3: I'm Kudlow, and we're going to take a break. And
• 55:40
  Speaker 3: on the other side, Ambassador Robert O'Brien, what are we
• 55:44
  Speaker 3: going to do about the Houthis? And are we going
• 55:46
  Speaker 3: to bomb Iran? Are we going to bomb Iran before
• 55:49
  Speaker 3: the election? How about those apples? I'm Kudlow. We'll be
• 55:53
  Speaker 3: right back.
• 56:02
  Speaker 2: From Wall Street to the White House, this is The
• 56:05
  Speaker 2: Larry Kudlow Show.
• 56:08
  Speaker 3: So, of course, Iran very much in the news. Oil
• 56:11
  Speaker 3: prices over $ 100. Constant sniping in the Persian Gulf Strait
• 56:17
  Speaker 3: of Hormuz. We've got to do something about the Houthis now.
• 56:22
  Speaker 3: Houthis are getting very militant, financed by Iran. I don't
• 56:25
  Speaker 3: know what they're using for money, but nonetheless. Let's talk
• 56:29
  Speaker 3: to a dear friend, Ambassador Robert O'Brien, former National Security Adviser.
• 56:36
  Speaker 3: He's now chairman of American Global Strategies. Robert, thank you
• 56:41
  Speaker 3: for doing this. I just thought I'd start out with
• 56:44
  Speaker 3: the Houthis. We've got to do something about the Houthis.
• 56:48
  Speaker 3: I mean, I know the Emirates are working and the
• 56:50
  Speaker 3: Saudis are working, but I think they need American help, Robert,
• 56:54
  Speaker 3: don't they?
• 56:56
  Speaker 4: Well, they certainly need American intelligence assistance with satellites and
• 57:01
  Speaker 4: drones and ISR. I think that will come, Larry. And
• 57:06
  Speaker 4: thanks for having me on. We're seeing that today there's
• 57:10
  Speaker 4: fighting with the coalition and Al-Jawaf and Taiz. And so
• 57:15
  Speaker 4: it looks like the Saudi Emirati Yemeni government coalition is
• 57:20
  Speaker 4: starting to fight back against the Houthis. And we'll still
• 57:25
  Speaker 4: see how those battles turn out. Now, the Ahmadis and
• 57:29
  Speaker 4: Saudis have very good pilots and very good equipment that
• 57:32
  Speaker 4: they bought from the U.S., you know, missiles, air-to-ground missiles,
• 57:38
  Speaker 4: top-notch jet fighters. So they should have an advantage here,
• 57:42
  Speaker 4: and let's see if they can use that technology to
• 57:45
  Speaker 4: their advantage. And with U.S. help, you know, turn the
• 57:47
  Speaker 4: hoodies back. This is a bigger issue, Larry. The Iranians
• 57:53
  Speaker 4: are not going to give up. We need to send
• 57:56
  Speaker 4: a message to Iran as well as to the Houthis.
• 58:00
  Speaker 3: Let's talk about the message to Iran. First of all,
• 58:05
  Speaker 3: one thing, oil prices have gone up. They've been rising
• 58:09
  Speaker 3: now the last 10 days or so. I'm not sure
• 58:13
  Speaker 3: what that means or why. Sometimes the oil prices go up, though,
• 58:17
  Speaker 3: when they see hostilities resuming. And as you know, the
• 58:22
  Speaker 3: President has been kind of on the warpath, at least rhetorically,
• 58:26
  Speaker 3: talking about Pickaxe Mountain. There seems to be evidence from
• 58:30
  Speaker 3: the aerial photos, the satellite photos, that the Iranians are
• 58:35
  Speaker 3: working to rebuild some of their nuclear facilities that got
• 58:40
  Speaker 3: bombed out. Pickaxe Mountain is being talked about by the President.
• 58:45
  Speaker 3: I mean, how do you rate the probabilities The president
• 58:49
  Speaker 3: might move in October before the election. Maybe that's what
• 58:53
  Speaker 3: the oil markets are predicting.
• 58:57
  Speaker 4: Well, I, you know, President Trump has access to more
• 59:01
  Speaker 4: intelligence than we've gotten. So and he's got more information.
• 59:06
  Speaker 4: But my take from the sidelines is that. it's time
• 59:11
  Speaker 4: to teach the Iranians a lesson. I mean, the Iranians
• 59:13
  Speaker 4: think that they can, they're playing a political game where
• 59:17
  Speaker 4: they're holding out and hoping that the Democrats will win
• 59:20
  Speaker 4: the midterms and that that'll in turn, you know, somehow
• 59:24
  Speaker 4: bind Trump's hands. Like this is a Carter Reagan situation
• 59:28
  Speaker 4: in 1988. Well, President Trump's not going anywhere. He's here
• 59:32
  Speaker 4: for another two years. He has the maximum power as
• 59:36
  Speaker 4: the chief executive officer of the United States in foreign
• 59:39
  Speaker 4: affairs and defense, and he'll be able to defend America
• 59:43
  Speaker 4: and take care of the Iranians, whatever happens in the election.
• 59:47
  Speaker 6: So I think it's.
• 59:50
  Speaker 4: Kind of a false... One way or the other, but
• 59:54
  Speaker 4: the point is Trump should just... you know, win this
• 59:59
  Speaker 4: thing outright. He's going to win. There's no doubt between
• 1:00:04
  Speaker 4: Scott Besson and Admiral Cooper with CENTCOM and the Treasury Department.
• 1:00:09
  Speaker 7: We're going to.
• 1:00:09
  Speaker 4: Win this thing. And the question is, can we speed
• 1:00:14
  Speaker 4: up that win and do it before the midterms and
• 1:00:16
  Speaker 4: maybe give the American people some hope that the oil
• 1:00:19
  Speaker 4: prices will come down?
• 1:00:21
  Speaker 3: You know, there's a lot more support for the war
• 1:00:23
  Speaker 3: than people think. I'm looking at a TIP poll Investors
• 1:00:28
  Speaker 3: Business Daily poll, Ragma Air. There's a lot more support
• 1:00:31
  Speaker 3: for the war than the mainstream media will give on,
• 1:00:34
  Speaker 3: will let on. But I think what you just said
• 1:00:37
  Speaker 3: is important. Besson has done a great job with all
• 1:00:42
  Speaker 3: the sanctions, onshore, offshore, banking, so forth. Terrific job. Iran's
• 1:00:49
  Speaker 3: economy is dead in the water, by and large. Even
• 1:00:51
  Speaker 3: their internal trading with neighbors seems to be coming to
• 1:00:55
  Speaker 3: a halt. But it's not going to be enough, is it, Robert?
• 1:00:57
  Speaker 3: We're going to have to go back and maybe complete
• 1:01:01
  Speaker 3: the bombing mission that was, shall we say, interrupted in April.
• 1:01:06
  Speaker 3: I mean, you're going to have to do both. You're
• 1:01:08
  Speaker 3: going to have to do the economic strangulation. But Israel
• 1:01:11
  Speaker 3: and the U.S. are planning new bombing raids, aren't they?
• 1:01:16
  Speaker 4: Well, you would think so. And President Trump has said
• 1:01:18
  Speaker 4: that the bottom line, the big red line, and there
• 1:01:22
  Speaker 4: are three red lines here, ballistic missiles, support for proxies,
• 1:01:25
  Speaker 4: but the big thing is nuclear weapons. And President Trump
• 1:01:31
  Speaker 4: is very much against nukes. He doesn't want him in
• 1:01:34
  Speaker 4: the hands of crazies. This happened in North Korea when
• 1:01:39
  Speaker 4: America didn't act. And now the North Koreans have a
• 1:01:42
  Speaker 4: massive supply of nuclear weapons that somewhat insulates them. The
• 1:01:47
  Speaker 4: Iranians are trying to do the same thing. They're trying
• 1:01:49
  Speaker 4: to get to the point where they can have a
• 1:01:51
  Speaker 4: nuclear breakout very quickly. And the nuclear weapons will insulate
• 1:01:56
  Speaker 4: them from U.S.
• 1:01:57
  Speaker 7: Attacks.
• 1:01:58
  Speaker 4: And we have to stop that immediately. So the red
• 1:02:01
  Speaker 4: line for President Trump is the resumption of the nuclear
• 1:02:04
  Speaker 4: program by the Iranians. The Iranians seem hell-bent on restructuring
• 1:02:10
  Speaker 4: and reconstituting their nuclear program. We need to stop that immediately.
• 1:02:17
  Speaker 4: I think President Trump will. I think Netanyahu will. Because
• 1:02:22
  Speaker 4: it's a problem for us. It's existential for Israel.
• 1:02:27
  Speaker 2: Yes.
• 1:02:28
  Speaker 3: I mean, you know, reports are that Trump and Netanyahu
• 1:02:33
  Speaker 3: are talking quite a bit now. Last couple of weeks.
• 1:02:37
  Speaker 3: You know, these things tend to cycle up and down.
• 1:02:40
  Speaker 3: But he's saying nice things about Netanyahu. And, you know,
• 1:02:45
  Speaker 3: he doesn't always and so forth. So when I just
• 1:02:49
  Speaker 3: think of all these things, I look at oil prices,
• 1:02:52
  Speaker 3: I look at the hooties, I look at the reports
• 1:02:55
  Speaker 3: on the satellite pictures of pickaxe and other nuclear things.
• 1:03:00
  Speaker 3: I say something's up big time. You know, something's up
• 1:03:03
  Speaker 3: big time. Scott Besson's stuff is fabulous, but there's more coming.
• 1:03:09
  Speaker 4: You know, President Trump and Netanyahu both very well.
• 1:03:15
  Speaker 10: You don't want those two guys on.
• 1:03:17
  Speaker 4: Your on your Emmys list, especially if they're cooperating. Yeah,
• 1:03:22
  Speaker 4: that's a bad opponent to have, you know, on the
• 1:03:28
  Speaker 4: other corner. So, you know, the Iranians need to be
• 1:03:32
  Speaker 4: very careful when The best thing the Iranians could do
• 1:03:35
  Speaker 4: right now is to quit their nukes, quit that addiction,
• 1:03:39
  Speaker 4: and do a deal with Trump fast. I don't think
• 1:03:44
  Speaker 4: they will because they're motivated by extremism and religious fervor.
• 1:03:48
  Speaker 4: They're not rational actors. That's preventing them from doing a
• 1:03:55
  Speaker 4: deal because they could get a good deal and end
• 1:03:58
  Speaker 4: the war and treat their people better, but unfortunately, the
• 1:04:03
  Speaker 4: Mullahs and Ayatollahs and IRGC thugs just aren't interested in,
• 1:04:07
  Speaker 4: you know, helping the Iranian people and making our country better.
• 1:04:13
  Speaker 3: Trump knows, and he's learned, that there's no such thing
• 1:04:18
  Speaker 3: as a deal with Iran. I think he knows that, right?
• 1:04:21
  Speaker 3: I mean, he just, he tried, he did the best
• 1:04:24
  Speaker 3: he could. Nobody can fault him. But he, now it's
• 1:04:27
  Speaker 3: time to move on and he's got to be, it's,
• 1:04:30
  Speaker 3: It's going to be tough stuff whenever it happens. You're right.
• 1:04:33
  Speaker 3: Who knows?
• 1:04:33
  Speaker 4: You turn Iran into Afghanistan. You take away the Iranian oil,
• 1:04:39
  Speaker 4: and they become a big stand. Right. Terrible for the
• 1:04:44
  Speaker 4: Iranian people, unfortunately, for the people in the country being
• 1:04:47
  Speaker 4: ruled by the Mullahs and the Ayatollahs and the IRGC.
• 1:04:52
  Speaker 4: reduce their ability to threaten other countries in the world,
• 1:04:55
  Speaker 4: to threaten Saudi, to threaten Israel, to threaten Europe, to
• 1:04:58
  Speaker 4: threaten the United States of America. And the way to
• 1:05:03
  Speaker 4: do that is to permanently just end their oil production capability.
• 1:05:09
  Speaker 3: That's what they're going to hit, too. They're going to
• 1:05:11
  Speaker 3: hit the oil infrastructure. Robert O'Brien, former National Security Advisor.
• 1:05:17
  Speaker 3: Chairman of American Global Strategies. Thank you, Robert. Appreciate it very,
• 1:05:20
  Speaker 3: very much. Folks, we'll take a quick break. And then
• 1:05:23
  Speaker 3: my great pal, Brian Kilmeade, co-host of Fox News, Fox
• 1:05:26
  Speaker 3: and Friends, got himself a new book out, new bestselling book,
• 1:05:30
  Speaker 3: Uniting the States, Six Crucial Moments. I'm Kudlow. He'll be right.
• 1:05:35
  Speaker 3: We'll be all right back.
• 1:05:37
  Speaker 1: Larry Kudlow. Now, back to The Larry Kudlow Show.
• 1:05:54
  Speaker 3: So, my pal Brian Kilmeade, who's the hardest worker in media,
• 1:06:01
  Speaker 3: co-hosting Fox and Friends every morning on Fox News, radio host,
• 1:06:08
  Speaker 3: Brian Kilmeade Show. And he's got his own show at night,
• 1:06:15
  Speaker 3: Sunday night, I guess. And he's got another book out,
• 1:06:18
  Speaker 3: Uniting the States... Six Crucial Moments That Forged the American Miracle.
• 1:06:25
  Speaker 3: I started skimming it last night. Pretty darn interesting book. Brian, welcome,
• 1:06:29
  Speaker 3: as always, sir. You know whenever you want to come on,
• 1:06:33
  Speaker 3: you have an open invitation. My pleasure. So I want
• 1:06:36
  Speaker 3: to tell you, I.
• 1:06:37
  Speaker 10: Have to first argue with your open invitation. You are
• 1:06:43
  Speaker 10: a harder worker than I am. You're working Sunday. You
• 1:06:46
  Speaker 10: got the radio show on Saturday. You're going five days
• 1:06:49
  Speaker 10: a week at 4 o'clock Eastern time, and it's the
• 1:06:52
  Speaker 10: number one show on the Fox Business Channel. Then you
• 1:06:54
  Speaker 10: do hits, and sometimes the whole hour show in the afternoon,
• 1:06:58
  Speaker 10: and any time something happens in the economy, you're calling,
• 1:07:00
  Speaker 10: let alone what you're doing when you're not on the clock,
• 1:07:03
  Speaker 10: trying to help out the Treasury Department while still keeping
• 1:07:07
  Speaker 10: the country on the straight and narrow. So I'm going
• 1:07:09
  Speaker 10: to argue with your premise.
• 1:07:11
  Speaker 3: You're terrific. I love you. You're terrific, but you are indefatigable.
• 1:07:15
  Speaker 3: I'm hanging in there and having a good time, and
• 1:07:17
  Speaker 3: the Lord has been very good to me. But I'm
• 1:07:20
  Speaker 3: really interested in this book. Now, I will read it
• 1:07:23
  Speaker 3: more carefully, but I was skimming it last night and
• 1:07:27
  Speaker 3: the night before. First of all, Washington is always, for
• 1:07:31
  Speaker 3: a variety of reasons, you cite the military prowess, and
• 1:07:34
  Speaker 3: you're right, but he's in a class by himself. The
• 1:07:38
  Speaker 3: thing that I loved, the two things that I really loved,
• 1:07:42
  Speaker 3: was you're mentioning Thomas Jefferson and the Louisiana Purchase, which
• 1:07:50
  Speaker 3: was so important. Now, maybe because I'm an economics guy,
• 1:07:54
  Speaker 3: but it changes everything. It just opens the West and
• 1:08:00
  Speaker 3: makes us a vast, vast country. I mean, people forget
• 1:08:04
  Speaker 3: that and how important that was. I mean, it just
• 1:08:07
  Speaker 3: changed everything. I mean, Jefferson was just such a smart guy.
• 1:08:11
  Speaker 3: It's got to be one of the best purchases in
• 1:08:14
  Speaker 3: the history of purchases in real estate. Now, the other
• 1:08:18
  Speaker 3: one that I really loved was James Madison, okay? who,
• 1:08:23
  Speaker 3: working with Andrew Jackson, saved us in the War of 1812.
• 1:08:28
  Speaker 3: People tend to forget. They decimated Washington. They ripped the
• 1:08:33
  Speaker 3: White House down. They ripped the Congress down. We almost
• 1:08:37
  Speaker 3: lost that war. And Madison was the president, and again,
• 1:08:41
  Speaker 3: working with Andrew Jackson and some other important generals from
• 1:08:45
  Speaker 3: the Revolutionary War. Man, that is really important, and you're
• 1:08:48
  Speaker 3: highlighting it. I love it.
• 1:08:51
  Speaker 10: So you're going to love this, Larry. As often as
• 1:08:53
  Speaker 10: you've been in the White House, I did a special
• 1:08:55
  Speaker 10: on Fox Nation, shot it over the last eight months
• 1:08:57
  Speaker 10: of all six moments, crucial moments. And I just didn't
• 1:09:00
  Speaker 10: wing it. My Rolodex used to be full with athletes
• 1:09:04
  Speaker 10: and sports guys. That's how I got hired. Then it
• 1:09:06
  Speaker 10: was political people, and it's still there. But now, after
• 1:09:09
  Speaker 10: doing 72 episodes of What Made America Great on Fox Nation,
• 1:09:13
  Speaker 10: it's full of historians. So I've been talking to them
• 1:09:15
  Speaker 10: for the last three years about what their moment was
• 1:09:18
  Speaker 10: that still fascinates them. And one of which is the
• 1:09:21
  Speaker 10: War of 1812 and actually 1814, where we take on
• 1:09:24
  Speaker 10: the British, but we got no standing army. They got
• 1:09:27
  Speaker 10: this killer Navy, and they want a rematch from the Revolution.
• 1:09:30
  Speaker 10: And one of the first things they did is they
• 1:09:33
  Speaker 10: go right through the East Coast. They go right to Washington.
• 1:09:38
  Speaker 10: We got a small little militia. They get blown out.
• 1:09:41
  Speaker 10: Madison barely escapes. They had dinner on the table. His
• 1:09:44
  Speaker 10: wife famously grabbed Washington's portrait and they load up a
• 1:09:48
  Speaker 10: wagon and they leave. If you want to see a
• 1:09:50
  Speaker 10: desperate America, how about a five foot two inch president
• 1:09:54
  Speaker 10: sitting alone on a horse suffering from epilepsy? watching the capital,
• 1:10:01
  Speaker 10: the whole city burn, wondering if his wife was still
• 1:10:04
  Speaker 10: alive and if his country would actually rally around him
• 1:10:08
  Speaker 10: or was the great American experiment over? And the answer
• 1:10:11
  Speaker 10: was we will. And we would. Because our whole country
• 1:10:15
  Speaker 10: is about resourcefulness and resilience. And it's not just war.
• 1:10:19
  Speaker 10: It's that purchase that you just brought up. Jefferson had
• 1:10:23
  Speaker 10: this vision and Hamilton had this vision. Our straight of
• 1:10:25
  Speaker 10: her moves was the Mississippi. And I guess it was
• 1:10:29
  Speaker 10: control of it. Napoleon, the New Orleans. And Jefferson says,
• 1:10:34
  Speaker 10: I got a problem with this. I got to go
• 1:10:36
  Speaker 10: buy it or we're going to have to fight for it.
• 1:10:38
  Speaker 10: Because this guy is a megalomaniac and he's not going
• 1:10:41
  Speaker 10: to let us grow and he can strangle our commerce,
• 1:10:44
  Speaker 10: which is right up your alley. So he tries to
• 1:10:46
  Speaker 10: make a deal for 18 months. Napoleon wasn't budging. But things,
• 1:10:50
  Speaker 10: as you know, timing is everything. And with that time,
• 1:10:53
  Speaker 10: there was a slave rebellion of what we now know
• 1:10:55
  Speaker 10: as Haiti. The British start fomenting another sense they've got
• 1:10:58
  Speaker 10: to get a war. He wants to get Austria. And
• 1:11:00
  Speaker 10: he goes, you know what? I don't need these colonies anymore.
• 1:11:03
  Speaker 10: It's costing too much. And that's when Monroe knocks on
• 1:11:06
  Speaker 10: his door and says, I need New Orleans. And he said, yeah,
• 1:11:11
  Speaker 10: but I want you to take everything. And he says, what?
• 1:11:15
  Speaker 10: I want you to take 500,000 acres and which would
• 1:11:19
  Speaker 10: turn into 15 states. Now he can't text back to
• 1:11:23
  Speaker 10: Jefferson and say, can I do this? So he said,
• 1:11:25
  Speaker 10: I'm taking it. And they go, but I only have
• 1:11:28
  Speaker 10: $ 4 million. He goes, well, you're going to need 15.
• 1:11:31
  Speaker 10: So where's he going to get it? They take out
• 1:11:33
  Speaker 10: a massive loan and then they got to get it
• 1:11:35
  Speaker 10: through Congress. You think a ballroom is tough to get
• 1:11:38
  Speaker 10: through Congress? Try doubling the size of the country. I
• 1:11:42
  Speaker 10: just loved researching this and seeing the dialogue and I
• 1:11:45
  Speaker 10: build every chapter around the quotes. So no one thinks
• 1:11:49
  Speaker 10: I'm spinning or exaggerating. Uh, I want people to understand
• 1:11:53
  Speaker 10: what really happened back then.
• 1:11:55
  Speaker 3: So, um, Jefferson also was so smart as former ambassador
• 1:12:00
  Speaker 3: of France, right? He was there for quite a while.
• 1:12:02
  Speaker 3: He kind of understood. I mean, he was there before
• 1:12:06
  Speaker 3: and during the revolution, the crazy Robespierre revolution, and then
• 1:12:10
  Speaker 3: the onset of Napoleon. So he was just a clever
• 1:12:13
  Speaker 3: chap and awfully good penman, too, writing the most important
• 1:12:18
  Speaker 3: words probably in history, but certainly in the English language
• 1:12:21
  Speaker 3: for the Declaration of Independence. But the financier part was really,
• 1:12:26
  Speaker 3: I mean, it just changes everything, Brian. That's how important
• 1:12:31
  Speaker 3: it is. And, you know, we have a real estate
• 1:12:33
  Speaker 3: guy in the White House today who did what? Got
• 1:12:37
  Speaker 3: a phenomenal deal with Greenland. Now, Greenland's not like the
• 1:12:41
  Speaker 3: Louisiana Purchase, but I'll tell you, it's very important for
• 1:12:45
  Speaker 3: our national security and the security of the hemisphere, right?
• 1:12:50
  Speaker 3: And the Greenland... insulates what I call the Trump corollary
• 1:12:57
  Speaker 3: to the Monroe Doctrine. It protects the entire Western Hemisphere.
• 1:13:02
  Speaker 3: It also may help Europe, but it mostly protects the
• 1:13:05
  Speaker 3: Western Hemisphere from the Chinese and the Russians. So it's
• 1:13:08
  Speaker 3: just interesting, okay? I'm saying history has a way of
• 1:13:11
  Speaker 3: repeating itself.
• 1:13:13
  Speaker 10: No, no, it's exactly it. But I'm going to give
• 1:13:15
  Speaker 10: people another sense. All I hear about, when you're not
• 1:13:18
  Speaker 10: on the air, people are worried about how divided we are.
• 1:13:21
  Speaker 10: Everyone's like, you know, are we ever going to come together?
• 1:13:23
  Speaker 10: Are we ever going to compromise on anything again? I
• 1:13:25
  Speaker 10: know you get that a lot, too. And I will
• 1:13:28
  Speaker 10: say this. We have always argued. We've always had disagreements.
• 1:13:32
  Speaker 10: Hamilton told Jefferson, go get New Orleans. But when Jefferson
• 1:13:37
  Speaker 10: came back with the Louisiana Territory, Hamilton, arguably the best
• 1:13:41
  Speaker 10: finance guy we ever had, said absolutely not. It's going
• 1:13:45
  Speaker 10: to diminish the property values for the entire country because
• 1:13:48
  Speaker 10: you're doubling the size of it. And we want to
• 1:13:50
  Speaker 10: be a small European country. We don't want to be
• 1:13:53
  Speaker 10: this big behemoth. It's going to be impossible to control.
• 1:13:56
  Speaker 10: So I'm just telling you, very smart people have been
• 1:13:59
  Speaker 10: disagreeing in America for their passionately forever. So for people
• 1:14:05
  Speaker 10: listening to us right now, this is very typical and
• 1:14:09
  Speaker 10: it's not something unparalleled. It's always happened.
• 1:14:12
  Speaker 8: I agree.
• 1:14:13
  Speaker 3: I mean, I'm a hundred percent. We've always had disagreements. Um,
• 1:14:17
  Speaker 3: you know, Principle disagreements are better than unprincipled disagreements. We're
• 1:14:22
  Speaker 3: having both right now, it seems to me. Socialism versus capitalism, okay.
• 1:14:26
  Speaker 3: And then, you know, there's the usual mudslinging as we
• 1:14:29
  Speaker 3: get to the election. But you're right. America has a whole... Look,
• 1:14:34
  Speaker 3: it's a free country. That's what part of our democracy
• 1:14:38
  Speaker 3: is terrific. By the way, Madison was a good Princeton guy,
• 1:14:41
  Speaker 3: I might add. That's another reason I really like him.
• 1:14:44
  Speaker 1: Oh, really?
• 1:14:45
  Speaker 10: Okay.
• 1:14:45
  Speaker 3: Brian Kilmeade... Are the Republicans closing the gap? I mean,
• 1:14:51
  Speaker 3: I think they're okay in the Senate, but in the House,
• 1:14:54
  Speaker 3: are they closing the gap, speaking of disagreements, or you
• 1:14:57
  Speaker 3: think not?
• 1:15:01
  Speaker 10: This is the one thing I can't figure out. The
• 1:15:04
  Speaker 10: Hispanic vote. The Hispanic vote is going to make or
• 1:15:07
  Speaker 10: break those gerrymandered districts. The Hispanic vote is going to
• 1:15:11
  Speaker 10: help or hurt in Michigan and Ohio. It's not as
• 1:15:13
  Speaker 10: big as it is in Texas. I understand that. And
• 1:15:16
  Speaker 10: would it help deliver some of those enclaves in California?
• 1:15:21
  Speaker 10: I think the president should focus in the next three
• 1:15:23
  Speaker 10: weeks and say, look, I'm doing what you wanted me
• 1:15:26
  Speaker 10: to do. I sealed the border. I made sure the
• 1:15:29
  Speaker 10: people that are here legally have the access to the
• 1:15:31
  Speaker 10: jobs they're supposed to and communicate that they're not going
• 1:15:35
  Speaker 10: around picking up everybody that looks Hispanic. They're going after
• 1:15:38
  Speaker 10: people who are criminals or suspected of being criminals. They
• 1:15:43
  Speaker 10: severely overstayed their visas and refused to go to desk appearances.
• 1:15:47
  Speaker 10: I think in some cases it's being misinterpreted because Democrats
• 1:15:51
  Speaker 10: are messaging it as if he's targeting Hispanics.
• 1:15:53
  Speaker 7: I think that would be key.
• 1:15:54
  Speaker 10: And for the president to get out there personally, Larry,
• 1:15:57
  Speaker 10: I laugh when I watch these other channels and they
• 1:15:59
  Speaker 10: say the president's not popular. Why is he going out?
• 1:16:02
  Speaker 10: Does he understand he's always underpolled? And number two, his
• 1:16:06
  Speaker 10: success is getting his supporters out. And he goes right
• 1:16:10
  Speaker 10: into these red areas and gets.
• 1:16:11
  Speaker 7: Them excited again.
• 1:16:12
  Speaker 10: It's like a celebrity coming to visit.
• 1:16:15
  Speaker 3: Brian Kilmeade. Brian Kilmeade. The best of the best. The
• 1:16:19
  Speaker 3: book is Uniting the States. Six Crucial Moments. that forged
• 1:16:25
  Speaker 3: the American miracle. Brian Kilmeade. Go out and buy it, folks.
• 1:16:29
  Speaker 3: Thank you, Brian. Folks, we'll take a break and we'll
• 1:16:31
  Speaker 3: do some stock market work on the other side.
• 1:16:45
  Speaker 2: It's the Larry Kudlow Show. Free market prosperity starts here. Now,
• 1:16:50
  Speaker 2: here's Larry Kudlow.
• 1:16:52
  Speaker 3: Welcome back, everybody. Hour three. By the way, you can
• 1:16:56
  Speaker 3: live stream us on the internet if that works for you. LarryKudlowShow.com, LarryKudlowShow.com.
• 1:17:04
  Speaker 3: Plays all around the country, across the globe, throughout the
• 1:17:06
  Speaker 3: solar system, including the Milky Way. By the way, join
• 1:17:12
  Speaker 3: me tomorrow, Sunday. Sunday Morning Futures on Fox News Network,
• 1:17:20
  Speaker 3: Fox News, 10 to 11 p.m. And during the week,
• 1:17:25
  Speaker 3: Fabulous Fox Business, the name of the show is Kudlow,
• 1:17:27
  Speaker 3: 4 to 5 p.m. every day. And what an interesting
• 1:17:34
  Speaker 3: week for stocks, huh? The bears are out. The bears
• 1:17:38
  Speaker 3: are out licking their chops. I don't really think it's justified.
• 1:17:44
  Speaker 3: Corrections come and go, and now everybody wants to sell tech.
• 1:17:48
  Speaker 3: AI is collapsing. Inflation is rising. The Fed might tighten. Oh,
• 1:17:54
  Speaker 3: my gosh. Profits are still very strong, though. The economy
• 1:17:58
  Speaker 3: is very strong. And actually, bond yields, as we discussed
• 1:18:04
  Speaker 3: during the economic section, bond yields fell this week. The
• 1:18:08
  Speaker 3: 10-year dropped 17 basis points down to 507.
• 1:18:10
  Speaker 10: So....
• 1:18:13
  Speaker 3: Things are never as bad as the bears want us
• 1:18:17
  Speaker 3: to believe. So, let's talk to our two distinguished experts,
• 1:18:22
  Speaker 3: Stephanie Link, Hightower Advisors, Chief Investment Strategist, Head of Investment Solutions,
• 1:18:29
  Speaker 3: and Jim LeCamp, Morgan Stanley Executive Director and Senior Portfolio
• 1:18:34
  Speaker 3: Management Director. So, Stephanie, it's good that you're here because
• 1:18:39
  Speaker 3: I sleep better knowing that you're still investing. Analyzing. I mean,
• 1:18:45
  Speaker 3: I just love this. So we had, I don't know,
• 1:18:48
  Speaker 3: the NASDAQ fell. Big deal. The Dow was up a
• 1:18:52
  Speaker 3: little bit. The S & P is not that far
• 1:18:55
  Speaker 3: from its all-time highs. I mean, the bears are just
• 1:18:58
  Speaker 3: out there, and I don't really think it's justified. But
• 1:19:01
  Speaker 3: more importantly, what do you think?
• 1:19:04
  Speaker 12: Yeah, and I don't sleep very well anyway, so that's
• 1:19:09
  Speaker 12: my job to not sleep. But I think it felt
• 1:19:12
  Speaker 12: worse last week for investors because we know that investors
• 1:19:17
  Speaker 12: are very heavily invested in technology. And technology and comm services,
• 1:19:23
  Speaker 12: communication services... Together, 48% waiting in the S & P 500. Now,
• 1:19:29
  Speaker 12: I'm not there. I'm not at 48%, but I do
• 1:19:31
  Speaker 12: have a large position, probably 20%. That's a lot. But
• 1:19:36
  Speaker 12: it didn't feel good, right? Because tech was down almost
• 1:19:38
  Speaker 12: 7% on the week. However, we had a rotation. Energy
• 1:19:43
  Speaker 12: was up four. Staples up five. Healthcare up four. So
• 1:19:47
  Speaker 12: we're seeing a rotation, which is sort of healthy because
• 1:19:51
  Speaker 12: we know what tech has done over the last several years.
• 1:19:53
  Speaker 12: It's really driven the higher prices. And so I think
• 1:19:59
  Speaker 12: even with the concerns about rates and inflation, the important
• 1:20:03
  Speaker 12: thing to what you said earlier is there's no impact
• 1:20:06
  Speaker 12: on GDP. The Atlanta Fed tracker last week came in
• 1:20:09
  Speaker 12: at 3.6%. And while CPI and PPI were hot, Retail
• 1:20:14
  Speaker 12: sales were better than expected, and that was confirmed by
• 1:20:18
  Speaker 12: the big six banks that reported last week. They talked
• 1:20:22
  Speaker 12: about the consumer being resilient. Tax receipts are up. Initial
• 1:20:26
  Speaker 12: claims are down. Industrial production was up six months in
• 1:20:30
  Speaker 12: a row. So, like, there's a lot still good happening
• 1:20:33
  Speaker 12: in the economy, and that should bode well for earnings overall.
• 1:20:37
  Speaker 12: And we just had a mini rotation, and that's okay.
• 1:20:40
  Speaker 12: That's a good setup into.
• 1:20:42
  Speaker 6: Earnings, I think.
• 1:20:43
  Speaker 3: What's... I'm going to get to Jim in one sec,
• 1:20:46
  Speaker 3: but just to follow through, everybody's talking about this CoreWeave.
• 1:20:51
  Speaker 9: Yeah.
• 1:20:52
  Speaker 3: It's a big AI cloud provider of some kind. You
• 1:20:55
  Speaker 3: know more about this than I do. It's sold off
• 1:20:58
  Speaker 3: quite a bit. There's worries about debt and all the
• 1:21:03
  Speaker 3: bonds they've sold. Can they meet their obligations? Blah, blah, blah.
• 1:21:08
  Speaker 3: How important or unimportant is that?
• 1:21:10
  Speaker 12: Well, I think you want to be very careful in
• 1:21:13
  Speaker 12: picking and choosing within semiconductors and technology and AI plays.
• 1:21:18
  Speaker 12: CoreWeave is much more speculative because it has $ 50 billion
• 1:21:22
  Speaker 12: in debt. And by the way, Oracle has $ 167 billion
• 1:21:26
  Speaker 12: in debt. Those two I think you want to avoid.
• 1:21:29
  Speaker 12: But you look at something like NVIDIA, for example. They
• 1:21:33
  Speaker 12: actually produced $ 48 billion in cash in their quarter. They're
• 1:21:37
  Speaker 12: going to do $ 300 billion next year in free cash flow. Broadcom,
• 1:21:42
  Speaker 12: $ 14 billion in cash per quarter. Micron has $ 68 billion
• 1:21:46
  Speaker 12: in net cash. So I don't think you want to
• 1:21:48
  Speaker 12: sell everything. You want to pick and choose and look
• 1:21:51
  Speaker 12: for the quality, good balance sheets with dominant market share.
• 1:21:56
  Speaker 12: And on the pullbacks, That's where you go. You go
• 1:21:59
  Speaker 12: to the strong players and you avoid some of these others.
• 1:22:02
  Speaker 12: And I don't think CoreWeave is going to go bankrupt
• 1:22:04
  Speaker 12: by any means. I mean, by the way, NVIDIA has
• 1:22:06
  Speaker 12: an investment with them. They can easily buy them if
• 1:22:09
  Speaker 12: they wanted to. They're not going to, I don't think.
• 1:22:11
  Speaker 12: But I do think that we're overdoing it. And by
• 1:22:14
  Speaker 12: the way, you mentioned, you know, yields actually fell on
• 1:22:17
  Speaker 12: the week. So I think we're getting a little ahead
• 1:22:20
  Speaker 12: of ourselves in terms of where yields are going. And
• 1:22:22
  Speaker 12: people are talking about 6%, 10-year. I just, I don't
• 1:22:25
  Speaker 12: see it.
• 1:22:26
  Speaker 3: Jim LeCamp, do you see it? And what do you
• 1:22:29
  Speaker 3: see for this whole story?
• 1:22:31
  Speaker 5: Yeah, so two things can be true at the same time.
• 1:22:34
  Speaker 5: And one thing that can be true is that the
• 1:22:36
  Speaker 5: long-term picture is still pretty favorable. As Stephanie mentioned, the
• 1:22:40
  Speaker 5: economy is really doing pretty well. But the other thing
• 1:22:45
  Speaker 5: that can be true, though, at the same time, is
• 1:22:47
  Speaker 5: that there are stresses hitting the market that the market
• 1:22:50
  Speaker 5: was unprepared for, did not position for. And so there's disruption.
• 1:22:58
  Speaker 5: When you came into this year, not one firm said
• 1:23:01
  Speaker 5: the 10-year was going to go to 5.3%, not one,
• 1:23:05
  Speaker 5: and that the dollar was going to rally like it did,
• 1:23:07
  Speaker 5: and that oil prices would be at $ 100. Nobody gamed that.
• 1:23:12
  Speaker 5: And so when you get there, you have major adjustments
• 1:23:16
  Speaker 5: that have to take place in portfolios, and that's what's happening.
• 1:23:20
  Speaker 5: And that could go on for a while. The good news...
• 1:23:24
  Speaker 5: is that we are seasonally upon that time that historically
• 1:23:29
  Speaker 5: has been fantastic. If you go to the October of
• 1:23:34
  Speaker 5: the midterm election year through the following October, your odds
• 1:23:40
  Speaker 5: are near 100% of higher markets with an average gain
• 1:23:45
  Speaker 5: of over 14%. And now that we've had a correction,
• 1:23:49
  Speaker 5: I think the market is positioning itself for a rally.
• 1:23:54
  Speaker 5: I don't know that we're there yet because we're not,
• 1:23:57
  Speaker 5: you know, from standard deviation work, we're not terribly oversold
• 1:24:01
  Speaker 5: and we don't have as much negative sentiment. The VIX
• 1:24:05
  Speaker 5: has not rallied like you would typically see at a
• 1:24:08
  Speaker 5: market bottom. So I think we probably have a little
• 1:24:11
  Speaker 5: more consolidation to do, but I would suspect that we're
• 1:24:14
  Speaker 5: going to have a fourth quarter rally. It may come
• 1:24:18
  Speaker 5: along a But, yeah, this week we're going to have
• 1:24:22
  Speaker 5: a lot of earnings that come out. And the earnings
• 1:24:25
  Speaker 5: story is still very, very good. They've kind of taken
• 1:24:29
  Speaker 5: the October rate hike off the table. Who knows what
• 1:24:32
  Speaker 5: happens now in December. But I think the market's going
• 1:24:37
  Speaker 5: to be okay. We might just have a little more
• 1:24:39
  Speaker 5: chop in front of us here.
• 1:24:42
  Speaker 3: You know Ken Fisher, both of you. Very, very, very
• 1:24:44
  Speaker 3: smart guy. A dear friend of mine. He's a big
• 1:24:48
  Speaker 3: apostle of this. Post-midterm, the year after the midterms, is
• 1:24:52
  Speaker 3: a great year for stocks. He was on the show,
• 1:24:55
  Speaker 3: came on set. I mean, I've known him forever. He's
• 1:24:57
  Speaker 3: an awfully smart fellow, good guy. But he was making
• 1:25:02
  Speaker 3: that same case, that you're coming into a period, the
• 1:25:06
  Speaker 3: year after the midterms, when, I don't know, technically, for
• 1:25:10
  Speaker 3: whatever reasons, there may be a million reasons, or there
• 1:25:12
  Speaker 3: may be one reason, but it's a bullish sign. You know,
• 1:25:17
  Speaker 3: you mentioned the VIX. I jumped up to 20. Pete
• 1:25:22
  Speaker 3: Najarian is always telling me about the VIX. Should I
• 1:25:26
  Speaker 3: be worried about 20s? I don't.
• 1:25:29
  Speaker 6: It's not high enough.
• 1:25:31
  Speaker 5: If you look at where the market has typically turned higher,
• 1:25:34
  Speaker 5: it's after you've had a bigger spike than that in
• 1:25:38
  Speaker 5: the VIX. However, Friday it did pop up, and you'd
• 1:25:42
  Speaker 5: like to see it go a little higher, but it
• 1:25:46
  Speaker 5: is showing a little bit. of um and a mentality
• 1:25:52
  Speaker 5: towards it might be getting there monday or tuesday if
• 1:25:55
  Speaker 5: we if we wash out a little more if it
• 1:25:57
  Speaker 5: did get to the mid-20s i'd be very very interested
• 1:26:00
  Speaker 5: in buying the market i.
• 1:26:02
  Speaker 3: Can't wait stephanie banks make banks making money they just
• 1:26:06
  Speaker 3: didn't make enough money to satisfy wall street is that.
• 1:26:08
  Speaker 12: What happened Yeah, well, I think the banks always kind
• 1:26:11
  Speaker 12: of trade crummy around earnings because I think they're all
• 1:26:15
  Speaker 12: so complex. And so it takes a long, long time
• 1:26:18
  Speaker 12: to figure out what the puts and the takes are.
• 1:26:20
  Speaker 12: I have often said, if you can understand and analyze
• 1:26:24
  Speaker 12: a bank and you can be accurate in terms of
• 1:26:27
  Speaker 12: analyzing a bank, you can cover any sector because banks
• 1:26:30
  Speaker 12: are really hard. So we had disappointments in capital markets
• 1:26:34
  Speaker 12: and M & A. But typically, third quarter is seasonally
• 1:26:38
  Speaker 12: slower than the second quarter. And we know second quarter
• 1:26:40
  Speaker 12: was lights out. So that actually came to fruition. That
• 1:26:45
  Speaker 12: part of the business was not good. But other parts
• 1:26:48
  Speaker 12: were really good. Net interest income, net interest margins going
• 1:26:52
  Speaker 12: higher and guidance going higher. You had loan growth up
• 1:26:58
  Speaker 12: 9% on average for the big six banks. You had
• 1:27:01
  Speaker 12: credit quality is actually quite, quite good. Delinquencies are down
• 1:27:06
  Speaker 12: and net charge offs are down and provisions are down.
• 1:27:08
  Speaker 12: So there's a lot to like for the banks, especially
• 1:27:11
  Speaker 12: given the valuations. And oh, by the way, because the
• 1:27:13
  Speaker 12: banks in September fell about 8%. So the expectations fell,
• 1:27:19
  Speaker 12: and then the stock sold off. But then it was interesting.
• 1:27:21
  Speaker 12: On Friday, they started to rally again. I personally started
• 1:27:25
  Speaker 12: buying more Wells Fargo because I think that turnaround story
• 1:27:28
  Speaker 12: is really very interesting. Now that the asset cap has
• 1:27:31
  Speaker 12: been lifted for over a year, they can now invest
• 1:27:34
  Speaker 12: back into their business. So I'm looking for special situations,
• 1:27:37
  Speaker 12: but I think the banks are in really good shape.
• 1:27:39
  Speaker 12: Capital levels are extraordinary. So I think those are an
• 1:27:42
  Speaker 12: interesting sector.
• 1:27:43
  Speaker 3: They all got spanked. The controller, the currency for debanking, political, religious,
• 1:27:50
  Speaker 3: gun controls, whatever. I mean, that was a bad period
• 1:27:54
  Speaker 3: in their history. They won't do it again. I don't
• 1:27:58
  Speaker 3: think they'll do it again.
• 1:27:59
  Speaker 12: I don't think they're going to be allowed to do
• 1:28:01
  Speaker 12: it again. I think we do have deregulation. That's certainly helping,
• 1:28:04
  Speaker 12: but it's never going to be completely a free-for-all ever again.
• 1:28:08
  Speaker 12: Not since we, you know, the great financial crisis was
• 1:28:11
  Speaker 12: obviously a crisis.
• 1:28:12
  Speaker 6: And so.
• 1:28:13
  Speaker 12: They have excess capital, but that's why I think that
• 1:28:16
  Speaker 12: the stocks are interesting because they're growing.
• 1:28:19
  Speaker 5: If you look at the asset managers, they're doing extremely well.
• 1:28:23
  Speaker 5: The wealth managers are doing extremely well. You've got the
• 1:28:28
  Speaker 5: baby boomers have the biggest wealth of any generation in
• 1:28:32
  Speaker 5: the history of the United States. They are stock investors.
• 1:28:36
  Speaker 5: They're selling their businesses as they retire. They're liquidity events
• 1:28:42
  Speaker 5: in this group are just exploding. So I think the
• 1:28:47
  Speaker 5: wealth management industry really looks favorable for several years to come.
• 1:28:52
  Speaker 3: I often wonder what business they're in. They're in a
• 1:28:59
  Speaker 3: lot of business.
• 1:29:00
  Speaker 5: Of course, Texas may be doing a little better than
• 1:29:03
  Speaker 5: the rest of the economy, but it's all happening around here,
• 1:29:08
  Speaker 5: whether it's real estate businesses, oil and gas businesses, or
• 1:29:12
  Speaker 5: just traditional small businesses, construction businesses. Everything's going well.
• 1:29:17
  Speaker 3: Every day I pass the new J.P. Morgan building on
• 1:29:24
  Speaker 3: 47th Street. Yeah, 47th Street. I don't know. There's a
• 1:29:30
  Speaker 3: lot of money in there, but the bank's moving to Dallas.
• 1:29:34
  Speaker 3: They have more employees in Texas now than New York.
• 1:29:38
  Speaker 3: But they built this gigantic new building. I mean, Jamie
• 1:29:44
  Speaker 3: Dimon's a good man. He's a smart guy. I guess
• 1:29:46
  Speaker 3: he knows what he's doing, but jeez.
• 1:29:49
  Speaker 12: I think the most important takeaway, though, from the big
• 1:29:52
  Speaker 12: banks is not only are consumers doing well and they
• 1:29:55
  Speaker 12: are consuming. And as I've mentioned earlier, retail sales of
• 1:29:58
  Speaker 12: five point one percent X gasoline for the month last month.
• 1:30:02
  Speaker 12: But I think it's also important that they said Bank
• 1:30:04
  Speaker 12: of America in particular said it's not just the high end.
• 1:30:07
  Speaker 12: And we know the high end is doing well because
• 1:30:09
  Speaker 12: of the wealth effect, because they own stocks, because they
• 1:30:11
  Speaker 12: own homes. But it's the lower end that's starting to
• 1:30:14
  Speaker 12: do better because their wage growth is growing more than
• 1:30:17
  Speaker 12: the high end. So I think it's really sort of
• 1:30:19
  Speaker 12: an interesting time for the consumer. I think discretionary stocks
• 1:30:23
  Speaker 12: are screaming by.
• 1:30:25
  Speaker 5: Middle class is doing better, too. You've got people working
• 1:30:28
  Speaker 5: on data centers.
• 1:30:30
  Speaker 3: We'll hit the middle class. Other side of the break.
• 1:30:32
  Speaker 3: I'll take a break. Stephanie Link, Hightower Advisors, Chief Investment
• 1:30:38
  Speaker 3: Strategist and Head of Investment Solutions in Jim LeCamp and
• 1:30:41
  Speaker 3: Morgan Stanley. We'll hit consumers on the other side. Stay
• 1:30:45
  Speaker 3: with us.
• 1:30:46
  Speaker 2: This is the Larry Kudlow Show. Now back to the
• 1:31:01
  Speaker 2: Larry Kudlow Show.
• 1:31:03
  Speaker 3: Talking stocks. Stephanie Link, Hightower Advisors, Investment Solutions. Jim LeCamp,
• 1:31:10
  Speaker 3: Morgan Stanley, Executive Director. Senior Portfolio Management Director down in Texas.
• 1:31:18
  Speaker 3: We're talking consumers. I'm just looking at the sheets here.
• 1:31:23
  Speaker 3: This has been a great year for consumer staples, up 13.6% year-to-date,
• 1:31:29
  Speaker 3: but consumer discretionary minus 4.1%. So there's a big difference there.
• 1:31:37
  Speaker 3: What do you make of that, Stephanie?
• 1:31:39
  Speaker 12: Well, I think the rally in the staples is really
• 1:31:42
  Speaker 12: just kind of a flight to quality defensive. And by
• 1:31:45
  Speaker 12: the way, some of those stocks, most of the stocks
• 1:31:48
  Speaker 12: have derated huge. I mean, when you can get Pepsi
• 1:31:51
  Speaker 12: at 15 times forward estimates, when it historically has traded
• 1:31:55
  Speaker 12: in the upper 20s, you have had massive like. you know,
• 1:31:59
  Speaker 12: just exodus from this group. So I think you can
• 1:32:03
  Speaker 12: pick and choose within Staples. I personally like Target. I
• 1:32:07
  Speaker 12: like also Estee Lauder. Those are considered Staples, which is weird,
• 1:32:10
  Speaker 12: but they're a little more discretionary. But I do think
• 1:32:13
  Speaker 12: that there's opportunity in maybe everything other than housing, because
• 1:32:17
  Speaker 12: we just don't have a housing cycle. And I understand why,
• 1:32:20
  Speaker 12: you know, there have been investors that have kind of
• 1:32:22
  Speaker 12: flocked to the housing stocks as rates have kind of
• 1:32:25
  Speaker 12: come down a little bit. I don't think you need
• 1:32:27
  Speaker 12: to go there. I think there's plenty of areas within
• 1:32:30
  Speaker 12: staples that are good, like a Starbucks, for example, like
• 1:32:34
  Speaker 12: a Dick's Sporting Goods, for example. Some of the services companies,
• 1:32:38
  Speaker 12: like a Marriott, I mean, that's where consumers are spending.
• 1:32:41
  Speaker 12: And yet these stocks haven't done anything. That's why I
• 1:32:43
  Speaker 12: think that they are really attractive at this point in time.
• 1:32:46
  Speaker 3: Not the Plaza, not the Plaza Hotel. The story in
• 1:32:51
  Speaker 3: the paper today is a poor woman holding her wedding
• 1:32:54
  Speaker 3: at the Plaza Hotel. They forgot to tell her they're
• 1:32:57
  Speaker 3: closing it down for four years.
• 1:33:00
  Speaker 7: Oh, my gosh.
• 1:33:01
  Speaker 3: You've got to love it. It's a New York Post story,
• 1:33:05
  Speaker 3: but it's a great New York story. There's a lot
• 1:33:07
  Speaker 3: of things in New York closing down, but let's not
• 1:33:09
  Speaker 3: go there.
• 1:33:10
  Speaker 6: At the moment.
• 1:33:12
  Speaker 3: Jim LeCamp, one sector that was very hot last week
• 1:33:15
  Speaker 3: is energy up 5%. And it's only up 52.7 percent
• 1:33:20
  Speaker 3: year to date, 52.7. So you're over 100 again with
• 1:33:25
  Speaker 3: West Texas. I don't know what that means geopolitically. It
• 1:33:30
  Speaker 3: could mean that the president's going to bomb sooner than later.
• 1:33:33
  Speaker 3: But regardless, oil prices have had a big move.
• 1:33:38
  Speaker 5: Yeah, these oil stocks are going to be good for
• 1:33:41
  Speaker 5: a while, I think. If you look at a rig
• 1:33:42
  Speaker 5: count over the last two years, the rig count is up.
• 1:33:46
  Speaker 5: The barrel count is down. It's actually flat. So what
• 1:33:52
  Speaker 5: that means is we're getting less blood out of the
• 1:33:54
  Speaker 5: turnip in the major shales. And if you talk to
• 1:33:57
  Speaker 5: players in the Permian, they're all saying the same thing.
• 1:34:00
  Speaker 5: All the low-hanging fruit has been picked, and that depletion
• 1:34:03
  Speaker 5: is setting in, depreciation is setting in. So that puts
• 1:34:06
  Speaker 5: a floor... under oil prices moving forward. Now, these stocks
• 1:34:10
  Speaker 5: may be a little ahead of themselves in the short run,
• 1:34:12
  Speaker 5: but in the long run, I think energy stocks are
• 1:34:16
  Speaker 5: going to do very well for investors.
• 1:34:19
  Speaker 3: Thank you both, Stephanie Link, Jim LeCamp. Appreciate it very,
• 1:34:23
  Speaker 3: very much. Folks, we'll take a break, and we've got
• 1:34:26
  Speaker 3: some money in politics. Steve Forbes and John McLaughlin on
• 1:34:29
  Speaker 3: the other side. I'm Kudlow. Please stick around.
• 1:34:40
  Speaker 2: From Wall Street to the White House, this is The
• 1:34:43
  Speaker 2: Larry Kudlow Show.
• 1:34:46
  Speaker 3: So the question is, are the House races tightening up?
• 1:34:52
  Speaker 3: I still believe the Senate's in great shape for the GOP.
• 1:34:55
  Speaker 3: Maybe I'm wrong, but I don't think so. All those
• 1:34:59
  Speaker 3: races are within the error margin, and I don't believe
• 1:35:02
  Speaker 3: the polls, and Republicans don't poll well, neither do maggots, voters,
• 1:35:08
  Speaker 3: but whatever. The question is, is there still a shot
• 1:35:12
  Speaker 3: or not? And then the other one we talked about
• 1:35:16
  Speaker 3: at the very top of the show almost three hours ago,
• 1:35:19
  Speaker 3: the idea of Medicare for All, Bernie Sanders, that is
• 1:35:25
  Speaker 3: free Medicare for illegals. Free Medicare for illegals. And by
• 1:35:31
  Speaker 3: the way, if you like your health care plan, employer-sponsored,
• 1:35:36
  Speaker 3: you won't be able to keep it under Medicare for All.
• 1:35:40
  Speaker 3: And that's what the Democrats are running on. Somebody ought
• 1:35:42
  Speaker 3: to talk about that in the GOP. We got Steve Forbes,
• 1:35:47
  Speaker 3: chairman and editor-in-chief of Forbes Media. His latest book, Inflation,
• 1:35:52
  Speaker 3: What It Is, Why It's Bad, and How to Fix It.
• 1:35:57
  Speaker 3: Inflation ain't looking too good. And John McLaughlin, ace pollster,
• 1:36:01
  Speaker 3: CEO of McLaughlin and Associates. John McLaughlin, if I read
• 1:36:08
  Speaker 3: you right, Likely voters, GOP down five in the generic congressional.
• 1:36:17
  Speaker 3: Newt wrote a piece, I think, in 94. You may
• 1:36:21
  Speaker 3: have been the pollster in 94. Yes, sir. Likely voters
• 1:36:27
  Speaker 3: at this stage in 94 was plus seven for the Republicans.
• 1:36:32
  Speaker 3: So that's not a fabulous sounding contrast. But I know
• 1:36:37
  Speaker 3: you were on it. in the news this week saying
• 1:36:41
  Speaker 3: that so many of these polls are bogus and they
• 1:36:45
  Speaker 3: wait wrong and they don't have the Trump votes in.
• 1:36:48
  Speaker 3: Just give us a quick sense. Look, I have Speaker
• 1:36:53
  Speaker 3: Mike Johnson coming on the Sunday morning show tomorrow, a
• 1:36:57
  Speaker 3: good guy, a friend of mine, smart guy, working hard.
• 1:37:02
  Speaker 3: Is he still in the game? I mean, he says
• 1:37:03
  Speaker 3: ignore the polls. Is the House GOP still in the game,
• 1:37:08
  Speaker 3: in your judgment?
• 1:37:10
  Speaker 6: Yes, they're still in the game because it's a toss-up election.
• 1:37:13
  Speaker 6: You have over 70 House races that are in play
• 1:37:16
  Speaker 6: when you look at the traditional Washington rating services, and
• 1:37:19
  Speaker 6: you have 17 of them, pure toss-ups, so flat-out toss-ups.
• 1:37:24
  Speaker 6: And the problem is, though, you have the Senate, where
• 1:37:28
  Speaker 6: those same pollsters, you know, they– They say there's eight
• 1:37:33
  Speaker 6: pure toss-up Senate seats, and most of them are Republican seats.
• 1:37:36
  Speaker 6: That's why you and I– I can't believe we're going
• 1:37:38
  Speaker 6: to lose Texas. We're not going to lose Texas. And
• 1:37:42
  Speaker 6: then you've got– and then you have five leaners, so
• 1:37:45
  Speaker 6: there's 13 seats. And the media– is so biased in
• 1:37:50
  Speaker 6: the polling. That's what the problem is. It's not that
• 1:37:53
  Speaker 6: pollsters can't reach anybody. It's just that certain media outlets
• 1:37:57
  Speaker 6: are biased and they want to see the Republicans lose
• 1:38:00
  Speaker 6: the House and the Senate. So you get a poll
• 1:38:03
  Speaker 6: like YouGov does a poll in Texas. Texas, Donald Trump,
• 1:38:06
  Speaker 6: I used to do his poll in there when it
• 1:38:08
  Speaker 6: was in play. It was decisive last time. It wasn't
• 1:38:10
  Speaker 6: a battleground state. We won by 14 points two years ago.
• 1:38:14
  Speaker 6: They put out a poll with a straight face, YouGov, saying,
• 1:38:18
  Speaker 6: that Tallarico is ahead by six. And when you look
• 1:38:21
  Speaker 6: at their internals, the recall of the presidential vote, the
• 1:38:25
  Speaker 6: voters told them 49 voted for Harris, only 41% Trump.
• 1:38:31
  Speaker 6: That's an eight-point skew there, plus the 14. If we
• 1:38:35
  Speaker 6: won by 14, that's a 22-point skew to give Tallarico
• 1:38:39
  Speaker 6: a six-point lead. They're doing it in all these polls.
• 1:38:42
  Speaker 6: Watch their actions. For example, look in New York, where
• 1:38:45
  Speaker 6: the Democrat Governors Association just piled in $ 4 million of
• 1:38:50
  Speaker 6: negative ads attacking Bruce Blakeman. in supposedly a safe seat
• 1:38:54
  Speaker 6: in New York, attacking Blakeman for being too close to Trump.
• 1:38:58
  Speaker 6: Nothing about Kathy Hochul and her record.
• 1:39:02
  Speaker 3: By the way, the Democratic candidate's running away from her.
• 1:39:06
  Speaker 3: Have you noticed that? It's this Caitlin Conley who's running
• 1:39:10
  Speaker 3: against who's a whatsy in Westchester, and at least Swazi
• 1:39:15
  Speaker 3: won't show up at an event with her. Up in
• 1:39:20
  Speaker 3: North Country, you know, Elise Stefanik's seat, the Democrat won't
• 1:39:24
  Speaker 3: say whether he supports her or not. I mean, I
• 1:39:28
  Speaker 3: think her whole base is crumbling. In fact, I think
• 1:39:31
  Speaker 3: Blakeman might win. He won the debate big time, didn't he?
• 1:39:34
  Speaker 3: Steve Forbes, did you see the debate?
• 1:39:36
  Speaker 8: I saw portions of it, and it was not pretty.
• 1:39:40
  Speaker 8: He kicked butt.
• 1:39:41
  Speaker 3: I mean, he was like, you know, he was the
• 1:39:44
  Speaker 3: adult in the room. And, you know, she didn't know anything.
• 1:39:48
  Speaker 3: She bungled her opening statement. Or you were on with Liz,
• 1:39:51
  Speaker 3: you guys were talking about the other day. I mean,
• 1:39:53
  Speaker 3: she did everything, and she's running against Trump. Blakeman's running
• 1:39:57
  Speaker 3: against her. She's running against Trump. I don't see that
• 1:40:02
  Speaker 3: as a winning combo.
• 1:40:04
  Speaker 11: No.
• 1:40:04
  Speaker 6: You've hit the nail on the head, Larry. Plus, to
• 1:40:07
  Speaker 6: answer your first question, Tom Swasey's afraid of losing to
• 1:40:11
  Speaker 6: Michael Petri.
• 1:40:12
  Speaker 3: Yeah.
• 1:40:12
  Speaker 6: That's why he won't show up with Kevin Hochul because
• 1:40:14
  Speaker 6: Blakeman's ahead there.
• 1:40:16
  Speaker 3: I'm telling you, New York's going to be very surprising
• 1:40:18
  Speaker 3: in a potentially wonderful way. But your point, I want
• 1:40:21
  Speaker 3: to get to Steve on some healthcare stuff, but your
• 1:40:24
  Speaker 3: point is they're still in the race, even though, but
• 1:40:29
  Speaker 3: you have them five down. Does that trouble you?
• 1:40:32
  Speaker 6: It's a generic vote. Actually, Republicans tend to outperform the polls.
• 1:40:40
  Speaker 6: So we're still in the game. And plus, the question is,
• 1:40:43
  Speaker 6: when we ask them, do you prefer a Democrat who's
• 1:40:46
  Speaker 6: a big government socialist or a Republican who's a free
• 1:40:48
  Speaker 6: market capitalist? In the same poll, the Republican wins 45-41.
• 1:40:52
  Speaker 6: They got 17 days to make that contrast stick.
• 1:40:55
  Speaker 3: You should use the phrase free enterprise. It polls better
• 1:40:58
  Speaker 3: than capitalism.
• 1:41:01
  Speaker 6: I took it from your show, Larry.
• 1:41:03
  Speaker 3: Free enterprise. I know.
• 1:41:06
  Speaker 6: You're right. We'll improve it.
• 1:41:07
  Speaker 3: But I'm not running for anything. I'm running away from
• 1:41:13
  Speaker 3: a few things, but I'm not running for anything. Steve Forbes,
• 1:41:17
  Speaker 3: let me come back to you. Bernie Sanders' Medicare for
• 1:41:23
  Speaker 3: All bill does two things. Number one, it bans private insurance.
• 1:41:30
  Speaker 3: So there's about 160 million Americans, workers, who have employer-related insurance.
• 1:41:39
  Speaker 3: Most of it's pretty good, and they're very happy with it.
• 1:41:42
  Speaker 3: They will lose it by the law. It's in Bernie
• 1:41:45
  Speaker 3: Sanders' law. Point number two, Newt Gingrich's point, very important.
• 1:41:52
  Speaker 3: The bill that Bernie Sanders put out, I think he
• 1:41:55
  Speaker 3: put it in 2023. I don't know when exactly. But
• 1:41:59
  Speaker 3: that's what they're all talking about. And they're all running
• 1:42:02
  Speaker 3: on this Medicare for all. Illegals, illegals would get free
• 1:42:08
  Speaker 3: health care, free Medicare for all. That's what they would get.
• 1:42:12
  Speaker 3: People do not know this. It's not public. There's not
• 1:42:15
  Speaker 3: enough discussion about it. I'm going to raise it on
• 1:42:18
  Speaker 3: the Sunday show with some guests. But the point is,
• 1:42:21
  Speaker 3: I don't think people will be happy. And it includes, Steve,
• 1:42:24
  Speaker 3: hang on, there's more, free Medicare. Snap, food stamps, free
• 1:42:31
  Speaker 3: housing subsidies from HUD, and free Medicaid for illegals. I
• 1:42:39
  Speaker 3: don't think American voters, I don't think American taxpayers would
• 1:42:43
  Speaker 3: be happy with that if they know about it.
• 1:42:47
  Speaker 8: Well, that gets to the whole thing about how the
• 1:42:49
  Speaker 8: Republican Party has been communicating in this election. We've discussed
• 1:42:52
  Speaker 8: many times they haven't put forth an exciting tax cutting,
• 1:42:57
  Speaker 8: capital gains cutting, housing help that people can look forward to,
• 1:43:03
  Speaker 8: cutting rates. indexing capital gains and stuff like that. They
• 1:43:07
  Speaker 8: haven't done it. And they haven't hammered home, as you
• 1:43:11
  Speaker 8: have tried to do, and that is you're going to
• 1:43:13
  Speaker 8: lose the health care you have. You may not like it,
• 1:43:16
  Speaker 8: but you should have a choice. If you don't like
• 1:43:19
  Speaker 8: what you have, you should be able to get something else.
• 1:43:22
  Speaker 8: And that's what the Republicans should hammer. You should make
• 1:43:24
  Speaker 8: those choices, not Bernie Sanders or AOC. And socialism is
• 1:43:30
  Speaker 8: about depriving you of choice. You should have the freedom.
• 1:43:33
  Speaker 8: You should have the ability to make those choices. And
• 1:43:37
  Speaker 8: the Republicans have been shying away from it. They shy
• 1:43:40
  Speaker 8: away from health care because they think saying free health care,
• 1:43:43
  Speaker 8: people say, aha, people are mad at insurance companies for
• 1:43:46
  Speaker 8: all the turndowns they get. But the Republicans say they
• 1:43:49
  Speaker 8: have plans where you control those health care policies, not
• 1:43:53
  Speaker 8: third parties, not Bernie Sanders. So we've got to get
• 1:43:57
  Speaker 8: off defense. And I think people, we still have time.
• 1:44:00
  Speaker 8: to hit home about how bad these socialists are, what
• 1:44:04
  Speaker 8: they're going to take away from you. And even young people,
• 1:44:08
  Speaker 8: they may like free buses, but they don't like the
• 1:44:11
  Speaker 8: idea that they're not going to be able to choose
• 1:44:13
  Speaker 8: where they live. They're not going to be able to choose,
• 1:44:16
  Speaker 8: be able to keep what they earn and stuff like that.
• 1:44:19
  Speaker 6: Freedom. It's about freedom.
• 1:44:21
  Speaker 3: I've lost freedom. I pretty much lost everything this fall.
• 1:44:25
  Speaker 3: I lost on tax cuts. I lost on spending cuts.
• 1:44:29
  Speaker 3: I lost on a big reconciliation bill. So far, I've
• 1:44:33
  Speaker 3: lost on the health care message. And on top of everything,
• 1:44:37
  Speaker 3: I had a bad sinus infection. So it's been a
• 1:44:39
  Speaker 3: very difficult fall for me. I'm on the recovery trail, though.
• 1:44:43
  Speaker 3: I actually think, John McLaughlin, I'd say this to both
• 1:44:46
  Speaker 3: of you. I think President Trump is out there. His
• 1:44:49
  Speaker 3: messaging has improved. I saw a poll yesterday. Echelon, I
• 1:44:55
  Speaker 3: don't know who they are, John McLaughlin. Echelon, enthusiasm, GOP
• 1:45:00
  Speaker 3: enthusiasm is up almost 10 points, 55% to 65%. Democrats
• 1:45:06
  Speaker 3: were leading a lot, but now only by a few points.
• 1:45:12
  Speaker 3: It was the Daily Wire. It was Ben Shapiro in
• 1:45:16
  Speaker 3: the Daily Wire. Hang on a second. Yeah, Republican voter
• 1:45:21
  Speaker 3: enthusiasm has spiked. And in several key states, polls are
• 1:45:25
  Speaker 3: consistently overestimating Democratic performance. Well, that's your important point. So
• 1:45:30
  Speaker 3: I went back and looked at this enthusiasm thing, and
• 1:45:32
  Speaker 3: that's where I found Echelon. Is that jive with what
• 1:45:36
  Speaker 3: you're seeing? Better enthusiasm.
• 1:45:39
  Speaker 6: Yes, and it's with President Trump. His message has improved.
• 1:45:42
  Speaker 6: He's going out there and all those events he's getting,
• 1:45:46
  Speaker 6: his voters are tuning in again. And even though Fox
• 1:45:49
  Speaker 6: News may or may not cover, Newsmax covers, they get
• 1:45:52
  Speaker 6: it on the Internet. And whenever President Trump has a
• 1:45:56
  Speaker 6: rally or an event, you get hundreds of thousands of
• 1:46:00
  Speaker 6: people try to go. They send them the emails and
• 1:46:02
  Speaker 6: they send them the texts.
• 1:46:03
  Speaker 3: Fox covers those rallies. Fox covers those rallies.
• 1:46:08
  Speaker 6: Dick Morris was telling me they weren't. So but but
• 1:46:13
  Speaker 6: but go back to the point.
• 1:46:14
  Speaker 3: Of Dick's on the other. Never mind. I love I
• 1:46:18
  Speaker 3: love Dick Morris. I know Fox is covering everything. No,
• 1:46:21
  Speaker 3: I mean, election coverage is I can't vouch for the poll.
• 1:46:25
  Speaker 3: I don't understand the poll, but the news coverage is good.
• 1:46:29
  Speaker 6: The key thing is it's a midterm election. Turnout is
• 1:46:32
  Speaker 6: the key. So instead of the 155 million people that
• 1:46:36
  Speaker 6: voted in 2024, you're going to have a smaller amount.
• 1:46:40
  Speaker 6: Like in 2018, it was 118 million. In 2022, it
• 1:46:41
  Speaker 6: was 112 million. So it's a battle of who gets
• 1:46:43
  Speaker 6: out more of their base. Do the Harris voters and
• 1:46:49
  Speaker 6: the Democrat base come out higher levels than the Trump voters,
• 1:46:53
  Speaker 6: which were 77 million? If more Trump voters come out,
• 1:46:57
  Speaker 6: these Republicans will win. So that's what's going on.
• 1:47:00
  Speaker 2: You know, Steve.
• 1:47:00
  Speaker 8: But but but, you know, well, one of the things
• 1:47:02
  Speaker 8: that they they really haven't hit hard yet. He mentions it, obviously.
• 1:47:07
  Speaker 8: is what's happening with gasoline and diesel, and make a
• 1:47:10
  Speaker 8: case again. He did it months ago. Got to go
• 1:47:13
  Speaker 8: before the nation and lay out what is at stake
• 1:47:16
  Speaker 8: in Iran, what's at stake with Russia, because people say, oh,
• 1:47:20
  Speaker 8: he's always saying the war is about to end, but
• 1:47:22
  Speaker 8: it never does. Make the case that this is why
• 1:47:25
  Speaker 8: you see those higher prices. This is why we have
• 1:47:27
  Speaker 8: to say the thing through and get authority and credibility again.
• 1:47:32
  Speaker 8: He gets that this thing can turn around. Otherwise, people
• 1:47:35
  Speaker 8: just say they look at those prices and say, well,
• 1:47:37
  Speaker 8: he's been saying that for months.
• 1:47:39
  Speaker 9: Look where we are.
• 1:47:40
  Speaker 7: Well, he is.
• 1:47:40
  Speaker 8: He's got to change the messaging on that.
• 1:47:42
  Speaker 3: Well, he's done the nation. He's done. He won't give
• 1:47:46
  Speaker 3: a speech on it, Steve. He just won't. But he's
• 1:47:48
  Speaker 3: done it. He's got many paragraphs in the stump speech
• 1:47:53
  Speaker 3: on it. It's much improved. I mean, he'll say, yep,
• 1:47:57
  Speaker 3: gas prices are too high, but we must stop their nukes.
• 1:48:03
  Speaker 3: I mean, he said it again and again. I saw
• 1:48:04
  Speaker 3: a tip poll, really quite extraordinary. First of all, the
• 1:48:11
  Speaker 3: plus two on the war, that by itself, I mean,
• 1:48:14
  Speaker 3: you read the legacy media, they always say the unpopular war. Well,
• 1:48:19
  Speaker 3: Chip has it at plus two. But the interesting thing
• 1:48:22
  Speaker 3: about it is, if I could find my notes, people
• 1:48:24
  Speaker 3: supporting the war, not just conservatives, but young people, 25
• 1:48:30
  Speaker 3: to 54, parents, not single gals, but parents, urban dwellers
• 1:48:37
  Speaker 3: support the war, you know, like plus 12, I mean,
• 1:48:41
  Speaker 3: they probably figured out that they might get a bomb
• 1:48:44
  Speaker 3: in their backyard if we don't take out Iran. I mean,
• 1:48:48
  Speaker 3: it's just interesting. Is a tit poll a good poll,
• 1:48:51
  Speaker 3: John McLaughlin?
• 1:48:53
  Speaker 6: In that one, they are, because it's the way you
• 1:48:55
  Speaker 6: ask the question. If you ask the question, do you
• 1:48:57
  Speaker 6: support stopping Iran from getting a nuclear weapon, all of
• 1:49:00
  Speaker 6: a sudden the majority of Americans support it, and should
• 1:49:02
  Speaker 6: we finish the job? Six out of ten voters will
• 1:49:06
  Speaker 6: say that we should finish it. They want to be
• 1:49:08
  Speaker 6: done with it. They want to win, and they want
• 1:49:09
  Speaker 6: to get it over with. And they don't want to
• 1:49:12
  Speaker 6: keep it dragging on. So that's, you know, that's the
• 1:49:15
  Speaker 6: ceasefire probably hurt at some point.
• 1:49:18
  Speaker 3: Yeah, I think it did hurt, by the way. I
• 1:49:19
  Speaker 3: think that absolutely hurt. because we didn't finish it. One
• 1:49:23
  Speaker 3: of the things that came out in this poll is
• 1:49:26
  Speaker 3: that people want the war to end, and they want
• 1:49:31
  Speaker 3: us to win. It's two things. They want us to win,
• 1:49:35
  Speaker 3: and they want us to end. And I think, you know, well,
• 1:49:39
  Speaker 3: let's take a break, because I think the affordability issue
• 1:49:42
  Speaker 3: is overrated. Democrats are clinging to that. We need to
• 1:49:47
  Speaker 3: blast through, you know, they would have $ 10 gasoline. They
• 1:49:49
  Speaker 3: don't want any gasoline, for God's sakes. I mean, that's important,
• 1:49:53
  Speaker 3: and the health care thing costs a fortune, and you
• 1:49:55
  Speaker 3: lose your health care, and illegals get it for free.
• 1:49:58
  Speaker 3: Those are things, last couple weeks, they ought to hang
• 1:50:01
  Speaker 3: on to. Anyway, the great Steve Forbes, chairman and editor
• 1:50:03
  Speaker 3: of Steve Forbes Media, and ace pollster John McLaughlin. I'm Kudlow.
• 1:50:07
  Speaker 3: We'll be right back.
• 1:50:10
  Speaker 1: Larry Kudlow.