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Inside Scoop with Breitbart News - John Carney · Brian Thomas

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  Speaker 1: Just Shibato six here fifty five kr CD talk station.
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  Speaker 1: It being Tuesday, it is that time of week I
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  Speaker 1: always look forward to. It's time for the inside scoop.
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  Speaker 1: But breit Bart News starting with a recommendation my listening
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  Speaker 1: audience bookmark bright BARTR E I T B A RT
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  Speaker 1: dot com. You're glad you did a lot of great work.
• 0:17
  Speaker 1: They do each and every day, and one of the
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  Speaker 1: guys does some fantastic work. Welcome back to the fifty
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  Speaker 1: five KRC Morning Show. Economics editor at bright Bart John Carney,
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  Speaker 1: good to have you back on today, my friend.
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  Speaker 2: Yeah, thanks for having me. So.
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  Speaker 1: Factory orders have increased because of the artificial intelligence surge.
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  Speaker 1: I thought a I was going to put everybody out
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  Speaker 1: of a job, John, I know that's boiled down, but.
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  Speaker 2: Yeah, no, I mean that is the complaint about AI
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  Speaker 2: is that it's, you know, it's going to be so
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  Speaker 2: good at what it does that it's going to cause
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  Speaker 2: mass unemployment.
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  Speaker 3: I'm a skeptic of that, but in the meantime, at
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  Speaker 3: least in the near term, it's definitely causing a lot
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  Speaker 3: of factory work in the US to be done.
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  Speaker 2: And we're seeing this. It shows up in the GDP numbers.
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  Speaker 2: It showed up in factory order numbers, and I think
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  Speaker 2: it's important that people understand the factory order numbers are
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  Speaker 2: not just They're not measured from the consumer side or
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  Speaker 2: even from the businesses making the order side. It's these
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  Speaker 2: are orders being measured from at US factories. So these
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  Speaker 2: aren't you know, orders going into order things from China
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  Speaker 2: or Mexico or even Germany. These are orders that are
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  Speaker 2: expanding at a very rapid rate in the US, so.
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  Speaker 1: We're we're able to domestically meet demands. One of the
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  Speaker 1: hard lessons that we learned out of COVID nineteen is
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  Speaker 1: that we don't make anything anymore. I know that's a
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  Speaker 1: broad brush statement, so don't hold me to that, John,
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  Speaker 1: because we still make things. But the vast amount of
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  Speaker 1: things we bought from China. The revelation that are of
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  Speaker 1: our pharmaceuticals were coming from China, that all these you know,
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  Speaker 1: electronic goods and things were all coming from China. So
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  Speaker 1: have we righted the ship over the past five five years.
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  Speaker 2: John, not yet. I wish we had corrected course completely.
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  Speaker 2: Of course, we actually are seeing a lot of imports
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  Speaker 2: as well. Uh. Frankly, because we we went way overboard
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  Speaker 2: with the industrialization in the US, so we can meet
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  Speaker 2: some of it. One of the good things that has
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  Speaker 2: been happening, though, is that we're seeing a lot of
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  Speaker 2: expansion of capacity in the US. We are we are
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  Speaker 2: building more factories where and a lot of the equipment
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  Speaker 2: we're seeing purchaser are actually well. We went through a
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  Speaker 2: period of time and this is sert of mind blowing
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  Speaker 2: to people, where a lot of the orders from for
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  Speaker 2: US manufacturers were actually going to support manufacturing abroad. So
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  Speaker 2: companies would buy things to you know, machinery used to
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  Speaker 2: make consumer products, and then they would ship those to China.
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  Speaker 2: So we made the things that we're shipping our jobs abroad. Well,
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  Speaker 2: we're not doing that as much anymore. We're actually now
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  Speaker 2: making more of the things so that we can use
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  Speaker 2: them here in the US for making things. It's going
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  Speaker 2: to take some time to completely reverse that. It's not
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  Speaker 2: going to come used.
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  Speaker 1: No, of course, building factories is a multi year process anymore.
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  Speaker 1: You got all the regulatory challenges, you got environmental regulations
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  Speaker 1: and challenges, and insofar as AI itself is concerned, you
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  Speaker 1: got a real problem. And there's this growing backlash against
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  Speaker 1: artificial intelligence facilities showing up. I guess I always stand
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  Speaker 1: from the proposition that, look, this is a global competition,
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  Speaker 1: this AI. Whatever AI is supposed to do for us,
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  Speaker 1: everyone's going headlong toward it. China, We're in competition with
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  Speaker 1: them over the dominance of AI, so we apparently need it.
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  Speaker 1: So there's this growing backlash. So I think primarily built
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  Speaker 1: on this left wing energy policy we face. You know,
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  Speaker 1: windmills cannot supply enough energy to build to run a city,
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  Speaker 1: let alone a brand new artificial intelligence facility that shows
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  Speaker 1: in your neighborhood forcing the energy builds up. You've got
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  Speaker 1: to share with the great consumer of electricity AI. He
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  Speaker 1: wants to do that. Do you see an AI bubble bursting?
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  Speaker 1: Maybe as a consequence of that or because people just
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  Speaker 1: just they're not going to abide John.
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  Speaker 2: So I do always worry. You know, there's a lot
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  Speaker 2: of enthusiasm and a lot of spedding in AI. And
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  Speaker 2: when I see numbers like you know, the electronic products
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  Speaker 2: category in the rising twenty one percent year over year,
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  Speaker 2: that that is a reason for pause, because that's a
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  Speaker 2: lot of sudden surge of investment. But I will say
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  Speaker 2: that we can solve a lot of these problems. Yes,
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  Speaker 2: there is left wing opposition to building AI facilities, building
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  Speaker 2: data servers, but look, the left is going to oppose
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  Speaker 2: all reindustrialization. They don't like factories. One of the reasons
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  Speaker 2: we've lost a lot of factories was not just that
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  Speaker 2: Chinese mercantilism was sponsoring jobs to move abroad, but also
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  Speaker 2: because US policy was actually opposed to upgrading any facilities.
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  Speaker 2: We could do this. There's actually areas in America where
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  Speaker 2: there are where there's spare electric capacity that will blow
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  Speaker 2: people's minds. And you say, how could that be. Well,
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  Speaker 2: areas that used to have electric heavy factories that close
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  Speaker 2: down often still have the generator capacity to power large
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  Speaker 2: manufacturing plants, which means they have extra capacity. So here,
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  Speaker 2: So one solution is you build AI.
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  Speaker 1: Near where we use near the power. Exactly interesting concept, John, Wow.
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  Speaker 2: Yeah. And also you can put it, by the way,
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  Speaker 2: a friend of mine is working on a project to
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  Speaker 2: put a lot of these things underground because that you
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  Speaker 2: automatically get some cooling during the summer months. If you're underground,
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  Speaker 2: park on top of it, it doesn't have to look ugly.
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  Speaker 1: Yeah, I like that. So, but you just mentioned left
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  Speaker 1: wing opposition to AI. So left wing opposition to AI
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  Speaker 1: largely based on the price of electricity and the competition
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  Speaker 1: for energy consumption with the AI facilities. So they're left
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  Speaker 1: wing policies. We don't give us sufficient electricity because they
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  Speaker 1: don't want us to exhale got to get rid of
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  Speaker 1: it in favor of a windmill serves to benefit their
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  Speaker 1: opposition to AI as well. It's nice hand in hand
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  Speaker 1: relationship there. What does the left have against AI? Is
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  Speaker 1: it the apeah?
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  Speaker 2: Look, they they're only lying to you when they say
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  Speaker 2: that they are upset about the price of electricity. What
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  Speaker 2: they don't like about the AI plans is that they
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  Speaker 2: use electricity at all. If it had no impact, they
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  Speaker 2: would still on the consumer price. That would still generate
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  Speaker 2: their opposition because what they really oppose is the use
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  Speaker 2: of energy, frankly, but especially of fossil fuels. And a
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  Speaker 2: lot of our electricity is going to be for the
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  Speaker 2: rest of time supplied by fossil fuels, at least as
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  Speaker 2: long as we are on this earth. You know, maybe
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  Speaker 2: when we have a Mars holiday or someday you know
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  Speaker 2: that won't be oil based, sure, but everything here on
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  Speaker 2: Earth will be oil. Natural gas will be made of carbon,
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  Speaker 2: and they hate that they are going. And frankly, that's
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  Speaker 2: why even I don't even know that they hate AI.
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  Speaker 2: They hate industry. They do not They want us all
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  Speaker 2: to kind of have email server jobs. They do not like.
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  Speaker 1: Consumption is what they hate. Success, American success is what
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  Speaker 1: they hate. They want to undermine the model that has
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  Speaker 1: worked so well for so many people, that has served
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  Speaker 1: the entire globe because we make so much blanking money
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  Speaker 1: that we pay for pretty much every other country in
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  Speaker 1: the world. What would happen if they got their way,
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  Speaker 1: John Carney from an economic standpoint, my economics editor Barke Bart, friend,
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  Speaker 1: if they just was successful in pulling the plug on
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  Speaker 1: this American experiment that has so far been able to
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  Speaker 1: bring about such great things for everyone else who hasn't
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  Speaker 1: gone down our economic experiment road collapse right.
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  Speaker 2: Well, we would have to get used to speaking Chinese
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  Speaker 2: because we will become a colony of China and not
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  Speaker 2: a free and independent nation anymore. We cannot oppose innovation
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  Speaker 2: in the US, And frankly, I don't think it's going
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  Speaker 2: to happen. I think they will succeed in some places.
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  Speaker 2: Vermont may make sure that there is you know, you
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  Speaker 2: can actually look at fracking. If your state passed a
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  Speaker 2: fracking ban, you're in danger of your state making sure
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  Speaker 2: that there is no AI facilities in your state. So
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  Speaker 2: what will happen was is a lot of these facilities
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  Speaker 2: and the construction jobs that go with building them will
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  Speaker 2: migrate to states that are friendlier to them. And by
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  Speaker 2: the way, that's how federalism works. I'm fine with that,
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  Speaker 2: and they will stay out of the states that are
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  Speaker 2: going to give them two hard of a time. You know. Again,
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  Speaker 2: that'll be the experiment people can If they decide that
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  Speaker 2: they don't want it where they live, that's okay. Somebody
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  Speaker 2: else will take it.
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  Speaker 1: Yeah, well, that's kind of like from a global perspective AI.
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  Speaker 1: If we don't do it, then China will do it
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  Speaker 1: and they will get all the benefits of artificial intelligence.
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  Speaker 1: We'll find fall behind the eight ball. You know, we're
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  Speaker 1: talking energy, John Carneie, you mentioned the fossil fuel is
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  Speaker 1: going to be powering the world into the foreseeable future.
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  Speaker 1: If we weren't so resistant to small modular reactors and
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  Speaker 1: could get those put together and in service very quickly efficiently,
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  Speaker 1: AI could pay for and bring its own power source
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  Speaker 1: that it could share with the neighborhood, couldn't it.
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  Speaker 2: Yes, And a lot absolutely small module nuclear reactors are
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  Speaker 2: going to be used in the future. We are, and
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  Speaker 2: we need to make sure that whatever barriers we have, look,
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  Speaker 2: we want it to be safe. But these things can
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  Speaker 2: be done very safely, and we should have a lot
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  Speaker 2: more of them. Also, there's a use there's a lot
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  Speaker 2: of discussion about the use of water, and I just
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  Speaker 2: want to point out that the water that AI facilities
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  Speaker 2: use is used to cool things. It's not contaminated in
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  Speaker 2: the process, right, You're not washing off something dirty. And
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  Speaker 2: the water, by the way, never goes away. It's still.
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  Speaker 2: And so the water use issue is overwrought. And I mean, sure,
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  Speaker 2: maybe don't put the you know, you have to cool
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  Speaker 2: these things. You need a lot of water. Don't put
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  Speaker 2: it in the desert. I understand that we have a
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  Speaker 2: lot of places where there's a lot where I live,
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  Speaker 2: if you dig a hole in the ground, I have
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  Speaker 2: a well at my house. If you dig a hole
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  Speaker 2: in the ground, you get water. So there's a lot
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  Speaker 2: of places where water is abundantly available.
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  Speaker 1: Right, an excellent point. Though the water doesn't go away,
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  Speaker 1: AI isn't eating it. It goes back into the circulation
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  Speaker 1: in the system. You know, I couldn't. I had to interject.
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  Speaker 1: You don't build an AI facility in the desert where
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  Speaker 1: there's no water, and you shouldn't build a nuclear power
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  Speaker 1: facility in an area that might be subjected to a
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  Speaker 1: tsunami Fukushima, right.
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  Speaker 2: Absolutely, Yeah, you keep it. You keep your nuclear power
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  Speaker 2: off a fault line, You keep it away, you know,
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  Speaker 2: away from any place that might be hit by a tsunami.
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  Speaker 2: But you do. And you keep your AI processing plant
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  Speaker 2: out of any place it gets to one hundred and
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  Speaker 2: twenty degrees in the summertime and doesn't have a you know,
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  Speaker 2: out of quick water. These are very common sense. By
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  Speaker 2: the way, the people building these things know this. They
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  Speaker 2: don't want to you know, nobody wants to build these
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  Speaker 2: things in the desert. They want to build these things,
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  Speaker 2: and they also don't want these things to be is sores,
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  Speaker 2: you know right now. Yes, some of the if you
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  Speaker 2: drive out and you look for one of these things,
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  Speaker 2: you can find it. But they they're not putting these
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  Speaker 2: things in the middle of your beautiful city park. They're
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  Speaker 2: usually act way out of the way, in the back
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  Speaker 2: of a farm somewhere well, can you have to try
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  Speaker 2: to see it?
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  Speaker 1: Or where they put the Amazon processing facilities another giant
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  Speaker 1: kind of squig big football size field or larger square box.
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  Speaker 1: All right, So pivoting over happen to be a fan
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  Speaker 1: of German automobiles. And although I know the German auto
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  Speaker 1: industry is struggling mightily because of the ridiculous energy policies
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  Speaker 1: and the cost of energy there, I think the whole
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  Speaker 1: entire German economy is going to collapse under the weight
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  Speaker 1: of their stupidity. But tariffs, which I may maybe coming
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  Speaker 1: our way in terms of additional tariffs on European cars,
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  Speaker 1: is that what's going to happen, John.
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  Speaker 2: I think Europe is actually going to back down. They
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  Speaker 2: haven't been compliant with what Donald Trump says they agreed
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  Speaker 2: to in Scotland when he was first putting on tariffs.
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  Speaker 2: So they're going to have to have meetings, they're going
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  Speaker 2: to talk, and they are going to bring themselves into compliance.
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  Speaker 2: It's the US economy, and particularly access to the US
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  Speaker 2: market is much too important for the particularly those German
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  Speaker 2: car makers, and those people are very influential in Europe,
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  Speaker 2: and they are not going to allow themselves to be
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  Speaker 2: pushed out of the US market by very high tariffs,
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  Speaker 2: and so I think they will try very hard to
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  Speaker 2: bring themselves in compliance. By the way, a lot of
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  Speaker 2: them also build in the US, and we'll probably see
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  Speaker 2: more of that if the tariffs right. They don't want
• 13:01
  Speaker 2: to be shut out, so they will build here.
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  Speaker 1: Well, that will be okay, because it seems to me
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  Speaker 1: that building them here is a lot cheaper than building
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  Speaker 1: them in Germany. I mean, they got rid of their
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  Speaker 1: nuclear fleet, they got rid of their coal fire plants.
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  Speaker 1: They are moving. They do not bother with hydraulic fracking,
• 13:16
  Speaker 1: even though it's widely reported they have enough potential natural
• 13:18
  Speaker 1: gas that they could frack to provide them with twenty
• 13:21
  Speaker 1: years at current annual gas consumption rate, so they could
• 13:24
  Speaker 1: be self sufficient. But this is forcing the price of
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  Speaker 1: the energy through the roof, as you know, John, which
• 13:30
  Speaker 1: means the product you buy from a German manufacturer is
• 13:34
  Speaker 1: going to be a lot more expensive in the global
• 13:35
  Speaker 1: world and in terms of competition than a car from
• 13:38
  Speaker 1: someplace else. I mean, that just makes sense.
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  Speaker 2: Europe's policies are bizarre when it comes to this, because
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  Speaker 2: the manufacturing will get done and so the energy consumption
• 13:49
  Speaker 2: will get done. All that their energy policies do is
• 13:52
  Speaker 2: force that out of Europe. I don't know what. And
• 13:57
  Speaker 2: when you're talking, you know, even if you're concerned, your
• 14:00
  Speaker 2: greatest concern in life is climate change. Forcing production out
• 14:05
  Speaker 2: of your local area to whether it's North America, South America,
• 14:10
  Speaker 2: Asia or Africa doesn't help you with the issue that
• 14:14
  Speaker 2: you think you right, It doesn't make any I love
• 14:18
  Speaker 2: that it's called it's called global climate change for a reason,
• 14:22
  Speaker 2: and they, you know, yet they're willing to force it
• 14:25
  Speaker 2: out of their area. Often I wonder if you're secretly
• 14:30
  Speaker 2: signed a suicide pact and they're just trying to live
• 14:32
  Speaker 2: up to the terms of their bargain.
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  Speaker 1: John, you couldn't have stated it better than that. I
• 14:36
  Speaker 1: regularly refer to these these the legislation in terms of
• 14:39
  Speaker 1: the energy alleged energy production, and it's an impact on
• 14:43
  Speaker 1: climate as self inflicted wounds. Clearly they are. And the
• 14:47
  Speaker 1: other component of this is, John, the idea that you yourself,
• 14:50
  Speaker 1: Germany or European Union whatever, are not going to do
• 14:52
  Speaker 1: this evil thing called carbon production. You're going to let
• 14:55
  Speaker 1: somebody else do it so you can virtue signal and
• 14:57
  Speaker 1: say ha ha, we're not producing carbon bore. Were getting
• 14:59
  Speaker 1: everything from China or Russia or someplace else that is
• 15:02
  Speaker 1: belching pollutants into the world. It's preposterous, John, I can't
• 15:06
  Speaker 1: believe they've gotten away with it this long, but here
• 15:08
  Speaker 1: we find ourselves.
• 15:09
  Speaker 2: It's ridiculous one thing that is actually benefiting them. Look
• 15:14
  Speaker 2: in some ways, Putin, Iran and even China have really
• 15:19
  Speaker 2: played into our hands on this in that Putin has
• 15:22
  Speaker 2: made it clear that you don't want to be relying
• 15:25
  Speaker 2: on Russia for your energy resources. You can't be reliant
• 15:29
  Speaker 2: on Iran or frankly all the Middle East for you
• 15:33
  Speaker 2: or oil. This is making the one great world oil
• 15:37
  Speaker 2: producer that is reliable, safe, has a great ethical government
• 15:43
  Speaker 2: that's called the United States that's really going to benefit
• 15:45
  Speaker 2: us for the long long.
• 15:47
  Speaker 1: Term, Right Bart Economic Senator John Carney. It's always a
• 15:50
  Speaker 1: pleasure having on the show. John, to look forward to
• 15:51
  Speaker 1: having you back again. I keep writing the stuff you
• 15:53
  Speaker 1: write each and every day and again to my listeners
• 15:55
  Speaker 1: Brightbart dot com. You got a book market and enjoy
• 15:57
  Speaker 1: what they do there. John, we'll talk against and best
• 16:00
  Speaker 1: to you and everybody at bright part Yeah, thanks for
• 16:03
  Speaker 1: having me. My pleasure eight twenty two fifty five Kercit
• 16:06
  Speaker 1: talk station and so my pleasure to buy my daughter
• 16:08
  Speaker 1: and Eric rhino shield