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Mark interviews John Carney, editor of Breitbart Business News. · The Mark Simone Show

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  Speaker 1: The Mark Simone Show continues on sevent ten. Wor Well,
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  Speaker 1: we bring you the smartest people around John Carney, the
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  Speaker 1: business editor at breit Bart Bright Breitbart Business Digest is
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  Speaker 1: something you should be reading every day. You know Breitbart
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  Speaker 1: dot com, But we go to Breitbart dot com, go
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  Speaker 1: to the Business Digest. Smartest people Scott Bess and Larry Cuddler.
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  Speaker 1: It's the first thing they read every morning, Breke Bart
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  Speaker 1: Business Digest. And when you go to Breitbart dot com,
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  Speaker 1: go to Newsletters, click on that and then sign up
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  Speaker 1: for the Business Digest. It's free. It'll come right to
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  Speaker 1: your email every day. John Carney, how you doing very good?
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  Speaker 2: Thanks for having me Mark.
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  Speaker 1: Hey, I'm watching the Morning Joe. Apparently the whole economy
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  Speaker 1: is in ruins, the brink of recession. The inflation numbers
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  Speaker 1: came out, it's disaster. What's the real story.
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  Speaker 2: So, yeah, we're not anywhere near on the brink of
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  Speaker 2: in fact, the numbers that came out yesterday, Yes, inflation
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  Speaker 2: picked up, and that's not great. Mostly it's gasoline because
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  Speaker 2: of the strait of Hermos. But the thing that's really
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  Speaker 2: striking about it is that it hasn't actually taken away
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  Speaker 2: from spending elsewhere in the economy. One of my fears
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  Speaker 2: personally was that because people were having to put so
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  Speaker 2: much money into their gas tanks that it might they
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  Speaker 2: might start to pull back in other spending. But we're
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  Speaker 2: not seeing that. The personal they called the personal consumption expenditures,
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  Speaker 2: but basically consumer spending really showed that people continue to
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  Speaker 2: spend money all across the economy and that so far
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  Speaker 2: we're actually not seeing as much damage as even you know,
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  Speaker 2: I'm pretty bullish on this Trump economy, but this was
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  Speaker 2: better that I thought it would be. You know, I'm
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  Speaker 2: not surprised, you know, Morning Joe, the rest of it.
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  Speaker 2: Then I saw a poll recently fifty five percent of
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  Speaker 2: Democrats think we already universe sessions. So of course, you know,
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  Speaker 2: like you're going to see that kind of stuff in
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  Speaker 2: the legacy media.
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  Speaker 1: Yeah, well, I guess like when you read the New
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  Speaker 1: York has finished, everybody's left. I'm looking at the housing numbers.
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  Speaker 1: Rentals are up through the roof, condo sales are through
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  Speaker 1: the roof.
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  Speaker 2: So you can't you can't walk down Sixth Avenue in
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  Speaker 2: Midtown like well, you know, it's the streets are so crowded.
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  Speaker 2: New York's not there.
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  Speaker 1: No, Now we got a new FED chairman, When does
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  Speaker 1: he actually start to do anything?
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  Speaker 2: Yeah, so he's in office. Uh, he's hopefully right now
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  Speaker 2: rearranging the parking spots and putting Jerome Powell you know
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  Speaker 2: at the furthest Away parking spot, you know, just he
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  Speaker 2: The thing that one of the things people don't realize
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  Speaker 2: is that the chairman of the FED actually does a
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  Speaker 2: lot more than just interest rate policy. You know, yes,
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  Speaker 2: he's part of the Federal Open Market Committee, but there
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  Speaker 2: are thousands of people who work for the FED, including
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  Speaker 2: a lot of economists. They have really important jobs. One
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  Speaker 2: of the things I hope he's doing right now is
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  Speaker 2: checking who are these guys? Right? They are instrumental in
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  Speaker 2: formulating economic policy in the United States, and we really
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  Speaker 2: need to find out. Larry Tublo quotes this poll that
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  Speaker 2: showed that something like ninety percent of the political donations
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  Speaker 2: from FED employees go to Democrats. That's a big problem.
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  Speaker 2: It shouldn't be like that. We need he So I
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  Speaker 2: hope that when you know that, one of the things
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  Speaker 2: Kevin's doing right now, you know, there's not another meeting
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  Speaker 2: for a little while. You know about interest rates, but
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  Speaker 2: what he should be doing right now is taking a
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  Speaker 2: look at the personnel at the FED and making sure
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  Speaker 2: that they haven't been doing anything like locking out Republican economists.
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  Speaker 1: Now, the awful FED chairman, Jerome Powell has not step down.
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  Speaker 1: He looks like he's going to remain on the board.
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  Speaker 1: What actual power influence can he have on that board.
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  Speaker 2: So the thing is that the FED chairman is really
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  Speaker 2: only to lead by consensus. He has to bring people around,
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  Speaker 2: and it's one of the reasons why former chairmen never
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  Speaker 2: stay on the board. Powell is the first guy to
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  Speaker 2: do this in sixty years. The reason why they always
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  Speaker 2: lead is to let the new chairman lead the board.
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  Speaker 2: Powell will have a vote on the interest rate policies,
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  Speaker 2: He will have an influence over the other people who
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  Speaker 2: are on the FED. I don't think it's really responsible
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  Speaker 2: for him to stay on, but I'm not sure it'll
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  Speaker 2: make that big of a difference right now. Look, as
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  Speaker 2: I said in the beginning, the inflation numbers are going up.
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  Speaker 2: The FED is not going to cut interest rates. As
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  Speaker 2: long as the inflation is on the way up, they're
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  Speaker 2: going to have to come down. I don't think we're
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  Speaker 2: going to see that for quite a few months. So
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  Speaker 2: if I'm Kevin Warsh, what I would be doing right
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  Speaker 2: now is laying out the groundwork for how he thinks
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  Speaker 2: monetary policy should be. Don't worry about whether you can
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  Speaker 2: cut interest rates at this meeting or the next meeting.
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  Speaker 2: That's actually doesn't make that big of a difference. The
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  Speaker 2: longer term approach the Fed cakes is really what's going
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  Speaker 2: to shape the economy. Everybody obsesses, right, will they cut
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  Speaker 2: this meeting or is it going to be September, November, December. Look,
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  Speaker 2: what really matters is the long term path of interest
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  Speaker 2: rates and the long term policy of the Fed. That's
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  Speaker 2: what Kevin Worre should concentrate on and we can worry about.
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  Speaker 2: You know, when they cut interest rates, that's probably not
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  Speaker 2: going to happen.
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  Speaker 1: I explain that a little to people because people think
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  Speaker 1: that's the most important thing, interest rates raising your Look,
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  Speaker 1: it's not the most important thing.
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  Speaker 2: No, it's not. And the especially the timing of when
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  Speaker 2: they raise it or when they lower it. What really
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  Speaker 2: matters is whether the Fed. One of the big problems
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  Speaker 2: the FED has had over the life I would say
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  Speaker 2: two decades, is that they've really been suspicious of economic growth.
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  Speaker 2: Whenever the economy really starts to take off, the FED
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  Speaker 2: worries that that somehow will be inflationary. Of course that's
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  Speaker 2: not true at all. And by the way, they missed
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  Speaker 2: the actual inflation problem we had, which happened under Joe Biden. Right,
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  Speaker 2: so they've got it wrong. They let inflation get under
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  Speaker 2: control under Joe Biden. Under Donald Trump in the first term,
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  Speaker 2: they saw they started raising interest rates because growth started
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  Speaker 2: to pick up. They need to break out of this model.
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  Speaker 2: Economic growth doesn't cause inflation. That's the long term reform
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  Speaker 2: we need is a model that doesn't say, right now,
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  Speaker 2: the FED thinks we could grow at one point eight
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  Speaker 2: to two percent, that's like the maximum they think is
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  Speaker 2: the safe pace for the economy to grow. That's pathetic.
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  Speaker 2: We can grow much faster than that, and the FED
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  Speaker 2: should not be tuning its policies to hold back growth
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  Speaker 2: the way they have for twenty years now.
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  Speaker 1: Yeah, John Connie Bright Business Digest talk about AI for
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  Speaker 1: a second. There's a lot of people that think everybody's
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  Speaker 1: going to lose their job, that AO is going to
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  Speaker 1: wipe us all out job wise. What's the real story.
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  Speaker 2: So I don't think that's true. At all. I maybe
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  Speaker 2: a year or two ago I might have been a
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  Speaker 2: little worried about this, but partly because you had all
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  Speaker 2: these guys working on AI saying, oh, you know, we're
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  Speaker 2: going to take everybody's job. In fact, in history, one
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  Speaker 2: of the things that happens is when you increase the
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  Speaker 2: productivity of workers, which is one of the things AI does,
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  Speaker 2: you actually make more demand for workers because they can
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  Speaker 2: get more done. So I actually think that there's going
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  Speaker 2: to be there's an economic Tournament's a paradox for this
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  Speaker 2: where when part of the thing is is that when
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  Speaker 2: you increase people's ability to produce more goods and services,
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  Speaker 2: that actually doesn't decrease the amount of people you need doing.
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  Speaker 2: It increases the amount of people because each person is
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  Speaker 2: more productive. So I think we're actually going to see
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  Speaker 2: a lot of demand for workers because of AI. Not
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  Speaker 2: the jobs will shift, exactly what people will do doing
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  Speaker 2: will shift. Frankly, a lot of people's jobs will be
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  Speaker 2: made better because some of the drudge work that they
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  Speaker 2: don't like to do right now will be actually being
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  Speaker 2: done by a digital AI assistant for them. But they're
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  Speaker 2: the actual work. A lot of people have in their
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  Speaker 2: mind this image of the economy where there's only so
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  Speaker 2: much work to be done, and if enough of it
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  Speaker 2: is done by robots or computers, then we won't do anymore.
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  Speaker 2: I guarantee you that's not the way the economy works.
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  Speaker 2: If it was, we would have stopped working four hundred
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  Speaker 2: years ago when we you know what, we got really
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  Speaker 2: good at farming. Instead, what we did is we had
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  Speaker 2: an industrial revolution, so you can you know, work will continue,
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  Speaker 2: and I hate to break this tumor. Human beings will
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  Speaker 2: never run out of work to do. I mean, we're
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  Speaker 2: just always going to have to work, and that will
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  Speaker 2: be But that's also good because it means we keep
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  Speaker 2: coming up with new things that make our lives better.
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  Speaker 1: Very encouraging. John Carney brilliant as always and bright bart
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  Speaker 1: Business Digest. It's Monday through Friday, right that it comes out.
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  Speaker 2: Monday through Friday, and you know, every now and then
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  Speaker 2: we'll come up with a weekend special if something really
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  Speaker 2: big is happening, and on Friday, as we do something
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  Speaker 2: really cool, I call it the Weekly Wrap. It's a
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  Speaker 2: little more lighthearted. We're going to talk in today's Weekly
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  Speaker 2: Wrap about the two hundred and fifty dollars Trump bill
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  Speaker 2: that they're talking about putting out and Treasury Secretary Bessett
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  Speaker 2: is giving a big speech out in California today. You're
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  Speaker 2: going to be able to read about that at bright Bart.
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  Speaker 2: It's going to be a fun one today.
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  Speaker 1: It's worth putting out that bill. Just drive those Trump
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  Speaker 1: haters crazy.
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  Speaker 2: Yes, I can't wait to walk into like a liberal
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  Speaker 2: coffee shop. Pay for my coffee tifty dollars.
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  Speaker 1: Amazing. Everybody subscribed to bright Bart Business died just I'm
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  Speaker 1: telling you, Larry Cudlows, Scott Bessant, the presence the first
• 9:57
  Speaker 1: thing they look at every day. It's free. It'll write
• 10:00
  Speaker 1: your email. Just go to Breitbart dot com then go
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  Speaker 1: to where it says newsletters, click on and open up
• 10:05
  Speaker 1: that and go to Business Digest and sign up for that.
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  Speaker 1: John Carney, great stuff, Thanks for being with us.
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  Speaker 2: Yes, have a great weekend.
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  Speaker 1: Mark all right, take care. Hey, Yeah, it's going to
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