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Mark interviews John Carney from Breitbart Business News. · The Mark Simone Show

• 0:00
  Speaker 1: He's got the whole city in your radio Marximo On
• 0:04
  Speaker 1: seven ten, Wong Well the brilliant columnist John Karney. He's
• 0:12
  Speaker 1: the editor of Breitbart Business Digest, which is the best
• 0:16
  Speaker 1: business digest you can get. You should subscribe to this.
• 0:19
  Speaker 1: You go to Breitbart dot com. Go to Breitbart dot com,
• 0:23
  Speaker 1: go to newsletters, and then sign up. It's free. Just
• 0:25
  Speaker 1: sign up with your email and get the Breitbart Business Digest.
• 0:29
  Speaker 1: The smartest people in the world. It's the first thing
• 0:31
  Speaker 1: they read every morning. Scott Besson, Treasury Secretary, said, it's
• 0:34
  Speaker 1: the first thing he looks at every morning. Larry Kudlow,
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  Speaker 1: first thing he looks at every morning, the Breitbart Business Digest.
• 0:40
  Speaker 1: And here's the editor, John Carney.
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  Speaker 2: How you doing very good, Marco, thanks for having me.
• 0:46
  Speaker 1: Hey, I know, listen, there's a spike and oil obviously
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  Speaker 1: as a result of Iran, but inflation overall, what the
• 0:53
  Speaker 1: numbers came out where we stand right now in inflation.
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  Speaker 2: So this was a pretty bad report. Inflation was up
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  Speaker 2: three point eight percent. A huge part of that, over
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  Speaker 2: forty percent of it was driven by energy. That's why
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  Speaker 2: the problem is there's other elements in here that maybe
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  Speaker 2: sort of the higher gas prices passing through. Apparel prices
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  Speaker 2: were up, Furniture prices were up. One thing that's definitely
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  Speaker 2: energy related. Airline prices are up. There's a lot of
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  Speaker 2: there's food inflation in the here. So this is not
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  Speaker 2: what the Trump administration is hoping for. The last month
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  Speaker 2: we had high inflation. It was actually on a month
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  Speaker 2: to month basis, even worse than So the March report
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  Speaker 2: was worse. The April report was bad, but not quite
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  Speaker 2: as bad in terms of the price the price index jumping.
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  Speaker 2: The problem is it looks like in this one the
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  Speaker 2: prices the inflation is starting to spread a little, and
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  Speaker 2: that's not reassuring. You know, back in March, I can
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  Speaker 2: tell you and I did tell you that without a doubt.
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  Speaker 2: You know, this was mainly confined to energy. This was
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  Speaker 2: you could see it all Iran. Now I'm worried that.
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  Speaker 2: You know, two months in what we saw was the
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  Speaker 2: pressure from high energy prices starting to push up some
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  Speaker 2: other prices.
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  Speaker 1: Yeah, in other words, the price of gas. Everything is everything,
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  Speaker 1: and every store is delivered by truck. That brings up
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  Speaker 1: the price energy costs to run your business. So it
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  Speaker 1: could just be.
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  Speaker 2: That oil goes in Remember like petroleum goes into things
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  Speaker 2: like like the dies and paints we used products. It
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  Speaker 2: goes into it, you know. I think our friend Larry Tudlow,
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  Speaker 2: once you know, figured out that like ninety percent of
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  Speaker 2: the economy is you know, directly linked to petroleum. If
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  Speaker 2: you are looking at much higher petroleum prices, and they
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  Speaker 2: are you know, I looked, we were down below three
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  Speaker 2: dollars a gallon for gasoline back in mid February. We're
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  Speaker 2: now up at four dollars and fifty cents. This is
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  Speaker 2: a you know, this is going to put pressure. It's
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  Speaker 2: also probably hurting some things. I noticed that the price
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  Speaker 2: of new cars is death. That's probably because people are
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  Speaker 2: buying fewer cars. You know. It's funny, right because the
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  Speaker 2: gas price things only temporary. But if you look through history,
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  Speaker 2: when gas prices go up by a lot, people don't
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  Speaker 2: buy as many new cars because they think, oh no, right,
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  Speaker 2: like I just can't you know, I can't afford right
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  Speaker 2: now to be putting money into the road when I'm
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  Speaker 2: putting that much money into the tank.
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  Speaker 1: Yeah. So, once things are settled in Iran, we think
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  Speaker 1: everything will work out in the end, and then how
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  Speaker 1: long before the prices come down. The present says they'll
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  Speaker 1: drop it run.
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  Speaker 2: We should see, right, we should see gas prices come
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  Speaker 2: down pretty quickly. We're entering into the summer driving months,
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  Speaker 2: which is a time when gas prices usually move up.
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  Speaker 2: People's you know, we're just driving a lot more. They
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  Speaker 2: take their families on road trips. The weather's nice, to
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  Speaker 2: the beach, drive to the mountains. But so they'll come down.
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  Speaker 2: They might not come down to where they were in February,
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  Speaker 2: but they will come down. The problem is, I probably
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  Speaker 2: said this four weeks ago, which was we really need
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  Speaker 2: to get this problem cleared up. In the straight of moves.
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  Speaker 2: Oil needs to start passing through there. The tankers need
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  Speaker 2: to pass through their freely. The place that's getting hit
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  Speaker 2: the hardest right now is actually California. Their average gas
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  Speaker 2: prices are above six dollars. Now that's a couple of things.
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  Speaker 2: They have really high taxes out there, but they also
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  Speaker 2: the climate change activists have prevented us from doing something
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  Speaker 2: that we could easily do, which is build up line
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  Speaker 2: from the Midwest out to California. We have all this
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  Speaker 2: oil we make, but it comes down into the Gulf
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  Speaker 2: of America, and it used to be you know, the
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  Speaker 2: Gulf of Mexico. It comes down there and there's no
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  Speaker 2: easy way to get it out to California. You know,
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  Speaker 2: this is insane. One hundred and fifty years ago, we
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  Speaker 2: built a transcontinental railroad. Right, we have the technology to
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  Speaker 2: get over the Rocky mountains or through the desert, but
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  Speaker 2: we for political reasons, we have been prevented from being
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  Speaker 2: able to get that oil out to California. That's very
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  Speaker 2: bad for them. The Californian environmental activists don't want it.
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  Speaker 2: The you know, the people all over America will show
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  Speaker 2: up if you try to build one, try to stop you.
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  Speaker 2: And of course the Biden and the Obama administrations just
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  Speaker 2: put the law on their side and said you couldn't
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  Speaker 2: do it. And these things take years to build. So,
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  Speaker 2: you know, if it's not enough for Donald Trump to
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  Speaker 2: say we can build the pipe line, because the next
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  Speaker 2: Democrat that comes in, we'll try to stop it. So
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  Speaker 2: Congress actually needs to act and make it clear that
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  Speaker 2: pipelines are legal in America.
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  Speaker 1: Yeah, people don't think about that. If you have to
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  Speaker 1: have the pipeline to get all that oil out to California,
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  Speaker 1: otherwise bringing it by truck or shit, it's very slow
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  Speaker 1: and costly. What's the objection?
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  Speaker 2: You won't believe what we do. Mark. We actually ship
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  Speaker 2: it either around Africa or around the end of South America.
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  Speaker 2: For the most part. It actually can't go through the
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  Speaker 2: Panama Canal because these tankers are too big.
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  Speaker 1: Wow.
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  Speaker 2: So it's almost like we're living in like a nineteenth century,
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  Speaker 2: you know, eighteenth century explorer world where you have to
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  Speaker 2: go around Africa or around the Cape of Good Hope
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  Speaker 2: to get oil from you know, from Oklahoma to California.
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  Speaker 2: It makes no sense.
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  Speaker 1: What's the environmental objection to a pipeline. It's not radioactive material,
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  Speaker 1: it's not what's the hazard?
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  Speaker 2: Yeah, there's there's not a good objection. Mainly they really
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  Speaker 2: actually want fossil fuels to be expensive. They're worried that
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  Speaker 2: if we make it cheap to get oil to California,
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  Speaker 2: Californians will use gasoline and some they want to make
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  Speaker 2: it expensive. They'll tell you, oh, we're worried about weeks,
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  Speaker 2: or we're worried about you know, the the you know,
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  Speaker 2: the spotted ferret or something whose habitat you're going to
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  Speaker 2: go through. But that's those are all just phony. What
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  Speaker 2: they're really trying to do is prevent us from building
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  Speaker 2: infrastructure that moves fossil fuels across America.
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  Speaker 1: Hey, John Carney, bright Bart Business Digest, make sure you
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  Speaker 1: subscribe to it. It's the best business thing you can
• 7:44
  Speaker 1: read every morning. Bright Bart Business Digest. The President is
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  Speaker 1: going to China, and if you read the fake news,
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  Speaker 1: apparently their economy is booming. We're weak. That president has
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  Speaker 1: no leverage. What's the truth about our economy versus their economy.
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  Speaker 2: So China's actually in much worse shape everything we just
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  Speaker 2: said about the oil prices. China is extremely dependent on
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  Speaker 2: the Persian Gulf. They are having that. They have a
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  Speaker 2: lot of reserves, so they have stacked it up, but
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  Speaker 2: they are very dependent on that. So that puts a
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  Speaker 2: lot of stress on them. They have a lot of
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  Speaker 2: problems in that we have been buying a lot less
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  Speaker 2: products from China. China is trying to find other markets,
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  Speaker 2: but other places, Europe in particular, are waking up and saying, wait,
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  Speaker 2: we don't want to have our industry destroyed by China.
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  Speaker 2: We don't want to become dependent on China. So the
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  Speaker 2: rest of the world is not being as open to
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  Speaker 2: China's trades. So China's economy is definitely not doing that well.
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  Speaker 2: They would like to make a deal with us. We
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  Speaker 2: would like to make a deal with them. The question
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  Speaker 2: is can we do it in ways that will actually
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  Speaker 2: work out. I've been skeptical for years that maybe someday
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  Speaker 2: we may just have to realize we can't have as
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  Speaker 2: much trade with China as we do that they're you know,
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  Speaker 2: I don't like the idea that. Look, it'll be great
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  Speaker 2: for the US if China agrees to buy a lot
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  Speaker 2: more energy from the US. They should be buying natural
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  Speaker 2: gas from US, they should be buying our oil. But
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  Speaker 2: I am But if the cost of that is US
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  Speaker 2: allowing them to destroy our auto manufacturing capacity by selling
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  Speaker 2: Chinese cars, you know, Chinese electric vehicles here, I don't
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  Speaker 2: think it's worth it. We don't want to become the
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  Speaker 2: energy and agricultural colony to China's manufacturing and technology behemoth.
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  Speaker 2: We we want to make, you know, So that is
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  Speaker 2: not worth doing. It would be worth it, though, if
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  Speaker 2: they say, well, they'll open their markets to more of
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  Speaker 2: our products, and we're able to prevent them from dumping
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  Speaker 2: their cheap electric vehicles into our market.
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  Speaker 1: Yeah, which is why Trump. President Trump's taking a lot
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  Speaker 1: of business leaders with him looking for business.
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  Speaker 2: I think that's very smart for him to do, because
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  Speaker 2: those guys kinda wants to play divide and conquer with America.
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  Speaker 2: They want to say to the two business guys, you know,
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  Speaker 2: whether it's you know Tim Cook and Trump called them
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  Speaker 2: Tim Apple, or you know Elon Mosk or whoever you know,
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  Speaker 2: we know your president doesn't like us, but we'll do
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  Speaker 2: deals with you.
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  Speaker 1: Guys.
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  Speaker 2: Showing up United actually will go a long way to
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  Speaker 2: helping us get a better deal with China. Ah.
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  Speaker 1: Interesting, well, brilliant as always, John Carney. Now Breitbart Business Digest.
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  Speaker 1: You write every morning right your columns every day?
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  Speaker 2: Yeah we so we so. You can check it out
• 10:44
  Speaker 2: at Breitbart dot com slash economics and you'll get all
• 10:48
  Speaker 2: the news. We report the news as suit as it breaks,
• 10:51
  Speaker 2: and then the after news bred Bark Business Digest comes out.
• 10:55
  Speaker 2: It's a free newsletter. You can subscribe you as go
• 10:57
  Speaker 2: to bredbart dot com slash Newsletters or click on the
• 11:00
  Speaker 2: oper right corner of the screen and it comes into
• 11:03
  Speaker 2: your inbox and I every day. It also has a
• 11:07
  Speaker 2: thing that I don't even barely talk about, but called
• 11:09
  Speaker 2: the Number of the Day that is the most important.
• 11:11
  Speaker 2: You know, you're our news is flooded with economic numbers,
• 11:15
  Speaker 2: so I try to pick the one that you need
• 11:17
  Speaker 2: to see every day. The number of the day is
• 11:19
  Speaker 2: in there. On Fridays, we do something really special. We
• 11:22
  Speaker 2: run back through the week and explain, you know, try
• 11:26
  Speaker 2: to put everything a little bit more in context, and
• 11:29
  Speaker 2: we get a history lesson on Fridays. It's really fun,
• 11:32
  Speaker 2: sort of a Today in economic history. So Breitbart Business Digest.
• 11:36
  Speaker 1: Everybody suggested very important. Scott besn't reads it every day,
• 11:39
  Speaker 1: Larry Cudlow, President Trump frees it. Just go to Breitbart
• 11:42
  Speaker 1: dot com, go to newsletters and sign up for the
• 11:45
  Speaker 1: Business Digest. John Carney, thanks for being with.
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  Speaker 2: Us, Thanks for having me, Mark all right.
• 11:51
  Speaker 1: Take care. Hey, We've got a lot coming up. And
• 11:53
  Speaker 1: then don't forget at noon it's Buck Sexton and Klay Travis.
• 11:56
  Speaker 1: You got the most listen to radio show in America.
• 11:58
  Speaker 1: Sean Hannity, who's going to be on that China trip
• 12:02
  Speaker 1: with President Trump? And don't forget Jimmy Fayla every night
• 12:05
  Speaker 1: at nine, what a funny show every night nine to
• 12:07
  Speaker 1: midnight on seven ten, wo