Speaker 1: Now we had North out of Cincinnati for a seer
Speaker 1: sage and soothsayer Steve from Edna, and a fifty phone call,
Speaker 1: a news of the week in morning.
Speaker 2: Stephen, Good morning, Gary, Jeff, Mrga. Make the Reds great again.
Speaker 2: This is baseball season. I think we should quote former
Speaker 2: New York Yankee pitcher George Frasier on this subject of
Speaker 2: international trade. George said, I don't put any foreign substances
Speaker 2: on the ball. Everything I use is from the good
Speaker 2: old USA. And here's a note for you. There are
Speaker 2: no tariffs on military weapons. A point to ponder. Here's
Speaker 2: another good point made by Ecclesiastes one nine. What has
Speaker 2: been done is what will be done, and there is
Speaker 2: nothing new under the sun. A perfect example of this
Speaker 2: is the hysteria over tariffs and the stock market. Both
Speaker 2: stories are being manipulated. Here's what you need to know, mercifully.
Speaker 2: In brief, founding father and Treasury Secretary Alexander Hamilton gave
Speaker 2: us the original argument for tariffs, quote to protect America's
Speaker 2: infant industries. Following the Revolutionary War, one hundred years later,
Speaker 2: and Ohioan named William McKinley continued strong tariff policies but
Speaker 2: his goal was quote protecting American workers wages and jobs,
Speaker 2: supporting the price of farm goods, and employing reciprocity. Does
Speaker 2: that sound familiar? There is nothing new under the sun.
Speaker 2: But you'd think that if lights out for Western civilization
Speaker 2: and then there's Wall Street, nothing new here either. If
Speaker 2: I didn't know better, I think this is master manipulation.
Speaker 2: The vast majority of trading on stock exchanges involves the rich,
Speaker 2: Hemingway said. The obvious the difference between the rich and
Speaker 2: the poor is the rich have more money, so it's
Speaker 2: their money that is being traded in London, New York
Speaker 2: and elsewhere. So assuming that the rich are more in
Speaker 2: the know than the rest of us, and either they
Speaker 2: or their stockbrokers are behind most of the trades every day,
Speaker 2: what the hell is going on? Why does it look
Speaker 2: like they're losing money? Markets go up and down regularly,
Speaker 2: and the old adage is you know, you buy loads,
Speaker 2: you sell hi There is a disturbing example of this
Speaker 2: five years ago, March of twenty twenty. This was on
Speaker 2: the cusp of the COVID insanity, when our own government
Speaker 2: and private pundits hid the knowledge that the Chinese were
Speaker 2: behind the gain of function research that we held fund
Speaker 2: and gave us this deadly bug, And then we compounded
Speaker 2: a felony by masking citizens and closing the doors of
Speaker 2: the United States economy. More to the point, March the sixteenth,
Speaker 2: twenty twenty, the Dow Jones Industrial Average had its largest
Speaker 2: point drop and second largest percentage drop in history to
Speaker 2: that point. But wait, just eight days later, on the
Speaker 2: twenty fourth of March, five years ago, the Dow had
Speaker 2: its fourth largest gain in history to that point. Simple question,
Speaker 2: how could things have been so bad on the sixteenth,
Speaker 2: but so rosie eight days later? Remember that ups and
Speaker 2: downs and markets are inevitable and usually come at predictable intervals,
Speaker 2: usually about eighteen months. Recessions are also inevitable and fairly predictable.
Speaker 2: So why the panic five years ago? Could it be
Speaker 2: that the insiders who knew the truth about COVID and
Speaker 2: passed it on to their friends saw a golden opportunity
Speaker 2: to sell high before the predictable panic, then buy at
Speaker 2: the lows, and wait till the next roller coaster to
Speaker 2: do it all over again. As I write this script,
Speaker 2: we are turning things around on Wall Street in less
Speaker 2: than one week after that blizzard of selling following April
Speaker 2: Fool's Day. This talk about terrace is, on the one hand, boring.
Speaker 2: On the other hand, most enlightening history does repeat itself
Speaker 2: because humans as a group never change. Some of America's
Speaker 2: highest tariff rates on foreign countries occurred from the end
Speaker 2: of the Civil War to the start of World War One.
Speaker 2: This was also the period of the greatest annual rate
Speaker 2: increases in our gross domestic production of goods and services,
Speaker 2: accompanied by a gigantic advance in technology. As for the
Speaker 2: stock market, I recall that event back in October of
Speaker 2: nineteen eighty seven that featured the greatest one day percentage
Speaker 2: loss at that point in the Dow. It was twenty
Speaker 2: two zero point sixty one percent in paper losses in
Speaker 2: twenty four hours. But if you had just done nothing,
Speaker 2: no panic selling, your portfolio would have been right back
Speaker 2: where it started in one year. The market, like some investors,
Speaker 2: is schizophrenic, except for the insiders because they know better.
Speaker 2: And by the way, they don't teach economics and journalism schools.
Speaker 2: So the news isn't really news, is it? Think about that? One?
Speaker 2: Boys and Girls and Sleep Tight Tonight by Gary Jeff
Speaker 1: Steve I'm reminded of my friend Ken Carly, who yesterday said,
Speaker 1: quite adroitly, economic forecasters were invented to make weather forecasters
Speaker 1: look better.