Speaker 1: The voices of episode glad we have you heard daily
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Speaker 1: Hey six at fifty five camera see the talk station.
Speaker 1: It is that time of the week, Every Tuesday, it's
Speaker 1: the inside Scoop with bright Bart News. I always start
Speaker 1: out with a segment saying, book market br E I
Speaker 1: t BA RT dot com. You'd be glad you did
Speaker 1: great stuff there, most utly by the economics editor and
Speaker 1: co author of the bright Bart Business Digest, The Return
Speaker 1: of John Carney. Welcome back, John. It's always a pleasure
Speaker 1: to have you on the morning show.
Speaker 2: Yes, thanks for having me.
Speaker 1: Now, we've been hearing about a market correction for months
Speaker 1: and months, if not a couple of years. Market's overvalued.
Speaker 1: There's going to be a correction. And lo and behold.
Speaker 1: Now that the market is down and there has been
Speaker 1: what is characterized as a correction with the S and
Speaker 1: P five hundred ten percent, it's Trump's fault with the tariffs. Now,
Speaker 1: I don't know if you can draw a straight line
Speaker 1: between tariffs and the market. I know the market reacted
Speaker 1: to tariffs and a lot of economists don't like them
Speaker 1: because they say, it's an additional tax on the American people.
Speaker 1: And I'm kind of sitting on the fence one way
Speaker 1: or another about whether they're a good thing or not.
Speaker 1: But you can't compete with a country like China. I mean,
Speaker 1: they have slave labor, they don't have OSHA, they don't
Speaker 1: have unions, they don't have regulations. I mean it's just,
Speaker 1: you know, we don't have an equal playing field. And
Speaker 1: so tariff seemed to be sort of an honest way
Speaker 1: of dealing with goods flowing in from China. What's your take?
Speaker 2: That's right. Look, it even goes further beyond that. China's
Speaker 2: predatory practices actually have really depressed investment in US innovation
Speaker 2: because let's say you want to build a rare earth
Speaker 2: mining facility in the US. So you spend a couple
Speaker 2: hilarious yeah dollars to build this facility. China will subsidize
Speaker 2: its rare earth mining so that the price drops the
Speaker 2: low the cost of production until the US facility goes
Speaker 2: out of business. This has actually happened a few times,
Speaker 2: not just in rare earths, but in many different fields.
Speaker 2: And so what we see is a lack of investment
Speaker 2: because you know, if you put in place that investment,
Speaker 2: China will come in to wipe you out with their
Speaker 2: state backed companies. So what does that mean. It means
Speaker 2: that we have to do something about it if we
Speaker 2: want to be innovative, if we want to be able
Speaker 2: to do these kind of industries in the US, and
Speaker 2: so Trump is doing that. I also have to say
Speaker 2: I don't buy the tariffs caused the selloff argument at all.
Speaker 2: Trump got elected back in November. Everybody knew tariffs were coming.
Speaker 2: The market did very well in November, December, and January,
Speaker 2: sold off in February and the beginning of March. That
Speaker 2: timing doesn't make a lot of sense unless you have
Speaker 2: the theory that somehow people thought Trump was joking about tariffs.
Speaker 2: I mean, he was already president. We know he wasn't joking.
Speaker 2: This was real, it was coming. I don't buy the
Speaker 2: narrative that tariffs caused the sell off.
Speaker 1: Yeah, and I recognize that completely. So I'm willing to
Speaker 1: give that a nod, and again a correction was long overdue.
Speaker 1: But the other component of it is, of course, when
Speaker 1: you point out China, can you know, build something subsidize
Speaker 1: it to to undermine any efforts here to compete on
Speaker 1: any playing field. They also don't have to fight environmental
Speaker 1: lawsuits and challenges that seem to come out of the
Speaker 1: four corners of the globe.
Speaker 2: Right, they don't have judges that will enjoin every single
Speaker 2: thing that the that their government attempts to do to
Speaker 2: encourage innovation. Right. If Donald Trump says, you.
Speaker 3: Know what, I legally, under the law, I have the
Speaker 3: authority to suspend this regulation, to change this regulation, because
Speaker 3: that's been a power given by Congress to the executive
Speaker 3: branch to set the regulations, a federal judge will.
Speaker 2: Say, Nope, I'm not going to let you do that.
Speaker 2: China doesn't have the problem a little of an activist
Speaker 2: judiciary getting in the way of pro industrial reform.
Speaker 1: If they did, they would be, in modern parlance, disappeared.
Speaker 1: If you know what I mean, well, exactly right. And
Speaker 1: the Trump's efforts, of course, are to return business to
Speaker 1: the United States. You know, if it's more expensive to
Speaker 1: do business elsewhere, then someone might likely relocate to the
Speaker 1: United States where they're going to enjoy the tax advantages
Speaker 1: of being here. And that's already borne fruit to some degree.
Speaker 1: Got Ge Aerospace a Sahi JSW Steel Honda, Hyundai, LG, Samsung,
Speaker 1: and stilanis promising to invest billions of dollars here in
Speaker 1: the United States. And this is an effort that's going
Speaker 1: to take time, but it also responds to a challenge
Speaker 1: of something we all painfully learned from COVID is that
Speaker 1: we woke up to the reality that China was making
Speaker 1: literally everything that we needed by way of healthcare products,
Speaker 1: including all of our medicines. That is scary that component itself.
Speaker 1: Pharmaceuticals manufactured based on Chinese components or fully manufactured in China,
Speaker 1: those are pharmaceuticals a Phillip Perry relies on as well.
Speaker 2: That's right. Look, there are some things that it's fine
Speaker 2: if you have to import it. We can make chocolate
Speaker 2: in America without growing our own cocoa because if ever
Speaker 2: there's a disruption in chocolate, that would break my wife's heart.
Speaker 2: But it's not going to be a threat to national
Speaker 2: suiture exactly. But we do need to grow our own
Speaker 2: wheat and we have to have our own millers to
Speaker 2: make the flour so that we can bake bread. So
Speaker 2: and you know that's true about when it comes to
Speaker 2: steel copper. It's true about medicines. Becoming dependent on imports
Speaker 2: for critical things that you cannot survive without, or that
Speaker 2: you cannot be the arsenal of democracy and freedom in
Speaker 2: the world without should be a non starter. We absolutely
Speaker 2: have to do this, and I think that the market
Speaker 2: is actually going to realize that this is going to
Speaker 2: be good for America. I think that that actually there's
Speaker 2: a fun Man survey out of the back of America
Speaker 2: today that says cash holdings among global fund managers are
Speaker 2: very high.
Speaker 3: They were very low.
Speaker 2: This is a contrarian indicator. When there's a lot of
Speaker 2: cash not invested in the market, that's a sign that
Speaker 2: the market can go up. When there's very little cash
Speaker 2: that's not invested, it's very hard for the market to
Speaker 2: go up because nobody has more money to put into stocks.
Speaker 1: Well, one of the other things that seems to be
Speaker 1: bearing fruit, I know it isn't as expensive for me
Speaker 1: to fill my gas tank up right now. Trump's energy
Speaker 1: policies obviously one hundred and eighty degrees shift from the
Speaker 1: Biden administration, and they're green a focus in this nonsensical
Speaker 1: idea that we can rely on the wind and the
Speaker 1: sun to power our electric grid. And fortunately on board
Speaker 1: with the Trump administrations all the above policies. Some major
Speaker 1: tech companies that now want to build their own modular
Speaker 1: nuclear plants, which will allow that technology to come to
Speaker 1: the unwashed masses, which it should have already. So reducing
Speaker 1: the regulatory burden and opening up all of these different
Speaker 1: areas of energy development is going to be really sick
Speaker 1: helpful for our country.
Speaker 2: That's right. If we can bring down the cost of energy,
Speaker 2: that will be very helpful to the US economy. And frankly,
Speaker 2: people who are very upset about things like USAID going
Speaker 2: away should actually be one hundred percent on board with
Speaker 2: energy abundance because guess what will help the developing world
Speaker 2: more than any other handout that we can give them
Speaker 2: is cheaper energy. That's great for the US economy, it's
Speaker 2: great for the global economy, and we're going to get there.
Speaker 2: I mean, I have never seen an administration more focused
Speaker 2: on the production of energy than Donald Trump is. He
Speaker 2: really believes that that is one of the key things
Speaker 2: we can do to fire up our economy.
Speaker 1: Well, and I'm convinced, you know, honestly, and I've never
Speaker 1: been a person who believes that you and I are
Speaker 1: exhaling our way into extinction. You know, CO two happens
Speaker 1: to be plant food, which is good for plants, and
Speaker 1: we chase our tails with this. And I'm I'm really
Speaker 1: convinced considering China builds like two coal plants every single
Speaker 1: day and they don't care whit's worth of what they're
Speaker 1: putting into the environment, that they are one of the
Speaker 1: entities evil they may be that is pushing this myth
Speaker 1: on the United States and the European nations and perpetuating
Speaker 1: this myth that we need to all you tighten our
Speaker 1: belt and rely on the wind and sun to our
Speaker 1: collective peril. Everything runs on energy, and the cheaper the energy,
Speaker 1: the less expensive products and goods and services are. And
Speaker 1: that's like giving everybody a tax break. If you can
Speaker 1: lower my monthly energy bill by one hundred bucks, that's
Speaker 1: making me one hundred dollars more wealthy. I can still
Speaker 1: live in my house at the temperature I want, and
Speaker 1: I've got a little bit more money in my pocket.
Speaker 1: It's like they're whittling it away at every turn.
Speaker 2: That's right. There is almost a semi religious aspect to
Speaker 2: the climate change of armism, where they believe that if
Speaker 2: we can you know, more or less get ourselves to
Speaker 2: live in poverty. Yeah, than the gods of the climate
Speaker 2: will forgive us and everything will go. Well, that's not
Speaker 2: going to happen. There are no gods of the climate,
Speaker 2: and there's very little. Look, I do believe that climate
Speaker 2: change is happening in the world. I do not believe
Speaker 2: that deciding that the US should be a poorer country
Speaker 2: or use less energy is going to make a witch difference.
Speaker 2: Not just because China is going to keep polluting as
Speaker 2: much as they are. They'll even pollute more because if
Speaker 2: we're not using the energy, they'll use more of it, Yeah,
Speaker 2: but also because the long history suggests that climate change
Speaker 2: is something that happens on Earth all the time.
Speaker 1: Exactly, it happens all the time. There was a mini
Speaker 1: ice age. We used to have a glacier that covered
Speaker 1: the entire state of Ohio. It's why it's flat. It's
Speaker 1: why we grow corn here now, you know. And I'm
Speaker 1: glad it's gone. I'm glad they heat it up a
Speaker 1: little bit.
Speaker 2: We are not.
Speaker 1: We couldn't survive if this is all a glacier still,
Speaker 1: So they overlook that and just focus on the most
Speaker 1: recent weather event, as if that one is, Oh, that's
Speaker 1: our fault this time. It's nonsense, that's right.
Speaker 2: You know, it's I was talking to a friend of
Speaker 2: mine who lives in New Orleans and it snowed in
Speaker 2: New Orleans for the first time in a long time,
Speaker 2: and they told us that that is also because of
Speaker 2: climate change. So if the weather's cold, then they say
Speaker 2: that's because of global warming. If the weather's hot, they
Speaker 2: say that's because of global warming. Frankly, as you said,
Speaker 2: the climate changes, if you look at the history of Europe,
Speaker 2: you'll see that climate change actually had a big effect.
Speaker 2: I'm not saying it doesn't matter or it doesn't have
Speaker 2: an effect. It will have an effect. Places like Ohio
Speaker 2: and even further places like North Dakota will become more fertile,
Speaker 2: become better farmland. Frankly, other places will become hotter. That
Speaker 2: is going to happen. However, we can find ways to
Speaker 2: live with that rabit than trying to bow down, you know,
Speaker 2: sort of beat our backs with the whips of anti
Speaker 2: energy policies in order to try to appease the gods
Speaker 2: of climate change.
Speaker 1: Well, you know, every time it happens, the volcano erupts.
Speaker 1: We had the wildfires in California, statisticians. Statisticians come out
Speaker 1: and point out, well, that negated all of our efforts
Speaker 1: to rid the planet a CO two for the past
Speaker 1: five or six years with what it belched out in
Speaker 1: terms of the naturally occurring event. I mean, you're fighting
Speaker 1: the Sissivian challenges. Is not going to happen. So nature
Speaker 1: will take its course and negate what you've tried, and
Speaker 1: we'll all end up starving while we're trying to fight nature.
Speaker 1: Back over to USA, and you mentioned USA it earlier,
Speaker 1: and I know it's just a just a small slice
Speaker 1: of government spending, but what the revelations that are coming
Speaker 1: out of what Department of Government Efficiency is doing are
Speaker 1: just mind boggling. And the American taxpayers getting a real
Speaker 1: eye full of all the waste and fraud and abuse
Speaker 1: that the government has been engaged in, the crazy projects
Speaker 1: we've been funding. And the Democrats are pulling their hair
Speaker 1: out over it, and I keep calling it, they're trying
Speaker 1: to defend the indefensible. I can't believe any single American
Speaker 1: taxpayer really wants us to continue funding pick one trimp
Speaker 1: on treadmills, you know, the Sesame Street in Iraq, I mean,
Speaker 1: go on. The list is almost endless and the low
Speaker 1: hanging fruit. Looking at the Social Security Administration, we've got
Speaker 1: hundreds and thousands of Social Security numbers that are still
Speaker 1: active now whether or not they're getting money from them,
Speaker 1: but they're still active for people who are obviously dead
Speaker 1: that should have been cleaned up a long time ago.
Speaker 2: And those numbers have actually even if the Social Security
Speaker 2: Administration is not sending out checks to people who are
Speaker 2: one hundred and sixty years old, which by the way,
Speaker 2: I know that people say they are not. We need
Speaker 2: a thorough accounting to make sure they are not. I
Speaker 2: do not trust that Bernie Sanders knows that they are
Speaker 2: definitely not setting out checks. He said this the day
Speaker 2: it came out. How could he know that. So yes,
Speaker 2: let's look through the books. But those social Security numbers
Speaker 2: of long den people are actually have actually been used
Speaker 2: in all sorts of fraudulent ways, just getting small business
Speaker 2: loans from the US government. So it is not a
Speaker 2: harmless thing that those exist.
Speaker 1: Of course, and people can use those who are not
Speaker 1: lawfully eligible to be employed in this country. That if
Speaker 1: using fake social Security numbers happens all the time, you
Speaker 1: just grab one, you present it to your employer, and
Speaker 1: boom you're in. So there's just all kinds of areas
Speaker 1: that where it can be abused.
Speaker 2: And also think that you brought up the you know,
Speaker 2: one of the excuses people say, like usaid, it's just
Speaker 2: the small piece of the federal government. First of all,
Speaker 2: it's forty eight to sixty billion dollars. In my book,
Speaker 2: that's that's not real money. Second, it's incredible that they
Speaker 2: try to say, why do you care about that sixty billion? Well, okay, look,
Speaker 2: if you write me a check for sixty billion, I
Speaker 2: promise I will also waste it, and nobody should care.
Speaker 2: The other thing I will say is that the way
Speaker 2: our deficit is built is on a zillion little pieces
Speaker 2: that you if you could say to any one part, oh,
Speaker 2: that's just so small, don't do anything about it. Well
Speaker 2: that means you can't do anything about anything, because every
Speaker 2: aggregate is built of small pieces.
Speaker 1: Well, I'm a firm believer in my lifelong adage, mind
Speaker 1: the pennies, the dollars, mind themselves. So I wasn't trying
Speaker 1: to negate the importance of what they're doing. Everything counts,
Speaker 1: even if it's allows the four hundred thousand dollars grant
Speaker 1: to some university for DEI or something cut it. We
Speaker 1: shouldn't be spending our money on that. I'll tell you what.
Speaker 1: John Carney, he is the economics senator co author of
Speaker 1: the Breitbart Business Digest. I really strongly encourage you to
Speaker 1: bookmark Breitbart dot com. It's an integral part of my
Speaker 1: preparation for the morning show. They do great reporting and
Speaker 1: they stay on top of things you're not going to
Speaker 1: find the mainstream media.
Speaker 2: John.
Speaker 1: It's always a pleasure talking with you, my friend. I
Speaker 1: look forward to our next conversation.
Speaker 2: Thanks for having me.
Speaker 1: This is great my pleasure. It's a twenty one stick
Speaker 1: around the Daniel Davis Deep Dive. We're at the latest
Speaker 1: on Russia, Ukraine, Israel and Jamas with Daniel at the
Speaker 1: bottom of the hour. Hope you can stick around for that.
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