Speaker 1: Summer. What is happening now?
Speaker 2: Russia US in the market.
Speaker 1: Every day, every day happens here.
Speaker 3: I'm fifty five KRC, the talk station, Ato six fifty
Speaker 3: five kr CE the talk station.
Speaker 1: It's that time a week. I always look forward to it.
Speaker 3: We get the inside scoop from bright Bart News, b
Speaker 3: R E I t B A art dot com book market.
Speaker 3: Like I always say, we start out this segment book market,
Speaker 3: you'd be glad you did, because you don't want to
Speaker 3: live in an echo chamber. You're going to get some
Speaker 3: really good reporting and some reporting that's well done and
Speaker 3: isn't tainted with the left wing liberal bias like it's
Speaker 3: terrible out there.
Speaker 1: We're all gonna die.
Speaker 3: Joining us to talk about that, John Carney, return of
Speaker 3: John Carnegie, bright Bart News Finance and economics editor as
Speaker 3: well as co author of the breit Bart Business Digest. John,
Speaker 3: welcome back to the fifty five KRC Morning Show. It's
Speaker 3: a pleasure to have you back on.
Speaker 2: Yeah, thanks for having me. And we are all going
Speaker 2: you to die, just not yet.
Speaker 1: Right. It's death and taxes, right, John.
Speaker 2: That's right. You know, well, but maybe a little less
Speaker 2: taxes and you know, maybe we'll get to live a
Speaker 2: little bit longer that we can.
Speaker 1: Let's hope for that.
Speaker 3: But you know, as we talked quite a bit about
Speaker 3: the echo chamber, and many people live in their own
Speaker 3: echo chamber, I think notably politicians. We talk about the
Speaker 3: DC swamp, and something happens to people when they get
Speaker 3: elected and move off to Washington, d C. Their collective
Speaker 3: psyche is somehow removed somewhat from reality. But in this
Speaker 3: modern age where we can pick and choose which news
Speaker 3: outlets we want to get our news from, uh, some
Speaker 3: people choose to dwell on the left leaning sites and
Speaker 3: never leave them. Some people choose to dwell on the
Speaker 3: right leaning sites and never leave them. And you truly
Speaker 3: get a completely different perspective depending on.
Speaker 1: What you're reading and where you're reading it.
Speaker 3: And so generally speaking, our topic today is the economy,
Speaker 3: good or bad. Now, I just want ahead to pull
Speaker 3: up gasbuddy dot com and I'm pleased to see that
Speaker 3: the average price erection regular gas, at least in my neighborhood,
Speaker 3: is now down to two dollars and seventy nine cents.
Speaker 3: And it wasn't that long ago that I was paying
Speaker 3: north of three, if not even four dollars and I'm
Speaker 3: sure you remember that and maybe even worse where you live, John,
Speaker 3: But that's a great one. That's something that we all
Speaker 3: have to deal and cope with, and that's a sign
Speaker 3: that the economy is doing better. At least that price
Speaker 3: has come down. And I know the price of eggs
Speaker 3: has come down because I read about it at Breitbart,
Speaker 3: down sixty one percent since Trump took office. We don't
Speaker 3: have runaway inflation anymore. I think the report was that
Speaker 3: core inflation is the lowest in four years. All of
Speaker 3: this sounds like positive news, John.
Speaker 2: It is positive news. This is we just went through
Speaker 2: the lowest Memorial Day weekend gas prices other than not
Speaker 2: counting twenty twenty when we were locked down and people
Speaker 2: weren't really traveling much, but in decades it was. And
Speaker 2: gas prices probably this summer are going to average around
Speaker 2: three dollars a gallon. You're where you are, it's already
Speaker 2: cheaper than that. It's going to get cheaper than that.
Speaker 2: I mean, it's been a while since some of us
Speaker 2: saw a two at the beginning of the game, avice,
Speaker 2: which is, you know, quite thrilling and frankly good for
Speaker 2: the economy. Because remember, every dollar that we're not pumping
Speaker 2: into our gas tank is a dollar that you can
Speaker 2: spend taking your family out to dinner, going on vacation,
Speaker 2: but you know, spending on back to school clothes. So
Speaker 2: it's actually acts as a tax cut for the economy.
Speaker 2: People have more money in their pockets or to save. Frankly,
Speaker 2: you know, they're not just spending it to get to
Speaker 2: work to drive their cars. So this is a really
Speaker 2: good thing for the economy. And what we're seeing throughout
Speaker 2: the economic numbers is that the economy is actually doing
Speaker 2: quite well. The Atlanta Fed's GDP now estimate, which is
Speaker 2: you know, it changes a lot over the course of
Speaker 2: a quarter, but it tries to look at the most
Speaker 2: recent economic doubt and says, if this is how if
Speaker 2: the economy looks exactly how it does right now through
Speaker 2: the rest of the quarter, what would that mean? It
Speaker 2: has us growing at three point eight percent. Now, I
Speaker 2: don't think we're going to grow at three point eight
Speaker 2: percent in this April through June period, but we are
Speaker 2: growing pretty fast and the economy is doing very well,
Speaker 2: which again you wouldn't know looking at a lot of
Speaker 2: the headlines elsewhere, because there is a lot of doom
Speaker 2: and gloom out there, but I don't and that has
Speaker 2: depressed consider sub to it. But I don't think that'll
Speaker 2: last because, as I've said a number of times, you
Speaker 2: can't really fool people about the economy because they see
Speaker 2: it in their paychecks, they see it in their neighbors.
Speaker 2: They know when people have jobs. So the truth will
Speaker 2: out when it comes to the economy.
Speaker 3: So let me assaysk you in this fashion. Is the
Speaker 3: gloom and doom reporting that I see regularly because for
Speaker 3: this job, John, I got to look at everything. I
Speaker 3: look at left wings, I look at right wing sites,
Speaker 3: I look at everything in the middle, so I kind
Speaker 3: of get a clear picture of where the bad news
Speaker 3: is coming from. Is this a phenomenon of like Trump
Speaker 3: derangement syndrome? We cannot say a positive thing because Donald
Speaker 3: Trump might get credit for it.
Speaker 2: It is what's really funny. So I read everything there
Speaker 2: is that comes out about the economy because that's my job,
Speaker 2: and I can see where the way this manifests itself
Speaker 2: is that when there is good news, it is spun
Speaker 2: in the worst way. Yes, when we got good news
Speaker 2: on inflation, there were headlines that said inflation is low,
Speaker 2: but that probably won't last for law.
Speaker 1: Right.
Speaker 2: In other words, you know, they ignore the actual good
Speaker 2: data and try to lead with the scary prediction. It
Speaker 2: doesn't really make sense, but it's definitely out there, this
Speaker 2: pushing the gloom narrative.
Speaker 3: Yeah, and you know it's funny because I have a
Speaker 3: financial planner on the program every week to talk about
Speaker 3: you know, financial planning, and you know the things that
Speaker 3: impact our long term outlooks. And you know, you're always
Speaker 3: pointing out, yeah, it's this way now, but it will change.
Speaker 3: The markets go up, the markets go down. That's inevitable.
Speaker 3: So enjoy it while it lasts, because, yes, the inflation
Speaker 3: will change in one direction or another. It may very
Speaker 3: well get better to leave that part out, you know.
Speaker 2: Yes, And look, I think that there probably will be
Speaker 2: some prices. I've said this before. Tariffs will affect some prices.
Speaker 2: It'll push some prices up, but it will most likely
Speaker 2: result in other prices being lower. So it won't result
Speaker 2: in the kind of inflation that we just lived through,
Speaker 2: which was month after month, all prices more or less
Speaker 2: going up. We won't see that this time. We may
Speaker 2: see some things that are directly affected by teriffs. Those
Speaker 2: prices go up, but remember most of the things people
Speaker 2: buy in America are services, first of all not affected
Speaker 2: by tariffs, and second are domestically produced goods. Your eggs,
Speaker 2: for instance, most of your groceries. Yes, avocados, a lot
Speaker 2: of them are imported, but a lot of what we
Speaker 2: buy is not actually imported won't be affected by tariffs.
Speaker 2: Only some of it will go up in price and
Speaker 2: other things will come down, so I don't expect some
Speaker 2: sort of big inflation from the tariffs.
Speaker 3: Well, and going back to the price of fuel, obviously
Speaker 3: the price of diesel also has dropped, and that's what
Speaker 3: we pay for in terms of delivering all the goods
Speaker 3: and the goods in our country to the supermarkets and elsewhere.
Speaker 3: So maybe some of the potential increases from terrafs might
Speaker 3: be offset by lower transportation costs, so we won't feel
Speaker 3: it as badly.
Speaker 2: I think that's right. We'll have lower transportation costs and
Speaker 2: lower energy costs to produce things because, as you said,
Speaker 2: you know, when you order something online it gets delivered
Speaker 2: by a truck that you have to fill that up
Speaker 2: with guessing. But even further out in the economy, a
Speaker 2: lot of things have to be shipped either by rail
Speaker 2: or by truck to a factory to be processed into
Speaker 2: a good that we make. And so when you bring
Speaker 2: down the cost of fuel, it actually does have a
Speaker 2: ripple effect through the economy that can actually have a
Speaker 2: deflationary effect, and I think we're going to see that
Speaker 2: counter balancing this inflationary effect. One of the things that
Speaker 2: the re election of Donald Trump has done is reassure
Speaker 2: people that, yes, when we have Democrats in office, they
Speaker 2: will probably try to crack down on fossil fuels. But
Speaker 2: we're not on a one way track, right. This war
Speaker 2: against fossil fuels is not inevitable. It's not just going
Speaker 2: to happen in one direction. We can push back and
Speaker 2: do energy abundance. And I think that's very reassuring to
Speaker 2: anybody who wants to, for instance, either go to work
Speaker 2: in the field of drilling or extracting, or or be
Speaker 2: a chemical engineer. In these fields. Those are all threatened occupation, yes,
Speaker 2: much less being an investor in those fields who wants
Speaker 2: to invest in something the President is saying he's going
Speaker 2: to wipe out in the next ten years nobody. Instead,
Speaker 2: now people can feel a little bit more reassured that
Speaker 2: we're not going to allow the government to wipe out
Speaker 2: oil natural gas.
Speaker 3: Well, we've also got cautionary tails out in the world
Speaker 3: which are causing people to maybe take some pause over
Speaker 3: pursuing this so called green energy production. And we had
Speaker 3: the whole issue in Spain and Portugal with the outage
Speaker 3: of the power plants who relied I guess like seventy
Speaker 3: five percent on solar. They had a major disruption because
Speaker 3: solar is not isn't easily controlled because of the sun
Speaker 3: like ebbs and flows. But that if you don't have
Speaker 3: backup energy production gas coal, nuclear, the lights are going
Speaker 3: to go out, and no, no one likes that when
Speaker 3: they're stuck on an elevator, most notably right.
Speaker 2: So you absolutely, you know it's fine to supplement oil
Speaker 2: natural gas with solar panels, you know water when that's great,
Speaker 2: but again those are not reliable. You know, the weather changes,
Speaker 2: the climate changes, so you can't count on it to
Speaker 2: be there when you need it. At the very least,
Speaker 2: you need an underlying infrastructure that's going to base down
Speaker 2: fossil fuels for the foreseeable future. So they were trying
Speaker 2: to push us ahead to a future that we actually
Speaker 2: don't have the technology for you. We cannot be reliant
Speaker 2: on solar power, for instance, and we won't be. And
Speaker 2: but the problem is when they were trying so hard
Speaker 2: to push us, they were trying to make it so
Speaker 2: that people would invest less in fossil fuels. And when
Speaker 2: you invest less than fossil fuels, you're extracting ress of it,
Speaker 2: which pushes up the price. So even though they claimed
Speaker 2: that they weren't trying to raise the price in gasoline
Speaker 2: and oil and natural gas, of course they were. Of
Speaker 2: course it was very intentional. They wanted it to be
Speaker 2: more expensive.
Speaker 3: Well, Barack Obama famous quote the price of gas will
Speaker 3: necessarily go up, and didn't he predict the future accurately?
Speaker 3: I mean, that was the idea, you know, And I
Speaker 3: have a t shirt that says, you know, great ideas
Speaker 3: do not require force. And this green energy crap is
Speaker 3: being is being forced upon an economy that is not
Speaker 3: demanding it, either through incentives or just outright bands and
Speaker 3: refusals to allow drilling or whatever. You know. Extraction goes
Speaker 3: on by the permitting requirements to get a modular nuclear
Speaker 3: plant build all the impediments that are thrown in the
Speaker 3: way by government force you to go into a direction
Speaker 3: you don't want to go, and that's that's going to
Speaker 3: cause problems with the price of gasoline, which it did intentionally.
Speaker 2: Right and we also so to follow through on that theme,
Speaker 2: they were trying to force the car companies to make
Speaker 2: far more electric vehicles. The car companies discovered is that
Speaker 2: their demand just isn't there. People don't want People will
Speaker 2: buy hybrids, but the demand for a pure electric car
Speaker 2: is not there. The market has rejected this. It's a
Speaker 2: niche market. It's fine, there will always be a small segment,
Speaker 2: but it doesn't fit the lifestyles of many people across America.
Speaker 2: So they were trying that. They were trying to rate
Speaker 2: and raise the price of extraction. Basically banned pipelines. If
Speaker 2: you can't have pipelines, you can't get oil to a refinery.
Speaker 2: There's no point in even taking it out of the ground.
Speaker 2: It's almost impossible to build a new refinery. Fortunately, there
Speaker 2: was recently last week a new Supreme Court decision that
Speaker 2: actually may be pairing back some of the environmentalists interference
Speaker 2: in the US, and that could be very helpful.
Speaker 3: It is you don't have to look at the downstream
Speaker 3: changes at what others downstream will do in connection with
Speaker 3: whatever project is being as an environmental review.
Speaker 2: I believe that was I don't even like to call
Speaker 2: it downstream changes. It was really imaginary changes. Somebody could
Speaker 2: come up with some way that this could be the
Speaker 2: pollution in the future. You couldn't build it, right, so
Speaker 2: you wanted literally in this in the case was that
Speaker 2: was settled by the court, decided by the court. Somebody
Speaker 2: wanted to build a railroad, right, and somebody said, well,
Speaker 2: if you build the railroad there, somebody might drill for
Speaker 2: oil nearby, because you'll have a railroad that they could
Speaker 2: ship the oil on, and that would cause more and
Speaker 2: when you burn that oil, it would put carbon in
Speaker 2: the air, which may cause global climate change, which therefore
Speaker 2: your character I mean.
Speaker 1: And then you have to do it.
Speaker 3: You have to do the environment You have do an
Speaker 3: environmental study for a project that hasn't even been suggested yet.
Speaker 3: I mean, that's the absurdity of it. And then that
Speaker 3: project obviously would yield further downstream environmental studies for fictitious
Speaker 3: product that someone came up within their head. The idea
Speaker 3: that we lived in that world up until the Supreme
Speaker 3: Court decision came out just boggles my mind, John, It
Speaker 3: really does.
Speaker 1: You know.
Speaker 2: And one of the most amazing things is that decision
Speaker 2: was nearly unanimous. It was just because one of the
Speaker 2: judges didn't participate in it ato, so even the liberal
Speaker 2: judges agreed that it had gone way too far. And
Speaker 2: to me, it's actually kind of amazing that we weren't
Speaker 2: having a bigger discussion about this. Congress actually should have
Speaker 2: acted even earlier. They should have been rekealing this law
Speaker 2: because it was crazy that it took the courts to
Speaker 2: say we shouldn't have this.
Speaker 3: How many topics could we say that prior sentence Congress
Speaker 3: should have acted? How many topics could we talk about
Speaker 3: Congress should have acted? Uh?
Speaker 1: You find it at Breitbart b R E. I. T. B.
Speaker 1: A Art. He is the financi and Economics editor.
Speaker 3: Always a pleasure to have you on the program, John Carney,
Speaker 3: keep up the great work, friend. I'll look forward to
Speaker 3: another discussion with you soon.
Speaker 2: Thanks for having me.
Speaker 3: Always a pleasure. It's a twenty right now at fifty
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