INFEMAI..IIPOO WHERAY N N I T. LE SPLALAT EMRG OADE P PS ON.. W FED FED,OH GT OF ENM SOM SOMOT THISHI I IHA HNS,RYARWH YOUOU E EXPEEXPEE PEE E PEE OR THEIR REAL EXPERIENCE. THIS FED IS ABOUT AS INEXPERIENCED A FED AS I HAVE EVER SEEN AND THEY HAVE BEEN THROWN ONE OF THE BIGGEST PROBLEMS IN ALL HISTORY, THIS HUGE INFLATION WHICH IS ACCELERATING BY THE WAY. WHEN YOU LOOK AT PEOPLE LIKE PAUL VOLCKER, LIKE ARTHUR BURNS, GREEN NEW ALAN GREENSPAN, YOU HAVE GIANTS IN THE FIELD, STRICTLY COMPETENT THEY KNEW WHAT THEY WERE DOING. THIS FED DOESN'T. WHAT WOULD YOU EXPECT THEM TO DO, LARRY? THEY DON'T KNOW WHAT TO DO. THEY'RE SITTING THERE SQUEALING AND YELLING NOT KNOWING, BLAMING EVERYONE ELSE EXCEPT THEMSELVES AND THEY SHOULD KNOW WHAT TO DO AND HAVE A PLAN THERE FOR US BUT THEY DON'T AND THEY WON'T. LARRY: THE THING IS, STEVE, TO ART'S POINT ABOUT THE LACK OF -- LARRY SUMMERS SAID THIS A YEAR-AND-A-HALF AGO THAT THIS FED IS MORE INTERESTED IN CLIMATE CHANGE AND WOKE SOCIAL POLICIES THAN PRICE STABILITY, ALL RIGHT? SUMMERS, HE SAID THAT THE I DON'T KNOW THE SPRING OF 2021, CALL IT A YEAR AGO. SO STEVE, I WANT TO HONE IN ON THIS, THEIR FIRST SENTENCE IN THE PRESS RELEASE, OVERALL ECONOMIC ACTIVITY APPEARS TO HAVE PICKED UP AFTER EDGING DOWN IN THE FIRST QUARTER, WE JUST GOT A NEGATIVE RETAIL SALES REPORT, FOLLOWING TERRIBLE CONSUMER PRICES, PRODUCER PRICES AND IMPORT PRICE REPORTS AND THE ATLANTA FED GDP TRACKER JUST REGISTERED A 0.0 FOR THE SECOND QUARTER. WHAT IS JAY POWELL TALKING ABOUT? WHAT BALONEY IS HE TRYING TO SELL US? >> LOOK, I BELIEVE ACTUALLY WE'RE IN A RECESSION RIGHT NOW. I THINK THE ECONOMY SLAMMED INTO A WALL ABOUT TWO WEEKS AGO. YOU'RE SEEING A BIG DECLINE IN EMPLOYMENT NOW. YOU'RE SEEING LAYOFFS. YOU'RE SEEING MAJOR FIRMS NOW BASICALLY SAYING THEY HAVE A FREEZE ON HIRING. YOU KNOW, YOU ASKED THAT QUESTION, WHO IS RIGHT ABOUT THE ECONOMY, COMMERCE DEPARTMENT, BIDEN OR THE FED? YOU KNOW WHO IS RIGHT ABOUT THE ECONOMY, LARRY? THE AMERICAN PEOPLE ARE RIGHT ABOUT THE ECONOMY. 80%, EIGHT OUT OF 10 AMERICANS THINK THE ECONOMY IS HEADED IN THE WRONG DIRECTION BECAUSE THEY SEE IT EVERY DAY AND I HOPE YOU DON'T THINK I'M A WIMP I SAID 5% INFLATION. WE HAVE 9% INFLATION RIGHT NOW. WE HAVE TO RATCHET IT DOWN, 5% WOULD BE A VAST IMPROVEMENT. LARRY: I DIDN'T SAY IT. ARTHUR WAS SIGNALING ME TO SAY IT. HE PUT ME UP TO IT. ARTHUR, ALL RIGHT, LOOK, THERE IS SUCH A THING AS SUPPLY SIDE INFLATION, TOO MUCH MONEY CHASING TOO FEW GOODS. WHY DOESN'T ANYBODY IN WASHINGTON WANT TO INCREASE THE SUPPLY OF GOODS? ENERGY TO BE SURE BUT REALLY ALL GOODS. BIDEN THREATENS BIG CORPORATE TAX HIKES. HE CONTINUES TO DO THAT. HE SAID IT IN PHILADELPHIA TO THE UNIONS ON MONDAY. YELLEN UP ON CAPITOL HILL, DIDN'T GET ENOUGH ATTENTION, PROMOTING HIS FY-23 BUDGET WHICH IS CHOCK-FULL OF 36 TAX HIKES, 11 OF WHICH ARE ON ENERGY, 3 1/2 TRILLION DOLLARS, ART, BUT THEY WANT TO REPEAL THE TRUMP CORPORATE TAX CUT. I THOUGHT WE WANTED TO BOOST SUPPLY? I MEAN DEREGULATE, LOWER TAXES. IF YOU'RE GOING TO MITIGATE ANY FED RECESSION NOBODY WANTS A RECESSION, YOU DON'T WANT ONE, I DON'T WANT ONE, STEVE DOESN'T WANT ONE, THE FED IS GOING TO DELIVER ONE BUT WHY CAN'T THEY HELP HIM ON THE SUPPLY SIDE ON FISCAL POLICY? >> I DON'T KNOW WHY. THEY HAVE A FETISH AGAINST THAT. FISCAL POLICY THEY COULD DO LOTS OF THINGS. THE ONE YOU LOVE VERY MUCH, I THINK'S GREAT MAKING TRUMP TAX CUTS PERMANENT. LARRY: YES. >> THAT WOULD BE REALLY GOOD. THEN WE CAN DO ALL SORTS OF STUFF ON ENERGY TO DO THAT. BY GIVING OUT ALL THE SPENDING IF WE IMPOUNDED OR SEQUESTERED ALL SPENDING AUTHORIZED, HASN'T GONE OUT YET. IF WE DID THAT WE ENCOURAGE PEOPLE TO COME BACK INTO THE LABOR FORCE. I POINT OUT ALL THE TIME AD NAUSEAM, FORGIVE ME, TOTAL EMPLOYMENT TODAY IS LESS THAN IT WAS IN FEBRUARY OF 2020 BY 800,000. IF YOU LOOK AT IT RELATIVE TO TREND IT IS DOWN BY SIX OR SEVEN MILLION. WE'RE NOT ENCOURAGING PEOPLE TO COME BACK TO WORK TO PRODUCE, TO INVEST. WE'RE NOT ENCOURAGING PEOPLE TO INVEST IN THE PRODUCT LINES AND GET PRODUCTS WITH HE NEED DESPERATELY. I DON'T THINK IS A CHANCE IN HERE THEY WILL EVER CHANGE THEIR MINES ON THIS. THEY HAVE LOCKED THEMSELVES IN, SILLY ARGUMENTS. HEAR STEVE MOORE'S COMMENTS ABOUT HIS TESTIMONY LASTING A COUPLE DAYS, WHAT THOSE ECONOMISTS WERE SAYING ON THE OTHER SIDE. IT'S CRAZY STUFF. THEY'RE NOT GOING TO MOVE. LARRY: STEVE, HOW WAS THAT, DEMOCRATS BUDGET COMMITTEE ASKED YOU TO TALK ABOUT HOW GREAT THE ECONOMY WAS, WAS THAT THE IDEA? HOW DID THAT WORK FOR YOU? HOW DID THAT GO FOR YOU? >> IT WAS, TITLE OF THE HEARING WAS THE ECONOMIC SUCCESS OF THE BIDEN RECOVERY PLAN AND WHAT I TELL MOST PEOPLE ABOUT THAT THEY BURST OUT LAUGHING, DEMOCRATS ONE AFTER ANOTHER, AFTER ANOTHER LINED UP HOW WONDERFUL ECONOMY IS DOING, FIRST HALF OF THIS YEAR THE ECONOMY IS NEGATIVE. THERE IS NO RECOVERY IN THE ECONOMY RIGHT NOW. THERE WAS KIND OF DELUSION. SHOWED HOW OUT OF TOUCH WITH AMERICA SO MANY PEOPLE IN CONGRESS ARE RIGHT NOW. TELL YOU ONE THING THAT REALLY WORRIES ME ON THE AGENDA OF THE DEMOCRATS THAT THEY TALKED ABOUT YESTERDAY IN THAT HEARING, THEY WANT PRICE CONTROLS, LARRY I THINK WE TRIED THOSE, DIDN'T WE UNDER JIMMY CARTER, PRICE CONTROLS AND WANT A WINDFALL PROFITS TAX ON ENERGY COMPANIES. ARTHUR, HOW WILL YOU LOWER ENERGY COSTS IF YOU PUT A NEW TAX ON ENERGY? THIS STUFF MAKES ABSOLUTELY ZERO SENSE. LARRY: DICK NIXON TRIED PRICE CONTROLS. >> I DO REMEMBER PRICE CONTROLS WERE PUT IN BY REPUBLICANS TOO, STEVE. I WAS THERE. >> GOOD POINT. >> NIXON PUT THEM. IT IS NOT JUST ONE PARTY. YOU REMEMBER -- LARRY: WATERGATE OR TODAY OR THIS WEEK IS THE 50th OR 60th ANNIVERSARY OF WATERGATE, SPEAKING OF DICK NIXON AND PRICE CONTROLS AN AND INFLATION. LET'S NOT GO THERE. ARTHUR, YOU'RE THE SMARTEST GUY, I'M MAKING YOU FED CHAIRMAN, WHAT WOULD YOU DO RIGHT NOW, WHAT WOULD YOU DO? >> IF I HAD THE PAUL VOLCKER ABILITY TO REALLY GET ALL THE FED MEMBERS TOGETHER GET IT PASSED DONE, NICELY HARMONIOUSLY WHICH VOLCKER WAS ABLE TO DOS I WOULD HAVE FEDERAL FUNDS DISCOUNT RATE HAVE IT AT 10% RIGHT NOW. I WOULD BE WATCHING THESE INFLATION NUMBERS AND SEEING IF WE CAN'T START BRINGING THAT INFLATION DOWN FIRST AND THEN I WANT TO BRING PRICES DOWN TO WHERE WE HAVE MUCH BETTER SYSTEM. PAUL VOLCKER HAD THE EFFECTIVE DISCOUNT RATE IN JANUARY 20th, 1981 AT 19%. THE PRIME INTEREST RATE WAS 21 1/2%. INFLATION WAS RUNNING 14, 15, 16% AT THE TIME. HE WAS ABLE TO DO THAT, BRING ALL OF THEM TOGETHER. THAT IS NOT WHAT IS HAPPENING HERE. FRANKLY I'M VERY CONCERNED THAT IT WON'T HAPPEN AND THIS INFLATION IS ON AN ACCELERATION COURSE. WE HAVE FOUR MONTHS LEFT BEFORE THIS ELECTION. LONGER THAN THAT BEFORE THE NEW CONGRESS TAKES OVER BUT I'M VERY AFRAID INFLATION WILL BE MUCH HIGHER, EMPLOYMENT WILL START DROPPING DURING THIS PERIOD, THAT STEVE MIGHT BE RIGHT. I WOULD HAVE NEVER GUESSED IT IN 100 YEARS, WE MIGHT LITERALLY BE IN A RECESSION RIGHT NOW. >> ONE FINAL POINT I KNOW WE'RE RUNNING OUT OF TIME, ANOTHER THING ABOUT THE FED, THE FED THROUGHOUT MOST OF OUR LIFETIME, LOOK AT PEOPLE VOLCKER, GREENSPAN, BERNANKE, THEY WERE FISCAL CONSERVATIVES. THEY URGED CONGRESS NOT RUN UP MASSIVE DEBTS AND DEFICITS AND THIS FED IS FILLED, IN MY OPINION WITH ALL THESE KENSYIANS WHO BELIEVE IN THIS FISCAL STIMULUS NONSENSE WHICH DOESN'T STIMULATE ANYTHING BUT GOVERNMENT. LARRY: THE FED, STEPHEN, THE FED IS WOKE, PROGRESSIVE, MODERN MONETARY THEORY. >> THAT IS EXACTLY RIGHT. LARRY: IT IS INFUSED -- >> INCOMPETENT. LARRY: WELL, YEAH, I GUESS I HAVE TO SPELL IT OUT. I GO BACK TO THE "NEW YORK POST" EDITORIAL THIS MORNING, BALONEY,
