DAVID. THANK YOU VERY MUCH, MY FRIEND. APPRECIATE IT. >> HAVE A GREAT WEEKEND. CHARLES: YOU TOO. LET'S BRING IN THE GREAT KUDLOW, LARRY KUDLOW, HOST OF "KUDLOW." LARRY, LET'S PING ON THIS DISCUSSION OF INFLATION BECAUSE YOU SAY THERE'S NO MONETARY INFLATION, BUT THERE IS FISCAL AND REGULATORY INFLATION. >> YEAH. I MEAN, I WOULDN'T NECESSARILY SAY NO MONETARY INFLATION -- CHARLES: RIGHT. >> BUT MONEY SUPPLY NUMBERS ARE VERY CALM. THEY WERE VERY RAPID A COUPLE OF YEARS AGO. THAT'S ALL COME OUT -- CHARLES: WELL, THEY WENT UP BIG AND NOW THEY'VE COME DOWN BIG. >> YEAH. AND THE FED'S BALANCE SHEET IS PROBABLY A LITTLE TOO LOOSE FOR MY TASTE. THAT'S HIGH-POWERED MONEY. BUT I THINK, YOU KNOW, THE THE SOURCES OF INFLATION ARE GOVERNMENT SPENDING. WE'RE HAVING AN AN ORGY OF GOVERNMENT SPENDING. AND THE IMF JUST RAILED ABOUT IT. WE JUST SAW A REPORT FROM PENN-WHARTON, AND THEY'RE NOT SUPPLY SIDERS, BUT THEY'RE MAKING THE SAME ARGUMENT. YOU'RE SEEING A LOPSIDED ECONOMY. ALL THIS GOVERNMENT SPENDING IS INCREASING CONSUMER DEMAND. BUSINESS IS SOFT. IN FACT, MANUFACTURING HAS BEEN FLAT FOR A COUPLE OF YEARS AND MACHINERY AND EQUIPMENT HAS BEEN BASICALLY FLAT FOR ALMOST TWO YEARS. CHARLES: RIGHT. >> IT'S GOVERNMENT TO CONSUMER. AND BECAUSE WE'RE NOT CREATING SUPPLY-SIDE GROWTH IN THE ECONOMY, YOU'VE GOT EXCESS DEMAND. THROUGH THAT -- I DON'T THINK INFLATION IS SLAIN BECAUSE OF THAT. AND I DO THINK THE INFLATION NUMBERS THIS WINTER, 4.5% ANNUAL RATE IN THE FIRST QUARTER, IS SOMETHING TO GIVE THE FED PAUSE, AND I THINK THE FED IS RIGHT. THE OTHER THING IS REGULATORY INFLATION. LOOK, ALL THIS, YOU CAN START WITH THE CRAZY CLIMATE CHANGE AND ALL THE REGULATIONS TO STOP FOSSIL FUEL. THEY'RE TRYING TO PUMP IN SUBSIDIES AND TAX CREDITS FOR CLIMATE, FOR WIND TURBINES, FOR SOLAR, FOR ELECTRIC VEHICLES. THIS RAISES PRICES. SOMEBODY POINTED OUT THE OTHER DAY INSURANCE COSTS HAVE SKYROCKETED. CHARLES: RIGHT. >> THEIR INSURANCE COSTS STARTED WITH, GUESS WHAT? CHARLES: EVs. >> ELECTRIC VEHICLES. YOU'RE EXACTLY RIGHT -- CHARLES: HAVE YOU EVER SEEN ONE OF THOSE CATCH FIRE? >> I'M SAYING -- YES. ANECDOTALLY, THAT TELLS A LOT. CHARLES: A COUPLE YEARS AGO I DON'T KNOW IF YOU REMEMBER, BUT ONE OF THESE SHIPS THAT HAD 4,000 CARS ON IT, NEVER SANK BEFORE, IT WENT DOUBLING -- DOWN LIKE A ROCK BECAUSE IT WAS LOADED UP WITH IV ISs. -- EVs. THE TRADITIONAL TOUGH TO PUT OUT A FIRE DIDN'T WORK, AND THE WHOLE SHIP WENT DOWN. >> AND THE GOVERNMENT IS SAYING YOU CAN'T HAVE A CEILING FAN, YOU HAVE TO HAVE A CEILING FAN THAT'S CLIMATE, YOU CAN'T HAVE A TOILET BOWL THAT FLUSHES OR A SHOWERHEAD THAT ALLOWS YOU TO TAKE A DECENT SHOWER IN THE MORNING. YOU'RE A SHOWER GUY, I'M A SHOWER GUY, OKAY? ALL THOSE THINGS COST MONEY. AND THAT'S WHY I SAY THEY'RE REGULATORY INFLATION. CHARLES: RIGHT. >> IT'S LIKE, YOU KNOW, NEWT GINGRICH CALLS IT BIG GOVERNMENT SOCIALISM. STEVE FORBES POINTS OUT THE KIND OF SOCIALISM TODAY ISN'T LIKE JOE STALIN. YOU DON'T HAVE TO ACTUALLY BUY THE STEEL MILKER CHARLES, BUT YOU CAN DO IT -- MILKER CHARLES, BUT YOU CAN DO IT THROUGH THE REGULATORY BUREAUCRACY THAT TELLS YOU DON'T BUY THIS, BUY THAT. 9 AND THE BUY THAT IS MORE EXPENSIVE THAT YOU'D LIKE TO BUY LEFT TO YOUR OWN DEVICES. THAT A CAUSES INFLATION. CHARLES: AND THE THING THAT YOU HAVE TO REPLACE THAT YOU LOVE, THAT WORKED AND IS BETTER THAN THE THING YOU'RE BEING FORCED TO BUY WITH. >> YES. CHARLES: THEY HAVE MAST PERKED THE ART OF USING REGULATIONS TO -- >> TRUMP'S GOING TO ROLL THE WHOLE THING BACK. I PROMISE YOU. TRUMP'S GOING TO -- CHARLES: FINGERS CROSSED. WHITE HOUSES IN TALKS TO INVOKE CLIMATE EMERGENCY. THE SUBPLOT IS THIS IS A WAY TO GET YOUNG VOTERS JUST LIKE THE COLLEGE LOAN THING. IT'S INTERESTING, BECAUSE THE BULK OF COLLEGE LOANS ARE OWNED BY 35 TO 49-YEAR-OLDS. AND ON THIS, YOU AND I WERE TALKING -- >> GOOD POINT. CHARLES: -- THERE'S NOT A LOT OF YOUNG PEOPLE OUT THERE CLAMORING FOR A CLIMATE EMERGENCY. >> REALLY GOOD, BYRON YORK WROTE THIS UP TODAY, NEW HARVARD POLL, OKAY, HARVARD-HARRIS POLL -- CHARLES: RIGHT. >> YOUNG PEOPLE, 18-29, I BELIEVE, WHICH IS MORE IMPORTANT, INFLATION OR CLIMATE? 60-40, INFLATION. WHICH IS MORE IMPORTANT, JOBS OR CLIMATE? 60-40, JOBS. THIS IS ANOTHER MAJOR POLITICAL MISTAKE BY THE BIDENS X AND HEIR GOING TO TAKE OUT ALL THE LAND UP IN ANWR IN THE ALASKANS, AND THEY'RE GOING TO ALSO, BY THE WAY, THIS STUFF IS GOING TO STOP, ANY RARE EARTH DEVELOPMENT AND CONSTRUCTION. CHARLES: RIGHT. >> THIS IS A MAJOR MISTAKE, AND IT WILL HELP TO KEEP ENERGY PRICES MUCH HIGHER THAN WOULD BE THE CASE. LOOK, CHARLES, YOU'RE RUNNING $80-90 ENERGY PRICES, RIGHT? BRENT CRUDE, EUROPEAN CRUDE BELOW 90, WEST TEXAS IS, I THINK, IN THE MID 80s. GASOLINE IS UP TO ABOUT $3.65. THOSE NUMBERS ARE 30 HIGHER THAN THEY NEED TO BE IF WE -- 30% HIGHER THAN THEY NEED TO BE IF WE HAD A TRULY OPEN, MARKET-ORIENTED CLIMATE POLICY BY WHICH I MEAN ALL OF THE ABOVE; FOSSILS, COAL, NUCLEAR. OF I'M NOT AGAINST WIND AND SOLAR, BUT I AM AGAINST IT JAMMING DOWN MY THROAT EVERY TIME. CHARLES: RIGHT. >> AND THIS IS A MAJOR POLITICAL CALL MISTAKE THE BIDENS ARE MAKING. THEY'RE GOING TO KEEP ENERGY KOHS HIGHER. IF ENERGY IF COSTS ARE HIGHER, CHARLES, IT PERMEATES ALL PRICES THROUGHOUT THE ECONOMY. POLL YUM DERIVATIVES. I MEAN, YOU KNOW WHAT? YOU AND I BOTH WEAR EYE GLASSES? THIS IS A PETROLEUM DERIVATIVE, AND IT'S MORE EXPENSIVE THAN IT NEEDS TO BE BECAUSE THEY'RE CHOKING OFF FOSSIL FUELS. CHARLES: YOU KNOW, LARRY, I JUST WISH EVERYONE WOULD LOOK AT WHAT'S HAPPENED TO GERMANY, THE SELF-INFLICTED WOUNDS THAT THEY'VE DONE TO THEMSELVES. >> THERE YOU GO. CHARLES: WHY ARE WE ON THE SAME PATH? BECAUSE THE PATH GOES STRAIGHT DOWN FROM INDUSTRIAL MIGHT AND GLORY TO POVERTY IT'S AMAZING. ALL RIGHT, LARRY, I APPRECIATE YOU. >> GREAT TO SEE YOU. CHARLES: ALWAYS GREAT TO HAVE YOU. >> THANK YOU, CHARLES. CHARLES: CATCH LARRY ON "KUDLOW,"
