The horrific, bar baric, hamasiran invasion of israel. Israel is regrouping with their air defenses, soon to be haunched ground attack launched. Weaver trying to get with hold of mike tobin with on the ground. Hes on the gaza border. As soon as we can, we will plug him right in. Meanwhile on the show, senator eric schmidt will be here to tell us why the administration is still in deep denial about the role of iran, and. Just in just a second the great harvard law professor Alan Dershowitz is going to the tell us why hard harvard loves hamas, or maybe they dont. But first, a worth of word of congratulations, winning a tight race over another great friend and distinguished conservative, jim jordan. Mr. Jordan has now declared support for scalise and is whipping other members into the scalise camp. Hopefully the republican conference will be completely united and move the nomination to the house floor and get the 217 votes necessary. A couple more words about Steve Scalise, whom i have known for many, many years. He is a brave soul who was shot on a baseball field a few years ago, managed to recover and won the admiration of everybody on both sides of the aisle. If right now he is ahead of schedule in his winning battle to defeat cancer. Hes a strong conservative, he was an excellent whip, end excellent majority leader, former head of the conservative republican study committee, and he was a principal organizer of h. R. 1, the first Republican Housepassed bill last winter, hugely important as it will unlock the fossil fuel spigots that joe bidens radicalling Green New Deal attempts to shut down. H. R. 1 was also an important permitting reform bill. It would unleash oil and gas production, bring down gasoline prices and help restore Americas Energy dominance that biden has so badly undermined. Then majority if leader and a heat and thenspeaker Kevin Mccarthy unveiled h. R. 1 on this show in part because it was probably my biggest pet cause. And i think it still is. Comes from louisiana, you can bet Steve Scalise will keep the heat on and press forward to fight bidens Climate Change and restore a balanced approach to energy using our god given resources and Technology Advances to power future Economic Growth forward. Anybody that knows Steve Scalise, by the way, really likes him. Donald trump backed jim jordan, but trump is also a great admirer or and friend of Steve Scalise, and mr. Jim jordan, an old personal friend, he will continue to do a terrific job as judiciary chair in the biden investigations and in pursuit of an end to the who totiered Justice System twotiered jus jus disthe department. Theyre song proponents of free speech, and they are supplyside tax cutters. They will work hard to limit the size and scope of the federal government, curb spending and deficits, roll back the antigrowth biden regulations. These guys are probusiness. They are not Big Government socialists. And the fact that mr. Jordan is magnanimously working for a successful scalise speakers vote attests to jims patriotism and his strong character. As soon as he get a republican speaker onboard, look for a bipartisan resolution in support of israel. Its going to have to be some kind of supplemental spending bill to help our great ally, israel. And then the hard blocking and tackling. Finish up the regular budget order appropriations process. Liberal media keeps writing off the are Republican House. They do it dozens of times. But i think those liberals are going to be wrong once again. By the way, the Republican House will also be israels truly best friend through thick and thin. Okay . Some just a little appetizer by myself for mr. Scalise and mr. Jordan. All right. Now, next question before the house, does harvard hate hamas . Or maybe not. Joining us is the great Alan Dershowitz, Professor Emeritus at Harvard Law School. And the author of get trump the threat to civil liberties, due process and our constitutional rule of law. And and also a great article, i saw it in the new york sun, a new reckoning is long due for overdue for american universities over the antisemitism which of which their campuses are riddled. As your biggest fan, sir, thanks for coming on the show. What is it . I mean, i spent a prison term at princeton. I know you were a long time with harvard is. Larry summers is tour cows. Furious. Maybe well get to the quote. What is it about these schools, professor dershowitz . They have no context, they have no historical understanding. Youre absolutely right. [audio difficulty] for woke progressive culture, but were on the offense now just like israel. We turned against these. We got a law firm in new york to rescind is an a offer from the head of the nyu Bar Association who supported the rapists and the beheaders and the kidnappers at harvard. Weve gotten lots and and lots of the groups to withdraw their support for hamas. And you know why . Because a Big Hedge Fund operator who graduated from harvard said he wanted the name of every single student who supported these beheadings and supported these abominations to be made public so that no wall street firm makes the mistake of hiring think of them. Or think law firm. Or any law firm. Can you imagine a law firm saying to a jewish client, oh, by the way, the woman who is going to be the representing you, she believes its okay to lynch and rape jews. Would you like her to represent you . Of course not. The First Amendment allows these bigots to express their bigoted views, but they also allow us to respond to them. And one way of responding to them is by exposure the marketplace of ideas requires transparency. So we want the name of every single student and fact faculty member who supported these barbarities, and we want to make them public, and we want to make sure every potential employer knows who theyre hiring. Larry boy, thats great. That is a great story. I know theres been some backing and forthing, claudine gay is the president of harvard. Out of the gate very, very slowly. I think we have a quote. Let me see, do we have a quote for her . The delayed harvard leadership statement fails to meet the needs of the moment. Why cant we find anything oh, this is Larry Summers, i think. All right, this was summers. The delayed harvard come on, lets get it up on there we go. All right. The producers arent helping me here. Here, as the events of recent days continue to reverb rate, let there be no doubt that i confirm the terrorist atrocities perpetrated by hamas. Okay, that was her statement, the president of harvard. It took a while to get it out, Alan Dershowitz. Are you okay with that . Should she have acted sooner . As a longtime harvard professor, maybe among the most distinguished people ever to serve harvard, what do you think . Between larry and i, we served harvard for over 100 years, and i think its its not immodest to the say we were part of harvards end ration for excellence. And now reputation. And now the the president of harvard, too little, too late. She has still refused to condemn the student groups. She doesnt want the woke people to protest. Shes just been made president. She wants to take the safe way out. Thats the true of most University Administrators today. They refuse to condemn students. Just imagine if there were a club at harvard called the ku klux klan club, and it advocated the lynching of africanamericans. Would president gay remain silent are about that . Would she rephase to condemn . The same refuse to condemn . The same standards have to be applied to these groups. And you know one of the groups that supported this, this beheading was Amnesty International at harvard. Theyve now withdrawn their support as the result of pressure. But there were so many groups, feminist groups, gay groups, other groups who were part of thats what called intersectionality which is one of the most bigoted antisemitic academic groups around. But it basically sends messages to people saying if you want to be a good progressive, woke person, you have to the hate israel, and you have to love hamas. Were not going to stand for that anymore. Exposure with, as Justice Brandeis once said, is the best, best remedy. Sunlight is the best disinfectant. So lets get sun sunlight on all the people who have lent their names and the good maim of harvard to these barbarities. Larry let me put up, if i can can get the producers i want to read Larry Summers ive known Larry Summers over 40 years. Lets get this up. Come on, summers, summers, summers. Here, this is Larry Summers. The delayed harvard leadership statement fails to meet the needs of the moment. Why cant we find anything approaching the moral clarity of harvards statements after George Floyds death or russias invasion of ukraine when terrorists kill, rape or take hostage hundreds of israelis attending a music festival. Why cant we give reassurance that the University Stands squarely against hamas terror, frightens students when 35 groups of their fellow students appear to be blaming all the violence on israel. I wanted the read it, i know you agree with it. I agree with it. Just because my regard for Larry Summers. Larry summers is democrat, im republican, but hes making enormous sense as he often does. Hes a brilliant guy. Hes like you, mr. Dershowitz. Its a matter of character. Youve got to be square on both sides of the aisle. So, you know, i look down the list, Harvard Law School, columbia, berkeley, myu, yale nyu, yale. I didnt see princeon on the list, but im afraid to keep looking. You know, if the president s president s of these universities dont step up, who will . Thats my question. I mean, if they dont, who will . Well, faculty members are stepping up. Stephen pinker, a few other of my colleagues are stepping up. But, you know, its not only universities. Black lives matter in chicago basically issue ised a statement that says that jewish lives dont matter. Not only dont we care about jewish lives, were going to glorify the hamas parasailors when who went into a music festival, they were primarily people from the left are, people who support the twostate solution, people who want peace. But for these barbaric people, it doesnt matter what kind of a jew you are. If youre a je witnesser, if youre jew, if youre in israel, you deserve to have your children murdered. Benjamin netanyahu just a few minutes ago described what happened in a room with a whole bunch of jewish children. Apparently tires were lit on fire, and they were sent into the room to incinerate these children. If that doesnt remind you of the the holocaust, nothing, nothing does. And what were seeing is neonazi fascists and and theyre supported by students. Would you want to sit next to a student in Harvard Law School who you knew would be prepared to behead your children if he had the opportunity to do so . You know, this has has to be exposed 678 and the schools exposed. And the schools have to know what theyre doing. And today many of these universities are failing in their mission. Now, the students are fighting back. You know what theyre doing . Theyre not taking humanities because they know what it is, its being used for propaganda. What theyre doing is s. T. E. M. , science, technology, engineering and math. Theyre majoring in mixes, theyre going economics, theyre going to the hard sciences. They dont want to be propagandized by these radical idealogues on the hard left. We need a reckoning just like we had a reckoning after george floyd. George floyd was one man loaded with narcotics and alcohol who contributed, obviously, to his own death even hoe he cheerily was though he clearly was murdered, and the people who murdered him had to be held accountable. One man caused a major reckoning of how universities deal with race. I think that 1200 innocent jewish people in israel and the way universities have dealt with that ought to cause a reckoning. And i wont rest this that reckoning occurs at yale where i went the law school, at harvard where i taught for 50 years, at the City University of new york which wont allow me to speak. Do you know harvard wont how me to speak about israel . They will allow think antiisrael, hamas supporter to speak, but they will not allow me or other proisrael supporters to have a platform on the campus. Larry a taxpayerfunded university. Professor dershowitz, one more thing. In congress this i want to play some tape, this a Rashida Tlaib woman who is completely on the wrong side and is in denial of all the realities you just spoke about. Our own Hillary Vaughn, chased her down. Listen to this, professor. Hang on a second. Reporter these terrorists have cut off babies heads and burned children alive. Do you support israels right to defend themselves against [inaudible] you cant comment if about Hamas Terrorists chopping off babies heads . [background sounds] congresswoman, do you have a comment on Hamas Terrorists chopping off babies heads . You have nothing to say about Hamas Terrorists chopping off babies heads . Do you condone what ma hamas if has done, chopping off babies heads, burning children alive, raping women in the streets . [background sounds] you have no no comment about childrens heads being chopped off . Congressman, why do you have a palestinian flag outside your office if you do not condone what hamas has done to israel . Do israeli lives not matter to you . Larry i mean, weve got she wont even comment on chopping off babies heads, childrens heads, and she has a palestinian flag hanging outside her office. A u. S. Congresswoman. I mean, i think it i dont deny her right to have her opinions. I dont think you do either, professor. But i think theres a certain point of just basic inhumanitarianism that we have to get past in this country. There has to be a conversation. Right now theres no conversation. This woman is an extremist. Shes a bad apple, in my opinion. Thats just my editorial opinion. But, you know, it just goeses to show no dialogue, no discussion, no acknowledging of the reality that you have just been describing. Alan, ill give you the last word on this. We have to have a single standard. Would she have refused to comment if there were a member of congress who supported lynching of africanamericans, as some did back in the 1910s and 1920s. This is the same. These are are lynching. More israelis were lynched in one day than africanamericans were lynched in any 10year period in history, and we have to think of these as lynchings, and we have to ask people who justifiably always oppose lynchings and would oppose them today how they can remain silent in the face of this. Shame on you, congresswoman. Alex professor dershowitz, we appreciate your time and your view toint view point, sir. Thank you very much. All right, folks, got a lot cooking tonight. As i said in my opening riff, it looks like Steve Scalise is the gops next pick for house speaker. Were going to talk about it with congressman kevin hearn next up on kudlow. Thanks again to professor dershowitz for some moral clarity and clear explanation. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. He hits his mark center stage and is crushed by a baby grand piano. Youre replacing me . Customize and save with liberty bibberty. He doesnt even have a mustache. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Larry coming back home, Steve Scalise is going to be the republicans next pick for house speaker. Our own Hillary Vaughn live on capitol hill with details. Hillary, i just want to say how much i loved watching you chase down Rashida Tlaib. And we showed it to professor dershowitz who had very good thing i mean, nice going, Hillary Vaughn. Reporter thank you, larry, i really appreciate that. We try to talk to everyone here on capitol hill, and sometimes we dont always get answers, but sometimes the nonanswer ends up being the story. But what is the story right now on the house side is that in a closed door caucus meeting congressman Steve Scalise, the pick from the majority of conservatives to be their guy, to be the next speaker of the house. In a 11399 vote is, 113 for scalise, 99 vet ises for congressman jim votes for congressman jim jordan. And a is lease got the most votes behind closed doors, but thats not enough to secure the speakership on the house floor. Everything is on hold right now, republicans not going to vote just yet. Scalise, in the meantime, scrambling to get enough support. Congressman jim jordan though just now giving scalise a boost. He told fox he will vote for scalise. He offered to give a nominating speech for him and is encouraging the 99 mens that voted for him members that voted for him to switch to scalise. The house floor is in recess right now, we dont know what the time frame is. We do the know republicans dont want a repeat of the 15round saga that it took to elect Kevin Mccarthy as speaker in janment. The idea being today the gop would hash out their beef in private instead of in public, but a rule that was pushed by congressman chip roy that would have effectively someone to get to 217 before a or floor vote did not pass, so there could be chaos on the floor again, and some members are loving it. Congressman tom massey making the comment that the vote to elect mccarthy as speaker in january was a coronation. Hes calling whats happening right now competition. But, larry, of course, a lot of people are not loving airing all of this in public and, obviously, the potential that that this would be aired out on the house floor round after round as well. Larry . If. Larry run, hillary, run. Thats all i can say. Throw your hat into the ring. Hillary vaughn, everybody. For more, lets bring in oklahoma congressman kevin hearn, chair of the republican study committee. Mr. Hearn, thank you very much for your time. Give me your read, kevin. Give me your read. I mean, jim jordan, class act, coming out for Steve Scalise. Apparently hes whipping for him. Give me your best, your best read, ken. Kevin. Well, certainly both men are great friends of mine, both are great leaders. They spent the last week working, meeting with members of the conference, talking about what their vision Going Forward was. We had our meeting in closed door session today, no cell phones, and Steve Scalise are came out the largest majority vote getter which by conference rules we go to the floor now. And steve is no stranger to whipping votes and to talking to fellow members about what needs to be done to get to 217. Were actively working to help him get there as many other members are as well. We think its necessary we get our speakership back into the place it needs to be, get the Republican Party back in business and get our country back where it needs to be in leading the rest of the world. Larry i see that some of of the insurrectionists thats my word, not yours but some of the insurrectionists who will remain nameless but we all know who they are who stomped out mccarthy, i see theyre backing scalise. I took some hope in that. The trick is to get this done in the next 24 hours, is it not, kevin . It is. And, certainly, thats what congressman ca scalise, speakerelect scalise is doing right now. His team is reaching out to, obviously, no one likes to be, you know, didnt get their winner to cross the finish line, or but its about reaching out now, bringing the conference together. What we know, there are a small number of people that have expressed their concern about getting to the 217, and i know that the speakerelect, scalise, is working on that right now as well as other people. And you heard congressman jordan being the professional that he is, the great congressman he is, the great leader he is, coming out, offering his ability to come out and bring the people together. There were 99 people in conference that supported him. And bringing those to the forefront to get speaker scalise many that chair so we can in that chair so we can move forward. Larry jim jordan is a great pate rat and a great man. So is Steve Scalise, for that matter. Look what hes gone through. They shot him, heres winning his hes winning his battle against cancer. His h. R. 1 bill was a masterpiece. Im hoping you all can get this done. Kevin, i dont want to put you on the spot, but is there one particular issue that is hanging up a group of people that has to be resolved . Well, i think the big issue is our spending fight. Were seeing, you know, our federal deficits running over 2 trillion for the first time in American History were borrowing more money that its taking to actually run are our country. All of our discretionary spending, the money it takes to run the government on a daytoday basis, were borrowing 100 plus percent of that now which is insane. The folks that i think are holding out for this, they want to see a plan Going Forward. I can tell you that, you know, ive worked a lot on the budget since ive to been here9 with the republican study committee. Ive worked on balancing the budgets, worked on a lot of policy around this spending idea, and, or you know, we get speakerelect to become the speaker scalise, im going to be running for the majority leader position to, you know, shore up the policy side on that to get us where we need to go on balancing budgets, getting our appropriation bills done on time so that were not doing this continuing resolution time and time again and seeing these huge omnibuses that keep driving our spending. Harry, what weve done in the larry, what weve done in the last 10 years, weve had 9 omni buses and 38 c. R. S. Its not good for the American People or the Economic Security of our country Going Forward, and those are the gravest concerns of the people that are continuing the to hold out. They want to get answers on that. Larry well, i agree with you. And, kevin hen, we appreciate your kevin hearn, we appreciate your time. When you are famous and powerful majority leader, whatever, we hope youll come back on the show. But we we appreciate you today, great information, thank you. Thanks, larry. Larry coming up here on kudlow, joe bidens iran appeasement has put at least an extra that 60 billion in irans pockets. Now, folks, exactly what do you think irans doing with that money . Take a guess. Anyway, were going to talk about it with distinguished senator eric schmitt from missouri. Plus there may be more inflation than folks think. Got real bad wholesale Price Inflation report today. Former Federal Reserve governor kevin warsh going to weigh in. Please stick around with kudlow. Well be right back, straigh so, you have diabetes, and your glucose is heading low. [ alert sound ] dexcom g7, the most accurate cgm, can alert you before you go too low. Now, thats more peace of mind with dexcom g7. Ah, these bills are crazy. She has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Its easy to get lost in investment research. Introducing j. P. Morgan personal advisors. Hey david. Connect with an advisor to create your personalized plan. Lets find the right investments for your goals okay, great. J. P. Morgan wealth management. Larry so joe biden and company in complete denial about the role of iran in this horrific hamas if invasion, and they continue to appease iran. And now they continue to deny it. And at least, i dont know, 60 billion, maybe 70 billion in irans pocket. So joining us now to talk about this is our friend senator eric schmitt from missouri. Thank you, sir, as always, for coming on. Let me just play you, before we dig into this, heres janet yellen in part of this denial story. Take a listen to what she has to say, please. We have not in any way relaxed our sanctions on iranian oil, and we are we have sanctions on hamas, on hezbollah. This is something we have been constantly looking at and using information that comes available to tighten sanctions. Larry you know, senator. Schmidt, they havent relaxed my sanctions. Any sanctions. In the last couple of days, iran has gone from about 4 or 500 Million Barrels a day to 3 Million Barrels a day 4500,000, i beg your pardon, to 3 Million Barrels a day, on the way to 4 Million Barrels a day. Its worth about 60 billion. Their exports to china have gone from 7 billion to 30 billion, no relaxation there, and their Foreign Exchange reserves have gone from 4 billion to 70 billion worth . For a country that hasnt experiencedded whered they get all this money, senator schmitt9 . Howd that that happen . Well, i think it also, larry, highlights the importance of our National Security objective here in the United States to be energy dominant. We were under president trump. Under no circumstances should the United States of america be relying on any foreign power for oil. We just shouldnt do it. We certainly shouldnt be shrinking our Strategic Petroleum reserves which joe biden has done at historic levels. So on the energy side of this, you know, thats another big play. Look at the tale of the tape, larry. This is not just, you know, the numbers that you cited or even the 6 billion that was paid as a ransom just, you know, last month on september 11th, mind you, talk about being tone deaf. T its not just that 6 billion. Youve also got this administration that, you know, reversed the trump policy, sent over 300 million to the Palestinian Authority when they came into office on top of the 400 million that barack obama sent in palettes of cash palates of cash to iran. Theres yo palettes of cash to to wanted to deal with iran in a way that is not in our interests or certainly not israels either. Larry whats so troubling, senator, is i think they are still talking about a deal with iran. And i say that despite the horrific invasion of israel and the childrens beheadings and the grandmother murders and all this stuff. They never mentioned, i read bidens speech yesterday, you know, i heard it, then i went back and read the copy. Never mentioned the word iran. And they are in denial about helping iran as you heard janet yellen, the rest of the administration saying the same thing. Money is not fungible. 6 billion, oh, heck, its just going to go to doctors bills, maybe obamacare subscriptions. I dont understand, they swapped out 10 billion from iraq, and the oil sales have gone up from 400 million 400,000 to 34 Million Barrels. Huh . Really . So im worried, i dont know what you hear on the diplomatic circuit that that they are still playing footsie with iran and doing everything they can to deny that that iran are was part of this hamas invasion. That is exactly right, larry. And you watch the language that president obama or President Biden is withdrawing is using. No mention of iran. And you watch now how this plays out with the intelligence community, state department officials. Theyre not going to talk about iran. They are so invested in these bad deals that theyve done with the number one state sponsor or of terrorism. They refuse to be sober and cleareyed about this. And we talk a lot, larry, about, you know, iran being the number one state sponsor or of terrorism. Heres that actually looks like, right . They send money, they send arms to hamas. Hamas glides into a concert with innocent people, machine gunned down teenagers running away, burned people alive, behead babies. This is terrible, terrible stuff. And i dont know how any deamerican administration, any american president , think party it in this country could any party in this country could be a part of this. And understand this is what happens, money is fungible. The 6 billion theyre youre releasing, they get to use somewhere else. And when we get back, when Chuck Schumer who went to china and were not working this week to get our budget bills done which is what we should be doing because weve got about 10 working days before the next deadline, but instead of doing that, hes in china. What should happen is a bill should come on the senate floor to freeze the 6 billion is and make the democrats object to that. I cant believe that they would do it. Ill hope that we could come together i would hope that we could come together, republicans and democrats, and say we do not want 6 billion going to the number one state sponsor or terrorism. Well find out probably many in about a week, larry. Larry im with you on that one, for sure. Senator, let me just ask you though, you know, these economic and Oil Sanctions and business sanctions and banking sanctions, theyre there on paper, but they are not being enforced. Now, is there a way to get senate and or house, youre going to have Steve Scalise hopefully as speaker of the house many a few days or a day. Can you get, i mean, somebody has got to put these sanctions back into place. Trump had a them in place. I mean, iran was doing 3, 400,000 barrels a day under trump. Now theyre moving up towards 4 Million Barrels a day. Thats because of the sanctions. Mitch mcconnell wrote a very good oped piece, ill give credit where credit is due, in yesterdays wall street journal saying heres the sanctions that are in place. Why arent we enforcing them, senator schmitt . Well, this is what happens, larry, when you have a chief executive officer or the executive branch of the commander in chief that isnt interested in executing the law. This is exactly whats happening at the southern border. The president of the United States, i mean, the federal government does a lot of stuff it shouldnt do. Securing our own border happens to be one of those things. We have allows in place. We should do more, by the way, but we have laws that could be executed by the president of the United States, hes not doing it. And and youre talking about sanctions, same deal. This is a lawless administration, larry. Not only are they not doing the stuff theyre supposed to do, that congress has actually directed them to do or thats a previous policy of the administration or previous administrations, theyre doing things theyre not allowed to do like trying to wipe away a trillion dollars worth of student loan department. I mean, this is a renegade administration that cares very little about what the law is or what the rules are. And i think that its up to us in these moments right now to speak out about this and talk about how terrible this is and, hopefully, they have a course correct on this issue of iran. Theres its not, you know, the the first issue for us would be what is in the strategy Strategic Interests of the United States. Certainly, we have friends and allies that this impacted. Youve got, you know, again, playing footsie with another Iran Nuclear Deal and go soft on iran. We just cant allow that to happen. And so i think in the senate weve got to push hard. The the house, this has to be part of their agenda to continue to press back against an administration, again, that is not interested in enforcing the law whether on things related to Foreign Policy or our own border. Larry id like to see, i mean, this should be done. Iran should become a pariah. Again, they let the bidens let iran out of that cage. Got to be put back into that cage. And the sooner we do that, the sooner israel will be helped and get rid of hamas. I mean, who do they think is financing hamas, calling the shots on hamas and probably hezbollah . Anyway, senator eric schmitt, thank you, sir. We appreciate your time and your logic, as always. All right, folks, were going to come here back on set, mundane domestic items like a whopping big wholesale Price Inflation report today. Weve got the great kevin warsh, former Federal Reserve governor and shepard family distinguished visiting fellow at the hoover institution. I didnt know about the shepard family thing. Is that a new title . Its been around. Theyre pleased to get the attention with you, larry. Larry im happy to do that. Kevin warsh, 0. 5 in sent, 0. 7 in august, 0. 6 in july. Wholesale prices up 7. 7 at an annual rate over the past 3 months. And, yes, its food and emergency which may be excluded from the geniuses, but the fact is those are essentials. So what are you going to do here . This is a problem for the fed. So the same way just discussing early. On earlier on the show that americas confronting a war in two parts of the world, this europe and the middle east, the feds confronting a war on both of their parts too. Growth is deteriorating not just around the world, so i think increasingly they have a growth problem. And they still have a big inflation problem. Theyve got two wars to fight. Its mostly because they dropped the ball a year and a half ago and let inflation get out of control. They still havent brought it back to target. Larry you know, a couple things here. One is you wrote a good piece in the wall street journal. Well put it up on the full screen, a week or two back. The fed the treasurys selling too many bonds. Now, the good news is the fed s not buying them like they used to. The bad with news is market Interest Rates have gone up. Theysed back down a little bit recently, but the 10year is 4. 60, 4. 70. So thats one point. The other one i want to say is the gdp now report from the atlanta fed says the third quarters going to be 56 growth. So fed people look at that that and freak out, right . Deep down in the heart of every fed economist is a hatred for growth. [laughter] larry scratch em deep enough. So somehow they think the big spending thats come out of washington is somehow deflationary. When more workers are earning more money, thats inflationary and theyve got to stop it. Thats the central contradiction in central banking that needs to be fixed. First, the fed thinks that growth is too hot. Chairman powell spoke a couple weeks ago at his press conference, there were too many people working, he needed to get the Unemployment Rate up. I think thats a misplaced sentence. Its true the economy is strong, but much of that growth in investment is because of government subsidies. Its not the kind of growth we can rely upon. And when we see the Interest Rate on 10year yields are moving up, what that says, larry, is the markets are starting to set Interest Rates, the fed is not. And as Interest Rates go up for our government, whats happening . Its crowding out the kind of private investment that we need. Is so if youre a recipient of the governments largess to build new solar panels, i suppose thats good for you. But if youre the real private economy, your cost of funding is going up, and if your a real household, your cost of a mortgage is going up, and i think thats going to hit the economy larry 30year Mortgage Rates through 8 today. Should the fed raise their fed funds target rate, kevin warsh . I dont think they should. Theyre stuck in a horrible situation, much of their own doing. I think what theyre going to do is pause in november, i think theyre going to pause in december and somehow pray that inflation gradually falls to 2 , but i think theyre stuck in a very bad position, and i dont think theyve got an easy way out of it most importantly because theyre not setting Interest Rates anymore, markets are. Larry john taylors going to be right. Hes your colleague at hoover hes my colleague, my friend, my onetime mentor. Larry he taught all of us. This putzing around the fed is doing thats probably not the right word to use. Dont pause, just go. Theyve got an inflation problem, go. So i think the war will give them the excuse that theyre looking for not to go. And if they go to 6 , my own judgment is theyre going to do a lot of harm to the economy. They are in a terrible position, and its not because of war, and its not because of covid, its because of the mistakes they have made. Larry its tough to come back from those mistakes. Kevin warsh, everybody. Best of the best. Thank you, larry. Great to be here. Larry hoover institution, the shepard a who . One more time. I want to be fair. The shepard family distinguished visiting fellow. Thank you, larry, for that kind introduction. Larry all right, folks. Coming up, were going to contrast joe bidens iranian appeasement with Donald Trumps toughness, all right . We have Abraham Accords negotiator alan bow lahr. Feds should just move. Get it over with and go to 6 president. Kevin warsh is going to be the right, inflation is not conquered. Well be right back. I got into debt in college and, no matter how much i paid, it followed me everywhere. So i consolidated it into a lowrate personal loan from sofi. Get a personal loan with low fixed rates. Borrow up to 100k. And no fees required. Sofi. Get your money right. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. 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Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Home of the xfinity 10g network. Larry all right. Donald trump knew the difference between strength and weakness with iran whos behind all of this stuff is. I dont think mr. Joining me now, allen bo lahr. Im short on time, and i apologize, but the difference between strength and weakness. Give us a little hint. When you guys were negotiating with the Abraham Accords or in general, what was the difference . Did we understand that . I think the key thing here, larry, is everybody think aboute agreement and how it comes. The truth is that people dont know the main factor in driving the Abraham Accords was one thing which is containment of iran. And how did we do it . First, we killed their number two guy. Right . We took him out in iraq. They couldnt do anything. They shot a missile, it exploded, nothing happened. That was the single biggest thing that enabled a peace agreement. It was peace through strength. Larry and going beyond that, we, i mean, we enforced, the Trump Administration if enforced the sanctions. Instead of 4 Million Barrels a day, oil was down to 3400,000. Correct me if im wrong, adam. Youre 100 correct. The data speaks for itself, and no amount of explaining can change that. When you release tens of billions of dollars, when you relax things, again, whether its a specific official response or what happens, the oil data is very clear. You are empowering a roadway join. And that regime. And thats what drives Something Like this, what we see hamas did, which is really a proxy war between iran, the United States, israel and friendly arab countries. This is all iranbacked. Larry why does a janet yellen, whos a smart person, shes in denial about these sanctions. Of course the sanctions have been lifted. Or theyve been relaxed. Irans come piledded almost 70 billion of Foreign Exchange reserves out of the blue. Well, were investors, larry. We know what we do, and we look at data here, and the datas very clear. This is no people are talking about the 6 billion, thats the tip of the iceberg, right . Were talking about tens and tens of billions of dollars over multiple years. And so at the end of the day, thats the data speak the day you get your clearchoice dental implants makes every day. A lets dig in day. Mm. A chow down day. A take a big bite day. A perfectly delicious day. Mm. [ chuckles ]. A love my new teeth day. Because your clearchoice day is the day everything is back on the menu. A clearchoice day changes every day. Schedule a free consultation. Fresh, warm hot dogs when im not selling hot dogs, i invest in a fund that advances innovations like robotics. Fresh, warm hot dogs, straight out of my torso one for you, one for you. Oh, youre a messy one. Cool, right . So cool. 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Larry thats it for cud row. Thanks for watching, folks. Maria good thursday morning everyone thank you for joining us thimo