Transcripts For FBC Kudlow 20240702

Kudlow, im larry kudlow. All right day 20 of the barbaric hamas hezbollah iranian war on israel. Lets go to directly to our reporter on the ground greg palkot who is our Senior Foreign Affairs correspondent. Greg, what can you tell us . Yesterday was almost like a full invasion. Whats going on today . Reporter well there is a lot of movement and a lot of different fronts here, larry, signs that the next stage in this war is definitely approaching. Overnight in the past night the most aggressive ground incursion weve seen yet by the Israeli Military in the last few weeks. Tanks and troop carriers crossing into northern gaza. Less than a mile, just for a few hours but they were hitting hamas militant firing positions, ambush sites, what they said is preparing the battlefield for what appears to be that major land invasion. This as the airstrikes by israel into gaza continue. Some targeted bombing runs hitting hamas militant leaders. Leaving a vast scene of destruction, landscape, masking well over 200 hostages still held by hamas but a growing humanitarian crisis threatening civilians there. Here in northern israel, larry, weve been watching escalating skirmishes between the Israeli Military, lebanonbased, iranbacked hezbollah militants. They are launching deeper strikes into lebanon. Military, civilians among the dead here. A telling picture recently released, a meeting in beirut, lebanon between a top hamas official, the leader of another militant group and the head of hezbollah, hassan nasrallah. Behind them, pictures of pass and present leaders, their benefactor, iran. Larry, u. S. Bases in both iraq and syria have been targeted by iranbacked militias. Pentagon confirming 21 american troops have been injured in the last week. Reinforcement on the way, a region in turmoil. Back to you. Larry you know, greg palkot, thank you for that as always. I just wish more attention was paid to the fact, not only did 30 some americans were killed in the original hamas attack, massacre but americans are getting injured as theyre firing on us. Theyre firing on u. S. Mill at military asset and americans are getting injured. God bless, so far no deaths have been reported. There are injuries. These are war actions. Reporter no, absolutely. The u. S. Is certainly a target. As you noted there were deaths on that terrible october 7th. There are hostages held. We believe Something Like 11, 12. There are 600 americans remaining in gaza, palestinian americans, who still havent gotten out. Through this region the talk is of the possibility according to the pentagon of some kind of massive evacuation from israel, lebanon, elsewhere, if things really heat up. So those are the many, many dimensions youre looking at right now, larry. Larry greg palkot, thank you ever so much. Please be safe. We appreciate your reporting very much. Reporter thank you. Larry in just a few moments senator jd smith, jd vance im sorry. Senator jd vance is coming on. We had an interview just a few moments ago. Let me say a couple things here in my riff. Why is it President Biden, secretary of state Antony Blinken and white house spokesman john kirby, day in and day out continue the fiction that iran has no direct involvement with the terrorists in hamas or for that matter Islamic Jihad or for that matter hezbollah but for the barbaric of invasion of israel on october 7th . Why do they maintain this fiction, why do they maintain this lie . Look it, front page of the wall street journal. Larry us exclusive news story, headline, hamas fighters trained in iran before the october 7th attacks. The subheader, roughly 500 Palestinian Militants got specialized combat instruction at iranian facilities as recently as september. A long carefully constructed news article, a third of the way in, is this quote, before the war iran directly assisted hamas with money, training, weapons, technological know how, said rear admiral daniel hagari. The military chief spokesman in israel. The admiral says even now iran is helping hamas with intelligence end quote. Right after the october 7th, catastrophe the wall street journal ran a story with the headline, iran helped plot attack on israel over several weeks. By the way the Washington Post corroborated that story the next day. Now to be fair this mornings wall street journal story quotes an air force, u. S. Air force general who maintains the fiction that there is no direct connection between the hamas attacks on iran but looking at this, other news reports, news reports, mind you, not just editorials, news reports i think the u. S. Government is making a big mistake denying irans direct involvement. This is starting to have a vietnam feel to it. Remember those days when democratic and republican administrations lied to the American Public about the extent of u. S. Involvement in the vietnamese war. Nowedly from a political standpoint americans by huge majority support the israeli cause and they have an enormous distrust of iran. So i dont understand the political judgment much less the highly flawed military judgment. Now as we know nor nearly three years President Biden tried to negotiate a nuclear deal with iran. He inherited this stupidity from president obama. Obamas deal would never have passed the senate. So they put it together through the United Nations instead and they attached u. N. Security Council Sanctions on that misbegotten deal. Lately however when the u. N. Ballistic missile sanctions expired last week they were not even snapped back. So now even those unenforced sanctions have essentially expired but the Biden Administration has also chosen not to enforce the economic sanctions that were put in place by the trump administration. Those economic and energy sanctions that were strictly implemented by mr. Trump and his administration basically bankrupted iran. So when trump took out irans top military man soleimani, the iranians didnt do anything because they were broke. Today as we all know, and as the facts show, iran is flushing with energy and Foreign Exchange reserves that they have used to finance hamas and other terrorist groups. Indeed before the october 7th blowup biden was trying to give iran even more cash. Essentially the key point i suppose is to acknowledge irans direct role in training and financing the terrorist attacks against israel and the United States. To do that would require an acknowledgement from biden that his iranian policy of appeasement has gone wrong, very wrong, from the very beginning. Apparently he doesnt want to make that acknowledgement. So he and his spokespeople have come up with this fiction which at best is a semantic and at worst is an outright lie. That iran had no direct involvement in israel, american massacres, you can parse words but you cant parse the truth. Iran is unappeasable. Without the deterrent iran will continue as the largest state sponsor of terrorism. The bidens have got to understand this hard fact. Iran will never change. It will never change its ways, nor will its terrorist puppets and if President Biden wants to show americans and the rest of the world that he has figured this out, then he must at a bare minimum reinstate the economic and energy sanctions of the trump years, and the quickest way i can think to do that would simply be to interdict or impound an iranian ship on the high seas that might be carrying oil or weapons or anything else forbidden under those sanctions. Those sanctions were imposed legislatively by the u. S. Congress and enforced by the trump administration. To be real simple, i call it stop a ship. If you do, you will send a message. Go back to the trump model. A change of bidens policies towards iran that is honest and transparent reappraisal of the failure, well that is the best thing biden can do to protect israel and the United States and then just, please, quit lying to us, all right . Now, as i said earlier, just a few moments ago i spoke with senator jd vance of ohio about all of this and more. Please take a listen. Senator jd vance, welcome back to the show, sir. Thanks, larry. Thanks for having me. Larry well its our pleasure. Just let me begin with some of your news. You and a handful of other senators want a different kind of supplemental to fund foreign assistance. You want a standalone for israel. I believe your number is 14 billion. Can you tell us about this plan and is this going to entail a fight with senator mcconnell who wants the big package preposed by joe biden . Well, it doesnt really have to entail a fight because the majority of the republican conference, larry would like to separate the packages. Let me set the table here. We have 14 billion on the desk for israel. I support it, 99 of my colleagues in the United States Senate Support it. It is virtually you unanimous. Why not have separate debates to separate the packages . What is biden trying to do knowing israel aid is popular, trying to use it as a figure leaf to shove an open boards proposal down our throats. If you look at border funding of the supplemental. Has nothing to do with border security. Youre basically facilitating inmigration of Illegal Migrants and transporting them all across the country. Were funding it. That is what the supplemental does. Why would we allow joe biden pretend he is helping israel when all he is doing furthering open the southern border . It is bad politics, it is bad policy and most republicans wont stand for it. Larry just on that, senator, i want to come back to israel in just a second, just on that border point that is so important, first it is one of the most important issues right now in the country. In fact a lot of polls as you may no, after you get past economy and inflation where bidenomics is in the mid 20 approval, Something Like that, you really come to the border and as i understand reading some of the stuff published by the white house it is basically about a billion dollars but it would enhance catchandrelease and it would reduce the Border Patrol people to like babysitters and paper pushers. It wouldnt do a single thing to close the border, including, sir, to close the border, to people from countries that could be potential terrorists . Well thats exactly right, larry, and i think that polling shows the wisdom of American People because the border is a huge crisis. Talking about 100,000 people dying of fentanyl. Were at the biggest risk of a terrorist attack, larry, we had in this country for 20 years. Why . Because many of the people from the terrorist watch list have come across the border already and many more would like to come. They know the american southern border is the rapid way to come into it, the express ticket into america if youre a terrorist and every one knows it. Why would the Republican Senate consent to combining aid to israel with billions of dollars that will just transport Illegal Migrants from the southern border to ohio, to pennsylvania, to michigan, all across the country . It doesnt make an ounce of sense especially when we know there are members of hamas trying to get through that border. This is really an insane policy, larry. I recognize that a lot of my colleagues would like to support our ally israel. I think we should support our ally too but we shouldnt let that support be used as a fig leaf for disasterous biden policies. Larry how much of the aid can be done, larry . It has to lay at the senate for a day. There is a world if democrats dont object to this we could get voted on monday. Well see how many colleagues of are willing to put their money where their mouth is f they think is bipartisan support for lending to israel this should pub it through. Some democrats dont want to give away political leverage will try to force a combined vote on the package so they will stop us. We are trying to throw it out there to see what people do. If they actually believe in supporting our allies across the world, this is an opportunity to do it but i dont think that is what is going on. Larry are you pretty happy with Speaker Mike Johnson who is on the same page as you on this and probably other issues . Im very happy with speaker johnson, larry. A lot of people talk about how this was messy and chaotic. Sometimes democracy is messy and chaotic. That is a good tinge, not a bad thing. I think this all resulted in a speaker obviously is a consensus choice. Not a single dissenting voice among house republicans. Im thrilled we have a new speaker. Our job as republican minority in the United States senate is not to undercut the new speaker. He has negotiations, he has to do with the president of the United States. He has his on set of policies well pay agree 99 of the time. Lets facilitate the new speaker being successful, not undercut him. I think dividing these packages is a way to do exactly that. Larry let me come back to the israeli, the war itself, senator vance, President Biden, secretary of state Antony Blinken, kirby, john kirby, the spokesman, all keep telling us theres no direct iranian involvement in this barbaric hamas invasion. Okay, they keep maintaining that. Now, this morning im sure you saw it, front page, wall street journal, the story is, essentially, 500 terrorists were trained in iran. Islamic jihad, hamas, 500 of them were trained in iran just weeks before the invasion itself, and this comes after another wall street journal story and a Washington Post story, probably several weeks ago now, that suggested iran was working handinglove with hamas for the last two years, planning and financing this invasion. I want to read you israels top military spokesman. His name is rear admiral daniel hagari, before the war, i will quote directly, before the war iran directly assisted hamas with money, training, weapons, and technological know how. Who is biden kidding kidding thn wasnt directly involved, i asked you who he is kidding . I think he is kidding himself, larry. We know iran is the biggest state sponsor of terrorism in the entire world. They have been directly supportive of hamas not just the last couple month but the last few years. This is why it is crazy for the Biden Administration to hand over billions of dollars to the iranians knowing that a big chunk of that is going to be used to state sponsor terrorism. The biden folks have this line that doesnt make any sense. I know youre a smart guy when it comes to finance, larry, well they say, that six billion dollars will not be used for terrorism. It will only be used for humanitarian assistance. Money is fungible. If you give somebody a dollar for humanitarian assistance that frees up resources they can devote to terrorism. It doesnt pass the smell test. Lets stop funding iran especially at a moment we know that theyre supporting terrorism, not just against our allies, larry, but most importantly against us. Larry so that brings me to my last pint, you know, the way to do this right now is to enforce the sanctions which have gone unenforced for almost three years. That includes by the way a failure for a snapback of the u. N. Sanctions deal on Ballistic Missiles but look it, i call it stop a ship. If you want to send a message to iran, all right, if you want to show some deterrents instead of appeasement, why not look, abide any iranian ship carrying a cargo of oil that is going to be sold to china or maybe drones that might be sold to russia or whatever it is, theyre not supposed to do that under the sanctions. We had them bankrupted in the trump years. Now theyre flush with 80 billion in oil and Foreign Exchange reserves. Why not stop a ship, senator vance . Why dont you, get a bipartisan bill through congress, through the senate or some darn thing to make the bidens enforce the sanctions because we all know that iran is the master puppeteer here . Well, larry look youre exactly right we need to enforce the sanctions and and there are some pieces of legislation working through the senate and the house that would do exactly that. By the way while were talking about sanctions, larry, lets not forget our Energy Policy is actively enriching iranians. If we drilled more oil, refined more oil in our own country we wouldnt be funding the Iranian State sponsor of terrorism regime. With the one hand joe biden says he wants to stop the iranians from sponsoring terrorism. With the other hand he pursues a Energy Policy makes americans poor and makes iranian mullahs richer. Doesnt make a ounce of sense. The biggest thing we can do to cut off irans power is make ourselves energy dominance. Why one of the reasons President Trump need to be become president inn 2024 and we need to become Energy Independence and stop bidens war on americas enemy. It is not just a war against consumers but a war for american enemies. Larry senator vance, thank you very much. See ya, that was jd vance for you. Coming up on kudlow antisemitic hate crimes should get peach h people busted and thrown in jail. So why hasnt president bite done that already . Well talk about it with Newt Gingrich next up onmake kudlow. Like a smart coffee grinder, that orders fresh beans for you. Oh, genius for more breakthroughs like that i need a breakthrough card. Like ours with 2. 5 cash back on purchases of 5,000 or more. Plus unlimited 2 cash back on all other purchases. And with greater spending potential, sam can keep making smart ideas a brilliant reality the ink business premier card from chase for business. Make more of whats yours. This isnt just freight. These arent just shipments. Theyre promises. Promises of all shapes and sizes. Each, with a time and a place theyve been promised to be. A promise is everything to old dominion, because it means everything to you. The first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. We just got an order from dinosaur, colorado. Start an easy to build, powerful website for free with a partner that always puts you first. Start for free at godaddy. Com hi, im norma, and i lost 53 pounds on golo. When i started golo, i expected to plateau like i had so many other times. I was surprised that sticking to the golo plan and taking release, the weight just kept coming off. soft music hi, im jason and ive lost 202 pounds on golo. So the first time i ever seen a golo advertisement, i said, yeah, whatever. Theres no way this works like this. And threw it to the side. A couple weeks later, i seen it again after getting not so pleasant news from my physician. I was 424 pounds, and my doctor was recommending weight loss surgery. To avoid the surgery, i had to make a change. So i decided to go with golo and its changed my life. When i first started golo and taking release, my cravings, they went away. And i was so surprised. You feel that your body is working and functioning the way it should be and you feel energized. Golo has improved my life in so many ways. Im able to stand and actually make dinner. Im able to clean my house. Im able to do just simple tasks that a lot of people call simple, but when youre extremely heavy theyre not so simple. Golo is real and when you take release and follow the plan, it works. Larry you know i dont really get this story at all. Why arent people being busted and thrown into jail for antisemitic hate crimes . That is whats happened in other minority groups that have been attacked, for example . Why hasnt biden done this already . He dont even hardly talk about it. Joining me to talk about it, this incredible wave of antisemitism is our great friend Newt Gingrich, former speaker of the house, fox news contributor, author of the march to the house majority. The republican revolution. Yesterday at cooper union in downtown new york there was a palestinian, palestinian rally and they found out some jewish kids in the library, starting to march against it, the jewish kids had to try to lock the doors and save themselves. Washington, d. C. Yesterday, or the day before, George Washington university, they had all kinds of things projected on walls, i dont know if it was exactly graffiti or pictures, whatever, you see this we all looked what they have done at yale and harvard and northwestern and these other places, the point is, newt, these are hate crimes. You have said that. Why arent the Administration Acting on this . Well, look, i think its easy to underestimate the depth of the antiisraeli and Antisemitic Attitudes that are now at the heart of the Democratic Party and the heart of the Biden Administration. The fact is supposedly 100 people in the white house went to a meeting to deal with their anxieties about whats happening, not to deal with anger about 40 babies being killed, babes being beheaded, not anger with women being raped and dragged through the streets dead with people spitting on them, not to deal with anger about 1400 innocent people being slaughtered, oh, no, their anxieties, watch the news media, part of the same antiisrael, antisemitic process. Now we suddenly decided that palestinians who are being hurt only because hamas uses them as a shield, i mean this war could end this evening if hamas would surrender but hamas isnt going to surrender and hamas doesnt mind palestinians being killed as long as they are able to put them up on youtube or on tiktok or on some other device to use them for propaganda. Here in the United States, first of all, anybody who is here who is not a citizen, who is participating in antisemitic rallies should be deported. They should lose green cards or student visas, they should be gone. Second, we should enforce the law which already exists which requires all these major universities to publicly state where their funding comes from because i think between the chinese and various elements like the iranians, we would be shocked at the depth of penetration in our system. The congress right now should be actively investigating the fact that there are at least four iranian agents working in the defense and state department, literally, people who are iranian agents, the key person making policy under obama, turned out to be an iranian agent. It is maddening how much we have allowed people who want to destroy our way of life. And remember, death to america and death to israel arent just slogans. That is the goal of the iranian dictatorship, were sitting passively, and though we ignored stalin, we ignored the soviet union and weve been unwilling to deal with the reality of coming nist penetration. That is where we are today. Larry you know, newt, this Justice Department, Merrick Garland, and his fbi have gone after prolife catholics, they have gone after parents who were worried about sex changes among five or six or sevenyearolds, go to pta meetings, they will not go, where are they at these antisemitic rallies for example, or gatherings . Why arent they monitoring this . Why arent they announcing they are going to monitor this . The thing that blows me away nothing has been said about it. I mean the silence here is absolutely deafening and it is so troubling . Well, look, lets be honest, these people are committed to an antiamerican value system, theyre committed to being antichristian and antijewish. Theyre committed to being antiwhite. This runs all the way through the Biden Administration and now runs through much of the Democratic Party and it is a huge problem. Of course the campuses which were going to basically have to recapture, are currently occupied by people who hate america, professors who say that it is great the jews are being killed. Why arent those professors summarily fired . The whole range of places here, we have lost the capacity to stand up for ourselves and to draw a line in the sand and to mean it. And by the way, in the we dont even defend americans overseas. The iranians have been had their various proxies shooting at us for weeks. The hamas killed 32 americans at least with 10 missing. Wheres the punishment . Where are the tomahawk missiles . Where is the effort to go right after them . You know the answer isnt that we now had both biden and the secretary of state say well hold them accountable. Larry what does that mean . The morning i see a iranian refinery blow up, the morning i take your ship one step further, the morning i see us impound every iranian ship at sea, then i begin to think were holding them accountable. Until then this is a gutless administration which lies to everybody and which is tolerating a level of antiamerican and antiisraeli behavior that is unthinkable. Larry yes, sir. Former speaker Newt Gingrich, thank you, sir, appreciate it very much. Spot on. Folks coming up here, next block, senator Chuck Grassley says, listen to this, grassley has written a letter to the Justice Department saying there were 40 fbi sources, fbi sources that gave criminal information on the biden scandals and the Justice Department squashed them as quote foreign disinformation. Really . 40 fbi sources, foreign disinformation. Anyway well talk about it with distinguished George Washington University Law professor jonathan turley. Then plus top line gdp looked pretty strong today but under the hood there is some very Serious Problems on the horizon. Stocks got crushed i might add. Anyway we got and allstar panel, liz peek, Brian Brenberg, Jason Trennert, all when kudlow returns. 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The kit will show you how you could get the cash you need using your homes equity as a reverse mortgage from aag. Call the number on your screen. Ive been with aag for quite a while now. I think theyre the real deal. Call the number on your screen. So look, why dont you get the facts, like these folks did, and see if a reverse mortgage could work for you . [advertiser] call aag, the countrys 1 reverse mortgage lender. Call the number on your screen. Larry all right, another problem out there, senator Chuck Grassley says, listen to this, folks, there were 40 fbi sources, these are fbi sources, 40 of them, gave criminal information on the bidens that the Justice Department is apparently trying to squash as quote, foreign disinformation. Really, foreign disinformation . All right. Joining me now is jonathan turley, George Washington University Law professor, constitutional lawyer, fox news contributor, all around brilliant person. Jonathan, now grassley, you know, if you ever work up on the hill or spend anytime up there, you know not to mess with Chuck Grassley, that is point number one. Point number two, he wrote this letter, and he wants a response in the next couple weeks but jonathan, i guess whats new here is 40 fbi, these are the 1023s, 40 sources were squashed, you tell me what does this mean . Letter so important we have to find out what it does mean. We have to find out what these sources were and why they werent pursued. Weve seen this movie before. This is what happened with the hunter biden laptop. We now know that the Biden Campaign was behind pushing that narrative that the laptop was russian disinformation. They got all of these former intelligence officials to sign off on it. That was debunked. It was debunked fairly quickly by american intelligence. There is no indication this is russian disinformation. So the question is, was this that same narrative . Was this the same phenomenon affecting the fbi . The fact, larry, it is not a career enhancing move to investigate a sitting president or Vice President and when people dont want to do the right thing, they will try to find any reason not to do it and russian disinformation in the past has been that thing. Larry well i tell you, i will just read real quick from brooke singman, fox digital, jonathan, grassley learned that an fbi task force within the Washington Field Office Sought to and in some cases successfully shut down reporting and information from their sources, these are fbi sources, by falsely discrediting the information as foreign disinformation. That caused investigative activity to cease. I mean, this is not good, jonathan, and i think needs to be attended to immediately. Well the real concerning aspect of the grassley letter are all of these usual suspects. That office in the past has been the choke point in terms of investigations of the bidens. You have got to keep in mind, the bidens have been known for influence peddling for decades. They really took this favorite form of corruption to a new level so this is really concerning particularly because of the cast of players involved. Larry you know, the other thing grassley points out in here, other fbi field offices did not necessarily participate in squashing this information. It was the washington one that seemed to be the leader. Now weve had trouble with this crowd before. I dont care whether youre left or right but you know, you want them to be straight and so many people have argued its the Washington Office that has to be completely changed, the top five or seven levels, you know more about this stuff than i do but it is like here they go again. The thing people need to realize it is very easy to quash investigations in a government of this size. We saw it with the whistleblowers they never really saw the hand pulling the levers. All they knew they believed they had credible case against hunter biden for very serious crimes and the lights kept on getting shut off and this follows that pattern. It doesnt mean that all of these 40 sources were supported and would have been moved upon but they form a pattern or a mosaic and you would think that Merrick Garland would say, finally, you know what . Lets be transparent. Lets answer these questions, so that the public can regain some trust in the fbi. Larry and you know, among other things, jonathan, lets get to the bottom of this business. I think that is what the public would like. Right. Larry jonathan turley, thank you, sir, appreciate it very much as always. Thanks, larry. Larry all right, folks we are going to pivot with the speed of light. Well talk about todays gdp report, what was it, 4. 9 . Almost 5 . We have liz peek, syndicated columnist and fox news contributor. We have Jason Trennert chairman of and Brian Brenberg host of the big money show right here on fox business. Okay, my licketysplit fast top line number, big number. Under the hood, lots of problems for the future numbers. Liz peek, i will let you start. Big number, by the way with a two trillion dollar Deficit Running it should be a big number. Whats under the hood is continued pretty high level of inflation, lower real disposable income for i think the third month in a row which does not auger well for Consumer Spending. That is really what were looking for going forward. By the way, finally, a big, big increase in Government Spending as weve seen the last couple months and that is something that is really pulling, pushing this economy forward. Larry a third of the increase by the way for this number was from inventory accumulation, about a third of it. That is not sustainable. But jason, you know, your guy dan clifton had been writing, because of the debt ceiling debate where they had to postpone the final debt ceiling authorization, for an increase, the treasury ran down the treasury cash balances, i dont know, dont want to get too much into that, kind of like the federal reserve. The treasury can create money in the short run. They basically injected five or 600 billion into the economy, 5 or 600 billion into the economy late last spring which i think went right into Consumer Spending in the Third Quarter. It is phony, almost like a hoax. You had a doublebarreled host of stimulus after Silicon Valley bank failed. The fed Balance Sheet increased 400 billion in three weeks after Silicon Valley bank failed. Because you were not issuing new treasurys you drew down all the cash reserves of the Treasury Department which is another 600 billion. It is not surprising in a way that you have strong growth. I would say though, avoiding a recession at all costs which seems to be what janet yellen and every one else in the administration wants to do has a cost and that cost is inflation and thats why i am of the view this is going to be harder, it will be harder to put the gene any back in the bottle than perhaps the fed and others in markets think. That inflation will be more structural moving forward because we are running deficits of 5 1 2 of gdp. Larry pce core deflator, core, ha, ha, up 3. 9 . Youre still running 3, 4 inflation. Brian brenberg, President Biden, treasury yellen says our problems are solved. Theyre not supplysiders, thats not the problem. They look at number, oh, my goodness, 4. 9 , it is built on deficit and debt spending, it is not income driven. Real incomes are not rising. People are dipping into their savings. That is what they can feel. They can know, say at a high level, the economy grew but at individual level people say i know what im paying for things and, i know where i got the money. I dont like where im going for the money right now. This summer was a blowout spending summer but it was a Services Spending summer. Larry leisure, leisure. That is buy now, pay later or maybe pay never. Larry i think 3 Percentage Points go to taylor swift concerts. You would know, larry. You are a fan. Im only one that has not been to the taylor swift concerts. Now she is hooked up to a Football Player of one of the teams i hate the most so im not going to go. If you take out enough categories of inflation, you have low inflation. That is what paul krugman did. I have a great pal of mine, i will not maim his name, im responsible for the editorial part of this, i want you to take out everything but food and energy. Leave food and energy in, take out Everything Else in the inflation index. So in the Third Quarter that was up 6. 6 at an annual rate. My logic is very simple here, food and energy is what people buy. Gasoline, groceries, okay . 6. 6 of the annual rate. People should do this exercise. Take out every other bloody thing. Beat them at their own game. [laughter] i think thats right. Frankly if you added in housing it would be larry not going to touch that. I know, i know. Larry kills my model. [laughter]. Those are the things that people feel. Thats what theyre reacting to. Larry yes. It has impact on consumer sentiment. Has impact on spending i think going forward. I mean some of the best economists are own wall street say were at a turning point. You can see it in employment data, in the auto delinquencies, delinquencies on Consumer Debt were really getting to the end of this big consumer bubble you were just talking about. Yep. Consumers cannot go on spending forever. The savings rate came down to three eight in this last quarter. Way lower than it was earlier in the year. It cant go on forever. Larry i would say this, you still have inverted yield curve. It has been inverted for a while. That suggests the new york fed model, 60 chance of recession next year. Still have 18 straight months of declining index of leading indicators. That was down big. Larry i wouldnt diss that. Jason, stocks battled itself today, wound up down again. The nasdaq is in a very, very mean correction. The Mortgage Rate is running over 8 . I think the best leading indicator as we talked about is profits. Profits are lower this year than they were last year. What is surprising is that the employment picture has held up well. I think that explains to a certain extent why Consumer Spending has been better but there is only so Long Companies are going to hoard workers or hoard labor after a period of finding it difficult to find them before they say, gee, we have to take care of our own profits. To me that is the best leading indicator of all. Mothers milk of economic growth. Larry mothers milk of stocks, lifeblood of the economy. Brian, last word, jason is on this. Business investment fell again. Bingo. Larry Business Investment is down two of the last three quarters. The bidens like that because they hate business, so why not crush it. But Brian Brenberg i always thought it was Business Success that created the which are with all for jobs and economy and Consumer Spending . The problem we have the cart before the horse big time right now. The horse is saying i dont want to pull anymore, im pulling back. Im out. I dont like this environment. You can go on clapping for about 4. 9 but you better enjoy it now. As the consumer runs out of steam, businesses already said im out until i get a policy that actually works for us. It is not happening under biden right now. Larry absolutely right. I go back to my model, take everything out of the price index. Just leave in food and energy, up 6. 6 at an annual rate. That is problem. Liz peek, Jason Trennert, Brian Brenberg. Folks catch brian big money show 1 00 p. M. Eastern on fox business. My fav. Coming up stocks got whacked today. The Small Business russell 2000 is getting clobbered. The nasdaq tech thing is gets clobbered. So we will bring in mr. Wonderful, kevin oleary, see what he shays about all of this stuff. Stay right here. I am kudlow. Take out everything. Just leave in food and energy. It is a disaster. And ahoy its the explorer each helping to protect their money with chase. Woah, a lost card isnt keeping this thrill seeker down. Lost her card, not the vibe. The soul searcher, is finding his identity, and helping to protect it. Hey oh yeah, the explorer shes looking to dive deeper. All while chase looks out for her. Because these friends have chase. Alerts that help check. Tools that help protect. One bank that puts you in control. Chase. Make more of whats yours. 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We know the fed wants 2 . It is well above three, very hot print today as you talked about earlier. I mean very hot print. So the idea that they will be lowering rates any time soon forget about it, on top of that, much longer at these levels in 5 1 2 , or more likely in december would be a 25 basis point rate hike which is back on the table. I think before this is all over, if inflation stays stubborn, north of three, well get to a 6 terminal rate. That is why youre seeing the russell 2000 taking the hit because Small Businesses are financed by regional banks that cant take these rate hikes. So all of this is interlinked together, larry. It all fits together in this rather dramatic puzzle and right now the number one leading attribute is inflation. It just wont go away. Larry all right. I had to have a kevin oleary fix on a day like today. I had to have it. There you are. When are you coming on set, come back to new york, sit on set with me, i will do ten minutes i promise. Im in atlantic city, larry. Im so close to you, i can feel the love. Still far away. Larry nothing but love, kevin oleary the best of the best hive digital technologies. A leading Bitcoin Miner and gpu cloud operator is building the infrastructure of tomorrow, featuring a robust Growth Strategy that aims to double its mining capacity while accelerating gpuon demand business. Hive digital technologies. Say goodbye to daily insulin injections with omnipod 5. A tubeless system that automatically adjusts insulin to help protect against highs and lows. Try it today. Go to omnipod. Com for risk information and instructions for use. Consult your doctor before starting on omnipod. That first time you take a step back. I made that. With your very own online store. I sold that. And you can manage it all in one place. I built this. And it was easy, with a partner that puts you first. Godaddy. Just two quick asked President Biden. One, tell the truth about iran. Number two, tell the truth about inflation. Groceries and gasoline, up 6. 6 , food and energy is the only thing that matters and then if you want real truth, you got to go to li