Edward lawrence sat down for an interview with treasure secretary janet yellen, does not care much you can borrow and tax your way to prosperity,. Have former embdirector in Trump Administration, russell vote. Either tiktok will be banned or bytedance has to sell it off, fcc commissioner and former chair will weigh in, democrats going to block weapons to israel in i dont think so. But who knows. Later on. Voters did not like joe biden state of the union message. Why dont men want to work, David Bahnsen will tell us about, that first up, Edward Lawrence sat down with ros treasury secretary janet yellen in kentucky. Good work we lost him. I see him, he is not treasury secretary here, says janet yell et yellen said rate of inflation will fall more this year, overall prices remain too high, she believes that rent is one reason that inflation will come down this year, once the new leases cycle through, i asked her about overall prices up, 18. 95 under President Biden since the month he took office, and americans with new Credit Card Debt because of the prices. The time we spent some of that buffer of savings in particularly lower income households are borrowing again, on credit card, see it as normalization rather than a disturbing new trend. Reporter not concerns that delyn delinquencies have started to inch up, she will be more cautious with her words going forward. In 2021, you said that inflation was transitory, do you regret saying that. I regret saying it was transitory. It has come down but, i think transitory means a few weeks or months to most people. Reporter on president 7. 3 trillion dollar budget processual secretary yellen defending tax increases as moderate saying she believes that u. S. Needs Government Spending and e expandinged programs. You can tax your way to prosperity. I think deficits we need to be on a fiscally sustainable path, it important to prip down bring down deficits and important to invest in the economy in ways that will befewill be felt all through america. Reporter and she said, federal debt is manageable right now, she says that federal debt is manageable when it is 53 trillion dollars. Larry all right. Thank you Edward Lawrence. Stay with me, stay with me, well bring you back. With former trump omb director, a few comments about this story. A great interview. I love the headline from reason magazine. White house claims borrowing 16 trillion over the next decade is fiscally responsible. So that is point number one. Since when is 16 trillion fiscal i responsible . Number two, the sub heading. If you cant get close to balancing the budget when unemployment is low attack revenues near record highs and economy booming, when can you do it . Hats off to reason magazine, treasury secretary yellen, very smart and experienced and accomplished public servant, but she was dodging my friend ed friend ed friend Edward Lawrence on issue of tax hikes, i want to make biden basketball dud no budget does not bother to show balance at end of 10 year window. Not even a phony path. The bidens are not good socialists, they are touting efficacy of huge spending and huge taxing and huge regulating but they dont produce the goods in their own numbers, if you believe this stuff, you should show 4 to 5 Economic Growth and a planned budget in 10 years maybe a balance budget in 5 years, their budget of shows me they dont believe their policies will work. I dont believe their policies will work either. But you would think if you bought into the Big Government socialist model, you would build in good rosie scenarios in the budget, but they dont. Down through the years most administrations show a balanced budget over 10 years. A fiction yes, but maybe useful or a disciplinary falsification, but not the bidens. Baseline shows a combined deficit increase of 19. 5 trillion dollars, and level of debt in public hands 28 trillion in fy 24, and 4 49. 8 in fq dollars that is increase of 22 trillion in debt, they are huge numbers, they could never possibly pass for something called fiscal responsibility. Which is how the biden fact sheet describes their policies, i will say there are no wars, no National Emergencies or pandemic no nothing, but record spending and taxing and deficits and borrowing. My question, and that is my riff, we bring back Edward Lawrence with my pal, and former colleague russ vought. Now president of the center for renewing america. Russ. If these guys believe this stuff, you would think they would show it. They dont have a fiction of balancing that budget, i look at that baseline, and omb baseline, there is no steady reduction. No nothing russ vought. I thought we would bring you in and hear you out. It is a great point. President ial budgets are post policy, it is their opportunity to white board how would we solve this fiscal insanity that were facing, we could have a debate about various trade offs, they want to tack more, we dont tax more we dont, they are not even willing to have an honest conversation or put forward policies that could get to a better steady state, they just want to keeps the status quo, create as much problem for fed as necessary, and get through this election and keep on businesses as as you usual, i think this is nothing new, it all the same, a little boring to be honest with you. Larry Edward Lawrence, i know you made a va valiant effort but miss yellen did not want to deal with borrowing or taxing issue, the other thing, they dont have spending cuts in their budget, they have user fees that scored as a spending cut that is not real spending cut. They dont do anything to restrain spending as far as i can tell. Reporter in propose add budget 7. 3 trillion in spending and 5. 5 in taxes increasing that deficit 1. 8 trillion in 2025. I tried to ask her nail her down talking about can you tax your way to prosperity. What about the cutting to get a pla balanced budget, they would like to see defecate co deficit come down, and debt come down. But said, we need the investment they are making in america, with all programs they have. There was a evation of question about whether they would balance the think about, there was no answer for that, saying we needed these investments that the president a doing. Larry russ, it is very interesting russ vought, she is being cagey. She is a smart lady, her hands are tied with respect to policies. Im not sure even she agrees with, i want to make one point, if you dont cut spending someplace, somehow, you will never curb budget deficit, you want to grow the economy, she has a 2 growth path that is standard washington stuff. With tax hikes may come in lower than 2. Everyone has 2 growth path. If you dont cut spending russ vought, somewhere somehow, someplace, you are never getting even remotely close to a plan balanced budget. More than just a balanced budget, you dont take care of spending and the fiscal situation, and what happens you enter a crisis, and you cant predict when the crisis will happen then you get to a real ought austerity moment, that is what greece faced some country in a particular bind because people dont want their debt any more. And longterm we could face, that we dont know when it am hatch, by us not getting a handle on stuff that easy to cut, get rid of discretionary bloat and bureaucracy that is killing the country and dividingous basis us on base of race and identity, start with foreign aid, by not going after, that they put us in a situation we could face fiscal boom and we wont be able to predict when it would happen. Larry Edward Lawrence, i hate to pick at nits, the cpi went up 18. 6 from january of 2021, groceries up 21 , and gasoline up 39 , i know you raised it, you are such a mean interviewer, real wages have actually fallen. If you measure during the biden three years it dropped boby 4. 7 , she was using 2019 as a baseline, i know real wages went up in trump years, they have gone down in biden years. People want to go back to the increase in real wages, this was cagey using 2019. The 2019 and 2020 were trump years Edward Lawrence. Reporter it was march of 2019 she was using, early 2019. And that. Offed that out to her that was before President Biden policies were put in place, start from that location, this is where we were. And here is where we are now. When this president went into office, she changed subject saying they have to do investment to get the economy going, an interesting point, i talked with her about Credit Card Debt. Not just within the federal government, she believes that the Credit Card Debt was manageable right now for americans. And it is seem like it is inching up with delinquencies we lated to credit card and autos, this might be a breaking point for consumer at some point in this year. She didnt feel that was coming she felt people were in good financial situations and called it normalization of where the delynn quengi delinquencies would be. Larry other thing, the business about billion ai bilge billionaires dont pay their fair share, you cant judge billionaire income based own re realize Capital Gains law that has never been passed, they keep doing that, they add this income in, there is no such thing as unrealized Capital Gains, there is no trans actions or legislation, she feels she has to play along with her boss. Russ vought, let me ask you, with respect to mr. Trump, who is got you everyone decent lead on economic polling now. Rescission authority, and just in general, tough on budget cutting, he has to do it if he gets elected. I think people should judge him by budgets he has put forward, always a misgnomer that president of the not willing to tackle the fiscal situation, he proposed more spending cuts and reductions and reforms than and president in was largely ignored by congress. And he was facing an uphill congress. Now, he has put forward proposals like revising authority that 200 years of president s had i believe that went away. That was original sin that allowed to no longer have a separation of power fight to control spending it was whatever Congress Said it would be. I think people should look at what he is put forward as post su substantive set of policies, judge him by, that they am find a heavy focus on growth, they will see policies that get us going, vital to the fiscal picture and a sequence of going after Discretionary Spending that is bureaucracy, that is a third of what is necessary spending wise to deal with our get you our fiscal house in order ethen welfare reform, without a huge ham hock hammock of benefits that is how he has approached spending that makes a ton of sense the way that congress could pass it, if they were willing to give it a 6 look. Larry russ vought thank you. Edward lawrence great work, great interview, thank you. Back to kudlow, breaking up is hard to do. But tiktok is left with two choices, break up with Chinas Bytedance or break up with america. That is the deal, it passed house today well talk with fcc commissioner brandon carr, here is a great song from 1960s, early 60s, instead of breaking up a wish that we were making up again i beg of dont sa is bad debt holding you back . The only limit is the sky its our time you dont want to miss it just a little bit louder its our time you dont want to miss it its your moment in the spotlight all your ambitions. All in one app. Low fixed rates. Borrow up to 100k. No fees required. Sofi. Get your money right®. Before you use ai to transform business, accelerate growth, predict trends, you need to begin with trust. Introducing watsonx governance. Helping you govern any ai, as data, models, and policies change, so you can scale it responsibly. Lets create ai that begins with trust, with watsonx governance. Ibm. Lets create. We planned well for retirement, but i wish we had more cash. You think those two have any idea . That they can sell their Life Insurance policy for cash . So theyre basically sitting on a goldmine . I dont think they have a clue. Thats crazy well, not everyone knows coventrys helped thousands of people sell their policies for cash. Even term policies. I cant believe theyre just sitting up there sitting on all this cash. If you own a Life Insurance policy of 100,000 or more, you can sell all or part of it to coventry. Even a term policy. For cash, or a combination of cash and coverage, with no future premiums. Someone needs to tell them, that theyre sitting on a goldmine, and you have no idea hey, guys youre sitting on a goldmine come on, guys do you hear that . I dont hear anything anymore. Find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Her uncles unhappy. Im sensing an underlying issue. Its tmobile. It started when we got him under a new plan. But then they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. You sing about price lock on those commercials. The price lock, the price lock. So, if you could change the price, change the name its not a lock, i know a lock. So how can we undo the damage . We could all unsubscribe and switch to xfinity. Their connection is unreal. And we could all unexperience this whole session. Okay, thats uncalled for. Larry all right breaking up is hard to do, house sending a clear message to tiktok, either break up with China Bytedance or break up with america, we start with Hillary Vaughn on capitol hill. Big vote today. Reporter it was a big vote, now really clock is ticking in senate for leader Chuck Schumer to decide when to do what to with tiktok. Whether the house passed bill is dead on arrival in senate or if it will receive a floor vote, some democrat want it to go through committee. That has and others like senator John Fetterman want bill to get a fastpass. Schumer saying he will look at it once the house sends it over, white house saying they want to see senate take quote swift action on this and some democrats and republicans in senate teaming up to support it, the chairs of Senate Intelligence committee releasing a joint statements saying were united in our concern about National Security threat posed by tiktok but, as much of a bipartisan effort there is backing this bill, opposition also popping up on both sides with senators like rand paul against the bill saying others are open to this bill, but not to yes, yet, one is senator john kennedy who wants cas classified intelligence briefing directly addressing tiktok. Larry. Larry Hillary Vaughn thank you. Lets bring in two experts on this. Brendan carr who is fcc commissioner and ajit pai former fcc chairman and fellow at American Enterprise institute, thank you both. I dont think that my friend, i think that world of rand paul, but i dont think he is right. I was reading your notes, this stuff the. Control is iran even then it has to a threat to National Security, china qualifies. I think that some of these senators dont understand how this legislation has been written. Thank you, senator paul has been good on so many matters of individual liberty this bill, as you noted is different, it only applies if you are controlled by a foreign adversary country, which is defined as russia, china, north korea and an iran, only then, a National Security threat in addition to being controlled, it has nothing to do with surveillance or free speech, this is a clear and present danger that tiktok recents it is presents it is b beholden to the ccp. Tiktok tries to do it, they failed. Not because they are necessarily bad people but because they are beholden to the ccp any other reforms we want will only work once you break that link back to the ccp, it goes back to what you did in white house, and huawei. You are kind, ajit pai there is aiwa there is huawei feel to this, there are two other issues that brendan carr laid out. One is the issue of socalled tiktok algorithm. Whether that thing can be seized, changed, modified. You know we loo look at this years ago, a lot of people said yeah even if it sold somehow child will have their claws to what plays on tiktok the algorithm. Other point, buying tiktok, you are in the i know you are flirting with the invest ginvestment banks, do you think that someone would buy tiktok . Thank you, larry. With respect to first question, it is difficult seizing an algorithm presents legal and policy issues, as a practical matter is difficult for government in real t realtime to regulate or take action with particular to your particular algorithm, commissioner carr has been on point, it has been controlled by Chinese Communist party. We saw this with hamas young people use tiktok, becoming fans of osama bin laden. And i think there are reasonable questions about algorithm that need to be answered, the second question it depends on terms of divestiture, you know better, Investment Community in United States and in world outside of china, has really become sensitive to fact that the Investment Opportunities to extend there is a linkage to Chinese Communist party are limited. You cant have certainty over that what investment holds. There could be potential buyers. But at the end of the day they of looking for what congress is looking for, a certainty this is an individual entity, that they could have control over meaningful input into, and not answering to beijing. Larry it may come before the fcc, they are probably weighing in on this im sure they will weigh in against bytedance. Then, if china doesnt want byte