newsome joins us with his reaction. that's this hour. first, have you seen the shocking inflation numbers that came out this morning? this is not what anybody was hoping for. these numbers keep creeping higher as the country plunges into territory that we haven't been in 39 years with some prices popping as much as 58%. that takes a bite out of your wallet. so this is obviously a major concern for u.s. voters and families across the nation. these very real concerns including crime and labor shortages as well are prompting really surprising shifts in party loyalty as we look ahead to the mid-terms. take a look at this poll, which is understandably getting quite a bit of attention for people that watch politician and the voting groups very closely. according to the new numbers from the "wall street journal," hispanic voters are now evenly split in their allegiances between democrats and republicans. that's a significant move. given that president biden beat president trump with hispanic voters by 30 points in 2020. what is going on out there? mercedes schlapp and juan williams. great to have you with us today. hi to both of you. obviously economic concerns, juan, i'll get to you first. doesn't matter what color you are, what your background is. this is hitting everybody. we know that that is one of the biggest concerns of all voters regardless of background. >> absolutely right, martha. that was a fascinating poll and showed there was a particular drop off for democrats among hispanic men and again when you talk to them and the focus groups according to the "wall street journal," what the you see is they're talking about the economy and anybody talking about the economy especially today is talking about inflation. about, i would think, with some particular regard to high gas prices. now, you know, the whole thing about this being -- inflation being transitory, transitory just wept out the door. right now people are concerned, but in all honesty, it's troubling to see this inflation, but i think from the democrats' point of view, it's not something that they see as alarming. not drastic. you still have strong job numbers that came out last week. we have very low unemployment. we have wages going up. but people don't like inflation. i think that's why people react by saying they don't feel good about this economy. >> martha: one of the big issues, mercedes, politicians and political parties take different groups for granted. with the assumed population increasing, population of hispanics, democrats figures all of those voters are ours. they're finding out that isn't the case. listen to from richie torrez, a democrat from new york. here's what he's saying. >> we have to be careful not to treat the latino vote as a model and not to take historical constituencies for the democratic party for granted. we can lose those constituents and we have lost them. >> mercedes, what do you say? >> yeah, the democrats have been very comfortable in they thought they were making inroads with the hispanic community. the problem is when the democrats and the leftists are pushing things like changing the spanish language, going from latino to latina to latin x, when hispanics don't recognize that word and gender race confusion and critical race theory, that is very alarming. add to that the economy as juan brought up. this is critical. what is happening is that the hispanic families want to make ends meet. they're working hard to achieve the american dream. what are we seeing? rents going up, housing prices going up. food prices going up. they can't afford it. it's putting an enormous amount of stress on so many working families out there. i think that's why you're seeing the hispanic community basically saying wait a second here. i came here for a better life, i'm raising my kids. all of a sudden i can't afford to live in america. they're going to blame it on the party in charge. >> martha: the sharpest decline nor president biden among racial groups, the sharper decline is hispanics. texas, a state blue voters would love to see themselves do better in, 54% disapprove of this president, with the job this president is doing. does this trend concern you, juan? >> yeah, look, you know, i'm a democrat, but here's your political analyst. i think the democrats have every reason to be concerned. not just in texas and not just among hispanics. you know, when you look at president biden's poll numbers and people talk them about them in the real clear politics average in the mid to low 40s, that drop-off is not because republicans have turned against the president. republicans weren't with him in the first place. what you're seeing black voters and hispanic voters and independent voters saying they don't like this economy. that is a really important point given right now the president is still out there pushing the build back better plan and you have people saying, hey, could this add to inflationary pressures in the country? the contrary point would be the policies, things like lower taxes for the middle class, help with child care expenses are popular programs and so far the economists say they won't add to inflation. but it's a delicate dance and it has real political consequence if not handled well. >> martha: yeah, the other polls they show only 1 in 4 voters say that think that build back better will improve the economy. that's a big issue for democrats as they look forward to the mid-terms. juan, good to see you. mercedes, good to see you as well. thank you both. still ahead on this story, the black lives matter leader who is at odds with new york city's crime-fighting mayor elect and secretary mike pompeo and ambassador bryan join me in their first interview as president biden is put to test on the world stage. they'll be here next. veteran homeowners, newday's rates have dropped again. it's time to refinance. newday's low rate refi offers their lowest rate in history. two and a quarter percent. just 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o'brien. first to national security correspondent jennifer griffin just out of the briefing at the pentagon. high, jennifer. >> hi, martha. it became very clear listening to john kirby at the pentagon, we questioned him about the build-up on the russian forces on the border with ukraine. it became very clear that there's not been any change since the president spoke to vladimir putin earlier this week. the status quo seems to be holding and russian forces seem to be along the border. here's what john kirby said when i asked him about the forces moments ago. >> i would say that there's still a sizable amount of russian forces in the western part of their country around the borders while the border with ukraine, to the north, to the east and to the south of that extreme eastern part of ukraine. >> we also asked john kirby about a statement that came out from russia that the russians said if nato would rescind its potential offer down the road to ukraine and georgia to join nato, possibly there could be a reduction in tensions and those forces could be removed. i asked john kirby about that. he really tap danced a bit. it's not clear what nato's stand is in terms of the offer to ukraine and georgia. clearly that is something that has been dangling for some time. it's not clear the administration or nato is willing to take that off the table. right now we're in a very serious stand off on the border with ukraine. all eyes on what vladimir putin plans to do next. also at the pentagon briefing, there were questions about future twaining with the u.s. military and israel when it comes to military options should i ran -- the talk with iran fail in terms of the nuclear program there. kirby said that in fact those are routine exercises even though records from israel suggest there may be more than that. back to you. >> martha: thanks, jennifer griffin. let's bring in former secretary of state mike pompeo, a fox news contributor and former national security adviser, robert o'brien. great to have you with us, gentlemen. really big topics. secretary pompeo, start with you. you believe that vladimir putin will cross the border with more of his troops that are massed on the border right now in to ukraine? >> martha, i think that's still up in the air and depends on the behavior of the united states and the european countries that have more interest in it. there's a lot of history here. vladimir putin thinks the breakup of the soviet union was a catastrophe. he then watched the colonial pipeline be shut down and he watched the united states do nothing under president biden. it was biden that wouldn't provide more than sleeping bags and lemonade to the ukrainians the last time he took 1/5 of ukraine. we need to establish that deterrence. if we get it right, we can prevent vladimir putin from engaging in this coercive sluggish behavior. >> martha: mr. o'brien, when you hear jennifer griffin reporting about the back and forth on the russians, vladimir putin wanting us to rescind any discussion of nato inclusion for ukraine and georgia, as a matter of fact, and that there's not an unequivocal -- that invasion won't be rescinded, does that surprise you? >> no, it doesn't surprise me. secretary pompeo laid out the context right when mike and i were in office, the russians had two very primary foreign policy goals. one was to get a clean extension of the new start nuclear treaty that they didn't have to to anything, they could violate the treaty and build up arms and the other is to have nord stream 2 completed. we stopped that in the trump administration. they were given in exchange for nothing. the tools that we had, those chips are now off the table and vladimir putin has massed troops on the border and now has a new demand. that is that we take off the table the ability of georgia and ukraine and free people in both countries, a portion of those countries that the russians don't already occupy to join with the free world. again, we have nothing for the earlier good will and now he's coming back and saying what have you done for me lately and wants more. we have to be very careful how we handle this situation. >> martha: now you have ukraine commanders sounding the alarm. they're saying we cannot hold off a russian invasion on our own. we'll be overwhelmed, were their words. >> martha, i've seen the statements. the ukrainians are capable fighters. i've been in the southeastern part of the country. they're warriors but they need support. not only from the united states in terms of armorments but the european partners they need help from, too. europeans need to be first in line to get it right to protect the ukrainians from this behavior from vladimir putin. >> martha: any sign that that will happen, ambassador o'brien? germany has a lot invested in this nord stream 2 pipeline. they went with that deal over the objects of the trump administration. you think that germany and other european allies will present a military threat in any form to the russians and ukraine? >> secretary pompeo is right. martha, it's not just a military threat. it has to be diplomatic threat to the russians as well. we have not seen much from the new german chancellor. very little out of berlin. they've been soft on russia for several years now. that's something that we need to see change unless we wants to see european borders start being changed by the use of force as we saw in the 30s. there was good news that came out of paris. president macron made statements on ukraine sovereignty and supporting ukraine and supporting ukraine militarily. so it was interesting to see that paris is taken a harder line than london or berlin on this. that was a promising sign. it's not enough to have macron alone sounding the alarm and support for ukraine. we need the new german chancellor, prime minister johnson and others to get involved as mike pointed out. >> martha: you know, it was interesting to listen to jake sullivan, secretary pompeo, talk about the nord stream 2 pipeline saying we can turn it off again. it has -- the oil has not started flowing through it but the construction is largely done. so he sort of presented that as we can still hold that over their heads. we can withdraw that. you agree with that? >> martha, they probably can, but it gives me no joy for them to have learned the lessons that we told them during the transition. the things that we need mattered to american people to protect our security interests. that's what this is about, it's about making sure that we have the rule of law, things that mat tore american businesses and jobs here at home. they probably can do things to shut it down, although it's further along than it was 10 1/2 months ago when we left off. i regret that they're thinking about allowing that pipeline to be continue to be built. they should shut it down. it's not in the best interest of europe or the united states of america to allow that pipeline to be completed. >> martha: it's tough to see any barriers that vladimir putin would need to move forward with his intent as it appears on the border. see what happens. thanks, gentlemen. >> thank you. >> martha: great to see you both. thanks, gentlemen. >> thank you, martha. >> martha: so new york city's mayor put a blm leader on notice for talking about blood shed in the streets. >> because we believe in defending our people. so there's no way that we're going to let them come in here and harm our people. we pray for peace, but black opportunities, prepare for the worst. >> martha: so how does hawk newsome respond? he joins me next. >> i watched you talking today and you said burn it down. you said burn it down. it's time. so that makes me think that you want to burn it down. >> i said if this country -- if this doesn't doesn't give us what we want, we will burn down this system and replace it. ♪ limu emu... & doug ♪ ♪ superpowers from a spider bite? i could use some help showing the world how liberty 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>> martha, i've been on with you a number of times. never has there been a greater day for babies. babies in the womb are celebrating. innocent life has a chance to live because of this supreme court decision. this is a total victory for the heartbeat bill. when office senator, i wrote the sonogram bill in 07, finally passed in 11 which cut abortions down a third in our state when women were entitled to see a sonogram that it's a real baby with a heartbeat. this bill will reduce the number of abortions already. i want to they our senators that carried this along with our legal staff. this was a very creative way and legal way and constitutional way to save life. the court upholding it today, martha, is just a great day for life in america. >> martha: i want to put a couple things on the screen. this is a poll from "the washington post" on this texas abortion ban. it was done number 7 to the 10th. it says the state law in texas authorizes private citizens anywhere in the country to sue anyone that assists or performs abortions in texas after six weeks. 29 people wanted the court to reject it, 69% wanted them to uphold it. this is jen psaki today in the briefing. >> the ruling this morning is a reminder of how much these rights are at risk and how women across the country that is now, in texas especially, it's been 101 days since this was put in place, 101 days where the health or access to what has been law of the land for many decades now has been questioned and put -- and challenged. >> martha: those two examples are national reaction. one of the things that i think is really at the heart of this debate is what should decide. whether states should pass their own laws for this and that's what is at play in mississippi. the three justices who were appointed by president trump all voted in favor of this today. you had a dissent from justice roberts. anything to be read today that may give us an indication where the mississippi case is going? >> well, martha, i think it looks very positive for that mississippi case based on today's ruling. i don't want to focus on that. i want to focus on what happened today. something that jen psaki just said. we reduced abortions in texas since this law took effect. saving thousands of babies, thousands. so is she celebrating -- is she celebrating the saving of innocent life? doesn't sound like it. sounds like she would prefer the babies not to have been born. we care about mothers that are in crisis pregnancy position. i personally put in the budget $100 million so that we can provide healthcare, diapers, all types of care for mothers that want to put their babies up for adoption. over 100,000 women have taken advantage of that program, this is about life. this is about a heartbeat. in texas, 55% of texans, forget the national polls, support this bill. 59% of hispanic voters support this bill. a large number of african american voters support this bill. so we get back to the basics of what we're talking about here, this decision by the supreme court said hey, this goes back to precedent set by this court for 100 years of states rights and sovereignty, not just wiping away laws. one of the justices said we're not a roving commission to take away laws we don't like. at the heart of this, let's put the legal issues aside. this bill is confirmed to be constitutional and every other state can pass it the supreme court said. it's about innocent life of a baby with a heartbeat and a woman. it's no question it's a life and that baby has a right to live the american dream. this is why it's a great day, martha. >> martha: lieutenant governor dan patrick. thanks very much. we're watching this case and the mississippi decision as well. thanks for being here today. >> thank you, martha. >> martha: you belt. all right. switching gears here. after threats like these -- >> if they think they're going to go back to the old ways of policing, then we're going to take to the streets again. there will be riots. there will be fire, and there will be blood shed. we believe in defending our people. >> martha: i should say he says he's not threatening that. he says that's what he believes will happen if the plain cloths officers come back on the seat in new york. new york city's incoming mayor says they will not surrender, eric adams, to those kind of pressure was. hawk newsome responds here on the story after this. ners. while some banks and lenders are raising their rates newday is holding the line with their two and a quarter refi. that's 2.25%, with an apr of 2.48. this is their lowest rate in history. the newday two and a quarter refi can cut thousands of dollars off your mortgage payments. there's no money out of pocket and no up front costs. lock in your rate. is struggling to manage your type 2 diabetes knocking you out of your zone? 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"we're not going to surrender to those that are saying we're going to burn down new york. not my city." pete hegseth is standing by with his response. first, hawk newsome to respond to that. thanks for being here. when you listen to the words of eric adams and we covered the meeting that you had with him not that long ago, what goes through your mind? what is your response on that? >> the mayor is engaging in a political circus. my parents didn't raise a clown. i'm not here to play the political games with him. i'll say this. the mayor took a trip to africa, which wasn't covered by the press. his appointees wasn't covered by the press. he threw my name out there to get in the media. look what happened after we engaged in this back and forth. he was on colbert, anderson cooper, bill maher. i made him famous for this spat we had. if the mayor cared about what is best for the city, he would talk about the things we agreed upon in the meeting. he didn't want to discuss that, martha. he wants the hype. >> martha: he says he wants to bring this unit back. listen to what he said. he said i was elected. this is what i ran on and i'm going to follow-through on that because that's what the people of new york city asked me to do. watch this. >> i said i was going to reinstitute an anti gun unit and plain clothes. voters voted on that. they will have their body cameras on on every interaction, we'll use precision policing to identify the gang members. we remove the precinct level plain clothes unit. that was a bad decision. >> martha: since that unit was disbanded, we've seen homicides almost double in new york city. he's saying i want a safe city. new yorkers respond to that positively. they want a safe city. they don't want people breaking the windows and stealing stuff and want children safe on the streets. what is wrong with anything that he just said there? >> well, here's the problem. the man does not have a plan. he's about to be the -- >> martha: he does have a plan. he's going to put the anti-crime police unit back on the street? >> you just talked. >> martha: don't do that. i can interject -- you said -- >> let me make a statement. >> martha: go ahead. i let you go on about africa and anderson cooper. go on. >> the things that he's saying, precision policing, focusing on gangs, this is what de blasio said. crime is not just up in new york city. he's the mayor -- >> martha: he's the mayor of new york city. he wants that unit back on the street. i spoke with a new york -- it's my turn now. i spoke with a new york city detective that said to me in june of 2020 -- let's take turns here. i let you answer. let me ask you a new question and then i'm going to let you respond. i spoke with a new york city detective when that unit was debanded. he said mark my words, there will be kids dying, this will be bad. 21 children have been killed in the streets of new york, mostly in gang violence. the purpose of this unit that he wants to put back on the street, this is his plan, was to clean up illegal guns and violence. what is wrong with putting this unit back on the street if it keeps children of new york city and adults safer? >> okay. there's this thing called the constitution. the fourth amendment protects us against illegal search and seizure. >> martha: right. >> secondly, this unit has been responsible for the most high profile deaths in the city. he isn't saying what he's going to do differently. for your journalistic integrity, ask the right question. what is his actual plan? he's just talking and drumming up news stories so that we can get this back and forth going -- between two black men and instead of talking -- >> martha: that's not what that's about. >> it's about feeding people good food, right? you want to talk about us being in the streets? we have a school where we teach kids have to be safe every day. i spent the day looking for a lost 11-year-old. i don't get paid by the city to do this. >> martha: bless you for that. and there's nothing -- that's a good thing. >> just one last thing, martha. one, one last thing. okay? nobody wants our communities to be violent. but there's other ways to do it. he's not saying what he's doing differently. duh, the democrats have been talking about body cams the last four years. people are poor. you just reported that if inflation is up, people don't have money, people are starving -- >> martha: people need to be safe, hawk. they need to know police will have their backs -- >> people need jobs and opportunity. >> martha: absolutely do what you can to keep the kids safe and let the police officers go out and keep those same kids safe because they're dying at the hands of gangs who are doing -- >> you don't know what it's like to be pulled over and thrown up against walls. >> martha: i don't. i cede that to you. >> you don't know what it's like -- >> martha: i'm sorry that happened to you. i am. the fact of -- >> you live from a place of white privilege -- >> martha: don't throw that at me. you know what? i want this whole city of people of every background, faith, color to be safer. what i see on the street is that that not what is happening since this unit was debanded -- >> you see that all over the country. >> martha: we're talking about new york. you care about new york. your black lives matter new york. this is the greatest city in the country where people should be safe. >> i do this in houston and atlanta. i help black people all over the country like a black salvation army. >> martha: good for you. >> what are you doing? i found a lost kid today. what are you doing? >> martha: i said god bless you and i want that child to grow up safely in this city and we don't have the support we need because we diminished the officers and put them in a situation where they can't protect the 11-year-old that you saved today. good for you for the work you're doing about poverty but you have to have both sides. >> even in cities where the police precincts weren't defunded, crime is up. crime is up across the country. >> martha: that's not true. >> police -- it is absolutely true. >> martha: there's a number of factors with that. when you look at the big increases in homicides, what you're saying where police have been diminished in their ability to do their job, nationwide -- >> people are getting robbed on rodeo drive. >> martha: i have to leave it there. we're out of time. i appreciate the work you're doing in poverty. we can have a safe city and take care of the poor. >> can i say one last thing? 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what will covid bring in six months, a year? if you're feeling anxious about the future, you're not alone. calhope offers free covid-19 emotional support. call 833-317-4673, or live chat at calhope.org today. >> martha: we're back after our talk with hawk newsome. joining me now, pete hegseth. obviously he's a very animated person and park it in about what he believes in and he's had a lot of back and forth with incoming mayor about this plain clothes unit being disbanded and now returning. >> first of all, great job handling it and having a forum for that discussion even though he made some disgusting accusations. i lift up larry hoover. he went to prison for murder and ran this murderous gang from prison. he has 200 years in prison. that's who he wants to free, the leader of the gangster disciples. he talked about not wanting to divide. he wears a sweatshirt that says critical race theory is american history. it's marxist history. that's where we start with it. then he says there's no plan. if you listen to what eric adams said a portion of which you played, he said reinstate the plain clothes unit and he looked out at the audience to one of the authors, bill bratten and said your legends may not be done. the broken windows policing that restored peaceful streets to new york city in the 80s under guliani and others might be in our future. that may make him an enemy of black lives matter and the gangs but will make him a hero of every other black citizen, hispanic citizen, republican and democrat in this beautiful and great city that was destroyed by a communist mayor that totally undercut the cops. you see it, breathed and lived it right now in new york city. the reason it's across the country, the argument he wanted to make, because the same das and the same democratic mayors are making the same defund the police moves and bail reforms which are letting the gangsters and the criminals out of jail to commit repeat offenses. so his logic doesn't make sense to begin with. he's dealing in trafficking in grievances and his pointing the fingers at eric adams that ultimately is right to say no one will burn down my streets, nobody will riot and loot and we need businesses to come back, tourists to come back and average people like kid in tough neighborhoods to be safe. if you really care for that, you do everything possible to take out the gangs that are responsible for most of this violence. >> martha: overwhelmingly the murders in new york and we can see the murder numbers have doubled since 2018 are children under the age of 21 mostly in the toughest neighborhoods in new york. those are the kids that are dying. they're the victims of drug gangs, gangs, all of it. so those are the people that need to be protected more than anyone else. eric adams, the stakes are so high for him. he's promised a lot and he has the promise of being someone who i think can make people on both sides of the aisle feel better about living in this city, feel safer. the stakes are high and he will have to follow-through on his plans and it won't be easy. we wish him well across the board. >> sure do. >> martha: as he heads into january 1 when he will take over as mayor. pete, always good to get you to weigh-in. thanks for coming here today. >> thank you, martha. >> martha: breaking right now, the white house pressed on whether the president rushed to judgment in defending jussie smollett now we know his hate crime was a fact. >> the president and vice president tweeted what happened to jussie smollett will not be tolerated. the vice president said it was a modern day lynching. any lessons learned here when rushing to judgment? >> martha: the tweets didn't work well. the response with leo terrell next. moving forward. they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. voya. be confident to and through retirement. >> man: what's my safelite story? my truck...is my livelihood. so when my windshield cracked... the experts at safelite autoglass came right to me... with service i could trust. right, girl? >> singers: ♪ safelite repair, safelite replace. ♪ we've been waiting all year to come together. it worked! happy holidays from lexus. get 1.9% apr financing on the 2022 es 350. ♪♪ veteran homeowners- have you been spending more time at home? imagining the possibilities? on the 2022 es 350. like a bigger kitchen, a swimming pool for the grandkids, or a backyard deck. your va home loan benefit and the newday 100 va loan make it possible. by borrowing up to 100% of your home's value you can take out up to $60,000 or more. with home values at all time highs, now's the time to call. >> martha: the white house said that they respect the decision in the jussie smollett case. he was convicted of five counts of lying to police about being the victim of a hate crime. jacqui heinrich asked if there were any lessons about rushing to judgment. >> there were lessons to be learned including former president trump. i think april ryan -- she just left. he said i can tell you it's horrible. it doesn't get worse in response to her question about the -- about the jussie smollett at the time. >> martha: so let's bring in leo terrell, civil rights attorney and fox news contributor. what are the lessons to be learned in the jury's verdict yesterday in the jussie smollett trial, leo? >> i'll tell you what it is. i'm a civil rights attorney for 30 years. a lot of people gave up their living to create these civil rights laws. jussie smollett exploited those laws for his own personal greed. guess what? joe biden, kamala harris who called it a modern lay lynching, they exploited it for a political purpose. how dare jen psaki throw president trump under the bus? biden, harris, the democratic minutery needs to a model guys along with robin roberts. you cannot equate what jussie smollett said on the tv set, what he said about lying and then go to court and waste taxpayer's money at the expense of chicago that goes through a crime wave every day. it's disingenuous for jussie smollett to take that position. >> martha: think about the resources that were pulled away from the city with the highest homicide rate in the whole country. reminds me of al sharpton and tawanna brawley. that was another hoax case. that was used to promote a narrative and convince people that something had happened that never happened in order to do that. it's cheap. >> martha, there's a game on the left -- let's be clear. they play the race card. it's not every election. it's every day. jussie smollett wanted to use his blackness to play the race card. al sharpton, same thing, race card. when the gig is up, they're lying. to they take responsibility? no. jussie smollett owes america an apology. if he doesn't give that apology, he should be incarcerated for lying on the witness stand, this whole country knows that he lied. >> martha: yeah. do you think he will do time? >> i have my fingers crossed that the judge will give him time if he doesn't acknowledge that he lied on the witness stand. if the judge doesn't do that, it's a misservice. he deserves at least six months in jail for lies on the witness stand. he knows he lied. his attorneys should be held responsible -- >> martha: they say they're going to appeal. 10 seconds. what about the fact that he walked out after being found guilty on five charges? >> shame. he's a convicted felon. he's a convicted felon, kamala harris, joe biden, nancy pelosi. you are supporting a convicted felon and you did not know the facts before you start justifying and calling that this was a race modern day lynching. it's shameful. >> martha: the crazy thing is you know how it works now in the world we live in. if something like this happens and you don't say that you support him, you're oh, why didn't they say anything? they should have said something. that indicates something on its own. it's a crazy cycle. leo, thank you. good to have you here. >> thank you. >> martha: always a dose of common sense that we appreciate around here. that's "the story" of friday, happy friday, everybody. december 10, 2021. have a wonderful weekend. we'll see you back here monday at 3:00. stick around. "your world" is just getting started with neil after this. >> neil: thank you, martha. welcome to that great 80s show where everything old is new again including inflation. it's now running at a 6.8% clip that is the the highest level in four decades. the last time we saw prices running up this fast, ronald reagan was president. e.t. was the top film at the box office. larry holmes was the heavyweight boxing champ of the world. prince charles and lady diana just welcomed their first child, william, to the world. that was then.