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Sept. 22, 2022 - The Ben Shapiro Show
43:52
Here Comes The Pain | Ep. 1580
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Time Text
The Federal Reserve hikes interest rates again as Jerome Powell warns of economic pain to come.
Democrats refuse to accept culpability for their role in the economic downturn, continuing to promote unicorn rainbow economics.
And New York Attorney General Letitia James goes after Donald Trump.
I'm Ben Shapiro.
This is the Ben Shapiro Show.
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Slash Ben will get to all the news in just one moment.
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Well, as was widely expected, the Fed Chairman Jerome Powell announced yesterday a 75 basis point increase in the interest rates is 0.75 percentage points raising.
The target range to somewhere between 3 to 3.25%.
According to the UK Daily Mail, the Federal Reserve has issued another supersized increase to interest rates in a move intended to fight inflation, which deepens the risk of a sharp economic downturn and job losses.
At the end of its two-day policy meeting on Wednesday, the U.S.
Central Bank raised its policy rate 75 basis points for the third time to a range of 3 to 3.25%.
That is the highest level since the 2008 financial crisis.
It is going to go higher as well.
The Fed is attempting to cool down the economy in order to tame rampant inflation which remains stubbornly high at 8.3% as interest rates climb.
The path to a so-called soft landing is narrowing.
Economists are increasingly projecting a hard landing, marked by a sharp increase in unemployment.
Fed Chair Jerome Powell admitted on Wednesday that achieving a soft landing will be very challenging.
He had a lot of bad news for the markets yesterday, which is why you saw stocks slide some 500 points yesterday.
According to the Wall Street Journal, UF stocks finished sharply lower after the Federal Reserve said it would raise interest rates again and signaled the need for further rate increases in the months ahead.
Trading was volatile on Wednesday.
Stocks were up throughout the morning and then they dropped shortly after the Fed's announcement.
I gotta say, the animal instincts of the stock market are really something incredible to watch.
I think it's very optimistic.
Right before Jerome Powell speaks, then he speaks and boom, there's a stock market decrease.
It is amazing to watch all of this happen in real time if you watch a split scream of Jerome Powell talking.
And then, The stock market on the other side, you can see that essentially one guy or at least a few people at the Federal Reserve are now controlling the entire future of the American economy.
This is not how it was supposed to work.
Economic policymaking was supposed to be done by the legislature and by the president.
Instead, this is a bipartisan issue.
They've delegated all monetary policy over to the Federal Reserve and fiscal and economic policy is all done through the Federal Reserve.
The Federal Reserve originally was supposed to be the last resort.
And when things were going really wrong, you need the Federal Reserve to inject some liquidity into the economy.
That's when you go to them.
Things are going really wrong with inflation.
You need the Federal Reserve to tamp down the inflation rate by increasing those interest rates.
Instead, president after president has basically delegated out the problem of economic growth To the Federal Reserve, and that means that when they run out of tools, things get very, very ugly.
This is why during COVID, the Federal Reserve basically used the only tool left in its arsenal, went to 0% interest rates in an attempt to spur the economy.
And again, because economic policymaking was done incredibly poorly at the legislative level for the next several years, the result was rampant inflation.
And now they have to go back to the Federal Reserve and ask for them to tamp all of that down.
So Jerome Powell yesterday announced that, by the way, it's not just a problem of inflation in the moment.
We are looking at a well below median estimate of longer run normal growth rate.
So what he means is that the economy is now going to slow for the foreseeable future.
I mean, he's basically just announcing this straight out, which is kind of amazing.
As shown in our summary of economic projections, since June, FOMC participants have marked down their projections for economic activity, with the median projection for real GDP growth standing at just 0.2 percent this year and 1.2 percent next year, well below the median estimate of the longer-run normal growth rate.
I mean, look at the stock market, right?
As he's speaking, you can see that it goes from in the green to boom in the red, because what he is saying is something that pretty much everybody knew, but apparently they only believe it when Jerome Powell says it.
Now, Joe Biden had estimated when he came into office that even without this massive inflationary spiral, there would be low growth rates for the foreseeable future.
He had estimated there'd be below 2% GDP growth for the next decade, essentially.
Now, Jerome Powell is saying it's going to come in even below that, and we have to do that in order to tamp down all of this inflation.
Powell said that.
He said, reducing inflation requires below-trend growth.
We have to do that because otherwise the prices are going to continue to spiral out of control.
You're seeing some countries, by the way, taking the opposite view.
Turkey, for example, is actually pumping money into an inflated economy, which is a stupid economic move.
As we'll see, there's some Democrats who are actually advocating for just that.
Here's Jerome Powell, acknowledging the obvious.
There are costs to the monetary and fiscal policy that you actually implement.
There are costs to this thing.
When you generate outsized bills, eventually somebody has to pay up.
The predicate of so much democratic policy for years has been modern monetary theory.
They haven't said it out loud.
Elizabeth Warren kind of has, but they really haven't said it out loud.
But the idea was we can just borrow and borrow and borrow and spend and spend and spend and inject liquidity and liquidity and liquidity.
And this is going to be a good thing.
Ezra Klein famously in one of his columns lamented the fact that why is it that we have to have a high inflation?
I mean, we're pumping so much money into the economy and what it's doing is it's really helping people at the lower end.
Well, actually, inflation Really hurts people at the lower end.
It turns out that monetary stability is a generally good thing because monetary stability allows for predictability, it allows for investment, it allows for innovation, which is something that the left really doesn't understand.
For some reason, they hate capital.
Okay, there are only two forces in human history that have actually generated serious prosperity.
Capital and innovation.
The combination of capital and innovation is everything.
All the other stuff, right?
The institutions of stable property, very important predicate.
But that's existed in a lot of places at a lot of times.
The idea that if you own property, you retain ownership of that property and it's freely alienatable.
That has existed in a lot of places at a lot of times.
What has changed over the last couple of hundred years, which is why you see the exponential growth of global economic change.
The reason for that is because there is a realization, particularly in European and American and European offshoot countries, That capital and innovation are everything.
The left, however, has suddenly decided that capital is really bad, not suddenly, really since Marx, has said that capital is bad.
And so really, the idea that there should be private capital in private hands that leads to innovation is bad.
What you really need to do is suck money out of that private economy and then blast it out via leaf blower.
And blast it out wide to the generalized economy on the demand side rather than on the supply side.
And this is going to help the economy and no one will ever have to foot the bill for any of that.
And that, of course, is just nonsense.
It's not true.
Here's Jerome Powell saying that when you have inflation this high, you're going to have to raise interest rates.
And that's going to mean below trend growth, because, again, liquidity starts to dry up, right?
If you can't borrow money as easily from the banks in order to just spend it on random stuff, well, that means that there's going to be less economic growth in the near term.
It's sort of a consolidating point.
Now, I will say this to everybody who's in the investment markets right now.
My personal strategy when it comes to investment, economic downturns are where people get rich.
And when the economy is hot, everybody's doing decently.
It's when the economy downturns.
If you have savings, over the next couple of years, I'm not saying you buy right at this moment, over the next couple of years, is going to be a very good time to buy up assets because four or five years from now, there will be growth rates that more than make up for buying the assets during the next couple of years.
I mean, this is my investment strategy.
When markets go down, that is the time to buy.
When markets go up, that is the time to sell.
It's not all that difficult, but it's very difficult to resist the trends of public thinking.
In any case, here's Jerome Powell announcing the obvious.
There are costs to this sort of monetary and fiscal policy.
Reducing inflation is likely to require a sustained period of below-trend growth.
And there will very likely be some softening of labor market conditions.
Restoring price stability is essential to set the stage for achieving maximum employment and stable prices over the longer run.
We will keep at it until we're confident the job is done.
So, I mean, I will say this for Jerome Powell.
He really, really botched COVID.
He blew way too much money into the economy and then he left the interest rates at zero for far too long.
He was really late on the ball on this one.
But at least he's now taking the actual realistic view that Paul Volcker would have taken, which is you need to raise the interest rates and crush the inflation in order to make room for future growth.
Democrats, obviously, are going to panic about this because What it means is that we are going to have very slow growth, if any, for the next couple of years leading up to the 2024 election, which is very scary for a lot of Democrats, including the current president of the United States.
Jerome Powell yesterday said, the pain is coming, man.
There is no way to do this without pain, pretending that there could be a fully soft landing where no one gets hurt.
Again, when you blow out the credit cards at some point, you're going to have to pay them off.
If we want to set ourselves up, really light the way to another period of a very strong labor market, we have got to get inflation behind us.
I wish there were a painless way to do that.
There isn't.
So what we need to do is get rates up to the point where we're putting meaningful downward pressure on inflation.
And that's what we're doing.
He is correct about this.
Now, this is Larry Summers, the former Treasury Secretary under Bill Clinton, the guy who was predicting that there would be a massive inflation spike in the aftermath of 2020-2021.
He says, well, you know what this means?
It means there's a downturn coming.
So again, Larry Summers is the oracle of the obvious at this point.
Here we go.
We are almost certainly going to see a downturn in the economy from where we are right now.
And clear-eyed realism about that is the most important thing for credibility and for the best possible outcome, given the inflation that has been allowed to build.
Well, increasingly, as we've been saying for a while here, everybody who understands basic econ understands that what Summers is saying there is right.
And this, of course, includes the heads of the largest banks in the United States.
According to The Wall Street Journal, the heads of those banks expressed concerns about the state of the U.S.
economy, warning about the risks of high inflation and rising interest rates.
Facing questions from House lawmakers on Wednesday, Bank Chief Executives, including JPMorgan Chase, Diamond, Jamie Diamond, and Citigroup's Jane Frazier offered a favorable picture of an industry they say helped the economy recover from a pandemic-induced recession while showing uncertainty about the future.
Bank CEOs also answered questions about federal regulations and brushed off GOP pushback to a credit and debit card code that identifies purchases made at firearms stores Diamond said competing forces are affecting the economy.
They include strong consumer spending and plentiful job openings amid high inflation, disrupted supply chains, war in Ukraine, and declining consumer confidence.
He said it's difficult to accurately predict whether the Federal Reserve will succeed in achieving a soft landing in which inflation moderates with only a mild decline in economic activity.
He said, because of the war in Ukraine and the uncertainty that causes in global energy supply and food supply, there's a chance it could be worse.
Asked later about the Fed's ability to avoid a hard landing time and said, I'm keeping my fingers crossed.
Well, that's never a good sign when you are keeping your fingers crossed.
And again, what we are watching by the end of the year, there will be a rate shift in the upward direction.
By the end of the year, you're looking at interest rates from the Federal Reserve that are somewhere between 4.25 and 4.5 percent at a minimum.
My guess is you're probably going to have to be in the 5% range to completely crush inflation at this point.
Well, there are a lot of people on the left who are really hot and bothered about this.
They're very upset because this is sort of a frequent feature of left-wing thinking about economics.
They do a thing, the consequences of the thing materialize, and then they're very angry that reality exists.
Remember this happened with Obamacare.
Obamacare passed.
And then there were places, restaurants, stores, that started putting an Obamacare tax note on their receipts.
So restaurants would say, you know, we now have to pay more money.
So you're going to have to pay more money.
And they would put this at the bottom of receipts.
And people got very, very angry at these restaurants.
How dare they say the obvious?
How dare they point out that these costs are passed on to the consumer?
Well, it's the same thing now with the Democrats looking at what Jerome Powell and the Federal Reserve are doing.
So Elizabeth Warren, who is far too smart for this, but has decided to fully embrace the socialistic Bernie Sanders perspective on monetary policy.
She's one of the chief proponents of modern monetary theory, which of course is the lie that you can continue to spend until the end of time with no consequences whatsoever.
She tweeted out, the Federal Reserve's Chair, Pat Powell, just announced another extreme interest rate hike while forecasting higher unemployment. I love how extreme has just become code for things I don't like. For the Democrats.
If you're a Republican, you're an extreme MAGA member.
And Jerome Powell is now doing extreme rate hikes.
Okay, just to put this in perspective, Paul Volcker, in order to crush inflation, has actually put the interest rates at about 20%.
So being at like 4%, which is what it might be by the end of the year, that is still a historically fairly low interest rate.
Elizabeth Warren says, I've been warning that Chair Powell's Fed would throw millions of Americans out of work, and I fear he's already on the path to doing so.
So again, it's well, well, well, here are the consequences of my own actions, but they never actually accept those consequences.
It's Powell's fault.
So you propose a theory whereby we blow money into the economy with a fire hose, and then when the predictable happens, inflation, and then when you have to tamp down that inflation, it's Powell's fault.
Elizabeth Warren presumably would like to continue to blow money into the economy.
Because after all, why not?
What's the problem?
I mean, one problem is that we have year-on-year inflation in the food markets of like 13.5%.
You're paying a lot more this year for food than you were.
We still have.
Residual inflation in the energy markets, yes.
Oil is coming down, but it's still way more expensive than it was one year ago.
But Elizabeth Warren, again, the theory is more important to her than the fact.
And so she's just going to ignore the pain that the people at the lowest end of the spectrum, right?
The people who actually are affected by food inflation are incurring.
Instead, she's going to say that all the future unemployment that is to come is not the result of short-sighted bad policy that she has promoted.
Instead, it's the fault of the big fat cats at the top.
Well, when you promote a policy and then it actually happens, it's your fault when the consequences arise.
Another person who is just refusing to acknowledge reality is of course the anti-Semite Rashida Tlaib.
Democrat of Michigan.
Yesterday, she made the comment that progressives literally cannot be pro-Israel, which may be descriptively true, but it should not be normatively true.
Anyway, Rashida Tlaib, she had a bit of a tete-a-tete with several of these bank CEOs, in which she simply declared that all of these banks should stop investing in fossil fuels, like all fossil fuel development, which is unbelievably stupid.
She gets her ass handed to her by Jamie Dimon.
Please answer with a simple yes or no.
Does your bank have a policy against funding new oil and gas products?
Mr. Diamond.
Absolutely not.
And that would be the road to hell for America.
Well, yeah.
Yeah.
I mean, that's that's correct.
Again, what Jamie Dimon is saying right there is what corporations should actually take into account and financial institutions, right?
They've all been engrossing themselves in this idiotic ESG proposal, particularly in the energy markets.
I mean, to shift over from fossil fuels to green energy, even if it doesn't make any sense economically speaking, even if it is Fiscally inefficient, we should do that anyway.
Jamie Dimon is saying what actually pretty much everybody should be saying if you have a brain, which is right now in a sinking economy with Vladimir Putin cutting off the oil and natural gas to Europe.
Now would be an excellent time to ramp up fossil fuel production.
If you want to see developing countries actually develop, they're going to need access to fossil fuels.
They don't need Teslas.
And the fact is that, by the way, if you want to power your Tesla, listen, I love Tesla.
I just bought one.
If you want to power your Tesla, you still have to plug that into the electric grid.
What do you think that electric grid runs on?
It's not running just on wind and solar.
So when Jamie Dimon says to Rashida Tlaib, the road to hell for the American economy would be to completely disconnect from the realities of how energy is produced, he is, of course, right.
But this makes Rashida Tlaib mad.
And just like in the Obamacare case, when you do a policy and then it has bad ramifications, you get mad at reality.
By the way, arguing with reality is a general rule.
It turns out it's a road to unhappiness.
This is true whether we are talking about their personal life or whether we are talking about energy markets.
Reality exists.
Pretending it doesn't exist is a very stupid move.
But we have moved into a realm just philosophically in the West where we've spent the last couple of centuries bucking historical trends.
We've bucked the Malthusian trend.
Theory of Thomas Malthus, that basically resource constrictions would prevent population from rising too much.
The idea was sort of like deer.
If you have too many deer on an island, they eat all the resources, then many of the deer have to die in order to allow the resources to regrow.
That was the trend in human economics for literally a couple thousand years.
And we bucked those trends beginning in about 1800.
And so now we think we can buck every trend.
Every rule of reality no longer exists.
They are all changeable and fungible.
That really is not true.
Those rules of reality still exist unless you come up with some massive innovation that works.
Rashida Tlaib isn't imposing any massive innovation that works.
Neither is Elizabeth Warren.
It has been true for literally ever that if you just print money, it doesn't work.
Printing money doesn't actually change the underlying value of the goods and services that are being traded.
All it does is increase their price because you're just printing money.
I mean, it's just more pieces of paper that you're exchanging for one another.
And the same thing is true in the energy markets.
Rashida Tlaib screaming at oil wells is not going to change the economics of oil.
The United States deciding to blast trillions of dollars into green boondoggles that simply are not energy efficient is not going to change the math here.
The incentive for innovation in the energy space is still the greatest incentive in human history.
I mean, right now, imagine that somebody could actually create a source of green energy that was cheaper and more efficient than fuel, oil, natural gas, coal.
Imagine that were the case.
If that were the case, don't you think that there would be a lot of money going into that already?
Don't you think that banks would be investing in that?
Because if you win that race, you make more money than has ever been seen in human history.
But again, the idea here is that reality must be ignored.
We can break every rule, and we get angry at the rules.
I'm not even talking about man-made rules.
I'm talking about you get angry at actual just reality.
You get angry that oil and natural gas is more efficient than wind and solar.
It just is.
I'm sorry.
Until you come up with some innovation, that's the way it is.
And you actually don't need massive trillion dollar government incentives in order to do that.
Because as it turns out, you win that race, you make a lot of money.
The market incentives already exist for that sort of thing.
It's just that the science doesn't exist for that sort of thing yet.
And the same thing holds true for the left.
Everything from energy markets to transgenderism.
The idea is that reality itself is bad.
We can violate all the rules of reality.
And if anybody mentions that those rules exist, if anyone mentions that reality exists, we get unbelievably, unbelievably angry at them.
So that's what happened right there.
Rashida Tlaib is saying to Jamie Townsend, what if we just disinvest from all fossil fuels?
He's like, that's idiotic.
You're going to destroy the economy.
And as we'll see in just a moment, Rashida Tlaib's response to that is, I'm very angry at reality.
What if I just yell at Jamie Dimon?
What if people take their money out of Jamie Dimon's business?
Okay, fine.
You want to do it?
There will be another predictable reality meeting you, which is that JP Morgan will continue to make money and you will not because you will have taken your money out of JP Morgan.
Because again, reality still exists.
I root for reality.
I like reality.
I think reality is a good thing.
It tethers us to an actual world that exists in the here and now.
Tethering yourself to utopia means that you have to run roughshod over everything and everybody Who actually lives in that real world?
We'll get to more in just one second.
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So here's Rashida Tlaib after being just destroyed by Jamie Dimon publicly, saying people should close their JP Morgan accounts because you don't agree with me that reality can just change randomly.
Sir, you know what?
Everybody that got relief from student loans has a bank account with your bank should probably take out their account and close their account.
The fact that you're not even there to help relieve many of the folks that are in debt, extreme debt because of student loan debt, and you're out there criticizing it.
That's amazing.
So you should take your money out of JP Morgan because, what, we're not relieving student loan debt?
So again, fiscal irresponsibility is an actual ideological cause for people like Rashida Tlaib and Elizabeth Warren.
It's something that they love.
It's something that they want.
And it's all predicated on just falsehoods and lies.
Another person who is greatly enmeshed in this is, of course, the irrepressibly stupid Alexandra Ocasio-Cortez.
She has been portrayed as a leader of her party.
She's on the cover of GQ, which means, of course, that she is a great and just leader, despite the fact that she knows fewer things than this pen.
This inanimate object knows more things than AOC does, by far.
It's not close.
At least the pen is useful in some way.
Here is AOC explaining that capitalism is why people can't have kids.
Well, I mean, one thing that I did notice is the global population growth after the advent of capitalism.
Also, if we're talking about why people aren't having kids, I noticed that she's a communist and has no kids.
So here is AOC.
There are quite a few countries that are really struggling because young people, under the burdens of capitalism and living under a society that's increasingly concentrating wealth among the rich, we're not having kids.
Or we're not having kids at the same rate.
We actually need immigrant populations to help balance things out.
We can't continue to fund Social Security, Medicare, all of this stuff without immigrants.
And it's always been that way.
Don't act like this is some new trend or anything like that.
Well, maybe what she just said contradicted the first part.
When she says that the welfare state is actually undermining reproduction, that's correct.
The welfare state is undermining reproduction.
If you actually look at the statistics, Cuba right now has a fertility rate of 1.6 below replacement rate levels.
It turns out that it's not really rooted in economic system.
It's rooted in economic development.
So as people develop more economically, as richer countries get richer, people tend to have fewer kids.
There's a reason for that.
In poor countries, there are several reasons to have kids.
Let's be real about this.
There are only a few reasons that you have kids in life.
And one is you feel a religious responsibility to have kids.
That's why my wife and I have several of them.
And with the help of God, we'll have more.
That's one reason.
And so you see that heavily religious countries, lots of kids, right?
That's why religious Catholics have lots of kids.
Religious Jews have lots of kids.
They put aside countries, just more religious people have more kids.
That is one reason to have kids.
The second reason that a lot of people have kids is poverty.
If you have a lot of kids and you are enmeshed in poverty, your kids are workers.
They are labor.
This is why in poor countries, you have seven kids, because three of them will die in childhood.
And the other four are going to be people who work their farm.
It's why historically speaking, people had lots of kids.
Many of those kids did not actually survive.
And so that's why you see in very poor countries now, people having a lot more kids and having kids a lot earlier.
And then there's the reason that you just enjoy kids.
And the truth is that in the West, a lot of people have decided they don't like kids.
People like David Hogg, the former Parkland kid, who is now at Harvard for no reason other than he was unfortunately present when there was a mass school shooting.
David Hogg tweeted out what I think, honestly, I made fun of him for it, but I think it's actually sort of indicative of where many young people are.
He said, you'd rather have a portion of Portuguese water dog than a kid.
Which, Sounds like a lot of blue city liberals right now.
I mean, ask AOC why she's not having kids.
She's a communist.
She's actually a rich communist.
So obviously the fact that she makes a fair bit of money, and her husband apparently also makes a fair bit of money, hasn't prevented her from avoiding having children.
If we're going to talk, by the way, about economic systems that allow for the population to grow, capitalism is the only system that has allowed for serious population growth over time.
If you look at world population growth, This is from our world in data.
Basically, in 1700, there were 600 million people on planet Earth.
In 1800, there were 1 billion people on planet Earth, which is very slow incremental growth over the course of time.
By the year 1900, that had doubled.
There were now 2 billion people on planet Earth.
And then, from 1900, which is the advent of free markets globally, to about 1960, you see a massive spike in the population.
By 1960, you're talking about like 4 billion people on Earth.
From 2 billion in 1928.
And now you're talking about 11 billion people on earth.
And now you can see actually that the rate of change in terms of birth rate globally begins to decline after about 1965, 1964.
I wonder why.
Could that be the advent of the welfare state in the West?
And the receding of free markets, that could have something to do with it.
It could also have to do with religious decline.
It could have to do with increased prosperity.
There are a bunch of reasons, but blaming capitalism for lowering global birth is really, really silly, considering the only thing that has disconnected human beings from a Malthusian trap, as Gregory Clark, economist from UC San Diego, has said, the only thing that disconnects people from that Malthusian trap is prosperity.
It is increased life expectancy.
It is childhood survival rates.
That is all connected to capitalism.
But again, blame capitalism for everything because you've produced nothing is sort of the AOC motto here.
Meanwhile, the Biden administration continues to double down on idiotic economic policy.
Joe Biden, yesterday, he was speaking at the United Nations, the most eyesleeve international politics, a wretched hive of scum and villainy.
We should blow that thing up and salt the earth with it.
We should salt the earth where it once stood.
It is the worst institution in international life, the United Nations.
Any institution that has, as part of the Human Rights Council, places like China and Sudan, demonstrates its own unfeasibility and foolishness.
So here was Joe Biden speaking.
It always is a weird thing to me that the backdrop for whenever people speak there is apparently the bathroom of the Macy's.
If you look at the wall behind whoever is speaking at the UN, not Joe Biden's fault, obviously.
They put like this green tile behind whoever is speaking and it's really hideous.
Just an aesthetic point to match the generalized point that the place is in fact a bathroom.
It is a giant urinal of humanity.
Here is Joe Biden speaking there and explaining that what we really have to do here in the West and globally, we have to double down on zero emissions vehicles.
Again, I like zero emissions vehicles.
I have one.
It took a year for it to arrive, but it's pretty great.
However, I will also point out I have to plug it into a wall, and the electric grid is not zero emissions.
Here's Joe Biden.
We've led with bold climate agenda.
We rejoined the Paris Agreement, convened the major climate summits, helped deliver critical agreements on the COP26.
We helped get two-thirds of the world GDP on track to limit warming to 1.5 degrees Celsius.
And now, I've signed a historic piece of legislation here in the United States that includes the biggest, most important climate commitment we have ever made in the history of our country.
$369 billion toward climate change.
That includes tens of billions in new investments in offshore wind and solar, doubling down on zero emission vehicles, increasing energy efficiency, supporting clean manufacturing, Man, that is a lot of mashed potatoes coming out of that face right there.
Listening to him basically speak one long word.
There are no gaps between the words anymore because he's not capable of that.
And so when he speaks about economic policy and his first thing is, I just spent $400 billion on offshore wind and solar and the like.
That's pretty amazing stuff.
He says, well, we don't have much time.
We're living in a climate crisis.
Again, when you decide that you're going to Follow this economic policy, you can't then be surprised when the results are rising energy prices and energy shortages and all the rest, which is precisely what has happened in places like California and Germany, as we'll discuss in a second.
Here is Joe Biden from that bathroom at the Macy's.
Our investments will also help reduce the cost of developing clean energy technologies worldwide, not just in the United States.
This is a global game changer.
And none too soon, we don't have much time.
We all know we're already living in a climate crisis.
No one seems to doubt it after this past year.
Well, I mean, I doubt it.
I think a lot of people don't understand why.
Was this last year like the most people who have ever died from climate induced disasters?
I missed it.
Or was this year kind of like all the other years and that there were some bad climate events?
And some people died.
And it's way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, way, As California suffered through an epic heat wave this month, state officials pled with residents to conserve electricity.
Almost simultaneously, power grid operators were rejecting thousands of megawatts of solar and wind energy that could have provided a cushion to get through the crisis.
The explanation illustrates one of the paradoxes confronting California as it rushes to transition to a clean energy economy.
The state has built up so much renewable energy production in recent years, it can rarely use it all during peak production hours.
But it also doesn't have enough storage capacity to hang on to it when it might be needed.
It turns out that you don't have the batteries to hold on to all the power from the sun and the wind.
And so when you actually need it, when the sun ain't shining like at night, this is why you have to turn your air conditioner off at night in California, because the sun ain't out.
The result is that officials are frequently forced to jettison solar power production while the sun is shining, just hours before customer demand peaks in the late afternoon and evening.
The same thing happens to a lesser extent with wind energy, the issue is surfacing in multiple other states as well.
Meanwhile, over in Europe, the fact is that a huge percentage of their power is still fossil fuel based.
Apparently, over in Germany, some 30% of all of their energy is being driven by coal.
Dirty, horrible, no good, very bad coal.
Meanwhile, you have Joe Biden out there saying that we're going to invest hundreds of billions, maybe trillions of dollars in this stuff in the middle of an inflationary cycle where we have energy supply shortages.
That's not the only bad economic policy Joe Biden is pursuing.
He's also pushing a global minimum tax on corporations.
The idea here is that we really, really want to tax people a lot here in the United States.
What if we create a taxation cartel?
What if all the other countries taxed at the same rate?
So that way we still have a competitive advantage over the other countries because we have fewer regulations than many European countries in terms of starting a business.
But we can tax you at 15% because they're taxing you at 15%.
There's only one problem with this theory.
Someone is not going to do it and someone is going to reap the benefits.
If you are Singapore, or if you're Ireland, or if you're just an up-and-coming country like Hungary or Israel, and you decide that you wish to lower your corporate income tax rate to 10% and provide incentives for people to invest, you will drink America's milkshake.
This is why Joe Biden requires the cartel.
He requires a taxation cartel.
Here he was yesterday pushing that.
With partners in the Americas, Africa, Europe, and the Middle East, and the Indo-Pacific, we're working to build a new economic ecosystem.
Well, we're every nation.
Every nation gets a fair shot.
And economic growth is resilient, sustainable, and shared.
That's why the United States is championed of global minimum tax.
And we will work to see it implemented so major corporations pay their fair share everywhere.
Everywhere.
It's the corporations that are... Okay, I'm just going to point out, if you have global minimum tax of 15%, what do you think happens to prices?
Do you think they go up or down?
Basic econ lesson.
If you increase the costs that a business must pay, do you think the prices to consumers are going to go up or down in the middle of an inflationary spiral?
None of this is particularly surprising coming from a man who is deeply confused.
Yesterday, Joe Biden did another event at the Global Fund, and he literally started walking off stage.
He did not know where he was.
He looks like John Travolta in Pulp Fiction, just wandering around a room not knowing what's going on.
This is, I'm sorry, it's embarrassing.
There are lots of reasons for people to have been embarrassed over their presidents over the course of the last couple of decades, but it is quite embarrassing that the President of the United States, who is pushing for world-changing utopianism, is in fact a senility-ridden elderly gentleman.
It really is not great.
Where am I going?
Is there a ghost?
Do I turn around?
I'm staggering.
Do I stay here?
I can barely walk.
Somebody's talking to me from the other end.
Oh!
There's someone talking to me!
Is it God?
I'm gonna stand here.
I don't know what to do.
Still turning around.
Still trying to... Still talking to me?
Am I supposed to stand here?
I don't know what to do.
Still turning around, still trying to...
Still talking to me?
Am I supposed to stand here?
Do I go out to the...
I don't know.
By the way, this guy, just gonna point out, Kareem Shampir, his own press secretary, remember on Sunday, Joe Biden said COVID is over.
Remember that?
Well, Kareem Jean-Pierre was asked about Joe Biden saying that since the entire administration was like, no, Joe, don't do that.
Oh, no.
And the reason they're very upset is because Joe Biden used COVID as the hook for the student loan bailout.
He said, because of COVID, everybody needs to have their student loans rambadooshed.
And then he's like, but also COVID doesn't exist.
Oh no, Joe!
What did you do?
So his entire administration ran out there screaming and waving their hands around to try and distract.
Well no, Joe didn't mean that.
What he really meant is that COVID is ongoing.
So Corinne Jean-Pierre was asked about that, and being wildly untalented as she is, she answered on MSNBC, that Joe didn't mean that.
He was distracted by shiny immobile cars.
I'm not kidding.
This is their answer.
This is their answer to the incompetence of the President of the United States.
The President of the United States is like a small child who is distracted by bubbles at the preschool.
The president also, in the 60 Minutes interview, said that the pandemic is over.
There's been quite a bit of pushback.
Just to step back for a second, what we saw during that interview, 60 Minute interview, when he made those comments, he was walking through the Detroit car show, the halls of the Detroit car show, and he was looking around.
We have to remember the last time that they had held that event was three years ago.
Even as we're talking about UNGA, the president's going to speak shortly, as I just mentioned.
That hasn't been held in person for about three years as well.
So we are in a different time.
He's been very consistent about that.
And the reason why is because we are now prepared.
We are now ready.
We know how to deal with this pandemic.
Joe Biden was walking through an empty room where nothing was happening, but there were cars.
And we know Joe Biden.
That dude loves shiny objects.
And it's amazing.
He's like a dog with squirrels.
You put him in a room with anything that has a bit of chrome on it, and he's just like, COVID's over.
Genius stuff.
Probably should let these geniuses run the global economy, probably.
That's the best thing that we should probably do.
When Harry's Razors pulled the tabs from our site, we decided to fight fire with fire.
That's how Jeremy's Razors was born.
Truthfully, sticking it to a woke company is its own reward.
But now we're taking it to a whole new level with the Jeremy's Razors contest for the car.
So you remember that commercial that Jeremy did where he was driving around a McLaren 600 LT?
You remember that?
You can win that car.
Here's how it works.
For every person you refer, whether they buy a Jeremy's Razor kit or a Daily Wire annual membership, you get points in the race to win the God King's McLaren.
That's right.
You might win a car that goes from zero to like 180,000 miles an hour in about three seconds.
Someone in this audience has the fortitude to win this thing.
It would make my day if you did.
To sign up, go to jeremysrazors.com slash play.
I promise you, this is the last time we're going to be giving away an object that is worth probably a quarter million dollars.
We're not going to be doing that very often.
The competition for the car ends November 1st, 2022.
Get started today.
See terms and conditions for complete details at jeremysrazors.com slash referral terms.
The program is open only to legal U.S.
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D.C., excluding residents of Colorado, Connecticut, Maryland, Puerto Rico, and U.S.
territories and possessions 18 and older.
Remember.
Friends don't let friends shave with woke razors.
Also, my book club, Ben Shapiro's book club, it's back tonight for a new episode, 8 p.m.
Eastern on dailywireplus.com.
This month's book is All the King's Men by Robert Penn Warren.
The best political novel of all time.
Great novel about America and the meaning of politics.
You have to be an All Access member to join in on the fun.
So head on over to dailywireplus.com.
Become a member today.
Join us tonight at 8 p.m.
Eastern.
Okay, so as Joe Biden wobbles around, one of the people who has been most rumored on the Democratic side of the aisle to be throwing his hat in the ring is Gavin Newsom.
There's only one problem for Gavin Newsom, right?
The governor of California.
He's very bad at governing.
People have been fleeing his state en masse.
I know because I'm one of the people who fled his state.
We took our company, which then had something like 90 employees.
Now we have 300 employees over in Nashville, Tennessee.
Those would all be employees paying taxes in California if it weren't for somebody like Gavin Newsom.
I took my immediate family.
I took my in-laws.
I took my parents.
I took two of my sisters.
And pretty much everybody moved to Florida.
But Gavin Newsom, again, refusing to acknowledge the roots of reality, his own bad policy.
Here he was yesterday in what has to be one of the best examples of political gaslighting I've ever seen.
He's asked about why so many people and companies are leaving California.
And he's like, well, it's probably because of immigration policy from Trump.
I didn't cross the border at any point.
I was born in California.
I spent nearly my entire life in California.
So no, that would be a no on that, Gavin Newsom.
Here we go.
Are more people leaving California for Texas or leaving Texas for California?
Well, we lost about 182,000 folks in the last... How do you explain that against the backdrop of those very remarkable statistics you just cited?
Many factors, and there's been too deep analysis that drives the number one factor.
The vast majority, almost the entire amount, impacted because of visa policies in the Trump administration.
I mean, our formula for success is getting first round draft choices around the rest of the world.
I mean, we're as dumb as we want to be.
This whole damn border debate is made up.
The border debate is made up, he says, as two million people cross the southern border.
Also, people did not leave.
I'm one of the people who left.
Business people are not leaving California because of visa policies from Trump.
Those are national policies.
Why would that disproportionately affect California such that businesses are relocating from San Francisco to Austin, Texas?
He has no explanation for this.
The real reason, of course, is because he's run the state into the ground, not just Gavin Newsom.
And blaming Gavin Newsom uniquely would be foolish.
It's the California legislature.
It's Governor Jerry Brown.
It's been decades of bad governance from California.
The latest example, of course, is the energy policy in California.
The editorial board over the Wall Street Journal points out, as if California doesn't have enough wildfire hazards, its drive to banish fossil fuels from the electric grid is creating another.
On Tuesday, a Tesla battery at a utility storage site in Monterey County caught fire, triggering the shutdown of the state's scenic coastal highway and shelter-in-place warnings for local residents.
California utilities have been installing large scale batteries to back up renewables and provide power when the sun goes down, as we've been talking about here.
But now we're learning that batteries have their own reliability problems.
It's not clear how utility PG&E's enormous 182.5 megawatt Tesla battery caught fire on Tuesday, but the site had to be disconnected from the grid.
The PG&E facility is located adjacent to another 400 megawatt battery storage site, which has experienced two overheating incidents in the past year that forced part of the system to shut down.
Lithium-ion battery fires are notoriously hard to extinguish because they burn at extremely high temperatures and produce dangerous fumes.
Hence Tuesday's warning by Monterey County officials asking residents to please shut your windows and turn off your ventilation systems.
They are turning California into the land of biblical plagues as opposed to perhaps the most beautiful place on planet Earth.
The larger point is there is no free lunch in producing energy, says the Wall Street Journal.
All sources have costs and carry risks.
The difference is that while climate lobbyists and the media fret about oil spills, gas leaks, and nuclear meltdowns, they ignore the very real costs and risks of renewables.
But again, that's the point.
Ignore reality until reality can't be ignored anymore, and then yell at reality.
That's the apparent strategy.
And blame it on somebody else.
So, again, well done to Gavin Newsom and the Democratic Party.
There's only one group of people who are responsible for the current economic predicament we're about to find ourselves in for the next several years.
It is the people in power, and the election is a-coming.
Alrighty, guys, the rest of the show is continuing right now.
You're not going to want to miss it.
We'll be getting into Letitia James, Attorney General of New York, going after Donald Trump.
Plus, Nikki Haley, former U.S.
Ambassador to the United Nations, stops by to rip on The View.
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