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Nov. 4, 2022 - The Charlie Kirk Show
33:14
Biden's $90 Trillion Price Tag with Brian Riedl and Gen. Paul Vallely
Transcriber: nvidia/parakeet-tdt-0.6b-v2, sat-12l-sm, and large-v3-turbo
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Vote Charlie Kirk Show 00:01:38
Hey everybody, today's Charlie Kirk Show.
Email me your thoughts as always, freedom at charliekirk.com.
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We talk about the debt, the deficit, Social Security, and Medicare, and also woke is in the military with some phenomenal guests.
Get involved with TurningPointUSA Today at tpusa.com, tpusa.com.
As always, you can email me your thoughts, freedom at charliekirk.com.
That is freedom at charliekirk.com.
We are hours away from the midterm elections.
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Just sit on your couch right now, press pause on the podcast, and text 10, 20, 30, 40, 50 of your friends and say, hey, I think you should vote on Tuesday.
You should vote Republican.
You should vote for Kerry Lake.
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You should vote for.
And just text through the entire list.
Text, text, text, text.
Email me your thoughts as always, freedom at charliekirk.com.
Subscribe to the Charlie Kirk Show podcast.
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Buckle up, everybody.
Here we go.
Charlie, what you've done is incredible here.
Maybe Charlie Kirk is on the college campus.
I want you to know we are lucky to have Charlie Kirk.
Charlie Kirk's running the White House, folks.
I want to thank Charlie.
He's an incredible guy.
His spirit, his love of this country, he's done an amazing job building one of the most powerful youth organizations ever created.
Turning point USA.
We will not embrace the ideas that have destroyed countries, destroyed lives, and we are going to fight for freedom on campuses across the country.
Trillion Dollar Deficit Crisis 00:10:53
That's why we are here.
Brought to you by the Loan Experts I Trust, Andrew and Todd at Sierra Pacific Mortgage at AndrewandTodd.com.
Joining us now is someone who's very smart, and he is from the Manhattan Institute on budget and deficits.
And boy, is there a lot of topic?
It's a huge topic there.
It's Brian Rydel.
Apologies if I mispronounce that name, senior fellow at the Manhattan Institute.
Brian, welcome back to the Charlie Kirk Show.
Glad to be here.
Thanks, Charlie.
Okay, so talk about the, I mean, I'm a big deficit hawk.
I'm a debt hawk.
I actually think deficits and debts matter.
I know I'm old-fashioned in that way.
It's been my most unpopular policy crusade ever, and most unsuccessful policy crusade, I should say, but that's fine because I talk about it a lot and people just roll their eyes.
But this is a massive issue.
I mean, we're talking about the destruction of our currency, our national security.
Walk our audience through the enormity of this issue.
Thanks, Charlie.
I think people don't fully recognize what's about to hit us right now with deficits and debt.
President Biden said he's going to reduce deficits.
He's actually signed legislation adding $4.8 trillion to 10-year deficits already.
So we're already looking at deficits that are going to be heading back towards $2 trillion by the end of the decade.
The 30-year numbers are scarier.
The Congressional Budget Office projects $114 trillion in deficits over the next 30 years, $114 trillion.
And that assumes no spending hikes.
It assumes the Trump tax cuts expire, no wars, no recessions.
And most importantly, it assumes interest rates don't rise.
And as you know, interest rates have been drastically rising.
So we are looking at debt levels that could get so high that we, I mean, it'll be nothing we've seen anywhere else.
Again, we're looking at over $100 trillion in baseline deficits over the next three decades.
And so in deficits or in cumulative debt?
The total debt will rise by $114 trillion as a result of that much deficit, that much new borrowing.
So the debt right now is about 30 trillion.
It's heading to about 145 trillion over the next three decades, which kind of sounds like monopoly money.
It does.
Yeah.
And so this is all interconnected, by the way.
So people say, well, how does that impact me?
Okay, so your price at the pump, groceries.
It actually is directly tied together with the purchasing power of your dollar.
Because if the Federal Reserve or the masters of the economy, masters of the universe, they look at the balance sheet and they say, well, we have a couple of ways we can handle a $30 trillion debt.
We can cut spending.
They're certainly not going to do that.
They could raise taxes, which they'll do a little bit of, but you can't raise enough taxes to compensate for that.
Or they can inflate their way out of the debt, which is the scariest, but quite honestly, the most realistic or the thing we should expect the most.
What is inflating your way out of having a big debt look like?
We've seen it in other countries, and it has disastrous results.
You're exactly right.
At a certain point, the debt gets so big that you would have to double all taxes or eviscerate all spending.
And lawmakers aren't going to want to do that.
So what they'll do is what's called fiscal dominance.
They will direct the Federal Reserve to keep interest rates low so the government can borrow cheap.
The way the Federal Reserve keeps interest rates low, they're going to turn on the printing press in that situation.
And you can, the inflation can go through the roof.
I mean, we've all seen the Weimar Republic, people with cash and wheelbarrows.
I'm not necessarily saying it'll be that bad, but I'm saying inflation is not a free lunch.
It actually will make things worse in this situation.
Yeah.
And so we're left in a set of circumstances where if our leaders don't actually make prudent fiscal decisions and balance the budget, or I mean, we're not going to have a balanced budget in the near future, but at least get this under control.
I mean, you could talk about a currency reset.
You could talk about the mass elimination of wealth, because then you have such a disconnect between actual asset prices and the amount of dollar bills.
So no one actually knows what anything is worth because everything is, I mean, there was this story in the 1970s when we had mass inflation where, you know, you used to go buy feed, you know, if you're a rancher, and literally they would cross out prices on the feed bags because over a week, because they couldn't keep up with the inflation so quickly.
So talk just more, just expand on this more.
The reckless deficit spending that our regime has been focused on in both political parties the last 20 years is finally materializing in Americans' pocketbooks.
Yeah, exactly.
I mean, it's 20 to 30 years of not caring at all about deficits is catching up to us.
And this is the result of Republicans and Democrats.
Mainly, it's actually driven by Social Security and Medicare.
The Social Security and Medicare systems are going to run $116 trillion shortfall over the next 30 years.
That's basically the entire deficit.
And so if we don't reform that, you have huge deficits, which can lead to huge inflation if we try to monetize it.
But here's something even scarier.
Interest rates are rising.
And that number I told you about $114 trillion over 30 years, that assumes low interest rates.
And here's a scary statistic.
Every percentage point that interest rates will rise for the government is going to add $30 trillion in interest costs over 30 years.
So these numbers assume 4% interest rates.
If interest rates instead settle at 5%, it's not going to be $114 trillion.
It's going to be $144 trillion over 30 years.
Again, the numbers are too big to comprehend, which is why we have to make sure this doesn't happen.
Yeah, no kidding.
So, what are some of the actual fiscal reforms that could be entertained to do this?
Because I hear from politicians, it's impossible.
We can't do this.
What are actually some of the policy proposals that can go about actually getting this under control?
First step, stop digging.
Stop the spending spree.
President Biden's $4.8 trillion in 10-year costs.
I think there's a lot of low-hanging fruit.
People talk about waste, fraud, and abuse.
That can help.
It's not going to save enough money.
People talk about pulling back funding for Ukraine, foreign aid.
None of those are going to make enough of a difference.
Additionally, when the left says tax the rich or cut defense, you can tax the rich 100% and zero out the Pentagon.
It ain't going to come close.
Ultimately, you have to reform Social Security and Medicare because, as I said, the entire long-term deficit is because the Social Security and Medicare systems are going to run $116 trillion shortfall.
We're not saying kick people off Social Security and Medicare, but we're going to have to look at raising the eligibility age, slightly trimming benefits for people at the top.
You can protect people at the bottom, but you can't continue the Social Security and Medicare systems at their current rate because there's not enough spending to cut or taxes to hike outside of that system.
If we move now, we can do it gradually and not hit poor seniors, or we can wait 10 years and have to do something drastic to people who've already retired.
Yeah, and that's, it also takes political will, though, as well, right?
I mean, we've had these debates for a while, and it just doesn't seem to be happening.
It's the metaphorical kicking the can down the road, generational theft and all of that.
But it has civilizational implications all the way across the board.
And then you're going to have stagnant economic growth because of this, too, right?
Yeah, well, exactly.
When the deficit gets this big, it raises interest rates, which means your taxes go up to pay more interest on the debt, and there's less business investment.
There's fewer home loans.
There's fewer car loans because the government is soaking up all the savings and spending it themselves.
But, you know, you hit on an important point of how hard it is to have a national conversation on this.
Because if you turn on Twitter or listen to the president for five minutes, he is completely panicking that some Republicans have said we probably need to take a look at Social Security and Medicare before they go bankrupt.
Sounds pretty basic, but these programs are heading towards bankruptcy.
If we want to preserve them, we should take a look at them.
And instead, you have the Lincoln Project running ads saying Republicans are going to eliminate Social Security and Medicare and kick off seniors in January.
This is why we can't have a nice rational conversation on this because the president and his allies are demagoguing it.
Yeah, and it's so, I mean, it's just robbery of future generations if you can't have a conversation on how to balance budgets and all this.
And then we bail out the blue states that have recklessly borrowed money for years.
It's just terrible.
Charlie Kirk here.
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We're getting a lot of different emails here.
I just want to say one thing.
We had an email here from a great listener, Kim.
She said, leave our social security benefits alone.
I think that's exactly right.
I think what we're talking about is potentially future conversations and changes to make it solvent and to make it there for future generations.
But don't want to misinterpret what we are, what we're saying here.
Okay.
I want to welcome Brian back to the program.
Brian, so we kind of look at these issues here.
Global Inflation Phenomenon Explained 00:04:06
What's so interesting is that for every dollar you have to spend servicing the debt is a dollar you can't spend on something else, which hilariously left-wingers should be really worried about, right?
Because they want to fund all these different things.
But what percentage of our budget will be spent actually just servicing the debt, not even paying the principal, just the interest?
Yeah, the interest is rising right now as interest rates rise.
Right now, it's about 10% of all federal spending, but it's going to get a lot worse.
Let me throw some scary numbers.
Even if you just assume the baseline, a couple decades from now, you'll be paying half of your taxes will be going to interest on the debt.
If interest rates rise one more point, two-thirds of your taxes will pay interest on the debt.
And if interest rates rise two points, 100% of your taxes will be paying interest on the debt.
It's going to become within a couple, within about two decades, the single biggest part of the entire federal budget.
And again, even that's under low interest rates, because when you have that much debt, it doesn't take much of an interest rate rise to push the cost through the roof.
Yeah, that's exactly right.
Okay, I want to play a piece of tape here, cut 81 and get your reaction to it.
Play cut 81.
No one's ever reduced the debt that much.
We cut the federal debt in half.
Okay, so he keeps on saying this.
Now, he hasn't cut the debt at all.
There's a difference between debts and deficits, but that's kind of like saying, you know, I really started to, I ate five Whoppers for the last six months and now I only eat two and a half.
Well, it's like, okay, wait, you increased up to five and now you're at two and a half.
That doesn't, you've increased it and then you get to take credit for cutting it.
Yeah, what the president did, this is amazingly cynical.
He pushed up the 2021 deficit with the huge American Rescue Plan.
It was a $1.9 trillion bill to push the deficit way back up, well over $2.5 trillion.
And then when his own spending bill expired the next year, he patted himself on the back for deficit reduction.
Let's look at this realistically.
This year's deficit that just ended was 40% higher than what the deficit was before the pandemic.
So if you ignore the pandemic spending, which spiked up and then spiked back down, we're still 40% higher than we were before the pandemic.
And he's patting himself on the back as a deficit reducer.
It's absurd.
It really is.
Cut 107, Nancy Pelosi says that inflation is a global phenomenon.
It has nothing to do with our own fiscal policy.
Play Cut 107.
The fact is, is that when I hear people talk about inflation, as I heard them there, we have to change that subject.
Inflation is a global phenomenon.
It's not, the fight is not about inflation.
It's about the cost of living.
And so, yeah, I don't even know how to make sense of that, but America willingly contributed to spending six or seven trillion dollars unnecessarily.
Is that right?
Yeah, inflation is a global phenomenon in part because a lot of other countries made the same mistake we did.
But inflation, the inflation has been worse in the United States because of policies like the American Rescue Plan, like the tariffs, the Buy America provisions, the oil and gas limitations, the rest of the runaway spending, the ethanol mandates, and on and on.
And don't listen to me.
The Federal Reserve of San Francisco did a study that said the American Rescue Plan alone added three percentage points to the inflation rate.
Yes.
That's not me.
That's the Federal Reserve saying that.
And that doesn't count the infrastructure bill.
It doesn't count all this other stuff on top of the baseline of an overly inflated federal budget.
Yeah, exactly.
When we already had supply constrained because of the pandemic, we already had supply constraints.
Adding $1.9 trillion of new demand when there's no supply is economic malpractice.
Of course, it was going to drive inflation.
Threats Against This Country 00:14:44
Brian Riedel, thank you so much.
Really appreciate it.
Manhattan Institute does terrific work, especially on crime.
I love what you guys publish every year on crime.
It's super important.
Thanks for the great commentary.
Appreciate it.
Thanks, Charlie.
Thank you.
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I've known Paul Valley for a while.
He's a great American.
I got to tell you, he has the standupamericaus.org.
In fact, Paul hosted me in the beautiful flathead region, Kalispell, Montana, right before the lockdowns.
Paul, do you remember that?
That we had that big event?
Well, I do.
And it was the largest event in the United States with almost 600 people that we had.
And after that, within 24 hours, it's like the whole country shut down.
That's right.
The events or gatherings.
Yeah, factual.
It was the largest thing.
No one was doing anything.
And we were in Montana.
We said, hey, we might as well organize and gather.
So, Paul, you got a lot of things that you could talk about.
I want to just kind of share a concern I have.
You're retired Major General, great American patriot.
You've done a lot of great things for America, and thank you for that.
But I'm very worried about our military readiness.
This is one of my concerns about us bumbling into a proxy war in Ukraine: I just don't trust our people in charge.
Paul, is that a fair thing to believe to say that our military is not properly being led, equipped, or ready for a kinetic conflict against a major power?
Charlie, I think that's an understatement.
Retention is down considerably, re-enlistments, the troops downline.
They understand what's going on with these woke generals and admirals like General Milley and the other others who have bought into this.
And so they're more concerned about equity, diversity training, CRT critical race theory training.
And it's permeated, Charlie, all the way down to the academies, West Point, Coast Guard Academy, Annapolis, Air Force Academy.
And so it's real.
It's very real.
And I get an update almost every day on the military, but we have got to remove almost all of these generals because they came in under the Obama cloak when Obama basically purged 120 senior officers.
So the officers you see now were colonels then.
Now they're generals and they're all Obama followers.
And so there's a dilemma.
I get this question asked all the time, Paul, and I'd love your wisdom on it.
I don't have a good answer.
Where young men, 17, 18 years old and their families come up to me and they want to serve America.
And they say, Charlie, should I?
And it's hard for me to answer because I don't want them.
I don't want to deter them from service to America.
I think it's honorable and heroic to have duty to your nation.
At the same time, I don't feel confident to send some of these young men into the current apparatus that is the United States military, which is just becoming a social experiment.
What advice would you give to them?
What's your response to that, Paul?
We have to restore it, Charlie, and we have to have new leadership.
That's why a new president selecting new generals and admirals who go by the code duty honor and country, which we learned at West Point, as you know, and have taken their oath.
And they have basically subjugated themselves to inferior set of officers.
And that was the hallmark of that was the surrender in Afghanistan.
The troops saw this.
They understood what these generals and admirals were doing and not doing.
And so we have a restoration, a reconstruction, a renewal, just like our Constitution and our government.
We've got to restore it, Charlie.
That's the only way.
There's too many threats against this country.
Yeah, no kidding.
And so, I mean, right now we have a lot of people that are wondering whether or not to enlist or what to do while they're within it.
And so it really does come down to the president, doesn't it?
Is there a role Congress going to have in the meantime if we take back the House and the Senate?
Well, we do have about four representatives in Congress and the Senate who are going to do investigations into the continued vaccine of our troops, where we have found a tremendous amount of illness and even deaths within the military.
And so from that standpoint, we have set up a legal support fund for the troops.
But this mandatory vaccine and everything, these young, healthy people don't want it and they're being forced to do it, which is a violation, in my opinion, the Nuremberg Codes of 1947.
Totally.
Yes.
I mean, it just is infuriating to me where you take the most masculine, the most dedicated, the most courageous population, and they're the ones that you have to force an experimental shot on.
I mean, I got to be honest, it's one of the most maddening issues that just really hadn't got the hearing it deserved.
Do you agree?
No, it doesn't.
That's why we've got Congressman Waltz and a number of others that will be conducting immediate hearings in the halls of Congress.
But they've got to put enough pressure on the administration to back off.
Let's strengthen our armed forces.
Let's recruit.
And there's a lack of patriotism now, Charlie.
Another thing in the country.
A lot of parents don't even want their children, young men and women, to go into the military.
So there's a lot of different effects on what the status of the military in readiness is right now.
Yeah, no kidding.
I mean, it is widespread and it's a serious threat.
And part of this is the wokeism stuff that's within it.
I mean, and just explain to us, though, Paul, how does someone like Mark Milley get in charge of the armed forces?
He seems to be more, he seems to be closer to a university president or a college professor than the head of the greatest fighting force the world has ever known.
Can you just speak to a little bit of how these hyper-ideological academics have found their way into the United States military?
It's very confusing to a lot of people.
Yeah, well, Milley's a Princeton graduate.
That's all I'm going to do.
Well, there you go.
That tells you what you need to know.
He's not a West Point graduate, but Gordon Austin's a West Point graduate.
So when you go back, even to the Clinton years when they started politicizing the promotions of generals at the Pentagon, we then go up all through the way to Obama, which I had mentioned earlier, purged almost 120 senior officers.
Purse and right out, these were colonels on the bottom.
And so what happened now, you had these majors, lieutenant colonels who got promoted under Obama.
That's when they started getting this locism.
Of course, locism wasn't the term used back then, but they started becoming hydrologs.
It's Marxism, is what it is.
It's Marxism.
Exactly.
Yeah, camouflaged as social justice or racial justice.
But Paul, you deserve credit.
When I first met you about 10 years ago at David Horatz Freedom Center, David's a great American patriot.
I love him.
I hope to see you next week too, Paul, if you're coming down to the event.
I remember you came up to me and you grabbed my arm and you said there are Marxists in our military and in our government.
And you were right.
It is widespread and it really just blows people away that you would think the military would be the one place that this stuff wouldn't be able to get a hearing.
Well, they're concerned about promotions.
They're concerned about will they get a job in the defense industry?
Even the defense industry contract crackers are following this locism and mandatory vaccine.
So it's all connected.
So it's what we'll call go along and get along, Charlie.
And that's what they're doing.
We haven't had one general yet stand up to be counted.
We've had lieutenant colonels like Lieutenant Colonel Lohmeyer and a few others, Teresa Long, out of the Army, flight surgeon, but none of the senior officers, not a full colonel or above or admiral, have stood up against this.
Not one.
Yes.
And so let's focus on foreign interference.
So a report came out that Mark Milley got on the phone and gave the Chinese Communist Party military leadership.
Again, this story didn't get anywhere near the coverage that it deserved.
He gave them a heads up saying, hey, just so you know, we're not going to attack you.
Or if we are, I'll give you a call.
Something like that.
You could fill in the details.
I'm drawing from memory here.
How is that not treason against the United States?
It is treason.
Aiding and abetting an enemy.
Aiding by giving him information that I'll have your backside if our president makes a decision to attack not Taiwan, but China in any way.
And so that's aiding and abetting the enemy.
It's treason.
And he needs to be charged with treason.
And then his compatriots that follow along also.
But time will tell.
They're going to get their due someday, Charlie.
Believe me.
I mean, they need to.
I mean, this is.
I mean, how significant is the infiltration of foreign powers into our military?
Big time.
And they get in through the gates of the defense contractors, the big companies.
Look at all the Wall Street companies that are listed now, Raytheon, for example, and others.
So they come in the back door.
They also get into our schools, into our campuses.
And there you have what, ROTC going on, Air Force, ROTC, Navy.
So they've infiltrated all of those levels within our government and within our educational system.
We even have come up with some intel that they've infiltrated the academies to some degree.
So it's real, this infiltration.
But let me give you one aside here.
Please do.
Let's talk about, if you let me just talk about the border.
I wrote the plan for the Pentagon to take down the cartels.
I asked the Pentagon, give me your plan for neutralizing the cartels.
because it's a national security problem, just not a homeland security.
None of them, they don't even have a plan to take out the cartels, but yeah, we're pouring billions into Ukraine.
Figure that out.
I mean, it's unbelievable.
And actually, Paul, I've never talked to you about the Ukrainian issue.
My thoughts are well publicized.
I think we're making a mistake by sending money there, especially to our great leadership.
Do you agree with that?
Oh, I agree 100%.
If Trump was there, it would have never happened in the negotiated with Putin.
I'm now working on a group to represent the United States to call a ceasefire in Ukraine.
And we're working on that behind the scenes now.
I got word that Putin will.
He'll keep the four provinces and Crimea, but he's willing to sit down and stop this.
But he wants somebody from the Biden government to step up and meet with him in Vienna.
Yeah, but I actually think the Biden government wants this to continue.
It pays the bills of Raytheon, Lockheed Martin, Northrop Grumman, and Boeing.
Paul, tell us about your book and also give, send, go.
This is the second book on what we call Endgame.
Our first book with General McMahon, myself, and General McInerney was Endgame Blueprint for Victory for Defeating Terrorism.
This one is the Blueprint for Victory, Restoring America.
And the whole first chapter is dedicated to the spiritual awakening of America.
We have to have that as a basis before we can move forward and restore the country and constitution.
But this lays it all out.
America's Endgame for the 21st Century.
I love that.
It's so important.
And so people can find that book just in stores or, I mean, in Amazon or whatever.
That's on Amazon.
I have three books on there.
The other one is Reality Prism and The Mindless War, the Information Warfare Program.
The Mindless War and Reality Prism, the two other books I have out now.
So let's get to a, I want to talk about the midterms here, Paul.
What do you think is the kind of major message of the midterms when it comes to some of these things we're talking about here?
Charlie, I'm going to break something to you that I just got this morning from our intelligence group.
The word is the Democrats are going to go full aisle out on exercising Hammer and Scorecard, which is a cybersecurity platform that Obama sold to the Chinese, and they're going to go full force on it.
We understand they used it in Brazil last week.
So don't assume that this red wave is going to go down nice and sharp.
They're going to do everything to cheat and to cause a cyber attack on some of these polling stations, just like they did in 2020.
So be alert for that.
We'll see what happens.
So let me ask you, though, do you think that having people show up in person is a way to help overwhelm the system?
Absolutely.
And is that the only way to do that?
I think it is.
That's what we need to do.
One day, everybody goes and votes.
These mail-in ballots, I mean, we have them in Montana here.
They're fairly secure.
But when you have ballot harvesting going on, then that just lays out the whole carpet for cheating and fraudulent voting.
And so just I just pray that everybody's doing their job at the precincts, Charlie, and we're on top of everything, realizing there's going to be a big attack on the day of the election by the Demons.
You're going to do everything they can to pull it out.
So you got to show up and make sure you use a paper ballot in person, right?
Trending Right Direction 00:01:50
Is that correct?
That's correct.
Okay.
Well, let's play a piece of tape here.
Very important.
And I want to play this one right here.
Let's go to cut 20.
Digging deeper here, we've got some all-time midterm highs that should serve as red flags for the Democrats.
The wrong track, 71%, all-time midterm high since we've been polling.
How about presidential approved disapproval on the economy sitting at 57%?
Again, we hadn't recorded that ever that high in our poll.
And the third one, the direction of the economy.
In the next year, is it going to get better or worse?
50% say it's going to get worse again.
An all-time high in midterm polling.
So it looks like it's trending in the right direction.
Your thoughts, Paul?
It absolutely is.
And it's a clean election as best we can do it.
It will be a red wave.
But you know, Charlie, that's just the beginning when we take the House and Senate.
I say constitutional patriots taking the House and Senate.
Now, what are you going to do with Biden?
Biden is, he's promised to come out and said, well, whatever the Republicans do, I'm going to veto it.
But I understand also there's a move to have Kamala Harris step down.
She's going to be paid big bucks to do it.
They're going to move somebody in as VP and then pull Biden down after the election.
So those are some of the scenarios out there we're watching very carefully.
Very, very important.
How about that?
Yeah.
Well, Paul, thank you so much for your time.
God bless you, man.
See you next week.
Okay.
Thanks, Charlie.
Thanks.
Thanks so much for listening, everybody.
Email me your thoughts as always, freedom at charliekirk.com.
Thank you so much for listening.
God bless.
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