New guard of conservative lawmakers discuss the dynamics of the new media with Glenn in D.C.

June 12, 2013

Writer

Some of the biggest names in the cable industry are spending a few days in Washington, D.C. this week for the NCTA's Cable Show. For the last 50+ years, cable television has lead the information and entertainment industry in infrastructure and innovation…but in recent years, this industry has had to adapt to the new leader in innovation: the internet. The 2013 Cable Show, focused on integrating the 'new media' — digital entertainment innovation in the internet ecosystem.

TheBlaze has been ahead of the curve on this transition — starting online to empower our subscribers and just recently beginning to spread into the world of cable television. Tuesday afternoon in the nation's capitol, some of the most prominent names in conservative politics weighted in on the impact and power of the so-called 'new media' at TheBlaze's Cable Show reception and conversation about “News and Politics in a Multi-platform World” hosted by Glenn and TheBlaze with discussions lead by Mary Matalin.

TheBlaze's President of Business Development, Lynne Costantini, opened up the program by highlighting the amazing opportunity TheBlaze has to tap into an audience that is searching for a channel that represents their values. Before handing the mic over to Glenn, Lynne reminded attendees that there are 94 million libertarian and conservative Americans looking for more than just one option for news and information.

"I remember the when we first got cable television in our home," Glenn stated. "It was in the late 1970s and it was a time when the world was changing."

Glenn recalled all of the 'firsts' that came with cable television, and pointed out that we find ourselves in the position of experiencing new things and new technology every day now. Innovation is moving faster than ever before, he noted.

"The game is about to change — and it's about to change on every level."

Glenn noted that there are the people that see the future and the change coming and realize the implications: it could go horribly wrong or it could be amazing. Take the NSA for example…amazing technology that's monitoring law abiding Americans like criminals.

"There will be the people who embrace and create the changes," Glenn said noting Steve Jobs as an excellent example. "And the power grabbers. The ones who are too afraid they'll fail and do whatever they can to hold onto power."

"We [TheBlaze] are the change," Glenn said. "I've worked at CNN, I've worked at Fox — they're both great places to work. They both have a great product," Glenn added. "But there is a change coming. We have to bridge the gap."

"There is something to be said for the communal experience," Glenn continued. "The only thing that unites us now is the Superbowl. How can we go into the cable system and bridge that with technology."

"We're doing it in a way that's never been done before."

Glenn explained that TheBlaze isn't just a growing news and information network, it's a culture…a lifestyle.

"We find the people that are like-minded and want to live their lives in a certain way," he said. "Our audience is difference and we recognize that. Where everyone else is designing for the buck, we don't take a dollar if it's not right for them. I want a lifetime relationship. Find out who the audience is and connect of that."

"Our philosophy is not about politics. Politics are a waste…" Glenn said before apologizing to the audience full of politicians…

"What made us great is not about looking up what we're supposed to do in the regulation book, it's maximum liberty and maximum personal responsibility. The 'give me a chance' attitude — that's all great leaders have asked for," he explained.

Sounds great, right? Pretty simple…but how do Glenn and TheBlaze make that work as a business model?

"We empower the people on the other end."

After Glenn finished speaking, he passed the mic off to Mary Matalin who lead one-on-one discussions with Rep. Marsha Blackburn and Senators Ted Cruz and Mike Lee. Senator Rand Paul also made an appearance. Their discussions were centered around the evolving media and the impact it's having on empowering the average American, and in the case of the NSA leaks, possibly being used against them.

Rep. Marsha Blackburn (R-TN) is a big proponent of new and social media — the tools that have empowered much of the voting base that got her elected.

"The best way to use it is to think of it as the network of you," she told Mary when describing how she uses new media to get a message out.

Blackburn often reminds her staff to think of tools like Twitter and Facebook not just as a way to spread a message, but a way to listen to her constituents and the American people.

"It allows people to keep their attention on the kind of content that interests them — what they want to receive — and from there, build their own network.

"We now have the ability to meet and communicate with people where they are by utilizing the tools that are right in front of us, right at our fingertips. They have option on how they receive information," she added.

Rep. Blackburn also noted the ability of social media to remove the filter between the audience and information — something Matalin pointed out isn't always a good thing, noting the importance of context.

Texas Senator Ted Cruz, highlighted the impact social media has had directly on Washington, making note of several instances where Twitter has had the power to shift the conversation back to the truth. He was reminded to the vital role Twitter played in Senator Paul's 13-hour filibuster on the Senate floors regarding drones.

"I was very proud, nine months ago, to stand side-by-side with Rand Paul," Cruz stated. "Most of our colleagues in the Senate thought what Rand was doing was curious if not quixotic. He began speaking up and talking about the principle…what quickly happened was incredible."

Cruz explained how tens of thousands of Americans got online and started to support Rand in a filibuster, that when it first started, was only viewable online and on C-SPAN. When #StandWithRand started trending, Cruz became the first person in history to read tweets from the American people (or anyone else for that matter) on the Senate floor. The Texas Senator was reminded of one tweet in particular from a 78-year-old woman who had never used Twitter, but got online and signed up so she could publicly support with Senator Paul was doing and stand with him.

"The next day Obama was forced to explain the policy, and polling showed the American people had shifted 50 points in just days," he noted.

The explosion of new media has led to a "phenomenal democratization of information," Cruz added. "Anybody with a cell phone can be Dan Rather — hopefully with a greater propensity for truth."

Cruz also noted that with the recent leaks regarding the NSA and the IRS scandals, that the American people are quite justified in having real concerns and that now is the time to use the tools to put a stop to it.

During Senator Mike Lee's discussion with Mary Matalin and Glenn, he explained how the new media empowering more citizens to get engaged and speak out against an over-bearing government made him optimistic.

"I think our best days are ahead of us," Lee explained, "in part because we are being put in the position of having to resort to federalism.

He explained the unique pattern that the ability to personalize the news and information you receive is having on the monopolized news industry.

"We've had a lot of consolidation in media outlets that give us our news. That fortunately is starting to change. we've got more alternatives out there for people to listen to. When people can have access to the truth and that truth can be checked and cross-checked because of the availability of multiple sources of media, we can all get better answers," Lee noted.

Highlighting Glenn and TheBlaze specifically, Lee continued, "not everyone in the news business has the same attention to detail as Glenn Beck. The more Glenn Becks that are out there — and I hope there will be many one day — the greater the opportunity there will be for people to know the truth. The thing about the American people is they will make the right choice when they are given the opportunity."

Closely tied to the evolution of the media was another popular topic of yesterday's event: the recent leaks regarding the NSA and the IRS targeting of conservative groups. Senator Rand Paul focused heavily on this issue while speaking at the event.

…after a quick parody of Glenn's silent monologue of course…

Senator Paul told the crowd that he plans to take the issue regarding the NSA's surveillance of law-abiding citizens to court to put a stop to the abuse of power. Paul explained the importance of informing the people around us who operate in the digital space that their government is abusing its power.

While all of the guests who joined TheBlaze on Tuesday didn't share the same opinion on the leaks, they all believed what the NSA was doing, if true, was wrong and an abuse of power. They were also quick to highlight that the solution is YOU and your ability to exercise your freedom of speech with new media.

Marsha Blackburn noted that to really solve the problem, conservatives NEED to start whittling away at the size of the federal government.

"They have too much time and money on their hands," she said.

Senator Cruz also noted the answer to government overreach and its growing power is new media.

"The answer is new media and social media — speaking out and education our citizens on liberty."

Mary Matalin wrapped up the discussions by noting the reason Glenn's network model is so amazing: You.

"Glenn's audience understands the need for virtuous citizens," She explained.

She went on to say that this understand the need for there to be MORE virtuous citizens and they're actively involved in spreading that message and the message of TheBlaze. That's what makes TheBlaze different than any other network — you.

Rapper Kendrick Lamar brings white fan onstage to sing with him, but here’s the catch

Matt Winkelmeyer/Getty Images for American Express

Rapper Kendrick Lamar asked a fan to come onstage and sing with him, only to condemn her when she failed to censor all of the song's frequent mentions of the “n-word" while singing along.

“I am so sorry," she apologized when Lamar pointed out that she needed to “bleep" that word. “I'm used to singing it like you wrote it." She was booed at by the crowd of people, many screaming “f*** you" after her mistake.

On Tuesday's show, Pat and Jeffy watched the clip and talked about some of the Twitter reactions.

“This is ridiculous," Pat said. “The situation with this word has become so ludicrous."

BIAS ALERT: MSNBC’s Katy Tur pressures Texas AG to ‘promise’ school safety

Chip Somodevilla/Getty Images

What happened?

MSNBC's Katy Tur didn't bother to hide her pro-gun control bias in an interview with Texas Attorney General Ken Paxton in the wake of the Santa Fe High School killings.

What did she ask?

As Pat pointed out while sitting in for Glenn on today's show, Tur tried to “badger" Paxton into vowing that he would push for a magical fix that will make schools “100 percent safe." She found it “just wild" that the Texas attorney general couldn't promise that schools will ever be completely, totally safe.

“Can you promise kids in Texas today that they're safe to go to school?" Tur pressured Paxton.

“I don't think there's any way to say that we're ever 100 percent safe," the attorney general responded.

What solutions did the AG offer?

“We've got a long way to go," Paxton said. He listed potential solutions to improve school safety, including installing security officers and training administrators and teachers to carry a gun.

Pat's take:

“Unbelievable," Pat said on today's show. “Nobody can promise [100 percent safety]."

OVERREACH: These presidents are the worst ‘executive order offenders’ — here’s why

Every president from George Washington to Donald Trump has issued at least one executive order (with the exception of William Harrison who died just 31 days into his presidency) and yet the U.S. Constitution doesn't even mention executive orders. So how did the use of this legislative loophole become such an accepted part of the job? Well, we can thank Franklin Roosevelt for that.

Back at the chalkboard, Glenn Beck broke down the progression of the executive order over the years and discussed which US Presidents have been the “worst offenders."

“It's hard to judge our worst presidential overreachers on sheer numbers alone," said Glenn. “However, it's not a shock that FDR issued by far the most of any president."

Our first 15 presidents issued a combined total of 143. By comparison, Franklin D. Roosevelt issued 3721, more than twice the next runner up, Woodrow Wilson, at 1803.

“Next to FDR, no other president in our history attempted to reshape so much of American life by decree, until we get to this guy: President Obama," Glenn explained. “He didn't issue 3000, or even 1800; he did 276 executive orders, but it was the power of those orders. He instituted 560 major regulations classified by the Congressional Budget Office as having 'significant economic or social impacts.' That's 50 percent more regulations than George W. Bush's presidency — and remember, everybody thought he was a fascist."

President Obama blamed an obstructionist Congress for forcing him to bypass the legislative process. By executive order, President Obama decreed the U.S. join the Paris Climate Accord, DACA, the Clean Power Plan and transgender restrooms. He also authorized spying in US citizens through section 702 of FISA, used the IRS to target political opponents and ordered military action in Libya without Congressional permission.

All of these changes were accepted by the very people who now condemn President Trump for his use of executive orders — many of which were issued to annul President Obama's executive orders, just as President Obama annulled President Bush's executive orders when he took office … and therein lies the rub with executive orders.

“That's not the way it's supposed to work, nor would we ever want it to be," said Glenn. “We have to have the Constitution and laws need to originate in Congress."

Watch the video above to find out more.

Holding T-bills now pays 30x more than your bank savings account

Sharon McCutcheon/Unsplash

Six months ago, I alerted readers to the very attractive benefits that the TreasuryDirect program offers to investors who are defensively sitting on cash right now.

Since then, those benefits have continued to improve. Substantially.

Back in November, by holding extremely conservative short-term (i.e., 6-months or less) Treasury bills, TreasuryDirect participants were receiving over 16x more in interest payments vs keeping their cash in a standard bank savings account.

Today, they're now receiving over 30 times more. Without having to worry about the risk of a bank "bail-in" or failure.

So if you're holding cash right now and NOT participating in the TreasuryDirect program, do yourself a favor and read on. If you're going to pass on this opportunity, at least make it an 'eyes-wide-open' decision.

Holding Cash (In Treasurys) Now Beats The Market

There are many prudent reasons to hold cash in today's dangerously overvalued financial markets, as we've frequently touted here at PeakProsperity.com.

Well, there's now one more good reason to add to the list: holding cash in short-term Treasurys is now meeting/beating the dividend returns offered by the stock market:

"Cash Is King" Again - 3-Month Bills Yield More Than Stocks (Zero Hedge)

'Reaching for yield' just got a lot easier...
For the first time since February 2008, three-month Treasury bills now have a yield advantage over the S&P; 500 dividend yield (and dramatically lower risk).
Investors can earn a guaranteed 1.90% by holding the 3-month bills or a risky 1.89% holding the S&P; 500...

The longest period of financial repression in history is coming to an end...

And it would appear TINA is dead as there is now an alternative.

And when you look at the total return (dividends + appreciation) of the market since the start of 2018, stocks have returned only marginally better than 3-month Treasurys. Plus, those scant few extra S&P; points have come with a LOT more risk.

Why take it under such dangerously overvalued conditions?

If You Can't Beat 'Em, Join 'Em

In my June report Less Than Zero: How The Fed Killed Saving, I explained how the Federal Reserve's policy of holding interest rates at record lows has decimated savers. Those who simply want to park money somewhere "safe" can't do so without losing money in real terms.

To drive this point home: back in November, the average interest rate being offered in a US bank savings account was an insutling 0.06%. Six months later, nothing has changed:

(Source

That's virtually the same as getting paid 0%. But it's actually worse than that, because once you take inflation into account, the real return on your savings is markedly negative.

And to really get your blood boiling, note that the Federal Reserve has rasied the federal funds rate it pays banks from 1.16% in November to 1.69% in April. Banks are now making nearly 50% more money on the excess reserves they park at the Fed -- but are they passing any of that free profit along to their depositors? No....

This is why knowing about the TreasuryDirect program is so important. It's a way for individual investors savvy enough to understand the game being played to bend some of its rules to their favor and limit the damage they suffer.

Below is an updated version (using today's rates) of my recap of TreasuryDirect, which enables you to get over 30x more interest on your cash savings than your bank will pay you, with lower risk.

TreasuryDirect

For those not already familiar with it, TreasuryDirect is a service offered by the United States Department of the Treasury that allows individual investors to purchase Treasury securities such as T-Bills, notes and bonds directly from the U.S. government.

You purchase these Treasury securities by linking a TreasuryDirect account to your personal bank account. Once linked, you use your cash savings to purchase T-bills, etc from the US Treasury. When the Treasury securities you've purchased mature or are sold, the proceeds are deposited back into your bank account.

So why buy Treasuries rather than keep your cash savings in a bank? Two main reasons:

Much higher return: T-Bills are currently offering an annualized return rate between 1.66-2.04%. Notes and bonds, depending on their duration, are currently offering between 2.6% - 3.1%
Extremely low risk: Your bank can change the interest rate on your savings account at any time -- with Treasury bills, your rate of return is locked in at purchase. Funds in a bank are subject to risks such as a bank bail-in or the insolvency of the FDIC depositor protection program -- while at TreasuryDirect, your funds are being held with the US Treasury, the institution with the lowest default risk in the country for reasons I'll explain more in a moment.

Let's look at a quick example. If you parked $100,000 in the average bank savings account for a full year, you would earn $60 in interest. Let's compare this to the current lowest-yielding TreasuryDirect option: continuously rolling that same $100,000 into 4-week T-Bills for a year:

Day 1: Funds are transferred from your bank account to TreasuryDirect to purchase $100,000 face value of 4-week T-Bills at auction yielding 1.68%
Day 28: the T-Bills mature and the Treasury holds the full $100,000 proceeds in your TreasuryDirect account. Since you've set up the auto-reinvestment option, TreasuryDirect then purchases another $100,000 face value of 4-week T-Bills at the next auction.
Days 29-364: the process repeats every 4 weeks
Day 365: assuming the average yield for T-Bills remained at 1.68%, you will have received $1,680 in interest in total throughout the year from the US Treasury.

$1,680 vs $60. That's a 27x difference in return.

And the comparison only improves if you decide to purchase longer duration (13-week or 26-week) bills instead of the 4-week ones:

Repeating the above example for a year using 13-week bills would yield $1,925. Using 26-week bills would yield $2,085. A lot better (34x better!) than $60.

Opportunity Cost & Default Risk

So what are the downsides to using TreasuryDirect? There aren't many.

The biggest one is opportunity cost. While your money is being held in a T-Bill, it's tied up at the US Treasury. If you suddenly need access to those funds, you have to wait until the bill matures.

But T-Bill durations are short. 4 weeks is not a lot of time to have to wait. (If you think the probability is high you may to need to pull money out of savings sooner than that, you shouldn't be considering the TreasuryDirect program.)

Other than that, TreasuryDirect offers an appealing reduction in risk.

If your bank suddenly closes due to a failure, any funds invested in TreasuryDirect are not in your bank account, so are not subject to being confiscated in a bail-in.

Instead, your money is held as a T-Bill, note or bond, which is essentially an obligation of the US Treasury to pay you in full for the face amount. The US Treasury is the single last entity in the country (and quite possibly, the world) that will ever default on its obligations. Why? Because Treasurys are the mechanism by which money is created in the US. Chapter 8 from The Crash Course explains:

As a result, to preserve its ability to print the money it needs to function, the US government will bring its full force and backing to bear in order to ensure confidence in the market for Treasurys.

Meaning: the US government won't squelch on paying you back the money you lent it. If required, it will just print the money it needs to repay you.

So, How To Get Started?

Usage of TreasuryDirect is quite low among investors today. Many are unaware of the program. Others simply haven't tried it out.

And let's be real: it's crazy that we live in a world where a 1.68-2.09% return now qualifies as an exceptionally high yield on savings. A lot of folks just can't get motivated to take action by rates that low. But that doesn't mean that they shouldn't -- money left on the table is money forfeited.

So, if you're interested in learning more about the TreasuryDirect program, start by visiting their website. Like everything operated by the government, it's pretty 'no frills'; but their FAQ page addresses investors' most common questions.

Before you decide whether or not to fund an account there, be sure to discuss the decision with your professional financial advisor to make sure it fits well with your personal financial situation and goals. (If you're having difficulty finding a good one, consider scheduling a free discussion with PeakProsperity.com's endorsed financial advisor -- who has considerable experience managing TreasuryDirect purchases for many of its clients).

In Part 2: A Primer On How To Use TreasuryDirect, we lay out the step-by-step process for opening, funding and transacting within a TreasuryDirect account. We've created it to be a helpful resource for those self-directed individuals potentially interested in increasing their return on their cash savings in this manner.

Yes, we savers are getting completely abused by our government's policies. So there's some poetic justice in using the government's own financing instruments to slightly lessen the sting of the whip.

Click here to read Part 2 of this report (free executive summary, enrollment required for full access)

NOTE: PeakProsperity.com does not have any business relationship with the TreasuryDirect program. Nor is anything in the article above to be taken as an offer of personal financial advice. As mentioned, discuss any decision to participate in TreasuryDirect with your professional financial advisor before taking action.

Glenn's Show Prep