Texas AG: Price Gouging Is 'Like Porn, You Know It When You See It'

Texas Attorney General Ken Paxton joined Thursday’s “The Glenn Beck Radio Program” to talk about Texans’ “remarkable” response to Tropical Storm Harvey as well as the politics of price gouging.

“Overall, it’s been a remarkable effort,” Paxton said. “Any loss of life is horrible, but it’s been amazingly low given the magnitude and the length of this storm.”

Texas Gov. Greg Abbott and state and federal officials have worked together to mitigate damage from the storm and make sure stranded people are rescued. They have been joined by volunteers from around the country.

“This is the toughest time in my lifetime,” Glenn Beck said. “I’ve never seen our country more divided. And look at what the people of Texas [are doing] coming from all over the region just to go in and help.”

There will be some fluctuation for the price of water, gasoline and other necessities simply because the storm has shut down the country’s biggest oil refinery, reducing how much gas is available to use and to transport goods.

“Gas will go up to some degree,” Paxton said. “Supply and demand is going to be affected here.”

While some expense is normal, an unreasonable increase to products that the government defines as price gouging is against the law.

“Do you remember when the Supreme Court had to deal with pornography, and they basically said, 'We know it when we see it?'  When I see gas prices at $20 a gallon, I know it’s price gouging. When I saw water at $100 a case, I know it’s price gouging,” Paxton said. “When I see gas at $2.57, it’s probably not price gouging.”

Based on historic price and context from the current market, officials use discretion to keep people from being ripped off, he asserted.

“We’re not talking about price gouging as it relates to anything other than things that really are critical to people surviving,” Paxton said.

This article provided courtesy of TheBlaze.

GLENN: Lots to talk about today. First, I don't know what it's like in your part of the country, but here in Texas, I think there's going to be a lot of people that are late for work. Because anybody who got up this morning and was driving in and saw the little red light go on and went, "Uh-oh, I got to go get gas," you are now sitting in a line. And that line is getting longer. We could be out of gas in Texas by the -- by the weekend.

Ninety percent of all of the gasoline that fuels the cars at least in Texas -- and I bet it's the greater southwest region, comes out of Houston. Forty-two percent of all of the jet fuel comes out of Houston. Those refineries are now gone, or at least shut down.

We don't know when they will start refining again and when trucks will be replenishing again. This is going to affect all of us. We just have to keep our heads about us. And we also have to discuss, how are we going to get some of the -- how is this going to affect the people who are just getting on the road with their trucks and their cars, and they're going to help?

You can't really drive down to Houston, four hours away, if you can't get gas somewhere along the way to get you back.

We've had another wrinkle added now to the hurricane in Houston. We begin there and also talk a little about price gouging with the attorney general in Texas. Ken Paxton joins us. We begin, right now.

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GLENN: This is a really weird situation because the -- the -- if I warn you about gas, it's going to make people go and sit in lines and everybody starts to hoard gas. And I got to get my lawn mower filled. It's probably not the right move.

But I warn you now because I want you to think about this weekend. This is Labor Day Weekend. Especially if you're in the -- in the Dallas area or the Texas area, we get our gas from those refineries.

JEFFY: Yeah, but nobody has to worry until after this program is over.

GLENN: Right.

JEFFY: Then it's fine. Once I go fill up my car, after the show, then -- then they can worry.

GLENN: Right. Well, we got the tweet from a guy in New York just a little while ago that said -- what was it? It went up 17 cents in an hour, or half an hour?

STU: Yeah, another person writes: Gas here in Cincinnati went up 2.23 to 2.59 in the day.

GLENN: I mean, you know, it's going to impact all of us, this hurricane. It's going to impact us hard. But those oil refineries -- it's my understanding, these oil refineries were locked down tight. We didn't have a problem with winds, just flooding. And it's my understanding that, you know, this can and will come back online as soon as the waters recede. And they're going to start those plants back up. Is that your understanding, Stu? Not really?

STU: Yeah. I'm not...

GLENN: Can we get? Keith! Let's see if we can get somebody on from the oil industry. I know they're probably not busy at all, but to give us some information about these oil refineries. And perhaps Ken Paxton knows a little about this, even though this is not his area of expertise. He is our attorney general.

Ken, how are you, sir?

KEN: I'm doing well. How are you this morning?

GLENN: I'm good. Thank you for all of the hard work, and please pass on to the governor how proud we are of him and what a good job he is doing.

KEN: You know, I would have to totally agree. The magnitude of the storm and what they've had to deal with over a long period of time, and obviously still continues. I'm amazed, the job that both the federal and state government have done working together.

GLENN: You know, I know that there was a disagreement -- and I -- I would have been on the wrong side of this disagreement, I think. And I don't know who had what side, and it doesn't matter.

But there was a disagreement on when to evacuate people. And I think the city of Houston said, "No, no, we're not going to evacuate." Which in New Orleans, worked out horribly.

The way this is stacking up, it might have been a blessing that we didn't have a whole bunch of people, a million people on the road, stuck in traffic on Houston when this thing rolled in.

KEN: Yeah, it's so hard to know. Because you've got 7 million people or more down in the Houston area. And to try to evacuate that -- we're not talking about evacuating some small town. We're talking about a massive effort. I don't even know how you get that many people out.

So I don't know, maybe some could have evacuated. We could look at that later.

I do think overall, it's been a remarkable effort. And if you look at loss of life, obviously any loss of life is horrible, but it's been amazingly low, given the magnitude and the length of this storm and what we're still dealing with.

GLENN: I have to tell you, I can't get my arms around how low those numbers are.

Are we concerned that when the waters recede, we're going to just start going through homes, and we're just going to find a lot of people, or are we pretty sure that this is relatively stable? I mean, we know we're going to find a lot more people, but that we haven't lost an eye-bleed amount of people, is astonishing.

KEN: Yeah. You just think about the magnitude of the storm coming to shore, we could have lost hundreds, if not thousands of people. And who knows what the future holds and what we're going to find. I can just say, I think they've done an amazing job rescuing people. They've gotten resources in place.

The federal government was there early and quick and offered up everything we needed. And Abbott and his team have done an amazing job, just keeping this thing going and making sure that we get this thing done right.

GLENN: I will tell you that this is where -- you know, having the governor and the -- and the president and everybody on board come in handy as now cleanup and real big, huge infrastructure pieces need to be moved.

But I have been -- it is -- it is proof to me why I moved here five or six years ago, when I said on the air, "There are going to be tough times, and you just have to know that the people around you have the same kind of attitude, that when push comes to shove, we're all neighbors."

I mean, we've never been -- I don't remember the 1960s. I was like four.

KEN: Me too.

GLENN: But I know those were tough times in our -- in my lifetime. This is the toughest time in my lifetime. I've never seen our country more divided. And look at the people of Texas, coming from all over the region, just to go in and help. Without the government, without anybody organizing, just, "I got a boat. I'm going in."

KEN: Well, not only that, hundreds of people have done that, and it wasn't like it was not risky for them. They were risking their lives.

GLENN: I know.

KEN: You know, there's just so much at stake for them personally. They didn't have to do it. You would think people would want to go out and save their own families, and yet they came back to help. So it does say a lot about the type of people that live in Texas, and it's really encouraging, given what you just talked about, the divisive nature of what's going on in our country and how difficult it is. And yet, you see in Texas, we -- we've had a devastating hurricane, devastating storms. And yet, you know we'll come back.

GLENN: Ken, I know this is not in your purview, and I'm sorry to hit you with this and even the questions I'm asking you. Because this is not what you do for a living.

But have you heard any talk at all about the gasoline situation? We're seeing -- I mean, stopping at four different gas stations here in the Dallas area on the way into work, four of them had signs on the pumps, out of gas. Ninety percent of all of the fuel coming into Texas is coming in from those refineries that have all been shut down. Are we concerned at all about running out of gas temporarily? Do you have any clue as to what's happening with the gas situation?

KEN: Well, I do think that we're going to start getting supplies from other places. But I think gas is going to go up to some degree. Obviously, supply and demand is going to be affected here. But I do think we're going to have other places that it's going to come from. The supply chain is going to change a bit until those refineries in Texas open back up.

GLENN: And the 42 percent of the fuel for jet fuel comes out of Houston. How long before these refineries can open up. Do you know that?

KEN: That I don't know. I think it's been so dependent on when the rain stops and the water receded. So I believe it will be -- I'm hopeful in the next week they'll open back up. It's an issue. But I do think, as I said, I think the supply chain is changing to address that. It's just prices are going to go up some.

GLENN: So that brings me to what we actually wanted to talk about, and that is price gouging. We just had a listener tweet in from New York and said, "I went. I brought my car in. It was, what? 2.41 or 2.43. I fill up. I go and I get my mom's car. I come back, and it's 2.57, 30 minutes later." And that was in New York.

KEN: That was in New York? Wow.

GLENN: Yes.

KEN: It's going to -- look, it's the natural supply and demand. Prices are going to go up, until the refineries are back open. That's just the reality. We're going to see higher gas prices, for at least, you know, the next few weeks.

GLENN: So I, in my head, can make the leap to things like water. I don't want -- I mean, water -- you have to have water to live. But that stops -- by not -- by saying you can't raise the price, that stops the trucker or the somebody else that might live, you know, in another state, who says, you know what, I'm going to go buy a bunch of water, because I'll be able to make it up. And I'm going to deliver a whole truckload of it, and I'm going to sell it.

So it actually, by -- by disrupting the capitalist system or the free market system, it actually can end up hurting the -- the efforts. How do you balance that?

How do you define price gouging and -- and -- and know where the line is?

KEN: Do you remember when the Supreme Court had to deal with pornography, and they basically said, "We know it when we see it?"

So when I see gas prices at $20 a gallon, I know it's price gouging. When I see water at $100 a gas, I know it's price gouging. When I see gas at 2.57, it's probably not price gouging.

So, you know, we take a look at it and we try to figure out based on the historic price, based on what's going on in the market, are these people taking advantage of people in crisis? And, you know, there is some -- there is definitely some discretion here. And we're not trying to stop the market from working. We're just trying to stop people from ripping people off.

STU: Ken, are you at all uncomfortable with -- and I know you're trying to do good work here and help people in need. But are you at all uncomfortable with the government making a standard of, we know it when we see it?

KEN: Well, so, you know, my job isn't to make laws. I have to deal with the laws I'm given. Whether I would have passed a law exactly like this --

GLENN: Yes.

KEN: As I know from being in the legislature, I never got to pass any law that I exactly liked. I get to -- I get to negotiate laws that were partly what I liked and partly what I didn't.

So, yeah. I'm a free market guy. But I don't think -- in this case, we're not talking about efficient markets. We are talking about really inefficient markets. And I don't think we necessarily have a free market right now in Houston. We have limited supplies. And we've got -- we're talking about critical supplies.

So we're not talking about price gouging as it relates to anything other than things that really are critical to people surviving.

GLENN: You know, Ken, there's an article. And I'm not going to mention where. You know, some person on the left said, "What we're seeing in Houston is not miraculous. People just -- people just rise to the occasion." And I think that's absolutely untrue. We have seen other places and other disasters where people don't necessarily rise to the occasion. And the bad guys take advantage of the occasion. And, you know, are doing some really horrible things.

Are we missing the stories of the violence and the looting and everything else that is happening in Houston? Because I know some of it is happening.

But are -- are we just not seeing a large level of that taking root in Houston?

KEN: You know, I don't think there's a large level. Look, I may -- we could be wrong. We may find more than there is. But part of it is, it's hard for looters to get in and out. They're limited by the same things we're limited by. And so it's made it difficult for them to loot. Now, as the water recedes, we may have more of a problem. But I know that local law enforcement is focused on that. Although, they're particularly focused on rescuing lives first.

But as the waters recede, we'll see what happens. Hopefully, you know, there won't be a lot of that going on.

GLENN: You know, there was a story that came out that President Bush just allowed all of the sales of the transfer of, you know, some serious armaments or, you know -- you know, armed personnel, et cetera, to our local police. And that bothers me. It bothered me under George Bush. And it bothered me under Barack Obama. It bothers me under this president.

I don't understand why that's happening. I want our police to be effective and to be safe. But why isn't that equipment just being transferred to our National Guard. Because they're the ones that really need. We don't really need it to serve a warrant of arrest to somebody.

Why -- why is that happening? And what are we doing with that and our police? Do you know?

KEN: I don't know. I'm not involved in that transfer.

GLENN: Okay.

KEN: I don't know that I disagree with you, that local police shouldn't be armed like they're the US military. That would be better served put into the hands of the National Guard. So I tend to agree with your assessment of that. I have the same concerns you do.

GLENN: One last question: Besides prayer, what can we do to help the governor and everybody else in service the next week or so?

KEN: Well, that's a great question. I think you can pray. That's obviously very important. Still people that are in harm's way. Still people that are rescuing. And that will continue. But there's also great organizations on the ground. Like Samaritan's Purse. There's a group called Minute Man out of Texas, actually out of McKinney, Texas, that I'm very aware that are on the ground. We have groups like the Red Cross.

There are some really good groups that are -- that are down there doing -- also, Texas Baptist Men. So those are at least three or four of the groups that I know of, that are down there now that know what they're doing, that are, you know, legitimate organizations. And that are trying to make a difference.

So you can give money to them. I think they will make a difference down there.

GLENN: Ken, thank you very much. Appreciate it.

KEN: Thank you. Absolutely.

GLENN: By the way, yesterday, I got word that Mercury One -- this is about 3 o'clock in the afternoon, hit a million dollars from this audience. And we can't thank you enough. And you can donate.

The Senate Judiciary Committee was set to vote on subpoenas to compel Twitter CEO Jack Dorsey and Facebook CEO Mark Zuckerberg to testify on alleged censorship and bias across their platforms. But that all changed when Republican committee members "expressed reservation about the maneuver," Politico reports.

Sen. Ted Cruz (R-Texas), who chairs Judiciary's Subcommittee on the Constitution, was definitely not one of the committee members with cold feet. On the radio program Tuesday, he told Glenn Beck that he's fighting "vociferously" to ensure Dorsey and others testify before the November 3rd election.

"Jack Dorsey and Mark Zuckerberg are both going to testify. They're are going to testify in person. They're going to testify before Election Day. That's what I think should happen," Cruz said. "That's what I'm fighting vociferously to happen. Right now, the companies are negotiating with the chairman's office to discuss terms to come voluntarily. I don't give a damn whether they come voluntarily or under subpoena. They need to testify in person and answer questions for the American people about why they are trying to steal this election, to suppress the free speech, and to censor the press."

The subpoenas would require Big Tech leaders to testify on the alleged "suppression and/or censorship" of two consecutive blockbuster stories from the New York Post. The first story was about emails that allegedly came from Hunter Biden's computer which are currently being investigated by the FBI, and the second was based on additional emails that allegedly showed communist China directly offering millions of dollars to then-Vice President Joe Biden.

"Big Tech stepped in, and they've done something they've never done before," Cruz explained. "We know that Big Tech has been censoring individual conservatives, trying to suppress conservative speech. But the step they took here is, they blocked if any individual user tried to share either of the New York Post stories, [they] were blocked ... Sharing a news story, from a major media outlet is part of democracy, part of free speech. And not only that, they blocked the New York Post itself. Right now, today, the New York Post is not being allowed to post its own damn stories on corruption. This is ridiculous. It's a threshold that's never been crossed before, of Silicon Valley oligarchs declaring the authority to determine what the press is allowed to report, and who is allowed to see it."

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If we learned nothing from the media over the past 4 years it's that colluding with a foreign entity to either win an election or for personal gain is absolutely grotesque. Well, that depends on whether you have a (D) or (R) before your name anyway. President Trump was impeached on rumor and innuendo yet Joe Biden has all but skated on his corruption up to this point.

Below is a timeline that shows the level of corruption and the lengths the Biden's went to in order to build that family's wealth and influence internationally.

2009

In 2009, Joe Biden was the brand-new Vice President and John Kerry was a U.S. Senator. Just five months after Joe was sworn in, his son Hunter, and Kerry's stepson, Christopher Heinz, formed an international private equity firm called Rosemont Capital. It had several different branches, including one called Rosemont Seneca Partners.

2010

Just nine months after Rosemont Seneca opened its doors, Hunter Biden went to China for meetings with executives from China's biggest banks, and its sovereign wealth and social security funds. That's unheard-of access for a brand-new firm. Was it just coincidence that at the same time Hunter was meeting these Chinese bigwigs, his dad was meeting with China's then-president Hu Jintao in Washington DC at a nuclear security summit?

2011

In May 2011, Joe Biden met with Chinese officials for the U.S.-China Strategic & Economic Dialogue conference in Washington. Just two weeks later, Hunter Biden went to Taiwan for meetings with the same Chinese financial giants he'd met in China in 2010, plus some new ones.

2013

By December 2013, Joe Biden was enjoying his second term as VP, and John Kerry was now Secretary of State. That's when Joe traveled to Beijing on an extended official trip and Hunter traveled with him on Air Force Two.

During their stay, Vice President Biden met with President Xi and Hunter was mostly out of sight. We don't know exactly what he was up to, but the deal finalized between Rosemont Seneca and the Bank of China just ten days after the Bidens' trip pretty much gives it away. The most powerful financial institution in China formed a joint venture with tiny Rosemont Seneca to create a giant new investment firm called Bohai Harvest RST – the "RS" stands for Rosemont Seneca.

The firm is often called "BHR" for short.

Hunter Biden was a member of the Board. Remember, the Bank of China is government-owned, which means its business is completely intertwined with the goals of the Chinese Communist Party. BHR also got the freedom to operate in the newly created Shanghai Free-Trade Zone where, over the next six years, it would use $2.5 billion of Chinese government money to invest in China, as well as in other countries, including the U.S.

During their Beijing trip, Hunter also introduced Jonathan Li to his dad. Li is Hunter's business partner – he's CEO and Director of BHR.

Hunter arranged for Joe to meet Li in the lobby of the hotel where they stayed during their Beijing trip.

2014

In 2014, one of BHR's first major investments was in the China General Nuclear Power Corporation.

CGN is a Chinese government-owned nuclear power company that sold off a stake of the company to outside investors. Problem is, CGN was under FBI investigation for paying informants in the U.S. to steal nuclear secrets.

In 2016, the FBI arrested the ringleader of this nuclear espionage, a man named Allen Ho.

When they arrested Ho, he was using a random code generator to access funds being provided to him from – where else? – the Bank of China.

Yet while this FBI probe was going on, the son of the Vice President owned a stake in the company being investigated. And even after arrests were made, Rosemont Seneca did not alter its relationship with BHR, nor did it divest from CGN, even though it was stealing U.S. nuclear secrets.

2015

In 2015, BHR partnered with the Aviation Industry Corporation of China (AVIC) to buy an American company called Henniges for $600 million.

AVIC is a gigantic military contractor in China – think Lockheed Martin – that makes fighter jets, bombers and drones. BHR bought 49% of Henniges and AVIC bought 51%.

Henniges is a precision parts manufacturer specializing in anti-vibration technology. The stuff they make is known as "dual use" by the U.S. State Department, which means the technology can also have a military application.

Because of that, the deal had to be approved by the Committee on Foreign Investment in the U.S. (CFIUS) since it could have national security implications. The thing is, the American side of BHR – meaning Hunter Biden and his pals – had to know there were serious national security implications with AVIC.

The year before they formed a partnership with AVIC, the Wall Street Journal reported how AVIC stole technology related to the U.S. Air Force's F-35 stealth fighter and used it in its own stealth fighter for the Chinese.

How the Committee on Foreign Investment approved that deal remains a mystery. CFIUS does not publicly disclose any information regarding its decisions. Their findings are not publicly announced.

Interesting that China accounted for the largest share – with 74 transactions – approved by CFIUS during Obama's second term (2013-2015).

Under the umbrella of Rosemont Capital was a real estate company called Rosemont Realty. In 2015, a Chinese company called Gemini Investments bought a 75% stake in Rosemont Realty. The company was renamed Gemini Rosemont

Gemini brought $3 billion to the partnership with Rosemont, with the aim of buying "Class A institutional-quality commercial office properties in U.S. markets."

Red flag (literally) – Gemini Investments is a subsidiary of the China Ocean Shipping Company, a.k.a., "COSCO."

COSCO is a Chinese government-owned company. Its headquarters in Beijing is actually next to the headquarters of the Bank of China. COSCO is well-known for its close military ties. It's essentially a branch of the Chinese Navy.

2017

In 2017, BHR invested in Face++. That's the facial recognition phone app built by a Chinese company that is incorporated in a separate app built by the Chinese government. Police in the Xinjiang [Sin-jong] region of China use that app to keep tabs on citizens, and track and detain Uiguhr [Wee-ger] Muslims.

The app allows police easy access to data about Chinese Muslims including things like religious activity, blood type, and even the amount of electricity they use.

2018

In March 2018, a spokesman (Chris Bastardi) for Christopher Heinz (John Kerry's stepson) emailed The Hill to say that Heinz had "no operating role" in Rosemont Seneca, and that he was not involved in any of Rosemont's deals in China (which contradicts Schweizer's report in his book Secret Empires).

Chris Heinz was involved in Rosemont Capital. Rosemont Seneca was established under the same GP as Rosemont Capital, but Chris Heinz had no operating role in it. Chris and his family have no financial interest or investment in Bohai Harvest RST, he has never traveled to China, and he has never met with the firm's Chinese management team or investors.

2019

In October 2019, Hunter Biden's lawyer, George Mesires, said Hunter did not conduct any business on that 2013 trip to Beijing with his Dad.

Mesires said the timing of BHR's business license getting approved was purely coincidental because the paperwork had been submitted months before the Bidens' China trip.

According to Hunter's lawyer, the approval " was not related in any way, shape or form to Hunter's visit."

Hunter Biden finally stepped down from the BHR board last October (2019), but he DID NOT give up his 10% stake in the company.

When Bevan Cooney — the former "junior" business partner to Hunter Biden and Devon Archer — went to jail in 2019, investigative reporter and New York Times bestselling author Peter Schweizer thought he'd never gain access to the damning emails Cooney had promised. That all changed three weeks ago when Schweizer was given complete access to Cooney's gmail account.

Schweizer joined Glenn Beck on the radio program Tuesday to describe just some of the business deals revealed within these emails — like Hunter working with an alleged Russian criminal and with Chinese communists to secure their assets, or to secure one-on-one time with his dad, then-Vice President Joe Biden. And all of this new information is completely separate from the emails allegedly discovered on Hunter Biden's laptop recently reported by the New York Post.

"So, I want to make this clear. This [Cooney's emails] has nothing to do with what's on the laptop … It didn't come from [Rudy] Giuliani. It didn't come from anybody else, right?" Glenn asked Schweizer.

"That's absolutely correct," Schweizer confirmed.

He briefly explained how Cooney, a former Los Angeles nightclub owner, is currently serving a prison sentence for his involvement in a fraudulent business bond scheme with Biden and Archer. From prison, Cooney gave Schweizer written permission to access his Gmail account.

"This is really important," he noted. "We're not looking at printouts. Not looking at PDFs. We're actually in his Gmail accounts themselves, sifting through these emails. And there's a shocking amount of information about deals involving China, involving Russia, involving all sorts of things they were trying to pull off."

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The king of "No Spin" and bestselling author of "Killing Crazy Horse," Bill O'Reilly joined Glenn Beck on this week's podcast to talk about the latest developments in Joe Biden's Ukraine and China corruption scandal. Now that some of the details are finally coming out in the open, does the average Democrat care? Maybe, but the Left doesn't seem to.

O'Reilly argued there's more hatred for President Donald Trump now than in 2016, and that some people hate President Trump so much that they'd rather vote for the "senile, corrupt" Joe Biden.

"Hunter got tens of millions of dollars from Ukraine, from Russia, from China because his father was vice president. I have no doubt in my mind," O'Reilly said. "But the hatred for Donald Trump overrides that in the minds of millions of viewers. They're saying, 'You know, we'd rather have the senile corrupt guy than Trump.'"

Asked by Glenn if any other Republican running for president would be met with the same level of vitriol, O'Reilly answered, "The Left is the Left. They don't like America. The want to redo the Constitution. They want to take some of our freedoms, like the Second Amendment and the First Amendment, and change them. And they want to destroy capitalism and replace it with a big centralized government in Washington that controls the economy … but I'm talking about the folks. I have liberal friends and I say to them, 'Do you not understand that when you vote for Biden, you're voting against your own self interest?'"

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