Glenn Beck: Not looking good


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GLENN: That's what this bailout is about. Try to land the plane in a place and try to land the plane in as intact condition as you possibly can because you want to be able to use some of the stuff on the plane, and this bailout is bullcrap when it comes to, "Oh, this is it." I told you that with AIG. Don't believe when they said, "Well, this is it." What they learned last week is it is much worse than they thought. The quote that caught my eye on Wall Street Journal on Saturday was from Hank Paulson, the secretary of the treasury. Wednesday night they realized this isn't going to work, the AIG thing is not going to work. They went to the President and met with the President for 45 minutes. It's my understanding that the President was not for additional bail he was like, okay, whoa, whoa, whoa, whoa, whoa. And they explained to the President what's called commercial paper. Commercial paper, without getting all bogged down in details, basically if you are a business, a big business, a small business, you need to take loans out. If you are a farmer, you know you have to take a loan out to be able to buy the seeds, buy the fertilizer, everything else so you can put the fertilizer and the seeds in the ground. Then you are going to need to take a loan out to get it, to harvest it, to get it to market and then you pay that loan back. It's the way that this runs. Small business, farms, General Motors, they run on commercial paper, which is just short term loans. It happens all the time. You go, you know your banker, "Okay, I need a short term loan, got it, got it," boom, boom, boom, and it's done. That's the way business is run. On Wednesday there was no commercial paper available, none. America had zero loans for business by Wednesday afternoon, none. When that happened they realized, the market started to realize that, wait a minute, if there's no commercial paper, if there's no loans going to business, businesses are going to start falling out of the sky by Friday, just gigantic companies will just close because they won't be able to afford the operations. There is no loan for any company of any size in America. This is Wednesday night.

So what happened was people started to go into their mutual funds and they started grabbing money out of their mutual funds. When they started grabbing money out of their mutual funds, mutual funds and banks, when you put your money in savings lucky we don't have a lot of savings when you put your money in savings, remember it is the scene from It's a Wonderful Life. "Bill, your money is in Mary's house and Mary, your money's in Pete's house." That's the way the system works on a very large scale. Just remember that scene. It's not sitting there. There's no money just sitting around. So when you buy into a mutual fund, those mutual funds then use that money to make loans for commercial paper. The same with the banks.

Well, when people started taking their money out of the system and they said, "I've got to buy something that's safe," the safest thing in America is a treasury bond. It means I'm going to give my money when we were born, when we were kids, you get a savings bond, United States Treasury savings bond. Well, it's a very low rate of interest. Usually, you know, 5, 6% interest maybe, and it goes up and down, et cetera, et cetera, but it's the safest thing in the world. You buy treasury bonds because the United States government's not going to collapse.

Well, there was such a rush into treasury bonds that the yield, the money that you would make off of it was at zero. So in other words people were locking up their money and just saying, I just want a treasury bond; give me a treasury bond. That the treasury was saying we have so much coming into treasury bonds that there's not going to be a return on your investment. And they're like, that's fine, that's fine, I don't need anything, I just, you'll give me all of my money back, right?

That was Wednesday night. When Hank Paulson was sitting in his office and he was looking at the commercial paper, he was looking at the bond not the bond market but the what do you call it, oh, shoot, the stocks. Not the you know what I'm saying. Stu, help me out.

STU: I have no idea what you're talking about.

GLENN: Mutual funds. He was looking at the mutual funds and he's seeing the mutual funds start to tank. He said, we've got to get to the President, we have to talk to the President, we have to have a massive bailout, with he have to get all of this debt off." This is again what Romney said. He had been talking about this for a couple of months. Remember he was on the show last week? And I said, what? He said, it's got to be done. And he's been pushing for this for a couple of months. That's what Paulson said on Wednesday night, Wednesday to the President. The President was against it. When somebody was initially. When somebody was sitting next to Paulson, he said, what if the congress doesn't do this, what if the President doesn't do this? He said, they have to do it; there's no other option. And I quote, "If they don't, God help us all." End quote. I'm sorry, heaven help us all? Heaven help us all.

STU: Apparently God wasn't enough. They needed all of heaven.

GLENN: Well, angels are bailing them out.

So that's where we were Wednesday night. They went to the President. The President after 45 minutes, he said, do whatever you have to do. Congress has met now over the weekend with Ben Bernanke. Now remember, when Ben Bernanke speaks, the ramifications of what he says are enormous. That's why they are always very guarded, they are always very careful. They are optimistic..." things are great!" He can't lie but he's got to be very, very guarded. Chris Dodd came out of a meeting and so did several of the senators and they have said that they met with Ben Bernanke on Saturday. The reporters are saying they were visibly shaken. Chris Dodd said it was the how did he describe it, Stu? The most intense or the worst meeting he has ever had in the history of his oh, it's not in that paper. It's another one. Hey, is Joe still here? Joe?

STU: Yes, he is.

GLENN: I'm going to take a break. Can you get that quote for me, please? It's quite an amazing statement coming from Chris Dodd about what Ben Bernanke said. I'm going to tie it all up here after the break and not only tell you what I believe is coming but what you need to do, and there are some things that you can do. The things that you the things that you know, time is running short. Time is running short, and they're raising the debt ceiling and everything else. So we'll give you all of that here coming up in just a second and we'll take your phone calls. The number is 888 727 BECK, 888 727 BECK.

Today I said to Stu right before we went on the air, I said this is kind of going to be like a homework day but this could be a very important day for you to actually listen to the show and I know we're going to try to, you know, make it light and I'm going to give you there is some really, really good news out of this that should make you feel good, and I can name names on some of this, of some players that are coming out of the woodwork. You know, it's basically the Sarah Palin news that I said. I don't know if Sarah Palin is the person, but she's given me hope that when in a time of crisis that person appears, there have been appearances during this that you probably don't know of, people that have come out of the woodwork that are now working for the treasury department for a dollar, quit their job. You know what? Because they understand that Wednesday night was 9/11. You don't understand that yet most likely because I didn't understand that and most people don't just we just, on several levels some of it is being kept from us because they don't you don't want anybody to panic. This audience has been prepared. I told you I've been telling you this stuff was coming for over a year and the reason why is so you don't panic when it comes. You've got to be a leader. You cannot be the person that was standing there on 9/11 and saying, "We're all going to die!" You must be the person that you have prepared yourself for and that you have been prepared for. You must be the leader. You must be the person that you were on 9/12 because people are going to freak out. People are going to be very afraid and people aren't going to know what's happening and there are people, the vast majority on television don't even know what's going on. These experts don't know what's going on. You will. You need to be the leader.

The themes of healing and redemption appear throughout the Bible.

Our bodies are buried in brokenness, but they will be raised in glory. They are buried in weakness, but they will be raised in strength. — 1 Corinthians 15:43
It is not the healthy who need a doctor, but the sick. I have not come to call the righteous, but sinners. — Mark 2:17.

So, for many Christians, it's no surprise to hear that people of faith live longer lives.

Heal me, O Lord, and I shall be healed; save me, and I shall be saved, for you are my praise. — Jeremiah 17:14.

But it is certainly lovely to hear, and a recent study by a doctoral student at Ohio State University is just one more example of empirical evidence confirming the healing benefits of faith and religious belief.

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Moreover, the study finds that religious belief can lengthen a person's life.

A joyful heart is good medicine, but a crushed spirit dries up the bones. — Proverbs 17:22
Lord, your discipline is good, for it leads to life and health. You restore my health and allow me to live! — Isaiah 38:16

The study analyzed over 1,000 obituaries nationwide and found that people of faith lived longer than people who were not religious. Laura Wallace, lead author of the study, noted that "religious affiliation had nearly as strong an effect on longevity as gender does, which is a matter of years of life."

The study notes that, "people whose obits mentioned a religious affiliation lived an average of 5.64 years longer than those whose obits did not, which shrunk to 3.82 years after gender and marital status were considered."

And He called to Him His twelve disciples and gave them authority over unclean spirits, to cast them out, and to heal every disease and every affliction. — Matthew 10:1

"The researchers found that part of the reason for the boost in longevity came from the fact that many religiously affiliated people also volunteered and belonged to social organizations, which previous research has linked to living longer. The study provides persuasive evidence that there is a relationship between religious participation and how long a person lives," said Baldwin Way, co-author of the study and associate professor of psychology at Ohio State.

Prayer is good medicine, and faith is a good protector.

In addition, the study showed how the effects of religion on longevity might depend in part on the personality and average religiosity of the cities where people live, Way said.

Prayer is good medicine, and faith is a good protector.

And the power of the Lord was with him to heal. — Luke 5:17
Heal the sick in it and say to them, The kingdom of God has come near to you. — Luke 10:9.

In early June, the Social Security and Medicare trustees released their annual report on the fiscal health of these programs, and the situation looks dire. Medicare is scheduled to run out of money in 2026 (three years sooner than anticipated), while Social Security is expected to run out in 2034. The rising national debt is only one of the well-known financial struggles the millennial generation faces. The burdens of student loan debt, high housing prices (thanks to zoning restrictions), stagnant wage growth, the rising cost of healthcare and lingering aftershocks of the Great Recession are among the biggest sources of economic anxiety millennials feel.

Progressive politicians have been very successful at courting the youth vote, partly because they actually promote policy ideas that address many of these concerns. As unrealistic or counterproductive as Senator Bernie Sanders' proposals for single-payer health care or a $15 an hour minimum wage might be, they feel in theory like they would provide the economic stability and prosperity millennials want.

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Republicans, on the other hand, have struggled to craft a message to address these concerns. Fiscal conservatives recognize, correctly, that the burden of the $20 trillion national debt and over $200 trillion in unfunded liabilities will fall on millennials. Some conservatives have even written books about that fact. But the need to reform entitlements hasn't exactly caught millennials' attention. Pollster Kristen Soltis Anderson, in her book The Selfie Vote, notes that millennials generally view protecting the safety net as more important than reducing the deficit.

Clearly, Republicans have a problem. They need to craft solutions that address the millennial generation's struggles, but they can't seem to sell entitlement reform, their biggest policy preference that addresses those problems. The Republican approach to wooing millennials on policy is failing because talking about stopping the debt from reaching an unsustainable level is long-term and abstract, and offers few immediate tangible benefits. A new approach to both pave the way for entitlement reform and give millennials an immediate financial boost is to first reform not entitlement spending, but the payroll tax: specifically, by partially (or wholly) replacing it with a value-added tax.

Under the current Social Security model, workers pay for the benefits of current retirees through the payroll tax. This system creates the illusion of a pension program, in which what you put in is what you get out, but in reality Social Security is a universal safety net program for the elderly paid for by taxes. The payroll tax falls on workers and is a tax on labor, while the value-added tax (VAT) is a tax on consumption imposed at every part of the production process. Assuming that this policy change is revenue-neutral, switching to a VAT will shift the responsibility for funding Social Security and Medicare away from workers, disproportionately poorer and younger, and onto everyone participating in the economy as a whole. Furthermore, uncoupling Social Security funding from payroll taxes would pave the way for fiscal reforms to transform the program from a universal benefit program to one geared specifically to eliminating old-age poverty, such as means-testing benefits for high-income beneficiaries, indexing benefits to prices rather than wages or changing the retirement age.

Switching from the payroll tax to the VAT would address both conservative and liberal tax policy preferences.

Switching from the payroll tax to the VAT would address both conservative and liberal tax policy preferences. As the Tax Policy Center notes, the change would actually make the tax system more progressive. The current payroll tax is regressive, meaning that people with lower incomes tend to pay a higher effective tax rate than people with higher incomes. On the other hand, the value-added tax is much closer to proportional than the payroll tax, meaning that each income group pays closer to the same effective tax rate.

For Republicans, such a change would fit conservative economic ideas about the long-run causes of economic growth. A value-added tax has a much broader base than the payroll tax, and therefore would allow for much lower marginal tax rates, and lower marginal tax rates mean smaller disincentives to economic activity. According to the Tax Foundation's analysis of a value-added tax, the VAT would be a more economically efficient revenue source than most other taxes currently in the tax code.

Not only would replacing part or all of the payroll tax provide an immediate benefit to millennial taxpayers, it would also open the door for the much-needed entitlement reforms that have been so politically elusive. Furthermore, it would make the tax code both more pro-growth and less regressive. In order to even begin to address the entitlement crisis, win millennial support and stimulate the economy in a fiscally responsible manner, Republicans must propose moving from the payroll tax to the VAT.

Alex Muresianu is a Young Voices Advocate. His writing has appeared in Townhall and The Federalist. He is a federal policy intern at the Tax Foundation. Opinions expressed here are his only and not the views of the Tax Foundation. He can be found on Twitter @ahardtospell.

Glenn was joined by Alanna Sarabia from "Good Morning Texas" at Mercury Studios on Thursday for an exclusive look at Mercury Museum's new "Rights & Responsibilities" exhibit. Open through Father's Day, the temporary museum features artifacts from pop culture, America's founding, World Ward II and more, focusing on the rights and responsibilities America's citizens.

Get tickets and more information here.

Watch as Glenn gives a sneak peek at some of the unique artifacts on display below.

History at the Mercury Museum

Alanna Sarabia interviews Glenn Beck for "Good Morning Texas" at Mercury Studios.

Several months ago, at the Miss Universe competition, two women took a selfie, then posted it on Instagram. The caption read, "Peace and love." As a result of that selfie, both women faced death threats, and one of the women, along with her entire family, had to flee her home country. The occasion was the 2017 Miss Universe competition, and the women were Miss Iraq and Miss Israel. Miss Iraq is no longer welcome in her own country. The government threatened to strip her of her crown. Of course, she was also badgered for wearing a bikini during the competition.

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In an interview, Miss Iraq, Sarah Idan, said:

When I posted the picture I didn't think for a second there would be blowback. I woke up to calls from my family and the Miss Iraq Organization going insane. The death threats I got online were so scary. The director of the Miss Iraq Organization called me and said they're getting heat from the ministry. He said I have to take the picture down or they will strip me of my title.

Yesterday, Miss Iraq, Sarah Idan, posted another selfie with Miss Israel, during a visit to Jerusalem.

In an interview, she said that:

I don't think Iraq and Israel are enemies; I think maybe the governments are enemies with each other. There's a lot of Iraqi people that don't have a problem with Israelis.

This is, of course, quite an understatement: Iraq, home to roughly 15,000 Palestinians, refuses to acknowledge Israel as a legitimate country, as it is technically at war with Israel. The adages says that a picture is worth a thousand words. What are we to do when many of those words are hateful or deadly? And how can we find the goodness in such bad situations?