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GLENN: Oh, man. Okay, let's gosh, let's just talk about some of the headlines today and see if we can give you some perspective. Last night there was a story on the Drudge Report about how the dollar is, they are thinking about unpegging from the dollar over in the Middle East. Well, if you unpeg from the dollar in the Middle East, this is going to be a problem. Arabs are plotting to drop the dollar. They are not plotting to do it. They are just making plans to do it. It's not plotting. What, are they plotting our demise? No, we are plotting our demise.
STU: Well, it's plotting in the sense that they are not admitting to it. I mean, if they are doing it in secret.
GLENN: No, they are. They are admitting to it. They are just saying that they are not doing it right now. But in the they say in the near future we're not doing it. So that means today they are not doing it.
PAT: Why? Because they have $2 trillion U.S. they have got to get rid of first.
STU: Well, they have issued denials, though, to this particular story.
GLENN: With the understanding.
STU: With caveats.
GLENN: With the caveat in the near future, we have no intention of doing that.
STU: By noon today.
GLENN: No, look. Here's what's happening. China is already doing this. China is already divesting themselves of all of their dollars. They are getting rid of all of their dollars, and they are what they are doing is they are going out and they are buying mines, they are buying minerals, they are buying precious metals. They are going out and they are buying raw commodities. That's what they're doing. And they are using our dollars to do it. So when they sell those dollars, there are more dollars out on the market.
Now, the reason why this isn't happening today is because nobody's going to hack off China. Everybody needs China to be the new global consumer because we're not. Back in the 1970s we decided that we would be we bought into this, "Well, we don't have to create anything. We don't have to build anything. We'll be the world's consumer." Well, congratulations. This is where we are now. We're the world's consumer that didn't make anything except paper. We'll be the, we'll be the bankers of the world.
Being the bankers of the world doesn't work out when you're in a normal society, when there are no rights and wrong, when you have to define the word "Is." That doesn't work out. Nobody wants that banker. Nobody wants that banker.
When you go to Wharton business school and you have a hard time with ethics, it's not a surprise that one of the first places that accountants are pulled from is not Wharton but schools like BYU. Because there's plenty of smarts in America. There are not enough people with credibility and honesty and integrity, somebody that understands ethics. So we became the world's banker with no ethics. And then about four years ago we went over to China and we lectured China and the rest of the world, "You've got to adopt our system. You just don't know what you're doing." And we lectured them on how to do finances. How's that working out for you? So now the rest of the world is saying, wait a minute, okay, they lied to us when they said they would be on the gold standard and then Nixon convinced them, no, no, no, we'll be the consumer, and you build. It will be good to build up your society. And so we got off the gold standard and we said, "But we'll never trash the dollar" because it affects them. So what happened? We trashed the dollar. But as we were trashing the dollar we said, yeah, but the rest of the world will need us because we're the world's financial center. And then we trashed that image. So now our dollar is falling because we're borrowing too much money. See, the dollar bill, if you have one in your pocket, pull it out. Look at it. That's a stock certificate. That's what that is. Think of it as a stock certificate. It's a share, a $1 share in America. Well, just like any other company, when the company's health starts to look bad, people sell their shares. That's what China is doing by spending it. They were holding it, but they no longer think it's going to have a long term growth. It's we used to be IBM in 1970. Now we're IBM, what, 1990? We used to be GM, 1940. We're now GM 2009. People don't want their stock anymore. But because they hold so much of it, they don't want to just dump it. Because if somebody dumps it, then everybody is selling, and you can't get it sold. If somebody like China comes in and just tries to dump all of their stock or if somebody who holds a huge amount of our stock, our shares, our money, our dollars and they just go into the open market and they dump it quickly, the price would just cave because there would be too much. It works just like the stock market and so your dollar loses value. Already in the last six months by what we have done to our country, we have lost every single dollar you hold has lost 20 to 30 cents. It has lost 20 to 30% of its value. That's what it means to you, and it hasn't even begun yet.
First they came for your 401(k) in actual stocks. And you didn't say anything, you didn't do anything. Now they are coming for your money. And who's coming for it? The people in Washington that have so dishonored themselves and now us around the world by believing and quite honestly who else has been their partner in crime? Us. Each and every one of us that have allowed ourselves or our neighbors to believe there is a never end to our spending, that we will always do you know why we don't believe in a brighter future now? That's a first time in America that we don't believe that our children's future will be brighter. Do you know why? Because we haven't valued that future. We have only valued the now. Well, maybe now it's time to start valuing the future and devaluing now and do the right thing for our children. And the right thing for our children is saying enough! But you have to understand the other side of that. The other side of that is if you stop spending money because we're the world's consumer now. We don't make anything. If we stop spending money, the engine stops.
Right now we're blowing blue smoke all across the highway. Our engine is about to fail. The question is, does America pull herself off to the side of the road, take the engine out and redo it, or do we just keep driving and maybe end up in the middle of absolutely nowhere where we are miles away from any kind of tools? And we've used every bit of resource and destroyed the engine. It cannot be rebuilt if we continue to burn it and burn it and burn it and burn it. Our weasels in Washington don't have enough courage to tell you these things. Our weasels in Washington don't think you have enough courage to face these things. Our weasels in Washington will tell you that I'm just, I am a cynic. No, I'm a realist. A cynic is someone who doesn't believe in the future. I believe in the future but not without being coupled with the truth. Would you ever listen to a doctor, ever listen to a doctor who you're riddled with cancer, and you know it. Would your friends sit around and stone the doctor that said take chemo, sure, it's almost going to kill you but it won't; you'll live through it; you'll have a chance of survival. Take chemo. Would your friends allow you to listen to the doctor who said that doctor's just a cynic; you're fine; have some apple juice... and another cigarette. And while you're at it, why don't you breathe in some asbestos. Would your friend stand around and let you listen to that doctor? Then why the hell are we standing around and letting friends listen to those doctors? How is it that the doctors who are telling you "you have cancer; there's a chance of survival" are the bad ones? How is it the asbestos doctors are still in business?
Oh, no, Lindsey Graham was right. I don't speak for the Republican Party. I'll speak for anybody who will speak the truth. I don't care what party they're in. Somebody will tell us the truth.