GLENN: Have you heard the latest from Dr. Doom?
GLENN: It's good. It's good.
PAT: What did he say?
GLENN: Just that, he just thinks massive inflation is coming or default. But other than that, no big deal. That's Nouriel Roubini, a guy who was saying, "Oh, yeah, we're looking at a U shape, maybe a V shape recovery but probably a U shape." Now he's like, "I take that back. Thinking maybe we might have really bad inflation, dare I say it hyperinflation."
PAT: How can that happen? The jobless rate only went up two tenths of a point, but —
PAT: They added 290,000 jobs. That's the most in two years. Right back on track.
GLENN: That is incredible.
PAT: 290,000 —
GLENN: That's incredible.
PAT: Government jobs in the IRS, census bureau.
PAT: They are packed with people that are working.
GLENN: So good. May I ask you a question? Stu, you are kind of a mathematical mind.
STU: That's me.
GLENN: Okay, help me out.
GLENN: Okay. The government is expanding 40%. 40% of the government is hiring.
STU: Uh huh.
GLENN: Okay. Only 28% of the private sector is hiring.
GLENN: Now, normally in a recession 80% of the jobs are created by small business.
GLENN: Got it?
GLENN: Now, if 40% of the government is hiring, the jobs are being created by the government. How do you continue to pay for all of the government employees? For instance, you're killing the private sector, right?
STU: Mmm hmmm.
GLENN: And the private sector is the one that's selling stuff, making stuff, growing the economy.
STU: Mmm hmmm.
GLENN: Then those people you tax and you give it to the government and then they take that, those tax dollars and pay the employees?
STU: Uh huh. I don't know what you're not understanding here.
GLENN: I'm trying to figure out how that system works when everybody's working for the government and we're not really —
STU: Well —
GLENN: — building anything anymore.
STU: What do you pay people who are working for the government? You pay them —
PAT: Tax dollars.
STU: Well, tax dollars are one of the type of dollars you can pay them. You can also print two different types —
GLENN: Oh, inflation.
STU: Printed dollars and borrowed dollars. And those dollars are just as effective in paying government employees.
GLENN: You know what? You are right. I forgot about the printed and borrowed dollars. That's fantastic.
STU: And think of how many people yeah, how many people are you going to need to run the printing presses to get those dollars to pay the government employees? That's even creating more jobs.