GLENN: 888-727-BECK, 888-727-BECK. Go to Stephen Moore who is chief editorial writer of the financial section of the Wall Street Journal. Hello, Stephen.
MOORE: Good morning, Glenn.
GLENN: I know this is out of your purview here but I have to ask you your thoughts on Obama's speech yesterday.
MOORE: I didn't see it. You know where I am? I'm in the Colorado mountains trying to get away from it all for a few days.
GLENN: Oh, no, you are kidding me. Well, then why would -- I'm sorry, Stephen. I didn't know that you were on vacation. You shouldn't be answering your phone.
MOORE: Did this have to do with his minister?
GLENN: Yeah, you are not even watching -- you are so disconnected from the news, you are not watching any of this?
MOORE: Only the financial news.
GLENN: Oh, goodness, yeah. It's about as good, it's out of control.
MOORE: Look, I think this is a big problem for Barack Obama because, you know, people -- he has been the candidate who's trying to bring the races together but it just makes him look so hypocritical, the fact that he's been a member of this church and he's gone to this -- you know, it's not like he chose -- this pastor chose him. He chose this pastor.
GLENN: Yeah. And you know what's really weird is he's denying, you know, that he had -- you know, he's never been a political advisor. "He's my pastor" was one of the quotes, but that's not true. According to Bloomberg he was on an advisory committee and he forced him to resign. I mean, you know, the guy who's, you know, a more straight talker than John McCain is lying about this and it's just, it's not good. It's not going to --
MOORE: It also reinforces the fact that, you know, I always called Barack Obama the Manchurian candidate because we don't know anything about this guy. Three years ago he was a back bencher in the Illinois state Senate.
GLENN: All right. Let me change subject here. I know you've been away. So hopefully you've been following everything. Real quick nutshell question here is everybody's celebrating Bernanke, everybody's saying this is all great, this is great for Wall Street, yada, yada, yada. I know you and I have talked before about the dollar. I'm concerned about the falling dollar. I saw three stories today in the Netherlands: They are no longer exchanging the dollar unless it's a major bank because these currency places don't want the dollar. Vietnam is trying to unpeg completely now from the dollar and the Gulf region is saying now their inflation is so bad, they may have to unpeg from the dollar.
MOORE: Yeah. And, you know, one of the reasons the U.S. economy has been so strong over the last 20 years is because the dollar has been strong. And as Reagan put it, you know, we were going to make the dollar as good as gold again. And if you look at the numbers right now, if you look at, you know, 2001, gold was selling at $300 an ounce. Today it's selling at $1,000 an ounce. So that is the very definition of a currency that is falling in value and a currency that is inflated, and we have inflation now in the economy and we have a extremely weak dollar and this is, I think, the biggest problem with the U.S. economy, even bigger problem than the housing crisis. We can get beyond this housing crisis but we cannot get beyond -- we're not going to grow as an economy if our currency is devaluing in value.
GLENN: Right. And so the only way to revalue your currency is to do the opposite of what the Fed is doing.
MOORE: I could not agree more. You know, the Fed, I think, made a big mistake yesterday. I think lowering interest rates just pumps more dollars into the economy at a time that the Fed probably should be pulling back on the number of dollars. I mean, it goes back to your basic Economics 100 course which is that inflation is too many dollars chasing too few goods. There are too many dollars out there right now, Glenn, and it makes no sense for the Fed to be putting more dollars out there.
GLENN: Okay. I'm doing a story tonight, Stephen, on TV about, we have an expert on the Japanese financial crisis.
GLENN: And, you know, how they were just leading the world and everything was great. The Fed is doing exactly what the Japanese did which destroyed their economy for a long, long time. But the one fundamental difference is that they were savers and they were selling us televisions. So their economy kept going because they were selling us cars and televisions. We're consumers. We're buying the televisions and the cars. So once we stop -- and we don't save. Once we stop spending, there is no more engine left in this car. Right or wrong?
MOORE: Well, I think that's the reason why if the U.S. economy goes into a recession -- I think we are in a recession right now -- the rest of the world cannot delink from the United States because we're the consumers who buy all the products from the rest of the world. But, you know, your Japan analysis is an interesting one because Japan went through a ten-year recession, a ten-year recession because, you know, the stock market in Japan fell by 2/3 over 10 years. Now, I don't think we're headed into that kind of dire situation but it shows what happens when you lose control of your currency.
GLENN: You and I sat down to dinner, I don't know, eight months ago, six months ago and you said you're worried about a spiral of the dollar that all of a sudden it could just spiral out of control. Are we at the same place? Is your fear less, greater, or about the same?
MOORE: Oh, my goodness. I mean, back then when you and I had dinner, I think the dollar was selling -- I mean, gold was selling at about $750 an ounce. Now it's $100. I mean, the reason we have $110 oil today, a barrel of oil sells for, like, $110 is because of the devaluation of the U.S. dollar.
GLENN: What happens, Stephen, if these countries unpeg from the dollar?
MOORE: It makes our economy weaker. We've always benefitted from the fact that the dollar has been the reserve currency around the world. I mean, it used to be that you could go anywhere in the world from, you know, Russia to Cuba and what everybody wanted was dollars. I know you've traveled around the world. You know that. And now people thumb their nose at the dollar. I mean, my goodness, the Canadian dollar's now worth more than the U.S. dollar.
GLENN: Stephen, you're a smart guy. I'm a self-educated guy. I can see this. You can see this. All you have to do is read history. It's almost as if we're being devalued intentionally. Any chance -- I mean, I know this is conspiracy lane, but how are these really smart people doing these things?
MOORE: You know, I was just wondering that. You asked the same question. I've been scratching my head wondering the same thing. I mean, what I'm very worried about, Glenn, is not so much a recurrence of what happened in Japan but rather what happened in the U.S. economy in the bad old days of the 1970s. You know, think about the 1970s. We had high inflation, rising taxes and government spending out of control. Now, gee, doesn't that sound familiar. That's exactly what's happening today. We've got rising inflation, we've got the Democrats talking about raises every tax they can get their hands on, we've got the government spending out of control. This is the 1970s all over again. It's the 1970s show.
GLENN: You've got to -- you go to the nearest town and get a copy of today's Wall Street Journal and read the editorial by Rahm Emmanuel, a new deal for the new economy.
MOORE: It's horrible.
GLENN: You read it?
MOORE: Yes. It's unbelievable. These guys really think that we can spend our way out of this crisis. I was watching CNN the other night and they had Al Franken. Do you know who Al Franken is?
GLENN: Unfortunately, yes.
MOORE: He's running for state Senate in Minnesota. The guy does not have his tray table in the upright locked position. This is a guy who thinks all we have to do in the government is spend more money and we won't have a recession.
GLENN: I'm going to let you go back to vacation. Sorry to get you all riled up so early in the morning out in Colorado. I appreciate it, Stephen, we'll talk to you again soon.
MOORE: Okay, see you, Glenn.
GLENN: All right. Bye-bye.