Glenn Beck: A frank conversation with Jon Huntsman

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GLENN: I did a show two days ago with a live studio audience and my good

friend who I'll introduce you to here in a second, and when I got off, the

producers we have I don't even know, what do we have? Twelve producers that are

in the studio, twenty producers that are in the, you know, in the control room.

And there one of the guys, all he has to do is watch the time, watch the time,

make sure that everything is right for the network. He said you know it's a good

show when I forget about the fact that there is a clock. He said, a couple of

times I got yelled at because they were like, what time? And he was like, oh,

oh, crap. He said, that's never happened to me before. And the next day the crew

came in and they said to me, if we had to archive five shows, this would be the

number one show. They said this is the most amazing show we've ever done on

television. And it is a show on self reliance, it is a show on liberating

strife, on you can make it through anything. It is also one on misunderstanding

of wealth and stuff. And the best guy I know to talk about it and is a guy who I

just made him extraordinarily uncomfortable a few minutes ago, but I he can

never say this but I can because I believe it with everything in me. He is the

only man I have ever met that I believe has the character of George Washington.

Jon Huntsman, Sr. is a good friend and mentor of mine. Welcome to the program,

Jon, how are you?

HUNTSMAN: Well, Glenn, thank you very much. I'm

GLENN: I know.

HUNTSMAN: I'm overwhelmed. I'm overwhelmed.

GLENN: Did you leave your white horse out on the

HUNTSMAN: My white horse is right by the Delaware River.

GLENN: Yeah. I know you're a big fan of George Washington as well and know the

character of the man, and I know it's something that you have strived for your

whole life is to be a man of real character. We were talking off the air a few

minutes ago, and I want you to try to address this, Jon. Jon, so you know, grew

up in a house so poor, that he had cardboard walls. He had one shirt, one pair

of shoes, right?

HUNTSMAN: Right.

GLENN: Yeah. Poverty unlike what most people understand poverty in America to be

like.

PAT: But they were Gucci shoes, I understand.

HUNTSMAN: Come on, Pat.

GLENN: And so Jon grew up, and he has seen it. Even when he was poor, his wife

told me this story, that when he was when he was poor, she would divvy out the

few dollars that they had so he could have lunch and everything else when he was

working long hours. She didn't know, and he didn't say anything to her because

he just, you know, he knew what she would say. He took that money for his lunch

and he gave it to the neighbors down the street because they were worse off than

they were. And so he made sure that they had something to eat every day and he

went without. And this is a long, long story in his life. Built Huntsman

Chemical Company which is the largest now chemical corporation privately owned

in the world and his lived his life ethically.

Jon, people are looking for answers on the country on what to do, and I think

they are looking for a magic bullet. I think they're looking for a political

solution here. As a businessman, how much trouble is the country in?

HUNTSMAN: Well, Glenn, number one, thanks thank you very much, very much for

your kindness, Glenn. You're always exceedingly thoughtful and gracious, and you

build me into an individual that sometimes I really have to pinch myself

because, you know, I have a hard time living up to your expectations, Glenn.

GLENN: Well, you wouldn't have to pinch yourself. If you just fly commercially,

TSA will do it for you now.

HUNTSMAN: Just frisk myself. But, you know, Glenn, the key right now to America

is that we have to get back to being to trust one another. I think the word you

know, faith, hope and charity, I have these great pictures in my office of

faith, hope and charity that you gave me. And I look at them every day and I

think if we could just trust one another. If our handshake was our bond, if we

had that wonderful feeling of admiration and trust. And I think our Founding

Fathers, they would disagree but they weren't disagreeable. They didn't hate

each other, they didn't want to kill each other off.

GLENN: They did, they yelled and screamed and they were passionate about their

point of view and they argued hard with each other. Thomas Jefferson and John

Adams. But they were decent men. They in the end George Washington said to them,

look, you have more in common. And they had the values and principles in common.

I don't know, Jon, if we have values and principles in common anymore.

HUNTSMAN: Well, you know, I particularly love Franklin because I went to the

University of Pennsylvania and Franklin, of course, was a founder there. And

we've studied his life, and I loved his book on pragmatism, the pragmatic nature

of man. And coming back to your point, Glenn, we do. I think the basic majority

of people listening to this program are honest, God fearing people and they just

don't understand what's going on with their government. They don't understand

this massive debt. They don't understand what's happened to them in the last few

years. But it's not their fault. I think they themselves are God fearing, fine,

wonderful people who you're honored to have as your friends. And I think that's

a vast majority of Americans today.

GLENN: So if you're looking for a political answer, I don't think there is I

mean, we have to be vigilant, we have to, you know, play our role as a citizen

and vote and everything else. But I think the problems that are coming, I Jon,

would you agree about me that I don't know if you can because of your position

in the world, but that the system is unsustainable as we have designed it today

and it needs to be reset in some form or another back to things that are true.

And faith, hope and charity, things that are the things that poor Richards used

to teach us. The common sense, you know, be thrifty and, you know, save your

money and there is there is a difference between good debt and bad debt and

honesty is the best policy, all of that stuff.

HUNTSMAN: Well, you know, we don't have a choice, Glenn. I think the history of

the world suggests if one studies the Romans and one studies the early Greeks

and one studies the history of the world, they all eventually falter if they

don't come back to the basic aspect of integrity and honor and feelings of love

one for another. I think of this great term that Churchill came up with

originally, that without integrity, nothing else counts. With integrity, nothing

else counts. And so what we're saying is in essence, we have to bring integrity

back into the lives of the nation, our leaders, our people, our individuals. And

if we don't, history has a way of changing events so that we will, and we must.

GLENN: People say it's God. It really is God. It's nature God sets up the laws

of nature and if you betray the laws of nature, after a while it doesn't matter.

He doesn't come and destroy you and punish you. You punish yourself because

you're out of the laws of nature.

HUNTSMAN: Well, precisely true, Glenn. And, you know, I've always felt badly for

people who said, well, there is no God, I don't believe in God. If someone does

not believe in a higher power and in the blessings of God and His son Jesus

Christ and I'm not trying to preach. I'm just saying my own beliefs it's sad.

It's sad to me because then what they believe in is themselves and money and

greed and how much do I get out of this world and how much can I take away from

it instead of, what can I contribute to it, what can I give to it. And you know,

I was so interested, Glenn, to see that most Americans today still give to

charity. More than any country in the world.

GLENN: I know.

HUNTSMAN: The United States of America.

GLENN: By far.

HUNTSMAN: Our citizens. And I found another interesting statistic. Those people

who make under $20,000 a year, they give an average of 4% of their income to

charity, whereas those who make more give an average of 2% to charity.

GLENN: Oh, my gosh.

HUNTSMAN: Isn't that interesting? So our people, good, are good, solid people,

but we have to give back into a belief in God, into a belief in each other and

into a love and sustaining of one another.

GLENN: I have to introduce you to a friend of mine, Rabbi Daniel Lapin. I don't

know if you've seen him on the TV show.

HUNTSMAN: I have, sure.

GLENN: He's been teaching me so much, and he's been trying to teach, in his own

way, the Old Testament to me in ancient Hebrew. Do you know what the word

"Love," how the word "Love" is described in ancient Hebrew? You know, the two

symbols, it takes two symbols to write the word "Love" in Hebrew. And the first

symbol is "I." The second symbol is "Give."

HUNTSMAN: Makes sense. Makes sense.

GLENN: So the definition of "Love," you can't say I love something. For

instance, I love turkey. No, you're consuming turkey.

HUNTSMAN: That's right.

GLENN: If you really want to know how God, in the only language that hasn't

really changed, Hebrew, if you want to know how God's change, you He described

love, it was "I give." So if you are giving, it is showing love. And I was

talking to Marcus Luttrell the other night about, you know, marriage and because

he just got married. And I said, when you just want to serve them, that's when

you know. That's when you know. Just, I just want to serve you. I just want to

serve.

HUNTSMAN: Charity faileth not and, you know, it's such a great privilege. In my

life it's been an interesting situation because born in a small rural town in

Idaho with nothing and then having the blessings of reaping a huge fortune and

giving it away or trying to give it away and having a lot of problems in our

life, you know. No family out there listening to this program, no matter what

their wealth is, will go through life without stumbling and falling.

Our youngest son is severely handicapped mentally. Our beautiful 44 year old

daughter died this past year, leaving seven little children. I've had cancer

four times. But you know, Glenn, God has blessed me, and I feel so honored and

so privileged in the blessings of life.

GLENN: You I have to tell you, Jon, in the last year and I'm going to go all

Gayle King/Oprah Winfrey on you here in a second. In the last year when I first

met you, I didn't know much about you. I just knew that you were a billionaire

and everything else and so I didn't know very much and I liked you immediately.

And I saw that you were a good, decent man. And as I saw your planes and your

homes and everything else, it would be very easy for me to say, wow, what a

life. Look at this. Man, wouldn't you like to be Jon Huntsman. And in many ways

my family and my friends have said that and I have said that. I mean, you know,

you lead, you lead an unbelievable life that very few humans have ever led. But

in this last year, Jon, I would never want to be you because I have learned and

that's what this show is about. I have learned the incredible cost that you have

paid not for your wealth, but you have I think for your integrity. I think there

is a cost. The opposition grows in strength, and you have handled it with such

grace and dignity. I don't envy any of your, any of your wealth. I envy your

integrity and I envy the way you've lived your life. It is remarkable,

remarkable life.

HUNTSMAN: Well, Glenn, you know, once again you've I'm overcome a bit by your

kindness, but I'm reminded when you say those things of my sweet mother. She

died very young of cancer and her mother before her died of cancer. But on my

mother's tombstone in a little Utah town are etched these words by Shakespeare:

Sweet are the uses of adversity. And I think of it so often is each of us in our

own ways, in our own hearts, in our own respective jobs or families, sometimes

we're alone, but we're going to be tested and retested by adversity and if we

can bounce back and if we can keep telling ourselves, I know I can make it, I

know I can make it. And you go out and you do something for someone else and you

try, you put your arm around them, don't feel sorry. Self pity is the worst

possible disease that can affect mankind. And if we do just the opposite, which

is love, then we have God's feelings with us at all times. And that's what

you're saying, Glenn. I mean, that's the only thing that's going to salvage this

great nation of ours is to get back to God again.

GLENN: Firm reliance on the protection of divine providence.

Rapper Kendrick Lamar brings white fan onstage to sing with him, but here’s the catch

Matt Winkelmeyer/Getty Images for American Express

Rapper Kendrick Lamar asked a fan to come onstage and sing with him, only to condemn her when she failed to censor all of the song's frequent mentions of the “n-word" while singing along.

RELATED: You'll Never Guess Who Wrote the Racist Message Targeting Black Air Force Cadets

“I am so sorry," she apologized when Lamar pointed out that she needed to “bleep" that word. “I'm used to singing it like you wrote it." She was booed at by the crowd of people, many screaming “f*** you" after her mistake.

On Tuesday's show, Pat and Jeffy watched the clip and talked about some of the Twitter reactions.

“This is ridiculous," Pat said. “The situation with this word has become so ludicrous."

What happened?

MSNBC's Katy Tur didn't bother to hide her pro-gun control bias in an interview with Texas Attorney General Ken Paxton in the wake of the Santa Fe High School killings.

RELATED: Media Are Pushing Inflated '18 School Shootings' Statistic. Here Are the Facts.

What did she ask?

As Pat pointed out while sitting in for Glenn on today's show, Tur tried to “badger" Paxton into vowing that he would push for a magical fix that will make schools “100 percent safe." She found it “just wild" that the Texas attorney general couldn't promise that schools will ever be completely, totally safe.

“Can you promise kids in Texas today that they're safe to go to school?" Tur pressured Paxton.

“I don't think there's any way to say that we're ever 100 percent safe," the attorney general responded.

What solutions did the AG offer?

“We've got a long way to go," Paxton said. He listed potential solutions to improve school safety, including installing security officers and training administrators and teachers to carry a gun.

Pat's take:

“Unbelievable," Pat said on today's show. “Nobody can promise [100 percent safety]."

Every president from George Washington to Donald Trump has issued at least one executive order (with the exception of William Harrison who died just 31 days into his presidency) and yet the U.S. Constitution doesn't even mention executive orders. So how did the use of this legislative loophole become such an accepted part of the job? Well, we can thank Franklin Roosevelt for that.

Back at the chalkboard, Glenn Beck broke down the progression of the executive order over the years and discussed which US Presidents have been the “worst offenders."

RELATED: POWER GRAB: Here's how US presidents use 'moments of crisis' to override Constitutional law

“It's hard to judge our worst presidential overreachers on sheer numbers alone," said Glenn. “However, it's not a shock that FDR issued by far the most of any president."

Our first 15 presidents issued a combined total of 143. By comparison, Franklin D. Roosevelt issued 3721, more than twice the next runner up, Woodrow Wilson, at 1803.

“Next to FDR, no other president in our history attempted to reshape so much of American life by decree, until we get to this guy: President Obama," Glenn explained. “He didn't issue 3000, or even 1800; he did 276 executive orders, but it was the power of those orders. He instituted 560 major regulations classified by the Congressional Budget Office as having 'significant economic or social impacts.' That's 50 percent more regulations than George W. Bush's presidency — and remember, everybody thought he was a fascist."

President Obama blamed an obstructionist Congress for forcing him to bypass the legislative process. By executive order, President Obama decreed the U.S. join the Paris Climate Accord, DACA, the Clean Power Plan and transgender restrooms. He also authorized spying in US citizens through section 702 of FISA, used the IRS to target political opponents and ordered military action in Libya without Congressional permission.

All of these changes were accepted by the very people who now condemn President Trump for his use of executive orders — many of which were issued to annul President Obama's executive orders, just as President Obama annulled President Bush's executive orders when he took office … and therein lies the rub with executive orders.

“That's not the way it's supposed to work, nor would we ever want it to be," said Glenn. “We have to have the Constitution and laws need to originate in Congress."

Watch the video above to find out more.

Six months ago, I alerted readers to the very attractive benefits that the TreasuryDirect program offers to investors who are defensively sitting on cash right now.

Since then, those benefits have continued to improve. Substantially.

Back in November, by holding extremely conservative short-term (i.e., 6-months or less) Treasury bills, TreasuryDirect participants were receiving over 16x more in interest payments vs keeping their cash in a standard bank savings account.

Today, they're now receiving over 30 times more. Without having to worry about the risk of a bank "bail-in" or failure.

So if you're holding cash right now and NOT participating in the TreasuryDirect program, do yourself a favor and read on. If you're going to pass on this opportunity, at least make it an 'eyes-wide-open' decision.

Holding Cash (In Treasurys) Now Beats The Market

There are many prudent reasons to hold cash in today's dangerously overvalued financial markets, as we've frequently touted here at PeakProsperity.com.

Well, there's now one more good reason to add to the list: holding cash in short-term Treasurys is now meeting/beating the dividend returns offered by the stock market:

"Cash Is King" Again - 3-Month Bills Yield More Than Stocks (Zero Hedge)
'Reaching for yield' just got a lot easier...
For the first time since February 2008, three-month Treasury bills now have a yield advantage over the S&P; 500 dividend yield (and dramatically lower risk).
Investors can earn a guaranteed 1.90% by holding the 3-month bills or a risky 1.89% holding the S&P; 500...

The longest period of financial repression in history is coming to an end...

And it would appear TINA is dead as there is now an alternative.

And when you look at the total return (dividends + appreciation) of the market since the start of 2018, stocks have returned only marginally better than 3-month Treasurys. Plus, those scant few extra S&P; points have come with a LOT more risk.

Why take it under such dangerously overvalued conditions?

If You Can't Beat 'Em, Join 'Em

In my June report Less Than Zero: How The Fed Killed Saving, I explained how the Federal Reserve's policy of holding interest rates at record lows has decimated savers. Those who simply want to park money somewhere "safe" can't do so without losing money in real terms.

To drive this point home: back in November, the average interest rate being offered in a US bank savings account was an insutling 0.06%. Six months later, nothing has changed:

(Source

That's virtually the same as getting paid 0%. But it's actually worse than that, because once you take inflation into account, the real return on your savings is markedly negative.

And to really get your blood boiling, note that the Federal Reserve has rasied the federal funds rate it pays banks from 1.16% in November to 1.69% in April. Banks are now making nearly 50% more money on the excess reserves they park at the Fed -- but are they passing any of that free profit along to their depositors? No....

This is why knowing about the TreasuryDirect program is so important. It's a way for individual investors savvy enough to understand the game being played to bend some of its rules to their favor and limit the damage they suffer.

Below is an updated version (using today's rates) of my recap of TreasuryDirect, which enables you to get over 30x more interest on your cash savings than your bank will pay you, with lower risk.

TreasuryDirect

For those not already familiar with it, TreasuryDirect is a service offered by the United States Department of the Treasury that allows individual investors to purchase Treasury securities such as T-Bills, notes and bonds directly from the U.S. government.

You purchase these Treasury securities by linking a TreasuryDirect account to your personal bank account. Once linked, you use your cash savings to purchase T-bills, etc from the US Treasury. When the Treasury securities you've purchased mature or are sold, the proceeds are deposited back into your bank account.

So why buy Treasuries rather than keep your cash savings in a bank? Two main reasons:

  • Much higher return: T-Bills are currently offering an annualized return rate between 1.66-2.04%. Notes and bonds, depending on their duration, are currently offering between 2.6% - 3.1%
  • Extremely low risk: Your bank can change the interest rate on your savings account at any time -- with Treasury bills, your rate of return is locked in at purchase. Funds in a bank are subject to risks such as a bank bail-in or the insolvency of the FDIC depositor protection program -- while at TreasuryDirect, your funds are being held with the US Treasury, the institution with the lowest default risk in the country for reasons I'll explain more in a moment.

Let's look at a quick example. If you parked $100,000 in the average bank savings account for a full year, you would earn $60 in interest. Let's compare this to the current lowest-yielding TreasuryDirect option: continuously rolling that same $100,000 into 4-week T-Bills for a year:

  1. Day 1: Funds are transferred from your bank account to TreasuryDirect to purchase $100,000 face value of 4-week T-Bills at auction yielding 1.68%
  2. Day 28: the T-Bills mature and the Treasury holds the full $100,000 proceeds in your TreasuryDirect account. Since you've set up the auto-reinvestment option, TreasuryDirect then purchases another $100,000 face value of 4-week T-Bills at the next auction.
  3. Days 29-364: the process repeats every 4 weeks
  4. Day 365: assuming the average yield for T-Bills remained at 1.68%, you will have received $1,680 in interest in total throughout the year from the US Treasury.

$1,680 vs $60. That's a 27x difference in return.

And the comparison only improves if you decide to purchase longer duration (13-week or 26-week) bills instead of the 4-week ones:

Repeating the above example for a year using 13-week bills would yield $1,925. Using 26-week bills would yield $2,085. A lot better (34x better!) than $60.

Opportunity Cost & Default Risk

So what are the downsides to using TreasuryDirect? There aren't many.

The biggest one is opportunity cost. While your money is being held in a T-Bill, it's tied up at the US Treasury. If you suddenly need access to those funds, you have to wait until the bill matures.

But T-Bill durations are short. 4 weeks is not a lot of time to have to wait. (If you think the probability is high you may to need to pull money out of savings sooner than that, you shouldn't be considering the TreasuryDirect program.)

Other than that, TreasuryDirect offers an appealing reduction in risk.

If your bank suddenly closes due to a failure, any funds invested in TreasuryDirect are not in your bank account, so are not subject to being confiscated in a bail-in.

Instead, your money is held as a T-Bill, note or bond, which is essentially an obligation of the US Treasury to pay you in full for the face amount. The US Treasury is the single last entity in the country (and quite possibly, the world) that will ever default on its obligations. Why? Because Treasurys are the mechanism by which money is created in the US. Chapter 8 from The Crash Course explains:

As a result, to preserve its ability to print the money it needs to function, the US government will bring its full force and backing to bear in order to ensure confidence in the market for Treasurys.

Meaning: the US government won't squelch on paying you back the money you lent it. If required, it will just print the money it needs to repay you.

So, How To Get Started?

Usage of TreasuryDirect is quite low among investors today. Many are unaware of the program. Others simply haven't tried it out.

And let's be real: it's crazy that we live in a world where a 1.68-2.09% return now qualifies as an exceptionally high yield on savings. A lot of folks just can't get motivated to take action by rates that low. But that doesn't mean that they shouldn't -- money left on the table is money forfeited.

So, if you're interested in learning more about the TreasuryDirect program, start by visiting their website. Like everything operated by the government, it's pretty 'no frills'; but their FAQ page addresses investors' most common questions.

Before you decide whether or not to fund an account there, be sure to discuss the decision with your professional financial advisor to make sure it fits well with your personal financial situation and goals. (If you're having difficulty finding a good one, consider scheduling a free discussion with PeakProsperity.com's endorsed financial advisor -- who has considerable experience managing TreasuryDirect purchases for many of its clients).

In Part 2: A Primer On How To Use TreasuryDirect, we lay out the step-by-step process for opening, funding and transacting within a TreasuryDirect account. We've created it to be a helpful resource for those self-directed individuals potentially interested in increasing their return on their cash savings in this manner.

Yes, we savers are getting completely abused by our government's policies. So there's some poetic justice in using the government's own financing instruments to slightly lessen the sting of the whip.

Click here to read Part 2 of this report (free executive summary, enrollment required for full access)

NOTE: PeakProsperity.com does not have any business relationship with the TreasuryDirect program. Nor is anything in the article above to be taken as an offer of personal financial advice. As mentioned, discuss any decision to participate in TreasuryDirect with your professional financial advisor before taking action.