JPMorgan Chase CEO Jamie Dimon warned at the Barclays Global Financial Services Conference that the U.S. is "spending money like drunken sailors around the world and that an economic "soft landing" is probably not coming. Glenn reviews the real state of the economy and insists that Congress must stop the spending before it's too late. He also argues that every presidential candidate needs to be asked what they would do to curb inflation. Is any candidate willing to dramatically downsize the government? Glenn and Stu discuss.
Below is a rush transcript that may contain errors
GLENN: Jamie Dimon.
He has -- he has been warning about the risks to the economy.
He just was speaking at the Barclays global financial services contract. Conference in New York.
All of the best people are there. It's -- it's unbelievable. We went to New York. And there's these places called delis. And they have all kinds of sandwiches.that regular people eat. Oh, I felt like I was a regular person. Anyway, at the global financial services conference, Jamie Dimon said, you know, I've been saying that there's some headwinds coming. Kind of like a tornado is coming. Including, geopolitical tensions. Government spending. Monetary policy tightening by the central banks. And our government has been spending money like drunken sailors around the world. And that -- drunken sailors. You need to -- you know, I -- I -- I just want to say. This government, people claiming that they spend like I spend.
I don't spend like that. That's an insult.
To say the consumer is strong today means you will have a booming environment in the days ahead, a huge mistake.
He said, all this talk of a soft landing, is probably not coming.
And, you know, so there you have it, from an expert. In you let a boob tell you.
We're in a good part.
Okay. All right.
If we are -- speaking of Corn Pop. If we were popcorn, not the same as one bad dude, corn pop. Same letters. Just -- just -- okay?
If we were popcorn, the economy was popcorn.
It is still in the cupboard, waiting for you to go get it, and put it in the microwave.
That's how far along the line we are in this tough financial system we're in. Maybe it's been taken out. And you're like, I have to open up this plastic bag. It may be there.
STU: Yeah. And they're telling you, hey. Don't you want to eat some popcorn?
And you say yes. Because you like popcorn. Then they give you the colonels, and expect you to chew them.
You know, without them ever popping. This is a -- you're ruining your teeth with this particular.
GLENN: He said, everything that is being done right now, we will not see the full effects of for 12 to 18 months from now. So all of the spending that's going on, and, by the way, next hour. I am going to go into what we're doing in Ukraine. It is, to me, it is the clearest case of corruption. Of why the impeachment matters. What was that really all about? The lies of, we've got to fight Russia now. Otherwise, we will fight them later.
I'm reading this book on the -- on Kennedy.
And his problems with the generals, and all the neocons.
And one of the main generals, that was in charge of, I think it was a strategic air command. SAC.
You know, he's revered in the military. He actually wrote and said, in the 1960s, like 1961, it's inevitable, that we will have a nuclear war with Russia.
We should do it now.
And he actually -- they found out later, he was actually doing things, without the president's knowledge or anybody else, to provoke the Soviet Union, so they would start to gear up. And we would have the excuse of a first strike.
But his words were, it's inevitable, we will have to fight a war with them. We should fight it now, otherwise we'll be fighting a worse one later.
The same thing!
And as I'm reading that, I'm thinking, this is insanity. Whoops. We're doing the same thing right now.
STU: Similar thing happened in Spies Like Us, with Dan Aykroyd and Tim Chase. Almost the same. Same risk. And I think we need to take it seriously.
We've been warned for decades. And no one is taking this seriously.
GLENN: DeSantis said, yesterday.
If this is what -- he was asked on the CBS Evening News.
Which apparently is still on.
He said, he was asked, what would you do for inflation?
He said, I love this. Stop spending so much money!
Yeah. That's his first -- stop spending so much money.
And then open up domestic energy production. Those two things alone. But I honestly.
STU: Just those two.
GLENN: Not enough. But a lot.
Every candidate needs to be asked this. I have not heard Donald Trump give a real answer to the question of, tell me about inflation. What causes it?
And how would you stop it? What would you do it turn the economy around?
And, you know. We know.
Well, we will do what we did before. No, no, no. You can't now.
Because we have $8 trillion, is what you added to the debt.
We're there in spades now, just in -- you know, by the end of this one, it will probably be 10 trillion.
STU: He didn't discuss this with Megyn Kelly yesterday?
GLENN: I didn't see the Megyn Kelly interview either.
STU: I know Megyn does a great job with this stuff.
She's very good at doing this. I'm very interested to watch it. But I wonder if it was addressed at all there.
GLENN: I wonder. Because I want a real answer from him that. Want a I real answer.
The next president is coming in, if we don't -- you know, hopefully, we have least corn pop.
But the -- if there is a change, and there will be one way or another. Because he ain't making it longer.
What is the plan for inflation?
Because this is not good. And the only plan, that should be considered right now, is one, stop the spending.
Stop it. You -- you are being robbed.
They're now saying, their target is 3 percent inflation.
Why would we put up with that. The fed targeted 3 percent inflation.
I lived with that my whole life. Why? Why should there be inflation.
Why are you inflating the money 2 percent every year?
If you do three percent, in 10 years, I've lost almost 40 cents of every dollar. No. No.
Well, wages are -- are rising. At the same pace of inflation?
I don't think so. That's why everybody is short. And this is going -- you're going to learn about hyperinflation, the worst possible way. One of these days soon. Vivek -- Vivek said, I don't know why I say Vivek. Like cake. I know.
Vivek has said that he is going to cut 75 percent of the federal workforce. Fifty percent of those cuts will be made in his first year.
STU: I mean, he knows what to say.
GLENN: You had me at hello.
STU: Yeah. It's very Coolidge-esque.
GLENN: But Coolidge did it.
STU: I know. He cut 50 percent of the federal budget. What was it? One year?
GLENN: One year. Then the next year, he did another 50 percent. I mean, that's crazy.
STU: Again, very similar to what Vivek is talking about. Would he actually be able to do that?
GLENN: I don't know.
STU: That's the thing with Vivek's campaign. A lot of people are saying, he's promising too much. He's throwing this stuff out here. But he is being bold.
GLENN: This is what has to be done. We're at the time where we all knew this was coming. JFK talked about it.
FDR talked about it when he first passed Social Security, and said, these things must be paid for along the way. Otherwise, it will get out of control, and we'll never be able to pay it. It could be the ruin of our country. JFK said that. Ronald Reagan said it. We're there now. All of these entitlements, because we didn't actually have the money, we put it on to a debt sheet. And just our interest is going to kill us. It's going to kill us.
You've got to make massive cuts, right now.
And, by the way, you want to stop the Deep State? Cut 75 percent out.
Now, here's the one thing that I have said for a long time. And I will leave it at this. My free gift for Vivek and anybody who wants to use it. I really care about the real estate market. I really care. We will make some moves, that put the free market back in place.
And so your real estate. I -- I am going to make sure, that everything I can, to make sure it's a free market. So everybody can afford it.
Except in the Washington, DC, area. Your real estate is going to plummet, the day I'm elected. You might want to consider selling it now. Because there's going to be plenty of housing available, in the Washington, DC, area. Because I am going to fire 75 percent. Everybody else, don't worry about it. You live in the area. Around the Capitol, prepare for a -- a hemorrhaging on the price of your home.