RADIOJuly 10, 2024

Who Doomed the Petrodollar: America or Saudi Arabia?

There has been a lot of confusion lately about Saudi Arabia allegedly ending a 50-year-deal with the United States. The "deal" tied oil sales to the US dollar. But many have claimed that the deal never actually existed. So, what's really going on here and should Americans be worried? Financial expert Carol Roth joins Glenn to break it all down, including why she believes the United States and our Federal Reserve are really to blame for the petrodollar's destruction. Plus, Carol explains why the Biden administration can insist the economy has never been better, although our wallets can tell the opposite is true.

Transcript

Below is a rush transcript that may contain errors

GLENN: Before we get to Carol, I want to give you some highlights from this Blaze media. And TheBlaze.com story.

Biden's phony numbers mask true economic pain. The official government numbers in the US economy have been contradictory and confusing for quite a while now.

What is clear upon closer examination, is that the federal government's overspending and overregulation are doing serious damage to the economy.

And we have yet to see the worst results of those policies.

The unemployment increase, seems to contradict recent signs that the economy has been weakening. In addition to the conflicting rise in unemployment. Other signs of deterioration. Include stagnant retail sales.

A slowing of consumer spending. Weak industrial product. Manufacturing orders. Increasing consumer debt.

Depressed by new housing starts. Falling annual earnings of full-time employees. And rising commodity prices. The Federal Reserve chairman, Jerome Powell, knitted, he believes the White House has been cooking the books.

This is the fed chair. Stating last week, you have payroll jobs, still coming in strong.

Even though, there's an argument, they may be a bit overstated. The only job growth, in the US, is for illegal aliens. Listen to that.

The only job growth in the US, are for those illegal aliens, who will work for below minimum wage. Which also explains why inflation hasn't spiked in the past year, as millions of illegal aliens were hired.

Legally resident American workers saw no job increase in the past year. And unlawful residents, willing to accept wages Americans can't are dragging everything down in the wage category.

With employment continues for American workers stagnant at best, the job market is another indicator that the economic growth is slowing, and the Federal Reserve should lower interest rates to reduce its suppression of economic activity.

However, they decided not to. Because it will -- it will spike inflation again.

The markets have already priced three expected interest rate reductions for the year.

However, suggesting a correction is in order.

Even so, the stock market stayed steady after the fed's interest rate announcement with the Dow falling slightly.

And the S&P 500 and NASDAQ, rising to new record highs.

Economist Robert Genetski. Genetski, calculates that the S&P 500 is currently overvalued by 34 percent.

If investors decide the market is near peak and start selling, taking their profits before prices, fall. There is more trouble.

This overspending continues from the federal government, as well.

In the first eight months of the current fiscal year, the current government has already accumulated more than $1.2 trillion, in additional debt.

With a staggering deficit of $348 billion last month alone.

Investors were reportedly believed the US economy is about to enjoy a significant expansion, because of AI.

That's boosting the stock markets. The shares in tech companies. Chip makers. And even utilities.

The government's stimulus injection may be waning, and the Fed's interest rate hikes are starting to bite, as indicated by the slowing housing and manufacturing production.

Higher interest rates hinder business from investing in production and consumers from spending on goods.

That support those businesses. Additionally, the Biden administration has implemented a regulatory program, that will directly cost the economy 3.95 trillion dollars in 2025.

And indirectly result in a staggering 75.05 trillion, in opportunity costs, for 2025, alone.

That might take a bite, no matter what AI is going to do.

Carol Roth is here with us.

Carol. Are we beginning to see all of the signs of the wheels coming off of this thing?

CAROL: I think we've been seeing the signs of the wheels coming off of this thing for quite some time.

And they're sort of hanging on by a thread.

Now, certainly, a lot of the numbers that are put forth. Are meant to window dress, and say, oh, no.

The wheels are still turning. And they're doing just fine. And they will last for a while.

We have seen cracks, and when you peel back the onion. And you look at things like the deficit to GDP, which are about two times the historic average at a time when they're telling us, there's an expansion. We know there's something wrong.

Because normally, when you have an expanding economy, that means you're taking in more revenue at the government level. And that means you're running less of a deficit because you have more money input.

What's happening now is the Biden administration has flipped that on their head. And they're using deficits to window dress the appearance, that we have growth.

And we're seeing that start to crack. Because even that, you know, window dressed growth is starting to come down.

We saw the first quarter GDP come in, almost a percentage point lower than expectations.

A first reading. The second reading was even lower.

So now, as of the second reading. We're at 1.3 percent. For the first quarter. And we're expecting a third reading.

And things keep getting revised and revised.

So all of the, you know, appearances that they're putting forth. And to make it seem like everything is looking great.

We've seen those cracks. And they're just becoming larger and larger.

GLENN: So do you think that there's any way possible, that anything, excuse the pun here, Trumps the economy.

I mean, they always say in elections.

You know, it's the economy, stupid.

And no matter how you window dress this.

Everyone knows, I don't have as much money, or my money doesn't go as far as it used to. And I'm having a hard time keeping up.

At almost every level, this is happening.

VOICE: So this is an interesting question.

There was a Monmouth poll, that came out yesterday.

That showed, far and away.

That the economy was the biggest issue.

You know, number one issue on people's minds.

But there's a disconnect by party. And obviously, when you have the -- the Republican side, and I would think to some extent. The independents as well.

There's more of a connection with the -- with the fiscal reality that's going on. And it becomes, you know, we believe so afford literally four more years of that.

There's a disconnect from the Democrats who don't believe in mass and reality anyway.

And so even though, they may be hurting, personally. They're going to make excuses. And say that it's for, you know, any sort of litany of other reasons. And it doesn't have anything to do with these specific policies, that we know have driven these outcomes.

You know, there's weather it's things like the American rescue plan. And they direct stimulus. That's literally called stimulus.

That overstimulated the economy. And caused inflation.

They're going to tell you, oh, no. Look, inflation has come down. Even though, they're still going to the same grocery stores, the same gas stations. Having to pay the same rent. And they're believing and buying into the gaslighting.

So that's my concern.

Is when you have so many people who are decoupled from reality. And can fed the propaganda that's gaslighting. And they're willing to -- basically, you know, they're cults. That that is not going to show up in the polls. The way that it should. If we were operating, you know, with some sort of normal baseline.

GLENN: Carol, I'm going to take a quick break, early here.

Because I don't want to interrupt you on this petrodollar thing.

Because I have seen stories that say, this is true.

Stories that say it wasn't true. I don't think there ever was a -- there wasn't a concrete deal. It was more of a handshake with Saudi Arabia. With the petrodollar. Wasn't it?

Or did we have a written deal?

CAROL: That's right. So I was surprised when I saw this as well. You know, I wrote about this in You'll Own Nothing. We have a whole chapter on it.

And there was a deal put in place. But never once did I come across anything that said, we have a specific expiration. But we know deals that, you know, are made. Can be shifted and changed at any point in time.

And I think that's the point we want to talk about.

GLENN: Correct.

Okay. So we'll do that next.

Because the petrodollar. If the world goes off the petrodollar.

That is -- that is the beginning of the end of the dollar.

It's just a matter of time. And what are people replacing? It with?

And so far, central banks are not replacing it with any currency at all.

We'll talk about it here, in just a second.

Okay.

So, Carol, explain why the petrodollar is so important.

VOICE: All right. So there's this story that was going around last week. That the Saudis had ended this agreement, that had been put in place in the '70s.

So what happened was that when the US went off the gold standard, they were very concerned over what was going to happen. So they created this secret delegation, that went to Saudi Arabia.

As part of a diplomatic chore. And there was a lot of chaos going on at that time. Not only did we go off the gold standard.

There was an oil embargo put in place by the Arab oil exporters. That set the price of oil sky-high.

So the big objective, was basically, they -- the US didn't want crude oil.

You know, energy. Which is obviously really what fueled growth around the world, to become an economic weapon.

And they knew they knew, okay. Well, now we're off the gold standard.

We had the currency. Wouldn't it be great to have somebody to finance their deficits?

So what they did, is they went to the Saudis. And they said, well, look, you come. You take -- you're going to agree to basically price oil in dollars.

And that's -- around the world, oil is going to be priced in dollars. And you will have all this excess money.

We want you to plow that back into US treasuries. Everything that you get in. We want to you plow that back into treasuries?

Why did they want that? Because that obviously helped the US finance their deficits at a very cheap rate.

He said with be okay. We'll do that. What we want in return, basically some economic and military support. And so they made this -- this deal. That was brokered.

The interesting part is there was a secret piece of it, and that was that the Saudis did not want everyone to know, that they had this huge Treasury stockpile. So for more than four --

GLENN: Why?

Wait. Wait. Wait.

Why didn't they?

CAROL: Because they must want everyone to know that this was sort of the underpinnings of the deals of how closely they were in bed, with the US.

GLENN: Okay. With the US. Okay.

CAROL: And that this is what they did. So this was actually uncovered by a Bloomberg report.

So for 41 years, what the US Treasury did when they broke out what central banks held the US Treasury, and you can go see if China holds this. Japan holds this.

They lumped Saudi Arabia in with 14 other nations. So basically, you could see, oh. We cut this special deal, and now it looks like now, that there's all this wonderful demand for treasuries around the world.

And it was kind of unclear that there was this alliance going on.

So what does that do? It creates a massive demand for the Treasury, because not only are the Saudis in there as huge buyers, but when you have -- you know, sort of a de facto basis. The oil price in US dollars. Then every other central bank will also want to make sure that they have a stockpile of a dollar equivalent security. That if they need dollars, they can cash in.

Of course, as opposed to holding actual dollars. When you hold the Treasury you do get some income. Or you get an interest rate. So basically, this has created huge demand for Treasuries. It means that the interest was artificially suppressed by that demand. And that the US government was able to finance their deficits.

It also meant that trade around the world, was done, you know, US dollars. So not only are these central banks, holding them in the reserves. There's all this trade that's happening in US dollars.

So this actually worked out for quite some time.

The Fed holding basically the world's reserve currency. And managing it. They held the US dollar fairly stable. When you saw the price of gas go up. That they would loosen monetary policy.

And when it was too low. They would tighten it, that they would stay in some sort of a range. Sometimes that was at odds with what was going on domestically.

But as the holder of the world's reserve currency, that was their job.

GLENN: Hang on just a second. Stop for just a second.

I just want to make the point: This is right now, where we're about to see the change, and it's not happening now. It's already happened.

We -- when we got off the gold standard. We promised the world, we will never put ourselves, you know, absolutely first. And go off, and do crazy spending.

And, you know, just break everything for America.

And that's why, it was at odds, sometimes. The fed's policies.

Were at odds.

With the United States policy.

Or -- or -- wants and needs.

Because they had to balance it for the world.

And then what happened, Carol?

CAROL: Yes. So for the economic wonks out there, that's called the Triffin dilemma. You sometimes have to make these tradeoffs between what happens domestically and what happens internationally.

What happened, if we come back to today, is that the Fed has managed to hold the dollar, not stable.

Either for the world, or domestically. So it's not like they even made the tradeoff.

They just abandoned it altogether. But going back to 2005, they decided when the price of oil shot up due to China's increase in demand.

Hurricane Katrina, a whole bunch of things. That they just weren't going to play this game anymore, and that's when things started to crack.

Then we had the Great Recession financial crisis, and so on and so forth.

And the US government continuing to run these huge deficits.

And just, you know, creating a really challenging situation, economically.

So the big issue, if you are these countries around the world. That now have everything priced in dollars.

All your major commodities.

It's not just oil.

It's then extending into food.

Everybody is trading into dollars.

When you have these huge swings in the dollar, that means, that threatens as a nation.

Because now you may not be able to afford energy.

Or you may not be able to afford your food for your country.

That's a national security issue.

GLENN: Forty seconds.

CAROL: Countries are getting sick of that. We weaponize the US dollar. And at the end of the day, they're starting to move away from it. Which threatens our ability to have cheap financing and our standard of living.

GLENN: And so the Saudis did not break a deal.

We've broken the deal long ago.

And they're just all doing what would normally be done. It's no longer good for me.

It's got to be good for both of us.

And so they didn't stop the deal. They're just naturally moving away.

And it's -- the money is going to gold, not other currencies at this point. Correct?

CAROL: Correct. You got it. You nailed it.

The REAL Reason Zohran Mamdani Is CRUSHING NYC's Mayoral Race | Glenn TV | Ep 465

A deadly epidemic has reached crisis levels across the United States. Two death cults — radical leftism and political Islam — are openly battling for control of our nation. Look no further than the New York City mayoral race for proof. It exposes a dangerous alliance of radical leftists, socialists, anarchists, and Islamists united in one toxic coalition to get Zohran Mamdani elected. But Glenn Beck argues these groups aren’t the root cause — they’re symptoms of a deeper crisis: a catastrophic lack of education. Plus, Glenn gives a front-row seat to his full remarks at his Mercury One charity event, where he reveals why he’s launching the Torch — a new mission to fight back with truth, history, and critical thinking.

“Ungodly Atrocities!” - The War on Christians in Africa that the Media Ignores

Thousands of Christians in Nigeria are being murdered, and the world is barely paying attention. Glenn Beck speaks with Rep. Marlin Stutzman about his new bill with Senator Ted Cruz: The Nigeria Religious Freedom Accountability Act. This legislation would sanction Nigerian officials enforcing Sharia law and target those allowing violence against Christians. Boko Haram and radical jihadist groups have killed over 125,000 believers, destroyed hundreds of churches, and enslaved women and children as global leaders remain silent. Beck and Rep. Stutzman expose the truth about this ongoing genocide and call for urgent action to protect the innocent and defend religious freedom.

Transcript

Below is a rush transcript that may contain errors

GLENN: Marlin, welcome. How are you, sir?

MARLIN: Hey, I'm doing great, Glenn. Great to be with you.

GLENN: Yeah, I wanted to talk to you. You and Ted Cruz are introducing something today. And it is to protect the people in Nigeria. The Christians in Nigeria. Before you get to the bill, explain to America, what is happening that very few people are even aware of.

MARLIN: Yeah, no. You know, we've been focusing a lot on the Middle East. And there's obviously, you know, Christians and Jews and other sectarian groups in Syria that have been killed. Of course, the conflict in Gaza. But here in Africa, in Nigeria, since 2009, Boko Haram has killed 125,000 Christians, and the jihadist groups that are there are destroying hundreds of churches every month.

I mean, this is bad. I don't know if you have a chance. There's a video that's been floating around social media. Where the pastor, that's standing over some dead bodies in an open grave, and he's just pleading for help. And especially, particularly America. And so there's been a real genocide of Christians in particular, in Nigeria. And it's just a tragic situation that's going on there right now.

GLENN: Well, I know that the Nazarene Fund has been trying to get there for a while. But it is -- it's one of the most dangerous places in the world.

You know, Boko Haram is -- is really, really very dangerous. And it's not just this. I think in just since Trump has gotten into office, 7,000 Christians have been killed, and almost 8,000 Christians, women and children have been abducted. And they have been sold into slavery.

So, I mean, the -- the -- problem is just ungodly.

Ungodly. What does your bill do to stop this?

MARLIN: Yeah. So the Nigeria Religious Freedom Accountability Act, which is also sponsored by Senator Ted Cruz in the Senate. It targets sanctions on officials, in that country, who would enforce Sharia law, and would allow for any sort of violence against Christians. And also designates Nigeria as a country of particular concern for the administration to focus on this. And I think that this is -- has gotten some attention lately, in a really fast way. And I'm -- my hope is that we just keep building this momentum.

You know, one of the things, Glenn. I was really glad to see you in Fort Wayne and Auburn a couple weeks ago.

And as we talked a little bit about religious freedom, I think this is the issue that we all need to be focused on.

GLENN: It is.

MARLIN: Here in America, and as well as around the world, because if you don't have religious freedom, you don't have economic freedom.
You don't have all the other freedoms that we enjoy.

Because if you're going to allow jihadists to come into the country. And -- and just extinguish those they disagree with.

This is not the way humanity should behave, at all.

This is not stability, at all.

And so that's why this -- this is going to target those, hit them in the pocket. And hit them hard.

And I don't want to see us using the United States military, the police force around the world.

But we don't have to. But we can hit them with financial consequences. And that's what this bill does.

GLENN: Well, and I know.

And I don't want to give out any information, until it's time to give out information. But we're getting involved as well.

And I hope to be there in the first quarter of next year. Bringing this story to America.

Firsthand, so you can see what is going on.

Because I just -- I'm very concerned with everything that's happening around the world, including in Europe.

And what I think is coming here.

I mean, Texas. People in Texas, have no idea.

We are leading the -- the nation on -- on Sharia law. Building -- you know, communities. Here in Texas.

And the -- the state government is finally getting serious about it.

And they really need to.

But I think this -- this Sharia law thing, it is going to be the next big battle of the West.

MARLIN: Uh-huh. Yeah. Yeah.

No. I think you're right. And that's the thing, where with the -- the Muslim countries in the Middle East. Like the UAE, they have religious freedom. That's the model that we should be following.

GLENN: Yes.

MARLIN: That's why Syria is so critical right now. Syria is on this edge, where it could go one way or the other. And it really needs to -- we're pushing very hard for the new president there. Al-Sharaa to -- to allow for religious freedom.

Because there's -- it's a very diverse country. But, I mean, if you look at Africa, Christianity is growing in Africa, and I'm really good friends with Daniel Edah. He is running for president of the Benin in Africa. Wonderful, Christian man. And, you know, there are leaders that are stepping up in Africa, saying, we've had enough.

And they're speaking out. But now, the jihadists and the extremists are coming in. And trying to, you know, put the fear in them, by killing them and extinguishing them. And that just should not be allowed.

The global -- I mean, the global community needs to come together and say, you know, not in Africa. I mean, if we all know Africa's struggles for centuries, there's -- there are people there, that are really trying to build up that continent. And if this is allowed to happen, it just can't happen.

GLENN: I have to tell you, I've seen more real Christians, in the Middle East, than I've seen anywhere else in the world.

These -- I mean, these people know what their faith is. Because they're threatened. Their life is threatened all the time. All the time.

What MASSIVE Amazon layoffs could do to America

Amazon, who famously promoted a high hourly rate to gain workers, is now set to eliminate 30 THOUSAND jobs in favor of artificial intelligence automation. This is a prime example of how artificial intelligence can be used in a negative way, and Glenn doesn't think American citizens will take too kindly to this...

Transcript

Below is a rush transcript that may contain errors

GLENN: I want to talk to you about the story that I saw today. Bill Gates says climate change will not lead to humanity's demise. Pardon me?

Wait. Hold on just a second. Let me go back into the records here, and see. Let's see. What has he said? 2015. Climate change is a terrible problem, absolutely needs to be solved. Deserves to be a huge priority. It is the poorer people in tropical zones, who will get hit by climate change, as well as some ecosystems nobody wants to see disappear. The threat of climate change is dire. He said that just two years ago. It will be the greatest challenge the world has ever faced.

We must take it on. We must reach net zero emissions by 2050, to avoid a climate disaster. 2021, to avoid climate disaster.

We need to eliminate emissions from the ways we create electricity, grow food, make things move around, blah, blah, blah. No one will be hurt more by climate change than the world's poorest people. It's already worse than most models predicted.

To prevent climate change scenarios, we need breakthroughs. In key areas. He's now put billions of dollars behind the climate change movement. Now he says, not so bad!

Not so bad! Not so bad!

What the hell just happened?

Okay. What just happened. On a completely unrelated note, let me give you another story today. Amazon, the first company to say, $30 an hour! You come on in, and work in our warehouses, is $30 an hour.

30 is an interesting number, because they just laid off 30,000 people. Why?

Because they're going AI. Okay?

It's all going to be automated. Everything. This is the first -- this -- warning. This is the first -- what do you call that aftershocks, when you get the rumbles before the big earthquake?

You know, it's like pre-shock. Just the quick, quiet, very low on the Richter scale rumble. And you're like, what was that? What was that?

That's an earthquake coming. Things starting to shift. Just a little bit. Not the big one yet. Just a little shift.

STU: Chooses to use the term birth pangs for this.

GLENN: Yeah, birth pangs. Birth pangs are the things you have -- you're just having that first birth pang. Thirty thousand people laid off.

Now, remember, gosh. Think of the money they're saving, because they were paying everybody $30 an hour. Because they were such a great company. They care about people. Until they could replace all the people.

Now, why am I bringing that story up. Next to the Bill Gates story about climate change.

What do those stories have -- what do they have in common at all?

Power! And I don't mean just political or economic power, absolutely. That goes without saying. I mean, energy. The world is starving for energy.

I've got a story for you next hour. And I'm going to show you exactly where you have to be, whether you're for climate change -- you know, we've got to go all green, or we've got to go all in, on server farms. One way or another, I will tell you what you have to do, and it is imperative that you do it, next hour.

But here's what snapped together today: We have been seeing this movement, and I know that the world is about to change, and our system doesn't work. The two parties don't work. It doesn't cover everything. We have been fighting over communism or fascism. Both of them are wrong! Okay. They don't work.

And they've been sold exactly the same way, over and over. Except, global warming. Global warming has been the one thing that has not been out and out Marxist, until it had to be.

And then you're like, okay. All right. We want people to -- we want people to die, because it will save the earth. So we're absolutely, you know, antigrowth.

Okay?

Pretty easy to see what side you are on. At least for me. Pretty easy to see what side you're on.

I am for growth. I am for technology.

I am for an end to this global warming nonsense. Except, I am also pro-earth.

I think we have -- we have a responsibility to make sure we do things that are right for the earth.

I am absolutely pro-pharmaceuticals. Until I'm not pro-pharmaceuticals. Because I think the pharmaceutical companies have gotten out of control.

I am absolutely for doing everything we can, with our farmers, to be able to have them grow and grow food to feed the world. Until we start screwing with the food so much.

It's not really even meat anymore. And we don't really know where it's from. So am I for big ag, or against big ag?

Because I like parts of it. I don't like parts. Am I for the pharmaceutical companies, or against the pharmaceutical companies? Because I like the pharmaceutical companies, until I don't like the pharmaceutical companies.

Am I -- am I for the planet, or against the planet?

I like AI. But I'm also terrified of AI. Am I for AI or against AI?

I am for jobs. I am for people. So how can you be for people if you are AI?

Do you see how none of this works? Do you see how you are -- you are literally. We are already dividing ourselves into. We're being pulled apart.

I don't know. I have another thing I will do next hour. After I tell you the other thing next hour. Hope to get to this other thing. Where you don't know what the truth is anymore.

We are pulling ourselves completely apart. Right?

You don't know what the truth is. You don't know what to believe anymore.

Did Erika kill her husband Charlie Kirk? Please! But there are a lot of people that don't know. They don't know the truth. Why? Why don't they know the truth? Because people who don't believe in anything, will fall for everything! And we don't know what we believe anymore. We going to elect Mamdani?

Yeah. Yeah. Yeah. New York is going Marxist.

Maybe Islamist to some degree.

It's going that way. It's going to happen. So how is that going to work?

Hmm. I brought in a chalkboard. Because I was explaining this to Stu. And, Stu, I want you to help me with this.

Because as I was laying this out for you. It's because -- I want you to know. I divided this chalkboard into two categories. And they are not good or bad.

They just are. Okay? Because there are things that I like on both sides of the chalkboard. But I'm going to show you what you're going to be asked to choose from. Because these are how these two sides are going to end up in the end.

STU: Sort of like a great realignment?

GLENN: Yes. Yes. Okay.

STU: Okay.

GLENN: So on one side, we're going to have the global warming people. Well, I'm not for the global warming people. Because that's all degrowth. Right?

I'm not for that. I am for workers.
And I am kind of anti-AI. I don't want AI to take over everything and control everything.

STU: Right.

GLENN: Correct?

Right?

But at the same time, I am AI and tech driven.

I just announced something with AI, okay?

But I am for ethical AI. Global warming and degrowth?

No, I'm for drill, baby, drill.

But I am -- I am big business. But I'm not big business.

I believe in capitalism. I believe in ethical capitalism. But I don't mind big business. But I have a hard time with, I don't know. Some of these AI companies like Google and everybody else, that now seem to be in better with our government.

I don't want them in bed with our government.

STU: I was going to say, you mentioned Amazon, Amazon is a good example of this.

It's a company that is obviously, very much big business.

Also, seen as capitalism. So do you like that, do you not like that?

There are things that I like about Amazon. There's things I don't like about it.

GLENN: I don't like that. I don't like the fact that they're the government's server farms? I don't like that.

Big Pharma, there's lots of it I like. There's lots of it I don't like. I don't like control and digital IDs.

STU: Uh-huh.

GLENN: I'm anti-Marxist. That drill, baby, drill side, that's anti-Marxist. But it also leans globalist. I'm against that.

But it is for abundance. Growth, growth. Growth.

Abundance. Right?

On the other side, and I'm showing you how these things will line up.

The other side is global warming and key growth. Because it's also going to be pro worker. Anti-AI, anti-capitalist, Marxists.

But it's going to deemphasize degrowth and Marxism. It will be for real food. It will be MAHA. It will be local. It will be free trade. But not really.

Fair trade? Maybe. Maybe.

STU: Yeah.

GLENN: It will be --

STU: This classic free trade seems to align more with the other side.

GLENN: In the end, it will be a local farmers market. In the end, you will need to trade with one another, the way you want to trade. Okay? That's wait it will be sold. And it will be 15 minute cities. It will be 15-minute cities. Because the rest of the world is going to be AI, digital IDs, globalism, tracking everything, and this will be the anti-vat.

And so they will say, I will live in the 15-minute cities.

Remember, it will be growth and Marxism. But it will be packaged in a way, that we don't want to be that. We don't want to be that.

So I'll live in my 15-minute city. I don't need all of that technology. I don't need self-driving cars. I would rather know my neighbor. I would rather walk down the street, get my food, that I know I -- I know I get.

But I won't be able to do those things. But I don't want to do all those things with because I don't want to have the digital ID. Okay?

What you're going to get on one side, is in the end, going to be globalist and fascistic.

Global fascism on one side. The other side will be Marxist de-growth. These -- what I'm presenting to you, is pretty much especially on the Marxist de-growth side, the global warming side. That's going to be a utopia that will never survive. It will never survive. But that's the utopia that people are going to be offered. They are now going to be -- because global warming is now starting to be -- you know, a no-go zone.

It's going to be changed, and it's going to become pro-people, anti-tech, anti-big tech corporations.

It's going to become about anti-pharmaceutical companies. It will be about real food. It will be about health and MAHA. It's going to be about all the things that you probably go, I'm kind of for that stuff.

And the other side is going to be the other side of you that you're for. Well, I'm for capitalism. I'm for progress.

I'm for abundance. I'm for, you know, having energy.

This is the split, that is coming.

And I believe the Marxist global warming side is going to be extraordinarily appealing to a lot of people.

You may even have a -- right now, you'll hear this and go, I'm never going there.

Mark my words. It's going to be very difficult to see the difference of right and wrong.

Because everything is going to blur. On you.

Things that you think you're for, they're suddenly going to be for.

But are they actually for that? And that goes to both sides of this issue.

Because what's not on this chalkboard is the US Constitution.

This is the way the world will split. These are the choices, you're going to make.

Which way do you go?

There is a third way. And it's the US Constitution. That's not on the board. Because right now, that's not popular. No one is talking about it.

The hidden culprit behind rising electric bills

Electric bills across the country are still going up, despite the prices of things like eggs and gas going down. Glenn explains how AI server farms, built by companies like Microsoft and Amazon, are likely to blame...

Transcript

Below is a rush transcript that may contain errors

GLENN: So can we talk about real issues?

Let me tell you about the coming blackout.

Right now, in the last few days, there is a group of lawmakers in the mid-Atlanta in the Maryland, Pennsylvania, and New Jersey. They're all sounding the alarm. And they're sounding the alarm. Because they believe, and I do too. That the worst power bill crisis in a generation is happening right now. Skyrocketing bills and strained grids.

How is it, this is happening?

We've drilled, baby, drilled. We've put new power plants online. Or old power plants we brought back online. They're saying, part of the problem is all this green new energy crap. Everybody is still saying, we have to have green energy. We have to have green energy. I just want you to hear this out in a second. But because I want to give you the reality of what's going on. Green energy is wonderful, I guess.

But it's absolutely a thing that will set us back hundred years plus. Okay? Green energy does not work for the America of 2000.

It certainly doesn't work today. Every single month, a new server farm is breaking ground somewhere in America. Once a month, that means 12 new server farms every year.

That will snowball. By the end of 2026, you will see them built and breaking ground maybe one a week. What we have so far, not building things small here. Each one of these data centers, which is feeding artificial intelligence, crypto, cloud computing.

They consume as much power as 50 homes all the time.

Told you at the beginning of the hour, Bill Gates has just come out and said, you know what,, you know, global warming is not as bad as you thought it was.

It's so laughable, because it's so transparent.

It's so evil.

It's not as bad as everybody thought it was.

We have to get off this global warming went. But we need power plants, I'll tell you that right now. Why? You know who Bill Gates' partner is? OpenAI. ChatGPT. Okay?

That's his partner. So we know why he's off this bandwagon. Because they're struggling, right now to find enough electricity, for what they're currently running.

Let alone the next generation of systems.

You have Google, Meta, Amazon, that are buying up land in every -- next to every major substation that they can find, because they know what's coming. But wait a minute. They're building it near substations. Wait. Wait.

Hold on. Are you taking the power from my home?

In many cases, yes!

Listen to this. This is from the international energy agency. This is something they just released. Global data center power will double by the end of 2026.

That is equivalent to adding another Japan to our energy demand.

Okay. Another Japan.

And that's just for computers and server farms. Adding Japan.

What are we building to be able to serve that? Not enough. Ireland has just begun restricting the new data centers. Now, here's what's going to happen. You're going to restrict them. And it's going to leave you in the past. Now, maybe you want to be left in the past. And that's what that chalkboard is about.

Maybe you want to be left in the past. But Ireland just said, no more server farms. Don't do it. Parts of the Netherlands. Singapore. Sweden. They are freezing construction now on all server farms. Because the grid can't handle the demand already. Tokyo's grid is so strained by the server farms that they have. Blackouts have already occurred in Tokyo during peak hours.

China, which is building a new coal fire plant. Every week, is rationing power to factories so they can keep the AI data hubs running.

So what happens when we shut down coal and install nuclear. And depend on sunshine and windmills. What happens?

Who's powering the cloud?

PJM. This is mid-Atlantic grid, PJM is one that runs it, one of the largest in the world. They say their grid in the mid-Atlantic is already at the breaking point. They have warned, quote, of critically tight capacity. Meaning, one bad to remember.

One bad heat wave. One bad cold spell. And you've got rolling blackouts.

Okay?

Why? Because the last administration retired reliable fossil fuel plants faster than we could replace them. We didn't replace them.

So we're already behind the eight ball. And now, the surge, and the search for power is on.

In Maryland alone. Energy production has dropped as consumption has surged. Why?

Because of the data centers. Virginia's data center corridor, which is, you know, the economic crown jewel of -- of Virginia. This giant data center corridor that happens in Virginia. It now consumes.

Now, today, you're still figuring out what AI does. Okay?

It now consumes one-fifth of Virginia's total energy output. One-fifth! Today!

Why is your electricity price going up?
Why have eggs gone down? They're back to over a dollar a dozen. Why has gas gone down. It's back to the price it was in 2018, 2019. Why is it that the prices have gone down? Yet your energy costs are skyrocketing?

ChatGPT. Amazon. AI. All the things -- Amazon just fired 30,000 people because they're going to replace them with electric robots and machines and AI. That takes power.

Imagine, you know, what happens to your price of housing, when you import 10 million people?

The price of housing goes through the roof. And nobody can afford a house. What happens to electricity, when the people aren't powered on food or have to live in a house, but just need electricity? When you have all that electricity demand for these AI systems and bots. Of course, the price is going to go through the roof.

Especially if we are at the same time that the -- the demand is going up. We're saying, limit the number of power plants. Let's go all are going to.

If you want green energy and you've known this. We've said this.

It's de-growth. But listen to me carefully. I'm not throwing you under the bus.

If you want green energy, then you have to recognize. And maybe you're fine with this. Probably are. No Bitcoin. No AI. And no modern digital economy. It doesn't exist.

If you want AI. And the server farms. And the EVs. And your self-driving car. Digital infrastructure.

You must start building power plants in your state, right now! The problem is, these two realities cannot co-exist. So we're going to see a split in the country. Okay?

The climate cult, as they're calling it, it's going to run head-long into artificial intelligence. And when that happens, lights go out, in your house. So what do you do? Let me give you two options.

If you live in a state, and you want to go net zero, you now have to demand, right now, that they top proving new server farms in your state, because that is in direct conflict with your green energy.

You cannot live in a state that is building new server farms or is supplying power to server farms across the border to another state. You must pass laws right now. And I'm not for this. But I'm just giving you the option if you're for green energy revolution. You must stop all server farms being built in your state.

Or they will bleed you try! And you must also pass a law saying, we are not selling our electricity, over state lines! For a server farm.

Got to do it. Got to do it now. You cannot run a trillion parameter AI model on fairy dust or solar power. Or wind power.

It doesn't happen.

Now, if you believe in innovation, if you believe in the free market, if you believe in progress. If you believe in AI.

You've got to call your state reps right now. And demand new stable, high output energy plants.

The president is saying, that all of these companies that are building these server farms, must be responsible for their own power.

They must build their own power plant.

You don't get anything from the grid!

But that's not happening.

So you need to go to your state rep and say, they cannot take the grid power.

They cannot take the power from the people. They have to create their own power. And I would say, and, in fact, if they want to do it, they must put some excess power into the grid, because they're the ones that will be able to build the nuclear power plant, not your state. They will! Gas, nuclear, hydro. Whatever it takes, you need to call your state and say, "We want power!" And we want the grids, and we want the server farms.

But if you are apathetic on this or if you're ignorant on this and you don't begin to act now, you are going to be -- you're going to be, you know, at the whims of whoever it is, that's running your state. California, we know which way you're going, but are you building server farms as well?

Because if you are, Utah, you should pass a law. We are not going to sell any more power to California because they will take your power, to fund their server farms, not the people. Their server farms. They will buy more power from you. Which, if they're buying it from you. Do you have enough for your server farms. And your people in your state.
Most likely, no! Unless you are doubling down on energy building, right now. This is the near-term problem.

Believe it or not, by the end of 2026, everybody will be very well aware of what energy is costing them. And what server farms are doing to the stability of our grid.

Unless people act right now. And, you know, it's one to things act at the federal level.

This has to be at your local level.

And, quite honestly, I want the energy in Texas. I am not -- I do not want to ship our energy someplace else for somebody else's server farm, if they're not pulling their own weight on electricity.

Because Texas is going to have server farms out the wazoo.

We are building the power plants. We're not building them fast enough.

But we are building tell me.

And until we know our population, which is growing exponentially. Our population can have the power they need to live, survive, and work!

And the power -- or, the server farms that we are building, they have their power as well.

There shouldn't be any -- there shouldn't be 1 kilowatt that is going across our border!

Especially to states who are green!
But this one is going to be up to you.