The United Nations now is demanding that central banks stop their rate hikes to reduce inflation. BUT, they’re also recommending those banks switch to price controls instead. THE EU already has been contemplating price caps for weeks now, thanks Europe's skyrocketing energy costs. But controlling these prices will NOT WORK. In this clip, Glenn explains why this latest solution for the world's energy and economic problems WILL fail…
Below is a rush transcript that may contain errors
GLENN: This is -- wow.
How do you get inflation to come down?
STU: Well, you usually would raise interest rates. And that would address demand, slowing the economy. And hopefully --
GLENN: And what do you do with all those dollars?
STU: Suck them back in.
GLENN: Suck them back in, and burn them up, right?
So the reason why we have higher interest rates is because the Federal Reserve is charging more for the banks, to borrow that money. So they charge you more money. And all of that money goes back to the central bank, and they destroy it. That way, there's -- you know, the definition of inflation is too many dollars, chasing too far good news.
Now, we have an extraordinary problem. Because we have too few goods. Because the supply chain broke down. So that automatically will make things go up.
But we also have a problem -- the world has never had before. Never. We have debt all over the world, that is -- unpayable. It's just unpayable.
Hey, by the way, we're number one. We're number one again.
We just broke $31 trillion in debt. It took us only nine months to go from 30, to 31 trillion.
Which I think is -- I mean, that's a world record. And pretty special. Pretty special.
STU: Really amazing. We did a great job there.
GLENN: Uh-huh. So as the government is spending all of this money, it is increasing inflation. Because the money is just being printed. And you can't print money, without inflation.
So what are they saying? The United Nations is now demanding, that all central banks stop their rate hikes.
Which is the way to stop inflation. Stop rate hikes. And switch, inside, to price controls. Now, here's the problem: They're doing price controls now, in Europe, for gas and oil.
The problem is: The companies can't make enough money. Because it's about shortages. So if you had, you know, a way to make money, to go and drill for some more. You can make the price go down.
That's how it works. You have a high price. You make more. You find more. You ship more. But what is our government doing, and what is Europe doing?
They are limiting the oil and gas. So we caused this problem. Not we. You didn't cause it. I didn't cause it. The Democrat down the street didn't cause it. The global elites have caused this.
And what they've done, is they've shut down, and said, we're getting off of all energy.
We're going to go for this new phantasmic kind of energy, that nobody really knows yet. But it's going to be great. And we're going to stop all production of fossil fuels. By 2035. Okay. All right.
So how do you get the price to go down? The UN is now saying, price controls. You just tell those energy companies, you're not allowed to charge more than X.
Why doesn't that work, Stu?
STU: How long do we have? It never works. It's never worked.
You know --
GLENN: It only makes things much worse.
STU: It makes things much, much, much worse. And over time, destroys an economy. Every time we've attempted it, it's blown up in our face.
GLENN: Yeah. Because it's no longer the free market. So they are now saying, go off the free market. On all prices. All prices.
Now, here's another reason why it won't work. For instance, the energy companies. The energy companies right now, can't make money. They can't make money. They can't even make money, to keep operating.
So what -- what is the European banks doing? The central banks? They are printing money, to give it to the companies, to make up for the shortfall. So this is not reducing inflation. Price controls. Not doing anything.
So that's coming from the UN today. I don't know if that's -- you know, I don't know. Something that maybe is a line for you. But we will watch to see if our fed does, as the UN has directed. Now, they are focused over in Europe, on collecting extra funds for cash-strapped governments, because the governments are cash strapped because they're pumping out billions in emergency aid, to help cushion businesses for things they can't afford anymore.
So they put a price cap, on -- on oil and gas.
Now, the problem is, is the price of gas is up. Because nobody is investing in getting it. And the supply is now at risk.
America could be a big winner here, if we were just willing to open up. But we're not. We're not. Of and so with a price cap in Europe, most likely, that gas will go to China.
Because China doesn't have a price gap. And so if you want the free market to work, well, then, I don't know. They're going to pay me, a dollar more. Instead of $4 a gallon for liquefied natural gas. They're paying me $5 a gallon. I'm going to China. Then the government has to step in. The global government. And has to say, no. You can't sell that to China. That's not going to make China happy.
Oh, one other thing. The UN is also saying, and global experts are also saying, that we need to have, you know, what was that chip bill? Chips for everybody.
STU: Yeah. The chips act.
GLENN: Yeah. The chips act. They're now calling for a ships act, that the United States starts to build all kinds of ships, like we did in World War II.
Because we rely too much on Chinese shipping companies. Which, if I'm not mistaken, one of the big shipping companies is owned by turtle face's wife. Right?
STU: The family. Yeah.
GLENN: Yeah. Isn't that weird. Anyway, we're looking now to -- to build our own ships. However, China is posturing that if we do this, that won't sit well with him.
So we're just making things a little more complicated. And, but I feel good. I feel good that it's experts, that are doing this. You know, because, you know, trust the science.
Also, let me show you a little bit of your future. Outrage bank clients, at least two of them armed, stormed four commercial banks in Lebanon yesterday, over the withdrawal limits, that have been imposed throughout the country.
Because the financing is melting down. What's happening?
The fed or the central bank is saying, we're tightening. We're not going to make all this money free. Because interest rate. I mean, because inflation rate is going through the roof, everywhere in the world. So we have to pull some of this money back.
Well, the banks, who have been on the -- the central bank teat forever, and have made more money than you can ever imagined, they don't have the money. They just don't have it.
Uh-uh. It's all tied up someplace. And so we have to go on to austerity as well. And so in Lebanon, as in China, they're limiting what you can take out of the bank.
Well, bank holdups are now snowballing all across Lebanon, because of the Capitol controls. You can't go take the money out.
And these robbers are not going in and saying, give me all the money. These robbers are going in and saying, I want access to my account.
I need, you know, $10,000. I need $25,000, in my account. One of the accounts, let me get this right, was enormous.
He has, in his account, 700,000 dollars. He went in, because he needed 11,750. So he held up the bank, for 11,750 of his own money, in which he has $700,000 in the bank.
He's in jail today. So is everybody else that did this. They're not allowing you to take out money. One guy -- one guy -- he came in with a pistol. And he said, look, I need 24,000 dollars. And he has it, in his account. The guy has been trying to sell his kidney. But couldn't get a buyer for his kidney. And he's going bankrupt. Everything is falling apart. His family is desperate. So he has the money in the bank, to pay his bills. But they won't be give him the money. So his first thought was, I'll sell a kidney.
That didn't work. So he went in with a gun. And he said, look, I don't want anybody else's money. I just want my money.
By the way, yesterday, Biden announced another $625 million in military aid for Ukraine. As I told you, we also have surpassed now $31 trillion in debt. It took us nine months, to go from 30 to 31. Gee. I wonder what's causing inflation.
STU: Just one thing. Because I think you might be worrying people here. When you say these big numbers. And you just need to understand. That there's not that much of a problem here. Each 1 percent that we -- these rates go up.
It will cost us an additional $2.6 trillion this decade. And $30 trillion over the next 30 years. Which works out to 37 percent of our GDP in new debt.
That's each one percent, the rates go up. So this is going to work out well. And that's what I want people to take, out of this entire monologue.
GLENN: I just remember Ronald Reagan saying, there's going to come a time, where there are no good choices left anymore.
Because the time has passed. The time has passed. So there is a good choice.
It is reconnecting with things that are real. Important. And reconnecting to God. And your family. You -- you have to be involved in politics.
I want to -- I want to tell you, I've always thought it was God, country, family.
In fact, I have a tattoo that says, protao, propatrio, profamilia (phonetic). And I always thought that that was the way it was. I heard a great argument from one of our Founders that is, no. That's not the way it is. You won't have a family, if you don't have a country.
It's for God. It's for country. For family. Your family doesn't survive, unless your country survives.
You -- to protect your family, you've got to protect your country. Stu is looking at me like, that's not --
STU: Isn't that what the tattoo says?
GLENN: Oh, yeah. Sorry. Sorry. Sorry.
It's the reverse. You've got to protect your family --
GLENN: Because if your family isn't solid. You will lose the country. Yeah, thank you.
STU: Yeah. The fact that you can say that the opposite way, and it still makes sense, shows that they're all important. But you're right. Family is the focus of the Founders, even above country. When you think of people who actually founded a nation, wouldn't think that way. But they did.
GLENN: And look at our families. Look at the state of our families. The state of our families is horrific right now.
And it's getting worse and worse and worse. California just passed a law. They can take your kids away, in a red state. If you're not, you know, gender affirming. In a red state. California. Just, they can do that now apparently.
Okay. Why is that happening? Because our family is under attack. Our God is under attack. God, family, country.
Get your family together. Get your family solid. And get out and vote.