Biden claims he’s been re-investing in America and doing everything possible to secure the middle class. But his lies are FAR from the truth. In fact, financial expert Carol Roth tells Glenn that America ‘literally cannot afford another four years of Biden.’ In this clip, she explains why the reasoning goes beyond the obvious one: A $1.1 trillion dollar deficit in the last 6 MONTHS. Plus, Glenn and Carol discuss why inflation likely is sticking around for a while (thanks to disastrous policy at the Federal Reserve) and what’s going on with First Republic Bank…
Below is a rush transcript that may contain errors
GLENN: So there's a couple of things going on. First of all, I read this op-ed. And I didn't even read.
It was from the Blaze. I didn't read who wrote it. It was, Biden hasn't been investing in America. He's been killing the middle class.
And I have been reading it. And I get down to the last part.
And I'm like, we have to get this person on. And then I see at the bottom, Carol Roth.
Her new book, You Will Own Nothing. Carol, you and I -- we have like mind melded some way or another. Take us through your op-ed that's on the Blaze.
CAROL: Yeah. I think we're spending a lot of time together, on air, Glenn. So we're starting to think the same way. So Biden launches this plan for reelection.
And talks about how he's been investing in America. And all I can think about is the fact that we cannot quite literally afford another four years of Biden.
Because he and his cronies. They've been making themselves out to be champions of the middle class. But all they've done is decimate the middle class. If you think about what's happened since day one, with his energy policy.
Not only making direct energy cause more expensive. But all of the ancillary products that go along with that. The inflation that has happened under his watch.
Forty-year historic inflation that we are still contending with. That is a real cost to families.
Things like hiring IRS agents to go after, not the billionaires.
You don't have $80 billion to go after the 800 billionaires. But obviously to go after the middle class.
ESG doubling down on the fact that they want to prioritize their investments. And the things that they're interested in politically. Over your investment return.
On and on and on. And then he talks about the fact that he's been fiscally responsible. Not only has he run up substantial deficits. But for this fiscal year. The first half of it. We have a $1.1 trillion deficit. Not spending. But a deficit that hasn't been paid for, for just the first half of the year.
GLENN: For six months.
So let's say this. And then pause for a minute. In six months, we have spent more money than we had to the tune of 1.1 trillion dollars.
CAROL: And there is no emergency going on. They can't hide this under, oh, it's COVID. Or there's something special.
This is just the trajectory of spending, that they're putting us on the path to.
And, you know, we're having this argument over the debt ceiling.
And how we'll finance all the debt that we have.
The reality is, that nobody in the world, wants our debt anymore.
There's no demand for our debt.
In fact, big countries like China are actually getting rid of our debt.
Investors are -- you know, maybe on a short-term basis, will invest.
But there's not trillions of dollars of demand every year for new debt.
So the only buyer that is going to exist for the debt is the Federal Reserve. And that means, they will, on a ongoing basis, into the future.
Be the ones that have to buy the debt, which means they will continue to devalue your dollar.
They will keep inflation, as a part of your life. And is this part of the entire plan to make sure that they come out smelling like a rose, and you own nothing.
GLENN: You know, I'm doing a special on conspiracy theories. Tonight.
And how, gee, all of them turn out to be conspiracy facts.
But when it comes to finance, there are a lot of people, that are just pounding the drum.
And it's almost -- I think it is actually evil. Because so many people will be unprepared when it finally hits. But I said, back in 2009, the fed will begin to buy our at the time.
And they said, it will never happen. It will never happen. I said, it is coming. It is coming.
So now they also said, that the dollar would never collapse. And I've heard really smart broadcasters say, this talk of the dollar being dumped as the king dollar is nonsense.
It's not going to happen. It's not going to be devalued.
We've already gone from 73 percent, in 2001, of being everybody's gold standard.
73 percent of -- of all of the -- I guess you would call them sovereign funds. Where they're holding the wealth.
GLENN: Thank you. The reserve currencies.
That was the US dollar. We're down now to 47 percent.
And we have gained speed on losing it, ten times faster than the last decade.
This is a problem.
CAROL: Yes. You took the words out of my mouth. The acceleration of the dumping of the dollar on the world stage is pretty staggering. Now, we always go back to the fact that we are the cleanest shirt in the laundry. Or skinniest kid at fat camp. We still have a very resilient population. That is very productive on a relative basis, compared to the rest of the world. And a lot of good things that are happening. And, frankly, that is what is backing the dollar on the international stage. It's not the faith in the government, that they will do the right thing, as they like to say. Is the fact that we have this productive population as well as the military.
But, you know, over time, certainly there are a lot of actors that are looking to shift the alliance. So even if it's not the dollar goes away, it just becomes one of several different reserves, that are being used.
It completely changes the equation for us, Glenn, because one of the biggest privileges.
There are a lot of cons with being the reserve currency. But one of the biggest privileges, is the fact that we get an arbitrage opportunity.
It keeps our debt artificially low.
And that has allowed the US government to finance their expansion, and become unwieldy at a very low cost of capital.
On the back of basically everybody in the world, which they're not very happy about.
If that goes away, that's what's called the exorbitant privilege. Then that means, again, more expensive to finance the debt.
Which theoretically, you would think, is a red flag for the government. As the fed raises interest rates.
It becomes more expensive for the government to finance debt.
It should be a signal to say, okay. Well, we have to stop spending. And what are they doing?
They are accelerating spending.
This is a fiscal runaway train, and it will derail, if we do not do something to stop it.
GLENN: This is exactly like, if you own a house, and you bought your house at 0 percent.
And you have been buying them at 0 percent.
And you start stacking up houses. And you really can't afford them.
Then the interest rate goes up to 8 percent. And you're on an adjustable mortgage here. You didn't lock it in.
It goes up to 5 percent. 8 percent. 10 percent.
And you accelerate the amount of houses. And how fast you're buying houses. Instead, anyone with reason would stop buying houses.
They would reduce their debt. Not continue to not only pile on debt. But increase the -- the volume and the speed of accumulating that debt. It's crazy. It's crazy.
CAROL: It is crazy. And what we're asking for shouldn't be a big shift. If you think about how much the government took in, in, quote, unquote, revenue. Which is primarily our tax dollars last year. It was a hair shy of $5 trillion. They had $5 trillion, that they could have spent, and not gone into an extra deficit, that needed to be financed with debt.
If you rolled back to 2018, and 2019.
They spent at those levels.
I mean, it's not very long ago, that we would have a surplus, that we could pay down the debt. And try to get us on track.
But they don't care. Because this is not part of the plan. Is this not part of the new financial world order.
Where the stakes are shifting. They say the stakes are shifting. And instead of trying to do the right thing in stopping them, they're giving in to human nature.
They're giving in to greed and power. They're going to try to get everything for themselves. And in the process, as I've said before, you will own nothing.
GLENN: So here is the reality of America. That if you're not living it, you need to know about it. McDonald's is now saying, they have a problem.
Because they raised their prices due to inflation. Everything else.
A McDonald's meal now is $9. One McDonald's meal. They say, people are downsizing even more than they have already downsized. And there's no stimulus money. There's nothing coming.
So people are starting to really live on the edge. This isn't good. And then on top of it.
If anybody thought our banking crisis, can you tell me what happened with first republic today?
CAROL: So as we talked about before, there certainly -- we didn't think we would be out of the woodwork, when it came to bank crisis.
And one of the things I did, which I can share in a tweet. I think I can send over to you.
I plotted out some of what I call the low lights. Because I can't call them high lights of the Great Recession financial crisis. And it really does kind of show, in staggering detail, how long it took for things to play out.
And so we really are probably still in somewhat early innings. Maybe a third. Or getting close to halfway through. What could possibly happen, if history indeed rhymes.
But what happened with First Republic in a sense, is not dissimilar to what happened with Silicon Valley Bank and Signature Bank.
And certainly, they have not yet collapsed. But as they reported their financial results, they let us know, that in the last quarter, 40 percent of deposits exited that particular company, even though they had gotten a cash infusion. A massive cash infusion from 11 different banks.
And all of this is the outgrowth of the fed policy. Of not having the market make decisions.
But of this indulgent, negligent fed policy, that just put too much money into the market. That couldn't be handled. Now, every bank did something a little bit different.
Via signature bank. It was on the crypto side. Silicon Valley Bank, they put too much into treasuries.
It was different for First Republic, because they were making loans out to wealthy people, who basically said, oh, I can get all this money in the stock market. Maybe I'll take a 1 percent mortgage out on my house. Now they're sitting around with mortgages, that are paying them less, than what they have to pay for a deposit.
So it's not a good situation.
But, again, it's engendered by fed policy.
GLENN: Yeah. And we're not done here