The price of gold just hit a new all-time high and that’s NOT a good sign. Plus, the CPI report for March has released and it revealed that inflation rose faster than expected yet again. But of course, the Biden administration is bragging about how gas inflation allegedly went DOWN. Financial expert Carol Roth joins to explain what the gold and CPI news means for your wallet, as well as why the White House’s data is “trash.” Plus, she reveals a new way that small business owners can vent their frustrations to Congress.

Transcript

Below is a rush transcript that may contain errors

GLENN: Carol Roth, I know we have a lot to talk about. So just quickly, I woke up this morning.

Looking at gold prices.

And it was kind of -- kind of impressed, on how they're skyrocketing. And I remember, a conversation with the gold guy.

Who said, don't ever, ever look at gold and say, gee. I hope it goes up because of my portfolio.

And we were talking about $3,000 an ounce. And he says, do you realize how crazy the world has to be, for gold to be at $3,000 an ounce?

It's over 2400 right now. We're headed there quickly.

CAROL: Yeah. You remember a discussion that I and I had with a group of people, I believe, in November of last year. When people were saying a similar thing. When is gold going to break out? And you and I were both communicate the idea that gold is really a hedge against all kind of insanity. Things like inflation. Things like the crumbling standing of the dollar. Things like war.

And so when you see that gold continues to rise. Even in the face of things like rising yields on bonds. I mean, normally, there's a lot of push back there. We saw that as bond yields had gone up.

People were moving away from gold. Because you weren't getting that same interest rate. You know, gold does not produce an interest rate. So there is a different reason why we are looking at gold. And some of the things that we're talking about are a bit more structural. Perhaps gold is playing a bigger role in things like settling international commodities. Trades. And trading between countries.

Particularly, the BRICS nations. But, again, all of the things that are the signals, none of them are good for us here in the United States.

You have the signal as, oh, well, it's just because trade. Well, that's not good for the US dollars reserve currency. And that's not good for, you know, inflation over the long term and our purchasing power.

And so all of these things have a mechanism. And when you see so much interest in gold over the past few months. When it has been very steady for -- for a while.

That breakout is giving you additional information. And like you said, this particular case, I think that information is coming from lots of different places. And not one of them is good.

GLENN: Oh, yeah. One of them is, we're hitting the point where our -- our debt, the interest on our debt is going to be 1.6 trillion dollars a year. That's more than Social Security.

It's the biggest. It will be the top line on our budget now, is just the interest. Because we have an adjustable mortgage in America.

And the fed, I think is out of bullets.

CAROL: Yeah. I've been making this argument now for a couple of years. That the fed's monetary policy isn't effective. Because they are -- they're trying to control, demand, and so many of the issues that we've had are on the supply side.

Additionally, we've been headed. And I think we are in today, this period of fiscal to me unanimous. And as we've talked about before, that just means, that fiscal policy plays a bigger role in what is determining economic outcomes and monetary policy.

On its face, that is sort of neutral physical dominance. In our particular situation, it's very bad. It's because of the debt. It's because of the deficits. And it's because of the fact, that we have it these massive interest payments. And continuing deficits, that need to be financed and are creating this vicious loop.

And as we know, there are -- there is not a lot of ways to finance the debt.

There certainly are not a lot of buyers. And we say that this week. There was a Treasury option, for ten-year Treasury notes, that did horribly. It was rated a D by (inaudible) CNBC, who was very, very smart.

GLENN: Oh, my gosh.

CAROL: D, by the way, I don't know if you know this. Is right next to F. So that is a very bad position, to be in.

GLENN: We've always been AAA, haven't we?

I mean, for ten years.

CAROL: So there's a debt rating. And that's done by the rating agencies. These are the bond options.

This is when the Treasury goes out to the market. And says, you know, how is it that, you know -- how did we do?

How many buyers were there? Who were -- who wanted to buy our debts?

And so this happens on a regular basis. And, you know, people who watch this. They give those auctions a grade. To say, how did we do?

Were there a lot of buyers? Not a lot of buyers.

So this particular time, there were not a lot of buyers. And the banks and the security dealers. Had to stock up a lot of that debt.

It's pushing us to this path of monetization. Again, that we've been talking about. That means, we're buying our own debt. And that is inflationary.

So even if we're not getting things like rate cuts, that potentially could stoke inflation. You're going to get this monetization of debt, which is inflationary. Which is why I've been arguing that inflation is sticky. And it doesn't matter if the fed goes high or low.

It's getting us on either side, until the government gets its act together. They are driving the show. It is that fiscal dominance.

GLENN: Tell me about the Consumer Price Index.

And the wholesale index. The numbers don't make sense.

For instance, fuel is not an inflation -- isn't in inflation right now? Look at the price of fuel. What do they mean?

CAROL: So you know who loves the data coming out of the government right now, Glenn?

GLENN: The government.

CAROL: Oscar the Grouch. You know why? Because the data is trash. It's absolutely trash data.

Not only have we seen adjustments on a regular basis.

The scope of which, we have not seen in a long time.

The numbers always get adjusted. But we have not seen these massive adjustments, that we have been seeing.

We also have a phenomenon, where people and entities, who are responding to the surveys. Where they collect the data, don't want to do that anymore.

Either they don't want to be board.

They don't trust the government with their data. Whatever it is.

They don't want to give up their competitive advantage.

They're having fewer people respond to these surveys. Which means that there is more of this projection and biases in the survey. So that's why we saw, you know, the CPI, which is the Consumer Price Index. That's where they go out and they survey households, that came in, higher than expected.

We all expected that it would be an uptick. Because as you said, we know the price of oil and other commodities would be going up. So this was not a surprise to any of us who live in the real world.

So that was somewhat reflected in that data. And certainly, the -- the market had reacted to that, and said, oh, well, if that's the case. The fed can't cut. Then we have another measure of inflation.

Because they measure it in different ways. This is the producer price index. PPI. Which is the wholesale measure of inflation. This is what they're supposed to tell you what's coming. Because the inputs that go into your goods and services give you a sense of what is coming down the pike.

And this was the one that was the head scratcher. Because it was not -- there's a huge disconnect between these two measures always. But even a bigger disconnect. The one as you said, everybody is going, what's going on here? Related to energy.

So floating around on social media yesterday, there was a chart about the season 58 adjustments. Again, the manipulation of the data that they do. And if you look at that, it showed you that gasoline for the month, was down 3.6 percent. I think it was.

But if you did it --

GLENN: Yeah. 3.6.

So if you didn't seasonally adjusted. It would have been up 6.3 percent.

That's a really big swing. That's like a 10 percent swing, between the two of them.

So, again, Oscar the Grouch data here, certainly we're going to get another measure in a couple of weeks here. One called the PCE. The personal consumptions expenditures index. This is the fed's, quote, unquote, favored measure.

I don't know. Maybe they like the people who do it better. It's a little bit more broad. That's what they tend to make their policy decisions on.

But the media and everybody is focused on the CPI. So it makes it very difficult for them. Or at least adds another layer of difficulty. Because they will do whatever it is, that they want to do.

When that is going up, for them to say, well, inflation is under control.

We can go ahead, and start to cut interest rates. Which is why I think everybody needs to be paying attention, to their other tools.

Which relate to the balance sheet and debt. And what they're going to do there. Because that's just a different way for them to be cooperatively.

GLENN: They're not going to do anything. They're not going to be doing anything. I mean, he's not addressing inflation. Biden is spending more.

He's now, again, forgiving more at the time. Trying to get people into houses.

I mean, he is -- we're just giving away the store at this point.

LEE: They have -- we have been saying this since day one. They've been working in the opposite direction. If you wanted to help the fed get inflation under control at the government, you should have been working with them.

You should not have been running up leftists. You've been doing. Putting into place, policies that help supply issues, instead of hurting supply issues.

Every single thing this administration has done, has been a barrier, not only to you keeping your wealth and your purchasing power. But what it is, the fed has been doing.

And that's the fight that the fed has been having.

And I just think, at some point, they're going need to be real explicit. And say, we can't do anything. Until our partners get on the same page.

But, you know, everything is political.

GLENN: It doesn't happen. That's not going to happen.

CAROL: Yeah, not going to happen.

GLENN: When we come back, she actually has been invited to be somebody who testifies in front of Congress.

Carol Roth, in front of Congress, testifying as an expert, by the end of the month. On small businesses. And she's going to be talking about the FinCEN thing that's going on with LLCs and small businesses.

Where you have to register all this information, or you're a criminal.


CAROL: Yeah.

GLENN: And it's going to devastate small businesses. Small LLCs. And it affects so many people. She will be testifying.

But here's the good news. She wants to use information, that maybe you have.

To back up her testimony.

And we'll talk about that in 60 seconds.

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No. I think our banks are fine.

Everything is doing really well. Just a quick update. The AT&T Tower in St. Louis went for $3.55 million. That's a good, solid $2 a square foot. Sold for $3 million. It was sold for over 205 million, just about 15 years ago.

So no. There's nothing to see here. Nothing to see here. Carol, let's talk about small business.

CAROL: Yes.

GLENN: Take me through. In case people don't know what FinCEN is. Or what people are requiring them to do.

This is the criminal arm of the Treasury. And they're asking everybody who has an LLC or a small business to register.

CAROL: Yes. So this is called the CTA, BOI rule.

And basically, what it said, and this was passed by Congress.

Was vetoed by President Trump. And then they went back, and Congress overturned the veto, and gave this arm of the Treasury, which is charged with preventing financial crimes. Sort of free rein.

And they said, okay. We will create a database. And if you have any sort of entity, if you have an LLC, even a single member LLC, an S-Corp, a C-Corp, any sort of entity, and you're a business. You need to register with us. The financial crimes enforcement network. Because we want to prevent money laundering and cartels. And, of course, you know, I'm sure all of those people are going to self-report.

But they exempted.

GLENN: All the best cartels do.

CAROL: They all do. Well, we will do these things. We will make sure that FinCEN gets euro information.

They exempted all the big businesses. So this is unfairly targeting small businesses, so the updates. A few things that are what are happening. And we can certainly go more into this. I have been invited by the house. Small business committee, to be an expert, to testify and, you know, obviously testify against this. And how bad this is for small businesses.

And how unconstitutional at the end of the month.

What I am doing is I am bringing statements from small business owners. Because it's great to hear my statement. But if I can show up there, and say, I have hundred. Or 200 small businesses.

And here's what they have to say about this. And they're all outraged.

That holds a lot more weight.

So anyone who owns a small business. You support small business. Go to CarolRoth.com/CTA. That's CarolRoth.com, slash, Charlie Tango Alpha. And I made it really easy. I have given it a form letter, that if you want, you can borrow some of it. You can borrow all of it. You can borrow none of it, but I am going to show up at Congress with this staff from small business owners to say, you have heard what I have had to say.

Now, listen to what small business owners from across the nation, have to say, to try to get them to overturn this.

GLENN: Now, could I -- because today is not the day for me to write something. Because I'm in a very bad mood.

But I could -- could I just write to you and say, yeah. Here's what I would like to say to Congress.

I'm working my ass off, so I can keep my family afloat. And the families of all my employees, and you guys are just making my life more and more difficult, with more and more restrictions and -- and guidelines.

That nobody in Congress passed.

And are not good for the American people.

I've had it!

CAROL: Please do. Again, CarolRoth.com/CTA. Please do that. And I actually think being in a bad mood is a good time to write it, because that's when you will be honest. And that's when you will --

GLENN: I will write today then.

CAROL: Yeah. And so -- and speaking of helping, so one of the things that you did, that was very generous, Glenn. You offered to put forth a lawsuit. And I agreed. We cannot do that. Because we have been outspoken. But the good news is that there are two new lawsuits against this, that have also popped up. So we have a lot of really good momentum. And appreciative to you, for all of your help.

GLENN: Okay. Okay. So give me the address again. It's CarolRoth.com/CTA. Correct?

CAROL: Correct.

GLENN: Okay. CarolRoth.com/CTA. If you're a small business owner, go ahead.

Vent a little bit. You will take it to Congress. Thanks, Carol.