We’re in an ‘IMPOSSIBLE’ economic spiral, Glenn says, and there might be no way out of it. In this clip, Glenn explains exactly what’s caused America’s current, economic trouble. He explains why European nations will be the first ones to deal with the worst of it, and how specific action from the Federal Reserve could ‘hasten the end.’ Plus, Glenn says why he fears there’s no way out of this economic MESS: ‘I think we're in this spiral now. There's a way to slow it down. But there's not a way to stop it.’
Below is a rush transcript that may contain errors
GLENN: The U.S. CPI surges to 40-year highs. Food and shelter costs soar.
The inflation numbers are not good. Service inflation continues to rise, as goods inflation slow. Food and shelter is kind of way up.
Let me take you through some of these. Food inflation is extremely high. We are looking at over 13 -- between 13 and 14 percent. Of food inflation.
Shelter inflation is up almost 7 percent, and the highest on record. Rent inflation, up 7.21 percent. The highest on record.
There -- we're in -- we're in trouble. And the thing that should have happened along ago, is raising the interest rates.
But our fed and -- and our Treasury, and our president, who is still in denial, is -- is -- you know, said to us, no. There's not going to be to us inflation. Don't worry about it. Well, here we are.
And to get ourselves out of it, is going to be a real trick.
STU: Is there a way out of this? I feel when I talk to you, I feel as if there isn't a way out of this.
By the way, in case anyone is interested, this is what it's like, working with Glenn Beck every day. You just come in. Hey. Something great happened at home. My kid had a great score on a test. And then you come in and want to kill yourself. That's life.
GLENN: So here's the problem: Do you want the weather answer? That was good.
STU: I guess when I'm here, I want the real answer.
GLENN: Yeah. Okay. So let me preface this with this. This used to be something where I would say, I think this is coming. Okay?
We're in the place now, where it's all math. And so it is coming. All right? And you're starting to enter the zone of death spiral. We're not there yet. I believe England is just beginning its death spiral. Europe will go first.
Okay? And then it will be us.
But we're in this spiral. Let me start with England. England just a few weeks ago, all their retirement funds crashed, okay?
And their retirement funds had invested -- see if any of this sounded like 2008. Had invested in things that were risky, but were marked stable. These things will never go down. Okay?
GLENN: So as they started to go down, margin calls came in. And, you know, it's like if you own -- if you own a house, and you've borrowed money on the house. Okay?
And for to buy something else, your house goes down, the bank calls and says, wait a minute. You have a second mortgage here. And your house is not worth what it was. We need you to put more money down, for that second mortgage. Okay?
That's a margin call. So the margin calls came in. And nobody had the money. Everybody was like, wait. But those weren't supposed to go down. So what did they do? Bank of England, which said we'll stop printing money, we'll stop everything.
They had to either let all their retirement funds collapse. So they'll learn their lesson. Or we'll just print more money. They chose print more money.
Here's the problem with the situation that is happening in -- in England and all around the world.
Two things. One, England was talking about tax cuts. Okay?
Well, they were scheduled anyway. It was not this big tax cut thing.
STU: No. Totally overblown.
GLENN: Totally overblown. However, that's symptomatic of the problem we're facing here.
The government and the central banks are fighting each other. I think they're in on it together, quite honestly. But they're doing the opposite things.
By having tax cuts and not lowering the spending of the government, two things happen. You're taking the spending that the government is already just pouring out, way too much money. Okay?
And then you're adding money, and you're putting it in, like fuel injection, right to -- you know, right to the cylinders. And so you're getting that engine to fire up even hotter. Because they're giving it right to you, so you go out and spend it. That makes inflation go up.
At the same time, the central banks are saying, no, we've got to raise interest rates, to bring inflation down, and suck up that money.
Well, you're working against each other. So it's broken. It's not -- it won't work. Okay?
The other thing is it can't work anymore. Because everything, especially energy, are priced in dollars. So all these countries especially in Europe, have to buy more dollars because energy is going up. So they sell our treasuries to get more dollars. But as they buy more physical dollars, the dollar goes up, and they're inflating their money. So their money --
STU: They're printing new money to buy these dollars.
GLENN: So their money goes down, ours goes up. Which means they have to print more, to get our dollar to go up. Or sell more treasuries.
All of that is bad. Because it's just a spiral, that goes out of control.
GLENN: Here in America, we have the same thing. Where is the main -- what is the main -- inflation has been happening since 2010. Okay?
And it is out of control inflation. But nobody noticed it. The answer was, where was inflation? Do you know?
STU: I mean, the stock market.
GLENN: The stock market. Exactly right.
The stock market doubled in price. And everybody was like, how is this -- and all the experts were like, oh, no. You have some really good fundamentals happening. No, you didn't. You had the Treasury and the fed dumping money into these giant corporations, which were investing back into themselves.
That was inflation. Because you weren't getting bailed out.
They were. Constant flow of that money to the elite.
They put it in the stock market. Which made all of the stocks go up. That was inflation.
But you notice, we didn't pay the inflation prices, at the supermarket. Because we weren't getting bailed out. And we didn't have a disruption in -- you know, in the supply chain. Now you really hit with both.
Now they've dumped trillions of dollars into the market with regular people. They went out and spent it. At a time where production is at an all-time low.
Too much money. Way too much money. And way too few goods. Now inflation is up. What is the government doing?
Well, Social Security today.
STU: 8.7 percent is the cost-of-living increase. The highest since 1981.
GLENN: Yeah. So what is that going to do?
STU: I mean, it's already one of our biggest expenses.
GLENN: Correct. So we're going to have to borrow more money. To pay for that.
STU: And all of those scary scenarios, about Social Security were all based on scenarios, where there weren't high cost-of-living increases. They were as low as they've been for years and years and years. Those rates are never going up, as you know, Glenn. Now that you have, and now it's 8.7 percent. That will blow up all those assumptions that we had, that were already terrible.
GLENN: All of those assumptions, which brings up our national debt. We have to pay a higher interest rate on that. Which then, also, the government is going to get that debt funded by the fed. So they'll print more money. For every retiree, and that number is going to go through the roof here soon.
For every retiree, you're going up almost 10 percent. So a that means almost 10 percent more, for everybody having Social Security.
Where is the money coming from? So you're in a death spiral, and if the fed raises the interest rates any higher, I mean, it -- it could be criminal. It could be criminal.
STU: Oh, but they are going to do it.
GLENN: They can't do it.
STU: But they've been saying they will do it for months.
GLENN: Right. And if they do, they'll I'm going to be hasten the end.
STU: But their argument would be, inflation is out of control.
GLENN: It is.
STU: By the way, the new numbers as you point out, only extend that narrative. This has not worked so far.
GLENN: Do you remember when I said, you know, 15 years ago, you have to control this now. Because the fed will be out of bullets. They won't be able to raise the interest rates high enough, to control inflation. And to pay for everything, we're going to have to print more money.
That time, is no longer theoretical, it's now, okay?
And we are at the beginning of this.
STU: But interest rates have been much higher in the past.
GLENN: Yeah. But you had labor. You don't have labor. Okay?
We had labor. We had product. We could sell things. We have a problem of not just too much money, we have too few goods.
Okay. You can't buy the -- have you ever lived in a time in America, where it's been like this. Where you go to a store, and you just can't get it.
STU: I mean, you're describing a country where you order a car in 2021, and it's not delivered until October 2022. That's a crazy world. I can't imagine a country like that.
GLENN: Correct. So like car inflation. Why is car inflation -- because it's not of regular inflation? It's because the product doesn't exist.
GLENN: So it's just driving the prices up. So you have both of those things.
Back when you could raise interest rates, to 19 percent, you still had a healthy supply chain. You still had, you know, people that would work. We have people that won't work now.
We have plenty of jobs. It's like 1.6 jobs for every person that's willing to work. That's a lot of jobs that we could still fill. But people won't work. So you not only have the supply chain, because you can't get the materials. You can't get the people to assemble it. And then, because of that, the price goes up. Because there's just no access to them. So a here's the price level.
Then what do you have? Then you have people not being able to afford it. So they need to get a bailout from the government. Which prints more money.
And then the government is going to come in and say, price controls. We have to push that price back down. But then you put everybody out of work, because companies can't afford to make them. There's a reason the prices are going up. It's like gas. They're ripping people off. No! You're doing everything you can to destroy oil and the market. So, of course, the price is going to go up. You want the price to go down?
Take all of these restrictions away. So you're in this impossible spiral. I'm telling you, I don't just it's going to be -- I don't think there's a way out. I've talked to a lot of people.
I just -- I think we're in this spiral now. There's a way to slow it down. But there's not a way to stop it.
It's going to have to crash. We're going to pay. I've said this for years. You're going to have to pay the bill.
I do not know how it ends. It's going to end in some sort of economic reset. And I worry, with the kind of reset that everybody is talking about.
But you have to do the responsible thing. You are -- I want you to know how important you, as an individual are.
You are doing the hard part now. Most people don't want to know it. They don't want to know it.
There's nothing I can do. Yes, there is.
Information is power. Look, Book of Revelation. Did God give that to us to freak us out?
Because I don't know about you. It's kind of scary.
He gave you the information, so when you see these things happening, you're not freaked out.
Because everybody else is going to go, what the hell is going on?
And you will be calm enough to say, I know what's going on. Don't even go that way. Go this way.
We have to rely on each other. I'm convinced that this audience saves everything, in some form or another. There's a reason we're together.
And honestly, it is an honor to serve you and to help you. I'm doing my part. Your part is to listen. And then at some point, you're going to have to take it.
That's coming. It's coming.