The world suffered from covid but we are coming back.

0:00 Speaker 1 What is today is David Malpass and he was four years as the World Bankrupt President, and he also served in Undersecretary of Treasury of International Affairs for the United States, so six years of public service. One smart guy. He knows where the international market is. How are you, David, Hi?

0:26 Speaker 2 John, good to talk with you. I’m good. I’m just worried about global growth. You know, things aren’t going well in quite a few parts of the world.

0:35 Speaker 1 Well, I was on. I issued a press release the other day after the CPI came and I said that there’s an economic struggle going on between the United States that wants fifty five or sixty five dollar oil versus Russia and the Opic nations that want eighty five dollar oil.

0:58 And it’s me economic war. And Russia needs the money for their war in the Ukraine, and Russia needs their money for their newly started war through the Wagna Group in Africa. And you know who’s gonna win that economic war of oil.

1:22 Speaker 2 I’m worried that they’re winning. You know, Russia’s working with Saudi Arabia with some of the other producers, and so they limit their production. That drives up the price, and that has consequences all over the world. It hurts poorer people because they need energy a lot. They need it to produce electricity, to produce clean water, and to get

1:43 their economies growing. From Russia’s standpoint, it’s okay to have the world destabilized by high oil prices. Also, it’s connecting Russia to China more and more every month, and that’s a negative for the long term. It’s it’s not useful to have those two powers to Russia’s the biggest country in the world. China is the used to be the

2:10 biggest population. I think India now has taken over, but China’s got a powerful economy, and the two of them together are not a good alliance against the US. It comes at a time, I mean, think of the unfortunate timing of all this. The strategic petroleum reserve that the US used to have has been cut massively. It’s down

2:33 below three hundred and fifty million barrels, and so that’s not enough to really call strategic. And it’s coming at a time when the economy isn’t as strong as it ought to be. We’re at full employment, and yet the numbers come in still on the weak side. And all of this, I think connects to not being willing to

2:54 produce enough energy for what the US needs and the world needs.

2:58 Speaker 1 Well. I made a pressure released in the day where America all they have to do to win that strategic war of economic war with gasoline is the open up their spigots in Alaska, United States and Canada. We could probably take it up to at least ten to fifteen and the price of world will come down and no

3:25 longer will Russia and Open nations control control of supply.

3:35 Speaker 2 Clearly, there’s been more production than anyone thought. Remember back a few years ago, they were talking about Hubbard’s peak and they’re being a shortage of oil, but it turned out not to be true. In fact, a big part of the production in the US is from the Permian basin.

3:50 But I think there also needs to be an address for those worried about greenhouse gas emissions from a climate. From a climate standpoint, really need to recognize that what the world is doing right now, because of high oil prices, they’re turning to coal, and so you see this giant resurgence of coal, and so in Europe their greenhouse gas

4:14 emissions are going have gone up because of the shortage of natural gas and because of the high price of oil, and so this is harming from whichever way you look at it. I think there should be more burden also on the Fed to realize that if they’re trying to bring inflation down, they have to be more pointed at

4:35 the supply side of the economy. Get US output up and world output up, and you’d be able to bring interest rate down, not keep pushing them up.

4:46 Speaker 1 And I also said that interest rates, the power should consider lowering interest rates because our economy, you know, with the inflation at three percent, I think that’s sufficient to look all our interest rates that because of country is suffering and the banks are scared to lend money.

5:07 Speaker 2 John, I’ll push back on that a little bit. I think it’s really important from a communication standpoint that the Feds say and really mean that they’re going to beat inflation. Three percent inflation, I think is too much. But I think the way that they can do that is to recognize that they the FED, play a critical part in

5:27 the supply side of the economy in getting production up. They could talk about in the long run, the dollar is going to be a strong, stable currency, and that would comfort markets and people would want to make more investments in things that would give them a long term payoffs.

5:44 So communicating that we’re going to have a policy both on the fiscal side, I think the FED should be speaking out a little more, quite a bit more on the idea that the government’s got to stop just blowing the budget deficit every year, year after year. They go way over where they should be in terms of government spending.

6:03 The FED, the FED has a role in that because they’re responsible for stability of prices and stability of the dollar, and it’s very hard to do when the government is spending this much money. So the FED could talk about it could talk about fiscal and they could certainly talk about the dollar being stable for the long run, and

6:23 that would get people investing more, prices would come down and the FED would be able to cut. That should be their their their goal. The goal of the FED should be getting to rate cut, helping the economy get to rate cuts as soon as as they can agreed.

6:42 Speaker 1 In addition, one of those breakfasts that we have on Saturday morning, we we had a NASA person on a couple of weeks ago, and and uh, they blamed the global warming on the United States, And I said, to them.

7:00 You got three hundred million Americans, three hundred and thirty million whatever, You got three billion Chinese and Indians and they pay no respects at all to global warming. Don’t you think we should have them before we pay respects to global warming, before we punished the American people.

7:26 Speaker 2 Okay? One problem with that argument is historically the US has produced a lot of greenhouse gas emissions. So I think in order to really talk about the issue, you have to have both the historical analysis where did the emissions come from, and then where are they going to be coming from over the next thirty years, so a projection,

7:50 and then actually have policies that address the concern. And one of the problems is at each point, what is happening in in the real world is people are looking to spend as much money as possible on the problem rather than actually fixing the problem through reduced greenhouse gas emissions.

8:12 And so that that gives you a huh. So we need the data to show that China and India not only produce a lot of greenhouse gas emissions now, but end up planning to do a lot more of that into the future, and that’s not going to be solved by electric vehicles. That has to be solved by by

8:35 conversion of their economies. We haven’t talked about, John, but nuclear power I think is really important, and increased production of natural gas. Both of those have less carbon intensity, lots less carbon intensity than the current energy mix in the world. Bottom line though, is the people in the world need lots more energy, especially the poor. And so

8:58 if you’re if your answer no, no, we’re not going to do that, then you’re really dooming people to hunger, to lack of education, to malnutrition for the children. And that’s the real world. You mentioned Africa at the beginning.

9:12 They’re in a dire straits. I was in Niger in March. I spent a lot of time with the president and one of the big concerns that he has is China is the one helping them produce energy and they desperately need energy. It’s not a balanced global economy with the US being weak in Africa.

9:32 Speaker 1 Agreed. And you talk about nuclear energy. I had Governor Youngkin on the other day and we talked about the SMO small modular reactors that are like go start coming to the United States by twenty thirty to produce nuclear energy to substitute for fossil fuels in the future.

9:53 Speaker 2 Wouldn’t it be good if the government were saying that is going to be an important part of the solution to the climate, to the climate challenges.

10:05 Speaker 1 Well, I look forward at a time, but I look forward to many more discussions, especially how to help the world on energy in the future. And God bless you and thank you for everything you’ve done for America. Continue to speak out for America again. God bless you, and God bless America. Thank you so much.

10:25 Speaker 2 Thanks John