Fluctuating oil prices underlying cause of inflation.

0:00 Speaker 1 Joining us now is Larry Cudlow, of course, the great host there on Fox Business and the number one Saturday show on WABC ten am to one pm, with the numbers through not just WABC, but through the world, all the countries. And we can’t forget the stratosphere, of course, Larry, we always have to bring that in. And John, I

0:24 know you’ve got some great questions for Larry.

0:25 Speaker 2 Solar system rata. It’s the solar that’s right.

0:28 Speaker 1 I can’t forget that too, and the Milky Way. Don’t forget the Milky Way.

0:32 Speaker 2 I want to just extend the discussion with Professor Alan Dershowitz, who is a good friend and a frequent guest on my TV show. What is missing here is the fact that the Biden administration has virtually suspended the sanctions on Iraq.

0:53 So when you look at the numbers, I mean, Danni Yellen yesterday said, oh no, we haven’t relaxed the sanctions. So you have to explain why their oil revenues have gone from virtually nothing to sixty or seventy billion in two and a half years, or their foreign exchange reserves have gone from virtually nothing through about seventy five billion

1:22 dollars or their record sales of oil to China. You have to say, how did this happen? Well, the answer is they’ve essentially suspended the sanctions. And it’s not only oil sanctions. They have suspended the sting sanctions. They have suspended the banking sanctions, they have suspended the commercial business sanctions.

1:49 That is the reality. And by the bye, those sanctions were mandated by Congress, and in fact it was a bipartisan mandate through legislation. The bad actors on that sanctions list North Korea, Venezuela, Venezuela, Iran, and then more recently Russia with respect to the war on Ukraine. Now, these sanctions must be restored. And I think we had Senator

2:21 Jonie Ernst on the TV show just moments ago, and she’s got a bipartisan group. They’re very strong supporters of Israel, and they may be able to reinvigorate the legislation and go to work right away next week on imposing sanctions.

2:42 I mean, the Wall Street Journal called Iran the hmas ventriloquist in the editorial page today. This is about Iran, and Joe Biden’s speech on Tuesday failed to mention Iran. Now I’ve harped about this every single day this week.

3:02 All my opening riffs have been about this. But this is the key point. Alan Dershowitz’s right. It would be great if we had Munka bussers and went after the nuclear facilities. I get that. But before we get to that point, we should just restore the sanctions. They had no money. They had no money at the end of

3:22 twenty twenty in the last the administration, the Trump administration. I had Steve Minushan on the show tonight, former Treasury secretary, and we talked at some length about this. So that’s the key point. That’s the key point. And let me tell you, Saudi Arabia doesn’t want a big war, Okay, the UAE Abu Dabd Doha, they don’t. The Gulf States

3:46 want peace and prosperity, and they’d rather do business with Israel, Okay. They don’t want to have to be pulled back into some kind of Iranian hamas has bol of war. But the United States has to stop financing ere that’s the key point. And you’ve got Jake Sullivan and you’ve got the Secretary of State Anthony Blincoln, who have looked the

4:07 other way, you’ve got Iranian cutouts inside the State Department and the Defense Department. Their whole policy for it’s making a deal of the Iran was wrong from day one, and unfortunately those chickens are coming home to roost.

4:24 Speaker 3 Well, Larry Kudlo, you’ve said, you’ve said it all. There’s nothing else to say. I mean, I estimated that Iran is taking in almost two billion dollars a week in oil revenues because of the of what we have allowed him to do. And the other thing. President Biden has refused to acknowledge that Irene is behind Hamas situation, which

4:49 I believe it might be a signal to to Israel and say, well, you don’t have permission to take out Iran’s nuclear the capabilities, and.

5:03 Speaker 2 I don’t know that, I wouldn’t speculate just yet. I mean, the issue before Israel is to go in. The commandos have already in the war. The ground war has already started there in Gaza City. The issue before Israel now in the next weeks and months is to clean out five thousand Hamas terras who are armed, who surprised Israel.

5:27 But that’s their mission, and I have great confidence in the idea. Great, that’s point number one. Point number two. You just have to ask yourself. I mean, I’m watching Janet Yellone, this undistinguished Treasury secretary yesterday, and she’s saying, well, we didn’t relax the sanctions. So I’m saying to myself, I know what the numbers are. They’ve gone from roughly

5:48 four hundred thousand barrels per day John to over three and a half million on their way to four million. And the revenue we’ve gone from virtually nothing to about sixty five or seventy billion. Right, So you say to yourself, well, if we didn’t suspend the sanctions, how they get this?

6:10 Because the sanctions say, by the bye, no shipping, no selling, no banking, and no business. And in fact, the secondary sanctions take them out of the entire dollar US dollar constellation. Over ninety percent of the world’s transactions are done in US dollars. The sanctions stipulate that third parties, not just US, but third parties cannot do business with Iran if they

6:43 expect to be included in the dollar universe, which is so called the fed wire and the clearinghouse banks. That has to be enforced. You start enforcing that, and you will turn Iran back to an economic basket case, which is where we let them three years ago. And of course they were instrumental in planning this and financing this

7:06 Hamas invasion. So you got five thousand Hamas terraces. You got to clean them out. But meanwhile you can go after the banker and the finance here and the planning. Now the bank don’t I don’t know if the Bible will do it. All right, I’ll get it. I’ll shut thank you.

7:25 Speaker 3 I’ll be listening to you. To you in w ABC tomorrow between ten o’clock and one o’clock. Rita, I turned to you, all right.

7:31 Speaker 1 And Larry, thank you for the update all the way from the Milky Way, which we always appreciate. And by the way, your your comment was so powerful. US has to stop financing Aran. Larry Cudlow, thanks so much,