The jobs report did not tell the whole story.

0:00 Speaker 1 The number one show on Fox Business on Monday through Friday between four and five and the number one show on Saturday mornings between ten and one. Larry Kudlow, it was a complicated week. Tell us about what do you think of what’s going on with the economy.

0:19 Speaker 2 Well, I’ll tell you what, John. My favorite story is Hollywood going on strike. And the reason I love this story is the Hollywood Writers’ Union and all the technical people behind them are complaining about Biden inflation and that their real wages have gone down. Now, this is Hollywood, left wing, woke pro Biden. They’re going on strike. Their

0:47 biggest justification is their real wages have gone down because of the inflation. Even though inflation is cool, they’re talking about the last couple of years. So I’m waiting for them to do a six part series on why all by Nomics is terrible idea. Okay, maybe they’ve learned something.

1:06 And the other thing I like about this story is that Bob Iger, who’s kind of leading the producers and the studio owners and the capitalists. He’s complaining that the writers make too much money. Now this is Iiger, who runs one of the most woke corporations in America Disney.

1:25 All right, so Iiger really at heart is the capitalist who’s declaring class warfare against his own writers. So this is just a fabulous story and we had a lot of fun with it on our show tonight.

1:38 Speaker 1 Well, I was listening, and yo, I listened to your show between four and five. That way I can decide what we’re going to talk about.

1:47 Speaker 2 The other thing, John is kind of goofy is you’ve had a very low inflation rate, and the leading indicators of inflation are all down in verse heel curve commodity prices. Of course, that is going to tighten two more times.

2:03 That’s what they’re saying, once at the end of this month and again in September. I don’t know that they’ll do it in September. So let me get this right. Inflation is down, but they’re still tightening. I’m not sure I understand.

2:16 Speaker 1 I was with Maria Balomo on Wednesday or Thursday, I forget, and I said to all those people that were advocating, oh yes, yes, we gotta to raise it again. I said to them, six months ago, you couldn’t dream that you only had three percent inflation, and now you want to you want to keep raising it. And you know,

2:38 the banks are doing well. By the way, Chase Manhattan Bank JP Morgan made a great learnings, isn’t it.

2:45 Speaker 2 Yep? Yeah. Look at the stock market has done well this year, and there’s a lot, you know, a small but important minority of investor analysts who said stocks are going to continue to do well. And I think part of that is inflation is coming down, and I think, you know, interest rates are going to slowly come down

3:08 even in the long end, no matter what the Fed does. So I think there’s some positive things going on out there. The only trouble is on the other side of the coin. Budget policy is still very, very expansive. The CBO came out with their numbers. The budget deficit is one hundred and fifty percent higher than last year to the first

3:32 nine months, and we’re heading towards a two point two five trillion dollar budget deficit. And of course the culprit here is not revenues, it’s overspending. And the point is you’ve got budget policy. Fiscal policy is inflating with its spending, and monetary policy is trying to deplate with its tightness.

3:54 The two of them should work together, and unfortunately they’re not, and that is a problem for the economy.

4:01 Speaker 1 Well, I told Chairman Powell on on Fox Business the other morning, you should go down a point right now to save up that in my.

4:10 Speaker 2 Opinion, Well, look, I think the optimal story here is defense should keep rates where they are, stop manipulating them. They should continue to drain from their balance sheets. But on the other side of the coin, you know, instead of spending more, we should spend less. Instead of regulating more, we should regulate less. Instead of taxing more, we should

4:34 tax less. In other words, let’s have some supply side growth and then a stable, strong dollar. That’s the key, and that was the magic of Ronald Reagan many years ago. And also I might add Bill Clinton followed in his in his footsteps, but we don’t have that right now.

4:54 So I think the outlook for the economy is very poor. I hope inflation stays down. I’m I’m not sure it’s going to stay down, But the stock market lives on profits. Prophets look okay, So for the moment, we can all live happily ever after. And Hollywood’s got to come out with their antibidnomics, so we six part series.

5:17 Speaker 1 Can be the star with Russia and Opek are trying to shirt a pot and raise the price of oil, which will raise the price for inflation. And I guess that’s you think.

5:28 Speaker 2 They can do it, John, I don’t know, get away with it.

5:31 Speaker 1 They’re not getting away because you know something, Larry, like we talked about gonna they lie to each.

5:38 Speaker 2 Other, right, that’s right, Russia, sorry, Arabia.

5:43 Speaker 1 They’re all lying to each other.

5:45 Speaker 2 And John Terry is going over to China to make deals that no one will.

5:49 Speaker 1 Ever know about.

5:50 Speaker 2 That’s maybe the scariest bar of the story. The guys are rogue. I mean, he doesn’t report to anybody. He’s a cabinet member who wasn’t confirmed by the US Senate. There’s no account ability. Lord knows what carry is going to do or say in China. I mean that’s a bad wildcard.

6:06 Speaker 1 What’s Biden doing with your student loans? Oh?

6:09 Speaker 2 My god? So they’re trying to they’re trumpeting now that’s thirty nine billion dollars. The Supreme Court just said you can’t do that. You don’t have executive authority without congressional legislation. And they insist on it. They’ve got some income based tests eight hundred thousand people are seeing their loans forgiven.

6:29 It is completely counter to what the Supreme Court just said. And then you can bet there will be lawsuits. I mean, this is the Bidens who love to talk about democracy, right, here’s the Bidens undermining democracy by undermining the Supreme Court.

6:44 We have three branches of government. They seem to forget that.

6:48 Speaker 1 Larry Kudlough will be listening to you ten o’clock tomorrow morning on WABC radio dot com and seventy seven WABC on your iPhone app world wide in one hundred and eighty five countries. Thank you, the solar system, Thank you so much about no