Government is Responsible for Inflation!
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I think if I see another talking head out there trying to guess what the Federal Reserve is going to do You’re gonna go another quarter basis point. I think you’re gonna go another quarter and they’re gonna stay in pat. I don’t think that they should It don’t matter All right Doesn’t matter The Fed cannot lower inflation right now kids can’t do it
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can’t do it and I’m going to explain to you why. First and foremost, what the Fed needs to do, we’ve made this perfectly clear, is to put up, I don’t care, raise a quarter basis point, but then go the blank away. Go away, let the rate, just walk away. I don’t wanna hear from you, I don’t wanna see from you. We don’t need rate cuts later on this year, even if the economy weakens, it’ll be fine.
(00:56.950)
It’ll be fine. Let rates settle where they are. Just get the hell out of Dodge. But again, we got an election coming up, so the Fed will be politicized again, guaranteed. Anyway, you have any idea, you have any idea how much regulatory costs are in the United States a year? What it costs the economy, what it costs you and I? Guess, two trillion.
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$2 trillion a year in regulatory costs. Now, if we were to assume, I don’t know, I kind of figured out, you know, the population of the United States around 330 million. That’s every man, woman and child in the United States. That equates to about $6,000 per person a year. Okay, regulatory costs. Are they not inflationary?
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When the government forces a business to do something a certain way, it might make their product more expensive. And who pays? Who pays? Businesses. No, no, no. Business just pass that cost on down to you. Again, this is the reality of the world and Econ 101, which unfortunately most people quite frankly don’t understand.
It’s getting back into that argument in regards to corporate taxes. Tax corporations raise the taxes on them. All they’re gonna do is pass the costs on down to the consumer. It’s a cost of doing business. So let’s go through this current, I mean, it’s a storm. Okay, tsunamis of regulations that are coming down the pike that’s going to make everything more expensive. Now, before I do that,
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we’re already starting to see murmurs and rumors and this and that in regards to various different central banks, European Central Bank, that they’re starting to recognize that this low 2% target, even our Fed’s 2% target, I said it’s a joke. It really is. It’s a joke. They’re not, based upon what the government is doing right now and the added costs, they’re not gonna get it down to 2%.
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No way, not with the current crop of characters, not with the current crew that is in there. It’s just not going to happen. Anyway, let’s look at these costs. Okay, first and foremost, the president signed an executive order directing federal agencies to invest in disadvantaged communities disproportionately affected by pollution and climate change. Can somebody give me a…
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A neighborhood that’s been affected by climate change? Huh? Anybody. I could, what municipality, what city has been affected by climate change? I could really say, you know what? We’ve been affected by it and actually prove it. I mean, again, in a court of law, you can go back, you know, forever and ever and ever and take a look at other, you know, extreme weather measures, whatever it may be throughout history.
and make the entire thing into a joke. But yeah, yeah, affected by pollution and climate change. We’ve got a new office, again, more government workers of environmental justice to coordinate all environmental justice efforts across the federal government and require agencies to notify nearby communities if toxic substances are released from a federal facility, again.
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We don’t do this already. This is not part of the EPA. Listen, okay. I’m a realistic greenie, okay. I live in the real world, okay. Conservative, I like to conserve, okay. I, all that stuff drives me absolutely berserk, okay. And companies that pollute and do all that, they need to be punished. I get all of that.
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But don’t we have this already? Isn’t this superfluous? Yeah, it is. And it’s gonna raise costs. Okay. The EPA is gonna propose, okay, this is your energy costs. The EPA is gonna propose first controls on greenhouse gases from power plants. If the regulation is implemented, it will be the first time the federal government has limited carbon emissions from existing power plants, which…
generate 25% of US greenhouse gas. Mm-hmm. Okay. Them to capture the pollution from their smokestacks, technology used by fewer than 20 of the nation’s 3,400 coal and gas fired plants. This regulation would be the first time the federal government has restricted carbon tax animations from existing power plants, which generate about 25% of the planet warming.
pollution produced by the United States. It would also apply to future plants. Again, and people may want this. Okay, they think that this is a great idea. I think this is a wonderful idea. You know what, we wanna clean out the air. We don’t want that carbon going into the air. And that’s an argument for another day that I think is, again, patently absurd. Your energy costs are gonna go up. So when they do,
Don’t bitch. Don’t complain. Hey, you wanna go carbon free? We could do that. You go nuclear. But again, you can’t build any nuclear power plants here in the United States. Hey, the big banks won’t even finance them because of all the regulations that are involved and how difficult it is to get these things done. So I want to tell you.
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I really don’t. I mean, we’re shutting them down. Why would we do that? Again, expect to pay more. It’s inflationary. What does this do? This adds to the cost of businesses. They’re gonna have to raise their prices across the board. It’s gotten insane everywhere and how expensive things have gotten. Okay. Oh, and by the way,
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You know, all those green energy credits that are being passed around like candy on Halloween. 90%, 90% are going to big banks, big businesses. They’re getting 90% of those credits out there. Again, I explain this how Washington, DC has become such a power center. You have to be, you’re a big business, you’re a big corporation, you better have offices in DC.
You better have a bunch of lobbyists, a bunch of people working for you because you want that government money. You want that government money. You know what they all talk about? All right, corporate welfare. What the hell is this? Why, EV credits are not corporate welfare? Solar panel credits are not corporate welfare? Here’s a quick story. Just popped into my head. Popped into my head, it’s going back. This is during Obama’s reign.
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during Obama’s reign and he was trying to, you know, he’s got his green jobs initiative and 2008, 2009, he comes in and he gives all of these subsidies and gives money to states, gives money to states to try to convince people to put solar panels on the roof of their house. So I got a phone call one day, I got a phone call one day from the solar cell salesman and a solar cell salesman.
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Says, I got great news for you, Chris. We’ve got great news for you. We Google Earthed your house. And they asked me what I paid a month in electricity costs. Again, a house with seven people living in it, my in-laws and kids and family. Just a decent amount of energy. But anyway, neither here nor there. And he’s great, oh, just a calculation. You know what? For $35,000.
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Okay, we can put solar panels on the roof of your house. And I’m like, okay, you know, obviously I continue to listen. Sometimes you just need to shut up and let these guys keep talking. And you know, it keeps talking. Then I’m like, well, how much will these panels, how much these panels save me a month?
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something like a hundred, a hundred and fifty bucks.
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And I’m saying to myself, what? Well, you want me to spend $35,000? $35,000 on something that again, is going to degrade over time to save $150 a month. The guy’s like, wait, wait, wait, wait, wait, wait. He had the answer for me. Right then and there’s like, oh, we got tax credits. You get the federal tax credit. And then if you got the state one too, if you do it right now, they’re gonna run out of money.
You get the state one too, and then you’re gonna only end up paying like, you know, 18, $20,000. This is great. And I kind of ended the conversation. I said, so let me get this straight. You think that, you know, I, I want to go ahead and have my country. Borrow money from China, borrow money from China to purchase solar panels from China that are inefficient by any sort of.
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you know, sane way of thinking, you want me to do that? You think that that’s something that I’m gonna do? And he kind of shut up.
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But anyway, it’s what happens. And we’re seeing it, like I said, one new regulation after another. Your prices are not going down, kids. They’re going up. Watchdog on wallstreet.com.
