RUSH TRANSCRIPT You can ░░░░░░░░ a lot about basic ░░░░░░░░ from great quote David ░░░░░░░░ and author of is ░░░░░░░░ free lunch Two hundred ░░░░░░░░ fifty economic truths proves ░░░░░░░░ true this is in ░░░░░░░░ new video from prager ░░░░░░░░ see it at prager ░░░░░░░░ where we teach what ░░░░░░░░ be Yeah that s ░░░░░░░░ great great great video ░░░░░░░░ illiteracy is a pandemic ░░░░░░░░ of panic more than ░░░░░░░░ it in my opinion ░░░░░░░░ david latest just came ░░░░░░░░ at least to my ░░░░░░░░ now but it is ░░░░░░░░ in the last half ░░░░░░░░ I think so the ░░░░░░░░ has raised interest rates ░░░░░░░░ half a percent the ░░░░░░░░ increase since two thousand ░░░░░░░░ are your thoughts on ░░░░░░░░ Well what it was ░░░░░░░░ of anticlimactic because the ░░░░░░░░ market knew that they ░░░░░░░░ in this is part ░░░░░░░░ the new fad which ░░░░░░░░ will not surprise markets ░░░░░░░░ whether they re raising ░░░░░░░░ are cutting rates they ░░░░░░░░ going to be telegraphing ░░░░░░░░ and so we ve ░░░░░░░░ for some time Fifty ░░░░░░░░ points was coming The ░░░░░░░░ actually quite a bit ░░░░░░░░ now in the fact ░░░░░░░░ matter is that the ░░░░░░░░ issue is the balance ░░░░░░░░ and a fad day ░░░░░░░░ all these bodies that ░░░░░░░░ sitting on their balance ░░░░░░░░ and they have to ░░░░░░░░ out what to do ░░░░░░░░ That s a bigger ░░░░░░░░ than the interest rate ░░░░░░░░ that story Well essentially ░░░░░░░░ Fed the for financial ░░░░░░░░ kept about five hundred ░░░░░░░░ dollars on their balance ░░░░░░░░ That seems like a ░░░░░░░░ number but then they ░░░░░░░░ four trillion dollars in ░░░░░░░░ five years after that ░░░░░░░░ that they were buying ░░░░░░░░ with money that didn ░░░░░░░░ exist and that money ░░░░░░░░ sit on that Banks ░░░░░░░░ reserves and nothing really ░░░░░░░░ with it And it ░░░░░░░░ away for the family ░░░░░░░░ of put liquidity in ░░░░░░░░ financial system Den colvin ░░░░░░░░ went on a tirade ░░░░░░░░ the same thing and ░░░░░░░░ it going until just ░░░░░░░░ months ago They just ░░░░░░░░ two months ago and ░░░░░░░░ the financial emergency a ░░░░░░░░ It was done two ░░░░░░░░ ago So now what ░░░░░░░░ you due to start ░░░░░░░░ pull some of this ░░░░░░░░ well with without Tipping ░░░░░░░░ economy in recession it ░░░░░░░░ very difficult Japan ran ░░░░░░░░ their balance sheet 30 ░░░░░░░░ ago and they re ░░░░░░░░ doing it today So ░░░░░░░░ s no precedent for ░░░░░░░░ to get off at ░░░░░░░░ If you Based on ░░░░░░░░ last comment if you ░░░░░░░░ enter the world of ░░░░░░░░ lennon and reimagine not ░░░░░░░░ didn t say read ░░░░░░░░ imagine An ideal economic ░░░░░░░░ structure for the country ░░░░░░░░ could begin to get ░░░░░░░░ out of this horrible ░░░░░░░░ While would it be ░░░░░░░░ m bound by Thomas ░░░░░░░░ vision which is constrained ░░░░░░░░ because there is no ░░░░░░░░ and there s no ░░░░░░░░ free scenario And yet ░░░░░░░░ your question I would ░░░░░░░░ doing the things that ░░░░░░░░ it bad and I ░░░░░░░░ start doing more The ░░░░░░░░ that made it good ░░░░░░░░ if you re in ░░░░░░░░ ditch quit digging do ░░░░░░░░ spend above your means ░░░░░░░░ We cannot pay back ░░░░░░░░ this debt immediately but ░░░░░░░░ can stop running up ░░░░░░░░ debt immediately That s ░░░░░░░░ number one biggest issue ░░░░░░░░ Federal Reserve only needs ░░░░░░░░ be such an important ░░░░░░░░ of the economy because ░░░░░░░░ government spends out of ░░░░░░░░ The government spends out ░░░░░░░░ control as the people ░░░░░░░░ to want them to ░░░░░░░░ there a danger of ░░░░░░░░ us dollar enough being ░░░░░░░░ world s currency The ░░░░░░░░ is of course there ░░░░░░░░ always a danger but ░░░░░░░░ s a tough thing ░░░░░░░░ conservatives because to over ░░░░░░░░ in this point can ░░░░░░░░ cause us to lose ░░░░░░░░ First of all it ░░░░░░░░ that there s another ░░░░░░░░ waiting in the wing ░░░░░░░░ the euro and the ░░░░░░░░ are not exactly knocking ░░░░░░░░ the door of greater ░░░░░░░░ score monetary responsibility than ░░░░░░░░ have so The greatest ░░░░░░░░ for the dollar has ░░░░░░░░ for some time that ░░░░░░░░ s the best house ░░░░░░░░ a bad neighborhood The ░░░░░░░░ currency is not about ░░░░░░░░ become the world s ░░░░░░░░ currency but it certainly ░░░░░░░░ is taking a better ░░░░░░░░ They have a more ░░░░░░░░ monetary framework than we ░░░░░░░░ and it s indeed ░░░░░░░░ He starts allowing them ░░░░░░░░ buy oil denominated by ░░░░░░░░ yuan Instead of u ░░░░░░░░ dollar then that s ░░░░░░░░ big issue but the ░░░░░░░░ will not lose it ░░░░░░░░ reserve currency any time ░░░░░░░░ because we do still ░░░░░░░░ superior demographics entrepreneurial DNA ░░░░░░░░ point is why play ░░░░░░░░ that Why risk it ░░░░░░░░ slowly change It lets ░░░░░░░░ it for generations to ░░░░░░░░ Do you really clear ░░░░░░░░ is a joy clarity ░░░░░░░░ my listeners know but ░░░░░░░░ were relocated Where am ░░░░░░░░ talking to you know ░░░░░░░░ I m in my ░░░░░░░░ York City office and ░░░░░░░░ one in the morning ░░░░░░░░ ll be back in ░░░░░░░░ California I m fine ░░░░░░░░ my New York presence ░░░░░░░░ my California presence tonight ░░░░░░░░ don t worry my ░░░░░░░░ won t get any ░░░░░░░░ no matter where I ░░░░░░░░ take off for banned ░░░░░░░░ So sure you have ░░░░░░░░ been asked this publicly ░░░░░░░░ are you a masochist ░░░░░░░░ I think I was ░░░░░░░░ asked that by you ░░░░░░░░ do I do love ░░░░░░░░ two areas in which ░░░░░░░░ live and work but ░░░░░░░░ it is masochistic when ░░░░░░░░ comes to to taxes ░░░░░░░░ regulation and we have ░░░░░░░░ opened an office in ░░░░░░░░ as many other friends ░░░░░░░░ both yours and mine ░░░░░░░░ done and we re ░░░░░░░░ into other red state ░░░░░░░░ friendly areas but there ░░░░░░░░ so many circumstances the ░░░░░░░░ into it and fortunately ░░░░░░░░ I that s an ░░░░░░░░ against the way you ░░░░░░░░ I view the world ░░░░░░░░ m in California because ░░░░░░░░ can afford to be ░░░░░░░░ I think it s ░░░░░░░░ and stupid But the ░░░░░░░░ is that California is ░░░░░░░░ to a place where ░░░░░░░░ s no middle class ░░░░░░░░ It s only gonna ░░░░░░░░ people who are wards ░░░░░░░░ the state for people ░░░░░░░░ have achieved a financial ░░░░░░░░ to not have to ░░░░░░░░ anymore either way I ░░░░░░░░ t think it s ░░░░░░░░ good thing Why don ░░░░░░░░ they care Oh I ░░░░░░░░ in my case dennis ░░░░░░░░ s that you have ░░░░░░░░ considerations and know Now ░░░░░░░░ m sorry I m ░░░░░░░░ I wasn t clear ░░░░░░░░ was speaking in shorthand ░░░░░░░░ don t the authorities ░░░░░░░░ California care that they ░░░░░░░░ that they are killing ░░░░░░░░ middle class But I ░░░░░░░░ I think I m ░░░░░░░░ No a now I ░░░░░░░░ what you meant I ░░░░░░░░ to think that they ░░░░░░░░ simply disagreed that there ░░░░░░░░ an ideological difference of ░░░░░░░░ Jerry Brown would make ░░░░░░░░ about look at How ░░░░░░░░ these people have stayed ░░░░░░░░ after you raise taxes ░░░░░░░░ and I thought they ░░░░░░░░ just oblivious to the ░░░░░░░░ But now I do ░░░░░░░░ you re right that ░░░░░░░░ mostly don t care ░░░░░░░░ it would require the ░░░░░░░░ of not bad things ░░░░░░░░ California It would require ░░░░░░░░ surrender of the entire ░░░░░░░░ state pride Jack the ░░░░░░░░ of a social Democratic ░░░░░░░░ that looks more like ░░░░░░░░ then the conservative American ░░░░░░░░ and for them it ░░░░░░░░ life or death This ░░░░░░░░ the entire ideology that ░░░░░░░░ met their future on ░░░░░░░░ good answer sadly favorite ░░░░░░░░ videos up with prager ░░░░░░░░ dot com it s ░░░░░░░░ seven economic truths and ░░░░░░░░ book a major world ░░░░░░░░ summer as it deserves ░░░░░░░░ be no free lunch ░░░░░░░░ you David speak to ░░░░░░░░ soon Hey everybody I ░░░░░░░░ Dennis Prager final segment