"My dad works in B2B marketing. "He came by my school for career day "and said he was a big row as man. "Then he told everyone how much he loved "calculating his return on ad spend. "My friends still laughing at me to this day." - Not everyone gets B2B, but with LinkedIn, you'll be able to reach people who do. Get $100 credit on your next ad campaign. Go to linkedin.com/results to claim your credit. That's linkedin.com/results. Terms and conditions apply. LinkedIn, the place to be, to be. - The IKEA Business Network is now open for small businesses and entrepreneurs. Join for free today to get access to interior design services to help you make the most of your workspace. Employee well-being benefits to help you and your people grow and amazing discounts on travel, insurance and IKEA purchases, deliveries and more. Take your small business to the next level when you sign up for the IKEA Business Network for free today by searching IKEA Business Network. (upbeat music) - Hello folks, welcome to Cudlow, I'm Larry Cudlow. All right, record home prices, crashing home sales, it's a kitchen table issue and it's the reason Biden right now is losing this election. We've got Charlie Hurt and Katie Pavlet who's gonna weigh in on this and much more in just a couple minutes. But first up, the CNN presidential debate, just six days away, President Trump headed to Philadelphia, Joe Biden heads to Camp David, a little bit of the difference there. Our own Grady Trimble has all the gory details. Grady, what's cooking? - Larry, President Biden has been laying low still at Camp David getting ready for next week but reporters did get a glimpse of him to ask him this. - Mr. Biden, I want to be prepped going. All right, so a thumbs up from the President there and while he stays away from public appearances, former President Trump has had several campaign events this week in Michigan last weekend and then during the week in Wisconsin, this upcoming weekend, he's got another rally in another swing state. Trump will be in Philly on Saturday night, a blue city that President Biden has visited more than 20 times since his inauguration. And even though Trump has been attacking Biden as mentally unfit, Trump says he's not taken anything for granted next week. - I'm not underestimating him. It is what it is. We'll see what happens, but you take a look at the last one. I happen to think he's incompetent for a lot of reasons. I think he's incompetent because he has gotten the worst policies, both foreign policy and internal policy. - Trump says he assumes Biden will be a, quote, "worthy" debater. In many ways though, the Trump campaign is looking past next Thursday. They're looking to schedule a rally in Virginia likely on Friday with Governor Glenn Yunken. Larry? - All right, thanks. Great in trouble, appreciate it. So it's a kitchen table election, folks. And that's the subject of the riff. (dramatic music) Heading towards the CNN presidential debate next Thursday. One would think former President Trump would be pawned together as scathing critique on President Biden's performance regarding that old political cliche kitchen table issues, which surfaced again today in the form of an affordability crisis for working folks regarding housing. Things like inflation, groceries, gas prices, all that, we're gonna get to it in a minute. But today's report, an underrated issue, looming larger and larger on unaffordable housing. Think about this, existing home sales for May came in just over four million units, which is the lowest level in 30 years. During the Trump years, by the by, home sales running around six million. Meanwhile, average home prices came in at 419,300 bucks. That's the average. That is a record high going all the way back to recorded data, which began in 1999. Pre-pandemic during Mr. Trump's term, home prices were running around $270,000 plus. And one of the keys to the unaffordable housing crisis is the mortgage rate, which has been running pretty consistently around 7% during the Biden years, compared to under 4% during the Trump years. Now, it's quite true. All these zoning related regulatory burdens imposed by blue state Democrats, that's limited to the available supply of homes. It's also true, a lot of those same blue state Democrats, well, they want to incorporate the suburbs into the cities in order to build public housing and force crazy climate regulations and stop gasoline powered cars and basically destroy the value of your home. But even the healthier red states, skyrocketing mortgage rates and home prices have made it very difficult, if not impossible, working folks of any color or stripe to afford to buy a home. And in particular, that includes younger folks. Now, not enough's been written about this from a political standpoint, but it sure should come up in the debate next week. And remember, high inflation and borrowing rates have squelched middle and lower income purchasing power anyway. It's a familiar litany, but it's worth repeating. The level of consumer prices jumped 20% under Mr. Biden, grocery prices, 21%, gasoline, 45%, electricity, 28%, new and used cars and trucks, about 20%. Weekly wages for the typical family have not kept up with prices with a net drop of over 2 percentage points for three and a half years. In other words, workers have not had to pay raise. In fact, they've had to pay cut. And if you throw taxes in, their take home pay has dropped even more. And back to the kitchen table, where in so many families, it's the woman of the house who handles the checkbook and the credit card balances, whoops, the size of 7% plus mortgage rate. Factor in a roughly 10% car loan, huge insurance costs, plus up to 25% to 30% credit card rates. None of these borrowing costs baked into the consumer price index, but they are baked into the kitchen table affordability crisis. Now, you can't take GDP to the store, but take home pay, mortgage rates, and a generally discouraged middle class suffering from an ongoing affordability crisis. Come be front and center at the CNN presidential debate next week. You can count on it, folks. It's being of counting on it. Join me right here. Charlie Hurt, Washington Times opinion editor, Fox News contributor, and Katie Pavlidge, townhall.com editor, and also a Fox News contributor. Katie, I know neither of you are housing experts, all right? But put it mildly. But I thought I'd throw that in today. Mostly because I'm tired of reporting about murders and rapes across the border. I mean, I'm quite serious about that. But the CNN debate is coming up, OK? It's going to be a big thing. And I think this housing story needs to be ventilated. It needs more air time, because these numbers today were awful. Worst prices in 30 years, high mortgage rates. Kids can't afford a home. And if you're in a home, you have trouble paying your mortgage. What do you make of it? Well, I would say anybody who goes to apply for a mortgage or anybody who is paying one who understands what the rates was under Trump and what it is now. There's a lot of people who maybe couldn't afford it then. But they really can't afford it now, because it increases your price and payment per month by thousands of dollars. So I would say people who are doing that are more experts on your mortgage rates, housing, than anybody in the Biden administration. When it comes to the debates, Trump is talking about Biden's incompetence, which may be true. But I think more importantly, he has to talk about how this administration is doing this to people on purpose. They are deliberately driving up prices. They are deliberately making it more difficult for you to have energy, your gas stove, for you to have the car that you want, that you can actually afford through all of these regulations. So reminding everybody that the reason why things are not affordable, why you can't go to the store and get the same amount that you used to, is because the policies that the Biden administration has implemented at every single level are trickling down to make it so people in this country can't afford anything. And on the affordability crisis for the housing, this is an issue that young people are actually turned away. Right. Just where I was going. No, it was red and red. I was going to go to Charlie. I think, you know, you see Trump with large gains in the polls among young people, young people, you hear this again and again, I can't afford to buy a house. I don't have one. I can't afford to buy one. I'd like to have one. Wherever you live, they'd like to have one. I think this is growing. And the other thing is, Trump said rather well with women, there was a big New York Times story yesterday, the day before about that. Most, I don't want to get into trouble here, but the woman of the house tends to have the checkbook. By the way, I haven't had a checkbook in 30 years, so I just full disclosure. Your wife does not let you have a checkbook. That's exactly right. My saintly wife will not let me have a checkbook. And with good reason. In other cases, it's very smartly. But the point is, they know how difficult the affordability crisis is. They know about borrowing rates, mortgage rates, credit card rates. They know about insurance rates. And they know about taxes and prices. So this is a big thing. Now, you tell me, Trump's going to presumably talk about this. What's Biden going to say? What is his defense going to be? Well, he's going to try to argue against math. And math is pretty obvious. And I think it's this basic math that has shown these numbers with, whether it's black voters, or Hispanic voters, or even women voters. To me, the most shocking numbers that we've seen have been with young voters. You can't actually believe, it's almost like they must have the numbers wrong when you look at the swing from Joe Biden to Donald Trump among those young voters. And I agree with you. I think that it is probably massively, it's driven by everything. But it has to be driven by the shock that young people in their 20s when they go out and try to buy housing. And nobody is better at sort of vivifying and making these things very clear to people than Donald Trump. He's very good. In fact, it gets him in trouble. He's so clear with some of these things sometimes. But one of the things I wish he would point out is when you have millions of new people coming into the country, and then the federal government is putting them up, housing them, for free, all over the country, you don't have to be Larry Kublow to know that that's going to drive up housing prices. And so one of the biggest drivers of the increase in housing costs are all of Biden's illegal migrants that are being put up for free by the federal government. Trump occasionally makes that point. It's a very interesting point. Trump is saying the enormous expenses of the open border and the migrants running through the interior of the country will, at some point, cut into our whole entitlement system. I mean, it's just-- It already is. --is a crowding out in economic terms. But it's just dollars and cents a term. You look at this city. I mean, familiar with all the woes of this city, they can't afford anything. They're spending so much money, $12 billion plus on being a sanctuary city, which is not a cool thing. Trump does make that point. Probably should make it some more. Well, the left has been trying to argue that this illegal immigration issue is just about compassion and people going for a better life. Trump has to make the economic argument. It undercuts everything, whether it's medical care system, the school system, public safety and law enforcement, while New York and other cities across the country are now taking money out of the budgets that American taxpayers pay for to give it to these projects for illegal immigrants. And just to navigate this problem, the people who are paying the price are paying it with their dollars and cents, and things are being stolen from them, and reallocated to people who didn't come here the right way, and who are going to cost more. And also, they also have created these little mini economic environments where they cause a supply problem in places like Texas, small towns. You'll go back to the baby formula crisis when there was a shortage of baby formula for everybody else in the country. But they had stockpiles of it in the shelters at the border. Have they solved it? They haven't completely solved it. Not completely, from what I get. But there's another example of how this does become an issue in terms of inflation in prices and a supply problem on a number of basic levels. Well, I'm going to move on. I've got a couple other beauties for you. I've been saving this up for you all week. All week, no pressure. The Bidens are so and that. The Bidens cannot even overspend properly. They can't even do this. So there's a great story. You may have seen this story. They appropriated $42 billion for broadband, internet broadband expansion into rural areas and poor areas, OK? Which sounds like a noble mission, right? The trouble is there are so many DEI and ESG woke requirements baked into it that they can't spend it. Not a nickel of the $42 billion has been sent. Now, hang on a second. DEI, climate mandates, and my favorite, contractors must hire convicted felons in order and advance racial equity in order to get their money. So there's $42 billion, which, by the way, is a complete outrage. Nobody needs $42 billion for this. Sorry, you've been done through satellites and the rest of it. But they don't have enough convicted felons. Of course, they could come to New York and ship them out. But I don't want to go there. But, Charlie, I thought of you in this. Don't ask me why. Ladies and gentlemen, it's perfect for you. Welcome to the utopia that they've been from. They can't even overspend properly. Literally, can't do it. And I think that Elon Musk, who is-- whatever you think of him-- is a free market guy and figures out how to do things with the free market, pointed out, you could-- and I can't remember the exact figures, but I think it was like that he could have hooked these people up with Starlink to the order of 120 million people or something like this for the amount of money. And they would all be on lightning speed, internet access. I mean, we look at this in the Trump administration. You couldn't spend $40 billion on this for-- we budgeted for $12 billion, I think, and didn't even want to do that. But we're kind of forced to-- Well, it seems like I'm a fan of ESG and DEI now. If it prevents the government from spending money-- Well, I know, all the sudden. --it's better than, you know, the Buttigieg approach, where they spend billions of dollars to put in seven electric vehicle chargers. I mean, this could be much worse. Wait, that's coming later in the show. It's too good to be true, but you've got to be a convicted felon in order to get the $42 billion. OK. So Trump could get it, at least. That's good. Oh, God. Thank you for sharing that. I really appreciate it. Actually, Trump, under-- we're saving his seat for Joe. One more thing before we cash out to segment. Mr. Trump-- this is sound, I think, right? We have sound from Trump talking to the Silicon Valley. Yeah, here's Trump on immigration, helping kids until we-- all the brilliant people can come to America. Here's Trump. What I want to do, and what I will do, is you graduate from a college. I think you should get automatically as part of your diploma, a green card, to be able to stay in this country. You need brilliant people. So I heard him say this. Now, this is an old-- he's always had this view. But I heard him say this, refresh this view at the BRT-- the business round table CEOs-- that I moderated with him last week. But he's repeating it. And it's a very important point. I mean, on the one hand, tough on the border, close the border, remain in Mexico, deportation, and so forth. Yes, yes, yes. But Katie, he softens it with this point of view. We want the smartest people to come here, assuming they're legit. And if you get a college diploma, we'll give you a green card. What do you think? Well, I would hope that there were some criteria for the kind of degrees that you have to get in order to get a green card. American citizenship is a very precious thing. And a green card is essentially the first ticket to get there. And so I think there should be a few more requirements. If you're a women's studies major, maybe you won't be getting a green card here. But if you're at least studies-- But if you're helping out in other areas that are beneficial to the economy, then maybe. And also, Charlie, he added H1B visas into that, too. So the technology people, Silicon Valley, who are starting to pony up big dollars for him, they're happy about that, too. What do you think? There are legitimate problems with just a blanket thing. But he didn't say just a blanket thing, or he sort of did. But he's smart enough that he, I think, when he gets into the weeds, he'll pick it apart. But a gender studies major doesn't get a green card. But it also underscores the most important thing about this guy. He's not an idiot long. He's not some crazed Washington guy. He's willing to entertain whatever makes sense. And that's why I would have a lot more faith in his ability to navigate this and come up with something sensible so we get people that help the country and stop getting older people who are going to hurt them. If he wins and he's going to come in and he's going to have deportation, he's going to try to deport people already here, criminal people, close the border, remain in Mexico, all these things. This is part of his negotiation. That's what he likes to do. He is a negotiator. And I think it's very effective, and I think people forget that about him. And we wouldn't have the problem in the first place if the Trump policies had stayed in place. And so every single person who's been murdered, raped, whatever, Biden migrants would not have happened if Donald Trump had been president. Yes, indeed. Katie Pavich, Charlie Hart. Great to see you, thanks, Larry. Love the suit. All right, folks. Be sure to catch Charlie. Guest hosting the bottom line. That's tonight. He's going to do it. MacDowell, 6 p.m. Eastern, right here on Fox Business, coming up here on Cudlow. Why is China buying up all the farmland and coincidentally just happened to be near America's military bases? How's that going to go down? We're going to talk about that and some more with North Dakota Governor Doug Bergam right here on set. I'm Cudlow. Be right back. [MUSIC PLAYING] [MUSIC PLAYING] So as you can see, we've got a wonderful view of the three different spring ponds. This is the hottest. This is typically 106. So the water is actually flowing down here. All of the green that you see on the rocks, that's really a result of all of the minerals that are in the water. So this one is the warmer. Most of the time, people stay in that one, probably about 15 minutes. Then this one is a little bit less in temperature. 102, 98 to 102. OK, but the minerals, what do they do for you? Well, lithium is a good example. Magnesium. Lithium is pretty well known for people that maybe have anxiety to get them in a relaxed state. And we have guests that will tell us that it's been very, very beneficial for them. Really? Yes. And people with arthritis, when they soak in the springs, you will also notice there is no sulfur smell to this water. It's very unique, very special. How beautiful is this? And then you get to all the benefits. Absolutely. People come up here and really enjoy it because from here, you can also see the stars. There's stars. And there's not a cloud in the sky. It's like God's country. It's just blue skies. It is. Yeah, it's very, very special. So that's our water. And then the tubs that we mentioned in the other accommodations, that is transferred down to the lower area by the resort with a pipeline that is underground so that it doesn't get contaminated. Fantastic. Oh, my gosh. This is unbelievable. Well, thank you. And they cactus, I mean, on top of it, it is just nature at its best. And who first found this? Well, the indigenous tribes. They used to come here and soak. And then the Calvary, probably in the mid-1850s area. And then it was 1896 that it was transformed into a private spa area for guests to come and enjoy it. And Teddy Roosevelt was in the cavalry, I mean, was neat. Well, there's rumor that the Roosevelt, the Rockefellers, all of the wealthy people from the East Coast, they used to travel by train, get off in Wickenburg. And then from Wickenburg to here, it was a seven to eight hour stagecoach ride. That far back, they knew where to go. I mean, it's not like they go online and say, where can I go to take care of myself this week? Yeah, this is amazing. That's very true. I think word of mouth worked pretty effectively back then. I can't wait. I'm getting in this. You have to. You have to. And I will. So there. The other one that we drove by, that's where we do paddle board yoga. People love it. That one is 86 to 90 degree temperature. And there's also an area that's shaded so that we do watsu massages. Watsu is, you're in the water. You're totally relaxed. And somebody is massaging your body. It's very popular these days. Is there a table in the water or are you just floating? No, you're floating. You have floaties on your ankles and your arm. I don't usually float in the water. Well, and the therapist is very good about making sure that the guest is very relaxed with that. After that, after you're all relaxed, what might you do after that? Well, we do have a number of outdoor activities. And I think that maybe archery would be right down your alley. Yeah, I'd love to do archery. I'm going to change and we can go shoot some bows and arrows. Let's do it. All right. You don't shoot the bow. You shoot the arrow. [MUSIC PLAYING] [MUSIC PLAYING] Hello to our friends watching in Costa Rica on cable tica. Thank you for choosing Fox. Keep it right here. Nobody. The consumer is strong. The balance sheets are strong. Breaks you America's business news. There's so much going on. And what it means for you-- We want to get some breaking news to you right now, Fox Business Alert. Like Fox Business, keeping you ahead of the curve. All the insider selling by some of the richest people on Earth. With insight into the impact of US and global markets. That's where the recipe for inflation comes from. The people you can trust. That's absent, Bob. Fox Business, America's business network. [MUSIC PLAYING] [MUSIC PLAYING] All right, so big story today right in the New York Post. It's not a news story, but it's an important one. China, buying up giant swaths of farmland, just happens to be coincidentally, I'm sure, next to many of our key military bases all across the country. All right, so the question is how this happened and how to stop them joining us now. We welcome back North Dakota Governor and Trump campaign surrogate, Mr. Doug Bergam, governor welcome. Grand Forks North Dakota is right spot on this map. You've done something about it, but I just want to add, before you do, you know, when I was in the government, we had an issue with Huawei, the Chinese phone company, that was building these old-fashioned wooden telephone poles, right? And they just happened to be building them near our bases with tiny miniature cameras to do spying. Now, is that something like that going on today with this farmland story? Well, I can't speak for the rest of the country, because not everybody's been as successful as North Dakota has in blocking this from happening. But of course, we're a state where we've had for over 100 years on the books, anti-corporate farming laws. If you and I decided we both wanted to retire in farm in North Dakota and buy a piece of farmland and farm, we wouldn't be able to do that, because we're not related to each other. It's you have to be a family member to actually own and farm in our state. So no U.S. corporation can own farmland there, no foreign corporation and no foreign political party. That's always been clear. We strengthened it with our legislature. So even today, there's no Chinese. - We thought we saw a red dot on this map. - Well, there is. - Of Chinese farmland. - There was, 'cause that was a little misrepresentation, but they did buy some land in an industrial park inside the city limits of Grand Forks. But we were successful in blocking that. Our two senators who you know well, Senator Hover, Semicremer, they were all on top of it. We had great local leadership that was making very cautiously going forward, making sure that there was no outlays. They actually got paid two and a half million dollars from this company that was interested in moving in there, that they'd be able to kept. But the reason they were able, the thing that were the real failure here is with the Committee on Foreign Investment in the U.S. Siphias. The local team calls the Siphias and says, "Can you do a review if these guys "want to build a corn milling plant in our state, "which would help the farmers? "Is that going to be blocked by Siphias?" And Siphias came back and said, "No." And so part of this goes up to the Biden administration, goes back to what are the laws? You guys blocked the stuff that you were doing on the telephone polls, got it done. But this administration said no problem, but it was only with our two senators working with the Air Force and got a letter from the Air Force, blocked it and stopped it. Some states might still be encouraging. I know I was in Michigan yesterday, they're encouraging China to come in and build a battery plant and giving them incentives, but states like North Dakota. But we need a national policy. This is why we've got to have President Trump back in the office, President Trump, who's strong. He's the first one that understood that China was an issue. You were part of that administration. We were tough on China. And I think about what he's done, whether it's tariffs or whether it's standing up to China on the border in Unfentanyl. I mean, all of this just screams that we've got to have President Trump back in the office. I mean, can you imagine Joe Biden trying to solve this problem? -People got to take a look at that map. Maybe we can put it back up on the full screen. It's a really important map because you've got the China farmland purchase scattered across the country. And with a very high correlation with our military bases. And some of these bases are a nuclear-related military bases as well. So we'll keep that on the hot warmer. The other thing is a very interesting story. McKinsey and Company did a survey roughly half of Americans. No, roughly half of people who own electric vehicles. I want to get this right. Half of those who own electric vehicles want to get rid of them and buy gas-powered vehicles, okay? What do you make of that? Because the Biden's wanted everybody to have EVs in 10 years or whatever. Here, 46% want to switch to gas cars. So the EV experiment didn't work. Now, you're from an oil-producing state, fossil fuel state. What do you make of this? -Well, I thought you were going, there's another story that came out recently that about half of the EV vehicles that had been purchased were purchased in counties in America that were predominantly blue counties. I mean, I think that people were buying them because they were afraid to go to a cocktail party and said they didn't have an EV, but we know that they don't work, and I think it's just very simple. If you believe in liquid fuels, you're on Team USA. If you believe in the whole EV, then you're on Team China because you can't have an EV car industry in this country without buying batteries from China. They control 85% of the rare earth minerals. We fought for 40 years to get off from underneath OPEC and the climate extremists who are driving policy and Biden's administration are saying, hey, let's just become dependent for our transportation future on China. And it's a ridiculous thought, particularly when it's bad for our economy because it's driving inflation. I mean, all these subsidies that they have, the subsidies for EV cars, if you total them all up, it's over $900 a ton of CO2 that's deferred in North Dakota. We've got carbon-free ethanol for $85 a ton. We've got carbon-free oil and gas and a negative barrel of oil for $60 a ton. So if you want a zero-carbon fuel, we're doing it for 10 to 15 times more efficiently with innovation than what Biden is getting it done with regulation. And this is what Donald Trump understands. He cuts so much regulation. Innovation has always been at the heart of American greatness. - Well, they've allocated $8 billion. They're supposed to build 500,000 chargers. Okay, they built seven. This is after two and a half years. So we had a story in the last segment. I mean, the Biden's can't even spend their overspending. They can't even do their overregulation properly. That's how bad they are. I've got a good Trump quote on liquid gold. He can't leave you with that liquid gold quote. Let's roll the tape on Trump, please. - We have more liquid gold under our feet. I use the term. We have more oil. We have more wells. We have more everything than anybody else. When I started, we were number three. Now we're number one. We were number one. He's gonna keep it that way until after the election. If they ever won the election, there's no more oil coming out. There's no more oil. They were going out. Oil is what caused the inflation. You'd have nothing coming out. It would be a disaster. - And I just wanna add to that. Not only the inflation and now are the issue. People don't want to jam down their throats. These electric vehicles that they don't like. But we had your colleague, Senator Kramer on, Kevin Kramer on last night. - The Biden's political management of the Strategic Petroleum Reserve, they've knocked out about a third, almost 40% of it, which we will desperately need in the case of a war with China or Russia, for example, okay? That has really compromised our entire military security. I mean, it's become a national security issue. And they're talking about another sale of Strategic Petroleum Reserve to knock gasoline prices down a couple of pennies before the election. And again, jeopardize our security. - Well, Biden's turned it from the Strategic National Petroleum Reserve into the Biden Personal Political Petroleum Reserve for political purposes only. The big drawdown was before the midterms. They did it explicitly to get the price down at the pump. China's building up their petroleum reserve. We're draining ours. But on the EV thing, the other thing, Larry, which is just impossibly bad policy, is we're running out of electricity in this country. And we're gonna have a grid crisis. We did a study in North Dakota, released about three weeks ago. North Dakota produces electricity that goes west into the SVP grid, east into the MISO grid. Dozens of states depend on our exports of electricity. And the Biden administration is prematurely shutting down all kinds of base load at the same time. They're driving, everyone's gotta have an EV gas stove. You had it up on this slide, 28% increase in electricity. It's one of things, every American, anybody who's watching your program needs electricity. They need air conditioning at home. And guess what, in the summer of 2025, if we don't reverse what Biden's doing, we're gonna have Biden brownouts and Biden blackouts rolling across our country, because the grid is becoming destabilized by their policies. And at the same time, we need more power than ever before to run our AI. The AI arms race with China, we could lose because of Biden's electorate. And China's opening up a coal plant every two weeks to help them win the AI arms race. - I've got some Friday follies, Governor. Katie Pavlitz, you just met her? - Yes. - Your answer's smart. She says you look like George Washington. You look just like George Washington, focusing on him. I don't know if we have a handy picture of George Washington. She claimed Katie's a very smart woman. And my only question is, how long have you looked like George Washington? (laughing) - Apparently about 10 seconds. This is news to me on that. - Right. Governor Doug Perkins. - Thank you Larry. - Thank you ever so much. All right folks, coming up. Do deficits really matter? - Well, I reckon they do. But at some point anyway, we're going to ask the brilliant Steve Forbes next up on Cuddler. I think he does look a bit like George Washington. (upbeat music) - Homebuilders getting hit. From financing costs to attracting buyers, how interest rates and inflation are impacting the housing market. Plus, is there opportunity to invest in the sector? Get must-see insight on the next Barron's Roundtable. Brought to you by GlobalX, Beyond Ordinary ETFs. (upbeat music) - Pilots are a breed all around. They're laser focused and determined to perform without excuses. You spend any time around the students of WTIA and you realize quickly, most never speak of competition directly. Marines are a unit and they operate as one. And each and every student pilot is gunning to be recognized by their WTIA instructors as the very best on the flight line. (upbeat music) - So if you're not first, you're last Ricky Bobby. That is the mentality that makes Marine fire pilots so needed by the Marine Corps is the desire to get better and do everything right when it counts and be that guy who comes in first on game day. (upbeat music) - Here we are, Yellowstone River, Montana, the cane boys and the mediator, Steve Renella. You can feel it, that's the wind off. It's gonna mess up the fly fishing a little bit. And these guys are nervous. Are you nervous? - Yeah. - It's gonna be rough. - You ready? - All right. - All right. - Let's catch my fish. - Come on Charlie. - Is this a good time of year? - Weather, river level, I love it. - Why is this good? - Going around, it's beautiful. - Chill. - Man, it's weird, man, it's weird. - I wonder why, I wonder why no one else is out today. - Can't figure it out. (upbeat music) - So he's trying to get him trout. He's trying to keep his line. Pretty much peremo, even his boat. Life's working, went in as a team. Keep that line just right. He's watching that bobber, he can see if it goes under. - They have a lot of faith that there are fish behind that rock. - Right there. - That rock right there, it's a conflict. There's fish sitting right behind that rock. See if we can make something a little more enticing for it. Bye. - That fish wants to lay somewhere where he doesn't need to exert much energy to hold his position. But food's gonna get washed by. So they'll use boulders to lay down and get in the current break. Gonna let the river bring food to 'em. - Yeah! - Yeah! - Giant! - Look at this wind. It's hard to get over to it. - We were fishing very close to the boat. - You're out of it, you're out of it. You're out of it, you're out of it. Giant bro. - Just like trying to do what we can to keep something in the water. - Yeah, I get to go crazy. You know, it's not like any kind of river runs through it. - It's more like a-- - Yeah, I don't care. - It's flat. - It's flat. - We're flailing the water. But just trying to keep something in the water. - Look at that sucker. I don't think we'd catch one like that. - Yeah. - Big smile. One of the things we're always kind of looking for is that color change. That spot that they got that fish out of, goes like this, that little bucket. We end up calling them with our little bit deeper water areas. It's usually more green. So as we're going down, we're looking for like that green water to try and cast into. - What's the way to do this? We take it home and make it the best meal. - Nine out of 10 trout to cast in my kitchen are supposed to be. - Yeah. - We go catch 'em to smoke 'em. - Who's winning now? Who's winning now? (upbeat music) - It's an under-appreciated, ought to be celebrating fish. - That's a great fish. - No. - White fish. - Smoke. Smoke, you're very good. - He's still got him. (upbeat music) - That was a fun day. Thank you man. Seriously. That was a lot of fun. - Did you guys enjoy it? - Thank you so much. - Probably some browns, some white fish. Almost a rainbow. - I caught it. - You caught so many. - Those are such things, a bad day. (upbeat music) - The Big Money Show on Fox Business. - The American Dream is there for the taking. - We'll show you all the opportunities out there. - And help you see the big picture. - The Big Money Show on Fox Business, invested in you. (upbeat music) - All right, this is a serious question. - I'm gonna ask my very dear friends, Steve Forbes. Do deficits really matter? We used to have debates about this years ago. Some people said they didn't. Some people said they do. Let's talk to Steve Forbes. Boundary Editor-in-Chief of Forbes Media. By the way, his book on inflation is out in paper. I'm just gonna hold it up right here. He was kind enough to sign it over to me. Welcome Steve. - So, as you recall, many of us down through the years, this fly side, growth side, deficits don't really matter. But now and again, we've never seen anything quite like this. Two trillion deficits, as far as the eye can see, over 50 trillion in total debt. What do you think about this debate? - Well, when I was one or two percent of GDP and you had spending under control, you could cope with it. But today, spending is out of control. As you know, as a percent of GDP, it's gone from 20 percent to 24, 25 percent, almost wartime levels. And then with the spending, they want to raise taxes as well. So deficit, how do you finance the deficit? Under Reagan, thanks to you and under Trump, thanks to you, it was done by growth. After World War II, it was largely done by growth. We reduced the deficit from 120 percent of GDP down to 35 before they unhinged the dollar. So it does matter because it takes resources from the economy. Government doesn't create resources. People do, and when you take those resources, put them in the hands of bureaucrats, rather than people and entrepreneurs, guess what happens? You get the kind of stagnation you have in Europe. And that's not good for us, it's not good for the free world. - And we've really never seen, as you say, we've never seen peacetime or non-depression time, deficits of this magnitude, or borrowing, and the treasure is gonna have to borrow a lot. It's gonna put a lot of pressure on the Fed. And I just wanna, people are quite calm and sanguine right now, the stock market and the bond market. You think that can last. In other words, if we continue along this path, and I don't know what the precise timing is, but unless something changes, are we headed for difficulties? Are we headed for a lot of uncertainty? Are we headed for a financial crack-up? - The answer is very, very possible. One, you have what we can't control or predict. You can have a real blow up in the world. Chinese aggression, Iranian aggression, who knows what that's gonna lead. But the US borrowing, already you've had a couple of hiccups in auction markets, and the thing is, those are concerned about the masses of the world. Where are we getting the money for those deficits? Not getting it here at home, we're also getting it from overseas. We're taking it from developing countries. We're absorbing this capital here for wasteful spending. And especially EVs and the like. You hear that. So yes, and the markets are gonna tell us, they're gonna have to pay more. And one of the crazy things Treasury still is doing is borrowing short-term, which keeps short rates high, which hurts small businesses. They should be buying more long-term bonds and not putting the crush on lending the small business. - 100%. No, I mean, it's wasteful. I mean, it's the most expensive stuff as they're selling in short-term. Last point, the dollar. How does this fiscal meltdown of sorts affect the US dollar? - Well, undermines confidence, not only in the dollar, but in other currencies around the world. Now, the dollar's not gonna be replaced, but it's just gonna be the least bad in a pretty rotten world. And the thing is, when you have these deficits, especially, let's say Biden wins or the Democrats win and they start doing these crazy taxes and the like, guess what's that's gonna do? Low growth. What that means is, harder time to finance those deficits, but the low growth is gonna mean pressure for more spending. So you're gonna get a bad spiral, where you're gonna get the Fed buying bonds again. - All right, tough stuff. Very tough stuff, I tend to think you're right. - That's why we gotta win this election. - There you go. - Deep Forbes, the best of the best is new paperback edition of his book Inflation Is Out. All right, now, let's turn next week's CNN presidential debate. What should President Trump say on Thursday night? We're gonna get some expert opinion. Florida, Congressman Byron Donalds and Corey Mills. Gentlemen, thank you very much for doing this. Let me begin with you, Byron. Where do you wanna see Mr. Trump's emphasis on the debate? - Larry, good to be with you. The emphasis needs to be this crushing inflation, Joe Biden unleashed, the terror at the Southern border that Joe Biden unleashed, the foreign policy disasters that Joe Biden unleashed. You're getting the theme, Larry. Joe Biden has been a disaster for America, and when Donald Trump was president, when he was president, the country was in a far better place. That's the theme, that needs to be the direction. - You know, just on that point, Corey, we were talking earlier in the show about kitchen table issues, as Byron referred to, but you know one that shouldn't be, that should not be neglected is housing. We had numbers out today, existing home sales the worst in 30 years, prices the highest on record, with mortgage rates also twice what they were during the Trump years. Young people can't afford to buy a home, they're very depressed about that. So it's a kitchen table issue, but the kitchen table issue is inside a house that people can't afford, Corey. And I think somebody's gotta, you know, Mr. Trump's gotta push that one right along as best he can. - Well, you're exactly right. Look, the bottom line is, is that the American dream is no longer affordable under the Biden inflation. And as Byron was just talking about, if you look at recent Gallup polls, 41% of Americans are concerned with what? Economy and inflation. That's a vast difference from the 2008 housing crash where it was only at 18%. Now you've got 11 plus million people who's come across our borders. They're looking at amnesty, they're looking at trying to buy them and make them Americans to be able to buy the secondary presidency. And they don't wanna address the key issues, which is the fact that American middle class is being completely eliminated for the elitist and for the criminal migrants who are crossing our borders. We were in a very good position. And this is where we go back to a Reagan question. Were you better four years ago than you were today? We've now seen four years under President Trump, four years under the failed Biden administration. My colleague talked about foreign policy. Look, no one knows more about Biden's failed policies than I, whenever I had to go to Afghanistan, Israel, and Haiti to rescue Americans because of the pattern of abandonment that this administration has put forward. So bottom line, we need President Trump back in the White House. - Byron, I know you talked to President Trump quite a bit. How do you want him to handle the border issue? The border issue and immigration in general. What kinds of things have you talked about? I mean, I don't want you to give away state secrets. All these are confidential. But in general, this is gonna come up. It's gonna be a big part of this CNN presidential debate. What would you advise him, Byron Donald? - My advice would be simple. I would look at Joe and I would say Joe, if you had just kept my policies instead of being dumb, the country would be safe. You wouldn't have what happened to Rachel Morin. You wouldn't have had what happened to Lake and Riley, and so many other Americans who've been victimized by these criminal aliens coming across our border. Joe, you broke the border. I gave you a great border and you broke it. And so I have to come back and clean up after you. I think that's the way that you got to take that message to Joe Biden and to the Democrats. - All right, gentlemen, thank you. I wish we had more time. We never have enough time. But I appreciate you very much, Byron Donalds. Thank you ever so much. Corey Mills did- - Thanks, Larry. - Good advice all around. - All right, folks, coming up. Did the Supreme Court just pave the way for a tax on unrealized capital gains? That's a really bad idea, a very disappointed decision. We will ask a scholar, a constitutional scholar, Jonathan Turley in just a few moments. Please stick around. I'm Kublow. (upbeat music) (dramatic music) - Maria Bartiromo's Wall Street. - I'll identify the policies that move markets so you can be prepared for the week ahead. - Fridays in seven on Fox Business. (upbeat music) - Diversity and inclusion has become a priority for toy companies. And Toy Insider shares their pick of toys reflective of the world kids see today. - Some of the great toys out there right now include guns sustainably soft baby dolls that come in a variety of different skin tones and hair colors. They're super snuggly. They're also sustainable. So they're good for the environment. You can also find the 18 inch dolls like the HBCU dolls, which celebrate historically black colleges and universities. Those are from Purpose Toys, awesome 18 inch dolls that are poseable and have beautiful hair and outfits. There's also a great company called Upbounders that has a variety of awesome toys and games. This is the stacking cubes. These have pictures of moms working different jobs. And of course it gets into that tactile play that toddlers are really gonna love. - Classic toys are getting in on the action. - G.I. Joe, the classified series. Nothing is more American than folks working together. And you can get all types of different multicultural members of the team in action figure form from the folks at Hasbro. - And the arts and craft style also has something to offer. - Grayola is bringing into the arts and crafts department with their colors of the world collection, which has markers and crayons and all different types of things that are done in the colors of different skin tones that kids may find in the world around them. Over all the toy industry, especially here in the U.S., has really grown in the past few years to look beyond what used to be considered the norm and really start zeroing in on how play. And I'm talking play in general. Four kids shapes who they grow up to become. - In Hollywood, Ashley Devorkin, Fox News. (upbeat music) (upbeat music) - I think here in Arizona, the most important thing is to find the perfect sunlight. And ours just happened to be our front yard. Nicole Hood is very proud of her front yard garden. Once she says, "Wouldn't be as lush and bountiful "without farm yard." So for about three seasons, I tried to plant on my own with no success. And then a friend told me about farm yard and Rebecca and Troy came over and just kind of gave me some of the fundamentals on how to plant, how to water. And suddenly, everyone in my neighborhood thought I had a green thumb and I'm going to completely take credit for it. - We are a design, build, and maintain edible garden company. So we build custom raised beds for our clients. We make our own compost. We do irrigation systems. - Rebecca Kidwell, co-owner of Farmyard LLC. So she and her husband, who runs a company with her, give their clients as little or as much assistance as they want or need. Their main interest is to show people how to grow their own food. - So many people come from back east or in the Midwest where they're used to dropping a seed into the soil and it immediately taking. And so out here, so many people are frustrated with growing because they think that they can do the same in our desert soils. That's not the case. You can grow fruits and vegetables 12 months out of the year in Arizona, according to Kidwell. She's preparing for spring and summer by planting melons and pumpkins and corn that she says thrive in triple digit weather. - There's something to getting your hands in the soil, grounding, getting dirty, you know, that's kind of fun to do at the end of the day and getting to share. I mean, having a garden in the front yard, we have met so many neighbors. We've kind of become a little stop on people's walks. - I would tell anyone that the opportunity to grow your own food and allow your children to be part of the process is so wonderful. Talk about getting your kids to eat their vegetables. - Hood says her children are just as excited as she is to harvest the garden and sit down together as a family for a healthy meal they help to grow. Anita Roman, Fox 10 News. (upbeat music) - So, very controversial point. Did the Supreme Court just pave the way for a wealth tax in America? And even a wealth tax without any realizations of wealth. Joining us now, Jonathan Turley, Constitutional Law Attorney, G.W. Professor Fox News contributor, Jonathan. The Wall Street Journal, welcome back. The Wall Street Journal editorial, a Supreme Court mistake on wealth taxes that means sort of around realizations. But you tell me, was this a mistake? - Well, I think that many people believe that this opinion does pave the way for wealth tax. I am not convinced of that. The Kavanaugh Roberts decision with the liberal justices was the most worrisome for those of us who have opposed a wealth tax. I believe it's unconstitutional. This is being pushed by Senator Warren and also by the Biden administration. It goes against the language and intent of the Constitution. We had to amend the Constitution to allow for an income tax, but it only allowed for an income tax. The rest has to be apportioned across the states. Now, even with Kavanaugh's decision, there's language in there that's gonna make it more difficult to have a wealth tax. First of all, he dropped a footnote saying, we're not saying that a wealth tax is constitutional, but also in his language, he goes through the history and says, this language was meant to make this difficult, that you can't treat all property like income taxes. Four of the justices signed on to even stronger language. So I think when you look at them together, I think the language overall is reassuringly negative for a wealth tax. So if anything, I would think that it makes it more difficult. But Johnson, the other issue related to this, okay, should we tax wealth or income and so forth? Whether it's realized or unrealized. Now that comes out, I mean, I'm just reading the Wall Street Journal editorial. You're the scholar, I certainly am not. But there is a debate about, I mean, can you tax unrealized capital gains? Can you tax unrealized anything? - Right, I share that view. I think it is problematic because this is certainly the road that Warren and others want to go down. They want to get away from income and start to tax unrealized gains as well as wealth in general. Frankly, that effort is practically a bit loony. I mean, I don't even see how the IRS would be able to do this. I mean, Elizabeth Warren has talked about taxing boats and paintings. Could you imagine if the IRS had to go through and value everything that you own? They've tried to also portray this as, we're just going to apply this to billionaires. But this is tax authorities, like a gas in a closed space. If you expand the space, the gas will fill it evenly. And that's what will happen if the Supreme Court allows it. So there was a lot of concern, there still is, that the decision of the court expands the tax authority a bit. But once again, when you get into the weeds on those opinions and you count the number of justices, it seems to me you've got a majority there that would not look kindly on an actual wealth tax. When it comes to unrealized gains, I think they would look to Roberts and Kavanaugh again. Those are the sort of sticky points for those of us who believe that they're moving away from the language of the Constitution. I mean, you know, income is different than capital. It's different in economic terms. Right. Income is a flow, it's what you earn. Okay, and it's what the 16th amendment was all at. And I think it was pretty clear. It has to be proportionate to the okay. Wealth is the stock of your gain. That's a different matter altogether. And the valuation of that stock of your gain. You had, the only way you can value that, Jonathan is a market transaction, which means it has to be realized. You can't possibly value something like capital, without a market transaction. It can't be done. No one knows the right answer. No, I think that's absolutely true. I think that it's logistically a nightmare. I think it's constitutionally flawed. But there's a really insidious game being played here. They're trying to convince taxpayers, this is just about tapping a bunch of billionaires and hiding the fact that once you cross that Rubicon, any wealth, any of these investments could be tapped for anyone. I think that's right. Jonathan, just in the last 30, 40 seconds or so, Judge Cannon down in South Florida, examining whether Jack Smith has the authority to be the special prosecutor. We haven't heard anything out of that. They had a hearing, I think, starting today. What do you make of that? Well, you know, this is a really interesting legal question. The odds are against the Trump team. But, you know, we have a constitution that says that you need to get a nomination that President confirmed by the Senate to be a U.S. attorney. And then suddenly you have an attorney general that says we can appoint anyone with even greater powers. That's an issue. Yeah, all right. We'll see how that one turns out. Anyway, no unrealized capital gains. Jonathan Turley, thank you ever so much. We appreciate your wisdom. Thank you. Folks, I'll be right back. (upbeat music) (upbeat music) The union representing American Airlines Flight Attendant says they are moving closer to a strike after not reaching a deal with the airline. The company offered Flight Attendants a 17% wage increase, but that offer was rejected. An American Airlines spokesperson says, quote, "This agreement is within reach." And we look forward to additional dates being scheduled. 36 degrees with intermittent clouds. Artificial intelligence is coming to Amazon's Alexa, but it could cause you to upgrade to a system that will compose an email and send it or have dinner delivered from a single prompt. An upgraded Alexa could be ready as early as July with a $5 monthly fee. Ferrari is reportedly planning to offer its first electric vehicle late next year for an eye popping price tag of at least $535,000. The carmaker says the price reflects its confidence that ultra wealthy drivers are ready for EVs. And Starbucks is responding to coffee drinkers who are spending cautiously. The Wall Street Journal says some of its grande size specialty drinks are selling for half price. Starbucks is also offering by one get one free deals, supersized drinks for loyalty members and other promotions. That's Business, I'm CJ Papa. (upbeat music) - I'm Jesse Waters. I'll be covering Democracy 24 on Jesse Waters' prime time. I was traveling around the country as a correspondent in 2016, and I was meeting real people. Shaking their hands, feeling the calluses on their grip. They knew something that nobody else knew because they were gonna determine who was the next president. You can't discount the American people. You have to listen to 'em. (upbeat music) Usually in art galleries, phones are discouraged, but for a new exhibit from one of the world's most renowned pop artists, phones open new worlds. Whoa. These are the works of Japanese artist Takashi Murakami, now on display at New York City's Gogoshin Gallery. Visitors can use special Snapchat filters to unlock virtual reality experiences that help bring the paintings to life. Many of the brightly colored avatars seem gracing the walls, and the gleaming figurines on the gallery floor are physical pieces, modeled after the same digital works Murakami created as NFTs in the metaverse. - If they email them. - People still do not understand NFTs. NFT stands for non-fungible token. They're essentially digital property that people can own and collect. And for Murakami, his exhibit is a tribute to the blending of online and tangible art. - Hey, studio. - I wanted to express how I digested the unceasing history of art created by human beings. - These fish paintings, for example, are inspired by ancient Chinese vases valued at tens of millions of dollars. Like NFTs, Murakami says no one thought the vases would one day hold such value. - High equal. - When they were created, nameless artisans drew the paintings on those vases. But through the history, it all became valuable. And when I saw them, they moved me and motivated me to paint them. - If you can't make it to the Big Apple, you can tour the exhibition virtually by visiting gogosian.com or by using a VR headset. Ted Lindner, Fox News. (upbeat music) (upbeat music) - If you're in Israel, thanks for watching Fox on Partner. For the latest headlines, check out foxbusiness.com and foxnews.com. - When news breaks. - And we begin with this Fox News alert. - America turns to Fox News Channel. - We are feeling the impact all across the country. - Stream it now on the Fox News International app. It's the place for top political coverage. - It's a very big day here at the White House. With must see inside and analysis, you won't get anywhere else. - We will never be the media mob. - And stay on top of the US markets with Fox Business. Watch your favorite shows live or get them on demand. Download the Fox News International app now from the Apple or Google Play stores. Also available on Amazon Fire. (upbeat music) - So anyway, taxing unrealized capital gains is a terrible idea and actually one another truth. - Hi everybody, it's Brian Kilmeade. I want you to join me weekdays at nine AM East as we break down the biggest stories of the day with some of the biggest news makers and of course, what do you think? - Listen live or get the podcast now at briankilmeadeshow.com.
