The Salcedo Storm Podcast
The Salcedo Storm Podcast
An Economic Discussion Focused On Debt Ceiling Hysteria
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TRISH REGAN is one of America’s most trusted voices on economics. She is THE EDITOR-IN-CHIEF OF TRISH-INTEL DOT COM AND THE HOST OF THE TRISH REGAN SHOW.

Transcribed by Otter.Ai

You know, the job was dangerous when you’re talking for him, I have a question for me. One might even go so far as to say, he’s mediocre. I guess I should salute you with a worthy adversary and all that. But the truth is, I really did. He had guts, he still struggles for podcasts. My friends, only stupid people say that all this debt we’re accumulating makes no difference. I think Dick Cheney said that the debt was was meaningless. No, sorry. It is. It is very much consequential and it will very much hurt us. As you all know, the debt ceiling deal will continue to facilitate more unrepeatable debt piled on to future generations. And there’s a consequences of price that’s going to be paid for all of this couple of articles that I was just from different sources. I just wanted to give you a flavor of what those consequences are the first one, the Hoover Institution, the US debt causes and consequences. Well, let me cut through the BS and tell you what the cause is. Irresponsible, feckless, childlike government debt held by the public refers to the money the federal government has borrowed from the public debt it has yet to pay back. It is often referred to as net debt. An alternative measure of the federal debt is the gross debt. It includes net debt plus money owed to the federal trust fund. That’s Social Security, Medicare, Hospital Insurance Trust Fund and other inter governmental debt. You can read more about the differences they say, between net and gross debt, and they provide a link. In 2018, the federal government ran a deficit of $779 billion, or about 3.8% of GDP. Debt held by the public totaled $15.7 trillion 78% of GDP going forward, deficits are expected to rise every year. By 2022, federal spending will exceed revenue by over $1 trillion, or about 4.7% of GDP. It only gets worse from here. By 2048. The government’s annual shortfall will exceed 9.6% of GDP. According to projections for the Congressional Budget Office, these massive deficits will push the net debt above 150% of GDP over the next 30 years. You can see detailed 30 year projections of the federal debt and a breakdown of future government spending and revenue on a with the America off balance budget calculator. Now, folks, I chose this article for a specific reason, as you could tell, it was it was authored before the China virus, the date is May 22 2019. The China virus started making headlines in December of that year. So all of the projected spending that you just heard, was thrown off the rails from one China caused pandemic. I mean, and the debt was already off the charts. $779 billion, we were overspending every single year, and had the China virus not cropped its ugly head courtesy of the China communist government. Well, we’d still be on course, for $1 trillion in debt, because your government doesn’t know how to do anything else but spend money it doesn’t have. Now you may be silly enough like Joe Biden and the Republican Party to think oh, well, there’s no more No more catastrophes, no more crises headed our way. Well, that would be silly. Let me read you another article. This is from 2020. This is October 1, just before the presidential election, the title of this piece five consequences of US debt at $50 trillion. By the way, folks, that’s where it’s projected to be in the next 10 years $52 trillion in debt. If we stay on this course that Kevin McCarthy just charted for us with Joe Biden. Raising taxes will not solve the problem writes Forbes $50 trillion headed our way, it could help reduce the deficit some, but it would be more of a token, that is just the reality and they put a tax table up here. If we double taxes on the top 25%, double taxes, it would only bring in another $1.3 trillion, assuming people didn’t change their behavior. Now what I mean by that, meaning, if you’re getting taxed, you know, double in that tax bracket, well, what are you gonna do, you’re gonna stop making so much money, productivity will crater, and voila, you’re you’re looking at a full blown depression. Parenthetically, a 75% marginal rate plus 4%. Medicare for a 79% top rate, certainly will change behavior. That’s what they mean. That’s that’s your marginal tax rate would be 75%. Right? For the top 25% of folks, a less shocking 20% to 25% increase would only bring in about 3 billion to 400 billion, and would have to raise rates on incomes above 83,000. That’s not exactly the rich, they already think they pay their fair share. If we raise taxes next year, in the teeth of a recession, it will only make the recession worse, if we raise taxes, but then they actually, but they don’t actually take effect until 2023 and then get phased in, that would probably avoid creating a double dip recession. Debt is future income brought forward. There is a point at which debt becomes a drag on the US economic growth, and we’ve likely reached it. What they’re what they’re trying to say is, folks is that we have so much debt, it keeps us from achieving full productivity in this country. And it’s only going to get worse, because we have feckless, irresponsible politicians who refuse to live within their means we discuss the debt ceiling, what it is and what it really isn’t, and the problems we are facing in this country. Trish Regan comes your way next on the Salcedo storm podcast. And now a word from our sponsor. Are you sick of all these Medicare commercials? Well, what if you’re under 65 and need quality affordable health coverage American medical plan specializes in under 65 health insurance plans that have zero copay at the doctor and no deductible on all outpatient services including surgeries, you pick your doctors and hospitals. There are private plans and rolling the time and they are 30 to 60% less than Obama care if you’re paying too much for your own health insurance call American medical plans. They have a customized plan managed and chosen by you not the government I liberty loving American takes on Washington, Hollywood and the whole media establishment. Ease Chris Saucedo join his fight, tune in to the Chris Saucedo show. Every weekday afternoon on Newsmax. The establishment media is out of touch with the real things real Texans care about real news for real Texans. That’s what Texas scorecard does every day, learn more and subscribe for free, Texas scorecard.com/chris. All right, let’s let’s get to it have a conversation with Trish Regan. She is of course the proprietor of Tricia intel.com and host of the Trish Regan Show. Welcome back, lady. Hey, it’s good to talk to you, Chris. Great to talk with you. Now, look, I know, you know the difference. But I think that a lot of folks in the press even in the the financial press conflate debt ceiling and default, because just because you hit the debt ceiling doesn’t necessarily mean you default, correct? Yeah, that’s correct. I mean, like, I mean, there’s a series of stages, right? And maybe the first answer is you can’t pay some your government employees. Because you can’t borrow more money, therefore, you can’t pay the employees. They always threaten the Social Security thing. It’s certainly possible, maybe you would choose to not be able to pay some of the social security payments. And then as you get down the road, then you would say, Okay, well, how do we prioritize our bondholders and so there might be some bondholders that might be temporarily left in the lurch. I do believe that eventually, they’ll come back and get paid. But, you know, it’s promising that we’re even in this position. I mean, the reason we’re in this is because you get a bunch of people that are in Washington that don’t know how to negotiate, namely, Joe Biden, don’t forget, he started this entire process by digging in his heels and saying, hey, you know what, I want to clean that feeling cleaned up feeling only which meant he did not want to cut one penny from any of the discretionary items. He wasn’t willing to even entertain any discussions surrounding let’s get this budget, somewhat more organized and less bloated. He wasn’t willing to do that. And so I think that starting from there, they did very good say you’re going to sell your house right? Ah, yeah. And someone comes along and says, Hey, you know, I’ll offer you and see the offer yet 3% less, and you’re like, nope, nope, I am only selling it for this. It was that kind of attitude and unwillingness to even engage. And I’ve seen it, by the way in the housing market myself, when I’ve made a bid for something that was pretty close to offer, and the seller goes, nope, I don’t want to entertain any negotiation, only for them to six months down the road, sell it for a fraction, maybe of what I originally offered. This is what you call poor negotiating style. And because he’s had an entire career in politics, as opposed to business where you get to get things done. This is what we’re left with. Exactly, exactly. You know what he also fails to recognize the role of the House of Representatives, according to our Constitution, all spending originates there. So they have a say in this. And for Joe Biden and for Chuck Schumer to say, Oh, well, you know what the house is immaterial doesn’t matter, because Republicans run it. That’s just not the way it works, according to the constitution. So not only is Joe Biden, a failed negotiator because he’s never signed the the front of a paycheck. He’s also a failed American because he doesn’t understand the Constitution. Let me ask you about, get your reaction to Congresswoman. Jaya Paul and Alexandria Ocasio Cortez, they are warning Joe Biden, if if he accepts, and this is we’re not even talking about cuts. We’re just talking about reducing the rate of increase of spending of the government when there is no cut that’s on the table right now. From from congressional Republicans. I wish there were, but there aren’t. So listen to these two, and I want to get your reaction. This is Jaya Paul and AOC. I think there would be a huge backlash from our entire House Democratic Caucus, certainly the progressives, but also in the streets, you know, I mean, I think that this is, it’s important that we don’t take steps back from the very strong agenda that the President himself shepherded and led over the last two years. But if the President agrees to spending caps, or if he agrees to work requirements on certain social security, to be a problem, we do not legislate through the debt ceiling for this very reason. So basically, there you heard Jaya Paul saying, yeah, it’s going to be a problem. If you cut government spending. It’s going to be a problem, quote in the streets. That’s a threat. Yeah. Okay. Well, I mean, that that’s disgusting, frankly. I mean, the the threats of violence, the threats, we’ve been through it already. I don’t know if you saw the news today, Black Lives Matter is on the verge of bankruptcy yet still paying some of the family members millions of dollars. Listen, I don’t I don’t appreciate that. I don’t like that. I don’t think anybody does. The reality is this. You think about as a family. Right, Chris? You know, if you if you make more money this year than you did last year, does that mean that you should spend more money? No kids, you gotta keep up with your overall GDP of your family? Absolutely not? No, it means you should save more money, right? Like if you’re if you’re fortunate enough to grow your paycheck. The idea is you put that money in the bank, you pay off your debt, you invest somehow in the future, you do not. You do not say okay, well, we’re gonna we’re gonna expand, you know, our movie allowance for our 17 year old kid like that’s, that’s not what you do as a family. If you’re thinking prudently, articulately about your future. And yet these not so articulate, not so thoughtful, not economically astute individuals. They’re in Washington, like Alexandria, Ocasio Cortez are out there saying, Well, okay, well, if we make more money, we get to spend more money. And this is, this is something that actually has just been embedded in Democrats thought, I don’t know if I told you this story, or if your viewers have heard this before. I remember years ago, when I was a Bloomberg Television, Barack Obama was running for president again, I was leading actually all the political coverage. And I was in a discussion maybe at one of the DNC events, with none other than none other than Gene Sperling, who was head of the Economic Council for President Obama’s time. And he was livid because I said, I don’t understand. Here’s the deal. Why do you need to spend more and he’s going on and on? Well, it needs to keep up with GDP if we’re growing the economy, and obviously, effectively calling me stupid Hey, stupid, you got to spend more money and I’m like, no, no, no, no, you’re growing more money like and again, I use the family example, if you’re fortunate enough to be able to grow your household income. Don’t you want to pay off the debt? Exactly. Instead of like running it up to 34 point 31 point 4 trillion where we are now, but they don’t anyway, actually very interesting. You went all the way up to the food chain off through management all the way to Mike Bloomberg. And I had to sit there and argue with all my managers and say, Listen to me, this is wrong what he’s saying and they’re like, but it’s right, right. And I’m like, Okay, we have a real difference in philosophy. I’m dying. And this is what they believe. Okay, so this is what Joe Biden Alexandria Ocasio Cortez believes, and that is not good for our country. I know what it’s done to our fundamental. I know, Reg Reagan said that you are silly, you are you are vacuous to believe that that the federal government is not constrained by the same economic laws that you as families are constrained by you aren’t, you’re insane. You can live beyond your means, but only for a short period of time, sooner or later, you got to pay the piper. And that’s what Reagan said. Now, let me let me ask you about some of the numbers here, because you mentioned that, and you and I agree that just because you hit the debt ceiling doesn’t mean you have to default. Already in 2023, the federal government is taking in $2.6 trillion. Now, I would say I would rationalize that you could, you could pay your obligations, you may not be able to have, you know, the Corvette and all of your massive non constitutional government spending, the Democrats and the Republicans have agreed to, but you can handle your obligations with $2.6 trillion. Now, there’s a caveat to that. We are fast approaching because of rising interest rates. And because of the ballooning principal on the debt. We’re fast approaching $1 trillion in interest payments alone on the debt, 1 trillion with a tea. So Americans are paying record amounts between four to 4.5 to $5 trillion in taxes every single year, yet the Congress over spends, doesn’t that have to stop? Yes, it has to stop. I mean, where is the Tea Party, right when we need them? I think people need to care about this stuff. Because if they don’t care enough, well, you’re going to wake up one day, and somebody else is going to be the world’s reserve currency. And now some people may say, Well, who cares? Who needs it? Well, trust me, we do need it. Because we are basically a banana Republicans. No, anyways, don’t even get me started. And the difference between us and those banana republics is that we are the world’s reserve currency. So ultimately, everybody still wants to be invested in the US. And that gives us a ton of cover, we need to preserve that we need to keep that you know, Chris, we need to respect that. Okay, I’m sorry. But we have to have some respect for our history, and for our triple A credit rating and the desire to preserve that otherwise, we’re gonna lose a lot of privileges that we probably take for granted. Clearly, these people in Washington that thinks that they can flirt with this disaster, take it for granted, as far as the default. No, you’re absolutely right. Like we don’t, that doesn’t need to be the first stop. But you see, they do this because they want to scare people just, I mean, think about fear, fear mongering. And Neil Gorsuch said, it’s so well in his statement this week, about how fear just consumed people, and all of a sudden, because of fear, people were willing to listen to one person and one person only was, you know, was Anthony Fauci. And instead of having an economist at the table, a mental health expert at the table, an educational expert at the table, all people did was listen to Fauci and he became a dictatorship onto himself. And it was all through fear. So they know this works of Janet Yellen goes out on CNBC often enough and says, Oh, gosh, you know, like it, we’re going to default tomorrow. If we don’t fix this, it creates a tremendous amount of fear. And what I would just say is, hey, listen, buddy, you’re right. And you want to go down in history as the first President United States to default on our debt, you go for it, you go for it. There’s no way they’re going to let that happen. You understand that? calm everybody down? I don’t know, like I tried to do during March 2020. I know that they may do stupid stuff. But it’s not going to be as bad as you think. Well, you look at Joe Biden. And and when you say, well, they’re not going to do stupid things. I said, Well, I don’t have high costs. Let me tell you, I mean, listen, I mean, he will go down as as having destroyed the country, even more than he’s already known for that if he defaults on debt. It’s over. Like it’s over, Chris. I know. So I know. He’s threatening this stuff. Because he doesn’t understand it. The guy really doesn’t know one plus one is two, and he can’t do any math and really do not think he is a bright man at all. Well, no, that’s not a mechanism. I just want to point this out. You’re not being ageist, Joe Biden has always been the village idiot. He’s always been an idiot. And that’s, that’s why I resent the Democrats so much for imposing this man inflicting this man upon the country. Last thing Trish I wanted to get you to by the way, Trish Regan is our guest Trish intel.com host to the Trish Regan show. Look, I want you to put your media hat on and I’m gonna I don’t want you to comment on the stories necessary. rarely, but I want you to, to give the folks because you’ve been around media a long time, Bloomberg, Fox and Fox Business. I just want you to give me your analysis because there have been a series of what many are classifying. You’ve seen Eric Bolling, you’ve seen Megyn. Kelly, you’ve seen Dan bond, Gino, they’re out there talking mostly on Newsmax, about what Fox has been up to. And the latest story to come out of Fox and this was coming out of the Daily Signal is that Fox is pushing the trans idiocy, the non scientific trans idiocy that if you’re at Fox, and you want you’re a man who identifies as a woman, you get to use the ladies bathroom. And many people are shocked to find that that this is policy inside of Fox News. And they also dedicate resources to folks who are who are either male that want to be female or female that want to be male and all that kind of stuff. But that insane. Yeah, that will Tucker and that was lunch. And all all of this stuff. How do you see the machinations around the media landscape and the shifting alliances and and the shifting audiences? I think that Fox is kind of seen as last year. I’m not kidding on that. I’ve spent a lot of time thinking about this and looking at it and looking at the numbers. ratings have just been decimated down to what 1.3 million that they’re getting after having been at 3.2 million with with Tucker Carlson. They were overdue for with Bill O’Reilly. I think that at this point, the fox viewer feels way too burned. And when you think of the people that were unceremoniously shown the door, whether it was Tucker, whether it was me whether it was Dan bond, Gino, I don’t know the case with Megyn Kelly. But what I would say is that the audience feels like wait a second, you know, they used to feel like a family, they really trusted all of the anchors that were on there. And I think that the anchors frankly trusted the organization to have their back. And we all soon found out that that was not indeed the case at all. A lot of it has to do with management. I think that management is having a really hard time sort of corralling everybody, if they were able to kind of keep everybody sort of on a steady path, they wouldn’t have been dealing with the Dominion lawsuits, the tune of $800 million. So as an investor, I’d be very concerned about this company, for sure. Right now. I think the medium is dying out. I think there’s tremendous competition, certainly from Newsmax. And you may see OAE n and you may see some others start to emerge, again chipping away at their audience that they once had a monopoly on those monopolies. We have seen with Budweiser, right with Bud Light and Anheuser Busch, they disappear overnight. And so without a strong leader at the helm, to kind of see them through this, and help really keep the viewer while simultaneously leading viewers right. Like, you know, they got into a situation where I think that they were so desperate to appease the viewers. We’ve seen that there’s text messages where anchor thought one thing and then did another that comes down to lousy leadership. Where was Suzanne Scott helping to steady the boat, and if she can’t do it, and I have my real doubts is given what we’ve seen over the last couple of years. And what are the Murdochs going to do? Who do they put in that place? I don’t think it’s Lachlan. So I do believe it. You know, if I were if I were investing, I’m not invested in Fox. But if I were investing in the company, I take a real pause here and say until they can figure out how to manage the joint. There are too many headwinds against it. Poor management combined with a very weak talent bench, combined with the industry fundamentals really changing and turning against them. And people are seeking out other sources of news Dan Bundeena is a great example. Tucker Carlson is gonna go do his show on Tucker. We’ve been exploding on YouTube my YouTube channel I know crazy Chris, we’ve grown like 25,000 subs in the last three or four weeks our presence on our our presence on Ghana on Rumble is also going crazy. The Chris Salcedo radio show just on rumble. We’re not even doing television on rumble. And people are people are hungry. And I think I think you put it best people have trusted brands and those brands are entrusted with putting their their audiences first and I think from Bud Light to Miller Lite to Fox, they betrayed that trust much. And I’m sorry, I just see a lot of parallels to politics. Because you put Paul Ryan on that board, you know, a guy who did so much damage to the Republican brand. And you put him in you put them on a fox board. And he does the same thing to the focus treatment. Yeah, but you see what’s going on. They’re all trying to appease the bigger conversation you and I should maybe share for our pockets but it’s the ESG stuff. Environmental social daily wellness CEI podcast. Was Was Was that an invite or are you inviting me to you? I’d love to have you here. I am, so I am honored. Right that’s what’s going on and it is ruining American capitalism. It is ruining everyone’s retirement and it’s ruining these company, folks. Did you notice what I just did? I just invited myself on a Trish Reagan’s podcast as, by the way wildly popular podcast, Trish Regan, everybody one of America’s most trusted voices in economics. And she knows her way around the business world and the media World Editor in Chief, Tricia intel.com, and the host of the Trish Regan show. Always a pleasure. Always a pleasure. Okay, well do the podcast promise. Alright, see you later. I am so shameless sometimes. I know. All right, folks, that’s gonna do it for this edition of The Salcedo storm podcast. Do me a favor and visit a couple of websites. First off, visit Texas scorecard.com, Texas scorecard.com. That’s where you find enterprising journalism. That’s where you will see individuals who actually care about the issues that impact us, whether it be the schools, the economy, whether it be the borders, that’s where the great reporting is happening. Also, check out Chris saucedo.com That’s where you find me the Chris Salcedo shows on AM 700k SCV, the voice of Texas simulcast with TNT radio worldwide. Also check out the Chris Saucedo show on Newsmax TV four o’clock Eastern until five Monday through Friday. Until we visit again my friends remember this. A society’s worth is not measured by how much power is stolen by an out of control government whether it be in the federal or state level. It’s worth is measured by how much power is reserved for you and me. We the People, stay safe out there my friends

Transcribed by https://otter.ai

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