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Former Federal Reserve Insider Danielle DiMartino Booth Predicts Another Crash Is Coming

What does the average American need to know about the next economic crash? Will it be worse than 2008? 1987? 1929? Danielle DiMartino Booth, former insider at the Federal Resserve and author of the book Fed Up: An Insider's Take on Why the Federal Reserve is Bad for America, joined Glenn in studio to explain what's coming and why it frightens her.

Enjoy the complimentary clip or read the transcript for details.

GLENN: Hello, America. Welcome to the Glenn Beck Program. Today, an unconventional kind of program, one that you really need to listen to and digest as we have the President of the United States saying "Yes, it is possible we could have a major, major conflict with North Korea." And who doesn't feel good about Donald Trump making that decision? We also have to worry about our economy. Danielle DiMartino Booth has written a book that is a must-read called "Fed Up." The insider take on why the Federal Reserve is bad for America. What is coming? What is your retirement look like? What does America look like when the lie is finally revealed? Somebody from the inside who predicted the 2008 crash is here to tell us what's coming next. Danielle DiMartino Booth joins us right now.

Daniel, welcome to the program.

DANIELLE: Happy to be here.

GLENN: I had you last week on television, and you took the breath away from the audience that was in for the show, and you are somebody that I wish I would have known in 2006 as I searched the world for anyone who was brave enough to say the emperor has no clothes. And now you're doing it again, except this time you really have a ton of credibility because you've already predicted the last one. And you became really very important to the Dallas fed, and you were on the inside doing all of the research and really trying to warn everyone inside. This thing is -- the emperor has no clothes part two.

I want to start -- before we get to your dire warning and some of the amazing stories of what it was like behind the scenes with tarp and everything else, I want to start with you looking up at the stars in Maine saying "I'm an accomplice. I'm complicit in this. I've got to get out and warn people.

DANIELLE: Except I had just signed on for four more years at the time. Richard Fisher was certainly considered to be a maverick, and it had become exceedingly difficult to do my job. The Ph.D.s, the academics, and the research department were increasingly saying "Somebody's got to put a muzzle on this woman. She's saying things that are going to embarrass us in Washington, D.C. of the most elite of the elite. So what Fisher did was recognize what was going on. He wanted to maintain this one voice of objectivity, if you will. So he jettisoned me from the research department and gave me autonomy in exchange for staying through his last year at the fed. He said"I'll give you freedom, you give me four more years."

And I said, "Fine. Deal."

GLENN: So why did you do that? What did that feel like? You knew at least after you signed it you started to reflect and go "I am part of this."

DANIELLE: Well, I was part of the bacterial.

GLENN: If it's not me, who will?

DANIELLE: The fight kept going until the day I walked out the door.

GLENN: Right.

DANIELLE: At which point they were, like, don't let it hit you on the way out. Bye-bye.

GLENN: You were feeling -- because we hear this from people all the time in Washington. If it's not me, who's going to fight? Somebody has to be the dissenting voice.

DANIELLE: And, you know, there were people who came on in Washington, and they ended up leaving after their minimum of two years. Because -- even people from academia, Jeremy Steyn was on the board for two years. And he took an out because he said I better get going now because Harvard is giving up on me. The door is always going to be open at Harvard. But he did his minimum of two years, and he left because he tried to push back and failed. So Fisher was not alone, there were others who tried to speak up, but the majority was so overwhelming that it was just impossible to make your way and be heard.

GLENN: Would you say -- would you agree that the biggest highest, the biggest theft in all of human history is being perpetrated right now by the fed?

DANIELLE: The fed, the bank of Japan, the European central bank, the bank of England, it helps to understand that even though the Federal Reserve stopped its quantify easing campaign, so to speak. Stopped expanding the size of its balance sheet by buying U.S. treasuries, by buying mortgages. That's been over two years now.

But there are other central banks -- we've just come through a record period, a record period of buying throughout the world and investors know generally speaking that their back is covered. Their losses will be contained. It's the assumption they work under. I said investors. I didn't say Main Street.

GLENN: So let's start here with a warning of what is to come. And then I want to go backwards. Okay? I want to take you back to when you first saw this housing bubble is going to break and nobody would listen and take you also back -- because you started on Wall Street, and you found that to be a circumstance and wanted to expose that.

DANIELLE: Yes, I have worked in multiple sausage factories, thank you. Yes, I have.

GLENN: Let me first take you to the warning to the average American of what you believe is coming.

DANIELLE: So if you turn on any business news network, you're going to hear all kinds of comforting commercials. We're going to take a commercial break now. And inevitably, you're on a beach and life is looking good and the dog is running alongside you, and they'll say X, Y, Z firm, you know? Retirement. It's yours for the taking.

GLENN: Uh-huh.

DANIELLE: And what are they selling, exactly? They're selling the beauty of diversification. As long as you spread your risk throughout your bonds and your equities, and your real estate, you're going to retire just fine.

GLENN: That's not what happens when central banks are manipulating prices, which they are. The price of interest, the most important price out there. When that inevitably ends poorly, which it has several times since Alan Greenspan took office in 1987. What investors find out and baby boomers have found out not once but twice, there's nowhere to hide. Everything in your 401(k), everything in your IRA, they all behave the same, and that is badly.

GLENN: And you're talking about a crash much different than 2008.

DANIELLE: The problem today as I see it is that in 2007, 2008, by then, the bogeyman had been identified and housing rolled over. You know, a good friend of mine is Arthur Cash, and he's been on the floor of the New York stock exchange for over 50 years, so he's seen a few things in his time. And he said recently this feels a lot more like 1987 to him, and it feels a lot more like -- he wasn't around in 1929, but had he been from what he heard when he was a young man on the floor of the exchange, it's that kind of -- it's the meltups that we see in the market. It's the days when we have back-to-back and the DOW Jones industrials puts on 500 points. And on that same day, the Wall Street Journal will be out with a story that says "You know, we're going to have to start valuing stocks differently because it's different this time."

And the hair on the back of your neck just stands up, and you're, like, whoa. Don't use those words. Don't say it's different this time. That doesn't work well. But it's the sensation that everybody's got to get in. These are the times that really frighten me.

EXCLUSIVE: Chip Roy Explains His FIERY Rejection of Spending Bill
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EXCLUSIVE: Chip Roy Explains His FIERY Rejection of Spending Bill

According to the media, there’s a big fight going on between Republicans over the House’s new slimmed-down continuing resolution spending bill. Some, including President-elect Donald Trump, wanted the bill to pass. But others, like Texas Representative Chip Roy, argued that it still wasn’t ready. However, is the Republican “unity coalition” really crumbling, like the media claims? Rep. Chip Roy joins Glenn to explain what’s really going on. He argues that he IS trying to give Trump and DOGE a 100-day “runway” to fix the country. But he makes the case that, by increasing the debt ceiling by $5 trillion without agreeing on other cuts, this bill gives bad actors the ability to be an “obstacle” to Trump’s agenda further down the line. Plus, he reveals to Glenn that he believes some of these bad actors LEAKED false information about his stance to Mar-a-Lago.

Transcript

Below is a rush transcript that may contain errors

GLENN:

I think we have a great opportunity today. To show you how to have a -- tough conversation, with friends, friends. Where you deeply disagree on something.

But you know that their intent is good. They know my intent is good. Or our intent is good.

And we actually have the same end goal, but we disagree on the path. And we're going to walk away friends.

Chip Roy is joining us today. And, Chip, I love you. And I always will. And I agree with your, we've got to cut spending. We have to. But Liz Wheeler is with me. And we've been talking about it all morning. It's the -- the -- the -- the system of DOGE and Trump, the call-out to the world, in saying, you've got to surrender the Capitol. You know, the bad guys are in and about to take all the money.

Surround, and tell them, come out with your hands up. And that happened. And we scored a massive win, in an entirely new way.

Ask then you stood on principle, one we both agree with.

And it failed!

And so here's -- here's what Liz and I were talking about. Here's what we want to say to you.

And then get your response.

LIZ: Hi, Congressman Roy, this is the way I see it. I want your take on it. I love you. I think you're one of the best members of Congress. I disagree with you on the process that's happening. And I think that is the difference. The process. We elected Donald Trump to be a disruptor. Because Republican members of Congress for decades have been telling they're fiscal conservatives. They want to decrease the debt SEAL. It hasn't happened.

It hasn't -- it hasn't been done. And so Donald Trump comes in with Elon Musk, and uses this DOGE process to first identify these pieces of garbage in the first 1500-page bill. And take those things to the people. We took them to members of Congress. Congress said, okay. We'll listen to you.

So that new process was very effective.

And my question to you is: Once that process was proved to be effective. Which I think is exciting and wonderful.

How do we bridge this divide, with you, to say, okay.

Let's put some faith in this new process. And trust Elon Musk and Donald Trump and the Dow Jones process, to eventually address the debt ceiling, but get this done right now?

GLENN: And not blind trust. Chip.

CHIP: So appreciate you guys. Appreciate being on the show. Particular order. I have to go through a couple of things.

GLENN: Yep.

CHIP: Number one, it's important to remember that my job and my duty is to the Constitution, to God, and the people I represent. I told them, when I came to Washington, I would not -- I would not let the credit card and the debt ceiling and the borrowing of the United States without the spending restraints necessary to offset it.

GLENN: Okay.

CHIP: Right now, all we have are promises and ideas and notions. What I know, that neither of you respectfully no, and that none of your listeners respectfully no are the people that are in the room, that I was in with yesterday. And the day before, who are recalcitrant.

And do not want to do the spending cuts that we need to do.

That I believe the president and the DOGE guys. And everybody want to do.

My job, is to force that through the meat grinder. To demand that we do our damn job. Okay?

GLENN: Okay. So hang on. Okay. So wait. Wait. You're right. You're right. You're right. Go ahead.

CHIP: Number thee, when we were going through the bill, I'm glad the bill dropped from 1,550 pages to 116 pages. Three-quarters of Twitter or X or whatever you want to call it, have been out there spreading false facts that we supported a bad bill and didn't like the better bill.

That's not true. But let's be Lear. The 1400 pages that were cut out. It's a panacea.

There were some good stuff in there. There were some bad stuff in there. There was a lot of disinformation.

There wasn't a $70,000 pay raise. There was a 3,000-dollar pay raise.

I didn't support any pay raise. I didn't support a lot of the stuff in there.

But there's a lot of misinformation. And here's the thing: The 116 pages that were left, and I opposed violently the first bill. I was leading the charge on fighting and killing the first bill.

GLENN: And I love you.

LIZ: The second bill for 116 pages. Turned off -- turned off the pay go requirement. That we slash 1.7 trillion automatically.

And added a 5 trillion that are increase.

My view was, I could not support that, without a clear understanding of what cuts we would get, in mandatory spending next year. And undo any of the Inflation Reduction Act.

The undoing of the student loans. The undoing of the crap with the food stamps.

And everything else. I yield back.

GLENN: Okay. I yield back.

Chip, you're not in a hostile room. We love you. And we agree with your end goals. It's our end goal too. We didn't make that promise that you made to the people that voted for you. So we have more wiggle room here.

But you say -- I think our big difference is, you say, I know the guys in the room.

You're right. You do. And we -- we ceded that earlier today on the show.

You are -- one of us is wrong on trust.

I don't trust any of the weasels in Washington.

But I think Donald Trump and Elon Musk and Vivek Ramaswamy have earned enough trust, to get a grace period, here for the first -- maybe the first year.

Or at least six months.

To turn the economy around, and also reduce the size of the government.

And totally flip this thing.

And I know, as somebody who is -- you know, run a company, mainly into a ground. But run a company, and have to switch it, in the middle, and totally reshuffle. That -- that actually costs money, while you're doing it, to bridge the gap.

Because you have to fill up holes while you're filling in the gap.

You don't trust the people in the room. Neither do we.

But we do trust the system that worked on Wednesday with DOGE and Donald Trump.

Where do we disagree?

Can you give them --

CHIP: We don't disagree. And yesterday morning, I was making that precise argument in a room full of conservatives and then a follow-up room with people who will call it, less conservatives.

GLENN: Republican. Yes.

CHIP: And so we were making this argument. And then someone infamously. Something leaked out of the room, somehow out to Mar-a-Lago. That I was being resistant. Because I was negotiating trying to get the agreement to achieve the objective that you just said. I was trying to get, okay. In fact, yesterday morning, I made the argument to a group of conservatives. We need to give the president runway. We need to give him his first 100 days. We need to appreciate JD, and Vivek, and all the people -- and everybody involved. For the president to achieve the objective.

But to get there. We have to make sure that the guys in the room, that are an obstacle to that, don't have the ability to block it.

Because information flow matters. And when those guys tell the president, they can't achieve X.

Then the president will not achieve X. Our job was to force and demand, guys, we need actual understanding of what the cuts will be.

And because otherwise, we're asking us to accept a 5 trillion-dollar limit in our credit card increase. In exchange for nothing!

Literally, in exchange for nothing, but -- but hope.

So our job was to force that change.

Unfortunately, while I was trying to make the argument that we needed something in order to get the votes, someone leaked that down to Mar-a-Lago, and the president reacted.

But now I have to now manage that.

GLENN: Right. I know. I know.

CHIP: They're trying to enforce change in town.

GLENN: So hang on.

We have to leave this. Because I'm going to run against the clock.

I could talk to you all day about this. You were in a meeting this morning about J.D. Vance. Can you tell us anything about that meeting?

CHIP: That meeting happened, because despite what happened yesterday, I'm trying to get this done. Last night, talking to JD, we worked to get this meeting done. We had some good progress this morning.

But there still remains people concerned about spending. That we can work out, what agreement we can reach. On what spending cuts. We can actually get next year, in exchange for giving the vote on a debt ceiling increase.

So it remains fluid. Progress was made. But we have to keep working on it.

And I left that meeting to talk to you. Soil get an update in a minute.

GLENN: Thank you for that, by the way.

I hear there is a new bill that may be coming today.

Is that the one you're talking about?

Or is this another bill that could be another nightmare?

CHIP: Despite other people leaking crap, I refused. I can't say, because it's not been decided by the speaker.

And it's not right to talk about things they're talking about in private meetings.

GLENN: Yeah, but it's -- it's this speaker. I mean, is he really the speaker anymore, Chip, really?

CHIP: We need to hear what bill we need to get forward. And I can't talk about the private meetings. But, look, I'm going to keep fighting for what I promised people that I represent.

I'm going to fight to cut spending. I am going to represent article one.

I'm going to support the president's agenda, but we've got to do that together.

GLENN: Okay.

Chip, thank you.

I think we can -- I think we agree, but I await to see what that means to you. Because we may just have to agree to disagree on this.

But I love you. And I still want you to replace Cornyn.

CHIP: The short version is, for inflation's sake, we cannot increase the debt ceiling $5 trillion without knowing what we're getting for it.

And I don't think anybody should disagree with that.

GLENN: But you don't disagree that Elon Musk and Trump and Vivek are serious about gutting the system.

CHIP: I believe that is their objective. I believe there are obstacles to that objective. And I need to know the sincerity of how we deal with those obstacles, both structural, and human. And we have to figure that out. And that's my job.