RADIOApril 21, 2022

Economist BREAKS DOWN the Fed’s ‘BOGUS’ plan for inflation

Steve Forbes, Economist & Editor-in-Chief of Forbes Media, joins Glenn to break down several economic concepts that may be hard to grasp: What IS inflation, is it calculated correctly, and how did it get SO bad today? Plus, Forbes describes the 'gimmicks' used by today's Federal Reserve that are furthering America's current economic crisis: '[The Fed] wants a slowdown, and they just hope they can avoid a recession. It's bogus thinking.'

Transcript

Below is a rush transcript that may contain errors

GLENN: Welcome, Steve Forbes. How are you, sir?

STEVE: Good to be with you, thank you.

GLENN: So I'm really interested in hearing your take on what we are headed for with inflation. So let's --

STEVE: What --

GLENN: Let's start here. Explain what inflation is. You know, some people. You are so used to hearing, we're going to have 2 percent inflation. Oh, that's good. No, it's not. Is it, Steve?

STEVE: No. Just as you don't say, reduce the size of a gallon of gasoline, and that's good for you. No, it isn't. Keep it the same. So inflation. That's why we did this reader friendly book. No jargon. Straightforward.

There are really two kinds of inflation. One is a nonmoney kind. Nonmonetary kind. One you say, you have bad weather. Commodity prices go up. Wheat prices go up. Or you get the kind of shutdowns we have the pandemic, which disrupts the supply chain all over the world. We're still suffering from that. That sends prices up.

And then you have the money kind, where the government reduces the value, in this case, of the dollar by creating too many of them. And we know the government has been spending on a spree. How has that been financed, a large part of it has been the Federal Reserve. Buys those bonds. How does it get the money to buy those bonds? It creates it out of the thin air. The ultimate ATF. Now, unfortunately, Glenn, on the nonmonetary inflation, normally, if you just leave the economy alone, those things will heal themselves. We did it after World War II. And we converted from a wartime economy, to a peacetime economy. Disruption. But we did it. But unfortunately, the Biden administration is putting obstacles in the way. Starting with the role on fossil fuels. A lot of other the crazier things they've done. Seventy-seven executive orders. $200 billion of new regulations. So they're making the problem worse, instead of letting the economy heal. And the Federal Reserve, they've been printing a lot of money. They've been producing gimmicks to try to keep that money from flooding the economy. But that's going to run out. So if they don't get their act together, we're in from a rough time. Let me conclude on this. Unfortunately, this is where we have a real danger now. The fed believes, the way you cure inflation, is not by stopping the printing press. And making the dollar whole again. Making it stable again. They believe you do it by slowing the economy down. Throwing people out of work. And that's what they're up to now.

GLENN: So, Steve, first of all, the -- the idea of inflation, we say it's now at 8.5. That's just because we measure it differently.

If you look at shadow stats that measure it the way we did under Reagan. It's at 17.1. Is that fair to do, or not?

STEVE: Well, this gets to the whole thing of, how do you measure prices? The whole labor department. It has a whole bureau devoted to it. What do you put in the index. One of the crazy things is when people's buying patterns change. Let's say you have meat prices, which they have. So instead of having steak. You might go for cheap hamburger. Well, they don't account that as inflation. They just say, the patterns have changed stop, yes, you can manipulate these things six ways to Sunday. But the bottom line is price are his going up. The cost of living is going up. Part of it is the pandemic, and the Biden administration making things worse. We can cure that, hopefully with a new Congress.

But the Federal Reserve, they have to get over this notion, that when we do work, when we're trying to be prosperous, they got to slow us down. That's really bad stuff.

GLENN: I don't know that anybody really understands the fed balance sheet, and what they've done, and the money that they have loaned out. Trillions of dollars, that they have bailed banks out all around the world.

If you can't -- you know, theory trying to sell off the stuff, they have on their balance sheet. But every time they try that. And/or raise interest rates, the economy stops. And so not sure they're going to be able to do either of those. How do you pull this money back in, to be destroyed?

STEVE: Well, what -- what you do. First of all, which they won't do this part. Is you leave interest rates alone. Let the market set interest rates. Controlling interest rates is like rent control, which as we know, hurts new construction. This is trying to control the price of money.

Affect the price you pay for renting the money, so to speak. So they should just leave that alone, and let the market sort it out very quickly. On your point about what the balance sheet, when you say balance sheet, people's eyes start to glaze. Just think the fed is sitting on a pile of bonds. And too many of them. And so what they should be doing is letting those bonds mature. Not buying new bonds. Let the money supply go down. And if they do that in a responsible way, we'll avoid a huge slow down.

But let me give you something. A gimmick that they've been employing the past year. When they were creating $120 billion a month. Pulling money out of thin air. Let's walk your listeners through on this.

When the Federal Reserve creates money, they call up a dealer, a bond dealer like Goldman Sachs. And say, we want to buy a billion dollars of bonds. So Goldman says, fine. They give the fed the bonds. How does the fed pay for those bonds? They credit Goldman's bank account. Where does that money come from? No place. The fed just says, voila, you have it. And that's how they create the money out of thin air. So they're doing that last year, at a rate of $120 billion a month. To help finance the government's debt. And so what they did, to try to keep it from an even worse inflation, than we've been experiencing. They then create the money. And then borrow it back from the banks, and money market funds, overnight. If you want to get technical, if people want to look at this stuff, they go to (inaudible), they'll find a thing called reverse repurchase agreements. In effect, the fed is pouring money -- pouring a bucket of water at one end of a pool, and then taking it out at the other end of the pool.

Now, that gimmick can't go on forever. You know, a year ago. A little over a year ago, they had zero of these reverse repos. Now they have $1.7 trillion. That's the game they've been playing. Huge damn of money ready to flood the economy. So we are now also by turning the -- taking the money, and saying, oh, no. You're a central bank. Your dollars are no good, to Russia. A lot of countries around the world are going. Jeez, if I get on the wrong side of America, all of a sudden, what I have as gold is no good. That's not safe for me. We are destroying the dollar at the same time we're inflating the dollar. How is this going to end, Steve?

STEVE: Well, ultimately, and this will sound very strange, and you shouldn't say it in polite company. All the -- in a few years, we're going to do again, what we did for the first 180 years of this country's existence. And that is tie the dollar to gold. What it means is that gold for a variety of reasons, keeps its intrinsic value. What it means, it's like a measuring rod. Not perfect. But it keeps the dollar stable in value. If we maintained the growth rates we did for that 180 years. Which was the greatest in human history. And then we went off the gold standard in the early '70s. And since then, the average growth rate for the United States economy, has gone down by at least one-third, from about four and a quarter percent to two and three-quarters. That doesn't sound like that much, but you do that over 50 years. Let me just give you a number.

The average -- the median household income today is about $68,000. If we had maintained our historic rates of growth, which we did for 180 years, through depressions, wars, civil wars, you name it, we would maintain that average name of growth. You know what the median income would be? $110,000.

That's what we've lost over half a century of funny money. It's bad stuff.

GLENN: Can you explain -- you just said that the fed is going to destroy jobs. Or they're -- you know -- how are they doing it?

STEVE: Yes. They have this theory, called the Phillips curve. It's not a baseball pitch. It's named after an economist who said, if you want low unemployment, you have to have higher inflation. If you want lower inflation, you have to have higher unemployment. They believed prosperity causes inflation. They don't realize devaluing the dollar causes inflation. But they can't grasp that. So as a result, you hear this talk about soft landing, what they mean is, can we slow the economy down enough, without going into a full-fledged recession? Usually, their attempts at soft landings is a crash landing. They are trying to slow the economy down. Create unemployment because they think the economy is too prosperous. That's why they think they have this inflation. So they won't say that, explicitly. But you've pressed them on it. Yes, they want a slowdown. And they just hope they can avoid a recession. It's bogus thinking. Experience disapproves it. But if the fed, the Philip's Curve is wholly writ.

GLENN: By the way, we're talking to Steve Forbes. He's got a new book out called Inflation. What it is, why it's bad, and how to fix it.

Steve, when you look at the money printing that we have done, you immediately think of Weimar Republic. I mean, idiots know that, hey. You can't keep doing this for very long. And at huge sums of money. Okay?

Everybody learned that. Weimar Republic. Zimbabwe. Et cetera, et cetera.

STEVE: Venezuela today.

GLENN: Venezuela. So do we know -- or have a guess on -- on how close we are to that?

I mean, is there a possibility we go into hyperinflation?

STEVE: You can't rule anything out with these people. But I think the answer is, no. I think even some people at the fed are realizing, they're on the -- they're in the danger zone. And so they're trying to figure out, they got themselves into this mess. And they were doing this, by the way. Undermining the value of the dollar. Before the covid crisis. This was starting in 2018. So they can't say, oh, we did it because of covid. No, they were doing it before covid. So I think they're trying to figure out now, how do we get ourselves out of it, without getting a disaster? So I think they're going to slow down the money creation. But what they should be doing now, is instead of trying to manipulate interest rates, just let their -- just let the bonds mature. And the size that they hold of those bonds, go down. Nature will take -- nature will take care of it.

Treat the -- keep the dollar stable. And then let the bonds mature. Run off.

And we'll -- we'll get through this. But the other side of the coin, is even if the fed starts to behave itself, then you have a government that is doing everything it can to slow the productive part of the economy. You know, the genius of Ronald Reagan was, when he cured the inflation. At the same time, he cut taxes, deregulation. And that's why we roared in the '80s. After those tax cuts went into effect.

GLENN: We're doing the exact opposite.

STEVE: So we'll have to wait until 2024, to get that done. But with 2022, hopefully with the November elections, at least we can put barriers in the way of the Biden administration, from putting new burdens on the economy. And also start questioning the fed. What in the world are you guys doing? Why do you think prosperity is bad for us?

GLENN: Steve, can I hold you for one minute?

I have about five more minutes, if you have time. Hang on. Sixty seconds, and we're back with Steve Forbes.

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GLENN: Steve, I know this is off the inflation path, a bit. We're talking to Steve Forbes. The book inflation. What it is. Why it's bad. And how to fix it. But I'm really concerned about these ESG programs. You know, going and switching our economy to a stakeholder. Capitalism. Which is just bullcrap. In my opinion.

And -- and -- and the way we are letting BlackRock and others come in and just buy us all up. They're buying in every seven homes, for sale. Going to BlackRock.

STEVE: Well, this -- and the nice -- the good thing about a free economy, free country, and free speech, is when these things start to happen, you can arouse the public. They won't say it publicly. But Coca-Cola, and Delta, really reversed course after they did what they did last year. When they booted the all-star game out of Atlanta. Because they didn't understand what Georgia did with the voting laws. Which are more -- more liberal than they were in New York City.

Hello. And they got burned on that. They got real pushback on that. Disney is getting pushback on it.

So the way -- the way you answer this stuff, is you push back.

And one of the things I think you're going to see happen after the November elections, is looking at ideas on how, if you're a shareholder in a fund, or a group, BPF or something, how can you have a voice on how your share of the shares, so to speak, are voting at these annual meetings? It's complicated. But I think you're going to see a real thinking on that. So it's not just a group of people. You know, decades ago, there was a great business guru called Peter Drucker. And some schools still read his book. Business schools. But he warned of what he called pension fund socialism. He noted the rise of pension funds, owned by the state. And by -- by endowment funds. And he said, they can end up buying the economy. The government doesn't have to do it. They're doing it for them.

So I think you're seeing real pushback, on that. But they get to what you might call, modern socialism. The modern socialists recognize, you don't have to take over a company or an industry. You just have to regulate it, so its survival depends on your whims. And that's what the Biden administration is doing. Practicing modern socialism. And pressuring the BlackRock and others. BlackRock and others, go along. With the pushing that kind of agenda. That has to be resisted. But modern socialism, different from our mind, you have the regulators to do it. You don't have to take them over.

GLENN: Would you -- would you say that we are now doing modern monetary theory in Washington? We have one minute.

STEVE: They're doing a form of it. Modern monetary theory. Is simply modern gash on the old idea of devaluing money, by creating too much of it. You know, in Roman times, they did it by reducing the precious metals in a coin, and putting that tin and junk in it. In modern times, we do it by printing up a lot of paper money. With now ellipses on your handhelds.

And it's the same thing. And what you see unfolding now -- we discuss this in the book, inflation is the old response of government. They scapegoat.

You know, in Roman times they blame Christians. In able times, witches. Now today, we blame company executives, with the same old movie.

GLENN: Okay. Steve Forbes. Thank you. Hold on for just a second. Steve Forbes. His new book is out today. You want to pick it up.

Inflation. What it is. Why it's bad. And how to fix it. More in just a second.

Could Trump’s “warrior dividends” CHANGE the economy?

President Trump has announced he is giving our troops “warrior dividends” of $1,776 each from the money raised by his tariffs. Glenn and Stu debate whether this is a good idea. Also…what are the odds that the Republicans will cave on Obamacare subsidies?

Transcript

Below is a rush transcript that may contain errors

GLENN: So something the president said yesterday, that I thought was really, really good. Because it will make a difference. And it's not a redistribution of wealth. He talked about his warrior dividend.

He said, every -- the 1.45 million military personnel are going to receive $1,776 before Christmas. And he says, it's recognition for their service and sacrifice.

He says, it's one time. It's coming from tariffs because of the big, beautiful bill. Tonight, I'm proud to announce, more than 1.45 million service members will receive a special we call warrior dividend. Warrior dividend in honor of our nation's founding in 1776. We're sending every soldier $1,776. The checks are already on the way.

I think this is better than choosing another group of people. You know, who is poor? And let's give them the money. I don't like when the government hands out money. But if anybody -- I mean, they're already on the payroll, and they're underpaid. And if anybody can use it, it's the military. $1,700 is a huge amount for most people in the military. Gigantic amount. That will make an actual impact in the people's lives, who I think actually deserve. You know, we -- we don't do enough for our military. And so it's the best kind of -- I don't know. Stimulus package I've ever seen. Although, this isn't a stimulus package, I don't think. Even though, these people are going to pump it into -- I can guarantee you, they will get it, and they will use it on their family for Christmas. Which, you know, will stimulate the economy so much.
Warrior Dividends. How did you feel about that, Stu?

STU: A bit conflicted for a few reason. I obviously 100 percent agree with you that our military members deserve more money, and I'm excited they're going to get it. And I have no -- my feeling on that from a general perspective is very, very positive. Like, if we're going to give money to anybody.
GLENN: Likewise.

STU: Our military is great.

GLENN: Yep.

STU: So that's obvious.

But I had a couple of concerns. One being, you know, we're not exactly at a place where we just have tons of extra money lying around to -- you know, to throw around to people.

I know the argument is with tariffs that we have enough. But, of course, that only pays for a slight amount of our deficit, right know

So we still -- this is all money that we don't actually have. Number one. And number two, my -- I don't really understand. Maybe you have a better understandings of this. But like my understanding of the mechanism of how we spent money as the government is that Congress passes a bill to allocate money.

When you're talking about a policy like this. And I think the president's heart.

GLENN: You got rid of that under Obama.

STU: I don't think.

Well, I didn't get rid of it.

GLENN: You did. Congress. I know. It's still the law of the land.

But nobody is paying attention to it anymore.

Congress doesn't even pay attention to it anymore.

They don't seem to care.

STU: And the other thing with this part of it, particularly, Glenn. Is quite obviously, there would be very little resistence to a bill that did this.

If you put a bill in front of Congress that said, we're going to give a bonus of $1,776 to all our military members. I would love to do it, just to dare the Democrats to vote against it.

Take all the concerns out about spending. This obviously would pass. Because no one would have the balls to vote against it. Outside of Rand Paul, and Thomas Massie.

Like, there would be a couple people. But it would be pretty limiteds.

GLENN: Right.

GLENN: So it could have gone through the normal processes. I don't know if Trump is saying, I want to be -- I want to dare someone to try to stop me here.

Or if it's just, look, there's a pile of money in a military budget somewhere. That he can move around. And he has control of it, because he's commander-in-chief.

I don't really understand the mechanisms.

So I have some questions of that. Generally speaking, when you're thinking of the most offensive things that the government does, giving our military more money is nowhere near the top of that list.

GLENN: It's not one. It's not it. Not it. Not it. They deserve it. They deserve it.

Now, the Republicans pass something. I love this. They just passed their health care plan.
Which is just staying with Obamacare without re-upping the insurance part of it. So they're not for the subsidies. It's not going to pass. It's not going to pass.

This is just something that they pass in the House. It will not be passed in the Senate. Not going to go to the President's desk.

Here's what's going to happen: You're going to see the House and the Senate. No. No, no. Let me rephrase that.

I started that with a lie. While you're not paying attention this Christmas, you will not see, but it will happen, anyway, the House and the Senate will re-up the insurance subsidies, and they will pass this health care thing while nobody is paying attention. And then it will be over.

I mean, that's exactly what's going to happen. There's not a chance we come back and on January 5th, and we say, oh, my gosh. Look! Wow. They're going to close down the government. Because they didn't pass this health care thing.

Well, good for the Republicans for having a spine and standing up!

No! Not going to happen. Not going to happen

STU: It does appear, the chance of the Republicans folding here, is approaching 1 trillion percent.

I don't know. We're having major inflation numbers.

GLENN: I would say 38 trillion. 38 trillion percent.

Yeah.

STU: There you go. I don't know. Because basically what has happened is enough Republicans have already folded on this, for a three-year extension of the subsidies. Which again, is a giveaway on top of the normal Obamacare to make it Obamacare turbo and lock in even higher subsidies because the old Obamacare plan failed. So that's what we're talking about here. So going back to Obamacare as passed is now the worst thing in the world to even the Democrats. Fascinating!

But they have enough Republicans who have changed sides on this. And they are now -- the Democrats have enough votes to force a vote on this bill, which almost definitely will pass the House. Because they already have the votes, and others Republicans will want to now change sides, if there's a public vote. So it will likely pass there.

It's the possible, obviously, that they stop it in the Senate. They could stop it in the Senate.

I don't know. I don't think there's much appetite to stop this, honestly, at the end of the day.

You know, you probably will have a chance of doing it, at the Senate. That's the best chance.

My guess is, what happens. Once the pressure is there, they find a way to maybe adjust it and do a year or something like that, that gets them past the election.

But, of course, what happens this a year. We all know what happens in a year. It's the same thing that will happen this year.It the same thing that happened four years ago, when the first part of this bill went away.

In 2022. Or 2021. They came in and said, okay. Let's extend it for four more years. My guess is, there will probably be some adjustments to this plan. I don't expect at all, for Republicans to hold the line this. Not only do they not want to get rid of Obamacare. They don't even want to get rid of Obamacare turbo. They passed this thing yesterday, which does give them the argument to say, hey. We did pass some of it.

We do have a plan, it's right here. But that's all of it.

GLENN: Stu. Understand the reality. Understand the reality.

We can't get things done unless we have the House and the Senate and the White House and the Supreme Court.

So we just have to wait until we have a time when -- what?

STU: Glenn, I have breaking news.
We've got all that! We've got all of that right now.
GLENN: Well, but it's not. Yeah. It's not as big as we need it, really.

STU: Oh, yeah.

GLENN: We have to have the House, the Senate, the White House, and the Supreme Court. But we have to have more than what we said, when we said those things.

We just need those -- you know, all three branches of government. We need all three branches of government, but more.

It's like we need -- we need that turbo, kind of like Obamacare turbo.

It's never quite enough to get the job done.

STU: Never is, Glenn.

I really do expect, if we have a nine-zero Supreme Court, the presidency, and 534 combined Congress men and senators, we can't do this with this guy over here. There's one Democrat in Congress. We can't do this! That's exactly what I would expect.

GLENN: Stand in the way.

STU: It's pathetic. But it reminds you that your goals are not their goals.

You know, that's what -- I keep coming back to. Forever, Glenn when we started this show. I started the show very young. I was in my early 20s. Didn't really understand lots of things. I was unfortunately running from you, which obviously turned into a catastrophe.

But, you know, as I learned here, at the beginning, my thought was, us as conservatives, as Republicans, as the right, agree on a lot of different things. And there are disagreements as to how we get there, right?

There are sometimes people think we need to kind of fold, or we need to compromise. And we have to move slowly.

And some other people there, saying, we have to go all the way right now.

And there's that disagreement. You remember this from going back in history. Right? Slavery was like this.

There were some people who were like, abolish, abolish, abolish. And others were like, gosh, I don't think we can do that. We have to finagle. We have to work around the edges.

Every big debate has had that.

What I've learned is that actually the goals are the same. When we are saying, hey, we need to make sure government is more -- is smaller, more limited. That's not the goal of most of the people. On, quote, unquote, our side in Washington.

GLENN: Nope.

STU: They don't share those goals. So they're working for something completely different.

They're not going to what we want, as -- as a typical American conservative.

We're inching towards some of those goals.

But also, when we need to give up on them. They go the opposite direction to keep these guys in office for a couple of years. Fine!

And that's what's really frustrating here.

GLENN: So let me give you some good news. And then I'll -- and I'll spoil it for you.

But some good news. The House has just passed legislation that makes performing transgender surgeries on minors a felony. Now, here's the bad news: It passed 216 to 211.

That means, really, there are 211 Democrats that actually in their heart of hearts think that cutting into minors, cutting the breasts off. At this point, now that we have all the data that we have gathered over, you know, five years of doing this to children. At this point, there's 211 that firmly believe, yeah, no. Damn it. We should cut off the breasts. The healthy breasts off of a healthy minor. We've got to make those -- we've got to make those decisions. And a 12-year-old make that decision. A 15-year-old should make that decision.

Really? No!

It's just politics. And if they do think they believe it, they believe it because they've been party brainwashed. You know, how many of us, on any -- on any and all sides, how many of us actually believe something and have thought it through, and how many of us are just kind of zombie following the crowd?

I contend most people are just zombies following the crowd.

Whether -- that might be a crowd now of, you know what, Charlie Kirk was killed by his wife!

There's all kinds of zombie crowds. And they don't require you to think at all.
They just require you to sign up for the team. And that's -- that's my biggest problem with the Republicans. Is I'm not on a team.

You know, when I left Fox, Roger Ailes said to me, you know what your problem is? And I said, no. But I know you're going to tell me.

What's my problem?

He said, you won't play the game. He said, you know, there's -- there are well-established rules. If you need a pound of flesh, you take a pound of flesh from me.

But then you owe me a pound of flesh. So when I need a pound of flesh, I'm going to come and take it out of you. And then we go out, and we have dinner with each other.

And I was just astounded that that was actually spoken out loud. And I said, see, here's the problem: I don't believe it is a game.

I actually believe in something. And -- and I thought more people believed in something.

Don't you feel like you just want somebody to go in, like Mr. Smith Goes to Washington, and actually believe in something!

And then when they find out, wait a minute. I've been duped like Mr. Smith Goes to Washington.

They stand up and say, this is wrong!

And I'm not playing that game. And I don't want to play that game. And you kind of, again, there's so many hoops you have to jump through, for this to happen.

Then you actually have to believe that there are other people in the Congress and the Senate, that are like, you know what, he's brave enough to say it. I'm going to stand up next to him.

I mean,, oh, I remember when I was young and naive. And I believed those things would happen.

I still believe they can happen.

But only when the American people return to common sense and demand it.

"It’s a Wonderful Life" - The Amazing UNTOLD Story of the Classic Christmas Movie

It’s a Wonderful Life wasn’t always a beloved classic — in fact, it was a complete failure that nearly destroyed the careers of Frank Capra and Jimmy Stewart. Glenn Beck reveals how a forgotten film, resurrected only because its copyright lapsed, became one of the most meaningful stories in American culture. Through George Bailey’s quiet sacrifices, the movie teaches us that the true measure of a life is often invisible, discovered only through the small acts of faithfulness and love we give along the way. This timeless reminder — that ordinary people can change the world without ever seeing the ripples — is why the film still breaks our hearts, heals our spirits, and reassures us that we mattered.

Transcript

Below is a rush transcript that may contain errors

GLENN: Let me tell you a story that you think you already know. It's about a movie that feels like it's been there our whole lives. It's like a tree in the town square and the hymn. You don't remember learning, but somehow you know it by heart. But this particular movie hasn't been around forever, it just seems like it. It was actually born out of failure. It was born out of exhaustion.

And it was born out of people who felt just like its lead character, George Bailey.

It's a Wonderful Life has a fascinating story behind it. And it speaks volumes about us, our hopes, our fears, our desires.

The movie was made by Frank Capra, and it was right after World War II. Frank Capra had just come back. He didn't come home triumphant. He came home a changed man.

He had spent the war making film for the United States government. The war department.

About why the west is worth saving. This film series. They're fantastic. It's called Why We Fight.

And when he returned, his old style of doing things, the old machinery just didn't fit Hollywood anymore. So he started his own studio. He bet absolutely everything on it.

And It's a Wonderful Life was supposed to be the movie, that proved Frank Capra is still Frank Capra. And it nearly ruined him. The movie lost money. Critics really didn't like it. They mocked how schmaltzy it was. Audiences stayed home.

Jimmy Stewart, this was his first movie that he made, when he came back home from the war. And this was his start. And between Frank Capra and Jimmy Stewart. Oh, my gosh, you've got a massive hit, right?

Nobody came. Nobody watched it. Jimmy Stewart, the most beloved man in America gave a really raw, shaken, almost too real performance for people at the time. He wasn't the cheerful hero that is coming out of war as a victory.

This was a man that was cracking under the weight of responsibility. A man who did everything right, but he still felt like he was a failure.

Any of this sound familiar?

It was a story about what happened during the Depression and the crash of '29. Well, America had been living that forever!

They had been living that since '29. They went through the long Depression.

Then they went through the war. The first thing, out of war, they don't want to watch a movie about how depressing life can be. Okay?

So it was a total failure. Film disappears. Goes into a vault. It's a noble misfire.

Good idea. It just didn't land. Maybe wrong time. Eh. Maybe too schmaltzy. Then something weird happened, everybody forgot about it. And so the rights lapsed. There was no grand relaunch. There was no marketing genius, just a legal oversight that let the rights lapse.

Enter Ted Turner.

Ted Turner and Super Station TBS. Remember Super Station TBS when he bought a bunch of stations across the country, and he tied them all together.

And then cable came in, and Super Station TBS became TBS. Turner, while he was looking on super station TBS. They needed some holiday programming. And they needed it cheap. And when I say cheap, what they -- what Ted really meant was tree. We need a bunch of free programming, that we can run all Christmas.

Okay?

No rights. No royalties.

What is out there?

The vaults opened up, and lo and behold, they find It's a Wonderful Life.

Suddenly, it appears in our life, and I don't know about you. I always thought it had been around forever. It did seem like it was a new relaunch.
It was like, hey, did you hear about this new movie?

It was just there and on. We thought everybody knew about it. Nobody knew about it. Our grandparents probably didn't know we knew about it, because it was a massive failure. It's on afternoons, late nights. It's on mornings.

It's everywhere. It's everywhere. Black and white snow flickering on the living rooms. As we are playing on the floor. We as the adults are half listening, half watching. And slowly, slowly, its message found us.

It found us this time, because America had changed.

We weren't fresh from it despair. And we weren't fresh from victory anymore.

We weren't those people. It wasn't so close to us, that we didn't want to look at us!
Yes, we were tired. We were busy. We were stretched thin.

But we were also a group now that measured our lives in promotions. And in square footage. And bank balances.

We were starting to become a little Mr. Potter-like. And we didn't want to be Mr. Potter.

And there on the screen is George Bailey, standing on the bridge, wondering, would the world be better without me? He's not a villain. He's not a loser.

He's actually a really good man.
He's the best of us. And that's why it still works.

Think of all the happy endings and all we have, and everything else. And all of the stories that we tell ourselves.

This movie doesn't tell you, that life will turn out the way you planned.

This one tells you something much, much harder. That the measure of your life is probably going to be invisible to you, while you're living your life.

Because Clarence ain't coming down in his 1800s clothing, and having a hot toddy with you.

So you probably won't know the real measure of your life. And the biggest victories in your life don't come with applause. And the sacrifice, it usually doesn't feel heroic at the moment. It just feels like sacrifice. And crap. Why me. Why me?
Why don't I ever get the adventure that I planned my whole life? Remember, George never left Bedford Falls. He never becomes famous. He just stays. And he shows up. And he keeps his promises. And he holds people together.

What is the real -- what's the real miracle of the film?

Because it's not Clarence. It's not the bells.

It's not him getting his life back. The real miracle is the ledger. That's the miracle. The names, the faces, the small kindness, you all stacked you up, one on top of each other, until you realize, oh, my gosh. All of those little acts, they amount to a life that actually mattered. We're all looking for the big splashy -- he didn't get any of those. He didn't get that.

And that's why he felt like he was a failure. That's why when the town shows up in the end, and they're all giving just a few dollars, it breaks us every single time. Because deep down, we're not watching George Bailey. Deep down, we're checking our own books, our own ledger. Did I? Do I matter to anybody? Would I be missed? Do the things I gave up -- the things I really wanted to do in life, but because something else came up. I had to serve, I had to do this for my kids. Or I had to do this -- the things I gave up, does it mean anything?

This film answers it with a whisper. It doesn't shout it. It whispers.

You'll never fully know the good you've done. I can't give you an answer. You'll never know it. You'll never see the ripples while you're standing in the water.

But they're there. Believe me, they're there.

So this year, when you either just have it running, while you're all in the kitchen. And you're watching time to time. Oh, I love this part. I love this part.

And everybody gets quiet and you just curl on the couch and watch it again, remember, you're not watching a Christmas movie.

What you're watching is a reminder that life doesn't have to be loud to be important.

That staying can be braver than leaving. That loving your family and your neighbors and your town, imperfect as it is, that's not settling.

It's choosing. And whether Ted Turner knew it or not, I can guarantee you, that Jimmy Stewart did. And Frank Capra certainly did.

That every time you see that, why we, year after year, when the snow starts falling in that old piano theme play as we comes back. Not for the nostalgia. But for the reassurance.

Because every once in a while, all of us need somebody just to look us in the eye and say, you're here!

You mattered.

And it is a wonderful life.

How Trump TRICKED the media with his presidential address

President Trump recently addressed the nation about his administration’s many accomplishments over its first year. Glenn Beck reviews the best moments of the speech, as well as some moments he doesn’t believe will age well. Plus…did Trump trick the media into playing his highlight reel by making them think he would declare war with Venezuela?

Transcript

Below is a rush transcript that may contain errors

GLENN: So last night, the President spoke, and, you know, he started out.

It was -- it was -- let me give you the overall first. I've never seen him more disciplined.

I think the speech was like, I don't know. It was over by 20 minutes after. And I think he ran six minutes late. I mean, I've never seen -- he doesn't say hello in less than 20 minutes.

He stayed on script the whole time. He was extraordinarily disciplined. He was forceful with it. And he explained what has been done in the last year. And he started out saying, a year ago, our country was dead. Now we're the hottest country. We're the hottest country in the world right now. Nobody has ever seen anything like it.

He said, you know, when he took -- when he took over, inflation was the worst in 48 years.

Caused prices to be higher than ever. Making life unaffordable for millions of Americans. And he said, over the past 11 months, we brought more positive change to Washington than any administration in American history.

Never been anything like it.

He talked about successfully negotiating $18 trillion of investments into the country.

And he said, but the real problem for most Americans was under Biden, car prices rose 22 percent in many states. He said, 30 percent or more. Gasoline rose 30 to 50 percent.

Hotel rates raised 37 percent. Airfare rose 31 percent. And he said, they're all coming down. They're coming down fast. Faster than anybody expected. Drugs, brought by ocean and sea are now down by 94 percent. He said, we broke the grip of sinister woke radicals in our schools.

I restored American strength, settled eight wars in ten months, destroyed the Iran nuclear threat. And ended a war in Gaza, bringing for the first time in 3,000 years, peace to the Middle East.
Then he talked about, you know, what's coming next!

Now, here are my thoughts on this: You know, everybody was speculating, he's going to say we're going to war. What would give you that impression?

I mean, he doesn't -- that is the very last resort. And we are not out of tricks with Venezuela.

I don't think we're going to war with Venezuela.

I think he's making it look like we're going to war, to freak Venezuela out.

And to get Maduro out.

I don't think we're going into war.

I hope we're not. I could be wrong.

But I just don't think that's his deal.

Everybody is speculating, he will announce we're going to war.

No. He's not.

However, is it possible that they were leaking this?

Because I saw this as the kickoff of the campaign. I saw this as okay. This is the message for 2026 for the Republicans.

And it was so disciplined and -- and so tight. You know, he gets -- when the president calls a speech at night and says, he wants to address the nation be, the networks are asked to carry it.

Sometimes they don't. They don't have to. But if he said, look, I only need 20 minutes, I'm sure that everybody at NBC. I mean, I did. Rolled my eyes. Yeah. It will be 20 minutes.

It will be an hour and 20 minutes. But it was tight and focused in 20 minutes.

I wonder if the war thing wasn't a way to get them to cover this.

If -- if it wasn't a leak from the White House. You know, I think he might. I think he might announce war tonight. Then everybody will cover it. I don't know.

Maybe that's me being too sinal. I don't know. Can you be too cynical at this point?

Here's the thing. He said a couple of things that I didn't think will serve him well. And it's only because -- and I think you feel the same way.

I know I'm sick of it. And I've been reporting on it since the beginning of Obama.

And I hated it when Obama was doing it. And he did it for eight years. Biden did it for four years.

And here's the line: I inherited a mess. I inherited trouble. I'm cleaning up somebody else's mess.

True. It's absolutely true. It wasn't with Biden.

It kind of was with Obama, at the beginning.

But, you know, when you're seven years into it. You haven't cleaned that up yet?

I mean, you've got to get a bigger mop. But it's definitely true under Donald Trump. However, people have heard that now from the last three presidents.

And they're tired of it. It has no meaning anymore. Even though it's true.

And I want to go back to truth here in a second. The other thing that I don't think will serve him well is the economy is doing better than ever.

You're going to love it. It's great. People are not -- that might be true!

In my opinion, it's not. It is doing much, much better.

I mean, you know, you -- you had -- what was it?

Twenty-five percent. Thirty percent inflation added to everything? You've got to go into negative inflation to be able to get those prices down. They're going to be up there. And what's happening is, we still are adding 2 percent inflation. And that's the target. I don't know why we put up with that target, but that's the target.

So you'll have 2 percent price increases every year. Now, we're at 3 percent. We get the numbers out today.

It might go into the twos. Are they out yet?

STU: Yeah. 2.7, the number out today.

GLENN: 2.7 that's great.

STU: Yeah, it's better. It's going the right direction. They say part of that might be because the government shutdown, so we're not sure how long that lasts, but positive movement anyway.

GLENN: Yeah, so that's fantastic! So coming down to 2.7. Remember, we were at 9, and it was compounding year after year after year.

So he is bringing things down. And the price of some things like gasoline and eggs. And some of the stuff you get at the grocery, are way down. They're not back to where they were in 2016. Or 2020.

Because, I mean, he's just trying to stop the inflation.
So what's happening, and this is what I say, will serve him well is, there was this great marketing book out in the '80s called Positioning the Battlefields of Your Mind -- or, Battleground of Your Mind.

And it was a book that led to the Cola Wars. It was the understanding of the Cola Wars and how Pepsi could beat Coca-Cola.

They had to change the perception. And the perception was, that Coca-Cola was it!

And Pepsi had to change it, and that's why they became the choice of a new generation. And for a while, Pepsi was -- it may have even beaten Coke.

But there was this real Cola War back and forth the whole time. They didn't change the flavors. They didn't change anything.

Pepsi was what Pepsi always had been. Coca-Cola was what Coca-Cola had always been.

They needed to change the perception, okay? Because perception, whether it's true or not, perception is reality.

Whatever people perceive, and feel, is their reality.

So it's the reality that you have to deal with.

People don't feel the relief yet. They see the prices coming down. But they're still paying out the same amount of money that they were paying out under Joe Biden.

It's not getting worse. Except, by 2.7 percent overall.

But it's -- it's not getting better to them. You know, certain categories are.

But overall, you're still struggling with your rent and everything else!

And so people's perception is: It -- it's not what I expected. Because what I expected was 2019!

I expected to have jobs and the economy rolling. And the price of housing coming down. And everything else.

And it's not.

So what's not going to serve him well is saying, "Your perception is wrong." He might be right! It doesn't matter! You can't tell people their perception is wrong. You have to change that perception.

And the only way to really change it is to demonstrate it, or through ads, you know, back in the Cola War era, they just changed slogans and do ads and everything else. But people don't buy slogans anymore. They don't buy ads anymore. They don't even trust logos anymore. So that won't work.

You actually have to change people's lives to change their perception. Now, 25 percent last month said that they felt that their personal finances were doing better. That was last month. Or the month before last.

This last month, it's up to 27 percent.

So he's moving that in the right direction. But to win, you've got to be over 40 percent.

Easy over 40 percent have to feel like their personal finances are getting better. 27 percent is not enough. But it is moving in the right direction.

So when the president says he's got to relate to the people who steal -- who have defended him, liked him, and believe in him, he's got to say, I know you're feeling the pinch.

You know, one of the things he said last night. But I don't think it's connected yet to people.

And it's because it's absolutely true. Why do you think that you are spending more every month for your rent?

Why?

You're spending more on rent, because there's too many people chasing too few houses and apartments.

You cannot add ten to 15 million people in four years, while you're not building things. You can't add 10 million people into your country and say, oh, by the way. Go get housing.

Where are they going to get the housing?

The housing, you're going to have a shortage, which will cause the prices to go up.

So until you get rid of those 10 million people. You're not going to lower the price.

And especially if the government is subsidizing them.

Because, I mean, look at the NGOs. If people know, the government will pay. They will keep the price up. What would happen with NGOs. Look what's happening with universities. Why do you think universities are so expensive?

They weren't like that. Until the government said, we will guarantee the loans. Once the government said, we'll guarantee the loans, prices went true the roof because everybody could get a loan!

That's the problem. He's got to connect this, and I think he started last night. He's done it a few times. But somewhere or another, it's really got to connect with the American people.
You cannot solve the housing crisis and not solve the immigration crisis. You have to send people back home, or you're going to have to wait five years, as we build new apartment complexes and new buildings. And we stabilize under these ten million new homes that were needed.

That's not popular. And nobody is going to wait that long. Somehow or another, he's got to make that point. And it's got to connect with people, to give him more time to turn things around, on the housing.

Now, he also was really strong in saying that he was appointing -- wait until you meet the guy to appoint the head of the Fed.

Well, I would like to meet that person too. I would like to know who that is. He said he will do it right after the first of the year. Because our Fed chair is leaving, after the first of the year in February. And he said he's a guy who understands low interest rates. And, you know, low mortgage rates, looser money. That could be really dangerous with -- with inflation, but we'll see.

But that could be a turning point, one way or the other, a new Fed chair will be a new turning point.

And hopefully, Trump and this new Fed chair know what they're doing, and it won't make things worse.

But I don't know how you can with the Fed. I mean, they've already made everything so bad.

Brand new show takes you backstage with Glenn

Everything changes January 5th

Enter your email to be the first in line for groundbreaking Torch reveals:

Hey, it’s Jason Buttrill, Glenn’s head writer and chief researcher.

Have you ever wondered what’s going on behind the scenes of Glenn’s radio show?

What’s happening right before he starts the show? How do he and his staff get ready? Is it chaotic during the show as Glenn adapts to breaking news?

Glenn has decided to bring you all in on the action. Introducing the Torch Insider Feed—a new segment running throughout the daily radio program. I’ll be your guide during the entire show, popping in just before it starts and at other times when non-Insiders typically see commercials.

I’m going to give you a behind-the-scenes inside look that hasn’t been seen before.

But beyond that, we’re going even deeper. We’ll use Glenn’s new content tools to rapidly access the information he’s shared with you over the past two decades—all the dots connected, all the history explained… EVERYTHING. And we’ll—somehow—fit it all in before Glenn returns from commercial.

As an Insider, while Glenn does his daily radio program, you and I will push the boundaries of what we can learn and experience during his show. You’ll be able to comment on everything we’re talking about, and I’ll respond in real time. It truly is a one-of-a-kind experience that I don’t believe has ever been attempted before.

Coming January 2026.