RADIOMarch 17, 2022

What the Fed’s interest rate hike MEANS FOR YOU

In an effort to curb rising inflation, The Federal Reserve just announced an interest rate hike of 25 basis points (one-quarter of one percent). It’s the first time the Fed has raised such rates since 2018. So, what exactly does this mean and how could it affect YOU? Carol Roth, financial expert and author of ‘The War On Small Business,’ joins Glenn to break it all down…

You can read more of Carol's take on this issue here: https://www.theblaze.com/op-ed/roth-what-the-feder...

Transcript

Below is a rush transcript that may contain errors

GLENN: Hello, America.

Yesterday, the fed raised the -- the interest rates.

And they said, they're going to do it, I think six or seven times more this year. This could get dicey in many ways, for everyone.

And I want you to understand, what happened yesterday. And not in terms of, well, you know, us traders believe. I don't care. I don't watch CNBC. Because I only understand about half of it.

I want to know what this means to the average person. Carol Roth joins us. The author of the war on small business. She gets it. And can explain what it all means. In 60 seconds.

Carol, welcome to the -- welcome to the Glenn Beck Program.

CAROL: Hey, Glenn. Lots of things to talk about.

GLENN: Yeah. Boy, I have a long list for you too. So let's start with what happened yesterday, and why people should care.

CAROL: So I want to take a step back, and talk about, you know, why the fed did what it did. In terms of raising interest rates. What we call 25 basis points, or a quarter of a percent.

100 basis points is 1 percent.

GLENN: Okay.

CAROL: And basically, they were undoing the -- at least attempting to start to undo the effects of what they in part cost.

Their monetary policy, zero interest rate policy, printing trillions of dollars, the government spending trillions of dollars, in terms of fiscal stimulus. Turning parts of the economy off, and wrecking these labor markets supply chain.

All of those things are the reasons we have inflation today, exacerbated by decisions that the Biden administration made around oil and gas, dependents and what not.

So basically, we had inflation.

GLENN: Correct.

CAROL: Which we've all been talking about. As we go to the grocery store, and certainly the fuel pumps and whatnot.

And so finally, they said, we have to do something. Now, I'm going to tell you, this is a little bit of window dressing. Because they were doing accommodation. They were in the market, purchasing securities, last week.

So last week, they were being accommodative.

But this week, we have to maintain our credibility, and we need to do something. So they decided to raise what is called the fed funds rate. It's a rate, where banks lend to each other overnight. In terms of their reserves.

And that reverberates through the market. So they brought that down to a target, of zero to a quarter of a percent. And they had held it there for the last couple of years. And they said, okay. Well, you know, inflation is getting away, we better raise some interest rates. One of our tools in order to do that. And they took the huge step of a whole quarter of a point increase, to do it.

GLENN: Wow.

CAROL: Yeah. They're very -- because they need to be credible.

GLENN: Right. So the last time we had a problem of this size, it took an interest rate of about 19 to 20 percent, if I'm not mistaken.

Raising it a quarter is really -- is a joke.

Where do you think, these interest rates should be?

Not -- not considering killing the economy.

Just where it should be. Should it -- if we were in a healthy country, still, would it be 20 percent, or more?

CAROL: So there's a couple of things to unpack there.

First of all, this is an unprecedented situation. We don't have a benchmark, because we have never had central banks, not just in the U.S. but around the world, printing trillions upon trillions of dollars. This has just never happened before. We've never had governments turn off the economy.

You never have a situation, where there's 1.7 jobs available, for every job seeker, because of what the government did.

So we're flying a little bit blind. I've always been a fan of normalized interest rates. I think it's a horrible idea, to have the fed meddling, and trying to direct things.

I want the market to set it. And so before all of this nonsense started, before the financial crisis, the great recession, financial crisis in '07 and '08, which was really the first time we went totally off the rails, with the zero interest rate policy and the purchase of securities, the interest rates were around 5-plus percent. And that seems to be, you know, a healthy place, where things should be.

We should not be in a place, where we're saying, you know, when you take risks, you shouldn't be getting rewarded for it. You know, 0 percent interest.

It makes no sense. So in reality, you're still at very historically low interest rates. And in a healthy economy, to have three, four, 5 percent, would be completely acceptable. We just have been so addicted to this easy money and this free money for so long, I'm not sure how we get out of this.

GLENN: Okay. So there's a couple of problems with 5 percent interest rates, right now. One would be that people would not be able to afford a new house, et cetera, et cetera. Because of inflation, and everything else.

But the other, that nobody ever talks about, is that we now have a national debt over $30 trillion. And that is just like buying a house. You have an interest rate, on that.

If we have an interest rate of 5 percent, how much more money do we have to pay?

CAROL: Bingo, this is the dilemma that the fed has gotten themselves into, by keeping down interest rates. They've basically given the government a free pass to just spend and spend. And to rack up more and more debt.

And we're at a point, to where the debt is completely out of control.

And, you know, has competed our level of GDP.

So if you think about 30 trillion of debt. And obviously, the fed fund rates. And the interest rate on the debt is not a 1:1 correlation. But we know that as one moves up, the other moves up. So in terms of the interest on our national debt, I want everyone to pay very close attention because this is staggering. For every 1 percent increase, that is another $300 billion, that we have to pay in interest, on the national debt.

That is our tax dollars, that are going to pay more, for things, that we have already purchased.

It is not new purchases. It's literally, a finance charge.

Almost like a credit card interest rate, on stuff we have already bought.

And this is the dilemma, the fed has. Because they know, as they raise interest rates, this is going to get out of control. The CDO. Had made a projection, than saying, this is going to get out of control. But in their projection, they said, well, we think the yield on the ten-year treasury note, gets to about 2.1 percent in 2025.

So, you know, we're going to have to really be concerned, maybe in 2029, the yield on the ten-year Treasury note is at that 2.1 percent today. So multiple years ahead of time.

GLENN: Please talk down to me like I'm in kindergarten.

I don't understand the yield thing with the Treasury. How that works. How that's affected. So can you explain that?

VIVEK: Yeah. It's basically how much the government has to pay on debt.

So what the market demands

And obviously, if there's a lot of demand, for Treasury securities. The price of that goes up.

Then the yield, or the interest that you demand is lower.

Because there's a lot of demand. You have to pay a lot for your debts.

GLENN: But we had been at very, very, very low --

CAROL: Very low.

GLENN: Because the fed was buying up. There was no demand for our treasuries, which is our loan.

CAROL: So let me put it in context, what we're paying currently on our national debt, in terms of a combined interest rate, is somewhere in the neighborhood of projections of 1.4 percent to 1.6 percent. So they've been able to finance that at a very low rate. But that number is starting to creep up. And with the fed increasing interest rates, it will further creep up. And every 1 percent is $300 billion.

GLENN: So if we have an interest rate of five or -- five or six percent, we're talking like between two and three trillion dollars more, the entire budget.

CAROL: Yeah. Exactly.

It's just completely untenable, at that point in time.

So I would -- I would imagine other things happened, in the interim. But this is why, when we talk about things like MMT, Modern Monetary Theory, or what I call Magic Money Tree.

That says, well, you can just print into infinity, because we can just print more. Well, we're now living through that realtime experiment. As you said, no, you can't. It causes inflation.

It has real costs for the average American, and it decreases the value of every dollar that you hold.

GLENN: All right. So the best thing you can do is get out of credit cards. You should cut those up if you can.

CAROL: Yes.

GLENN: And pay them off if you can. Get a refi right now. Because you're probably paying about 16 percent for your credit cards, correct?

CAROL: Yeah. And it could be going up.

And anything that has that adjustable interest rate associated with, some people may have something called an arm and an adjustable rate mortgage. Where it adjusts over time. Maybe it's fixed for a certain number of years. Anything that is adjustable rate debt, is going to increase in price. And if you need financing -- let's say you have a business, and you haven't taken advantage of low rates yet. You're going to want to lock that in on a fixed basis now, because it's not going to get cheaper any time soon.

GLENN: Now, the other problem is, with raising interest rates. Let's say you have a business. And you need a loan.

If the interest rates starts to go up, that kills that business. They can't afford that loan. Just like we can't afford our national debt. Or you want to buy a house. Yesterday, mortgages. New mortgages fell immediately, just on the -- on the whisper, that it was coming.

We are seeing a slowdown in mortgages. Which means people will buy fewer houses. The scary thing about this, is you don't know where that switch is. You're just going to have to kind of guess. And it might shut everything down.

CAROL: That's the needle that the fed is trying to thread, in addition to dealing with the consequences of the national debt. What happens, is as they raise interest rates. You know, their intention is to slow down the economy. I mean, that's basically what it is. They want to slow down consumer demand.

GLENN: Right.

CAROL: But the question is: How do you do that, without creating a recession, or without creating reverberations for the economics of the average American?

GLENN: So can I be really, really cynical? I mean -- in fact, let me go beyond cynical. Let me go into, I'm a thriller writer. Okay? And I'm writing a thriller. And for some reason, this country needs to slow down the economy. But they can't slow down the economy, because then businesses will fail. But they don't really care about the average person. You know what I mean?

That's going to fail. We'll print more money. Put them on welfare. Tell they believe to stay home. Or whatever.

Wouldn't one way to slow the economy, for the consumer, but not slow the economy, for the big corporations, would a war do that?

CAROL: I think that would completely change the tenor of the economy. But I think that raising the interest rates does that, because kind of like we saw over the last couple of years, if you are a big corporation. You take advantage of that debt. You have that war chest. We've had that strong balance sheet. So in terms of the transfer of wealth, that is one way to do that. But the war, that would completely change the tenor of, you know, who benefits. And certainly, it would be the bigger guys versus the smaller guys. But it would be more defense, rather than the financial services industry, for example.

GLENN: Yeah. Okay. Carol, hang on. I have some more questions. And I would like you to explain a couple of other things, coming up in just a second. Give me 60 seconds. We're back with Carol Roth. The name of her book, is The War on Small Business. A must-read.

GLENN: All right. So I want to talk to you about the dollar being the world's reserve currency.

Because I'm watching these sanctions, that are being put on.

And I'm seeing things happen, to where, if I'm another country, especially Russia. I'm going to China, immediately, saying, I want to partner with you. Because they just made my money worthless. I can't get my money out of the central bank. The Federal Reserve. That's my money.

And they won't let me get to my money. If that starts to happen. And then Saudi Arabia starts to sell oil, off of the petrodollar, that's really bad news. And let's say, the West holds together. But half the world is off the petrodollar.

What does that mean for us, Carol?

CAROL: It potentially means the end of the U.S. dollar, as a reserve currency.

GLENN: Explain what that means. Because -- I mean, to the average person. Forget about, you know, the central banks and everything else. What does it mean to the average person? To have half the world get off our dollar?

CAROL: Yes. So this is why I love you, Glenn. Because we take the most complicated concepts in the world.

GLENN: I know.

CAROL: And trying to explain them, as if, you know, it's Elmo and Big Bird here --

GLENN: Right.

CAROL: The idea of being the reserve currency. Is something that's -- you know, has sort of a long history. And it means, particularly in the case of goods and services. But also in the case of oil, that everyone in the world, pretty much agreed to use dollars, for a settlement. And that puts some responsibility on the United States. There's something that is called the Triffin dilemma. And there was an economist back in the 1960s, who basically said, there's a conflict. If you are going to be the world reserve currency, you're going to have to make tough choices. And you're not always going to be able to do what's right, at home, in order to make sure you're doing what's right, in the national sphere.

GLENN: Everywhere. Yeah.

CAROL: And unfortunately, you know, this has been an issue, that's been going on for a long time.

But in recent times. As we've been talking about with the fed and the decisions they've made. They actually haven't done right by either party.

They've been screwing over the average American, with their policy. And transferring wealth. But they've been doing the same thing in the national sphere.

And, frankly, a lot of countries are getting sick of it.

And so there have been predictions for quite some time, that there was going to be an event -- an adviser actually to the OECD said that it's probably not an economic event. It's a geopolitical event, that's going to expose the system. You know, wink, wink, nudge, nudge. And so a lot of folks feel like the sanctions that were made against Russia, were potentially a cover story. That we know that we'll potentially lose this reserve currency status. So we're going to say, well, we did it, because we had to take a stand.

But the reality is, you know, as we've now shown the world, you can put your money, in our central bank. And you can buy Treasuries. And U.S. dollars.

But you might not be able to access them. Which is not a really good thing, if you're going to be the world's reserve currencies.

GLENN: Correct. Correct.

CAROL: So there's a couple of potential outcomes. And I know you've been talking about this, Glenn. But, you know, one thing that folks have been talking about.

Is does China potentially step into the reserve currency position?

There is an issue around them. Because usually, if you have the reserve currency, you run a trade deficit. And we know that China is a nation of exporters. Are they really going to step into that? I'm not sure.

The other thought is, listen, we've seen so many banks. Central banks around the world. Print so much money. There's all this debt. You can't really just say, we're going to cancel it all. Because there's counterparties. There are people on the other side of the debt. So what could you do to offset that?

GLENN: Hold on. Hold on. Elmo and Big Bird has to stop. Because Elmo says, there's only 20 more seconds left.

CAROL: Okay.

GLENN: So we will come back. Because I really want to hear this -- this other new plan, and canceling debt just opens up Pandora's box, at least in my head. We'll talk about that, coming up more. Carol Roth, coming up in in just a second. Stand by. That's right. Did you get the vaccines yet?

GLENN: We're with Carol Roth. She's the author of the -- of the book, The War on Small Business.

She's a former investment banker. Don't hold that against her. She calls herself a recovering investment banker. She worked on Wall Street for years and years. Then kind of went, oh, I might be on the wrong side here.

And is trying to do everything she can, to strengthen individual businesses. Small businesses all across the country. And I love her for it.

Carol, you were just saying, that one of the options, in this nightmare scenario, which I think is unfolding in front of us. Where the world reserve currency, is not going to be the dollar.

I don't know what it is. But they're going to change the dollar, from what it is. To a digital dollar.

And I don't know how it all shakes out. But probably not very well.

But you brought up, there is all this debt within that we just can't cancel, because there's other people on the other side of that debt. So explain what you think.

That can't happen, you say.

CAROL: Well, I mean, nothing is a never scenario. Right?

GLENN: Not anymore.

CAROL: In an unprecedented situation. And, you know, for people who are students of history, despite all of the wreckage that could come from this, it's a very interest pointing in time. Especially, financially, you had the U.S. dollar as the world reserve currency. You had then us going off the gold standard. Then you had us, you know -- with the petrodollar, basically saying, we will manage the dollar as good as gold for oil.

And then you had the fed, basically go completely rogue. And not do that.

And anybody who is holding reserves, that they're supposed to say, well, the U.S. dollar is safe. And it's a good store of value. We'll keep devaluing it. That's not a thing.

And so -- and, by the way, these are not my theories. I'm just communicating what is out there, from people who are far smarter than I -- everybody by writing up another asset. So is there a neutral asset, that central banks have access to, that's on their balance sheet, that maybe they have been buying, at really good prices, that all of a sudden everybody comes together, and says, well, we'll just write up the value of that?

It's like writing down the -- gold.

GLENN: Gold.

CAROL: So central banks have been buying tons of physical gold. By the way, billionaires have been buying a lot of physical gold as well. And I'm using the term physical, because it's different than the market that is traded.

GLENN: ETFs. Those are ridiculous.

CAROL: ETFs. That's done in dollars. So who is backing that?

But physical gold. So there is a theory going around, that potentially that standalone basis or a basket of neutral metals. Which was thrown out as an idea, early on. When it was pushed aside for the U.S. dollar. That maybe there is this -- meeting of the minds.

And, you know, this is the way that you make all of these other central banks. And countries full. Is you just write up the value of that gold.

So if you think that that's going to happen. And you think that the financial system is going to collapse, you know, then you want to be owning physical metals. And have a store of that.

GLENN: Because when you say, they're going to write off debt, you don't mean people's houses. You mean --

CAROL: No. This is government debt. They cannot write up government debt. Because when you take -- that's a loan, right? You owe the money back to somebody. So the other side of potentially doing some sort of. We'll have mass forgiveness.

Is that when you take something else that everybody else has. And you say, it's more valuable. Overnight. It's magic.

GLENN: That doesn't sound like --

STU: Bad magic trick.

GLENN: Yeah. It sounds like -- we're dealing with a lot of black magic.

Stu and I were talking about this story that came out of Britain. We hadn't heard anyone talk about this. Explain what happened.

STU: Yeah. Just a little background. It's in the London metal exchange.

And it's the price of nickel. Now, I know no one cares about the price of nickel. Just to give you the basis here.

GLENN: Tesla does.

STU: Yeah. That's true. If you're buying an electrical car, it's true. Basically, the last five years has bounced back and forth between 10,000 and 20,000 per metric ton. Okay?

It got up to a little bit above 20,000, in the last few weeks. Obviously, all this time going on with Russia. Russia, Ukraine. Big sources where it comes from, for all these electric batteries. It goes basically from 20,000 to 80,000, in basically a day.

Okay? So four times, in one day. So let me read this: This is from the Wall Street Journal.

GLENN: Listen to this. Have you read this, Carol?

CAROL: Oh, I know this story. I do know this story. So we can talk about this.

GLENN: Yeah, this is crazy. Listen to this, America. This is craziness.

STU: Yeah.

So traders on the London Metal Exchange smelled blood, and nickel prices almost doubled in a short period of time. A Chinese company faced a 1 billion-dollar margin call. That exchange officials felt they couldn't meet. Rather than let it fail, which would have probably taken down several of the smaller brokers that serviced them. The London metals exchange decided to cancel all of the day's trading. More than 9,000 trades, worth about $4 billion.

It canceled the trades. Not because of a fat finger error. Which exchanges often cancel. Not because of a rogue algorithm, as regulators claimed in the 2010 flash crash in U.S. stocks, but because someone with too much leverage was going to blow up, with effects on some members of the exchange.

This moral hazard is taken to an extreme. It's always been true, that if you face a 100-dollar margin call, it's your problem. While if you have a one billion dollar margin call, it's the broker's problem. And the authorities might save them. What is almost unprecedented here. Is the exchange authorities decided to save them, with money taken from other traders, who otherwise would be sitting on fat profits.

I mean, you won. You picked the right direction. You've got these huge profits. And they cancel your trade, to save someone else.

GLENN: And it's China.

STU: And it's China.

GLENN: I mean, there is no such thing as a free market with this.

CAROL: No. This is another too big to fail scenario. It happened to be -- I believe it was an individual billionaire, who had made a short set against nickel. So he went in the other direction.

GLENN: Wow. I mean, then you don't -- you don't put the money down on the table. If you don't know what the odds are, and you're not willing to lose your money.

That's like going to Vegas, and -- and placing a huge bet, and when you lose it, you're like, hey.

You know, Caesars. I mean, this is crazy. And Caesars says, oh, we're not going to count that bet.

That doesn't happen!

CAROL: It's horrendous. And it goes back to the integrity of the market. And so many that the retail investors have been rallying against. And it's just another example. And there are big name banks involved. The exchange was actually shut down for multiple days, I believe. Before it started trading again.

And the people who made a bet, and decided to participate in the market, ended up getting screwed out of their profits. But they're never going to get the leniency, if it happens to them on the other side.

GLENN: No.

CAROL: And just the overall integrity, like you said. This is not a free market. It's not a fair market.

And we have too many of these big guys, who are being saved, at the expense, sometimes literally, sometimes figuratively, of the small guys, over and over and over again.

GLENN: And that's what I think people are so sick of.

And when they see this next crash. Especially with Janet Yellen saying, it will be equitable. When we reassemble, it will be equitable. What the hell does that mean? Probably stuff like this. And when they see the rich getting richer. And I don't mean a person who runs a business and may have a million dollars.

I mean the rich.

The elite of the elite. The BlackRocks of the world.

The banks of the world.

I just -- when their debt is being bailed out and real Americans are paying huge money for their food and their gas. And then their home is taken, there's trouble. That's real trouble.

CAROL: Yeah. And unfortunately, that is the scenario. There's one thing to become wealthy, because you earned it in a fair playing field. That's something that we want to celebrate. But we do not want to celebrate, when the playing field is tilted. When somebody has their thumb on the scale. When we have this transfer of wealth from Main Street to Wall Street. Which has been going on for, you know -- in a very large part, for a decade and a half. But it has accelerated over the last year and a half. And, you know, we talk about all of this coming to fruition. And us losing reserve currency status. It's going to mean a slower economy for us. Because we are not in a position. We don't have the strong manufacturing face. Or a competitive pricing. To be able to export. So all these people are like, oh, that's great. We'll reshore the job. They're not thinking in context of the existing economic structure. It will be unfortunately, very painful. But just to have a moment of hope here, Glenn. Because this is really doom and gloom. Is you have to remember, in any time of pain, there's always opportunities. So it is incumbent upon you, to find where those opportunities are. And what --

GLENN: So average person is saying, what is that opportunity?

CAROL: Yeah. It's finding the things that have inelastic demand. Meaning, people will pay prices even when they're continuing to increase and making investments and those kinds of things. Or retooling your business. To be servicing those markets. It's those kinds of shifts, where you have to look for those hidden opportunities.

In what could be a completely new economic scenario for us, going forward.

GLENN: I -- I think what you just said, translates to what I just told my kids.

You get into the job market. You have to be the most effective, efficient, and hard-working employee. Even if you're not at the top of the food chain, you have to be the one that the boss says, oh, we can't.

Because he'll do everything. I mean, he's a little bit. I mean, he works like crazy. You have to be that person. Right?

CAROL: Absolutely. Absolutely. Invest in yourself. And make yourself indispensable to a customer or to somebody that you're working for.

It's a huge competitive differentiation that will only get more important.
GLENN: I would love to have you on, maybe early next week. I just had one of my producers put some stats together on inflation.
And what that actually means to people. I mean, when Biden got in, a hamburger. An average hamburger was $4.40.

Today, that average burger is 601. And if we look at what they say, things are going to be, you know, with -- with the -- what are they saying? 7.9 percent inflation.

That number is going to be $7 force a burger by the time of the next election. I don't think that stat is right. You want to compare apples to apples. Look at how they measured it back in the 1970s and '80s, when we hit it before. That would mean that that hamburger would go from $4.40, to almost $8 by the time we hit a presidential election.

I just want to talk to you about inflation. And how to beat that.

CAROL: Plenty to talk about, would love to.

GLENN: Thank you very much, girl. Appreciate it. Carol Roth. The name of the book is War on Small Business. Make sure you pick it up.

100% of FAKE Applications Were Approved! - The Obamacare Scandal that MUST Be Prosecuted

A new GAO report reveals that 100% of fake Obamacare applicants—fake names, fake Social Security numbers, even dead people—were approved for taxpayer-funded subsidies, exposing a system so bloated and politically insulated that fraud has become indistinguishable from function. Tens of thousands of phantom identities received coverage, billions were lost through COVID-era credits, and yet no one in Washington is being held accountable. This isn’t a clerical error—it’s a national crisis. When fraud is routine and oversight is nonexistent, the question becomes unavoidable: is this incompetence or a system designed to fail?

Transcript

Below is a rush transcript that may contain errors

GLENN: There is a story going on right now. That -- that shows you what happens when a government grows so massive, so unaccountable, so convinced of its own benevolence. That it can no longer tell the difference between literally the living and the dead.

Now, I want to preface this with I want to give everybody the benefit of the doubt here. But I'm not sure they deserve it.

Let me give you the facts. We now have, in black and white, a new accountability government office report.

It's not some blogger in the basement. You know, this is not me saying it. This is GAO. And it shows that faith people. Phony Social Security numbers. And even the dear departed, were routinely approved for taxpayer funded Obamacare subsidies. Now, I emphasize the word routinely, because what I mean by that is 100 percent of the GAO's fictitious applications were approved.

100 percent!

Every single one that was fake was approved.

Okay?

You could -- honestly, you could have taken a napkin and scribbled the words John Doe. Totally real citizen. Thrown some numbers up for a Social Security number. That you pulled out of a fortune cookie, and the federal government would have said, you've got to send this guy a check.

It says right here, he's a citizen here. They would have sent tens of thousands of dollars to your insurance company to reward the fraud.

Okay? This is not a glitch. This is not a clerical error. This is massive fraud.

Once again. Systemic failure engineered, by design. Protected by politicians and politics.

Funded by your sweat. How long do you have to work every day, to pay for just the fraud?

I mean, it is getting to the point to where it's -- it's obscene.

And honestly, if I don't start seeing people go to jail, I said this -- I will start saying this every day now for the next couple of weeks.
I said at the beginning of the Trump administration.

And when they appointed Pam Bondi, I'm not going to give Pam all the room she needs for a year.

Because you just don't throw prosecutions together. Okay?

But I have seen these investigations going on now, for a year. I have seen these investigations going on in Congress for, what?

Two years! It was happening during their -- the last Trump administration. And it's happening now. I've seen Congress do these investigations. I haven't seen a single person's go to jail. What the hell are you spending my money on? Are you just chasing smoke? Because that's what it seems like, except you keep coming out and saying, oh, my gosh, look at this, look at this. But I never see a name attached to it, and that name also, attached to an indictment.

And I'm sorry. But on the year anniversary, I'm -- I'm going to start coming after Pam Bondi and the DOJ. Because enough is enough. How much time do you need? There's obvious problems here. On multiple fronts. Not just this. And I am really happy to see the DOJ and everybody else, come after, for instance, everybody who was guilty in Minnesota. I want to see jail time. You've taken a billion dollars of the taxpayer's money, and you have just given it away. And in many cases, to terrorists! You've taken literally food out of the mouth of children. You have taken money that was supposed to go for kids with autism. And you've sent it over to Somalia, to Al-Shabaab.

I don't know. I think some people should go to jail.

And I am not happy, if it's just the people who are at the low end.

I want to see the names that excused it, that covered it up. Because you don't get away with a billion dollar heist. And then this is just one. This is just one. You don't get away with these, without protection high above.

Okay?

So let me go back to what the GAO found here. This is not Minnesota. This is another case, okay?

This is Obamacare. Every fake identity submitted in 2024 was approved. Eighteen out of 20 fake people were still getting subsidized coverage the following year. So they got coverage the first year. They still were getting coverage the next year. One Social Security number, just one, was used for the equivalent of 71 years of coverage in one single year.

So they've got coverage that you -- it would take you 71 years to be able to amass. They got it in one year. That's one Social Security number. 66,000 Social Security numbers received subsidies, didn't match a single living person. 66,000.

58,000 matched Social Security death records. So 66,000 didn't exist. 58,000 did exist. But they weren't out dead, God rest their souls. They didn't need health insurance. Okay. Know

There's upwards of 6 million people who aren't actually within the income category that they're claiming credits as if they were in that income category. Yeah. I -- I don't make enough money, so I should get this.

Oh, really? Except, you do make that amount of money. In certain states, there are three to four times as many people enrolled in 100 to 150 percent of the poverty rate in those $0 plans. There's three to four times as many people enrolled in those states that actually exist in those states.
Three to four times. How do you make that error?

How's this happen?

So these COVID credits have just produced upward of 27 to $30 billion in fraud. This is just in Obamacare. That's it! Oh. But this is going to reduce -- this is going to reduce your payments.

No. It didn't. In fact, now it's just pushing us deeper and deeper into debt. Just in a deeper way than we project. This is not about health care. This is about national survival or national suicide. Which do you choose?

This is about a government program that is so unbelievably bloated. So politically insulated. That they become impossible to distinguish fraud from function.

Hmm.

But maybe that's the point.

That possible?

Are Tax-Funded "Savings Accounts" for Babies a SLIPPERY SLOPE We Need to Avoid?

Glenn Beck breaks down the newly proposed “Trump Accounts” and explains why this seemingly good idea hides a dangerous flaw that America has seen before. Drawing parallels to Thomas Paine’s rejected 1797 proposal and the Founders’ refusal to endorse redistribution, Glenn warns that once a federal entitlement is created, it never stops expanding, especially once future administrations take control. He argues that this is a line the Right cannot cross without paying a heavy price in the future. Is America about to open a door it can’t close...

Transcript

Below is a rush transcript that may contain errors

GLENN: I want to talk about the Trump, you know, savings account or what is that called. Savings. Trump accounts. I -- I want to talk to somebody. And so they're -- they're lining up today, hopefully for the show today. They're lining up the person that actually was the designer of these Trump accounts.

And I want to -- I want to ask him about, what's the difference between this and Thomas Paine?

You know, Thomas Paine. Do you know what it was called? When he -- he suggested it in 1797 and it was basically a Trump account. When you turned -- and, I think, let me look at this here.

Was it 1521? I can't remember.
Yeah, at age 21, for a start-in life, you got 15 pounds. That's about $3,000 today.

Then you get 10 pounds per year after 50, for a retirement.

The problem was, the Founders, they rejected this -- just, right wholesale. Just nope!
It didn't get very far. And that's because they were like, no, you're raising taxes. On, what? Inheritance.

If you had money, they wanted to add a 10 percent tax to what you were going to pass to your children. So then that would go to others. And they were like, that's redistribution of wealth. We have no right to do that. No right to do that.

At all. So, no. We're not doing it. But you know what they called it?

You know what Thomas Paine called it? You want to talk about things just repeating over and over and over again.

He called it agrarian justice. It was social justice.

It was farm justice. Land justice.

Isn't that incredible?

STU: Yeah. The whole thing makes me very nervous.

I have to be honest with you.

You go back, obviously to the historical basis of it.

It doesn't seem. Like, a founder liked it.

It's not without any bases in our history.

GLENN: Thomas Paine was not a founder.

No. No. No.

It's very -- and I learned this.

It's actually a tight group. To be a Founder, you had to be one of them that signed the Declaration of Independence, or helped write it.

And also, the Constitution!

So to be a Founder, you had to be involved in one of those two moments. And he wasn't.

He was very important.

STU: Okay.

GLENN: But he was not a Founder.

STU: I do think of him in that category.

As an influence. But not maybe technically accurate.

GLENN: Influence. Okay.

STU: I think about the modern consequences of it as well.

Because, yeah. Sure, we can say it's a thousand dollars now. What happens when God, Gavin Newsom gets control of this program. What happens when, you know, some leftist, they're going to -- every Congress is going to have a new argument about how they want to expand that accounts. Not thousands. It's 3500. It's 6200. It's 8500. It will continue to go up, year after year after year after year. And it will be almost impossible to oppose.

GLENN: So here's where it did pass. It passed in the 1860s. Something like his agrarian justice passed. But it was called the homestead act.

And that was different because we wanted to settle the West. We had all of this land. We wanted to settle. And so we would give you the land. But you had to work and improve the land.

So the government. The country got something out of it. We had all this land, you can go settle it.

You can have a plot of land. However many acres. But you have to do something with it. You have to improve the land, because that will improve everybody ever seen lot in life. Okay?

The next thing that we did that was like this, was GI Bill.

But if you were in war, you got education. You did something for that. You weren't just born.

That's the problem with these things.

You can't just say no. Because then it becomes a right. And rights continue to grow and grow and grow. Rights are given by God. You don't have a right to this.

STU: Is there a reason -- there's a reason why the left keeps saying health care is a right. Right?

GLENN: Yeah, exactly right.

STU: Because once people are convinced of that, they can grow it to any level -- and have any level of control over you and your money.

GLENN: Yep. Yep.

STU: But there is a movement on the right, that is relatively defined at this point. I'm curious to see where Mike Lee is on the accounts. Senator Mike Lee from Utah, at times, talks about certain tax breaks, making for families and trying to improve those. And his -- the opinion there. And I think this is a growing movement on the right. Which is, we need to take steps through the government, to encourage the nuclear family.

To encourage things we think are good. Right?

The government should step in and work toward goals, that are -- that we believe are good. Rather than just letting the free market kind of run itself. And that's been a debate on the right obviously. That's been going on for the past few years. Do you happen to know where Mike Lee is on that?

GLENN: I just texted him. I'll see if he texted me back there.

STU: I was going to Google it. I'll just text him. That's much better.

GLENN: I guess I could Google.

STU: Yeah, no.

GLENN: He's probably like, why don't you just Google it?

STU: That --

GLENN: It will be easier to have you write it to me.

STU: It is an interesting thought. Because I think the motivation here by Trump is -- is good, right?

He's trying to say, hey, kids, get a positive start in life.

GLENN: No.

STU: Obviously savings is good. Sometimes parents start off on the wrong foot, they're not able to save for their kids. I get the motivation being good. Obviously, we could see how this spirals out of control. It's not the way the government is supposed to run in my view. The concern level for me on these is massively high.

GLENN: And rightfully so. Because you're absolutely right. What it starts as is not necessarily what it's going to end as.
And what other doors open up because of this.

And that's -- that's my biggest concern -- so he says I haven't spoken about them.

STU: Yeah.

GLENN: But between you and me. So I'm not going to tell you. Between you and me.

STU: I was going to say, please just don't just read this text cold.

GLENN: No. When we get into the break, I'll write it back. With what can I say about your opinion?

STU: Yeah. That's interesting.

GLENN: It's the interesting. What I'm reading from him is actually interesting.

STU: Tilt that screen.

GLENN: Yeah. Thank you. Thank you.

But, anyway, yeah.

I mean, the -- the idea is noble. And it is good.

It's -- it's honestly.

It's -- it's a little like getting rid of the filibuster.

If you return the filibuster back to what it was, before the progressives destroyed it. So you had to stand up, and you had to make your case.

And as long as you could stand there, you can make your case, and you can stop things. But the progressives got rid of all that. Okay?

Now, you don't even have to stand there.

Just vote on a filibuster.

Yeah. I don't even know. But if you want to return it to the way it was. Which was nothing, but a break. It was not a stop.

It was a break.

So you could -- you could slow the system down, so people could go, wait a minute. Wait a minute. Wait a minute.

I disagree with this. You know, let's -- let's rally the people. And let's rethink this.

That's good.

But to get rid of it, it might be good for us right now. I can guarantee you, it will be very bad for us in the future.

Because you're not going to have control of the House and the Senate.

You're just not. And when they have it, I mean, that's what they wanted to do. And we were against it. And we were against it because we know what they would have done with it. Well, you're going to have it. And then, what?

And then when you lose it, what do you think they're going to do with it?

You just can't cross these lines. Because it -- it will come back to roost with you. And you won't like it. This is why -- this is -- we say this all the time.

You can't -- the Constitution cuts both ways. You know it's Constitutional -- you know, when you look at something and go, oh, I really want that to happen, but it's not constitutional. Okay.

Then we don't do it. Because the Constitution will slap you in the face sometimes. And be your best friend the other time. It cuts both ways. It doesn't cut the way you always want it to.

That's the problem. People try to make the Constitution. And our system into something that always serves us.

Well, it doesn't.

It will serve the other side. It will serf the purpose that is across to your purpose every once in a while.

But it's steadfast.

It's always based on something real, and eternal. Not your emotions. Not what you want to happen. But what is the best system of fairness man has ever devised. And once you start getting into the mix of that. You are going to screw everything up.

And that is why our country is in the mess it's in.

STU: I think, Glenn, too. When you break the seal for a thing like Trump accounts. You just wind up with all.

Medicare is a good example of this to me.

Medicare is this program. Obviously, even though a Democrat started it. Like, in theory, outside of their behind the scenes motivation of wanting to expand the government and all of that.
Of course, it's a good motivation for health care for seniors. Right? Of course.

GLENN: Yes. Yes.

STU: And also, I will say this, you know, when Medicare Part D comes out.

Which is the medicine, prescription drugs.

And that was a massive expansion of Medicare. That happened under a Republican.

And while I don't want that massive expansion, once you have Medicare, how is there not a Medicare part D? How is there not a prescription drug part of it?

GLENN: So that is my case, and we're seeing it now. Once you have Obamacare. Once you have universal.

Then you have the right to tell people. You must tell people, you can't have that food!

You can't have it. Because it's costing all of us money.

Your health is now -- it now involves all of us.

So now, how do you have that? It's just this horrible slope, that once you start going down. It's logical. You just to have logically think it all the way through. And not say, that will never happen.

Because it always does.

PREVIEW: George AI tells me the ONLY way to SAVE America

Glenn Beck previews his upcoming interview with George AI, an artificial intelligence he's creating for The Torch using ONLY writings from the founding era. And George has some incredible advice for how to save America ...

Transcript

Below is a rush transcript that may contain errors

GLENN: Welcome to the Glenn Beck Program. I was at Mar-a-Lago last night. I've been trying to help raise funds for several organizations. I've been speaking at several fundraisers at Mar-a-Lago over the last couple of weeks. And it's -- it's an amazing thing to see how many people are just deeply, deeply engaged in saving our nation. And, you know -- you know, our -- our life. Our -- our fortune, and our sacred honor, comes to -- comes to mind.

The denegation of people. Last night, I was there, for the American Journey Experience. Which is an offshoot of Mercury One.

It's our history section. We announce that we are building a museum. A brick and mortar museum. We begin early next year.

And we had some really exciting things to say about that. We'll give you updates on that, as it goes. But we would love to have -- right now, you can come into a very small museum. I think we have -- I don't know. Maybe 10,000 square feet. I think our vault is 5,000 square feet. And, you know, we invite people in to see some of the things.

It's really by invitation only. Or if you call Mercury One, you can get in. But we will open up the museum. And it's not just a museum, it's also the teaching center.

So we were talking about that last night, and last night, I introduced for the first time, George AI. The interaction that I had with AI. Now, remember, this is proprietary technology. And information.

This is based on the library, that we have. Which is the third largest collection of founding documents in the world.

Only behind the national archives, and the library of Congress.

And it's all original sources. So it's all the writings of the Founders. All of the -- all of the writings that influence them. That we know, from their writing, they read this. Or they were basing these things on these different items.

It's the Federalist papers. It's all of the documents. It's all of their letters to each other. It's their personal writings.

It's the Bible. It's Blackstone's law. It's all of the things that they had access to that influenced them.

In a positive way, to build America. And we have George, which is the librarian.

And George is going to be a -- a system that will be able to give you answers to things.

And show you the actual documents.

But will be able to speak to you, in your own language. If you try to read the Founders now, it's so hard!

Because they were so smart! They're using words, like, I don't even know what that means.

And when you read the Founders, you usually to have read it with a dictionary, side by side.

It's difficult. And their language is so formal.

So it's hard for us to relate to them. But all of the knowledge, this deep, deep knowledge is there from these guys.

Ritually, they wrote.

I'm trying to remember, is it George Washington?

One of them wrote at a 70th grade level.

Seventieth grade. You know, and so they're just way advanced. Way advanced. We put all of this information into our own system. This is an AI system built by me and my team.

And it has pretty much like, if you will, an electric fence around it. It cannot go and pull information from the outside. And mix it, with the information from the inside. So it can go and we can import things and say, hey. I want you to look at this bill, and tell me, is this bill even constitutional?

What would the Founders even say about this bill?

And it will look at that bill, and then it will go through all of their, you know, discussions and everything else. Everything that is in that system, memorized from start to finish. Which starts hallucinations. And it will analyze that bill. Or it will analyze that story.

Or you can say, hey. I want my kids to understand the Bill of Rights.

In George AI, right now, is I don't even know how many thousands of sermons there are, from the pulpit, where the churches where these guys attended.

Because almost everything from the declaration and Bill of Rights came from the pulpits.

And it's amazing, when you read some of these sermons that these guys gave.

It will be on, you know, the right to life, liberty, and property.

I mean, that will be the sermon.

And today, everybody will be like, oh, I can't say that from the pulpit.

We have all these sermons that our laws were based on. These whys were based on.

And so you can ask him anything.

And so when you sit down, for the very time, and you're going to talk to George Washington or a reasonable facsimile of him, when you ask him -- my question was, we fed in all the conditions of what's happening in America today. And I wanted to have a conversation. And here's a bit of the very first conversation with George AI. Listen.

VOICE: George, we have programmed a lot of information and given you a lot of information on what's going on in today's America. Based on your writing and the writings of the rest of the Founders, what do you feel like is the biggest problem or where we should start to fix things?

VOICE: If I may speak plainly, my countrymen, the danger -- the greatest danger in our republic lies not in foreign arms or.

GLENN: May I stop you for a second. Can you dumb it down just a little bit.

VOICE: Okay. I do have 29 points and they're all referenced to exactly what we said in the past.

VOICE: Just in today's language. Okay. Okay. I get it.

Let me speak to Americans. If I'm honest, America's biggest problem isn't political or economic. It's all moral. You've drifted from the virtues that make liberty possible in the first place. Freedom. To be free, you have to discipline. You have to have faith. You have to have character.

And if you don't have any of those things, laws -- laws can't stop anything. And I mean little government terms, either weak or oppressive.

You have grown skeptical of truth. You're reckless with debt. You're comfortable blaming instead of building anything. And this my time, we've understood that self-governance begins with self-control. Do you even recognize what self-control is?

Public virtue matters more than public opinion. You keep electing these people, expecting things to change, but you haven't changed. The fix is not going to be found in Washington, DC. It's going to be found in every home, every school, every heart.

You know, where are the citizens who value duty over comfort? Principle over popularity?

America was built to be a moral and self-governing nation. It's only that foundation that will still save her.
(music)

GLENN: Beginning January 5th, on the Torch. You can find information at Glenn Beck.com. You'll notice he started speaking. Because this is what you will see. At the beginning, I will have to do the interviews with him. Because compute power is so expensive.

And we'll ask you to write in. In fact, you can do it now. The Torch at GlennBeck.com.

What would you like to learn from the Founders. What would you like the children to learn from the Founders.

Would you like a posts from the Founders, on the Bill of Rights, or the Federalist papers. Or whatever.

What would you ask, if you could ask the Founders a question, what would you ask them.

At the beginning, because of compute power, we will be feeding those in. Examine then producing and rolling out every day, different podcasts or answers or whatever, from George AI. I -- I pray and I hope, and I'm -- and I'm -- I have pretty good advisers on what we're going to be able to do. And it depends on how many people are -- are using it. And -- and, you know, if we get people to help us in support.

Compute power, the cost of it will go down.

And we'll be able to afford bigger amounts of compute. And you'll be able to have a one-on-one conversation like I just did. Have a one-on-one conversation, and you'll notice at the beginning, he came out. Because this is the way. It's trained to give you the actual verbiage. And when he said, I have 29 points. Believe me, because we edited there. He went on.

And, oh, my gosh.

It gets tedious. But he has the 29 points. He can show you the documents. And it's all in his language. Or you can do what I did and say, just speak in language. Dumb this done. This needs to be understood by an 8-year-old.

And it will continue to adjust. You'll eventually, hopefully in the first year in 2026 for the 250th anniversary, you will be -- you will be able to say, I have a 15-minute commute, and I'm taking my kids to school every day. And it takes me 15 minutes to drive to solo.

And they need to understand, whatever it is.

They need to understand the civic responsibilities, they need to understand the
responsibility part of our rights.

Whatever it is. Can you develop a podcast? I need them to understand the Bill of Rights, so I would like to do it in the next ten days.

And it needs to be no longer each episode. Each episode needs to be no longer than 14 minutes. So you get into the car. And it's 14 minutes.

Eventually, when it's coming to you live, it will ask you questions. At the end, it will finish the podcast.

Then it will ask each member. You can say, I have an 8-year-old. 12-year-old.

And me. And I'm 40.

It will each of you questions, just to gauge, did you understand what was just taught?

And if you don't -- if -- if AI decides you don't really have it, you don't understand the real essence of this, it will then rejigger the next posts. So the next time you're in the car, going to and from school, it will adapt to you, to be able to go back and teach it more clearly.

And it will learn you. So it will learn, ah. The deficit is here. Or they're a more visual learner.

They're more of this kind of learner or whatever. They'll understand in stories or they understand just in facts, whatever. It will understand each member. And it will be able to teach them, directly, in their language.

The way they learn. I hope, this is my goal.

Because I feel like I -- I accomplish what I set out to accomplish with TheBlaze. I feel like I've accomplished that a few years ago, and I'm not good at treading water. And I feel like we accomplished our goal of my goal, at least, was to just open a door that others could walk through.
Open the door.

And show America and show talent, that you can start something yourself. You can do this on your own.

And you can present it in a way, that is just as credible and more -- just as, if not more powerful than any of the networks, and you don't have a boss breathing down your neck. You don't have people that you are having to answer to. You can speak your mind and tell the truth as you understand it and chart your own course. Nobody was doing that when I started TheBlaze.

I mean, the only people that had a spine. A backbone, if you will. A digital backbone, that could provide a live network kind of feed was Major League Baseball. They were the only ones. They were the first in to say, we can do a live sports coverage.

I partnered with Major League Baseball and say, can we use your spine? We want to do live news. We did. This is at a time when Netflix was still sending movies through the mail. Now, look at what's happened. So I think we've disrupted the news industry, we've disrupted all of that, destroyed it and reinvented it. This is my next phase of my life, probably the last chapter of my life. I want to do the same thing and disrupt education and the way we learn, and to show you an ethical way to use AI, one that you will not get lost into, it will always remain a tool in your hands, not the other way around.

FACT-CHECK: Is Tim Walz (politically) RETARDED?

Minnesota Governor Tim Walz is mad that President Trump called him “retarded”, and that now people are driving past his house and calling him a retard. Glenn looks at the cold, hard facts: Is Tim Walz actually retarded…at least politically?

Transcript

Below is a rush transcript that may contain errors

GLENN: You're going to be upset by this. You're going to be seriously upset by this, okay? And I'm going to use -- only because I have to. Only because I have to. And 99 percent of me wants to. Okay. I lied. One hundred and two percent of me wants to use the R-word in this particular case. Tim Walz. Tim Walz is upset because the President has called him retarded.

Now, I think he might be retarded. Now, not necessarily, you know, I don't know what his IQ is. Probably pretty low. But I don't know if he's down to 60. But had you seen PQ is definitely under 60. His political quotient is definitely under 60. You know, the guy, hmm, he's, you know, I put him in the category of -- what was his name? Dean. Howard Dean. Yeah! Remember that guy who walked out. We're going to go to Virginia and Kentucky and Minnesota. Yeah!

And you're like, no. Dude, you just lost. You're not going anywhere past here.

I am not sure that he is clinically retarded. But in the playground sense, he's definitely retarded. You know what I'm saying, Stu?
STU: Yeah. Like how, you know, kids used to say it back in the day. Like that --

GLENN: Yeah, the playground.

STU: That general. Certainly, that definition, it would apply to him, I assume.

GLENN: Right. And, remember, that's the same point to where, all of us heard from our mothers, sticks and stones can break your bones, but words will hurt you. Remember? Remember that one? Remember that -- when you were called retarded or whatever on the playground. And you would go home, they called me retarded. And your mom would look at you like, yeah, well, maybe you are.

Or she just immediately said to you, sticks and stones will breaking just remember that. Just remember that, son. Words can never hurt you.

It doesn't matter what they say about you. We don't say that anymore.

STU: It was pretty good advice. Especially with the internet in mind. I don't think that's what our parents thought of at that time.

But it's much, much worse. And much more people seem to be affected by the words are violence sort of thought process. Like, that is -- that is real these days.

GLENN: I -- I also have a problem with a guy who, you know, surrounds himself with people who call the president a Nazi. I don't know. Which one is worse? A Nazi or a retarded?

STU: Yeah. Nazis were really bad. That's actually a serious accusation.

Fascist is another one.

Pretty serious accusation.

GLENN: Yeah, or just weird.

STU: I was just about to say that. That is exactly the reason he was on the ticket is because he was name-calling other people, and calling them weird.

It was his only qualification outside of he's -- you know, massively inept and corrupt.

All the other things that would, of course, qualify him to be on a democratic ticket. Outside of that. The only reason he stood out from all the other loser Democrats. Is that he said the word weird on TV once.

And Kamala Harris, who has admitted that the reason that she made. Or at least the day she made that decision. She was, quote, unquote, overtired. Why would you point that out?

I don't understand. But that the only theoretical reason he was on the ticket was because he was calling people names. He called them weird.

Which was another school -- was another like school play ground, like insult back in the day.

You're weird.

GLENN: Yeah, weirdo.

STU: Yeah. Weirdo.

Yeah, that was the way it was.

And so he's able to enjoy the benefits of calling people childish names.

But when he gets called those names, it gets really scary for him.

GLENN: I know. Well, he hasn't listened to his mother. He thinks words can actually hurt him.

Now, Stu, do we know, does he agree, does he agree with the -- the state senator that says that Minnesota won't survive without Somalians?

Can we play this, please?

It's cut four.

VOICE: State Senator Zaynab Mohamed said these attacks will stop with Somalis, and their contributions can't easily be erased.

VOICE: We are in every industry. And Minnesota will not be able to survive, nor thrive without Somalis.

STU: Hmm. Really? Is that accurate?

That the -- the state of Minnesota cannot survive without the Somali community.

Now, my understanding was that they are relatively new to the state, which has survived for a very long time before their arrival.

I would also note, Glenn. And you might be able to help me with this one.

This one, we will get deep here. And I understand at times, the audience hears us get deep into science and mathematics.

GLENN: Oh, we're known for that. We're known.

STU: We're known.

And I understand sometimes it will be confusing. You're driving to work. Hearing all these numbers.

Maybe if you looked at them on a spreadsheet, you would be able to recognize what's going on.

When you're in your car, it's hard to internalize all of this.

I'm going to try to lay it out. Because I don't understand it. And maybe you do.

What we understand is about a billion dollars of fraud, not all of it from the Somali community. But the vast majority seemingly coming from the Somali community. And then the comeback to that was that Somali community pays about 67 million dollars in taxes, every year.

So can you do the math on this?

One of the numbers is a billion. And the other one is 67 million.

Which one do you think is more important?

Which one is higher. Do we need to get AI.

GLENN: Tim Walz. Tim Walz.

67 million.

STU: 67 million. Or a billion. That's the question. Which one is larger?

GLENN: Four.

You mean with four?

Four.

STU: Now, if you think about it, Glenn, the first number in both of those. Like 1 billion, the first number is a one.

67 million, the first number is a 6.

GLENN: Six is bigger than one!

STU: Right? Six is bigger than one. Six is bigger than one!

GLENN: That's what's going on here.

GLENN: I would say. I would say, there are 933 reasons to say, anyone who says that that math works out. Is retarded.

Okay? It doesn't work out. Now, look, even though, they generate $500 million every year.

Okay. All right. And then they give back out of that, their taxes. Out of that.

Which this itself, it doesn't make sense to me. $500 million in revenue is what they generate. But then they pay in taxes $67 million. But what we're missing here is the $1 billion of fraudulent money being taken from the taxpayer.

So the 500 million doesn't do anything.

Okay?

STU: Still smaller.

GLENN: Still going to the Somali community.

Half. Half.

Dare I say it. Half of the size of what they just -- yeah. Okay.

I don't know. Can Grok do that? That's like a ten-year problem.

Ten-year problem!

Anyway, you have half. That number doesn't even -- you have 1 billion that's been stolen. 67 million that has been paid in taxes. That leaves $933 million, that is a deficit.

That -- you remain -- $933 million in the hole. I think we can survive without that. You mean -- I mean, sure, we don't get your 500 million.

But that's -- that's okay. That's okay.

Because we would have a billion dollars, that you didn't take.

STU: Yeah. That's right. I think we would be ahead. And, by the way, that's if -- that's if we took every Somali and just lumped them into this, which is not.

I'm sure there are some Somalis that are, you know, part of that 500 million, that are not crooked.

STU: I'm sure.

GLENN: They can stay. They're fine.

STU: I'm certain of that. In fact, I would argue, those are the people likely paying the 67 million people in taxes.

The people who were stealing all the money. Weren't paying taxes on it, which is kind of the problem. In fact, all that money that came from the state was specifically designed so they don't have to pay taxes on it.

The programs were designed, of course, when you're talking about a low income person, right?

You're not going to charge them taxes on their autism treatment. Of course, those weren't really treating kids with autism. So the actual productive members of this society, were instead paying those taxes to fund the corrupt Somalis who were stealing all the money.

And, you know, again, we've made this point a million times. And I think it holds here. Maybe treat people like individuals, right?

Maybe don't -- don't -- people -- there are members of the Somali community, that I'm sure are very important to -- to the -- to the state. They probably are great. Probably great people in that community.

I can tell you, we know with these charges. That there were a lot of people that were not living up to that expectation. Those people should be punished.

We shouldn't hide from it. We shouldn't act as if this isn't a massive problem from this group people. Charge the people responsible for it. Stop acting like we need them to survive. We don't need criminals survive as a country or a state.

GLENN: Let me just -- I have to go back to Tim Walz being upset about the retarded thing.

Play cut two, please.

VOICE: This creates danger. And I'll tell you what, in my time on this, I had never seen this before. People driving by my house and using the R-word in front of people. This is shameful. And I have yet to see an elected official, a Republican-elected official say, that's right. It's shameful. He should not say it.

Look, I'm worried. We know how these things go. They starts with taunts. They turn to violence.

STU: Taunts! Founder of the taunts of weird.

GLENN: That's weird.

STU: Thinks that that taunt can lead to violence. That's so strange.

GLENN: Who is living in the world of, he's a fascist Nazi.

STU: Uh-huh.

GLENN: Okay. Now suddenly, and I've never seen this.

I've never seen anything like this, Stu.

Never seen anything like this. I'm in my house, and people are driving by my house, rolling down their windows, and just screaming "retard" out.

That's going to lead to violence. That's going to lead to violence.

STU: Violence.

GLENN: No. No. It's not nice. And it's wrong. Jesus wouldn't have done it. But I don't think Jesus had to put up with all these retards as politicians, quite honestly.

I mean, I can't -- I can't answer for that. I don't know.

STU: I --

GLENN: I'm not a Biblical scholar or scientist or mathematician.

STU: We've learned that. We can't even tell numbers apart.

GLENN: Yeah.

STU: But I will say, while you're right, it's obviously not -- I wouldn't tell my -- teach my children to behave that way.

GLENN: No. It is shameful. It's not right. It's not right.

STU: I will say, it's wrong to do. I will also say, it's objectively funny, picturing Tim Walz looking out his window and hearing people yell the R-word at him when he's going out to get his mail.

And people -- like, it's an objectively funny scenario.

GLENN: Every time. It is. It is. It is funny.

STU: It's bad. It's wrong that it's funny. But it's objectively funny.

GLENN: No, it's horrible.

STU: But it's objectively funny. There's no way -- there's no way to read it.

Look, I'm sure the left laughed, because -- think of what they did with J.D. Vance. They called him weird, right?

Because he ran, came up from a very poor upbringing. And rose to the levels of -- high levels of wealth and achievement and power.

They called that weird.

GLENN: Yeah. Yeah.

STU: That he loved his family.

And they -- they celebrated.

GLENN: We call that the American dream.

STU: Yeah. That used to be the American dream. Now it's weird. They, of course, yell this all the time.

They make the meme of him looking like you would say, potentially retarded would be the example of the meme they've created, to mock J.D. Vance.

They constantly mock him with this. But that doesn't lead to violence. Calling people Nazis don't lead to violence.

Despite the fact that we have seen the president of the United States, taking a bullet after all of this has happened. We saw a Charlie Kirk get assassinated at a stage. After people said that about him.

But it's the R-word being yelled at Tim Walz when he goes to get -- when he waddles out to get his mail.

That's the thing we're supposed to be concerned about?

No. No.

GLENN: I mean, I don't want to see this in real life. I don't want this to happen.

Because it is wrong. But I do want somebody to create an AI reproduction of just some kids driving by.

And he's in his fuzzy slippers getting newspaper in the morning.

And these kids, like in American graffiti, going, hey, retard.

I mean, I do kind of want to see that. I do. I do. Yeah. It's wrong. It's wrong of me.

All right.