tv Cavuto Coast to Coast FOX Business October 21, 2022 12:00pm-1:00pm EDT
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problem but not much of a problem and growing optimism and they might be getting ahead of themselves and the federal reserve might be less inclined to higher rates or hike them as much in the future. certainly after the november meeting. people are pouncing on rumor, i don't know if it's necessarily an accurate rumor and that among other factors are getting and we'll get into the details of that in a second. in the meantime, go to the white house and we'll find edward lawrence ch championing deficit reduction. >> yeah, the president is talking about under his presidency able to reduce the deficit. listen here. >> this record deficit reduction includes cost of my student loan plan and everything else we're paying for. the deficit is down 1.4 trillion this year even after accounting for 30 years of debt relief paid in advance. >> let's break that down, he came into office and the government was spending an
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enormous amount of money for the cares act for covid relief passed under the last administration and the president signed into law four more spending bills but each a smaller size and it looks like he cut the deficit when he reduced the amount of spending the government is doing. now according to the committee for responsible federal budget, we will still borrow $1.4 trillion. we still borrowed that last year. the messaging from the president is that he empathizes with americans about inflation, paying more and he needs more time and in fact the inflation has basically been going up since the president took office. >> i don't see the turning point coming any time soon but i do see the republicans stopping additional problems, additional spending and maybe even stopping some of the funding of the programs that were already passed. that's good news that we're going to stop the hemorrhaging. >> says americans are dealing with inflation and president going to the vacation home for this weekend. by our count he's been to delaware 50 times during the presidency and that's more
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than -- or getting to be about double what former president trump did going to his homes at this time in his presidency. neil.neil. neil: got that vacuum thing back again, don't they. >> it's back, yep. it just -- in fact, they just kicked it up about 15 minutes ago or so so they knew we were coming on. they said neil's on, boop, turn it on. neil: don't hang this on me young man, it's all on you. edward lawrence at the white house. go to kelly o grady in los angeles. the president might be crowing about positive developments on the deficit and what he thinks will be good news to come in the economy and inflation. when it comes to the guys with the money, they're worried about the world losing money and fast i guess; right, kelly. >> that's right, neil. you have business leaders pushing back on the rosie outlook and ceo of goldman sachs, jp morgan and chase.
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clays and in response to the question on twitter on how long the recession will last, he tweeted just probably till spring of 2024 and he's been sharing how bad it'll be and tesla and spacex in good positions and many other companies are not. and missing its delivery target with the earnings call and china is in a burst of a recession and europe as well and europe in decent health and feels the fed is raises interest rates more than they should so it's unsurprising that musk is reported by considering cutting twitter's head count by 75% if he does indeed close that deal. now that's something he hasn't been shy about. the fact that he thinks twitter is bloated when the platform even confirmed to fox business they were considering cutting staff by 25% prior to the
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takeover and if he thinks there's a recession and he needs to make this with a takeover for the company especially if you don't think the company is working right. neil: to be quite conservative about your business plans going forward. kelly, thank you for that. go to gary for all this. he's been following the developments and the concern of corporate america. gary, they're sending like you were sounding about a year ago and to a man or woman now, they're radiating concerns that going forward, things could get dicey. ironically on a day we're seeing stock surge and you often remind me, my friend, that could be short lived but what's going on with the mightiest on the planet saying things don't look good for the planet. >> i mightiest have to keep quiet and not scare and over the last few months is the pins
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being pulled on a lot of things whether it's inflation, whether it's housing, whether it's the stock market and the wealth affect in reverse. they finally had to speak up and talk about the obvious in spite of what you hear from certain people and, look, i have two worries that are sticking out like sore thumbs regardless what anybody says and savings rates are plunging and saving rate is skyrocketing and the consumer is a huge part of the economy and if that doesn't change, it's not doing well going forward and in the markets so you know, neil, the dow dropped 5600 points in two months, 3800 points in one month. this is one of the counter trend rallies and the fed obviously leaked news this morning that maybe they can slow down, i don't think anything happens by accident in washington dc. the last few days we were hearing fed heads talking about it and i think that was the leak today. so markets up and i believe
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we're in a counter trend rally and will go for a bit here. i'm not sure we've seen the worse. neil: so whether it's a leak from the fed, i do notice that the bedding in fed funds futures is people bet money on what the fed might or might not do and growing from the consensus around another three quarter point hike including three quarter point hike that seems baked into the cake for next month. what do you think of that whether it's a half point hike? >> i think it's going to be three quarters. my worry, the two year yield up at 4.5, the 10 years at 4.3. if they raise rates to 3.5 or 3.75, they're still behind and i worry about what that means. they had control of the bond market for a very long time taking rates down to zero and prints up to $9 trillion both them and everybody else around the globe and i don't think they have control anymore and they
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better be careful and if it's the easy money that cause add lot of inflation, if they go easy too quickly, i worry about a bigger spike in inflation. i can promise you this, the market's will not be able to take that and the economy will not want to take that. they're a walking quite the tight rope right now. neil: you know, janet yellen is weighing in with some of the debt news and inflation is not becoming embedded in the u.s. economy. that might be news to come inshrewding the ceos we were mentioning before. yourself included and says that some of the cost of production of chipping are coming down. u.s. on responsible path this would continue to decline in the debt. $1.5 trillion in the latest
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period is a theme that will pick up steam. in other words i guess by that she means deficits will continue coming down. do you see that? >> no, that's a stunning statement and debt coming down has everything to do with covid spending and i do believe we're going to be over $1 trillion again this year in deficits so i hate hearing that and wish they'd tell us like it is. we're $31 trillion in debt and higher interest rates means the cost of debt's going up and on the inflation front i have an e mail from one of my listeners saying they bought four tires for $900 and they were $500 two and a half years ago. if janet yellen doesn't think inflation is embedded, she needs to get out and start speaking to
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people and it's out there and in droves and i hope it comes down and fingers cross it comes down but to think it's not embedded, it is embedded and in a very big way and the worse it gets the worse it'll be. neil: i wonder, gary, if all the market needs to see it that we're through the worst of it. in other words you're quite right. inflation sticks and stays entrenched for quite awhile. if it's not as entrenched and increases not as big as prior ones that that's all they'll need. even this talk as you accurately pointed out, boeing stocks today on the notion that future rate hikes might not be as severe and still be moving up and maybe not as much as earlier thousand. thought. could be very, very wrong and misplaced leak and that's all it takes sometimes for stocks to go to the races. what do you think? >> well, you never really want to bet against the u.s. economy and the american people in business. we have 100 some odd years of history of being able to adjust of anything that's ever been
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thrown at us. so i can't argue that point. it's just the fact that if things have been getting worse by the day, interest rates have been going up by the day. a little -- finally a little pullback today from the highs so, yeah, i don't argue that point and again, i say this loudly, we have 100 plus years of history of adjusting to recessions, depressions, inflation, deflation and you name it. we were at all time highs a year ago so never bet long term against us. right now i just still think we're in the soup and have a lot to work out. it really is because i just think there's too much of them, too much of government, too much of central banks and not enough of the free markets and the businesses of this country. i have to add in raising taxes on corporations coming out of pandemic. i think that's a mistake that's hurting also. when fedex talks, i listen. when target talks, i listen. when wal-mart talks, i listen.
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i'm not so sure the powers that be are. neil: wild stuff, gary, thank you very, very much. gary on all that. i want to come back and a bit of a game show riddle to solve. think quick, what do richard nixon and boris johnson have in common. let me give you a hint here. richard nixon came back after losing the presidency in 1960 against all odds. boris johnson could be looking to do the same after this. ♪
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they're down about 35 points in the polls so what do you think they do? they hold on and see what can happen right now and find a successor to liz truss who after 44 days is out of there. the guy she succeeded looks like he wants to get back in there. i'm talking of course about boris johnson and alex hogan reporting all of it from london. alex. >> reporter: hi, neil, the uk will have a new prime minister as early as next week and the big question of course is who will be the first person to clinch that spot. we have heard lately now of the news of the first person who's officially throwing their name in the ring and it's penny mordon. she's officially in the race to potentially become the next prime minister and formally served as defense secretary and she also gathered a lot of support in the tory party recent election. another likely candidate is the former finance minister and lost to liz truss in the later
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contest. former prime minister boris johnson ousted recently about the allegations against a seen yore member of his allegations ands downing street parties held during the height of the pandemic, but he potentially could make his way back there if he gets enough votes but still after just six weeks for the mystery. only one that comes close to a tenure this short is george tanning who died on the job. the uk is left with the highest inflation since 1982 but since her resignation, announcement the british pound has gone up. so far who replaces her in terms of what comes next. contenders need the backing of 100 of the 357 conservative party lawmakers. if only one candidate hits that mark, they could become the next
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prime minister as early as monday but if multiple candidates get at least 100 party members supporting them, there'll be an online vote, which will take place on friday, a week from today so, neil, the next few days are crucial. there'll be likely a lot of new gaucheuating and a lot -- negotiating and conversations in the days ahead. neil. neil: the passing of queen elizabeth and coming and departure of prime minister like tissue paper here. can britain deal with much more change here so rapidly? >> it's so much change. >> reporter: if you think about the fact that people here have lost -- they've seen two different monarchs and their third prime minister. all of that change taking place just within four months and it's so much instability not to even mention the economic impacts so it's definitely a lot and it's a conversation that everyone is having here every single day about how much news and how much change they're seeing despite the fact that they don't want to be seeing this kind of news in
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the last few months. neil: yeah, they're getting it in droves. alex, thank you very much. nigel, the former brexit party leader with us now. nigel, looks like everyone will be able to take a turn to be prime minister at the rate we're going. i could be talking to the next prime minister now. what do you think of what's happening and who's in and who's not? >> it's an absolute shambles. that's the word on everybody's lips and embarrassment and behavior of many of the mps has been a complete and utter disgrace. they're turning us into a laughing stock all around the world. liz truss, she lasted 44 days and chancellor didn't even last that long. but you know something, the first time since margaret thatcher, they were trying to reduce the size of estate, trying to reduce taxation, trying to help small or medium size companies and not the big
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global corporates and for their sins, the market punished them, their own party didn't stand behind them, we saw the imf, biden administration, the german chancellor, we saw the globalists basically put jeremy hunt into the position of chancellor and immediately seized control of the country and he's announced there'll be no tax cuts indeed and taxes on business will go up by 30% on april 1 so we now have frankly a globalist coup that's happened in the country and the conservative party now represents big stake, high tax, net zero and open door immigration. we do not have a condition servetive partim neil: you do seem like labor and i'm wondering what happened. i mean did liz truss give up the fight too soon? i mean, some said adding this tax cut for the wealthy doomed her. i don't know you're closer to this than i am.
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the guy she put in charge is in fact calling for tax hikes and that is a labor kind of thing to do. >> it was 40p in the pound all through prior years and yet there is at a global level we saw during the pandemic a desire is of government to get bigger and taxes never to go down. so you see, even if boris johnson does win the crown back and i -- at the moment i think my money would be just about on him doing it. but even if boris gets back, if
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boris was elected as a conservative on the back of the brexit vote and got the majority because the country believe they'd get conservative policies and boris governed as a liberal and i frankly see no hope for the next decade and more from our conservative party believing in free mar markets and believig it's all enterprise and business. i've reached the view that this conservative party, despite being around for 200 years and being very successful, it needs to be replaced by something that is genuine, sincere and not globalist. neil: boris johnson is the odds on favorite for the time being maybe because he's the most recognized name and where's your next maggie thatcher and your ronald reagan? where?
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>> the count to fall and even if it was badly delivered and at least in principle, we were trying to turn around towards the right direction. there's an absolute dare for talent and boris has one thing going for him and has talent and amusing and people like a politician that's got a bit of personality in terms of policy he's closer of doing a liberal or a bream and he's a conservetist. new center right and political movement in britain and this week i've been bombarded with calls of people saying nigel, come back and save us. all well and good. i might have led the campaign to get us a referendum for brexit, but i'm going to need other senior figures to reach the same cross-exaconclusion -z as me toe proper conservative. neil: sounds like you have your doubts.
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>> i travel opportunistic mystically. i don't understand estimate the magnitude of the task or the power that now exists within the global financial and political community and they really have shown their influence in britain over the last week. neil: nigel, fascinating stuff. former conservative party leader. getting back to your roots and many would like to make him other things as well and britain is a mess right now and you'll have the release of the latest season of the crown, where they say some embarrassing things about the royal family. they can't get out of their own way there. stay with us.
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that an election year would. this is proving a very different case though, particularly in states that have early voting going on like the pete state in georgia where they're talking about record numbers for a midterm, for any election year. mark meredith following all of that. >> there's so many people with this midterm elections on both sides of the aisle and georgians appear to be showing up to the polls in record numbers and surging despite claims by some georgia democrats that the new laws would suppress voter turnout and latest numbers from the georgia secretary of states office and shows 573,000 ballots have already been cast. -no long lines of delays and stems following the 2020 election and georgia reshaped voting laws among the new measures enacted and a ban on food and drinks being handed out at the polls and proof of id to vote by mail and new limits on the number of ballot drop boxes
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spread across the state. she's facing an avalanche on how the state could be suppressing vote if there's record turnout. >> the issue i take is we shouldn't have to work this hard to cast a ballot or work to hard to navigate a system designed for your use and under brian kemp and brian [inaudible] they made it more difficult to cast your ballot. >> abrams is trailing incumbent brian kemp and kemp is trying to make this about other things like the economy saying the voting laws are not restrictive and we've seen him on the campaign trail over the last several days and talked about trying to win over georgia voters here on fox. >> i have a record to run on now and georgians know me and last
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election they did not and abrams had the national media and tons of money and 90% of money is coming from out of the state. >> she's going to have a big name coming from out of state next week, former president obama is expected to hold an event for abrams in atlanta and no sign of president biden making a last minute trip down south to campaign for her and, neil, her campaign trying to get momentum back especially with some of the voting numbers already. neil. neil: thank you, mark meredith. to pennsylvania and crime is a very big issue. and particularly in phila philadelphia, there'll be district attorney larry tactorred by republicans for not doing enough. to halt that crime and deal with that crime or even to acknowledge the crime. >> his more lenient policies not to blame for the record crime
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surge and he said today in a defiant press conference that republicans are leagued an illegal and a politically motivated effort to impeach him. >> they've done nothing corrupt or illegal and they want to erase philadelphia's votes straight up. they want impeach our ideas. >> reporter: since crassner took office in 2017, murders are up hitting an all time record since 2021. republicans and democrats voted to hold crassner in contempt for not cooperating with the bipartisan impeachment committee and this as we're now learning a convicted murder released thanks to crassner is now with thed again for murder. police are searching for 32-year-old jameer harris after he allegedly drove two gunmen who shot and killed a
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52-year-old man in the back of the head last month. in 2012, harris was convicted of murder and exonerated thanks to krasner's conviction integrity unit and today krasner defended that unit saying new everyday showed harris was "likely innocent of the 2012 crime". but the judge in the 2012 case said he was not confident in krasner's office handling of the case and ruling. this is all in focus because crime is at the center of this senate race. you have dr. oz already this morning connecting krasner to his opponent john fetterman pointing out that fetterman praised and endorsed krasner and call that had investigative new conviction unit started by krasner ground breaking. neil. neil: thank you for that in philadelphia. i want to go to my friend jenna. she knows all too well about the crime epidemic and the
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politician's response to that. he joins us now. whether we're talking chicago or new york or philadelphia, it's kind of the same script we hear out of the politicians or da's involved. what do you make of this? >> i think the american people is speaking loud and clear that the soft on crime experiment must come to an end. i'm hopeful they're going to impeach the soft on crime da when you look at numbers we saw from my colleague with this bipartisan impeachment committee, murders are up. up in ph philadelphia but not only that, businesses are leading left and -- leaving left and right and go look at wall street journal opinion piece and talk about major convenient stores closing down shop there. they talk about starbucks leaving and ending businesses there. this is hurting the people that live there, the working class people. people like fetterman and
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district attorney claire they came about, they're being hurt by the poll that she is have been pushed by these group of progressive phones and just a small note here, the city recorded 9,000 -- over 9,000 retail thefts in 2021 but charges were only filed in about 1,000 of those cases. if you look at from when he took office from retail thefts, it dropped by 70% from 2017 in terms of arrests and 2017 to 2021. this isn't where we should be as a country. you're encouraging criminals to commit more crime and then people like me and my family have to pay the price for your delusion. this experiment must come to an end and till people like him are impeached, kim fox in chicago are impeapeached and gascon in s angeles, there's a rise in crime across the country and people need -- they're speaking up and elected officials need to do what they need to do to remove them from office. neil: but they're not being removed.
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gascon survived such an attempt. i want to get your thoughts on that and you hear again and again that those who criticized crime are deemed republicans who are making racist rant. now, that's interesting perspective that i want to get your reaction to as well as mayor eric adams in new york and it's a perception issue. you have six acts of crime on the people per day and it's all perception and it's not real. what do you think of that? >> i would say for those who say somehow a dog whistle or races, that's a bigoted ignorant statement and people are feeling the real pain of their family members ending up dead and real pain of family members being raped and stabbed and being robbed like this is a legitimate situation. 77% of the country feel it's a major issue and a top issue that voters will be voting on in the midterm election and are all
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these people delusional and trying to gaslight up all saying our families aren't being impacted by the dangerous policies they pushed after george floyd was killed? no, you need -- they need to stop it, neil, as long as they continue to do t voters will go the other way because they're not recognizing the issues that are impacting millions of people. people are in fear for their lives and those that have money and able to move out of places likeny city or california, they're moving. but poor people are being left behind because they don't have the resources. so this is one of the most bizarre things i think i've seen politicians do in a long time gaslight so much to make people believe that the issue doesn't exist when they may have their purse stolen that same day. neil: i told you this many times my friend but you took a horrible situation with the needless death of your brother and trancelated it into ways people can understand --
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translated it into ways people can understand. this is personal and we've got to realize how bad this has gotten. you do your brother proud, my friend, and you wake us up in the process. >> and i thank you so much and i want to keep the language consist, he was murdered on june been. he was not the target, he wasn't involved in anything. but so many families, neil, across the country are experiencing that same sentiment and crying every day and calling people like the district attorney of philadelphia and kim fox, begging, asking, pleading for help. they're calls are being ignored, and we're going to continue to shed a light every time i get a opportunity to use this platform nor any other i have access touchdown pass shed light as to what millions of families are experiencing across the country, neil. neil: just let me know thefection time you're -- the next time you're in washington and want someone to video tape what you're doing with politicians hitting elevators, i'll run away.
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neil: all right, she is -- taylor swift thinks she can sing and apparently breaking all sorts of records with people trying to stream her music. anyway, adel is not the news item today but this one is trying to obviously steal her thunder. susan lee is here. susan: social it's not mutually exclusive and they're both very talented. taylor swift dropped tenth studio album midnight at midnight and she's so popular she crashed spotify. we stream songs these days and on oturu cd players, neil.
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neil: thank you. susan: shows how popular she is. that's all. some of the lyrics in her songs is causing a lot of waves but we know that craters -- content creators obviously still dominate. neil: is she trying to steal adel's dark side here, do you think? susan: wow, i don't know how adel crept into this conversation and people have been going through taylor's songs and wondering who it's targeted at. neil: that's the big debate. susan: some thinking karma targeted at kim and kanye and karma creeps up and number one song is anti hero and the lyrics are fantastic and a lot of good collaboration withs her boyfriend and zoe kravitz. neil: got to love good music. what's the magic about the
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3:00 a.m. log. what was that all about? susan: that was just unexpected and you want a surprise like beyonce does where she just drops new albums out of nowhere without any announcements. neil: goldman sachs releasing economic bond market at 2 in the morning. susan: apple devices out of nowhere on a wednesday afternoon or morning. but that's kind of the surprise element. now, in terms of sales and selling, you know, we've had some pretty good albums in the last year or so, drake, kanye, and this is taylor's tenth studio album. as you said, no las vegas residency, which adel has. neil: or months and months of sold out shows. susan: this plays into -- can i get into business again? it plays into apple's earnings next week and apple music, streaming services make up about 25% of their sales. but also drives social media. neil: is that the popular venue for this? susan: spotify was crashed but usually spotify, pandora, apple
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music type of release. however -- neil: these were all music services you mentioned? susan: they're all music services, yes. talk about social media because there's social media buzz with the album releases and call them drops these days. yes, snap though, i think, dragging the entire sector down along with them because their earnings were not great. neil: what happened with them? weren't they the venue of choice for young people? susan: 3.5 year low for the stock and the talent square does migrate. neil: what did they migrate to? susan: tiktok is eating into snap more because of the demographic they target. neil: aren't they spying on everyone? susan: according to to some analysis but snap, did you know they ipoed at $17 and now forecasting $0, zero revenue growth for this autumn. what does that mean for meta reporting next week? meta owning facebook and meta down about 70% so for this year
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and -- neil: meta talking about big layoff. susan: yeah, they're cutting the shuttle bus service now in silicon valley but also just how much more can they spend on oculus in the meta verse and goggles. i think meta is trading -- neil: a $1500 pair? susan: that's right for the new quest pro. neil: what do you get? see taylor swift in those? susan: virtually yes but debting you twitter may not be worth $44 billion if a company like snap likes more users and 358 million daily actives and twitter only has $200 million and twitter is not worth $44 billion that busing is paying for it. neil: the obvious question is, you have free tickets but you only can go to one: taylor swift, adel, where do you go? susan: that's a live concert event so obviously you have to go with the vocalist and that would be adel.
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however, taylor is very talented, she writes her own music. only artist to win three mtv video of the year awards. neil: hello. adel. susan: i'm not choosing between both. i love them both. it's not mutually exclusive to me. i would go to both. neil: whatever. okay. that is such a weaselly answer. susan: beautifully talented young women. neil: she's trying to get out of these answers. i'll get there. some magic with susan because that 550 points indeed and some calling it the taylor swift rally and i don't think so after this.
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>> this is a time -- not the time to sit on record profits and i'm calling on the industry to refine more oil into gasoline and bring down gas prices. do it now. calling all companies to pass the savings onto consumers and gas prices at the pump should being lower. you should not be using your profits to buy back stock or
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dividends. not now. neil: all right. pointing the finger finger at everyone but himself for what's been happening on the energy front. this at a time when energy prices have been coming down a little bit and gas prices coming down a bit and he takes a bow for that. that's human nature, i guess. president haves done that in the past and seemed to his critics to be doing on steroids and daniel turner is the president of the future and daniel, doesn't take long for prices to go up and it's the energy guide doing it even through hurricane ian putting out -- throwing out in the mid and will better not gouge as if that was happening but it is what it is. the back and forth. what do you think is this >> i don't between now and the elections. that's for certain. if you're the biden administration, if you're democrats in general in the election cycle, find someone to point the finger at and can't run on your record or on the economy and run on crime or the
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boarder and run on something so they're going to run on everyone else is the boogie man and they're trying to harm you. but, look, we just need to take biden at his word from running for office and we campaign to talk about this and he said we'll shut down more and no space to shut down and operate and no more leasing and filing for gas and he doesn't want the political fallout and this is what we knew would happen. neil: it's funny because he has not hidden that and whether that is what's going on here and what prices did go to what they did and now the irony might be the up tick notwithstanding and that oil price starts declining because of the whole globe is slowing and goldman sachs and jp morgan chase and elon musk saying we're about to hit some rough winds here.
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that will lower the prices but not for the reasons you like to see. >> we saw that in the summer and we normally have that going and even lower than have the pandemic they couldn't afford it and it did build up a little bit because of the incredibly high prices and it goes to show that you know this, your audience knows this, there is so many factors at play, which determine oil prices. it is not as cut and dry as biden wants it to sound. he keeps making the comments i'm calling on the industry to produce more and refine more. we're refining at capacity, can we build more refineries? no. the biden administration stopped a refinery in the gulf coast from expanding just a couple weeks ago and they cited climate change as a reason. neil: yeah, it is what it is.
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dan, thank you very much, dan turner. just a footnote and democratic presidents have fitted before and barack obama admitted the computer rollout of the healthcare act and apologized to it and bill clinton from the '94 midterms and pivoted and changed policies to his regret and his regrets he said. ..
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