always a pleasure to see you. thank you so much. >> thank you. liz: here we go, it is not so much we're seeing a solid rally in the dow, nasdaq, s&p and yes the russell has turned positive. it's more that the bond yields are falling. kenny polcari, you've been watching it all, that might be the story tomorrow? >> it is going to be the story tomorrow. look i love the fact the market is rallying. i'm still a little bit cautious. you want a pick in the consumer sector? kimberly clashing, they make diapers for both kids and adults. you should keep your focus in the consumer space scoot volatility index, by the way had the bigger swing here t had been lower by 3%. now it is down seven%, below 17. great to have you kenny. here we go. [closing bell rings] dow closing up 209 points. tomorrow, superstar lineup, blackrock's rick reader, attorney robert shapiro and

aflac ceo dan amos. ♪. larry: hello folks, welcome to "kudlow," i'm larry kudlow. all right, two big stories we're watching right now. israel in its fourth week of war against the barbaric hamas-hezbollah-iranian terrorists and jay powell of the federal reserve leaves interest rates unchanged for the second meeting in a row. our own alex hogan and edward lawrence are standing by with the details for both stories. first up let's go to alex hogan live in tel aviv, israel. alex, welcome, what can you tell us? >> reporter: hi, larry, well tonight the israeli government is raising the debt toll solemnly saying 16 soldiers have been killed in the last day alone. meanwhile the idf continues to press forward in northern gaza, really targeting specifically as many munitions hubs and tunnels

as possible. the idf laying out some weapons and vehicles taken from hamas militants on october 7th. >> the numbers were surprising. >> reporter: machine guns, rpgs, explosives, these are weapons that the idf expected to be used on soldiers, never civilians. >> this was hard to see. >> reporter: but it gives a look at what the idf expects in gaza. >> wee believe this is representative of the types that we will see. >> this one is a home-made hamas rocket. the second one is iranian one. the third one is a north korean production. the last one is the classic rpg that came from russia. >> reporter: the idf continuing to prepare for that type of weaponry. at the same time it is intensifying its targets on hamas as the conditions for civilians who are there continues to be become more and more dire. many of those civilians trying to get out, especially foreign

nationals who have been trying for weeks. tonight we're learning more and more about the first group of foreign passport holders who have been able to get out that includes a group of americans as well as a group of british nationals. the white house tonight saying it will do everything possible to try to coordinate for these americans to leave by even giving them designated time slots when they could exit into egypt. larry? larry: alex, just one quick question. as the idf sweeps through the northern gaza area are they able to provide some humanitarian aid on the way to palestinians? >> reporter: yes. we've even seen more of those humanitarian aid trucks from the u.s. come in through the rafah crossing today. there is an effort to get as many of those trucks further north as possible. the idf is also encouraging any civilians still there to leave and to head south. we have heard from international organizations as well as the palestinian red crescent on the

ground it has really been a slow struggle to get aid up there, simply because of how dangerous it is. the israeli military has warned people who are in the north they will continue to target that part because that is where they believe hamas operates and that is where most of the tunnels are. that is where most of the militants are. larry: yes. >> reporter: it definitely has been a struggle to get that aid in there. the reason why they're pushing people, urging them to go south. larry: alex hogan, thank you very, very much, please be safe. let's come on home to washington, d.c., home, sort of the swamp. let's bring in fox business correspondent edward lawrence on the fed. edward you're not swampy but you're covering the beat. what exactly in plain english if such a thing is possible what did the federal reserve tell us today? >> reporter: yeah, basically i live in the swamp though, i can tell you that, and it does get hot over the summer. the fed chairman saying he basically believes inflation has

moderated. he also feels better about the chances inflation will come back down but the fed chairman told me that he doesn't see inflation into the mid twos as a percentage until the end of next year. then it won't be to the fed's target until sometime in 2025. now i think it is important to hear my full exchange with the fed chairman why inflation remains elevated for how long as the fed decided to pause this time. listen. with no rate increase today how long would you be okay with a 3% or 3% plus overall inflation? >> you know the progress is probably going to come in with lumps and be bumpy and we'll making progress report you said in the past that the cost of doing too much. how much is the debate on this pause on doing the too little side? >> that is always the question we're asking ourselves. we know that if we fail to restore price stability the risk

is that expectations of higher inflation get entrenched in the economy and we know that's really bad for people. >> reporter: so president joe biden also speaking in this hour. the president, obviously will find nothing wrong with the economy even though inflation is up 17.7% since the month he took office, wiping out all of the wage gains. larry. larry: all right, great stuff, edward lawrence. you asked tough questions. i'm glad, we're all glad you're there thank you very much. >> reporter: thanks, larry. larry: here on the show in a couple minutes we'll talk to senator ted cruz. he has some new sanctions for hamas and iran. israeli special-ops officer aaron cohen, and then senator chuck grassley on the breaking news of new biden scandal revelations including checks. anyway, i just want to comment on this economic story. we haven't really had a economic riff in a while.

wall street keeps telling us that the fed is going to be lowering its policy rate soon and the market rates will follow that down but wall street has been consistently wrong on this. the fed has tightened more and bond yields have gone up further than the street expected. now my crystal ball no better than anybody else's but i was very interested when janet yellen's treasury department this week issued their most recent financing details and a big hat tip to my friend larry lindsey for writing this up. so, get this, the treasury now expects to borrow $1.6 trillion in just the next six months. that's trillion dollars, 1.6, between october 1st, 2023, and march 31st, 2024. that would come, get this, to roughly 11% of gdp. those are big numbers, very big

numbers, virtually unheard of, 11% of gdp borrowing. nothing like it in peacetime. now today, as edward lawrence noted, fed head jay powell reminds us that the central bank will continue to reduce its holdings of treasury bonnes -- bonds and mortgage-backed securities. economists call that quantitative tightening. so far the fed has taken one trillion dollars out of the high powered money supply over the last year or so but if powell and company are to be believed they will take at least another trillion out to the money supply. which leads to the question who exactly is going to buy the 1.6 trillion in new bonds? so uncle joe biden can keep spending his keister off if people do buy it, spending like he will as he has the past few years. big dollar aid of so-called emergency spending in areas that

have no emergencies. it is a battle between guns and butter. biden is choosing both just like lyndon johnson over 60 years ago. remember, johnson blew up the budget and inflation rate spending heavy in vietnam and the great society. now biden's is blowing up the budget on israel which i totally favor but, also on ukraine which really needs a mission statement, an exit strategy and a long conversation. plus, mr. biden's got peanuts for more babysitting at the open border down south. he has this, $56 billion for various social spending that has nothing to do with anything except political election year handouts. i'm going to come back to all of the borrowing. the biden treasury just announced who is going to buy that stuff. the fed says it won't. china hasn't been buying in quite some time, neither has

japan. meanwhile the consumer saving rate has come way down. so that cushion may be gone. of course there are a lot of factors that drive up or down on interest rates but sometimes supply and demand do matter because investors may well want a higher interest rate to bailout mr. biden's profligate ways. meanwhile over the last 32 months worker wages have gone up 15.5% but level of the consumer price index has gone up even more, 17.7%. so you have got declining real wages and typical family incomes, well some made in the drop of median family incomes to be nearly $7,000. that is the reason why "bidenomics" so unpopular. it is a question of affordability including a 8% mortgage rate. folks are working hard but can't afford the biden economy. that is especially true for

lower income families where the poverty rate shot up in the recent biden years. so what is the economic outlook? well this is interesting. the biden treasury has said the fourth quarter will grow by less than 1% and for all of next year, the treasury is actually predicting a miniscule 1%, for the whole year. that ain't much. meanwhile i would say with a topsy-turvy yield curve where short rates higher than long rates for over a year there is about a 65% probability of recession. my hunch is middle class folks are sniffing this out and that's why they are giving "bidenomics" the lowest grades of any president in recent memory. okay. just saying. now, with great pleasure joining us mr. ted cruz, senator ted cruz from the great state of texas.

senator cruz, let's just dive in, have some fun here, i don't know that it is fun exactly. you have a proposal for new sanctions on hamas and iran. senator, i'm all for it, i'm all for it. i just want to cut right to the chase because my view is, hamas doesn't really have any money. iran's got all the money. iran's the puppeteer, iran's the financeer. you say, and this warms my heart, okay, because people have to come out to say this very directly, you say first of all you want to prevent iran from accessing and raising revenues, okay. no unfreezing of overseas accounts including the six billion dollars and the $10 billion. and then you say, this is where i want to go, sir, you got the bill imposes sank shucks on iran's ghost fleet of oil tankers which it used to raise$0 billion since president biden took office. these sanctions also target

tanker owners and operators and then requires the biden administration to work towards deed certifying and deflagging those vessels. senator cruz, ever since this war started every night i made these points. i'm very simple. i'm not smart as you. you're a brilliant guy. i'm just a news guy. all i say is, stop a ship, stop a ship! interdict, impound and stop a ship carrying oil to china and you will send the mullahs an important message. that's my view. senator cruz, the floor is yours. >> well, larry you're absolutely right. look i start from a principle that's not very complicated. stop giving money to terrorists who want to murder us. you know we're looking at this war in the middle east that israel is facing, the worst attack israel has endured in over 50 years and joe biden goes on television and says that he

stands unequivocally with israel. well that's great. i'm glad the president says that. talk is cheap. action matters and if you want to help israel there is nothing we can do that matters more than cutting off the money that is funding the death squads and the rockets that are attacking israel right now. how do we do that? we do that by targeting number one, iran and number two hamas itself. with iran there are a total of three pots of money there is number one the $6 billion in ransom, that the biden administration wanted to pay for american hostages. there is number two, the $10 billion they wanted to trans fir from iraq to iran. that's 16 billion. as you rightly noted by far the biggest portion is the 80 billion iran has made from selling oil. now we have existing oil sanctions. they are draconian. when joe biden came into office the iranian regime was on its

knees. the iranian economy was in shambles and the reason is the trump administration at my energic urging was vigorously enforce, the oil sanctions and it caused iranian oil sales to plummet. when joe biden came into office his administration stopped enforcing those sanctions and right now the ayatollah is selling two million barrels a day of oil and they're selling it primarily to communist china. this bill, the hamas sanctions act, cuts off everyone of those avenues of revenue for the ayatollah and the ayatollah is providing over 90% of the funding to hamas. we need to cut off their money but at least so far the biden white house is not willing to do so. larry: see i think, again, i totally agree, and literally, literally, ted, every night since october 7th i have talked about this. i have riffed on it. we talked about it with some

guests. joni ernst has been real terrific on this as you may know, many senators on both sides of the aisle have gone to israel. i don't know how you do this, senator cruz, somehow, somebody, some group, bipartisan hopefully but maybe not, has got to get this administration to understand iran's direct role in the hamas murders and to enforce the sanctions. they're there. we put them in the trump adminstration. they were good sanctions. treasury, nec, state department, defense department. you know, stop a ship. i keep saying that, stop a ship! stop lobbing missiles is into unmanned ammo bases in sir what. stop a oil tanker bound for china. you do that you get the mullah as attention. it is not as good as killing soleimani but it ain't a bad

start. the problem, senator cruz, the biden administration they appease, they don't deter, they appease. >> you're exactly right. number one i do not understand democrats like joe biden. they hate oil and gas if it is produced in america creating american jobs but love it when it is produced by psychopathic maniacs that want to murder us. that makes no sense at all. number two, what i like about your show you get into deep substance. let's do a minute on and a deep dive on oil sanctions on iran. during the trump administration you remember there was a big battle over ending the iran nuclear deal. both the state department and defense department, urged president trump not to end that deal. i vigorously argued with the president he should end the deal. he agreed with me. he overruled his own secretary of state, his own secretary of defense. he pulled out of that disasterous deal. after we pulled out of the iran deal there was still in place what were called oil waivers, a waiver that allowed iran to sell

oil. they were at the time selling a million barrels a day of oil. we had a second fight. in this case it was a fight between the department of state and the department of energy. mike pompeo was secretary of state and the state department argued don't end the oil waivers because if you do the global price of energy will skyrocket. the energy department -- larry: no it was tillerson. oh you know what? wait a second. >> oil waivers was pompeo. on nuclear deal it was tillerson. larry: you know who argued to end the waivers and don't worry about world oil. that guy kudlow running the nec. >> and the department of energy. you know what? kudlow was right. when energy was right because trump ended the waivers and price of oil didn't rise at all. larry: rick perry and i knew, we were already pumping out 12, 12 1/2, 13 million barrels a day. nobody else could touch us. that is the good oval days when the fossil figure got were --

spigots were open. i'm running out of time here. your history is basically right. pompeo came around. i will give mnuchin, mnuchin was kept cat on the oil argument but he did come around but rick perry and i carried the day. >> yeah. larry: senator cruz, i got one more minute, one minute between you and the producers i'm going to get shot, but here you can't have, you can't have guns and butter. you just can't have it. this deal that president biden seems to want with i don't know, $105 billion worth of foreign aid and another 55 billion so-called emergency spending. it is nothing to do with emergencies. it is all about the election year. it will probably be 200 billion before all said and done. >> yeah. larry: senator cruz you can't do this, this is inflationary treasury, who, the treasury will sell 1.$6 trillion of bonds in

the next six months, 11% of gdp! who will buy this stuff? >> look i think the president's supplemental proposal is doa, it is dead on arrival. no chance the republican house will pass it. i think the right thing to do is what the house has done break the israel military funding off separately. there is a bigby partisan majority in both houses to provide military aid to israel and to stand with them unequivocally as they face this horrific war. if we take up israel aid on its own it will pass with massive bipartisan majorities. beyond that what the biden white house is trying to do is take israel aid and hold it hostage for all of their other partisan priorities. that is cynical and it's wrong. once we pass israel military aid, then we ought to sit down and negotiate, okay, on ukraine there is a difference of opinion. let's negotiate what is needed. larry: yeah. >> i think if there is going to be a deal it is going to be a deal for some military funding

for ukraine in exchange for real policy changes that secure the border and stop the invasion at our southern border. larry: yeah. >> i don't know the democrats will swallow that but that is the only path i see for an agreement on that part of the proposal. larry: yes, sir. i'm with you, 100%. senator cruz, you're wonderful. thank you for your time. thank you for your sanctions. >> thanks, larry. larry: thank you for your good sense and i will thank you for your history, how's that? after all that coming up on "kudlow" we'll look at some of the details of israel's highly successful strike in northern gaza. this is very important. we have our great pal aaron cohen, former israeli counterterrorism operative. later on congressman derrick van orden, former navy seal. just came from israel. he says the hamas bar bar rich is isis times a thousand. we'll hear his stories.

this is "kudlow." ted cruz is right. he is a good history man. we'll be back.s ♪. to causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. at stores everywhere without a prescription.

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our prince of a friend aaron cohen, former israeli countyter terrorism operative. aaron, i don't think people understand, a, how important this was, and b, how they did it. you know we don't need a lot of stuff but you know you have perspective on this. this is a huge accomplishment from what i gather? >> yeah, larry. let me make it really clear to those people watching. israel is operating in what is called a forward operating area. this is a complete war zone. that's number one. number two this particular airstrike is what we call a danger close operation. what that means is that f-15s particularly in this case right now, and there is a high probability that there were israeli special operations individuals, so note there is a high-risk to the idf commandoes who were operating in conjunction with those f-15s. from what i understand they launched multiple specialized munitions for the purpose of

being able to strike tunnels, a specific tunnel or bunker or command center. let my say this, israel has no interest in striking civilians. that's not their business. there is no upside to hitting civilians, however, when actionable intel, we discussed this, comes in, those operations must be conducted very, very quickly. one, to be able to continue to eliminate the command-and-control structure of hamas. in this case this was a hamas terrorist leader with multiple associates of his who were also in the upper fringe. two, to be able to continue to push forward with hostage rescue operations. just like we saw with that idf soldier we brought back two days ago which i helped break. it hit israel and i put it on with martha on fox. and so operation is significant. also notice when you look at the b-roll here, larry you don't see gas is being leveled. you see one building that was hit. that requires an incredible degree of selectivity.

if israel wanted to turn that entire neighborhood and flatten it they could but they won't. the reason why? we want terrorist leaders. one other piece, larry. i keep hearing people say, how can israel edues risk to the gaza population? it is really simple. there are two parts here. one, let us destroy hamas. the sooner they are destroyed the sooner these forward operations and thighs military campaign, the sooner it ends. two, time for queen ranya, time for el-sisi, king of jordan is a good man, he has good relations with israel. time for to open the gates and arab world, you know me, larry i don't get political, all the gas sans held hostage by hamas, unable to move to the south to go into the countries to get the aid, get reeducation they need and get their poison out of their education system. larry: i agree.

look, those countries you mentioned, egypt, jordan, just take those two, they are not rooting for hamas. they do not want hamas to be supreme and strong. >> that's right. larry: i got to get out, aaron. it's a good point. but the other thing you nailed this guy jabali, he was a big training commander and they nailed the training center. it is a great beginning. aaron cohen. >> little closer. inch by inch, larry, you know by inch. larry: i love it. moving right along right on the war story, we bring in wisconsin congressman derek van orden, a former navy seal and a combat medic. we appreciate it, mr. van orden. you said it, the hamas terrorists are savages, they're beasts. you're opposed to the humanitarian aid and you're basically saying what you saw was the worst you've seen in your military career and you've

been doing this for a very long time? >> that's correct. i did countier terrorism and hostage rescue operations as a navy seal for over two decades. i have multiple combat tours on several different continents. and what i was exposed to in israel is the most horrific things i have ever been exposed to anywhere in the world. that is a very bold but truthful statement. what these folks did to the israel hi people, the jewish people, can only be described as absolutely horrific. larry: der derrick, someone who agrees with you, i didn't see it but i agree with you from the reporting, these protesters, they're pro-hamas, some are anti-semitic, maybe all are anti-semitic, the worst i ever seen, they talk about how israel is killing sievians. right at the start on october 7th the hamas barbarians killed civilians, they didn't go after -- >> that's right.

larry: they didn't go after the israel military. they went after ordinary folks sitting in a peace concert and killed 1400 of them. they deliberately attacked civilians. now, i don't ever want that point to be lost in the history and reporting of this war. >> that's correct. there is a principle called fruit from poisonous tree, action is taken, all subsequent actions that follow from that are based on that event. so october 7th, when these savages from hamas intentionally targeted thousands of israeli citizens and butchered them and raped them and burned them, that was an intentional act. so all of the things that are taking place in gaza right now, trust me, it's tragic, but all of the things that are taking place in gaza right now are a direct result of hamas's attack on israel. larry: right. >> they're the direct responsibility of hamas. they're the indirect responsibility of iran and

unfortunately they're also the indirect responsibility of the biden administration by funding iran and hamas. larry: indeed, yes, sir. on all counts, yes, sir, yes, sir. last one, derrick. you're opposed to the humanitarian eight? >> yes. the reason being is this. israel is at war. at no time in 1943 did fdr call winston churchill they must rush humanitarian aid to nazi germany that conversation never took place. by funding hamas you make this conflict longer and longer. we need unconditional surrender of hamas to israel so they can have peace in their country. larry: thank you, congressman van orden, appreciate it very much. hope to see you soon. >> thank you very much. larry: coming up senator chuck grassley. he is break news on more biden scandals. what doesn't mr. biden understand? he is undermining the supreme

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♪. larry: we got all kinds of breaking news on these biden scandals. we'll happy to welcome back iowa senator chuck grassley. 40 fbi agents, potential coverup. $40,000 of potentially laundered money to joe biden from china. senator grassley i don't know where to begin. talk about the china laundered money. jamie comer has checks written out. he followed the money trail. it came from china. what do you mange of that, sir? >> doesn't surprise me at all because you may remember that johnson and i gave speeches almost two years ago now where we had signs on the, the checks displayed on the floor of the united states senate but what

republican congress and house has been able to do that johnson and i didn't do, they can subpoena, they're going way beyond what we exposed a couple of years ago. i thank you comer for doing that. and it doesn't surprise me at all because we had initial evidence of this a couple years ago. larry: i mean, it looks like, sir, i mean we have chairman comer on tomorrow knight, we'll get it first-hand, but basically money from china was washed through several biden family accounts and finally sending a check to president biden. so. >> about a dozen llcs and various forms of laundering money to various people in the biden family. larry: yes. >> and this is, we're getting more evidence all the time that some of this money went to joe biden. larry: and senator, you talked, i mean you sent a tough letter, i think you sent it last week or

the week before whereby you want some information. somehow you have heard that 40 senior fbi informants who i guess filed 1023 reports about possible criminal activities by biden, it was all covered up by the fbi or was all covered up by the washington office of the fbi? >> yeah. these reports went from 40 different people who were confidential human sources, chs as the fbi calls it, confidential sources that went to various offices, field offices of the fbi and by the time it got to washington, d.c., there was a task force that was filtering this all and looks to us like there's determinations that they just weren't going to follow up on it. now so, my letter is an

opportunity to find out what has the fbi done with this confidential information from 40 different sources, that seemed to imply wrongdoing by various members of the biden family? and, and we need those answers. we want the fbi to show us their work. larry: senator grassley, how did you find this out? how did you -- >> oh, through whistle-blowers. all of my information that johnson and i have been working on have been people within the department of justice and the fbi that are, that want the government to do what the government is supposed to do, enforce the law, prosecute. to have equal application of the law and they don't see it happening and they come to congress because they don't get any further within the rock in the executive branch. larry: your letter went to merrick garland, the attorney general? >> and the fbi.

larry: when do you want them to respond, senator? >> well i think the period that we put in the letter is probably just about up to that point yet but you know, they really don't want to answer us but we don't give up. we're going to keep pursuing this, as i have since august 2019 and that was even before the words laptop were in our vocabulary in regards to the bidens and we just don't give up but we're fortunate now that we have jordan and comer and smith and house of representatives are pursuing this with the power of subpoena. so they're going to carry it forward and boy, they're working with us all the time. larry: senator grassley, for your entire distinguished career you have never given up, never. so i -- >> thank you, friend, my great pressure sure to say it because i think it's the truth.

thank you for coming on our show again. we look forward to the next step in this. thankthank you, senator grassle. >> good bye. larry: joining me now, great friend, new york super congresswoman claudia tenney, member of the house ways and means committee. you're not just a congresswoman, you're a super congresswoman. >> thank you. larry: welcome back. wall-to-wall coverage. we have not had time for claudia tenney, we're thrilled you're back. here they go again. now they have new four categories, five categories of student loans they want to cancel. claudia, you're a lawyer as well as a house member. you're on the ways and means committee. what is it that they don't understand about the supreme court decision that says you can't cancel student loans? what is it they don't understand? >> they don't care about the supreme court or the law. this is all about abuse of power, abuse of process. that is what the democrats are about. the supreme court, they don't respect the supreme court. this is all about money and it is a form of money laundering if

you want to look at it in a legal way. so we decided we wanted to stop you know, make college more affordable. so we created a federal loan program. we made college so unpositive ardable only 13% of all these loans, only 13% of americans have federal student loans. but i tell you what the problem is, each one of these students is a money bomb to a university. they see a student, we can attach a federal loan to them, we then continue to get paid. we get big administrative costs. we keep our cash flow going. that is really what they are. they are cash flow. these are centers where joe biden has his donor base. in all these universities, all the liberal elite universities are like little mini money bombs that donate to the democrats and fund their machine. that is why he doesn't want to let the student loan issue go away because it would actually force these universities to be more efficient, cut down on their administration. i will tell you, there has been some private colleges who actually on their own reduced

tuition substantially because they're trying to help their constituent. they don't want anything to do with this. they want the federal loan program to continue. that is why biden don't accept the rule of law from the supreme court case said what he was doing trying to eliminate student loans was illegal. even nancy pelosi, the biggest abuse irof power i've known in my political career actually said biden didn't have the power to cancel student loans. they will not quit. this is what his donor base wants. you can't separate student loans from donor on this with the bidens after you just talked to the great senator grassley about the other part of the biden corruption scheme. larry: i tell you what else, claudia, i guess a lot of people would like to know if any of these canceled student loans go to students who have marched in anti-semitic, pro-hamas parade in the recent last month, okay? i bet you a lot of americans

would like to know that factoid as well? just saying. >> we certainly would. larry: just saying. >> how do we find out? exactly. i think is a real, the desperation from the biden administration to save the universities through the federal student loan program is showing the crumbling of these university systems in addition to this horrible situation we're seeing on campuses where students are actually celebrating and protesting, celebrating a murder and terrorism against our most reliable obviously our most important ally in the middle east, israel. i'm not too far, my district, i surround cornell university where my dad was a graduate. i wrote a letter to the university president last week, saying this professor who described the killings by hamas in gaza as exhilarating should be removed from office. so far they put him on leave. that is where we are right now. only last week we saw the student, a couple days ago, the student that was finally put and

charged by local authorities for his anti-semitic and actually death threats against innocent students at cornell who are harbored up in a dining hall. larry: claudia tenney, thank you very much. thank you. >> thank you. larry: keep an eye on it. all right, folks, coming up, coming up i got, let's see, $1.6 trillion of new bonds the treasury wants to sell, 11% of gdp and who exactly is going to buy them? we'll talk about it with kevin hassett, former chair of the council of economic advisors in the trump years. if anybody knows he does. i'm kudlow. we'll be right back. ♪

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america's slidesocialism. kevin, fed says it will not buy them. china is not buying. japan is not buying. you have to wonder about investors, savers, savings rate is down. who is going to buy these bonds? >> right. what's going to happen, larry, as our old friend art laffer taught me and you a long time ago the market will clear. interest rates will go so high someone will come around and they buy these thing. the gossip from the auctions there is not enough people to buy treasury bonds already with the new issuance. what will happen the interest rates will have to go up to go clear the market. the as bad as it is with the 10-year around 5%, i'm expecting another percent or so on that. the only way you get demand on the bonds is if the interest rate goes up a lot. larry: kevin in all seriousness that is a lot of money, 1.6 trillion, that is only half a year, not 12 month, but six months.

reading larry lindsey a splatter fellow, a dear friend, 11% of gdp those are as big of numbers as i can imagine. the curve is still inverted and the treasurys, did you see the other thing? the treasury forecast looking for less than 1% growth in the fourth quarter and only 1% next year. they will be lucky to get 1% next year. what do you think of that? >> well i think that we'll probably get about that, maybe a little more but inflation isn't really much below 4% as you and i discussed it so bonds can't really go down, long bonds can't go down with slow growth. this is the stagflation you and i talked about for a long time. as bad as it is right now unless we get a new president and new policies, cbo said we'll have 25 trillion in new bond issuance over the next 10 years. if you buy one now, there will be a big increase of supply in the future 10 years from now. they're saying it is a three trillion dollar deficit.

the price of the thing you're paying for now will have to go down. it is a real bad situation these reckless policies have given us. larry: yes, sir. 25 trillion. there has to be a change, kevin, you're 100% right. thank you, my friend. we will talk soon. folks i will be right back witht my lasont word ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪

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and have historically low risk. call today to request your free bond guide. 1-800-763-2763. that's 1-800-763-2763. larry: tomorrow night, house oversight chair jamie comer will be on the show, we're going to the talk about this incredible breaking story, china mone