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Biden’s Shifty Math: $3.5 Trillion Does Not Equal Zero

Biden’s Shifty Math: $3.5 Trillion Does Not Equal Zero

Episode #55  |  September 30th, 2021
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In This Episode:

In this episode, Trish is joined by Grover Norquist, the president and founder of Americans for Tax Reform, a tax-payer advocacy group.

A government shutdown is looming… Who is to blame? Democrats or Republicans?

All of the Dems’ polling must tell them that their welfare spending programs aren’t that popular – so they had to tweak their sales pitch to convince everyone that their new bill is free.

Plus, the Biden Administration is telling the American public that the $3.5 trillion infrastructure bill is going to cost them “nothing.” How is that possible?

When will the government stop spending like it’s Monopoly money?

Norquist says there are only two ways to get the money they need – print it or tax more!

This leaves us with the current hulking colossus that is Washington, D.C., and its tentacles of power right now. Not since Franklin Delano Roosevelt’s New Deal era or Lyndon B. Johnson’s Great Society epoch have we witnessed such an expedient expanse in the sheer size of our government.


Grover Norquist

President, Americans for Tax Reform
Grover Norquist is an American political activist and tax reduction advocate who is the founder and president of Americans for Tax Reform, an organization that opposes all tax increases. 

Episode Extras:

Trish Regan:               Most Americans are still going about life, investing, retirement planning as though nothing unusual has happened to our financial system. And few seem to realize the repercussions of the trillions and trillions and trillions of dollars that has all been pumped into the U.S. financial system, just in the last 18 months alone. Well, this is a wake-up call.

I mean, people are recognizing this. You have at least four billionaires that have stated publicly Americans aren’t paying enough attention to this development. And now a friend of this show, a former Goldman Sachs banker says, sooner than most people think, millions of Americans will potentially be pushed down out of the middle class, out of private retirement, out of a decent life, based on independence and privacy into what he calls a “collectivist nightmare” called financial lockdown.

So find out how to protect yourself, how to protect your family, how to protect your money. You can get a free copy of his new report. In it, he’ll show you the four steps that he recommends you take immediately. Go to to get your free copy. Again, retirementwarning2021 for a free copy of his new report.


Zero… 3.5 trillion really is equivalent to somehow zero?
I mean, just when you think you’ve heard it all, right? Hello, everyone. Welcome to American Consequences With Trish Regan. I am Trish, and it’s so good to have you here. And it’s really good to talk right now because my gosh, I think that they think that we’re stupid. That’s all I can quite determine from this because this is one bonkers move to have your talking point as the President of the United States, I guess he figured they all think I’m pretty dumb anyway. Why not go for the triple whammy on this one? Two plus two is 40 and 3.5 trillion is actually zero.

I mean, I’m amazed, but I’m also disgusted and I’m disappointed in this administration for thinking Americans are so stupid as to buy something such as that. To try and put the spin machine on in such a way that shows you how little you think of the American people. That’s effectively what Joe Biden is doing right now. He’s saying, “I think you’re so darn dumb that you’re going to believe me when I tell you when I’m spending $3.5 trillion,” it actually is zero.

I mean, you think about the nerve. I was watching Jen Psaki in the press conference the other day in which she reiterated this talking point. And she sort of kind of smiled and she said, “Well, as you heard us over the weekend…” It’s as though she was saying to herself, “Oh my God, I can’t believe I’ve got to actually say this nonsense, but here we go.” That is one bad job.

One really, really bad job where you can’t be your own person in any way, shape, or form. It’s like here’s what we think we should sell now, go out and sell it and we don’t care how many lies you have to tell along the way to do it. So she’s lying through her teeth. He’s lying through his teeth. And look, Barack Obama didn’t quite have the nerve to say this one. He didn’t tell us it was zero. He went on Good Morning America and said that, well, everybody should pay more. The rich should pay more. And he’s part of the rich now and he will pay more too.

So that was his message. Look, it’s “all hands on deck.” They’ve got Janet Yellen writing in the Wall Street Journal that if we don’t do this, there’s going to be a default on U.S. Treasury debt. We’re going to talk about that a little bit later in the program because a lot of this is just hysteria. They’re trying to whip everybody up. But again, Americans are smarter.

So when you start saying things like 3.5 trillion is really just a big fat zero, Americans, they say, “No, maybe be you’re the big fat zero.” You combine that with the mess we’re looking at right now, whether it’s the hearings that we heard General Milley and others telling us, “Oh, it turns out President Biden was warned that if you got the military out ahead of the civilians, you would have total chaos and lots of death.” And yet, for some reason, Antony Blinken, our new Secretary of State, and our President were willing to just cover their ears and not listen to the generals, who by the way, like do this for a living, right?

That’s their job. That’s what they actually – one of the things that you got to remember when you go into any kind of position, whether it be someone who’s a chief executive running a big business, whether it’s a small-business owner running a small business, or whether it’s a politician like the President of the United States running a very big government, one of the best things you can always do is listen, and trust your team around you.

I mean, ask questions, right? “Trust, but verify” as Reagan said. But make sure that you put the pressure on them to deliver and have answers, but you’ve got to be willing to listen to their advice in situations. And unfortunately, in terms of the military, we’re not seeing that this president is listening to anybody who knows a thing or two about this. Probably because he is kind of anti-military.

I hate to say, but I mean, there’s sort of a generational thing going on there. And he’s from an era where there isn’t the same kind of respect if you would, and he’s from a party without the same kind of respect if you would for the military.

So I think that inherently is a problem. And then he’s surrounded by a bunch of “yes men” like Antony Blinken. And they had an idea, right? They knew the answer to their problem. They wanted out of Afghanistan ahead of 9/11 so that he could make this big giant speech. And they didn’t really care what got in their way. And what’s just so sad about that is that we lost so many lives. We basically degraded our position on the world stage. I don’t know how allies really trust us going forward. And we came out just all around in a very bad spot and most likely in a more vulnerable spot.

And so this is why it’s so critical to listen and to think through all the different options and trust the people around you. You turn to the economy right now and look, you know what? We’re doing OK. I’ll just say that. We are doing OK. Yes. I realize we still have over 5% unemployment, which by the way, historically is pretty good. Well, one of the reasons you have unemployment, I’m sorry, is that you’ve been given out so much in the way of handouts.

I mean, why would anybody go back to work when it’s awfully profitable to live off of Uncle Joe? I know that that’s coming to an end. They want to extend it. They want more, more, more, more, more. They will never stop wanting more because somehow everybody’s to just sit home on the couch, live off the dole.

Well, that’s not how an economy functions. In fact, I question sometimes whether our economy is really going to be able to work in this environment. Only because if you can’t find anybody to do the jobs, then how are you going to keep expanding, right? How are you going to get that GDP growth? You’re not, you’re not. I mean, unless I guess you pay more, but it doesn’t even seem as though you can pay more in this current environment. People just don’t want to work. There’s more than 10 million job openings right now.

So what’s going on? We’ve got some problems, but that’s tied to a very heavy hand from government trying to incentivize. I think people to not be there. I mean, why bother, right? When you can work by the way in the underground economy for cash and no one even knows.

At some point, that’s got to catch up to folks because that’s just not going to work as a society. But we’ve got a lot of issues at play right now. And I think all of this is reflected in the sentiment that you’re seeing from Americans. Americans are getting a little bit tired of the current president. His approval ratings are showing that the honeymoon, if you would, has completely worn off and it will likely – if the current news cycle continues as it’s been, it will likely grow worse.

I am so excited to have with me here on the program today a gentleman I’ve known for a very long time who is very, very committed to making sure that your taxes do not increase. I’m committed to that as well. So we share that in common. None other than Grover Norquist, the president of Americans for Tax Reform. Grover, so good to have you here. Thanks for joining.


Grover Norquist:        Good to be with you, Trish.


Trish Regan:               And obviously perfect in terms of timing right now because, wow, it’s like, where do I begin? First of all, let me start with – we don’t know as of this taping, as I speak to you at this moment in time, whether or not we’re going to get a government shutdown. Do you have sort of an over/under on that? What is your thinking on whether or not we actually shut down?


Grover Norquist:        This is a political decision by the Democrats. Remember, the Democrats can raise the debt ceiling all by themselves with 50 votes in the Senate plus the vice president’s vote using reconciliation. And they have a three-vote margin in the house. And there’s no dispute on the Democrat side, they all wish to raise the debt ceiling quite a bit.

So any day, any time, any moment, the Democrats would like to raise the debt ceiling they could. And therefore, they could also pass the continuing resolution for a month, for three months. So the Democrats may choose to have a government shutdown and hold a press conference saying it’s Republicans’ fault. The problem – and I was looking at polling that Harris X and others have done, people say if there’s a government shutdown, it’s the Democrat’s fault.

Somehow, they figured out the Democrats have the majority in the house and the Senate, and they hold the White House. And they’re not buying the argument that somehow the Democrats – if the Republicans don’t vote for this, they will have killed the debt ceiling. They will have stopped, shut the government down.

So my guess is that the Democrats will in fact crawl back into their shell and vote for the continuing resolution clean and with a debt ceiling increase of a certain dollar figure. Not you can raise a debt as much as you want for the next two years, but you can raise the debt $2 trillion or $3 trillion, whatever the number is they’re trying to reach by end of this year. It’s a political decision, it’s not an economic decision. The Democrats will decide it. I think they could guess wrong and say, “Let’s shut the government down, it worked for Bill Clinton.” But the Republicans are smarter now.


Trish Regan:               Yeah. And look, I do think that people are seeing through a lot right now. You have only to look at the polls and what you discover is that Americans’ frustration with the political process is growing more and more acute in terms of their sort of disgust over what happened with Afghanistan, and then you couple in the border, and inflation with that. And you’ve got a real recipe for political discord on the Democratic side because they’re in charge. I mean, certainly you see the approval ratings from Biden. Gallup poll just out the other day and it reflects that.

And so if you add in a government shutdown on top of that, and again, Americans are not as dumb as some politicians may think they are, they will actually start to put two and two together. And two plus two in most Americans’ mind does equal four. Let me turn to sort of the spinning though, if you would.

I mean, we know on the one hand, yes. They’re trying to say it’s Republicans’ fault if in fact, we have a government shutdown. I agree with you Grover, I don’t think it flies. But in terms of what they’re now saying with, oh, this $3.5 trillion plan is going to cost nothing, zero dollars.

That was what Joe Biden’s account tweeted over the weekend. It is what we heard parroted by some talking heads on CNN. And then we heard it again parroted by Jen Psaki, who is in charge of PR for the White House. And I’m sitting there going, wow, I mean, this is one really aggressive move. It’s like when all bets are off and you’re really in the corner, just say, “Nope, I’m going to reimagine the world as I want it. Black is white, white is black and to hell with all, yeah.” What are your thoughts?


Grover Norquist:        We don’t get to sit in the room while the Democrats and Congress or the White House make decisions. But we do hear what they say when they walk out of the room. And you can reverse engineer must have happened in the room for them to come out and make a pronouncement. Their polling must tell them that all of their spending plans and all the welfare proposals that they have are not terribly popular. I mean, they may be, if it was free, would you fee for X? But there’s no demand that you have this sort of thing.

So they had to go out in order to sell their restructuring of all American economy, OK? And say, it’s for free. Means they don’t think anyone really wants it enough to pay 50 bucks a month for it. I mean, this is the kind of numbers you get when people say, should we do something about global warming? Yes. What’s the most you’d be willing to pay for it? Fifty dollars a month. That all the plans the Democrats have are thousands of dollars a month. They view people’s willingness to pay for their welfare programs as zero or close to zero. Otherwise, they go, “This is great. We’re going to raise taxes and do this wonderful thing.” But that’s not what they’re saying.

So their internals tell them, this is really not popular. Doesn’t mean people hate it, but they don’t have to have it. If it didn’t happen all year, no one would care. We saw this also when they – it was beginning to be announced that the Democrats were falling apart internally on what they were the progressives versus the people who were worried about losing the next election and that they were falling apart. And they came out and announced, we have an agreement. What was the agreement?

Well, the head of the ways and means committee Democrat and the head of the finance committee in the Senate, Democrat agreed that they would pick from a collection of hundreds of tax increases what the pay force would be. That’s not an agreement. They’ve agreed to nothing, absolutely nothing. If you’re trying to explain that there isn’t a fight and people are getting together and it’s really moving forward, and the best you can hand them is a non-agreement by two people who aren’t the decision-makers, that tells you, they really have no agreement.


Trish Regan:               I think you’re right. I mean, I think that there’s so much infighting too within the party that it’s creating more and more problems because if I’m a Democrat right now, and I’m trying to figure out how the heck I’m going to get elected in ’22, I can’t that presenting a ton of spending, I mean, maybe free stuff, right? Because who doesn’t like free stuff? But a ton of spending coming forward, the threat of higher taxes, is going to help me get reelected, especially when you combine it with all the other stuff that’s going on.


Grover Norquist:        Well, the other person who doesn’t think it’s going to help anybody get re-elect is Nancy Pelosi. Because she publicly says, and in private meetings as well. This is our once-in-a-hundred-year opportunity to dramatically increase the size of government.

We saw a jump in the size of government during the New Deal that today 5% of GDP, one-quarter of the federal government was created during that two-year period of New Deal spending. And another 5% of GDP, another quarter of government was created during the Great Society. So half of the federal government was created in four years. Great Society, New Deal, and the other half is actually things that maybe belonged to the government. And they want to add another 5% of GDP.

Take up to 25% of GDP up from 20, that’s what all this new spending is. If you believed that you had the wind at your back, the American people’s support, you would go, this is just the beginning, we’re going to pass this. Now, when people fall in love with it, they’ll do more. Instead, they’re saying, if we don’t do this now, we’re never going to get it because we have the power to do it now and no popular support.

They are telling you they don’t believe they have popular support. They believe they’re going to get whacked in the next election. And their argument to people is, we’re going to try and push all the toothpaste out of the tube because as soon as we’re done with this, about 30 of you are going to get lost in the next election and we’ll try and find something for you to do for the rest of your life. But my goodness, they do not believe that what they’re selling will be popular even with a year to play with it, to look at it, make it work for people.


Trish Regan:               That’s encouraging at least because there are times when you worry that it’s kind of the tyranny of the majority. And if people just say, “Hey, we want free stuff. We want free stuff. We don’t want to go to work. We want bigger unemployment benefits.” And then you have really noisy folks like Rashida Tlaib, AOC, Ilhan Omar, Bernie Sanders, backing that, then you do start to worry.

But I think what you’re seeing in what you’re telling us is that the popular support is not there. And that’s perhaps because the pendulum tends to swing back, and people know instinctively this isn’t right. This is despite some politicians like Representative John Yarmuth, who was quoted at a Rotary club meeting over the summer, this is the head of the budget committee saying, and I quote, “We have a sovereign currency. We are not like business. We don’t have to balance our checkbook. We are like the banker in Monopoly.”

So I heard that and I’m like, you got to be kidding me. I mean, it’s unbelievable. I actually played it on my daily podcast this week because I just wanted people to hear that. I mean, I could play that over and over again. We are like the banker in Monopoly, Grover. He said, “We create the money, everyone else plays the game with it.” Direct quote.

And I’m like, whoa, whoa, whoa, whoa, whoa, whoa, whoa. So that gives you, I think, some insight into the mentality, right? They think they really are the banker in Monopoly. And so why not? Why not just keep spending and spending and spending? What’s the risk of that Grover?


Grover Norquist:        Well, there are two ways that you get the money if you’re the banker in Monopoly. You print it, that gives you inflation because the amount of dollars, the number of dollars chasing the available goods and services grows faster than goods and services. And you end up like Zimbabwe or Weimar Germany with inflation, or you have to keep stealing more money.

I mean, if you don’t print it, you have to steal it. You have to raise taxes and raise taxes. And every time you raise taxes, whatever you’re taxing, you discourage the production/consumption of that. When you tax businesses, you discourage people from investing in businesses because you’re taking their stuff.


Trish Regan:               And ultimately, any way you slice it, it’s going to have a negative effect on the American economy. And what gets me Grover is that so many of these politicians, they think it’s going to be popular to say, “Hey, we’re out there for the little guy, we’re out here trying to help the middle class, we’re out here trying to help the poor.” When in fact, Grover, in either scenario that you just mentioned, whether you’re printing money and you’ve got inflation or whether you’re taxing everybody and taking money away and therefore people don’t invest in the things that they should invest in, either way you’re hurting the middle class and the poor.


Grover Norquist:        Oh, absolutely. One of the biggest lies in this whole production is Biden’s saying, “Well, you, you won’t have to pay for this. Remember this is the zero cost for you. We are going to take $1 trillion from corporations and $1 trillion from pastors, small businesses that pay their taxes to the individual income tax.” And that’s $2 trillion.

And then there’s some other stuff, we’re going to tax cigarette smokers, very few of whom make $400,000 a year. And vapers, very few of whom make $400,000 a year. But the corporate income tax, 30 to 70% of the corporate income tax in dollars. if you could take a trillion in corporate income tax hikes, 30 to 70%. So 300 billion to 700 billion is paid for by lower wages for workers. And these are the sort of more liberal economists, think it’s about 30% more.

What I would consider robust thinking economists who’ve taken more things into effect, say it’s more like $700 billion. This is a massive cut in the pay of working Americans. And you see that, again, by reverse engineering, you look at the Trump tax cut, the Trump tax cut across the board, corporate income tax reduction. What happened in year two, 2019?

That year, the family of four – median-income family of four, dead-center-middle-class family of four – got an increased pay in that one year… $4,400. Household income… $4,400, a 6.8% increase. This is what happens when you cut business taxes, businesses invest more per worker. They become more productive and you have to pay them more because being more productive, they could go someplace else too.

And other people, other companies, competing companies, are hiring people and they’re making their workers more productive. If you have less capital per worker, you have lower pay. We make more money than people in Bangladesh. Not because we’re nicer, but because we have more invested capital per person. We don’t plow behind cattle, we have tractors.


Trish Regan:               The other sort of misnomer here, and it really irritates me, is the idea that the wealthy – and I’m not even going to use the wealthy because, by the way, it’s not like he brought back or did a darn thing about the carried interest private equity tax loophole, OK?

So it’s not really – he has this idea that somehow the rich need to pay their fair share unless, of course, I guess you’re a private equity banker and then you get to declare your income as investment, but let’s leave that one aside. The idea that somehow if you’re rich, you’re not paying enough. And I’m like, “But wait a second. The people that are actually paying the taxes, they’re actually paying all of them, right?”

I mean, the 1% paying 40% over 40% of taxes, you’ve got the top 10% paying nearly 30%. And I think this is an important statistic for people to remember. You guys may have come out with this 61% of Americans did not pay any federal income tax in 2020. My goodness. So it’s like at some point you’re trying to get blood from a stone. I mean, you can only go back to the well I guess so many times.


Grover Norquist:        Well, and they’ve kept pushing that up. And by the way, every time that Republicans cut marginal tax rates, those percentages of all the revenue raised by higher-income people go up. Because people invest more and save more and create more wealth and more capital gains and more income and more jobs for other people. And it does exactly that. It moves up the income brackets who ends up paying for it.

But now I’m not too worried that people will say, “I don’t pay any taxes, so I don’t care if they raise taxes.” People have a very healthy appreciation of all the taxes they pay. The property taxes for their homes, sales taxes, every time they go somewhere, Social Security taxes, cigarette taxes, liquor taxes, phone bills, look at your phone bill. It’s nothing but taxes. Look at your utility bill. It’s one tax on top of another.

So you may say they don’t pay the income tax, but interestingly, they do pay a lot of other taxes. And so middle-income and lower-income people are much more tax sensitive than the Left thinks they are. And that’s why they have to keep raising the numbers when they say, oh, Clinton has said I won’t raise taxes on anyone unless they make more than $225,000. And Obama was $250,000 Now it’s $400,000. Each one of them lied. They all went immediately for taxes on energy, which is everybody.


Trish Regan:               Well, I’ve probably told you this before. I grew up in “Live Free or Die”  New Hampshire back when it really was still “Live Free or Die” in its spirit. And there was a sense that – and I say this because it wasn’t even partisan there. I mean, for goodness sakes, you weren’t going to get the first base if you were talking about taxes in New Hampshire.

To this day, there’s no state income tax. There’s no sales tax. And somehow, they make it all work, right? They get by granted they’re a small state, so that makes it a little bit easier, but this was just sort of ingrained into one’s being. And it wasn’t Democrat or Republican, it was just sort of like, no, we’re not raising taxes.

And my parents, who were actually quite liberal growing up, used to say to me, “Well, you can’t.” The minute you give to government, whatever you give, they will spend. And this is coming from Democrats back in the day, right? But that was New Hampshire for you. I think that still exists, right? People know that the minute you open the door just a little bit –


Grover Norquist:        Well, let me cheer you up on New Hampshire. We’ve been doing a lot of work in New Hampshire this last year. They passed in the legislature and Governor Sununu signed legislation that will finally make New Hampshire, a completely no-income-tax state. They did not tax wage income, but they did tax savings and investment income. Dividends and interest, that was 4% of the state budget, and that is being phased out to zero over the next few years.

And so, New Hampshire become the ninth no-income-tax state. Louisiana’s past legislation will phase it out over 10, 20 years, but they will finish theirs in the next four.


Trish Regan:               Hey Grover, I’m glad you told me that. Because I’m looking around, at some point, I don’t know if I want to live in the New York metropolitan area forever. And New Hampshire, I used to think, gosh, they charge a darn investment that the tax on the investment. Florida’s got it going on… Texas. That’s very good to know, very useful information for anybody. It’s a wonderful, wonderful place and a wonderful state.


Grover Norquist:        North Carolina’s seven years away from no income tax.


Trish Regan:               There you go. OK, I’m going to mention that at the dinner table tonight. The other thing though they need to do that I think would help them a lot, and it’s, again, right up your alley, is also getting rid of the business tax, right? Because that still – I mean, I think about how you really want to compete as a state and look, it’s wide open. Look at all the businesses leaving California. There’s a reason for that.


Grover Norquist:        There is. That’s a lot of people. You saw that 50 Cent announced that he’s planning on moving to Texas because California’s going to have a 61% rate on his taxes and he’s had it, the rapper.


Trish Regan:               Smart man. I think that the people get it. Let me ask you about the potential for what Janet Yellen is warning about. And that’s a default on our actual bond paying ability, the ability for us to pay our bills. I think it’s actually kind of serious. I don’t know where you are on this Grover, but I’m sort of a simple girl and I believe in paying your bills.

And I don’t like the idea of the U.S. threatening this or even having this hot potato up in the air. And I look at it and I’m like, but wait a second. First of all, if that were to happen, Joe Biden really and truly would go down as the worst president in the history of this country because we’ve never defaulted on our debt before.

So I don’t really see that happening. It’s one of those things where the Democrats are in charge, they ought to be able to figure it out. And they ought to be able to get this one through. But what’s your sense about a possibility for a default? Is it even at all real? And if so, who gets tagged with that one?


Grover Norquist:        There is no chance of default. What you said about the debt ceiling is correct. What Yellen said is a political lie that Biden and others have been saying. Right now, all it takes to raise the debt ceiling is 50 Democrats in the Senate plus the vice president using the reconciliation package to do that. And a simple majority of the Democrat majority in the house representatives and Biden signs it, OK?

You can also do a continuing resolution, so the government does not shut down in the same package. There is no threat of a government shutdown from the Republicans. There is no threat of not raising the debt ceiling by the Republicans. The Democrats can do everything we just discussed all by themselves.

They do not want to do that. Janet Yellen is being a political hack, not an economist when she suggests that somehow, we need Republican votes. I understand that Biden having spent the country be blind and tending to go crazy with more spending, does not want his fingerprints alone on the debt ceiling, which is just symbolic of all the overspending. It’s not the cause of the overspending, it’s the measurement. The thermometer isn’t hot, it tells you how hot it is.

And so they want Republican fingerprints on that, so in campaign ads, they can say, and the Republicans did this even though that has nothing to do with anything. And they don’t want to raise the debt ceiling, $2 trillion, $3 trillion, a set number, they want to raise the debt ceiling for the next two years, so they can spend and spend. And there is no check on what they’re doing until after the next election.

So they want a very specific debt ceiling, an open-ended debt ceiling, no limit on debt ceiling. And then lastly, the only times we ever get any restraint in federal spending, any Gramm-Rudman, the only time that happens is when we have a debt-ceiling argument and the Republican say to the Democrats, were not voting for your debt ceiling unless you have some spending limitation in it. Gramm-Rudman, the sequester under Obama.


Trish Regan:               Well, that was Grover Norquist. We were just talking with Grover who has, as I said, devoted his life’s work to trying to protect us against all these escalating taxes. Grover Norquist, the president of Americans for Tax Reform. It was great to have him here. Good to talk about all these things.

I mean, I think one of the important things that he just mentioned is the part about Janet Yellen and all the sort of hand-wringing of “oh my gosh, we’re going to default on our debt. We’re going to default on our debt.” I’m sorry. If we default on our debt, then you know what? Joe Biden deserves to be impeached. If we default on our debt, because he is that inept, a politician that he can’t get anything done, then my gosh, that tells you all you need to know. I don’t think that’s going to happen. The consequences would be severe. They would be awful because yes, interest rates would go way up like you’ve never seen before. It would be a disaster.

But I cannot imagine, of course, I will say this. I couldn’t have imagined that we would be in such a bad state right now. I mean, yes, economically, I understood that I got that. I knew that inflation would be bad. I’ve been warning about inflation for at least 15 months. I mean, I’ve been warning about inflation since the second Trump stimulus.

So that gives you an idea of sort of how I was gaming this out. But in terms of what we’ve done internationally, certainly, I could never have anticipated such utter carelessness, stupidity, call it whatever you want. We learned this week that General Milley did in fact – This is something I had reported.

My sources were telling me that the Pentagon had told the state department and the president that you needed to leave to 2,500 troops on the ground. I reported this again, according to sources that Milley had communicated, we need to have 2,500 troops there. I mean, by the way, this is not rocket science, right? Anybody could figure this out. You do not bring the citizens out before. You do not bring the military out before you brought the citizens out.

I mean, that’s just sort of rather a basic. And this was communicated and yet sources tell me that the state department had the loudest voice in the room. And so he was listening to Antony Blinken, who should be out of a job if you ask me, given the tragedy that we saw. And it was heartbreaking. And I will never forget those images.

We as a country will never forget those nine brave soldiers that lost their lives, young people losing their lives because of the lousy planning. And because Joe Biden didn’t take the advice of his generals. I’m sorry, these guys know what they’re doing, all right? A whole lot better than Blinken, a whole lot better than you. And that is truly awful, everything that transpired.

So yes, I could have told you inflation was coming. I could not have told you that anybody would’ve been so stupid as to have withdrawn from Afghanistan the way in which we did, which now puts us in a very, very bad position on the world stage with some of our biggest and best allies. So there’s that. I also couldn’t have told you.

I mean, I knew that the border would become more of a problem, more dramatic. I knew that you were sending a kind of signal that would be received in such a way as we’d have more people flooding the border, but I could not have anticipated how mismanaged that really and truly would be. And that’s been an utter disaster.

So look, between Afghanistan and inflation, which again if you listen to this program, if you go to, if you listen to my daily show, you knew that was coming. So the border, Afghanistan, inflation, all of these things combined have really put us in a bad spot. And I say this only because it’s worth thinking about the unknown, right? And I say, oh, there’s no way. There’s just no way we would ever default on our debt. But I’d also say there’s no way we would’ve gotten out of a country like Afghanistan where we had been for 20 years until we had made sure that everybody else was out.

So I just want to say, look, we don’t know what we don’t know, and do not underestimate the stupidity, frankly, of this team when it comes to blocking and tackling. And again, I can’t imagine this happening, but nonetheless, it’s in the back of everyone’s mind and certainly the market is watching it.

And I think the market is probably getting increasingly disgusted with what is Washington, D.C. right now as we all are. But nonetheless, I don’t think it really will happen. Just remember, take that one with a grain of salt. Anyway, it’s so good to have you all here. It’s an important time. There’s so much going on. We want to do what we can to protect what we have, to protect our assets, to protect the money that we have worked so hard for, which is why it’s important to hear from someone like Grover.

We also want to make sure that we don’t pull the rug out from under, everybody else it’s coming up the ladder. We want to make sure that we do everything we can as a society to ensure opportunity. We’ll never be able to ensure outcome. So many people right now want to guarantee that everybody’s going to have the same economic outcome. You can’t do that.

There’s a lot of different factors including a little bit of luck involved in life. And you’re never going to be able to ensure everybody has the equal outcome, but you should, as a society, do all that you can to ensure opportunity. And part of ensuring opportunity is making sure that you do have a low tax environment so that you encourage investment while simultaneously not eating up every single dime that a family has earned by printing money and creating more inflation.

So this is a two-pronged approach. We want to keep the help of our economy going for ourselves and for our family’s future. I want to thank you again for tuning into American Consequences with none other than your friend, Trish Regan. I will see you back on American Consequences. The website where I write every single week will get a great piece this week that’s tackling some of these issues. And I’ll see you back on my daily show. In the meantime, have a terrific week everyone. Thank you for listening.


Recorded Voice:         Thank you for listening to this episode of American Consequences. Want more Trish? Read our weekly articles, Thursdays, in our magazines at And subscribe for free to get all of our daily articles and the monthly magazine. We’d love to hear from you too. Send Trish a note, [email protected]

This broadcast is for entertainment purposes only and should not be considered personalized investment advice. Trading stocks and all other financial instruments involves risk. You should not make any investment decision based solely on what you hear. Trish Reagan’s American Consequences is produced by Stansberry Research and American Consequences. And is copyrighted by the Stansberry Radio Network.

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