February 15, 2011 President Obama's Budget, Commodity Prices and You | Glenn Be

February 15, 2011 President Obama's Budget, Commodity Prices and You | Glenn Beck With: Glenn Beck This is a rush transcript from "Glenn Beck," February 15, 2011. This copy may not be in its final form and may be updated. GLENN BECK, HOST: Welcome to "The Glenn Beck Program." Tonight, forget BMWs and iPads and jewelry. Do you want to know what the next luxury item is? Believe it or not, orange juice. So, I want to ask you this question -- what did you tell Washington to do in November? Did you tell them to increase or decrease the debt? Did you tell them to increase or decrease taxes? Increase or decrease spending? It was pretty clear what Americans said last November. Have Americans forgotten? Or has Washington? I'll explain. Come on, let's go. (MUSIC) BECK: Hello, America. There is something I want you to consider tonight, the president's budget. Has the country or any country ever devalued it's a way to economic prosperity? That you have to answer. I hope so -- because that is the path our government is taking us down. I've been warning for years that our current fiscal path is unsustainable. I said this under George W. Bush and I was mocked and called a fearmonger. And conservatives told me, oh, you're just trying to lose the election for George W. Bush, and it was innocence then now and it's nonsense now from the left. It's an unsustainable path. People in Washington on the left used to say it until they got into power. People on the right used to say until they got into power. It's political talking point. It's not. It's reality. And you get that. The American people understand that. Another thing I've been harping on is to prepare for the worst but hope for the best. I know it's controversial. It's almost like what our grandparents used to do. By the way, did you see the New York City and state has released an entire guide onto -- on what to do in case of a total meltdown? Do we have it here nor not? We'll show it to you in a minute. It's pretty amazing. Yes. Oh, the fearmongers -- or are they just preparing on what to do in case? How about the governor of Wisconsin? He's now telling the National Guard to prepare for civil unrest in Wisconsin. What a fearmonger. Or is he being responsible in preparing? More on that coming up in a few minutes. All the experts and politicians keep trying to soothe Americans over with warm tales of recovery and winning the future. I'd love to share those, but the reality on the ground isn't matching the -- hey, we're in the beginning of the recovery, you know? It doesn't. Talk about dangerous rhetoric. That would be it. The fed can keep playing tricks to mask the real problems but not for very long. Inflation, there's no masking the rising cost of inflation, is there? I mean, have you been to the grocery store? Here's what inflation is -- a persistent substantial rise in the general level of prices related to the increase in the volume of money and resulting in the loss of value of currency. Got it? First part, substantial rise in the general level of prices related to the increase in the volume of money supply. So, if they weren't printing anything and this orange juice was a dollar and then they started to print more money, the orange juice would cost more because there are too many dollars out there now trying to buy that one glass of orange juice. Well, is that happening? The experts say, of course, not. Really? Well, let's look around the world. U.K.'s inflation levels hit 4 percent. Eurozone's inflation levels jumped to 2.4, and that isn't it. Experts -- experts are now predicting -- try this one on for size -- that the new, and I'm quoting, the new luxury item in America will be this -- excuse me. Orange juice? They say factory prices and problem with drought -- factory prices could rise as much as 80 percent for orange juice and 60 percent for apple juice. Let me show you what is happening, the six-month price percentage moves. This is six months. This isn't over a year. Six months, with just a few of the necessities. Here they are. Cotton is up 125 percent. Six months, sugar 82; corn,59 percent; coffee, 41 percent; rice, 40 percent. Let's look at some others -- oats, if you're a horse, panic; copper, 36 percent; lumber, you want build a house, up 33 percent. Put some gutters on it, why don't you? Or just have that old-fashioned thing called electricity. Oil, 25.1 percent. During that same six months stretch, what has the dollar done? The dollar has dropped by 6 percent. Every time we print more money, the value of your dollar that you have earned at work goes down, making the price go up. By the way, we are now the number one buyer of our own debt. Oh, do you remember the old days? Old days when I told you -- it was about a year ago, I told you this and everybody said, "Glenn Beck is a fearmonger." Oh, there I am. Here I am. A year ago, showing who's buying our debt -- who's buying our debt and what's going on. "He's a fearmonger, that's crazy!" Hmm! Number one, tell you about cotton. Let me show a real life example. This is cotton. Just in the last six months, cotton has gone up 125 percent. So, you have to go out and buy a new shirt. It's a great shirt. This is a non-iron Brooks Brothers shirt. These are fantastic shirts. This shirt was six months ago, $79.50. Today, it is $88. Here it is. But the real hidden trick is the hidden value of your dollar -- it's like a hidden tax. The value on the same time of your dollar has dropped 6 percent. So, you need to add another 6 percent to the cost of this, because it takes more of your dollars to buy them. So, it makes it not $88 but actually $93 for this shirt. Does that sound like a recipe for success? Especially when the government continues to spend and print. Again, did you tell Washington in November to increase or decrease the debt, taxes and spending? Do you remember? Let me go back to the president's budget announcement today which basically amounts to pouring gasoline right onto the fire. It is $3.73 trillion budget. It is greater than the combined GDPs of France, Italy and Ireland. Those three countries, everything they spend, everything they buy, everything they sell for an entire year is what this budget is. It will also be the biggest one year debt jump in the history of mankind, $2 trillion of debt. For the man who said we have to get our deficits under control, he's not doing it. He's -- maybe it's like -- it's like golf, Mr. President. You play a lot of that. Low score wins, low score, not high score. He's tripled -- tripled -- the deficit in two years. But now, he says he's ready to slow it down. He wants you to believe that he's no longer going to spend. No, those days are behind him. Remember -- this is the same administration that spent the last two and a half years arguing and arguing and arguing that you had to spend in order to save the economy -- stimulus or debt, it's the only way. And those -- may I quote-- those Tea Party people will destroy the country if they get in there and start cutting spending. Now, all of a sudden, he wants you to believe that he has the virtue of spending cuts down. I'm going to go way out a limb here and say -- I don't think he believes that. Something in my tummy says, I don't think so. Let's look at some of the real cuts, because today is a new day, maybe the president -- the sky has opened up and all of a sudden, he's seen the light. Here he is today. Listen carefully. (BEGIN VIDEO CLIP) PRESIDENT BARACK OBAMA: What my budget does is to put forward some tough choices, some significant spending cuts so that by the middle of this decade, our annual spending will match our annual revenues. We will not be adding more to the national debt. (END VIDEO CLIP) BECK: That is fantastic -- our spending to match our revenues. That is great. And all you have to do is go to President Obama's budget page 171 to see him tell the truth. Here are the receipts. These are the things that are revenues and these outlays are our spending -- receipts and outlay. What we take in. What we put out. All right. Here's our deficit. Woo, bad one, $1.6 trillion and then $1.1 trillion. Uh, 2013 we're up to the middle of the decade yet, $768 billion, 2014, $645 billion in deficit. Well, OK, here's the middle of the decade. We're still $607 billion away from that. Here's what we're taking in and here's what we're spending, this should be zero and these two must match. Well, he must have meant 2016. No, it's actually going up here. 2017, no, it's down from the year before, but -- OK, 2018, 2019, 2020 -- oh, boy, it's getting bad again, 2021. Mr. President, I mean, I could be missing something or maybe you're just -- oh, what's that old-fashioned word, lying. Which is it? It's deficits every year through 2020. Now, his explanation for this obvious discrepancy was well, I'm not counting the interest on the debt -- oh, I know. Here I thought we were being honest. Oh, my goodness, that is so great. Isn't it great you just not count an entire category? But even if you do that -- still deficits every single year. He also promised to cut $1 trillion over the next 10 years. Whew, that is an average of $100 billion every year. That is two Joe Biden high speed trains. Whoa! That's California's pension losses. That's insanity -- in the scope of the entire budget, that's nothing. We're spending $3.7 trillion this year. And our national debt now has grown bigger than our economy. Every dollar spent on clothes, advertising, food, services, airplanes, products, slap chops, jails, roads -- you name it -- it's now equal to our debt. And we haven't even begun sending money to the state to bail out their union pension funds. And that's coming, my friends. If that wasn't good enough news for you -- Glenn, I'm -- I can't believe your show. There is some happy news. Yes, I know. Wait, there is more. Obama's budget also projects that the interest on our debt as a percentage of GDP will triple to an all time high of $554 billion by the middle of the decade. Yes, let me show it to you. Let me show you. OK? Here's the interest in 2010. Our interest was 1.3 percent of our GDP. That means all the money that we spend and make in the United States, OK? Here it is. Now, let's look what happens with our budget. Uh-oh, red is bad. Must be like the golf thing. Now he's confused because that was like high score wins -- no, Mr. President. Low score wins. Here's what it means -- if your salary stayed the same -- actually, the government says it's going up -- we'll be lucky if our salary stays the same. But your credit card interest goes up, that means the percentage of your credit card interest is growing a bigger portion of your salary that you to have pay. And this is just the interest to keep the loan sharks at bay. You're not paying the credit card off. You're not getting anything new. You're just paying the interest on that debt. And we haven't even talked about the rising interest rate yet. Here's a spooky scenario for you. Do you think the way we're spending is going to make us the next industrial leader and we're just going to be having -- we're going to be -- we're going to be crapping fluorescent light bulbs from here until eternity and the world is going to washing them off and use them, because they're like "These are American fluorescent light bulbs, these are great"? Or do you think the way we're running our country is going to put is the -- I don't know, maybe the position of not the world leader in invention or manufacturing? Yes, you have to decide on that. Now, if you think it's a decline, our revenue, our GDP goes down. Now, next question -- will our low level interest rates stay low for the next 10 years? China says it just like, I can't get enough of investing in America. Any sane person says, no, I don't think they are going to last this long. The amount of the interest payment, if it goes up and our percentage of income just stays flat, what happens? You either default or you need to make more money. Oh, hey, we could get a third job. Wouldn't that be great? And we could have a 70 percent income tax. Oh, this is going to work out well. Let me explain it one more time a different way. You remember a few months ago when the government was out there talking about the billing credit card companies charging people too high of interest rate. Many Americans have become saddled with too much debt and they were defaulting more frequently. And, of course, Barney Franks stepped and said, we got to force those credit card companies to do something about it. Yes, so they made sure they wouldn't have rates raised. Well, there's no one in this scenario to step in and bail us out. No, not even super Barney can do it. It's time we put the scalpel away and get out the machete because Washington is clearly not getting the message that you sent. Because you said, in Washington, you want to decrease the debt, taxes and spending. I use an axe or a machete or a flame thrower if I have to because everything has to be cut. But let me explain, this is what you said. Now, who are you to tell Washington? Well, let me show how it works. This is the way our country works. This is the way everything works. There's a guy who's in his garage and has an idea. He says, hey, I know, we can build a company and we can sell all kinds of software crap and people will buy it like crazy, but it's going to take money. What do we do? We convince people to buy shares in our company because we need their money. So, the shareholders send their money to the company because this guy, number one, has a good idea. Got it? That's how companies work. Let's just change the company to the country and change Bill Gates to this idea master. Got it? What he is doing is he is saying, I've got a good idea to run your company because the last guy sucked. Great. So, the shareholders got rid of the last guy and this guy's ideas -- but this guy is not doing what you the shareholders told him to do. What do you do? The first thing you do is you remember this -- I know it says number one here -- but remember it's employee number one. You, the shareholder, are the boss. You're the boss. Fire the employees that aren't doing the job. You got to cut. People are saying, oh, well, we can't cut health care. We can't cut Social Security. We can't cut defense. We got to cut all of it, gang -- all of it. Let's try defense because that's my favorite. Defense -- will it make the world more stable or less stable? Let me ask you this: Will it make your products more expensive or less expensive? Let me take the case of Suez Canal, everybody is talking about Egypt. Let's look at this. This the Suez Canal right here, OK? Here is Egypt, goes right through Egypt. Right now, we get our oil from Saudi Arabia or wherever, and the oil goes through the Suez Canal, right through there, through the Mediterranean, out the Strait of Gibraltar, to us, to England, and over here -- to Europe and over to England, got it? Now, let's just say that things become increasingly chaotic in the Middle East -- I know, it would never happen. Freedom and democracy has taken root. If things, crazy talk, got a little crazier, could the Suez Canal be shut down? Yes. Then what happens? You have to -- if it's here -- you have to go and take those tankers all the way here and go to Europe and England or here to the United States. Don't worry. That only means going over -- you know, around Africa, Africa. It's only extra 10 to 15 days. And extra bonus, they got to travel right pass this little country here, yes, that's Somalia. Remember, the place famous for the pirates. Do you think your price is going up or down? You see, the rest of the world used to have pirates running rampant all over the oceans, but thanks to us, that threat has been reduced to places like Somalia. If we cut defense, which we will have to do, and there is not a lot of sea protection against these dirt bags, what do you think happens to global trade? If we keep heading down the path, the unsustainable path, and only play politics, if we don't abort and get off this path quickly, we're not going to have people to fight the Somali pirates. You're not going to have health care. Hell, you're not going to be able to have Slap Chops because it ain't going to be 1999 anymore even if you do act now. Why? Because we're losing value in the dollar. Content and Programming Copyright 2011 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2011 CQ-Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.     Carl Ray Louk "FRIENDSHIP NEVER ENDS" SG-1996 "LET LOVE LEAD THE WAY" SG-2000 "THE PHOENIX SHALL RISE" SD "EVEN A MAN WHO IS PURE IN HEART AND SAYS HIS PRAYERS BY NIGHT, MAY BECOME A WOLF WHEN THE WOLFBANE BLOOMS AND THE AUTUMN MOON IS BRIGHT." LT-1941 "FLESH OF MY FLESH; BLOOD OF MY BLOOD; KIN OF MY KIN WHEN SAY COME TO YOU, YOU SHALL CROSS LAND OR SEA TO DO MY BIDDING!" 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