Drilling in Alaska? ‘Reality’ Bites Joe Biden

Trish Regan: First it was Hiden Biden and now it’s Lyen Biden?

The President officially announcing one of the largest ever drilling projects on federal land, an $8 billion project with Conoco Phillips for 600 million barrels of oil over the next three decades. I mean, I think it’s smart. Don’t get me wrong. But wow, this was the same guy that promised absolutely no drilling on federal lands. There’s going to be a lot of angry people about this. But I’m going to tell you something; Reality bites.

You got to do what you got to do so that you can save the American people and save the American economy.

Hello, everyone. Welcome to the show. I am Trish Regan. Do make sure you subscribe. Do make sure you hit that little bell on YouTube on Rumble. You can follow me on locals as well. Trish Regan dot locals dot com. Portions of today’s program are brought to you by legacy precious metals. Go over to legacy PM investments dot com. You know, given what’s going on right now, given what we’re seeing on Wall Street, I can tell you I’m glad that I have gold in my portfolio. And this is one of those investments that kind of helps you over the long term in terms of hopefully preserving the value of your U.S. dollars. There’s no way out of this mess. We are going to continue to run very high debt and deficits for the foreseeable future. We’re looking at possibly a banking meltdown in 2023. One of my guests coming up has a few things to say about that. But in the meantime go to Legacy Precious Metals. Or, you can call them at 1-866-589-0560-, 1-866-589-0560. Or go to their website they actually have the ability for you to buy gold direct right there on the website.

Anyway, let’s get back to what’s happening right now, because this week, the Biden administration officially approved one of the largest ever drilling projects on federal land. They want to go up to Alaska and get 600 million barrels worth of crude. This would be in Alaska’s North Slope. I guess, you know, this means he he didn’t really mean what he said back when he said no new drilling projects. I remember that. You remember that. In fact, he was on stage with Bernie Sanders and they were debating and I quote, he said, ‘no drilling on federal lands’.

President Joe Biden: Number one, no more subsidies for fast food industry, no more drilling on federal lands. No more drilling, including offshore. No ability for the oil industry to continue to drill. Period ends.

Trish Regan:So much for that. He did an interview with The Daily Show trying to justify all this.

President Joe Biden: We’re going to need fossil fuels for at least the next ten years. It’s not like tomorrow. We can turn it all off, number one. And so we’re going to need fossil fuel. But we have to do is we have to I have I’ve said no more drilling off our ocean. I mean, a whole range parts is still has to be there has to be the ability to generate some energy.

Trish Regan: I mean, I don’t even know what to say other than Joe Biden has grown up. Joe Biden has become an adult. I mean, it took him until he was 80, but he’s now officially an adult. He recognizes that you can’t just wave a magic wand and suddenly have a whole the economy. It’s absolutely unbelievable. These guys never had a plan. Never, ever had a plan. They just thought that somehow they could talk a good game. Maybe that would get them elected to office, because, you know, this is really resonating with the AOC types of the world. Jennifer Granholm, do you remember when she went on Bloomberg? This is the energy secretary and she was asked by one of my former colleagues there because I used to work at Bloomberg. Tom Keene, whether or not she had an energy plan and all she did was laugh.

Tom Keene, Bloomberg: It is $2.89 a gallon. I guess that’s better than in California. What is the Granholm plan to increase oil production in America?

Energy Secretary Jennifer Granholm: Oh, my God. That is.Hilarious. Would that I had the magic wand on this.

Trish Regan: I can’t believe how incompetent these people are. Today, we’re looking at higher and higher energy prices. But these pie in the sky lefties pretend that somehow you make the switch overnight. The energy secretary again, Jennifer Granholm, she actually proposed that everybody just go out and buy a new skivvy. Remember that one? Because they’d save on gas. The left is waking up to the harsh reality that we are dependent for the foreseeable future on fossil fuels. And while we can try and weave some of the other stuff into the economy, you’re not going to have an overnight transition. If you’re on the left, however, I imagine you’re kind of annoyed, right, Because this was sort of a bait and switch like tactic. Yeah, that’s what it is. It’s bait and switch. Who says one thing and then he does something else entirely. All right. I want to turn to the markets because, you know, they’re on fire today and not for the right reasons. You know, this is what’s so sad. They just want the sugar party to continue. And what they have learned I’m talking about traders is that, well, the Federal Reserve really has no choice but to keep interest rates low. Because you’ve got an actual banking crisis on hand. I mean, how are they going to raise 50 basis points as they had intended a half a point? How are they going to do that to fight inflation, which, by the way, they need to fight when you’ve got all of this trouble over here? Speaking of inflation, I mean, just take a look at the numbers. We’ve got CPI out today, the Consumer Price index showing that inflation is up 6% from where it was last year. If you strip out food and energy, which I don’t love doing because, you know, we actually need food and energy. But if you strip that out, what you do see is that inflation is everywhere. It’s up 5.5% and it increased 0.5% over the last month. Wow.

You really drill down into the numbers. And what do you see? Shelter is actually primarily the reason why you’re seeing the increase. In fact, about 80% or 70%, rather, of this number, this this CPI report is coming from this increase in shelter expenses. In other words, people are shelling out more on rent right now in order to house themselves. We have an inflation problem. The problem is we also have a banking problem. So what do you do? Here to discuss, I am joined today by the CEO of Key City capital, Ty Lasater, one of the wonderful sponsors here on the program.

Welcome back. Everything’s moving at a very, very rapid pace right now. But bottom line, the feds are saying, okay, you know what? We’re going to guarantee deposits at any of these banks by opening this window. Do you think that’s the right move?

Tie Lasater: Well, I think we absolutely needed it. The Fed absolutely had to back in and and ensure otherwise. You’re going to see a much larger problem with small business across the United States. We’ve got maximum $250,000 that the Fed is going to insure. I was talking to another business owner in Dallas where I am yesterday. And I mean, there are small business, $5 million a year in revenue. So they’re not going to they’re not going to lay that out across ten different banks and the deposits that they have in order to fit within the third mandate.

Trish Regan:  Right now, it’s just too much red tape.

Tie Lasater:  Exactly.

Trish Regan:So they did what they had to do, but now everybody’s still freaking out, even though the Fed says, don’t worry, you know, we’re going to be here all alone. And whatever money. This fear factor. Right. This is what’s so dangerous in markets because once the fear factor starts, there are worries about contagion. Are you concerned that we could see multiple bank failures in 2023?

Tie Lasater: I’m no doubt that there’s going to be bigger problems. I don’t know that we’ll see multiple bank failures, but we’re going to definitely see faculties across a number of regional banks. There’s a lot of consumer spending going on, great jobs market, and all of a sudden you start to see the effects of rising interest rates and the difficulty to get and obtain cash and money. And yet we’re still spending. We would have increased interest rates all at one time or maybe over a two time period to get to a point that would affect inflation. It would have been much better than seeing what the lingering effects of a slow increase in an interest rate.

Trish Regan: Yeah, you and I are on the same page on that one. I mean, I just I can’t believe what they did. And I am disgusted with our Federal Reserve and frankly disgusted with our members of Congress, specifically folks in the Biden administration and the Democrats that pushed through all of this, spending $1.2 trillion in infrastructure that we know wasn’t really Infrastructure Inflation Reduction Act, which just created more inflation. And today we learned that CPI, consumer Prices, Consumer Price Index came in at 6% instead of the 6.4%. So people are like, whew, it’s coming down, but it’s still 6% higher than it was. We have a major inflation situation, however, that can’t come in and really do much right now because you got a banking crisis instead of saying, let’s back off all this money printing. They continued it and they continued it and they continued it and they allowed it to go on all while simultaneously the Biden administration put even more money into the system. And that’s what boggles my mind and really angers me. Why is such a mess out there? I mean, really, And investors are scared. I do believe, as you said, the economy is on stronger footing than maybe some of the bank headlines would lead you to believe. How should investors think about diversification? And okay, shameless plug because you’re one of our sponsors and you have a real estate portfolio. So maybe tell us a little bit about that. But you know, also what what do you tell people? I mean, I was I was excited about Treasuries, but I don’t know that I can be so excited anymore because yields are going down.

Tie Lasater: But I focus on and it’s it’s a tough time to do this because interest rates are rising. So real estate is is tough, but you have to be careful. And we’re going in on real estate deals with a lot less leverage now than we were, call it 18 months ago. 18 months ago, we were going in at 75% leverage. Now we’re going in at about 60 to 62%. So obviously. That diminishes cash flow to investors a little bit. However, it’s still cash flow. When I put $100,000 into one of our investment funds, I’m still seeing 2 to $4000 a year in cash flow. But that $100,000 is growing in value. And so I think that’s a big thing. You know, physical assets, because leverage on real estate has gone down. When leverage on real estate matches, the leverage that you can get on buying a business. Both of those assets perform very well. They distribute cash flow and they grow in value.

Trish Regan: Tie Lasater, CEO of KeyCityCapital.com. One of the terrific sponsors of this program. Thank you for that. And we look forward to talking to you again, Ty. Thank you.

Speaker 1: Turning right now to politics. Loads of questions right now as to who’s going to be the 2024 nominee for the Republican Party. Lots of questions about who’s going to make it on the Democrat side, too. Joe seems to think he’s running. I’m not so sure that’s all going to pan out. And by the way, I have no idea who the heck they would put in, because let’s face it, Kamala doesn’t have the likability factor. Deep rooted edge really screwed up multiple times. But he’s Palestine. Ohio comes to mind, of course.

Secretary Pete Buttegieg:  In retrospect, should you have come a little sooner? So again, in terms of the timing of the visit, I’m trying to strike the right balance.

Trish Regan: And then Gavin Newsom, well, the whole state is struggling there in California. And you’ve got a massive drug crisis there in San Francisco. So they don’t have a very deep bench. The good news for the Republicans is I actually think they do have a very deep bench and they have a lot of really qualified people that are out there. But the one that sort of is front and center, of course, and is scoring very well in all the polling thus far still happens to be Donald Trump. Can anyone fill his shoes? Pretty tough to do. He knows it. And so he’s coming out swinging and he’s swinging hard at anyone who might try to knock him off the throne. Here he is in Iowa, lashing out at Florida Governor Ron DeSantis. Take a listen.

President Donald Trump: But you have to remember, Ron was a disciple. A Paul Ryan who is a rhino loser who currently is destroying Fox and would constantly vote against entitlements.

Trish Regan: So he doesn’t like Paul Ryan. A lot of people that supported Donald Trump certainly do not like Paul Ryan. So that’s quite a dig. But then he doubles down and comes up with what a lot of people who like Donald Trump would consider an even bigger dig. Listen to this.

President Donald Trump: But Ryan, Paul Ryan is a big reason that Mitt Romney, I’m not a big fan of Mitt Romney lost his election. And to be honest with you, Ryan reminds me a lot of Mitt Romney.

Trish Regan:  Boom. There it is. Ron DeSantis reminds Donald Trump of Mitt Romney that that will surely make it more challenging, I guess, with the base to see DeSantis succeed. But who knows? I mean, look, at least he’s got this going for him. He did do a decent job in Florida, but there’s a lot of people out there, one person that nobody’s talking about who really hits home on a lot of the social issues but has the economic chops to back him up would be Glenn Youngkin. I’d be interested to see whether or not he decides to get into things.

Mike Pence is apparently getting very ready to declare. We have Nikki Haley. There’s Mike Pompeo. So we’ll see how it all shakes out is an eternity between now and 24. I would say that.

And you know, who would have ever imagined that Donald Trump would have gotten the nomination? Who would have imagined when he first came down that escalator? Remember that?. So anything can happen in politics. Make sure that you keep it tuned here. If you have not done so already, make sure that you hit the subscribe button. Make sure that you hit the alert button because we got all kinds of great interviews. I’m here every day with you and I want to make sure that you see the content.

Anyway, Fluffy is getting ready to vote. He’s not sure who he’s going to vote for yet. He actually has expressed some interest in running for president himself to me. And I said, we can work on it. I know that. I know that if they were to put up Joe Biden, well, Fluffy would certainly do a better job. And you’ve heard me say, of course, he’s for sure much cuter and for sure much smarter than Joe Biden. He probably also has a better memory than Joe Biden. I know he always remembers when I pull out the rough greens. For him, the rough greens is the little supplement that I sprinkle onto his food every single day. And it’s great because it’s like a vitamin. It ensures that he gets all the things that he needs to live a long and healthy, happy life. Fluffy He had a lot of allergies. I’ve told you guys that before, and you actually were really helpful in terms of weighing in with some ideas and suggestions on how to help deal with those allergies. And so I made some changes to his diet, and part of those changes included Dr. Dennis Black, naturopathic doctor Dennis Black’s Ruff Greens. Dr. Black is really committed to making sure dogs are healthy. He’s got two beautiful dogs of his own. And so when I stumbled across him and I stumbled across this product and I let Fluffy try it out, it was a home run. He loves it. And a lot of those allergies, I can tell you, are not there anymore. He was dealing with ear infections and this, that and the other because of the allergies. So that makes me really, really happy. If you have a dog and I hope you do. If you don’t, you should get one wonderful best thing I ever did. Best thing in the world that I ever did was get a dog. Anyway, if you have a dog, you should consider this. I want you to go over to rough greens. Go to Ruff Greens.com/Trish and sign up for your free trial bag.  It’s your free jumpstart trial have to do is pay for shipping. I’ll be at your house in a couple of business days and you can see firsthand the difference it will make in your dog.

It is of course, wonderful to have all of you guys here. I think we’re going to be going through some very choppy waters. I think there’s going to be a lot of volatility as we look forward to the Federal Reserve meeting next week. I do think you’re much more likely to see a 25 basis point or quarter of a percent hike in interest rates as opposed to the original half point if they do nothing at all, as the folks over at Goldman Sachs, where I once worked, are suggesting, then I think it’s indicative that we have even bigger problems than we could have ever possibly imagined.

The Fed is sort of like nationalized the banking system in a weird way. I mean, they’re saying to every bank, you know what, we’ll take whatever you got 100% on the dollar, 100 cents on the dollar. So if there are bank runs, we’re here, we’re going to open the window. This is weird. I think it’s really weird. And the stakes are high. So we’re going to continue the conversation. I’ll see you back here tomorrow. Make sure that you have subscribed, that you get the alerts. We get tons of little clips that I want to make sure that you’re going to continue seeing. And we’ll talk tomorrow. [00:13:36][0.0]