Advisor to Presidents Regan and George H.W. Bush, Al Cárdenas, and Fmr. spokesperson for the U.S. Mission to the UN, Hagar Chemali, discuss Trump's Truth Social going public, ISIS attack in Moscow, and the impact of inflation. They explore the financial and political implications, global tensions, and personal immigrant stories highlighting American identity and unity. The podcast also delves into inflation's impact on consumers, monetary policy decisions, the crisis in Haiti, and national security threats.
Trump's Truth Social went public with concerns over foreign influence and user base compared to other social media companies like Pinterest.
Recent ISIS attack in Moscow emphasizes vulnerabilities in security measures due to global tensions and potential exploitation by non-state actors.
Reported inflation rate may be inaccurate due to adjustments by excluding interest costs, impacting borrowing costs and highlighting the importance of maintaining the independence of the Federal Reserve.
Deep dives
Trump's Financial Vulnerability and Truth Social's Stock Valuation
Trump is facing mounting legal bills and he recently took Truth Social public, which ended with a market valuation of $8 billion. Despite its initial valuation, concerns arise over the platform's user base compared to other social media companies like Pinterest.
Foreign Influence and Investment in Truth Social
There are concerns that foreign actors could indirectly influence Trump through investments in Truth Social. The possibility of such influence creates vulnerabilities, especially with major investors holding stakes in both Truth Social and TikTok's parent company, potentially shaping relationships and policies.
Terrorist Attack in Moscow and US-Russia Relations
A recent terrorist attack in Moscow claimed by ISIS K highlights tensions between major military powers like the US and Russia. The attack reflects the vulnerability caused by distractions in security measures and the potential for non-state actors like ISIS K to exploit global tensions for their agenda, posing challenges for international security.
Impact of Inflation Calculation on Borrowing Costs
Bureau of Labor Statistics adjusts the inflation rate by excluding interest costs on mortgages and loans from the calculation, resulting in a lower reported inflation rate. Harvard economists, including Larry Summers, found that using the original formula, inflation peaked at 18% in November 2022, significantly higher than the reported rate. Despite declining consumer sentiment, interest rates are at their highest levels, affecting borrowing costs for mortgages, autos, and credit cards.
Independence of the Federal Reserve and Political Pressure
The discussion highlights the importance of the independence of the Federal Reserve in making monetary policy decisions. Pressuring the Fed for political gain could lead to risks and interfere with the Fed's goal of regulating interest rates in the best interest of the economy. The episode emphasizes maintaining a healthy dialogue on monetary policy to inform the public and prevent political manipulation for short-term gains.