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This is a rush transcript from “Your World,” May 20, 2022. This copy may not be in its final form and may be updated.
CHARLES PAYNE, FOX NEWS ANCHOR: Gas, airfares, Uber rides, even chicken wings, you name it, these days, we’re all paying a whole lot more for it. But how long will Americans put up with it?
And what about investors? The S&P 500 briefly dipping into bear market territory, although we didn’t close here today.
Welcome, everyone. I’m Charles Payne, in for Neil Cavuto. And this is “Your World.”
And we have got FOX team coverage with FOX Business’ Jackie DeAngelis on the fallout from all of this and Madison Alworth at a gas station in New Jersey where folks are digging deep just to pay for it.
We begin with Jackie.
JACKIE DEANGELIS, FOX BUSINESS CORRESPONDENT: Good afternoon to you, Charles.
Well, let me start with this stat. Even with the small gain that you’re seeing on the Dow, it’s the first eight-week losing streak for the Dow Jones industrial average in 90 years, since 1932. Now, you’re correct as well that the S&P 500 did touch that bear market territory.
And so that was pretty significant in today’s session as well. Bear market territory, of course, is when the index is down 20 percent from its highs. Now, the selling on Wall Street continues as investors are worried about inflation, the consumer and a recession.
The concern, of course, is that the Fed can’t tamp this inflation down quickly enough and that the consumer will just have to go without nonessentials to pay for essentials. And, well, that means that the economy will eventually take a big hit. And if that doesn’t do it, well, the flip side is that rate hikes, they are coming, and they will put us into a recession as well.
So, many investors, analysts, and company CEOs are pointing the finger at Bidenomics, excessive spending, money printing and regulation, as the causes of what put this country into a no-win situation. With Walmart, Target and Kohl’s missing their earnings numbers and warning that Wall Street should brace for headwinds, investors have been hitting the sell button pretty hard.
Investors also aren’t looking backwards here, Charles. They’re selling pricing in the difficulty that they expect to come. Today’s sell-off was broad-based. Big tech, growth stocks, they led the sell-off. But retail, semiconductors, industrial stocks, they dragged on the market too.
The Dow the S&P 500, the Nasdaq seeing their third, well, I guess not straight day of losses, just because the S&P and Dow ticked slightly higher there. But I want to take a look year to date, because this is pretty ugly if you’re an investor and you’re watching your 401(k).
Year to date, the markets have been really struggling. The Nasdaq, which is the one that we have up right now, the high-growth tech names closing at their lowest since November of 2020 — Charles.
Jackie, it has been one rough ride. Thank you so much.
And speaking of a rough ride, folks, the average gas price already topping $5 a gallon in at least five states. In California, it’s over $6.
Madison Alworth is at a gas station in Hoboken, New Jersey, where drivers are fuming — Madison.
MADISON ALWORTH, FOX NEWS CORRESPONDENT: Charles, we have hit a national record high gas price for the 11th day in a row, and there is no signs of slowing when it comes to these prices.
So the national average gas price today, you’re looking at an average of $4.59 per gallon. That is up over 10 cents from a week ago and nearly 50 cents from just a month ago. We have been talking to drivers here all day, and some are now making choices to avoid the pump.
I spoke to an Uber driver who is choosing to make less money over fears of these high gas prices.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: So, what I do is, like, I try to work weekends only now, because, on the weekdays, it’s kind of slow. So, instead of wasting gas, I just cut down the days and work the weekends.
(END VIDEO CLIP)
ALWORTH: Gas is now up over $4 in every single state, with many analysts anticipating that it could hit $5 a gallon this summer.
(BEGIN VIDEO CLIP)
ANDREW LIPOW, PRESIDENT, LIPOW OIL ASSOCIATES: We’re looking at high gasoline and other energy prices for the foreseeable future.
The fact of the matter is, is that oil demand around the world is continuing to grow, while the supply is more difficult to come by.
(END VIDEO CLIP)
ALWORTH: Heading into the weekend here in New Jersey, drivers are going to be paying an average of $4.77 a gallon.
Nationally, families are expecting to pay $5,000 this year in gas. Of course, Charles, that number could go up if these prices continue to go up, as analysts expect.
PAYNE: Yes, it’s going to be a rough summer.
Madison, thank you so much.
And, of course, folks, both stocks slumping this week, and, of course, prices are surging. Should the White House and Democrats be worrying? I mean, just 32 percent of Americans approve of the president’s handling of the economy? Sixty-three percent disapprove. A whopping 85 percent expect the country to be in a recession next year.
With me now, market watcher Larry Glazer, Democratic strategist Kristen Hawn, along with Patrice Lee Onwuka with the Independent Women’s Forum.
Patrice, I will start with you.
It’s just — there’s a dark cloud and a dark malaise that’s over this nation that we haven’t felt in decades.
PATRICE LEE ONWUKA, INDEPENDENT WOMEN’S FORUM: It’s true, Charles.
I mean, when 85 percent of Americans are saying in polling that the country is heading in the wrong direction, this tells you something. Inflation is the top issue. It’s top of mind. And that’s going to portend some trouble for, I think, Democrats in the midterms, when you consider that right now they have an enthusiasm gap that is favoring Republicans.
And when you consider likely voters, more Republicans are enthusiastic to come out with the — come out to the polls in November compared to Democrats. It’s a 17-point gap.
ONWUKA: That’s going to be very hard to make up, especially if gas prices and energy and every other price continues to stay so high.
PAYNE: You know, Kristen, even putting politics aside, if you look at consumer sentiment, it’s in freefall. CEO sentiment is in freefall. All kinds of investor sentiment is in freefall.
How does the White House push back against this? Or are they going to stick with the sort of, hey, it’s greedy — it’s greedy corporations and Putin’s fault?
KRISTEN HAWN, DEMOCRATIC STRATEGIST: I mean, I think that it’s impossible to put politics aside entirely.
I mean, we have gone through a really, really rough three years, and people are unhappy. And I think it’s right that any political party in power, whether it’s right or not, and whether the Republicans have a plan that they put forth for when they — if they take back the majority, which they have not, it doesn’t really matter.
I mean, people are hurting. And we need to acknowledge that. The president is doing what he can to address inflation. But we all know that it’s limited.
PAYNE: Well, let me — real quick, because I want to get to Larry, but two things you said that kind of — is the president doing everything that he can? And is he truly acknowledging it?
Every time the president speaks, with all due respect, all he does is brag. No administration did more than I have. Look what I have done. And then he runs off a checklist of things that, heck, if you gave me $5 trillion, I could achieve it too. He doesn’t come out immediately and says, I really do, honest to goodness, feel your pain.
I’m going to call off the war on fossil fuels. I’m going to do everything I can, even if it goes against our core, even if I got to put the climate agenda on hold. I’m going to make sure I make this right for you. He doesn’t do that.
HAWN: I mean, he has acknowledged it.
But, also, you’re looking at him working with — there’s a role for Congress to play, and they’re playing it, actually, right now. We don’t talk about it very much. The Republicans and Democrats have come together to try to figure out how to pass some bipartisan legislation to address this.
But can the president be more forceful? Of course. But this is something that everybody’s having to deal with that.
HAWN: And Democrats up and down the ballot are acknowledging it. They’re talking about it. It’s difficult to address, for sure.
PAYNE: Hey, listen, a lot of Dems are bailing out, and those who are trying to stay in Congress are, to your point, being a little bit more forthright.
Larry, I will go to you on the market side of this, because the stock market is reflecting these recession fears. The stock market is reflecting a consumer that’s running out of money.
This week said a lot about the economy.
LARRY GLAZER, MAYFLOWER ADVISORS: That’s right.
Charles, when gas, food and energy are making new highs, of course stocks are going to be making new lows. The only thing lower than stocks this week was the president’s approval rating. And I think when you look at these recession fears, we hadn’t seen this type of recession fears until this week.
Target really scared people. Walmart really scared people. Ross Stores really scared people. And I think people are starting to get the concern. The consumer is worried about a recession. A third of Americans are saying they can’t pay their bills, right? More than 50 percent of Americans are living paycheck to paycheck.
So that $85-a-gallon — $85 fill-up at the gas tank, that comes from somewhere. It’s coming from Target. It’s coming from Walmart. And two- thirds of this economy is the consumer. If the consumer gets nervous, they’re going to vote that way in midterm elections. And you will see that play out.
There is right now the president watching — wearing a recession badge going into November. That’s not the badge they want to wear going in at the end of the summer.
And, Patrice, the old saying in economics was the cure for high prices was high prices. That hasn’t been the case. Now we got the Federal Reserve, which is also trying to undo their handiwork and deliberately slow this economy down. And many people think that’s going to help break its back instead.
ONWUKA: Well, I mean, that’s going to help. Certainly, it’s going to slow down the boom in the housing market.
But we still have a demand problem, right? And the idea that the — that those in power want to continue to spend trillions of dollars through Build Back Better, through new entitlement programs, that has — we have seen over the past a year that has fueled inflation.
And so I don’t think that there are a lot of good ideas coming from the left on how to deal with price — with inflation. Price gouging is not the key driving force. This is — this is really a demand and a supply problem. And I don’t think anyone in Washington has good solutions.
PAYNE: Well, they better come up with them.
Thank you all very much. Appreciate it.
PAYNE: So, with migrants rushing in, time to extend Title 42 is running out.
PAYNE: As the clock ticks on Title 42 going away on Monday, the clock is also ticking on a judge’s ruling to possibly keep the rule in place. And that could come at any moment, folks.
We will be talking to Border Patrol Council President Brandon Judd on what steps the Border Patrol officials are actually taking.
But first to Bill Melugin, who is down in Eagle Pass, Texas. And Bill has done an amazing job covering this saga from the very start — Bill.
BILL MELUGIN, FOX NEWS CORRESPONDENT: Charles, thank you.
What we’re waiting on is this judge’s ruling. If he does decide to let Title 42 drop on Monday, DHS’ own worst projections show that we could be seeing more than half-a-million border crossings in a span of just 30 days.
To put that in perspective, that would be more than double last month’s numbers, which were the highest in DHS history. We want to show you some video we shot out here last night. Take a look at this. This was in Brackettville late yesterday evening. We were with Texas DPS as they tried to pull over a human smuggler.
Boom. Illegal immigrants start bailing out of the vehicle, running on foot, trying to evade from troopers. The driver stayed in the vehicle, as did some other adult men. They were hiding in the back of that pickup truck. They decided it wasn’t worth it to run.
But we see this constantly down here. That driver, that human smuggler ended up being a U.S. citizen from Florida. Sometimes, U.S. citizens will come down here to the border recruited on social media to participate in human smuggling.
Then take a look at this video. This was earlier this morning here in Eagle Pass. We witnessed one single massive group of 167 migrants cross illegally all at the exact same time, almost all of them single adults.
This sector has been getting overrun with crossings in recent weeks. Just in a 24-hour span, Del Rio Sector saw more than 1,800 illegal crossings, many from Cuba, Colombia, Venezuela, and Peru. You take a look at this video, same group from a ground perspective.
Looking at the bigger picture, Del Rio Sector, where we are, has had more than a quarter-million illegal crossings since October 1. Their numbers are up about 147 percent over the same time last year. Keep in mind this is one single sector on the Southern border.
Take a listen to what Lieutenant Governor Dan Patrick had to say about what will happen if the Biden administration does let Title 42 drop.
(BEGIN VIDEO CLIP)
LT. GOV. DAN PATRICK (R-TX): If he repeals Title 42, you’re talking about as many people coming in this first term of the Biden administration, more people coming here illegally that we apprehend, than live in New York City, and almost twice as the city of Houston.
(END VIDEO CLIP)
MELUGIN: So what would a real-world impact look like of Title 42 if it drops here at the border?
Well, you look at last month’s number. In April, they expelled about 95,000 migrants from the United States using Title 42. If Title 42 is allowed to drop, a lot of those expulsions would then flip to releases.
We will send it back to you.
PAYNE: Bill, thank you very much.
Let’s get right to Brandon Judd, president of the National Border Patrol Council.
Brandon, still waiting on that decision. In the meantime, how are your people preparing for all of this?
BRANDON JUDD, PRESIDENT, NATIONAL BORDER PATROL COUNCIL: There’s very little that can be done to prepare for an influx of what we’re expecting.
When you look at, historically, what our numbers should be today, we should be apprehending somewhere between 1,000 and 1,500 people. That’s in a normal year. Right now, we’re apprehending about 8,000 people, which pulls so much of our resources out of the field that it creates artificial gaps. The cartels are able to bring more of their valuable products across the border.
When you see all those groups — Bill is doing a great job down there. And when he shows you all those groups of people that are just crossing the border and giving themselves up, that forces the Border Patrol, that forces us to send our resources to those areas, take those people in custody, which pulls our resources out of the field to do the processing.
That’s why this situation is so scary. And when you look at what’s going to happen, what’s coming if Title 42 goes away, it becomes astronomical. That just means that we’re just not going to have anybody in the field actually patrolling the border, doing enforcement duties, which is going to give the cartels complete control of all of our borders.
PAYNE: Brandon, I read where there are a whole lot of folks waiting across in several Mexican towns for Title 42 to go away. And so the numbers in terms of the — sort of an onslaught, the immediate onslaught, 18,000 a day, 540,000 in the first 30 days, that would shatter the record, which is already shattering records.
When they wait, instead of coming over with that group we saw today, what does that tell you? Does that mean that they have no intentions at all of even complying with any of the rules, as opposed to the folks who came over orderly today and turned themselves over?
JUDD: No, none at all.
But the reason why those individuals are waiting is because they’re from countries that are still amenable to Title 42. What Bill pointed out was, he showed people that were crossing the border illegally that were from Nicaragua, Venezuela, Cuba. These are countries that have been carved out of Title 42.
That’s why these people are coming in. They know that, once they crossed the border illegally, they’re going to be released, or, in other words, they’re going to be rewarded for violating our laws. And that’s why so many people are crossing the border right now.
Those individuals that are waiting in Mexico right now, they’re still amenable to Title 42. That’s why they’re not crossing. But once Title 42 goes away, they also know that they’re going to be released. And that’s when they’re going to start coming.
JUDD: And that’s why the numbers are going to jump up
PAYNE: The morale, the esprit de corps, I mean, what — how — when you feel like this is going to happen and you’re bracing for it, what’s everyone saying? What do all the folks in your organization say?
JUDD: There is absolutely no morale right now.
We put that uniform on because we want to go out there and we want to protect the American public. But when we — when we can’t do that, when we know that we’re going to be tied up doing administrative duties, rather than enforcement duties, that’s when morale sinks.
The only reason that we still even have a work force is we’re hoping that something is going to change. We’re hoping that we are going to effect eventually be allowed to do our jobs again, protect the American public, secure our borders, so that no more of our citizens died because of drug overdoses or so — to ensure that no more criminal aliens or aliens from special interest countries enter our country illegally.
JUDD: That’s the only reason that we continue to go out and do the job.
PAYNE: All right, well, we’re here. We will continue on this story. It’s so important, the orderly control of our Southern border.
Brandon, thank you so much.
JUDD: Thank you, Charles.
PAYNE: So, as gas prices keep running up, is there anything happening in D.C. that would bring them down?
(BEGIN VIDEO CLIP)
JENNIFER GRANHOLM, U.S. ENERGY SECRETARY: It is not administration policies that have affected supply and demand.
SEN. JOSH HAWLEY (R-MO): How can you say that, when the price of gas was up over 30 percent from January to…
GRANHOLM: If you could let me answer…
HAWLEY: Answer my questions. And it’s my time, Madam Secretary, so why don’t you answer my question?
(END VIDEO CLIP)
PAYNE: The good news, your money — for your money today, the Dow rallied into positive territory, after being down 617 points.
Now, here’s the bad news. It’s down for the eighth straight week, folks. And that’s the longest losing streak since 1932.
We’re back in 60.
PAYNE: Hammered by record pump prices day after day, drivers are looking for answers. Well, good luck finding them in Washington.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Do you believe that gas prices are too high?
DEB HAALAND, U.S. INTERIOR SECRETARY: Americans are still recovering from this terrible pandemic.
UNIDENTIFIED MALE: So, it sounds you’re unwilling to say that gas prices are too high.
HAALAND: We’re doing all we can, Senator.
GRANHOLM: You can thank the activity of Vladimir Putin for invading Ukraine and pulling…
HAWLEY: Oh, nonsense. With all due respect, Madam Secretary, that’s utter nonsense.
(END VIDEO CLIP)
PAYNE: So, is there any relief in sight for drivers?
Tim Stewart is the president of the U.S. Oil and Gas Association.
And, by the way, we did call Secretaries Haaland and Granholm. And they are, of course, welcome any time on the show.
I have got you right now, Tim. You’re the expert. All indications point to the summer driving season, all other things. I was looking at the EIA site last night, looking at kind of precariously low our gasoline inventories are.
I mean, just how high could they go?
TIM STEWART, PRESIDENT, U.S. OIL AND GAS ASSOCIATION: Well, that’s a great question, Charles.
And to be honest with you, if anybody is looking for any answers out of Washington, we have got to be prepared to be disappointed. I guarantee you that GasBuddy’s not going to be giving any directions to the White House if somebody’s looking for cheap gas.
As you mentioned, gas and diesel at all-time highs and inventories are getting precariously low.
And our challenge from the industry’s perspective is, in trying to work with both parties in Washington, the Democrats responded to these high gas prices this week by giving the president authority to implement price controls at your local retail station.
And the White House responded in kind by announcing a five-year leasing plan that apparently has no plan to do any leasing in it. For whatever reason, there’s this — there’s this sort of this kamikaze approach to a fossil fuel-run economy like ours.
There’s people in Washington who think they have to sink this ship at all costs. They’re not going to win, but, man, it’s caused a lot of damage in the process. And your family and my family and all these families are paying the price in the process of that.
PAYNE: To that point, Tim, every time I get a chance, I echo something very similar. I plead on air with the administration.
Listen, I know climate is first and foremost. I know it matters more to you than anything else in this country. But you are — the damage that’s happening right now, the collateral damage to this — and it’s dumb. I mean, if everybody in America had an E.V. tomorrow, 95 percent of us would have to work from home, right?
There’s no infrastructure for it. It’s crazy. It’s suicidal. So, with that in mind, what’s the industry doing? Because now, of course, they’re being villainized throughout all of this.
STEWART: That’s right. And I think we’re being unfairly villainized as well.
I think we’re now at this point, Charles, where the administration has a moral imperative to be asking itself on policy questions, is — what we’re about to do, will that increase domestic production and provide relief for the consumer?
And, if not, let’s not take that action. That’s where we’re at right now. And it’s important to remember that only half of the — only half of the energy we have produced for — oil and gas we produce in this country goes to transportation. The other half goes to manufacturing and agriculture and things like that.
And so there’s this imperative not just on transportation, but for all across the supply chain, to make sure we got an abundant supply of energy.
PAYNE: Well, I know you try your best. And everyone in the industry has been trying hard to reach this administration. Vladimir Putin has been something — I think that excuse is wearing off. I was shocked to hear Granholm pull it out again yesterday.
And now they’re talking about buying oil from Venezuela, the dirtiest fuel out there, with one of the most corrupt regimes out there.
PAYNE: I mean, at some point, is there a sign that or chance that maybe they will blink and say, OK, we will take advantage of what we have been blessed with under our feet?
STEWART: Well, short of them actually blinking, I think, from industry’s perspective, on the exploration and production side, we’re doing everything we can to get as much product into the system; 83 percent of all the oil and gas produced in this country is done by independents.
We’re like farmers. We produce the energy, we put it out there, and the supply and manufacturing chain does something with it. It is, I think, imperative upon us, despite the obstacles that are in the way from the White House and from the administration and the regulatory agencies, to do everything we can.
STEWART: Our accounts are up. Our production is starting to go up. That’s some encouraging sign. And, hopefully, consumers will get some relief here by the end of the summer.
PAYNE: Yes, we need it. Thank you so much, Tim.
STEWART: Thanks for your time.
PAYNE: So, as President Biden makes his trip to Asia, something China is doing has critics worrying.
We will explain.
PAYNE: President Biden over in South Korea today.
It’s his first trip to Asia as president. And he’s facing a lot of key tests.
Our Peter Doocy is traveling with him. And he’s got the latest — Peter.
PETER DOOCY, FOX NEWS WHITE HOUSE CORRESPONDENT: And, Charles, what we have seen so far is the president come. He’s had some meetings. He’s down for the night right now.
But even though a lot of this region’s supply chain issues are because a lot of China is locked down for COVID again right now, the president is blaming supply chain issues on Putin.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: It is contributing to higher prices around the world.
And now, Putin’s brutal and unprovoked war on Ukraine has further spotlighted the need to secure our critical supply chains, so that our economy — our economic and our national security are not dependent on countries that don’t share our values.
(END VIDEO CLIP)
DOOCY: There’s another Ukraine connection here. President Biden wants President Xi to see that the U.S. and Asian countries are all allied.
And he wants Xi to take a hint that, if China invades Taiwan, they are going to be isolated like the Russians are right now. And China watchers say that could happen, based on Chinese military exercises in the South China Sea that started right around the time the president arrived.
(BEGIN VIDEO CLIP)
GORDON CHANG, AUTHOR, “THE COMING COLLAPSE OF CHINA”: This is getting ominous, because The Wall Street Journal yesterday reported that China is trying to sanction-proof its senior officials.
Now, they wouldn’t do that unless they were thinking they were going to do something.
(END VIDEO CLIP)
DOOCY: This trip brings the president a world away from his lowest ever poll numbers at home, just 39 percent approval in a new AP poll.
So he’s looking for support anywhere he can get it.
(BEGIN VIDEO CLIP)
BIDEN: Don’t forget to vote, Peter.
DOOCY: I will not.
BIDEN: You may be here, but don’t forget to vote.
(END VIDEO CLIP)
DOOCY: So, the president is in midterm mode, even on the floor, the factory floor at Samsung.
We also know that he’s got some outstanding business to tend to as soon as he starts his day here. The $40 billion Ukraine aid package that passed while the president was on his way here is being flown from Washington, D.C., to South Korea by an aide right now for the president to sign it — Charles.
PAYNE: Peter, thank you very much.
China holding military drills in the South China Sea. What should we make of it? What should President Biden make of it, as this happens during his first trip to the region?
I want to bring in former CIA station chief Dan Hoffman.
Obviously, Dan, this is not a coincidence. But China, they have been extraordinarily provocative from the very beginning of this Biden administration, haven’t they?
DAN HOFFMAN, FOX NEWS CONTRIBUTOR: They have.
I mean, this is a not-so-subtle message from China, which is trying to assert its own territorial control over the South China Sea, which China has been militarizing, frankly, going back to the Obama administration.
And what China sees right now is the West, having been awakened from its post Cold War slumber thanks to President Zelenskyy and his brave Ukrainian comrades fighting that Russian invasion, and President Xi wants to make it clear that the West shouldn’t think that they can turn their attention to Taiwan and support Taiwan’s independence.
He wants — he’s made it very clear, his ministry, his Foreign Ministry has made it clear that the United States needs to stick with this one China policy.
PAYNE: You know, what’s interesting, and I think, to your point, Xi watching what’s happened over in Russia very closely. So they have got these exercises today.
I read somewhere today, and I saw photographs, where they were practicing or exercising attacking Japanese planes, that they have told officials there, don’t buy assets in America because they might be taken in the event we invade Taiwan.
I mean, so they’re — it really looks like they are looking at everything that happened over there, a lot of things that Vladimir Putin wasn’t prepared for, and actually preparing for them.
HOFFMAN: Yes, and China is the number one trading partner for those countries in the region, for Japan and for South Korea as well.
So China’s looking with some concern and tracking closely the Biden administration’s initiative, this Indo-Pacific economic framework. And China sees the United States trying to make inroads in the economies in that region. And — but, for sure, China knows that the — Europe has been effective, not entirely so, because they’re still importing way too many Russian hydrocarbons, but they’re severing their economies from Russia’s.
China doesn’t want to allow that to happen.
PAYNE: Is it likely to happen, though?
I mean, has this debt diplomacy, particularly when it comes to Europe — I mean, let’s face it. Europe has had a neutral, for lack of a better phrase, for a long time. They have become overly reliant on China, Chinese money. Even us, we — they have got a trillion dollars of our bonds.
Could they actually turn economically on China, the way we have done with Russia?
HOFFMAN: Yes, I don’t — I don’t think so. I think we could certainly mount — we have had — the Trump administration imposed some pretty serious tariffs. And we could look at some targeted sanctions.
I think that Gordon Chang made some good points there about China trying to sanction-proof some of their key businesses. But this is the big difference between our strategic battle with China, the ideological struggle there between democracy and totalitarianism.
Unlike the Soviet Union, China is very much intertwined in the world economy. They have practiced debt trap diplomacy. Look what they’re doing to Sri Lanka right now. They’re — the Sri Lankan economy has cratered.
PAYNE: I know.
HOFFMAN: And they owe billions of dollars worth of debt to China.
That should be a real admonition to any country that seeks trade deals with China.
PAYNE: You’re absolutely right.
It’s — once you sign that bottom line, it’s the ultimate Faustian deal.
Dan, thank you very much. Appreciate it.
HOFFMAN: All right.
PAYNE: All right, folks, may is Asian American, Native Hawaiian and Pacific Islander Heritage Month. We’re celebrating inspiring stories from the community.
FOX Business’ Susan Li is here with one of them — Susan.
SUSAN LI, FOX NEWS CORRESPONDENT: Yes.
And we talked about service and surviving with the first Vietnamese-born general in the U.S. Army. General Viet Xuan Luong, he came here as a 9- year-old boy surviving from Saigon in 1975, thanks to the help of the U.S. servicemen.
LI (voice-over): After escaping Saigon under a hail of bullets and bombs nearly 50 years ago, Viet Xuan Luong would go on to become the U.S. Army’s first Vietnamese-born general, his need to serve shaped by vivid memories of heroic U.S. military rescues in the final days of the Vietnam War.
MAJ. GEN. (RET.), VIET XUAN LUONG, U.S. ARMY: Suddenly, all hell broke loose, and we started to receive artillery followed by mortars. And several people close by were hit by shrapnel.
LI: As the city of Saigon fell, Viet’s family were some of the lucky ones who sailed away to refugee camps in the Pacific Rim, before arriving in Arkansas and settling in Los Angeles.
Following through on his boyhood promises to serve his adopted country, Viet enlisted in the Army after college. Rising through the ranks, Luong served 34 years in the Army. The highly decorated soldier received numerous awards, including the Bronze Star and Legion of Merit.
(on camera): Just culturally, coming from an Asian background, you know that society tells you to put your head down, to not be trouble, don’t cause any waves. Do you think that helped or hurt you when you joined the Army?
LUONG: I think it actually hurts us, not to make waves, not to say anything. But we’re Americans first, not to brag about our contributions, but to be able to accentuate all the things that we have done.
LI (voice-over): Perhaps it was always destined, but Viet’s career pinnacle would come full circle to meet the 9-year-old boy escaping war and death on board the USS Hancock cutting across the Pacific 43 years earlier.
Luong was promoted to major general in 2018, and assumed command of U.S. forces in Japan.
LI: And I asked him if he had any message to the youth, the Asian American youth across the country.
He says that we should not be loyal to political parties, but we should be loyal to the Constitution and believe in the American dream.
PAYNE: Thank you so much.
PAYNE: It was a great story.
All right, folks, coming up: Your table is ready, but your wallet just might not be. Food inflation getting hard for consumers to stomach.
But, first, forget COVID. Another viral outbreak has health officials raising the alarm. What you can do to protect yourself — next.
PAYNE: The World Health Organization reportedly calling an emergency meeting Friday on the monkeypox outbreak spreading worldwide.
In the U.S., health officials are investigating a confirmed case in Massachusetts and a possible case in New York.
So, what is monkeypox? And how worried should we be?
Johns Hopkins School of Medicine professor and FOX News contributor Dr. Marty Makary joins me now.
Dr. Makary, I saw the flash of some of these headlines the last couple days, and I’m saying, not again. It sounds spooky. Tell us about it.
DR. MARTY MAKARY, FOX NEWS CONTRIBUTOR: Yes, look, understandably, people have raw memories from COVID-19, which was downplayed initially, even by public health officials.
But I would start off by saying, look, there’s no concern for widespread epidemic-level infection with monkeypox. Among all the experts in the field — I spoke with many of them today — we generally believe this is not highly contagious.
There will be cases. There are probably a few more cases than the one we know about in Massachusetts and the one being investigated in New York. This is a pox-like virus. It gives flu-like symptoms, swollen lymph nodes, and, eventually, over a few weeks, turns into a rash, where people see vesicles on the skin, like a chicken pox-, measles-, or smallpox-like family of viruses.
PAYNE: But why is it spreading now?
I mean, if it’s been around for so long, and we — most people have never heard of it, why now?
MAKARY: It lives in animal reservoirs.
And the previous cases that have been seen, the first case in 1958 was among monkeys that were confined together for research purposes. There was a little bit of an outbreak in the Midwest in the United States years ago only among animals. And that was, again, among imported animals that were together.
So we probably are seeing an animal reservoir transfer this over to a human. And one of the modes of transmission that you won’t hear about much in the media is actually a sexually transmitted vehicle of spreading this, and that is known to happen or suggested to happen. And many experts believe that’s one of the many mechanisms. It could be direct contact as well.
PAYNE: And how likely, if someone were to contract, would death — is it possible to die from it?
MAKARY: Generally, with these pox viruses, it’s got this case fatality rate of 1 to 10 percent.
With the current variant of this monkeypox, it is under 1 percent. That’s why the WHO is convening some of the European doctors that reported this…
MAKARY: … to try to get a handle on it, because there’s little that we really know.
PAYNE: I mean, the photographs are scary, and, of course, to your point, so closely after COVID.
But what scared me the most, to be quite frank with you, when I saw a headline that said, World Health Organization, emergency, and outbreak.
PAYNE: I — honestly, I just — I had enough of the World Health Organization.
If this is serious, I hope we can get in front of it as a medical community in America. But it sounds like, even though it’s frightening and it’s rare, it’s mostly under control.
MAKARY: Yes, like people are triggered for good reasons.
But unlike COVID-19, we actually have a virus (sic) that we believe works at least semi-well against this. It’s not currently out there. And we do have a medication that’s used for another virus called CMV which could be used for these patients.
So we’re — we have got a head start, and it’s not nearly as contagious. I want to emphasize that.
PAYNE: Thank you so much.
Dr. Makary, thank you very much.
MAKARY: Thanks, Charles.
PAYNE: Hey, folks ever go to a restaurant, right, you order something like a lobster, and the menu says — quote — “market price”?
Well, what have I told you there’s a place doing that right now with buffalo wings? So much for a cheap night out.
PAYNE: So, who knew Buffalo wings had to be priced like lobster?
A pizza joint Mississippi beginning — being forced to sell its hot wings at — quote — “market prices” due to rising costs and chicken shortages. So far, the price has maxed out at $27.95 for 15 wings, but the owner says he could actually end up charging 34 bucks.
I want to get the read on this from Andy Puzder. He’s the former CEO of CKE Restaurants.
Andy, it is such a tough go for mom-and-pa restaurants dealing with this inflation and, of course, consumers. What do you make of it?
ANDREW PUZDER, FORMER PRESIDENT & CEO, CKE RESTAURANTS: Well, when you run a restaurant — I mean, it’s tough running a restaurant.
Your profit margins are 2, 3, 4 percent. And you always have to deal with inflation. The problem today is, you’re dealing with inflation in every aspect of the business. Your labor costs are up. Your material costs are up. Your ingredient costs are up. And that’s — that might sound like a lot for wings, but those kinds of price increases are coming.
The good news is, sales are also up. But prices have to keep up with costs. And when they do, those sales may come down.
PAYNE: Yes, and, of course, we heard already this week for retailers, discount retailers, that that no longer is the case. They can no longer pass these prices along.
In a single day, Target’s stock was down 25 percent. Between Target and Walmart, billions of dollars, tens of billions of dollars in value wiped away, because there’s no more pricing power. They have gotten to the point where consumers are saying no. Maybe restaurants get away with it a little longer, because we have been pent up inside, but, at some point, almost all businesses are going to suffer, aren’t they, from this inflation crisis?
PUZDER: Well, they are.
I mean, things right now are very bad out there in the market. If you’re a mom and you have a baby, or if you eat, or if you drive a car, or if you have a 401(k) plan that depends upon the stock market, you know things are bad out there. And people can only adjust so long. At some point, they just can’t afford it anymore.
And I think, in a lot of parts of the economy, and particularly the retail sector that you just mentioned, that’s what we’re seeing. People are hitting the wall.
I hope it doesn’t happen for restaurants. I hope it goes away. But, at the moment, it doesn’t seem to be going away.
PAYNE: Yes, I mean, it’s — what do you make of the — on my show, I bring on these Wall Street experts, and they all kind of — I don’t know if they have any middle-income relatives or poor relatives, but they all seem pretty sanguine about this, Andy.
They tell me, Charles, there’s $2.5 trillion in savings out there, excess savings, by the way. I’m like, are you kidding me? Savings rate has gone down dramatically. Credit card use is going up dramatically. Aren’t those signs that people are being pinched?
PUZDER: Well, they certainly are.
I mean, and we all know savings only last so long. And there was enough government largess that the savings rate got very high. People had money. But you’re clearly coming to the end of that road. And I’m with the — I was listening to you earlier today.
You had three economists on. And they were — or three stock pickers — and they were all saying they thought we were in a recession already, despite what we might be hearing. And I think that’s what the American people are feeling.
PUZDER: We may not technically be in one yet. We won’t know for months, but I think they’re feeling one and it’s hurting every aspect of the economy.
PAYNE: Andy, no matter where you live, also, you’re hearing drivers, right? They are sounding off about gas prices. They’re upset.
I want you to take a listen to some of them.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I usually used to fill up my gas like $40. Now it’s like $55. So it’s really hard.
UNIDENTIFIED MALE: I try not to drive as much, because it’s just ridiculous. It’s just — it’s astronomical. You don’t want to go nowhere.
UNIDENTIFIED MALE: Everything’s adding up, rent, everything. So it’s tough.
UNIDENTIFIED FEMALE: It’s not worth the road trip. I will be staying in Chicago this summer, for sure.
(END VIDEO CLIP)
PAYNE: All right, so the last person is saying that they will be staying put this summer.
What do you make of this summer? How is this economy going to shake out, particularly if gasoline prices continue to go higher?
PUZDER: Well, it’s not going to be good for the economy, obviously.
People need to travel. They need to get out. They need to be doing the things they have been prevented from doing by these lockdowns the past few years. And the frustrating thing about this is, President — President Biden could bring down oil prices tomorrow if he went to the front of the steps of the White House and said, you know what, we’re back in the oil business.
We’re going to produce. We’re going to — we’re going to encourage banks to lend to oil producers. We’re going to grant permits. We’re going to grant leases. We’re going to build pipelines. Look out, world, here we come. We’re going to be producing a bunch of oil. Price — because the price of oil goes down not just because of the actual supply, but also because of anticipated supply.
And the world’s anticipating that the United States is going to be cutting back. So this is avoidable. This is avoidable. It’s just avoidable with the right policies. And we don’t seem to have a president that can implement those policies.
PAYNE: Andy, you, though, have been active in trying to rally folks on Capitol Hill.
Tell us a little bit about these efforts that you have been — you’re putting forth this sort of pro-growth agenda, because I think, right now, a lot of people would love to hear about it.
PUZDER: Well, I will tell you, if you are — if you just think about inflation as a demand-and-supply mismatch — so, demand is up here, supply is down here — there’s two ways to fix this.
One is, you can bring demand down, which is what the Fed’s trying to do. And that’s painful. That’s — that hurts the people that are causing the demand, which is middle- and working-class Americans.
The other way you can solve this problem is to bring supply up with supply- side economics. You could reduce taxes, reduce regulation, focus on domestic energy production. And I have been making an effort, as have you on your shows, to try and convince legislators in Washington and rulemakers and this administration that it’s time to step back, adopt some supply-side policies, get supplies up, so they can meet demand, inflation can come down, and the American people won’t suffer.
PUZDER: But they don’t seem to be able to do that. And it’s a problem.
PAYNE: In the meantime, on this ADP jobs report, we saw where small businesses with 50 or less employees actually are losing workers. They cannot compete.
We asked for a wage-price spiral in this nation, and we got it.
PAYNE: And now we’re — aren’t we paying a price for it?
PUZDER: We are.
And it’s those small businesses. The ones that managed to survive the pandemic are now faced with a labor shortage, and they’re being outcompeted by much larger businesses that actually can afford to raise wages more than these small businesses can.
So, we’re seeing small businesses decline significantly.
PUZDER: And that’s a — that’s a huge loss for America. They employ half the people in this country. And that’s a huge loss.
PAYNE: It really is.
Andy, and, ironically, those big companies that are raising wages, now they’re being unionized.
PAYNE: Go figure.
PUZDER: Yes, that’s true.
PAYNE: Andy, thank you so much. I appreciate it.
PUZDER: Thanks, Charles.
PAYNE: All right, folks, thanks a lot for watching this week. It’s been a grueling week on the stock market side.
Remember, though, “Cavuto Live” is going to pick up this coverage tomorrow morning at 10:00 a.m. You got to catch me on “Making Money,” particularly now with this market in turmoil.
But finish now by watching “The Five.”
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