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tv   Cavuto Coast to Coast  FOX Business  July 26, 2021 12:00pm-2:00pm EDT

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hear a clap of thunder take shelter. you do not want to be on the bottom of a bolt of lightning. checking markets very quickly, since the opening bell, it is all treading water, if you like. the dow up 1/10 of a percent, nasdaq up a 1/10. it is a wait-and-see market. the fed gaining its two-day meeting tomorrow. my time is up, david asman in for neil cavuto. take it away. david: it is green. thanks for that, ashley. it is green. i'm david asman in foreneil cavuto. markets are weather that form for today? from growing inflation to stocks, to masks.
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we'll bring you the very latest. crime continuing to playing the u.s. from coast to coast. brand new video of a criminal waging a brutal attack in broad daylight. is it time for lights out on the defund the police movement? crypto comeback. bitcoin looking to be on tracks for gains this week after several weeks of volatility. what is crypto's future? but first the white house and the fed walking a tightrope now between several looming economic fears. rising inflation and slowing growth. the fed meets this week. we will see whether it asserts its independence by pulling back the reins on bond buying or continue to bail out the government by spending more and dumping more cash into the economy. to capitalist pig hedge fund manager, fox news contributor jonathan hoenig and former investment banker carol roth. wonderful to see you both this monday. jonathan, first of all, the most important figure that i have seen in the past couple of weeks
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comes from this inflation adjusted figure on hourly, weekly earnings. if we can throw a full screen up. 4%, down 4% year-to-date if you factor inflation into this. this is the most important thing we are not hear hearing from the fed or the white house that inflation is cutting people's salaries at the end of the week. don't you think we should be focused on that? >> david, of course they're trying to minimize inflation. biden the federal reserve, all the rest, but inflation, david, there is a reason gerald ford called it public enemy number one. why it's a silent killer, a hidden tax. what matters not what you make but what you make after inflation. that is the horrible net effect of this artificial government, expansion of the money supply. that is what inflation is. david, even if you make a raise, higher earning power you're not taking home anymore earnings at
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the end of the day. you mentioned the stock market. that is probably the best example of it. the stock market was up in 1970 through the 1980s but because of inflation it is down 15% because of inflation. inflation is real, it is here, it is being caused by government. david: carol, the bottom line joe biden's big government policies are inflation, are taxing, because inflation is a tax, taxing the poor and middle class which joe biden said would not happen under his presidency. >> this is the worst set of bond villains pun entirely intended you have ever seen. this is transfer of money from main street to wall street. because i think the federal reserve inflation concepts are not something that the average person understands and thinks about. they're note focused on a it. with all of this stimulus money, people are counting couple of
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dollars they're the abouting in, they're not seeing the truck with trillions of dollars behind them and understanding the implications for their own lives. that is the big tragedy here. we're decreasing wealth opportunities for the average american and they're not even realizing that. david: jonathan, the big lie, if you will what we're hearing these days, whether it is the white house or the federal reserve the market is not sufficient to create economic growth. that's why you have the federal reserve coming in buying $40 billion every month of mortgage bonds despite the fact we have a housing boom. why do we need the fed to do that? >> it is a turnaround david, from actual legitimate economics which knows government spending destroys wealth, destroys wealth creation. carol gets it right. this is not transfer of main street to wall street to wealth. this is destruction of wealth.
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in the 1970s, unemployment was up around 8% for the entire decade. people spending 15% of their take-home pay on food. this is threat to the economy and all of our way of life. david: carol, meanwhile there is a big test for big tech this week. we have apple, alphabet, facebook, microsoft, and tesla reporting second-quarter earnings this week. what do you think we're going to see? >> it is crazy to think about it. you have a handful of companies that think it is five of them at this point are worth more than nine trillion dollars in value. unfortunately they're the ones that seem to be the "killer apes," the ones ability to grow despite slowing economy. i think you will end up seeing decent, ongoing support because i just feel like people don't know where to put money in this
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market. david: right. >> they kind of are the skinniest kids at -- [inaudible] so to speak. we're i feel like get a pretty decent read out of them and they will continue to do well at least for the time-being. david: jonathan, you know where we first saw the sign of this was about a year ago i think it was. we saw all the extra tax revenue coming into california during the pandemic. during all the lockdowns. while the small businesses, the small restaurants, and the small construction companies were getting killed because they couldn't find labor, the big tech companies that could afford to pay 25, 30, $40 or more an hour, they were raking it in. they were making it out like bandits. >> not like bandits, david, they were raking in because of values they provided. david: right. >> carol is right there, are a few big tech companies that are on top. i promise you this in five or 10 years in a free market they won't be the same companies on top. that is the nature of this
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competitive environment. the real worry about big tech isn't even lower earnings. it is government both the left and right think they're public enemy number one. david: the environment you can't compete with the government. >> right. david: that is why the small businesses are in such trouble right now because they're competing with the government on salaries. they can't match what the government is paying out? >> carol, you have written a book on that. david: go ahead, carol. >> i wrote an entire book on this, right, the war on small business. unfortunately between the government policy and the fed policy, you're making it completely anti-competitive and continuing to tilt an already tilted playing field in favor of the larger companies. when they can borrow large amounts at zero interest rates, the small guys can't do that. they can take on small regulation. certainly they benefited from the closures. those things compound and compound.
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it is not a traditional free market competitive environment which jonathan and i david would ultimately like to see, this isn't competition this is again the government favoring the big guys, the ones who pay their lobbyists and ones that are easy to control versus the little guys and we're seeing the outcome of that. it is not good if you are not in the -- david: democrats prefer corporations over small businesses. they say they're for the little guy but look at the policies and policies definitely benefit big guys over the little guys. it is such an important topic. we'll come back to it in just a moment. meanwhile u.s. covid cases mainly among the unvaccinated continue to surge while covid measures are creeping back into our reality. steve harrigan is in atlanta with all the details on this. steve. reporter: david, right now, new covid cases in the u.s. topping 50,000 a day. that is four times the amount of new covid cases just one month ago and health officials say it
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is the delta variant that is driving the increase. >> a surge in cases with the delta variant which is now dominating in this country. 83%, and in some places in the country it is as high as 90%. so it is quite understandable, neil, why local authorities are now saying, good that you're vaccinated but in a situation where you have people indoors, particularly crowded you should wear a mask. reporter: hospitalizations are also up in 45 states, a fascinating statistic by the cdc. they say more than 97% of those hospitalized for covid are not fully vaccinated. right now across the country roughly half, 49% of the u.s. population is fully vaccinated and the real surge is happening in five different states, arkansas, florida, louisiana, missouri and nevada. many of those states the vaccination rates are up as
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well. finally new york city's mayor says it will be mandatory to have a vaccination for city workers beginning in september. those unvaccinated will have to take weekly covid tests. david, back to you. david: one word describes everything there, and that is again? again? it is just, a lot of people are wondering when this will be over. steve, thank you very much. reporter: thank you. david: the delta variant bringing more uncertainty from coast to coast. one particular concern of small businesses desperate for help. will the federal government extend additional unemployment benefits past september? carol, this is getting back into exactly what we were talking about. the fact is is that most of us are fed up with these continued lockdowns and continued masking, et cetera, et cetera. but i'm just wondering if it doesn't somehow fit into the biden plan for extending government benefits, extending the reach of the government? >> yeah. i mean i really believe this is all a larger plan to condition
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people to get used to the idea that the government is going to take care of you instead of encouraging people to go out and create their own wealth opportunities and this is kind of marching you straight into the call, not only the minimum wage which they have done a back end around on that one but for universal basic income. they will say, look, you can't go back to work. you have to shut down your businesses. all these kinds of things, but don't worry, guys, big government's got you. there will be more and more people saying we like the government sending us money, not realizing that is taking away the wealth creation opportunities. so i do feel like this is all part of the plan and that is why you continue to see the rhetoric. and of course it impacts those small businesses the most. david: absolutely, absolutely. then there is the inflation effect as well, jonathan. you have fewer people working. that means fewer goods and
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services provided and that's the supply side of the inflation effect. if you have fewer goods, the prices for individual goods go up or services? >> right. more money being printed as carol pointed out, constantly being doled out by government literally on a printing press week after week. that is the insidious part of all of this, david. my mom had a saying he who writes the checks makes the rules. with every assistance for airlines, restaurants, small businesses, as carol said, government gets a little bit to controlling our everyday lives around that should be avoided at all costs. david: this is the best president president biden can respond to desperate questions by small business people he got in the town hall this week. let me play that. get your quick response. >> how do you and the biden administration plan to incentivize those that haven't returned to work yet? >> we spent billions of dollars to make sure restaurants can stay open and, a lot of people
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who now, who work as waiters and waitresses decided that they don't want to do that anymore because there is other opportunities at higher wages. people deciding now that they have opportunities to do other things and there is a shortage of employees. so i think your business and the tourist business is really going to be in a bind for a little while. david: carol, they can't afford to be in a bind. they have been in a bind for a year-and-a-half! i mean you can't, is that an answer that is acceptable in any universe, that you only have 10 seconds? >> it is not especially when it was a government caused bind. if it was a market caused bind it would be different but the government caused the bind to begin with. david: exactly. carol, jonathan, great to see you both. thank you very much. coming up china officials slamming u.s. relations after a meeting between top diplomats. details you don't want to miss. it is coming after a break.
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for u.s. companies. they are feeling the sting of the chip shortage with auto companies pausing production on some of their best-sellers. edward lawrence is at the white house. the white house is looking to open new factories in the u.s. what's the deal there? reporter: especially a bipartisan group here. before we get there this chip shortage could last until 2023 according to the head of intel. this all started because the taiwan plants that make chips, some are dark. some are still operating below capacity because of covid. so what happened now plants in china started to ramp up production to make the difference but this increases our reliance on china. to head this problem the senate passed innovation and competition act. it is expected to pass the house at some point and have the president sign it. as prices rise because of the chip shortage here a senior administration official tells me the commerce department is making moves to help build six to eight chip factories within 18 months of president signing
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the fact. the president signed $52 billion for research and design in manufacturing chips. the commerce secretary had 50 meetings with chip-makers but also customers to car companies, refrigerator makers and medical industry. take the auto industry. ford announced it will scale back pickup production in july in michigan, kentucky, missouri. while the ford explorer plant in chicago sits idle the entire month. the shortage stopped gm from producing the full-size pickup trucks in the u.s. the economists say this is the number one supply issue in the globe. >> the most talked about supply chain disruption is of course computer chips. we find ourselves these days surrounded by computer chips. i'm thinking about the room i'm in right now that is the case. if you buy a refrigerator. there is a case you have to have a computer chip in there surprisingly so. automobiles many times over. reporter: we may be dealing
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until 2023. one to 3% inflation increase just because of this one supply chain disruption. it looks like again it might last another two years. back to you. david: that again means inflation will go up because we have fewer goods. thank you so much, edward. good to see you. meanwhile talks between the united states and china off to a tense start to say the very least. beijing official saying relations right now are essentially at at a stalemate. joining us "washington examiner" chief political correspondent, fox news contributor, byron york. byron, thank you for being here. did our diplomatic team take it on the chin while in china? >> completely. the china could have pronounced it a stalemate before they even started. this is on top of what happened, they're meeting in china now. they met in alaska in march and the chinese delivered this long lecture about how terrible the united states is. you have all of these problems
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that really the united states has to discuss. you've got covid that is incredible stonewalling they're doing on the origins of the pandemic. you got hong kong. you have got the treatment of the uyghurs. you have got taiwan, military expansionism. you have the hack of microsoft and others. that is on top of golden oldie grievances like chinese theft of intellectual property. and basically the chinese are just stonewalling. they're saying we'll not talk about anything. you're so terrible. you engage in genocide of native americans. david: byron, that is, that is point you can't underestimate at this point which is that the chinese are using progressive democrat talking points about systemic racism and all of the horrible things that america represents you know. i was almost expecting wendy sherman, our diplomat over there to take a knee when she saw the american flag. the bottom line here, yeah, the
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bottom line they're just, the chinese are just mimicking what a lot of democrats are saying here. >> yeah. you're right about taking a knee. now this is something that has been done especially by totalitarian nations for decades and for generations. the old soviet union used to do that, used to point to racial problems in the united states in 1950s and 1960s to show why communism was so superior to democracy and freedom in the united states. this is an old trick. the whole point is, that the chinese are doing this before they even sit down and say word one about any of the actual problems. which indicates they're just not going to talk about it. david: we were told by president biden himself, when he was running and by his diplomatic team that he would unify the world against china. that is to say that the trump administration was acting like a
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bunch of cowboys. they thought they could do it on their own. the biden administration, what they were saying about national policies, he would unify everybody in the international world against china. how is that working out? >> it's not. the message, here again, this is something that new administration sometimes do. they will come into office, tell the world, america is back. you all hated the united states under the former president but you will love us now. and it is just not working. the relations you know, with the europeans, this whole nordstream two pipeline thing that left the ukranians completely out of this. there are all these concerns about the biden administration. they're not being ignored against this threat of china which by the way in many parts of the world is more influential now than it has ever been. david: the only thing the u.s.
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can hang its hat on, they're having a big problem with its tech stocks in china. we had the 10-cent story where the chinese stocks are tumbling. the index is tumbling because of government pressures to take that over. they may self-destruct at least in that sector. we'll see what happens there. byron, thanks so much for being here. we appreciate it. coming up, city residents are packing up and heading to the country. a look at the trend and why it is not going away. ♪ i'm so glad you're ok, sgt. houston. this is sam with usaa. do you see the tow truck? yes, thank you, that was fast. sgt. houston never expected this to happen. or that her grandpa's dog tags would be left behind. but that one call got her a tow and rental...
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♪. >> return to work wars. that's what it is being called. fox business has learned that ubs is using its flexible return to work policy as a recruiting tactic to try to poach brokers
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from morgan stanley which is calling for most workers to come back into the office. fox business's charlie gasparino has the inside scoop on this. hey, charlie. >> david, you're an old "wall street journal" hand like myself. so we were taught essentially to say, talk about bigger trends, bigger stories using anecdotes and vignettes. david: that is how we started every story. >> that is what we started every story. this is a trend that is going across corporate america. but i cover wall street as you know and i'm focusing what is going on wall street. here is how it is manifesting itself on the street. we should point out morgan stanley is the biggest brokerage firm. they have 20,000 brokers nationwide. it is the crem dela crem of brokerage firms. ubs is smaller, 7, 8,000. they focus on high net individuals. they are a decent player. people like poaching from morgan stanley because it is what it is, the gold standard in
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brokerage. here is what is going on now. ubs has a very flexible policy to return to work for brokers that deal with small investors. morgan stanley right now they're flexible. but in a month's time, james gorman, the ceo says he wants everybody back in the office. the word is out there even brokers might have to come back. we know ubs is using this very flexible work, return to office policy to approach brokers from other places including morgan stanley. now i haven't heard of any major teams leaving just yet. it takes more than you can work from home wherever you want. there is money involved here to skip from another firm. there is a lot of hoops that you have to -- those clients technically belong to the other firm, so it is hard to bring them all over all at once. there are non-compete contracts but clearly being used out there from what i understand from my brokerage sources to get people to ubs. ubs again, it is very flexible.
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like you do what you want to do. if you want to come to the office, please come to the office. if you're a broker, state at home we don't care as long as you keep making money. morgan stanley is taking the opposite tact. i think this will be a recruiting tool for a lot of firms and a lot of companies out there. i think apple recently came out said it will extend work from home indefinitely. david: right. >> you can see facebook, for example, wants to bring people back immediately, you can see apple saying hey, guys, come work for us. so it is happening across corporate america. david: interesting. >> here is what we got on wall street and i will update you if any big teams do leave because of that enticement. david: you know what is incredible? it unites the upper class and the middle class with the labor shortage we have right now. it is giving people who are offering their services all kinds of leeway that they didn't have before. >> part of me says that is really good, right? we want people to make as much money as possible.
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i think this is different from what is going on with the government. if you're a small business, you literally have to compete with the government on salary, like it is more, more advantageous to stay home than work in a restaurant, that is real inflationary problematic. this is different. this is like competing against companies. david: gotcha. >> the way it should be. david: very interesting stuff. charlie, thank you very much. there is the effect on all of this on housing. the housing market is still strong. new home sales in june were weaker-than-expected, marking a decline for the third month in a row. douglas elliman's dottie is with us now. dottie you are optimistic about this city, new york city's prospects on the housing markets but there are some things augering against it. you have the rising crime rate which is of great concern to a lot of people. work at home which charlie gasparino was talking about. new covid variants which may cause more lockdowns other at
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the very least more masking. how do you deal with all of those pressures? >> well, as i said i'm optimistic but there are certain underlying factors, but from everything i hear, i'm out there all the time the biggest problem is crime. people are afraid to actually walk in the city anymore and, pre-pandemic new york was the safist city in the united states of america. david: yeah. >> then i believe they're trying to raise taxes again for the wealthy. this is not the year to do it. we're at the highest taxed state in the country and you know, if you're a business person, it's not the year to start raising taxes either. so you know, i think they have a homeless problem. so there is, then if you look at residential is food. and you know, it is so busy. a lot of young people who are priced out of the city were able
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to come back or finally get here. and i think that is good for the city. people were able to trade up and get much larger apartments, but, if the safety isn't there, it really doesn't matter. david: you pay a price living in the cities. because the city has usually other things worth living for. for the extra price you pay in new york, you pay a premium of about 12% on your income just to live there because of the higher taxes. but, people used to be willing to do that before the pandemic because the streets were safe, as you said, because you have theater, you have music, you have wonderful restaurants. you have meetings with other people. all those things are gone right now. how long can new york or any city survive with those things non-existing? >> well. that is a very good point. broadway is coming back in september. david: hopefully. hopefully.
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we don't know if that will change, dottie. >> with this covid hopefully. when you walk through soho it doesn't help to see a million vacancies signs on small businesses. i'm not is sure when this moratorium will end. new york state had a fund for people. can we cut to the chase? david: sure. >> we better elect someone who is really great as amayor. we need somebody and the right person to build new york city. everyone that lives in new york city loves new york city. there is no other city like it. we can come back but we can't do it alone. david: what you say would be the same thing nor chicago, would be the same thing for los angeles, would be the same thing for san francisco. for any of the cities suffering from i think these terrible policies that are creating crime in the streets. that are creating higher taxes, et cetera. that's really the problem. i think there is pushback.
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do you see enough pushback in a city like new york? >> i'm in a group, i'm in a group of people, citizens for a safe new york. you know they cut the police force by god knows how much. david: yeah. >> probably the highest in the country. so, you know, we, yes, i'm in an organization. we are trying but basically, i don't know. i think you know i think these politicians that have a good business background also because running the city is like running a business. david: of course it is. >> i look at policies with no bail, okay, which anybody can come back to the street. david: right. >> i mean it is just so many policies that have really gotten a little bit out of control. and, the city has got a homeless problem. david: yeah. >> so i think, i think we're all rooting for it. it has everything. it is always come back, okay. but now it has got some issues, not, the people are there. you see the streets are crowded.
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david: people are there. the city is there. we have come back. we've always come back. and but we are going to have to come back like we never have had to come back before, even during wartime, we haven't had a situation like this for new york in terms of comeback. dottie, we have to leave it at that. great to see you. good luck. >> have a great day. david: not just the suburbs people are flocking to. smaller and smaller rural housing markets are becoming hot as well. elkhart, indiana is emerging one of the hottest housing markets in the country because of low taxes and more space. grady trimble is in elkhart county. reporter: david, you mentioned new home sales down in the month of june but here specifically in the midwest they were up quite a bit, more than 5 1/2% in fact. maybe part of the reason for that is because people are coming to places like elkhart where you can get more bang for your buck and pay lower taxes. elkhart was number 13 on
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"the wall street journal" and realtor.com list of emerging housing markets. let me show you the top five. number one, billings, montana. coeur d' alene, idaho. another indiana town, fort wayne, indiana, and rapid city, south dakota and raleigh, north carolina. marilyn mauser is a real estate broker. we see multiple offer situations, people waving appraisal. you're seeing that to a higher degree. >> definitely a seller's market in elkhart county. when a home is listed we're seeing multiple offers. buyers awaiting inspections, appraisal guaranties. it in a frenzy here. reporter: we're here between detroit, chicago and indianapolis, are people uprooting their lives to come to a smaller city when they might consider small town usa? >> yes, they are. people want since covid a slower
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pace of life, more space. with the average home price here being $190,000, it is very affordable to live here. reporter: david, a lot of people we're hearing are working from home and of course, you can do that in elkhart, indiana, or anywhere else in the country. why not do it somewhere where your taxes will be lower and you will get a bigger yard and a bigger house for what you pay. david: people will take that option. grady, thank you very much. more violence as we were talking about rocking big cities this weekend as new polling shows people want more police, not fewer but will democrat leaders listen? the latest still ahead. ♪. ♪♪ ♪♪
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in two brutal attacks this weekend. fox news correspondent bryan llenas has the very latest for us. reporter: david, look this video released by the nypd is difficult to watch. it show as 68-year-old man being assaulted on the sidewalk on saturday morning in broad daylight in brooklyn, new york. the suspect was riding on a bicycle when he stopped to rob the elderly man, punching him a dozen times and kicking him in the face. the victim falls to the ground. his body goes limp. the chief checks his pocket for valuables and steals the man's cell phone and necklace. he suffered a broke nose and lacerations throughout his body. he is in stable condition at a local hospital. the suspect is still at large. the nypd is acting for the public's help. the new york city police union tweeting. these are new york city's streets. this is the back to high crime
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due to failed laws allow no consequences and emboldened officials. politicians in albany and city hall to need to step up to fix the mistakes to keep new yorkers mistakes. police have released images of three young men wanted for another attack on a 44-year-old off-duty firefighter in queens. he was punched and hit in the head with a glass bottle by a large group of teens who said it was quote, fight night as they approached him and his dog. the firefighter was saved from further attack by a nearby ambulance. according to the latest nypd crime statistics, felony assaults citywide are up 6%. shooting incidents are up 22%. car thefts are up about 24%. david, the expected new york, the expected next mayor of new york city, democratic mayoral nominee eric adams says there is a sense we have a city where any and everything goes. >> curtis sliwa says the same thing. he will run for the republican
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party. brian, thank you very much. most americans in major cities are in midst after major pushback against crime wave and radical approaches to law and order. a new poll showed 90% of detroit residents want more cops on the street, not less. let's bring in byron york. i think crime will be a big problem for midterm democrats not only in national elections but local elections around the country. >> you see many democrats are in total denial mode denying they ever entertained any notion of defunding the police saying well they didn't mean 100% defunding the police or some sort of tale like that. president biden was kind of testy when he was asked about it at a town hall last week and said, no, no, he is always has been pro-police. but when, even during the campaign when he talked to activists who wanted to redirect money from police to social
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services and to housing and to mental health, he agreed with that. democrats are now having to run full speed away from some of the positions they held during the campaign. david: although, let me push back, in fact what president biden and other democrats are saying it is all about guns. the two incidents that we focused on with bryan llenas with that report, neither one of them had to do with guns. it has to do with barbarism on streets. free reign of barbarism because of stupid bail laws and proactive non-policing or defunding of the police, those are things that are causing it, not more guns. >> you're absolutely right a reporter asked jen psaki who is white house spokesperson or anybody else in the administration about crime, the answer that comes back is a about guns, because they try to fit today's crime problem into their preexisting positions on gun control.
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the president is even talked about assault weapons in connection with this crime wave. the crimes that do involve guns, overwhelming involve handguns. it is not a assault weapons problem today. you're absolutely right about the two crimes you just showed, which is kind of, visceral, physical attack, that people look at and, they're really afraid of that sort of thing, and it doesn't involve guns. so it doesn't fit in to democratic pre-made democratic policy. david: forgive me for interrupting but the other thing the huge problem in america is stealing epidemic going on. i call them soros prosecutors. he contributed billion dollars to change, d.a.'s stop the criminality of stealing things. you can't do that in a civilized society. >> no.
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california, places in california basically decriminalized theft and of course what happens when you do that, is people steal stuff. we're not talking about stealing a pack of gum. we're talking about thefts that are quite significant in dollar amounts. so both this and the beating that you just talked about involved not punishing people for criminal behavior. that is a huge factor in here. people who do this, whether shoplifting? san francisco or beating up somebody in queens, no there will be no consequences for what they have done. david: by the way, shoplifting is going on in new york. there is shop gifting going on in chicago. everywhere you have d.a.'s refuse to prosecute for very basic crimes like stealing you have this problem, surprise, surprise. should be no surprise to anybody. byron, thank you very much. appreciate it. best of luck to you. is amazon getting into crypto? the rumors that have bitcoin
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david: take a look at bitcoin, it is topping 39,000 right now. that marks the highest level in six weeks. amazon is hinting, hinting that it may embrace crypto. back with us now, jonathan hoenig and carol roth. carol, are you buying? >> i am cautiously watching. i will say -- [inaudible]. shovels around at this point with the currency because i always like -- [inaudible] as much as possible. still i'm trying to get my head around whether this is going to be a viable currency or perhaps just becomes another type of -- david: yeah. let me get jonathan in. we're having problem with your audio there. jonathan, i know you're a gold bug. maybe that is the wrong phase. but you have some gold as a defense against inflation. but you also loaf pushbacks
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against central banks all over the world. that is what crypto is. are you interested in crypto as well as gold. >> david, i would dispute that ring speck fully. david: please. >> a ponzi scheme a pushback against banking? that is what bitcoin is. this is not currency. this is a risk asset. this could have existed in 2009, 2010. there wasn't the appetite for it. correlated with stocks writ large. just some interest from amazon, interest from tesla, moves not only tech stocks up but bitcoin as well. david: jonathan, you're a libertarian. i'm basically a libertarian on economic matters as well. don't you like it when somebody is competing with central banks like crypto is? >> david, what is going to change the culture in this country is not a competing currency but competing ideas. it is people rising up saying let's get rid of the federal reserve because what it is doing to our bottom line. it is intellectual motivation
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that is missing. bitcoin is speculation. it is at a multiweek high. six days ago it was at 2021 low. this is essentially a falling knife. not willing to buy. david: you have five seconds, are you buying gold, worried about inflation as you are? >> david, gold of value is story of value hundred of years. it will be value hundreds morse. it is a little weak but -- david: jonathan, carol, appreciate you have both being here today. when we come back another major city reinstating their mask mandates. dr. marty makary is here to tell you where and why you now may need to mask up after this. ♪
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oh! are you using liberty mutual's coverage customizer tool? matching your job description. so you only pay for what you need. sorry? limu, you're an animal! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ ♪♪ david: and and welcome back to cavuto cocoast to coast, i'm david asman in for neil a cavuto. business second hour as markets look to extend their record run, although we see the nasdaq has gone into red territory, not i by much. major cities reimposing mask mandates as covid cases spike coast to coast. the very latest on where the presidents -- the residents are being met with reinstated restrictions.
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and then republican senators sounding the alarm over the cost of this halting the construction of a border wall. why they say not building a wall is looking almost as costly as completing one. and the cdc's eviction ban with now facing major legal backlash. why one federal appeals court is saying the agency may have overstepped its authority in enforcing the moratorium. but first, to the top story this hour, mask mandates a making a comeback as major su cities try to combat a growing spike in covid cases. lauren simonetti has the latest. hi, lauren. >> david, 40% of new covid cases are in missouri, texas and florida. 40% of residents in missouri are pulley vaccinated, and that is why st. louis is requiring masks indoors for anyone over the age of 5. here's the mayor. >> masking and vaccination go hand in hand. getting vaccinated is critically important.
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while you can still catch covid-19 if you're vaccinated, your risk of ending up seriously sick or in the icu is greatly reduced. >> the state's republican attorney general, david, says he's going to go to court to block that. overseas the french parliament green lighting vaccine passports. you must show proof of vaccination or negative test to go to a restaurant, museum or take the train. and at the end of september, 12-year-olds must carry these health passes too. while thousands protested the new law this weekend in the streets of france, look at this. french president macron says the measure has helped push up the vaccination rate there. 40 million french citizens have now received at least one jab, but how many jabs do you need? the ceo of biontech who's partnered with pfizer says two is good. the "wall street journal" says even though antibody levels do drop after seven months, most people remain protected against severe disease.
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he added that governments should decide whether to dose vulnerable people with a third shot, but some americans, david, they're deciding for themselves. they're mixing and matching shots from different companies to get broader protection both against the virus and the variants. health officials at this time advise against that, but still that's what some people are doing because, quite frankly, they're scared. david: yeah. all right, lauren, thank you very much is. well, democrats are now suggesting that vaccine hesitancy stemmed from former president trump. the first major politician to voice vaccine concerns for political reasons was actually, yep, vice president kamala harris back when she was running for vice president. listen. >> let's just say there's a vaccine that is approved and even distributed before the election. would you get it? >> i would not trust donald trump. but if donald trump tells us that that we should take it, i'm not taking it. david: let's get reaction now from johns hopkins university professor dr. marty makary.
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i don't want to put you in a political position -- [laughter] i know you're a scientist, not a politician, but what do you make of this? the idea that donald trump, he's the president whose task force was intimately involved in creating the vaccine, is now being blamed for vaccine hesitancy. >> yeah, look, i think we should shut out all the talk of politics related to the vaccine. everybody is united now, everybody agrees that the vaccines are an incredible miracle, and we immediate to encourage everybody -- we need to encourage everybody to get vaccinated. by the way, david, a small subset of america. we're talking about a very surgical, small subset of adults right now, and those are the ones at risk. by the way, those numbers are going up right now. the vaccine uptake is going up as people see delta and find somebody that they know recommend it or becomes more relatable. david: well, let's talk about masks then. and in particular i know, again, i don't want to put you in a political corner here, but it took on a political tone because there were six texas democrats
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who traveled to washington, d.c. from texas on a plane unmasked, six, and they claimed that they were all vaccinated, by the way. every one of them claimed that they were vaccinated. but six of them, there were about 50-60 people, 6 out of 60 which is 10%, that that's a pretty big number, got covid despite their vaccinations. what does that tell you? >> well, the evidence on wearing masks once you're fully vaccinated is pretty clear, there is no need to wear it, but that was with the previous strains. with delta, there may be a small transmission risk among fully vaccinated people, and if i were in an area where there's an active, big outbreak, i might consider it in an indoor, public setting. matter of fact, i would probably advise us in the absence of information. the problem is, when you cross over to a mandate, you're using one of the few levers we have in public health which is to force people to do things. it's got to be based on solid
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data. we don't have that right now. when you use it when there's not solid data to support it, you threaten the credibility of public health, and you can only cry wolf so many times. david: if this new variant can get through the vaccine, can it get through the immune system of somebody who's already had covid? >> yeah. look, if you have vaccinated or natural immunity, you can feel pretty good about your body's b cells and t cells producing neutralizing antibodies on demand and preventing severe illness and death. that is very clear. two principles that are very clear is if you have immunity, you don't have to worry about severe illness and death, and it's hard for this virus to hurt someone young and healthy. those two principles are still true and have been true. but, look, if people get infections after immunity, they tend to be mild and low grade. our battle has never been against the common cold. covid is going to continue for the rest of our lifetimes. we're going to have to learn to
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live with a seasonal, mild virus among those who are immune. david: so would you say that immunity based on somebody who's had covid before is about equal to the immunity that you get from a vaccine? >> it's at least as good. we have more data on natural immunity than we do on vaccinated immunity because naturallal immunity's been around longer, and i'm hearing some anecdotal experiences among doctors that people with natural immunity may have fewer breakthrough infections subsequently, so it's pretty solid. a. david: all right. let's talk about lockdowns because not only are we hearing about masks, but some states and cities are talking about lockdowns as well. the imposition of mask mandates could shut down businesses even if there weren't official lockdowns. you think of restaurants, for example. i mean, a lot of them would have trouble getting started again just getting on their feet now without the masks. but if you have more mask mandates, that would close down restaurants. what do you think of the effect
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of those mask mandates on small businesses? >> well, ironically, what we're seeing is a response to low vaccinated parts of the country which are rural areas in five states in the south, and that reaction is to put restrictions on areas where you have very high population immunity, often in the north. and that does not make sense. you're imposing restrictions on the wrong group of people. and i do worry about that because, remember, when we talk about restrictions, it's not just for entertainment and leisure. in my own field of medicine, we have not had medical conferences in person. there's a lot of essential services where we need to get back to business. david: absolutely. no doubt about it. dr. makary, always a pleasure to hear you. thank you very much for being here. appreciate it. >> thank you, david. david: well, stocks are now erasing earlier losses as investors await new guidance from the federal reserve, this as the fed is still pumping billions into the economy despite stocks and surges in home prices. let's bring in our panel for the
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hour, fox news contributor gary b. smith and delancey strategies president jared levy, both -- i have to admit -- are good people. i like 'em. [laughter] always a pleasure to have on. gary b., let me talk to you first. does it make any sense for the fed to essentially be printing $40 billion a month to buy mortgage-backed securities when we have a housing boom? by the way, for those fed experts, i know the fed doesn't actually print it, the treasury does the printing, but that's what it amounts to. does that a make any sense, what the fed is doing in buying these mbss? >> it doesn't to me, david. in fact, it's mind-boggling not only what the fed is doing, but what the government is doing. when you call it an infrastructure bill, whether you call it remains of the cares act, to pump literally trillions of dollars into the economy which right now is going pretty
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well. i mean, we're pumping all this money in the economy, and yet we're worried about inflation. and yet the spigot doesn't seem to stop. i don't know whether they think, you know, the left, if you will, thinks, well, i'll just keep, you know, going over the country with a helicopter full of cash is going to help them in the next election or they really think the economy's in more trouble than i can think. but, no, david, it doesn't make any sense. david: and, jared, it does have an inflationary effect, doesn't it? >> it does, of course. gary's 100% correct, we've really infused an immense amount of money. we are changing the fabric, and with that we've changed the expectation of the individual. and that's why a lot of americans respect going to work. they're d aren't going to work. you know what? i've gotten used to this.
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i've had a year and a half of funds floated to me, i'm feeling pretty good. it's kind of ironic because this cash and these programs being infused into the economy, we're kind of instilling a little laziness in the american public, and it's almost on the fed's shoulders now to kind of keep the flow going or else, right? i mean, it's kind of a weird, it's a strange dichotomy, but it's driving inflation. you're 100% right, david, and i think in the short term it's here to i stay. the question is, does the -- we just with had a drop in new home sales. does that and the raging delta variant some are saying, is that enough to sort of hold off the fed and keep them at a bay, keep doing what they're doing. i think it is. david: well, gary, you know, we don't always like to get personal. we focus on policy, but the fact is, is that there is personal interest in public policy, and i'm just wondering how much of what jerome powell and the fed has to do with the fact that they're up for reappointment
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within a year. >> look -- [laughter] absolutely. you know, when you're in politics, when you're in the government, i always like to say the sole purpose of an elected politician is to get reelected. i hate to be jaded, but look, powell has a fantastic job. it must be fun to be the fed chairman. i'm sure it comes with a lot of perks. and so what do you want to do? you want to keep being the fed chairman. he's on kind of dangerous ground in that he is, you know, who would possibly not have been biden's first pick, so he's doing everything he can, i think -- he's going to, obviously, say the opposite -- to do the government's bidding. and that means pumping the economy up with more money. why? the fed -- why the fed is even involved with the9 housing market or the government involved with the housing market, it boggles my mind, but they -- david: they keep underrating the effect of all of this on inflation. they keep having to change.
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the white house does exactly the same thing. they based their last budget with on an idea of 2% inflations which is totally out the window right now. the fed has just upped its prediction of inflation, i think it's 3.5% now. but it's already above that. >> yeah. they kind of -- the word transitory, by the way, a david, you and i both know was a word created to make everybody feel okay about inflation that's happening right now. and transitory where we used to think, oh, that's like a month or two, transitory now is kind of like, oh, it's a couple years. reading a great article today, don't worry about inflation. ten years from now people are feeling it's going to normalize. i'm, like, ten years? that's a lifetime. we just had a great recession 12 years ago. again, we've got to be really critical about our words, how we're viewing this, what we're doing, what we're thinking and how this could affect asset prices. and i think, again, gary's right, the fed is probably going
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to tow the line here because, last but not least, who want toss go down in the history books as the guy who ruined the economic -- the person who is responsible for cutting, you know, the money off to the american public? they don't. david: yeah. >> and it's unfortunate. david: let's hope it's not too late. we'll see you gentlemen later in the hour. after the break, stopping border wall construction actually is costing more than the border itself. why taxpayers are paying a big bill for the biden administration to stop building the wall. we want want to hear details on this coming up. ♪ oh, i want some more. ♪ oh, what are you waiting for? ♪ say good-bye to my heart tonight ♪♪ i've spent centuries evolving with the world. some changes made me stronger.
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♪ >> all that biden had to do was continue the trump policies, and we would have no problem on the border what so far. but now it's getting -- whatsoever. but now biden is opening the floodgates for people who are coming from countries where there's an extremely low vaccination rate. there's an e extremely high number of people coming across the border who do have covid. david: golf greg abbott -- governor greg abbott slamming the biden administration as the
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administration is actually spending $2 billion to stop construction of the southern border wall. hillary vaughn has the latest from capitol hill. hillary, government can even money when stopping doing something. >> reporter: when it's doing nothing, that's exactly right. president biden pressing pause on building that border wall. it's still costing taxpayers a ton of money. a report from republicans on the border management senate subcommittee dug into the numbers and discovered putting construction on hold has cost $2 billion so far this year, and it's continuing to cost $3 million a day. when biden took office, there were 211 miles of border wall going up in border towns like san diego, el paso and tucson is, a total of seven projects that have been at a stand still under biden. but the contractors are still getting a paid to drive out to each project site and basically guard palettes of -- pallets of steel and other construction equipment sitting vacant. >> it's an obscene waste of
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taxpayer money. senate republicans are scrambling right now to pass an infrastructure bill that's a paid for -- that's paid for. we could use this $2 billion that he is wasting. that would overlay about 1,600 miles of four-lane highways. >> reporter: the biden administration said canceling the wall is actually saving taxpayer money, calling it a waste of money to spend in some cases $46 million to build a one-mile stretch of wall. a spokesperson with the office of management and budget gives me this statement. quote, we take our obligation to be responsible stewards of taxpayer dollars seriously which is why we are stopping the prior administration's wasteful expenditure of $15 billion on a needless wall and are returning remaining military funds. the white house made the argument haas month, dade, that they think -- david, that they think a wall is basically outdated, and they want to spend the money instead on a more
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modern approach to border security. but the problem is these contracts cannot be terminated without costing a lot of money as well. so it's not as easy as stopping the wall and putting the money elsewhere. david. david: unbelievable. hillary, thank you very much is. joining me now is impact chairman and ceo, former commerce secretary of the united states of america, carlos gutierrez. carlos, great to see you. thanks for being here. what do you think of this? i mean, we're in the midst of an extraordinary immigration surge, one of the biggest we've ever seen in this country, and here they consider a wall to be needless, and what they're doing to be working. what do you make of it? >> well, in terms of -- and i was just hearing you talk about the border wall. you know, as long as there are jobs wanting filled, we're going of illegal immigration, and that
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is a fact. and the only way to change that is to change the laws so that businesses can can be served with the right am of labor. amount of labor with. that is the solution, not building another wall. small businesses are getting impacted in a big way because they see inflation -- so on one hand they're seeing inflation. they know they have to pay more to get people to work. they have to raise prices. and then on top of that we we have a resurgence of covid. so this is a tough, tough time for small businesses -- david: it's a terrible time for small businesses. and -- >> [inaudible] the economy, new buzzes. david: yeah. but wouldn't a better answer for the labor shortage, wouldn't a better answer for the labor shortage be to stop these extraordinarily expensive payments, hundreds of billions of dollars of extra money which essentially is providing people
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on the low end of the income scale with more money for staying at home than for going to work? i mean, wouldn't that be a better way to deal with the labor shortage? >> well, i think that's one of the extraordinary things of our times now is that the labor participation rate is low, there are businesses that can't find enough workers. i do think we're spending way too much money. inflation is coming -- david: it's here. >> -- surprised that the fed has not done anything. so we're spending money now, we're trying to get another $3 trillion. consumer savings are at an all time high because people haven't been able to spend the money. david: exactly. >> so when -- if this post-covid period happens, we're going to see a surge in spending. money supply is already high. i think we're asking for trouble. we're going to see inflation
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first, and then we're going to have to do something to bring inflation down which usually means a lot higher interest rates and going into a slowdown party period. slowdown period. so we're spending way too much money. david: and, again, the consequence -- it'd be one thing if the consequence of that spending was beneficial. if it's just creating or exacerbating the current labor shortage, actually creating more problems than it's solving. i want to switch, if i can, to cuba. because the administration has taken a couple of kind of itsy bitsy steps towards the democracy movement in cuba. a lot of people say it's not enough. what do you say? >> well, look, i was born in cuba, and i grew up in a very hard-line household, so i understand the emotion, i understand the feeling, the pain. but i do think that this is a time for strategy. it's a time for more wisdom and
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less emotion. and we need to understand that we're ott not going to create -- we're not going to create political change in cuba. that's going to happen inside of cuba. so we need to develop a relationship with the cuban people. but at a time when they need us, at a time when they don't have enough to eat is when we have clamped down on sanctions. so we need to restore the ability to send remittances, we put a limit on that. we're not helping the cuban people, and i think that's what we should be talking about, how do we help the cuban people, how do we build goodwith the cuban people. -- goodwill with the i cuban people. and in terms of just historically speaking, the cuban people remember. when we needed help, the united states just tightened and tightened even more.
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sos this is a domestic issue. dead david well, sir, with all due respect, it's a domestic issue only to the extent that the cuban people are suffering, but they're suffering primarily from a horrible communist government. that's the source of the problem. do we really want to give them any benefits? because we know a lot of the benefits that we mean to go to the cuban people end up in the pockets of communist government officials. that's happened many times before. >> yeah, i understand that. if you send down remittances, maybe they take 10, 20%. maybe a 25, 30%. but at least you have 70 or 80% going into the hands of the cuban people. that's the important thing, is building a relationship with the cuban people. they need our help. i've heard that, you know, there's going to be a bloodbath in cuba. well, there's going to be a
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bloodbath if our policy continues to be that we're going to squeeze so hard that we want people to revolt. people don't have arms. people can't really revolt and overthrow the government. the political change will come from inside. in the meantime, what we can do is help the people who are struggling because they're in the middle of this -- david: yeah. well, for more than 60 years, for more than 60 years they've been struggling, and the bloodbath many people would say has already taken place in cuba by what's happened with the communist government over the past 60 years. so it's -- we don't want that bloodbath to continue -- on that, i think you and i would agree. [inaudible conversations] we could talk for an hour, but we've run out of time. carlos gutierrez, thank you very much. coming up, why the moratorium on evictions is facing new legal pushback. details after this. ♪
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♪ david: welcome back. growing pushback over protecting renters. a federal a appeals court now calling the cdc's eviction moratorium unlawful as the biden administration seeks to dole out more aid to homeowners. fox business' ed lawrence is live at the white house with the details. >> reporter: hey, david, and you know landlords are getting pinched to this as the economy's opening up, people are spending more money, but the cdc keeps extending that eviction moratorium on renters. it ends now on july 31st unless it's extended again. what's happening some places you have people who are not paying landlords. in many cases, this is a difficult issue that has ended up in court. one attorney that won cases against the cdc for landlords in ohio and indiana spoke with me this morning and says there's no guarantee the landlords will get
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any money from tenants who have not paid in the last year or more. >> the landlords are on the hook for paying their local state a taxes, on the hook for paying their mortgages. they still have to provide all the services and the upkeep. so on the one side of the ledger, they have all of these expenses and yet no way to bring in that revenue. >> reporter: and he says that there are legitimate people who meet legitimate need and need this help, but there are a growing number of people who are abusing the system is. the political pressure from the far heft is calling on the cdc to continue its moratorium. it keeps extending it without even taking public comment, he said. some economists say the extension of this help for renters is having unintended consequences. now, the administration is also extending help for homeowners here with federally-backed mortgagings. this program allows those people to extend the length of their loans, thus reducing the rate
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that they pay each month. it's for anyone that was in that forbearance program that allowed people to skip payment for up to 18 months. you have extra unemployment benefits, help for renters where they're paying rent-free in some cases, help with homeowners who get to lower their payments, it's killing the landlord business but possibly, some say, pushing inflation forward as more money then is coming into the system. back to you. david: edward, thank you. let's bring back gary b. smith and jared levy. jared, is president biden jeopardizing our recovery by extending benefit after benefit if. if -- >> yes. here's what i don't get, this doesn't make sense. it's almost twilight zone. quickly, you've got an economy that's actually booming. you look at gdp growth right after the town turn, i mean -- downturn, it's been exploding. you've got businesses with vacancies willing to hire, paying more than they ever have
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in bonuses, in salaries, dying for employees. and yet you've got a president like, no, no, we need help. i don't -- something doesn't make sense. it doesn't fit. and i don't know if there's an ulterior motive from president biden, if something -- but we need workers. businesses need help. they're willing to pay for that help. the economy's booming. we do not need additional stimulus -- [inaudible conversations] david: yeah, it does make sense, gary, and i think president biden has admitted it. he wants to grow government. he thinks more government makes america better. a lot more government. if you add up everything he's talking about, $6, 7 trillion, doubling the size of government. he thinks that's good. what do you think it's going to do to our economy? >> well, first of all, it isn't good. it's good if you want to get reelected. look, the more people on the
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dole, the better it is for those giving out the money. i'm a perfect example. i'm about to collect, start collecting social security in a year or so. i don't want the government to go away. but is it good for the economy? no. it first has to be demand, demand has to plug in. you just can't go across the country and give everyone a million dollars, two million dollars. it's got to come from somewhere. demand has to be out there stimulated. that causes the need for goods. we have tried in the past -- look, we have been fighting, for example, the war on poverty since the '60s. we've poured trillions of dollars into it. david: yes. >> it's shown to be ineffective. this is just another taken to the extreme. but like i started out with, and you said right in the beginning, where does it all end? it doesn't end until the politicians get elected and reelected. you're going to finding the republicans getting onboard with
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this. david: yeah. well,ing the one thing we do know it may not have affected poverty rate, but the trillions that we began spending in the '60s led to the double-digit inflation of the '70s, and if we do the same thing now, we'll have the same result. that's just the way it is. whatever country you're talking about, whatever administration, if you spend that kind of money, you end up with inflation. and i don't know how republicans can hold democrats accountable for inflation if they sign off on any of of these spending programs. that's a whole topic for another day. jared, gary, great to see you both. thank you for coming in. coming up, the president set to make a major announcement about the middle east. that's in the next hour. what the president is planning, we've got a sneak preview when we come back. ♪ airplanes in the night sky are like shooting stars. ♪ i could really use a wish right now, wish right now, wish right now. ♪ could we pretending that airplanes in the night sky are
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♪ david: a major change in the middle east. president biden is set to announce the end of the u.s. combat mission in iraq when he meets with the iraqi prime minister at the white house just moments from now. let's get reaction from retired lieutenant colonel danny davis. colonel, good to see you. is iraq really ready for a u.s. withdrawal, a complete u.s. withdrawal? >> well, you know, the devil's in the details to some respect, but you've got to look a little deeper at a what both sides are actually saying, and they're not talking about a withdrawal from iraq which is what they should be talking about. what they're saying is basically converted into an advise and assist mission. nobody's talked about how many troops may or may not come out. but look, right nows this is a net loss for the united states because no one is even addressing the right question which is how is it in america's interest to continue this relationship? and the answer is, it's not, because it's all risk and no reward. i mean, if anybody thinks this
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is changing the title to advise and assist from combat troops is going to make any difference, thoses are over there -- those troops are over there in a combat zone is. 50 times this year there have been attacks on our troops. it's basically playing russian rue met for one of those to actually hit the target. and then just watch, if american troops are killed, biden will not just be pressured to fire -- tactics, he'll be pressured to strike in iran proper. now you've got the possibility of an actual war which would be catastrophic for our needs. we need to withdraw them all. david: this is more in the overall strategic area. we just had the iranian negotiators, they're sort of doing some under the counter negotiating now, about a new iran deal that, of course, president trump pulled away
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from. but the iranians want to condition their going forward on the condition that the united nations, an institution that has not been very favorable to the u.s. in the past, has to approve of any future withdrawal from say president trump is elected again in 2024 and he wants to pull out of a biden iranian deal. the u.n. would have to approve of that. what do you think of that policy? >> well, look, iran can hope for whatever they want. they can ask for whatever they want, but, you know, it's contingent on us agreeing to it. and i can assure you whether it's a democrat or republican in the white house, they're not going to make any deals that they don't feel as in the -- that. david: hold on, hold on, you just admitted that the u.s. has made deals overseas in the middle east so, yes, we have made deals that have not been to our benefit. forgive me, sir -- >> fair enough. [inaudible conversations] i agree with that.
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david: -- the biden administration, there may be people in the biden administration who would go for that. >> fair enough. there has been a lot of things, in fact, that's why we've had these forever rules because people do things that aren't in our interest. i'm talking about presidents. i hope we don't do anything that's not in our interest, but look, even when trump pulled out of that a deal, it was with the intent to negotiate a better deal. so you're going to have to negotiate something so that we can at least improve the situation from our side, and that's what this is really all about. david: colonel, we've got to leave it at that. the devil's in the details, we're going to see some of those details coming up in the next hour. well, an extraordinary new report showing many of the democrat mayors who have been calling for defunding the police, well, guess what? they're actually spending millions on private protections for themselves. lydia hu has the latest from manhattan. hi, lydia. >> reporter: hi, david. the report finds that there are 20 cities that are either defunding the police or planning to do so while they also spend
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taxpayer dollars on private security for their mayors or other elected officials. take chicago or san francisco, for example. it's costing taxpayers millions of dollars in those cities. now, the report is authored by a nonprofit called open the books, and it tracks government spending. >> they've got a lot of explaining to do. you know, why is protection for the citizens in the neighborhoods, why does that matter less than their own personal police security detail? and that's a question they probably don't want to answer. >> reporter: now, david, here are some examples. take chicago. it cut 400 police officer positions last year while it spent $3.4 million on private security for, quote, unnamed city officials. in san francisco officials plan to divest $120 million from police over two years while they also spend $2.6 million last year on the mayor's security detail. and in baltimore, maryland, that
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city eliminated about 22 million from its police budget as the city spent $3.6 million on private security. we reached out to each one of these cities, and we did not hear back, david. david: no accountability but open the books. thank goodness for open the books. they do great reporting on this. lydia, thank you very much. well, california now requiring proof of vaccination for all state employees and some health workers. this just happening. the program requiring advantage vaccination proof from all state employees by august 2nd. and, again, this is in the public sector, not in the private sector yet. more cavuto coast to coast right after this. ♪♪
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jennifer, great to see you. it is a question of supply and demand. you have all this demand that's been pent up for a year and a half with the lockdowns and everything, but the supply is short because with, one, we have a labor shortage -- i think because of government policies -- but also because of the fact these supply chains are stuck. when do we see an end to this? >> thank you so much for having me. you are absolutely correct. we are seeing havoc on the auto industry just as one example because of the chip shortage, and buybacks. traditionally a car owner would never think of selling their car after their lease term is up to flip it for a profit, but now they have the opportunity because the used car industry is booming. they're coming out of their lease and flipping it for a profit. there's no new cars out this. this is definitely a problem that we're seeing across multiple industries but definitely auto industry being hit hard.
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and hopefully we'll see that playing field level off shortly. but another industry that's being affected by it is my industry, the payment processing, because we rely on the chips for the equipment that's out there for businesses to be able to process their credit cards. david: interesting. but when, you know, the key question is when. that's always the case in markets. when do you think we're going to see an ease in the supply chain? when do you think we're to going to see policies? the president, god willing, says these extra payments for the government which are causing the labor shortage will end in september is. is that what we have to a wait for before things begin to come on line again? >> well,ing i think that chip shortage problem is being worked on right now as you see overseas. china and taiwan are working to get that chip shortage, you know, finished right away because, you know, don't forget it's not just about getting it made, it's also about transportation into the united states. that takes time too.
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but once again the process has started. you know, nobody foresees that this was happening, and so we started a little bit late because of the pandemic, and, you know, things were not in process. people were working very slowly, and they're just starting to come back. so hopefully by the end of this year we should see, you know, everything come back on line disease it should. david: -- as it should. david: have you seen a switch with from the american processing companies, is that going to be permanent or is that just to fill in a temporary gap? >> i end mean, i think it's always been, we we always rely on overseas, unfortunately, which is a big problem. but i think we're going to continue to rely on it unless government steps in and says, you know, this is what we need to do to get it, bring it back to the united states so that everything is made here can and we won't be relying on overseas, china, taiwan, japan. david: and only about 15 seconds but, obviously, when you have
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such shortages, you have increase in prices. that, again, is supply and demand. are we going to see an increase in all prices for products that rely on chips? >> absolutely. prices are skyrocketing right now, and it's definitely going to take time for things to calm down. and the victim at this point is really the end user. david: jennifer, thank you so much for being here, appreciate it. good to see you. a quick market check now. the dow and the s&p, even though they're only minimal increases right now, 35 points on the dow, less on the s&p, nasdaq is still negative, but if the dow and the s&p close in positive territory and if, in fact, it happens for nasdaq, if nasdaq turns around, we will see new record closes after erasing earlier losses earlier in the day. that's what could happen by the end of the day. more "cavuto coast to coast" right after this. ♪ ♪ now that we've found love what
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david: we knew this was going to happen. growing concerns over jet fuel undersupplies. american airlines are now warning pilots about delivery delays at certain airports, asking them to save fuel when possible. flying not as quickly. the shortage being blamed on lack of truck drivers, trucks and fuel supply.
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airlineses said flights will carry additional fuel into airports affected by shortages. wow. tesla shares higher today before earnings after the bell. they are eyeing the vehicle new production timelines after tesla posted record deliveries last quarter and impact of growing chip shortage and the effect of that on the company. it is time for my friend charles payne. charles, over to you. charles: thank you so much, my friend. great having you in on this monday. good afternoon, i'm charles payne. this is making "money." we see major industries unchanged but belies under the surface ahead of earnings from the biggest companies in the world. there is speculation that the fed may tip it its tapering hand. making money from the fourth industrial revolution. why technical analysis works and

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