KLZ 560 AM DENVER'S CONSERVATIVE HOME STATION
Menu
HR3 Safest Way to Park, AI and Rabbit Holes, Beyond Meat – Bankrupt 8-13-25 by John Rush
SPEAKER 16 :
This is Rush to Reason.
SPEAKER 12 :
You are going to shut your damn yapper and listen for a change because I got you pegged, sweetheart. You want to take the easy way out because you’re scared. And you’re scared because if you try and fail, there’s only you to blame. Let me break this down for you. Life is scary. Get used to it. There are no magical fixes. With your host, John Rush. My advice to you is to do what your parents did.
SPEAKER 14 :
Get a job, sir. You haven’t made everybody equal. You’ve made them the same and there’s a big difference.
SPEAKER 11 :
Let me tell you why you’re here. You’re here because you know something. What you know you can’t explain, but you feel it. You’ve felt it your entire life. That there’s something wrong with the world. You don’t know what it is, but it’s there. It is this feeling that has brought you to me.
SPEAKER 14 :
Are you crazy? Am I? Or am I so sane that you just blew your mind?
SPEAKER 15 :
It’s Rush to Reason with your host, John Rush. Presented by Cub Creek Heating and Air Conditioning.
SPEAKER 16 :
And we are back. Hour number three, Rush to Reason. Denver’s Afternoon Rush, KLZ 560. Hour number three. Thanks for joining us. Okay, I’ve got an article out of USA Today. Which I’ve talked about this one in the past because of my car end of things, drive radio and so on. And I’ve had this conversation many times over and it always cracks me up when I see this debate going on online because there are some people that will argue this until they’re blue in the face that this is the incorrect way to do things and that my way is the wrong way. But USA Today just came out with an article, and this is coming from AAA Michigan. So this is an article that has kind of a rewrite of, you know, or includes, I guess, some experts from AAA Michigan. The best way to park. Is it better to pull in or back into a parking spot? It starts by saying, in summertime, you might have noticed that parking lots at those big regional shopping malls or even big box stores are more crowded than usual. For Americans, it’s become a sport, jockeying for the best possible parking space somewhere within a few miles of your destination. An age-old question remains, however, should you park forward or back into your chosen parking place? Gary Bubar, a traffic safety specialist with AAA Michigan, so again, he’s the traffic safety specialist, says it’s actually better to back in if you can. What the research suggests is that any time that you can minimize your blind spots, when you exit the parking spot, you’re less likely to have any kind of a fender bender or any other mishap. When you’re backing out of a spot, there are multiple blind spots that can limit your vision and make it more difficult to see any drivers that might be waiting for your spot or coming down past you. He acknowledged that backing in might not be a popular choice with every driver, but he said that probably has something to do with the situation. Comfort level. As drivers, if we don’t practice something much, like parallel parking, we may not be comfortable with doing that maneuver. But consider the times that you’re at a garage or parking structure, if you insist, for a ball game or a show, many drivers… who already arrive early will back into their spaces to make it easier to exit and boost their visibility as they do so. When a line of traffic is crawling out of a parking garage, sometimes it’s also easier to slide out of the parking spot than hope someone will let you back out. Yeah, you know, I can give example after example after example of where backing in is far better than pulling in to a spot. I get it. For some people, it’s not as comfortable to do, but trust me, if you’ll practice… and become efficient at it, it’s frankly faster and easier to back in and out of a parking place than it is to pull in and then back out of said parking place, mainly because if you think about this, When you’re backing in, because of where your front wheels are in relation to the back wheels and the fact that because the front wheels are turning, you get a better way to pivot into the parking place. It’s actually easier and faster to back into the space than it is to pull in to the space. Same can be said for pulling out of the space. And I can tell you down here at the station, which I don’t want to get on my soapbox, but I work in an area here, Charlie and I both do, whereby, and I’ll just say it, we have the dumbest drivers on the planet that actually come in and out of this building. I have no other way to say it. I don’t know why. Actually, I do. I have kind of my own reasons why that I won’t say on air. But they can’t drive for crap, literally. They do not know how to drive. Parking is even secondary to driving. They struggle to drive. They really struggle to park. And I mean that with all sincerity. They do not know how to drive. They do not know how to park. So I watch things go on in this parking lot on a routine basis that you literally just look at. Some of you out there listening would be looking at thinking, what did they just do and why? How did they just get in and out of that parking place? Why did they make that maneuver? I literally there are days where I just I go home shaking my head. I can’t believe these drivers even get from A to B in one piece. Now, you guys all know me. I’m a very particular individual. I like my car in a particular way. I don’t drive dirty cars. On and on we go. And I also don’t drive cars that are dinged up. So I do my very best to park in ways whereby no one can get close, nobody can get around you, nobody can get you a door ding, all that kind of stuff. I do my very best along those lines. And even with all that being said, if you leave this parking lot down here without a door ding, you’ve done really well. Call it a successful day. Because these folks can’t drive. And backing in, I’ll just tell you straight up, it ain’t happening here. Again, these people are lucky to go from A to B and even get in the parking place, nonetheless back into the parking place. Now, I don’t find backing in to be that difficult. And no, I don’t use the rear view camera system that come on most new cars. They get to drive a lot of new cars because of what we do with drive radio and such. But the reality is I don’t use those. I still ask my wife. I use my mirrors. I rarely use the center screen. Occasionally might use the center screen just to make sure that maybe you’re not backing into something too far. You know that if there is an overhang or something like that, I might use a rear view camera in that regard. But as far as backing in, I’m a mirror guy. It’s how I learned to drive. It’s what I still do to this day. And I have no problem backing into anything because of that. Something that I think, by the way, they should teach more in the driving lesson, you know, the learning to drive end of things. It should even be on the test as far as I’m concerned. And part of my backing in, by the way, comes from how I grew up, because when you grow up in a car dealership, every car is backed in because you can’t sell cars. Nobody wants to see the back end of a car buying it. They want to see the front end of a car. So you’re taught at a very early age. I was taught at 12 years of age. If you’re going to pull a car in, you don’t pull it in, you back it in. It’s standard procedure because you can’t sell cars from behind. The back end of the car is typically the worst-looking end of the car, not the best-looking end. There are some cars that are exceptions to that, but typically the front end of the car looks way better than the back end, and it’s done that way on purpose. Meaning when you’re at a car dealership, you will never go to a car dealership unless somebody made a mistake and see cars pulled in that are trying to sell. They’re all backed in. So in my world, I grew up backing in. It’s just kind of the way I learned. And I have been backing into parking spots and doing other things like that ever since. I don’t think I’ve occasionally, depending upon what’s going on, I might pull into a place or I might pull through a parking place where you’re still backed into the space, but you pulled through. Rarely do I just pull into a place and pull up. occasionally, depending upon the circumstances, I might, you know, some of the angled parking places where it’s really hard to back into, you kind of don’t have a choice and you might have to pull in. But I do my very best to back in. And USA Today and this article is proving that that is the proper way. That is the safe way, I guess I should say. Not necessarily proper, but that’s the safe way to do it. Now, the other thing that I will tell you, and my dad taught me this at an early age as well, the other reason to back in versus polling, especially at home. I’ve said this many times. I’ll keep saying it. I’m going to talk about tomorrow with kids and what you’re posting on the Internet, especially with them going back to school and so on. If you want to keep your kids as safe as possible, back into your garage, back into your driveway. More accidents with young children occur at home where parents back over their kids and than probably anything else. We worry about shootings and poisonings and all sorts of other things, and yet this particular topic, we don’t ever talk about. It’s never brushed upon. And I don’t know why, because it is one of the leading causes of kids, you know, and that’s partly why they put backup cameras and made them mandatory in cars and so on is because of what I’m talking about. There are more accidents along those lines in your own driveway because of people pulling in versus backing in. Because keep in mind, you back in, and as you’re pulling out of the garage, you’re seeing everything in front of you. Kids, balls, tricycles, you name it. Skateboards, whatever. You’re seeing all of that. you don’t see it necessarily when you’re backing out. So just a point of being safe. We’re going to talk a little bit more tomorrow about how to keep your kids safe online and so on, but that’s coming out of USA Today. Flesh Law coming up next. Speaking of all of this and driving, if you’ve got any kind of a problem at all when it comes to accidents and the other party is not doing their part, you’re not getting any communication back from them, call Kevin Flesh. Get him involved right away. 303-806-8886.
SPEAKER 05 :
Here’s why you need personal injury attorney Kevin Flesch on your side. He understands the way the jury thinks. In the context of a personal injury case, you’ve been hurt by someone else’s negligence. The idea is that you’re going to try to recover so that you can get back to where you were just prior to that incident occurring. What that really means from a jurist’s perspective is that you’re going to be asking them to award you money. So when we talk about fairness, we’re talking about six people that you don’t know. Those six people view the evidence and make a unanimous decision that will decide what the fair value is. When you’re the one who’s hurt, you have a good idea of what you think it’s worth. The question is, can you persuade those other individuals whom you don’t know and were witnesses to believe that’s what the case is worth? Kevin Flesch understands the way the jury thinks. Call now for a free consultation, 303-806-8886.
SPEAKER 16 :
All right. Up next, Dr. Scott Faulkner. And talk to Scott today. And if there’s anything you need when it comes to medical care, you want a great doctor that thinks like you, that will do things that your doctor just doesn’t have the ability to do. Talk to Scott today, 303-663-6990.
SPEAKER 02 :
Tired of rushed appointments and cookie-cutter care? At Castle Rock Regenerative Health, Dr. Scott Faulkner offers true concierge medicine, personalized, unrushed, and on your schedule. Not the schedule of big health care, no crowded waiting rooms, no waiting weeks to be seen. Dr. Faulkner isn’t tied to the limitations of traditional practices, so he can focus on what matters most. you. He takes the time to really listen, understand your goals and customize care to fit your body and lifestyle. From regenerative therapies and IV nutrition to integrative whole body health solutions, you’ll get advanced options designed to help you truly heal and stay healthy. If weight loss is part of your journey, they offer medically guided plans tailored to you, helping you lose weight safely and sustainably with real support every step of the way. And for those experiencing changes in energy, Mood or vitality? Ask about our personalized hormone therapy. We’ll help you restore balance and feel your best at every stage of life. Ready for a different kind of health care? Visit CastleRockRegenerativeHealth.com or call 303-663-6990 and start your journey with Dr. Scott today. You can also find Dr. Scott at RushToReason.com.
SPEAKER 09 :
The big beautiful bill ends all tax credits for solar and backup power on December 31st of this year. Until then, you can still get 56% back on solar and 66% on backup power. If you’re with Xcel Energy, your backup power is nearly 100% reimbursed. Colorado has all this sunshine, and the government is still paying for most of the cost. Your system must be installed and running before December 31st to qualify for the tax credits and rebates. Call Allen Davis today at 303-378-7537. That’s 303-378-7537.
SPEAKER 16 :
This is Rush to Reason on KLZ 560. And we’re back. Conrad, you’re up next. Go ahead.
SPEAKER 13 :
Hey, Betty, you hit one of my hot-button issues. I always back in when I park you there from, like, a diagonal parking lot, like at Safeway or something. I’ll look for a place where you can just pull right on through and park, so when you pull out, you’re not going to… Me too. You know, the last point you made is exactly the reason I do it. I don’t want to run over… a little kid or a dog or a cat or something, you know.
SPEAKER 16 :
Or, you know, depending upon what you’re driving, and, you know, you and I, Conrad, are used to driving larger vehicles, trucks, and so on. And the other thing for me is, you know, it could be a little kid, could be a shorter person. They could be, you know, pushing something that, you know, you’re just not paying attention to. And the reality is, yeah, A, I want to be safe. You know me. First of all, I want to make sure that people around me are safe. But on top of that, I don’t want my car all banged up. Exactly. You know, the other thing about pulling out of a parking place versus backing out, most accidents occur in a parking lot. We all know that, especially the little fender benders. And the reality is two people backing out at the same time, they typically don’t see one another. Boom, now they’ve crashed into one another. If you’re pulling out, that doesn’t happen.
SPEAKER 13 :
Yeah, I’ve tried and tried to get my wife to learn how to do it, and she refuses to. You know, but she couldn’t park a bicycle. I love her, but I’m just telling you that’s the way she is.
SPEAKER 16 :
Well, and I think, you know, to your point, and this is not to be critical of anybody, Conrad, I think some do, you know, they’re a little bit more, you know, parking challenged, I guess you could say. And there is just a, you know, this is the thing, too. There’s a little bit of moment of time on the front side where you’re taking a little bit more time to park, but But you’re making that back up and then some on the way out. So it’s that old saying, Conrad, you know, either pay on the front side, pay on the back side, either way you pay. Well, in this case, I want to pay on the front side.
SPEAKER 13 :
That’s the way I am, too. I always believe in getting the hard part done first and the easy stuff comes later. That’s how I roll, and I know you do, too.
SPEAKER 16 :
And really quick, the other thing that I’ve kind of struggled with on the parking challenge side of things, it’s like, okay, well, you’re going to back in or you’re going to back out. I mean, it’s the same motion either way. You’re still making that backward motion at some point. Isn’t it easier just to back in to begin with?
SPEAKER 13 :
Exactly. That’s my thought. Sometimes, though, people, they get frustrated with you or, you know, they’ll sit there and you’re trying to park and they pull up and you’re trying to maneuver in there like, hey, just back off a minute until I get in here. Right, right.
SPEAKER 16 :
I hear you. That one I totally hear you on, Condor. They look at you with this look like, you know, what are you doing? Well, I’m backing in. Give me a second. Yeah, exactly. You know, this isn’t that complicated. You should be doing the same thing.
SPEAKER 03 :
Really quick.
SPEAKER 16 :
Now, hang on. Just because I’m on this, I can’t stop. I’m sorry. I can’t stop myself, Conrad. My other pet peeve along these lines is, you know, you’re driving something, maybe something a little larger, you don’t want a door ding, so you go park out at the very end of the line, of the parking lot even. You get clear out on the edge, and sure shoot, and you come right back out, and guess what? Somebody’s parked next to you.
SPEAKER 13 :
Yeah.
SPEAKER 16 :
I don’t get that one either.
SPEAKER 13 :
Well, then another thing I do is, like, you know, my Gran Torino, and you probably do it with your Buick, too. When I drive them, I’ll, like, park way out of the way someplace, and then I park, like, sideways across several different parking spots. Well, then you get the stink eye if you come out for that.
SPEAKER 16 :
Huh? Then you get the stink eye from people when you do that one.
SPEAKER 13 :
Yeah, yeah. Most people are pretty cool when they see it. An old classic. They get it.
SPEAKER 16 :
Yeah, good. Good stuff, Conrad, as always. Appreciate you, man.
SPEAKER 13 :
Take care, brother.
SPEAKER 16 :
I appreciate you very much. Have a great night. All right. This one is an interesting. Andy sent me this one this morning, actually. And I hadn’t seen this article, so I appreciate him sending this. I did read an article along these same lines. But in this particular case, this is an article out of Breitbart. A tennis star, Emma. I’m sure I’m going to butcher this last name. I’m not sure I’m pronouncing that right. I don’t know tennis, so I apologize, and I apologize to her. But she complained about a crying baby, crying child, during a match. She’s a British star. She appealed to a judge to have a crying child removed from her match against Arina Sabalenka on Tuesday at the Cincinnati Open. The controversial moment occurred in the third set of the heated round of a 32 contest as she got ready to serve. Then the sounds of crying could be heard from the stands. You know what? I’m on her side. I’m on her side. And why? This is something that baffles me and my wife both. Why people feel like. They have to drag their kids to every single thing they do is beyond me. That one I don’t get. You know, you don’t have a babysitter. There’s nobody else around that can watch your kid. You feel like you really need to bring him to a tennis match, which, by the way, they’re going to be bored stiff at. Guaranteed, this kid that’s crying is not interested in tennis. So why are they there? Why do you feel the need to drag your kid everywhere you go? That one I have yet to understand. Oh, I know what I was reading. There was a singer, somebody at a concert. I don’t know what kind of music this was. It was loud. The concert was loud. And this particular singer saw a lady in the audience with a little kid and literally said, From the stage, chastise this woman for having a young child, a baby, basically, at the concert where the decibel levels were extremely high. Basically saying, what in the world are you doing with that baby here? Why do you feel the need to bring your baby to a concert? And I would have the same question when it comes to other things. Why the need to drag your kid to every event you go to? They’re not a stuffed toy. They’re not even your dog. And by the way, there’s times dogs don’t need to be with you. But at the end of the day, why do people feel the need to drag their kid every single place they go? That one I’ve yet to figure. I didn’t do that. There’s people, babysitters and other things out there that you can, you know, parents and so on to whereby you don’t drag your kid everywhere you go. I’ve yet to figure that one out. Why do people feel the need? In this case, a tennis, you know, pro tennis sporting event. Why do you have to drag your crying kid along? And if I’m offending somebody, you know what? So what? Leave your kid at home. I love kids. I raised a bunch of them. I love my grandkids. But I don’t get this trend, I guess you could call it, where the kid has to go everywhere you go. It’s almost like they’re attached to you at the hip. Your kid will be fine without you. In fact, in some cases, probably better off without you because you’re an awful parent in the first place. So why are you dragging them with you? There are some things, by the way, where kids just don’t need to experience some of that stuff until they’re older anyways. That’s my opinion. Why are they there? You guys have heard me talk about this. You go to a nice fine dining restaurant and there’s some toddler running around. That one I can’t wrap my head around either. Why? Leave that kid at home. Get a babysitter. Go out for a nice dinner with your spouse on your own and leave the kid at home. Why are they there? Other than to screw it up for everybody else. Because that kid doesn’t want to be there. No more than we want them there. So why do you drag them along? And I know I’m not talking to my audience. You guys are all smarter than that. But there are those out there. And I would venture to guess, and I could be wrong in this, but I would venture to guess the majority of these parents that I’m talking to are from the left. I don’t think they’re from the right. I’m guessing most of them are from the left. There will be some on the right that drag their kid everywhere, but I would venture to guess that most parents that do this are on the left, and here’s why. They’re control freaks. They’re control freaks. They don’t feel like little Johnny or Susie can be left alone. They want to control the situation. They want to control who’s with Johnny and Susie, and they want to make sure that it’s them, not a sitter, not even another family member for that matter. That’s my take on it. I could be wrong, but I’m guessing that the majority of these folks that drag their kid everywhere are from the left because it’s a control situation. It’s not what we believe in. On our side, you’re free to do whatever you want to do. Just don’t bother me. You know, you do you, I’ll do me, and we’re good to go. And, yeah, somebody can watch my kids, and they’ll be just fine. I can delegate the watching of my kids to somebody else. We talked about that with Richard Battle at 4 o’clock. Delegating is easy to some, not to others. So, again, I could be wrong, and maybe I’m out of line by saying that I think, you know, most of these people that drag their kid everywhere are from the left, but I don’t think I am. You can get a pretty good bead on people. You know, not always. Sometimes it’s deceiving that, you know, you look at somebody and they turn out to be a really solid, you know, conservative or you look at somebody and they’re a raging liberal. Typically, though, you can pick out just by body language and facial expressions and so on is somebody on the right or the left. I’m sorry. You can see it because most of the people on the left are miserable. They are. Sorry, they are. They’re miserable. You can tell by looking at them. They’re in misery. They’re the no fun league, NFL. And then they want to drag their kid along with them. And again, I’ll just tell you straight up. Most of the time, these kids don’t want to be there. That’s why they’re fussing and crying and throwing fits and so on, because they don’t want to be there. But you drug them along anyways. So in this case, I’m siding with the British tennis star. Leave your kid at home. Why are you bringing them in and then letting them disrupt a tennis match? And all of you know, if you’ve watched any kind of tennis, I’ve never been to a live tennis game, but I’ve watched a lot of matches on TV and so on. And that initial serve, in fact, most of the game is quiet unless somebody scores or they hit a good shot or something like that. There might be some clapping and applause and so on. But the initial serve, it’s like golf. It’s very quiet. they’re there to concentrate. They’re trying to get the serve over the net, trying to pick the spot where they’re actually going to put the ball and all of that. And it’s very quiet. Again, just like a golfer teeing up the ball, hitting a shot, very quiet. Oh, movies. Thank you, Charlie. That’s another one. Leave your kid at home. They don’t need to be at the movie. They don’t want to be at the movie, especially your movie. So leave them at home. Why are they there? Why are they there crying, throwing a fit? So, you know, I’m kind of that person because I was raised this way. Kids should be seen, not heard. And if I’m hearing them, we got a problem. Shut your kid up. Literally. I’m sorry. I’m not trying to be rude here, but shut your kid up. I don’t want to hear your kid. No one else does either. So if you can’t make them behave and be quiet, then definitely leave them home. But in most cases, they don’t need to be there anyways. They don’t want to be there. They’d rather be at home playing with toys or doing whatever it is they do. They don’t want to be with you. You drag them along to serve you, not them. You’re selfish. Because it’s not the kid that wants to be there. This is on you. You’re the selfish parent dragging your kid all over. I know I’m probably hitting some sore spots for a lot of people, but it’s just the way I look at it. I’m sorry. It is what it is. Sorry, but not sorry. Leave your kid at home. Half the time, they don’t need to be where you’re at. Go enjoy yourself. Have fun. Get a sitter. Take the night off. And by the way, everybody else gets the night off, too, because when you drag your kid along, no one else is getting the night off. Roof Savers of Colorado. Dave will help you with whatever roof need that you’ve got, including just making decisions on what should I do. Should I extend the life of my roof? Should I replace my roof? What should I do with my roof? Dave can help you with all of that and help you make those decisions. 303-710-6916.
SPEAKER 07 :
If your roof has sustained hail damage from past or recent storms, don’t wait to call. This damage can leave your home vulnerable to leaks and further damage, but we can be your solution. Hi, I’m Madison Hart. And I’m Elizabeth Hart. Here at Roof Savers Colorado, we provide full-service roofing solutions that cater to the needs of your home, finances, or business.
SPEAKER 08 :
Being a homeowner isn’t getting any cheaper or easier. Deductibles are skyrocketing and insurance coverage continues to decline. Now’s the time to get your roof the replacement it needs. Already filed a claim with your insurance? RoofSafers can use your insurance proceeds to replace your roof and give your home stronger protection from hail.
SPEAKER 07 :
With over 23 years of roofing experience, the Roof Savers team are ready to help. Call Roof Savers Colorado today at 303-710-6916 or go to RoofSaversCEO.com. That’s 303-710-6916 or go to RoofSaversCEO.com to schedule your free inspection and start saving your roof today.
SPEAKER 16 :
All right, Ridgeline Auto Brokers, where if you’re looking for a new used car, looking to upgrade or downgrade, maybe you’ve got a car that’s too big and you want to go a little bit smaller. Whatever the case, Ridgeline can help you find the right car. RidgelineAutoBrokers.com.
SPEAKER 15 :
Looking for the right car at the right price? Ridgeline Auto Brokers makes it easy. We specialize in quality vehicles priced between $15,000 and $25,000. Perfect for first-time drivers, families, or anyone who wants real value without the hassle. Every vehicle is thoroughly inspected by Legacy Automotive, a trusted drive radio sponsor. That means you can buy with confidence, knowing your next ride is ready for the road. No dealer fees. Competitive financing and trades are welcomed. A 30-day warranty on every vehicle. And your first oil change is just $1. Explore detailed videos of every car at RidgelineAutoBrokers.com before you visit. Ridgeline also has a great consignment program to assist you in the sale of your car, truck, or SUV. So if you’re ready to buy, trade, or sell your vehicle, call 303-442-4141 or visit RidgelineAutoBrokers.com. Ridgeline Auto Brokers. The right car, the right price, right now.
SPEAKER 01 :
As independent brokers, GIA Insurance does not work for any insurance company. They can shop the market and find you the best premium for the coverage that you need. Call 303-423-0162, extension 100, or go online to e-gia.com.
SPEAKER 10 :
The best export we have is common sense. You’re listening to Rush to Reason.
SPEAKER 16 :
All right, that last segment, I’m actually surprised all of you. I didn’t get a single negative text message. Everybody was saying the exact same thing I was. In fact, some of you even added that you feel like the reason some of these parents drag their kids all over is because it’s like their accessory or they want to show the kid off. Like, look at my kid. Yeah, you know what? I agree with both of those statements. I can’t disagree with that at all. I think you guys are spot on along those lines. So thank you for those text messages. I appreciate that greatly. Scott Garlis joining us now. Scott, welcome. How are you?
SPEAKER 04 :
Hey, John, I’m well. How are you?
SPEAKER 16 :
I’m doing good. Always a joy. Hope you had a great vacation last week as well.
SPEAKER 04 :
I certainly did, but there was a lot of crazy stuff going on.
SPEAKER 16 :
Yeah, there was. It kind of missed us not talking last week because of everything that was going on, but there’s been a lot that’s happened in the last couple of weeks since we talked. Let’s get into it.
SPEAKER 04 :
Yeah, sure. So I believe the last time we talked was right after the Federal Reserve did nothing. Yeah, did nothing, and we said they were making a mistake at the time. And one of the things we talked about was the job market slowing down.
SPEAKER 03 :
Right.
SPEAKER 04 :
And I think one of the topics of our conversation was Powell even said, hey, look, the risk to job market increasing, if that picks up, it’s going to be a problem. We’re going to have to cut rates. Well, two days later, the U.S. Bureau of Labor Statistics came out and released the jobs data for July, which were not great. And then they downgraded or revised lower the numbers for May and June. And that was about, I want to say it was around 260,000 jobs that they reduced it by, which that’s a big number.
SPEAKER 16 :
Yeah, it is.
SPEAKER 04 :
And so, you know, if you’re the Federal Reserve, you know, you’re making what we talked about. It’s like they’re not really listening or looking at what’s going on. Powell got into this place where he’s like, I’m not going to be told what to do. And now you get these revisions and it looks like they’re making a big mistake.
SPEAKER 16 :
Yeah. Yeah. And again, you and I have talked about it. I’ve talked about this, you know, till I’m blue in the face in regards to, you know, Jerome Powell and what he’s doing and the fact that he’s literally in this this contest against Donald Trump. It’s totally the wrong way to do it. He’s not in that position. That’s or that’s not his position, I should say. It’s his position to do what’s best for the economy. But he’s literally got a vendetta against Trump and he’s using the American public to basically push that vendetta.
SPEAKER 04 :
Yeah, and you know what was even more interesting after that decision, too, that came out the same day that the Bureau of Labor Statistics report came out was Christopher Waller. We talked about him a number of times. Just talking about what a prescient person he’s been in terms of predicting the ups and downs of the economy, and he’s very forward-thinking in his thinking. what he thinks about policy, which is interesting to me because he’s one of the guys that the White House is talking about as the next Fed chair. He’s currently on the board. And Waller came out before that jobs number came out and expressed he was very concerned about what’s going on in the labor market and that the Fed was going to do serious damage by not cutting rates, and that’s why he dissented. Now, Waller and Michelle Bowman, who also came out the same morning and expressed the same problems, they both dissented in that meeting, and that was the first time in like 35 years two governors of the Federal Reserve dissented against the policy decision.
SPEAKER 16 :
Interesting. So in the grand scheme of things, what does, I mean, it’s a dissent, I get it, but given the fact that it doesn’t happen very often, what does that mean at the end of the day?
SPEAKER 04 :
Typically, when you see dissent like that, it means the Fed’s about to change course.
SPEAKER 16 :
Okay.
SPEAKER 04 :
And so now, you know, today, what was interesting, well, yesterday, we had CPI data come out.
SPEAKER 16 :
Right, saw that.
SPEAKER 04 :
You know, and everybody and their brother’s like, well, this is going to be the month. It’s going to take off and blah, blah, blah.
SPEAKER 16 :
And it didn’t.
SPEAKER 04 :
It didn’t. And yes, that’s exactly right.
SPEAKER 16 :
Now, really quick, Scott, some of the things that I read, which I don’t fully believe. I think there’s a lot of people that are saying what you just said that are now trying to backtrack and say, well, that’s because a lot of these manufacturers are working off of old inventory. And once that inventory changes and some of their new products come in, then you’re going to see price increases. Scott, I don’t agree with that because typically – and I’ve run retail businesses before – Typically, it’s last in, first out, meaning that as you start to get a price increase on the product coming in, there’s a few companies that still do first in, first out. But a lot of companies in today’s world do last in, first out, meaning that as that product comes in and there’s a higher price, everything you’ve already got in stock goes up. Yeah, yeah, I completely believe that. That’s how most businesses, for all of you listening, that’s typically how most businesses do things. I just got this last shipment in. That product went up by $10. That means every other, you know, the 10 other ones that I have in stock on the shelf, they also just went up by $10 each.
SPEAKER 04 :
Why would a business owner say, not say to themselves, wait a second, I have an opportunity to make $10 more of margin on that thing I already hold at a lower cost.
SPEAKER 16 :
Correct.
SPEAKER 04 :
It would be foolish not to do it.
SPEAKER 16 :
Correct. So these guys that are saying that, by the way, number one, have never run a business, have never run a retail business especially, and I think they’re just doing CUIA on their predictions that, well, just wait, it’s not here yet. That’s my feeling on it, Scott.
SPEAKER 04 :
I feel the same way. And then on top of that, you just had this 90-day extension on the trade deal with China on tariffs. And then you find out, Bessette said last night that Xi has invited Trump to come sit down and have a meeting, which has been one of the big things for sealing a deal. It seems like we’re getting closer and closer to a spot where we’re going to come to some sort of arrangement with China.
SPEAKER 16 :
I agree. I agree. And, you know, I’ve had discussions with other quote-unquote experts that call in, you know, financial guys and so on, and not everybody feels the same way about some of this that, you know, you and I do. And again, are you and I always right? Well… I can tell you what, we can go all the way back to 2020 with COVID and the hyperinflation we were starting to have and everybody else, you know, Fed included, calling it transitory and so on. And we, you know, we predicted all of it. We were spot on with all of this. I don’t think we’re wrong in this case. Will you see some things increase? With tariffs, yes, Scott. I mean, I would be stupid to sit here and say that you’re not going to see any price increases. But is it going to be the overall detriment to the country like a lot of these guys are predicting? No, I don’t see that either. You’re going to see some adjustments in some areas. You’re going to see some that get eaten by the manufacturer themselves, whatever country of origin that’s in. So at the end of the day, you may see some price adjustments. But no, I don’t see it being doom and gloom like a lot of these predictors are.
SPEAKER 04 :
So let’s step back for a second and look at what AMD and NVIDIA said just a couple of days ago. So NVIDIA and AMD struck a deal with the White House. China wants their chips, right?
SPEAKER 03 :
Right.
SPEAKER 04 :
And Chinese companies are paying 2x, 3x in the black market to buy these H20 GPUs from NVIDIA. Right. And I forget the other ones. They had like the M50s. MI380 or something like that from AMD. I can’t remember off the top of my head. But anyway, so what they’re saying is they came to an agreement with the White House that they’d give them 15% of revenues to make those sales into China. Now, NVIDIA in their last quarter said they were losing out on $8 billion worth of sales to China. So NVIDIA is like, hey, you know what? I’m willing to give up. 15% of that money, which is, what does that work out to be, like a billion dollars?
SPEAKER 16 :
Well, $8 billion, so not quite. What is that? Six, let me think. $800 million or so, roughly. Again, I can’t do the math that quick in my head, but that’s about right.
SPEAKER 04 :
It’s $1.2 billion, I think.
SPEAKER 16 :
Okay, $1.2 billion. There you go. Okay.
SPEAKER 04 :
Yeah. But still, so NVIDIA is now going to get $6.8 billion worth of revenue, potentially, that it didn’t have a quarter ago. I mean, that’s a big deal. And you know who they’re probably going to – they’ll probably wind up charging people in China 15% more. That’s what they’ll do.
SPEAKER 16 :
That’s exactly what they’ll end up doing. And that’s the part of, I think, these, you know, quote-unquote experts, Scott, that – I don’t know. You know, I’m trying to be nice to these people that are experts, but I just don’t know that some of these guys have ever really, you know, other than, you know, watching Wall Street and looking at the numbers and so on. I don’t know if they’ve ever been in the mechanical end of how things work in business. And I want to be careful I say that because, you know, I don’t want to I don’t want to throw these guys under the bus. But I just wonder, have any of them ever actually ran a business or do they just analyze them?
SPEAKER 04 :
I think part of the problem that we’re seeing, too, is I’ve had some conversations with some fund managers I consult with and do work with regularly. Some of the problems is some of these economists, they’re older, they’re stuck in sort of The older style, they’re not evolving with what’s going on with AI and what’s happening on a technology basis. And to your point, they haven’t run a company. So if you’re running a company, you have to adapt to the best and newest technology out there because that’s going to put margin back in your pocket.
SPEAKER 16 :
Correct.
SPEAKER 04 :
And that’s what’s going to help drive your business. And it might save labor costs. It might allow you to buy more people because you’re doing more business.
SPEAKER 03 :
Right.
SPEAKER 04 :
But the game changes quickly. With AI, it’s changing really fast. It’s And so, you know, I think some of these guys are still stuck in looking at some of these things in old ways, and they’re not coming around very quickly. So they’re getting hung up on what was instead of what is. I agree with you.
SPEAKER 16 :
By the way, that’s a great explanation. I think you’re right. you’re very spot on, meaning that for a lot of these guys, they feel like, okay, if the cost of that item, that widget, whatever it happens to be, let’s use a number that say that their cost, and they’ve been selling it, and they’ve been exporting it, and it’s $100. We use a nice round number. And all of a sudden, we’re going to tariff them 15%, so that price now went to $115. Well, number one, that’s not the retail price. That’s the cost. I always have to remind everybody of it’s the cost, not the retail price. So even if the cost went up 15%, It doesn’t mean that the end retail price necessarily goes up 15%. You know, for example, they could say, you know what, we’ve got a little bit of room in here to make the sales and keep our volume up like we used to do. Tell you what, we’re going to take $10 of that and eat it, and it’s now going to be $105. Now, that’s $105 on the cost, and maybe the retail price, Scott, was $159. I mean, throwing numbers out there. You know what? That retail price may not change a whole lot because even the retailer might be saying, you know, we’re pretty good at 159. We can keep selling a good volume of these at 159. So I’ll tell you what, we can eat that 5% and still make this work up and we can make it up on volume. As long as you’re willing to do the 105, we’ll sell as many of these as we possibly can. We’ll still keep the price at 159. And guess what? The consumer pays no more.
SPEAKER 04 :
So now let’s layer in things like AI. So one of the things I was reading about today is manufacturers are starting to employ AI more, and they’re getting smarter in their supply chains. They’re doing things more efficiently, and so that’s saving them money.
SPEAKER 16 :
Meaning, so for all of you listening, meaning that, for example, is where AI really can be advantageous. Let’s say, for example, they’re trying to predict what our next run of that particular widget needs to be. In the past, you know, Scott, a lot of guys have sat down, crunched numbers, even thrown some opinions into it as to what they think the market’s going to do. And, you know, how many of these widgets do we think we’re going to be able to So, you know what, let’s make $100,000 of these and we’ll bank on selling $100,000. Well, maybe, Scott, the market only needs $75,000. So, in turn, they’ve got $25,000 now that they’re sitting on that at the end of the day they may end up taking a loss on because they made $25,000 too many. AI has the ability to really look at things and do a better job of predicting do we need $75,000 or $100,000.
SPEAKER 04 :
And so going more in the direction of that quote-unquote just-in-time type inventory management.
SPEAKER 16 :
Correct.
SPEAKER 04 :
And so it makes businesses more efficient.
SPEAKER 16 :
Yeah, because if they don’t have any cost overruns because they made $25,000 too many, that $105,000 becomes very easy for them to stick to. Correct. That is exactly right. And to me, that’s what a lot of these quote-unquote experts, these economists, if you would, Scott, are missing. They are not factoring in anything you and I just said.
SPEAKER 04 :
No. So the other thing there, too, like I don’t – they have been reading a bunch of – some interviews that the Senate’s been doing and learning more about him, too. These guys are very tech-savvy, and they realize – The United States dominates the technology industry. And what they are doing is they’re doing more to drive that, to help that, and to protect that. And that’s good for American business.
SPEAKER 16 :
Now, along those same lines, and I never had thought about this before until you just said this, my gut feeling is I could be completely wrong, but knowing what’s even going on with the remodel at the Fed and so on, I am guessing that is not Jerome Powell. I am guessing he’s a guy that, yep, he uses a computer. Yeah, he uses technology. He does because he has to. He’d rather still have paper in front of him.
SPEAKER 04 :
Yeah, you know, it kind of feels like that.
SPEAKER 16 :
Well, just to me, that’s the kind of guy that he reminds me of. He’s this old school guy where, you know what, I need to look at all these charts and data and so on. Yeah, you can send them to me electronically, but the reality is I want a folder on this stuff so I can look at it. I want to put a pencil to it. That’s my thought process.
SPEAKER 04 :
I want to pick up the Wall Street Journal from the mailbox and flip the paper over every day because I like it.
SPEAKER 16 :
Correct. That’s what he reminds me of. I could be completely wrong. Maybe he’s super technologically savvy. I highly doubt it, though.
SPEAKER 04 :
So, Waller, who we spoke about earlier, and then there’s another guy, James Bullard. We used to speak about him a couple years ago. He’s the president of the St. Louis Fed, and he was the first guy that came out on the Fed in 21 and said, hey, you guys are going to have a massive inflation problem. You better start raising rates right now. It was like mid-21, and at the end of 2020, he said… unemployment’s going to be sub 10% in mid-2020. And other Fed members laughed at him, and they’re like, that guy’s crazy, there’s no way. Well, he and Waller built this economic model that forecasts all this stuff.
SPEAKER 03 :
And they were right.
SPEAKER 04 :
They’re right, and they’ve been right, and they called for the rate hikes first, and they called for the rate cuts first, and Waller is still calling for them.
SPEAKER 16 :
Well, that’s because he, Scott, understands that it’s the driver of the economy. And what I mean by that, folks, for those of you that are listening, please hear me when I say this. It’s the small and medium-sized businesses that rely on loans and lines of credit and buying equipment and so on. And no, they’re not using their own cash for that. They’re borrowing money when they do those things. And they know that if the cost of doing that comes down, they’ll typically buy more. They’ll hire more. They look more positively on the future and what that’s bringing to them, Scott. On top of that, the real estate end of things and the housing market and what’s going on there. And I know I always have people correct me on this, Scott. I get it. Short-term rates don’t necessarily affect long-term rates immediately, but over time, they definitely do, Scott.
SPEAKER 04 :
Correct. And the other thing that people, I don’t think, really think about with this is, you know, we’ve talked about this in the past, but think about all these banks that have all this long-term debt. Bank of America is the poster child for this. Stock on their books that they bought back at 1% and 2% several years ago. And it’s off balance sheet. Bank of America is like in the whole $2 billion on a bunch of that. Well, guess what? If you drop rates, the value of that starts coming back up. And all of a sudden, their balance sheets start getting a whole lot better. And when their balance sheets get a whole lot better, they have tons more lending capacity. They can do it at a lower cost, and the economy really hums all of this.
SPEAKER 16 :
And we’re really, I feel, and I don’t think I’m wrong, Scott, we’re on the precipice of having the economy. It’s not that bad right now. It could get a whole lot worse if the Fed doesn’t do something, but I also believe the opposite of true. If the Fed will come in and do a half a point and a half a point and get a point down by the end of the year, this thing, by the beginning of next year, will be rocking and rolling.
SPEAKER 04 :
So the numbers I look at, I always run these numbers on personal consumption expenditures, CPI, which are two different inflation gauges, but they’re both important to look at. I run them versus the federal funds rate, and both of them right now have about a 170 basis point cushion until they get to neutral, which is where inflation and interest rates are about exactly the same. So there’s a zero difference. So interestingly enough… But Cent came out this morning, did an interview on Bloomberg, and said the Fed has 150 to 175 basis points worth of rate cut cushion. They should be cutting rates by that much to improve the economy. And he’s right.
SPEAKER 16 :
Yep, he’s right. I mean, meaning that they could do a point, still have another basically, you know, three quarters of a point cushion if they really had to to come down. And, God, I don’t think I’m wrong in this. That one point would make the difference in the world right now.
SPEAKER 04 :
It makes a huge difference. And not only that, John, but if you go back and look at the numbers historically, the real rate of interest is what the effective Fed funds rate minus inflation. If you go back and look at the historical average since 2000, it’s been about negative 0.4, both for a PCE and CPI basis. So that really means the Fed’s looking at more like 210 basis points worth of rate cuts if they go back to the historical average.
SPEAKER 16 :
They really had to. They’ve got that much room. Meaning that, and Scott, I don’t think I’m wrong in this one either. If we had a 1% cut in short-term rates, we would get at least, it would take a little bit of time, won’t happen overnight, but within a few weeks, we would see, I think, at least a three-quarter point decrease in 30-year mortgages. Am I wrong or right in that?
SPEAKER 04 :
You know, I think you’re probably right. It may take a little bit longer, but I mean, economically, it usually takes like six to eight months for things to really show up. But I think it would definitely, I think you’d see some, pretty quick changes in the economy. I think the housing market, it would be a huge boost for the housing market, and housing stocks in particular. I think, to your point earlier, one way, if I were an investor, and I think people should look at playing this, is to buy small-cap stocks. You can buy the Russell 2000 small-cap ETF, the ticker symbol is IWM. When rates come down to the point you made earlier, all the small businesses in this country benefit because their borrowing costs become cheaper and they look to spend more. They look to hire more. So all those small cap companies will start to see a boom from that.
SPEAKER 03 :
Good point.
SPEAKER 04 :
It’s like housing stocks. If you want to look at those, I think it’s an iShares ETF. The ticker symbol is XHB. It’s a homebuilder’s ETF. That’s another way. And if rates come down, you know, I think homebuilding stocks will really go. There are a lot of people still waiting to buy homes.
SPEAKER 16 :
Scott, as always, it’s a joy talking to you. Welcome back. Glad you’re back from vacation. Appreciate you very much.
SPEAKER 04 :
Hey, John, thanks so much for your time.
SPEAKER 16 :
Before I let you go, how do folks find you?
SPEAKER 04 :
Oh, yeah. Twitter, LinkedIn, or Substack, C. Scott Garlis.
SPEAKER 16 :
As always, thanks, Scott. Appreciate you. Thank you. You bet. Have a great night. Golden Eagle Financial coming up next. Somebody you can talk to directly on all of this is Al Smith. We talk to him at 3 o’clock. Find Al at klzradio.com.
SPEAKER 06 :
Al Smith of Golden Eagle Financial can help you protect the estate you’ve built so your assets don’t disappear in paying for long-term care. As people are living longer, there’s a 40% chance you’ll need care later in life. That’s more likely than your house burning down. Yet we all buy homeowners insurance without question. Life insurance is useful for much more than paying for funeral arrangements. People don’t talk about life insurance because they assume it doesn’t apply. But in retirement, your income may literally depend on you staying alive. What happens to the pension, Social Security, or your overall plan if you pass on? Al Smith at Golden Eagle Financial is not just a financial advisor. He knows how to evaluate your specific needs and build a plan that takes the right steps at the right time. He’ll ask questions you haven’t thought of and help you leverage what you already have. Sign up for a free no-obligation consultation with Al Smith of Golden Eagle Financial on the kozradio.com advertisers page. Investment advisory services offered through Brookstone Capital Management, LLC, Registered Investment Advisor, BCM, and Golden Eagle Financial Limited are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents.
SPEAKER 16 :
Cub Creek Heating and Air Conditioning. Yes, it’s hot. Yes, we have an answer if your air conditioning is not working well. That is Cub Creek Heating and Air Conditioning. Find them today at klzradio.com.
SPEAKER 10 :
The summer season is still grinding on, but your air conditioner is not. So it’s time to call Cub Creek. The techs at Cub Creek Heating and AC don’t work on commission, so they’re not going to try to talk you into a higher cost fix. They love getting calls for second opinions because they can usually give you some good news and fix the problem for less. They don’t buy into upselling, and they believe that an air conditioner should last the longest time possible. That’s why they won’t move right to replacement if it’s possible to repair it. They understand the incentives and rebates better than most, and that means if you don’t need to replace it, they’ll work with you on figuring out the most beneficial way to repair it. Don’t wait until it’s an emergency when you’ll have to wait in the heat. Get our Rheem-certified pro partner Cub Creek Heating and AC out for a free quote fast. Find Cub Creek on the klzradio.com advertisers page to schedule your no-obligation quote.
SPEAKER 16 :
All right, Veteran Windows and Doors. Great deals right now at Veteran Windows and Doors. And the way those deals happen is because Dave has very little overhead. He takes out that middleman. It’s direct from them, from Provia, to you. 35% off 1-3 windows, 40% off 4-7, and 45% off 8 or more plus, I should say, free labor. Talk to Dave today. Just go to klzradio.com.
SPEAKER 14 :
Don’t assume a bigger price tag means better windows. At Veteran Windows and Doors, you’ll get top quality products without the inflated costs of those big corporate window companies. Why? Because those national brands are paying high commissions to pushy salespeople who are trained to upsell and meet quotas. Veteran Windows and Doors is a locally owned Denver company with low overhead and no middlemen. Owner Dave Bancroft has streamlined everything from sales to installation using only their own trusted installers. That means you get high-quality windows and expert service at a fair, honest price. And with Veterans Fair Pricing Policy, the more you buy, the more you save. Buy one to three windows and get 35% off. Buy four to seven windows and get 40% off. And buy eight or more and take 45% off. Work with the team that values quality, integrity, and service. Visit klzradio.com and connect with veteran windows and doors today.
SPEAKER 06 :
Suck it up, Buttercup. Back to Rush to Reason.
SPEAKER 16 :
All right, we are back. Rush to Reason, Denver’s Afternoon Rush, KLZ 560. Again, thanks so much today for all of the text messages and all of the feedback. Been a great day. I appreciate it. I hope that by now our streaming on – by the way, our website’s been working all day, klzradio.com. Our app, KLZ Radio, has been fine, but I think some of the ancillary services, TuneIn and others, may have had some struggles. So we’ll work on that. Yeah, the third party end of it. Thank you, Charlie, for saying that. The third party end of it may have had a few struggles, but we’ll do our best to get all those fixed by the time we get back tomorrow. Thank you for updating me on that. I appreciate that as well. Have a great night. We’ll see you tomorrow. Rush to Reason, Denver’s Afternoon Rush, KLZ 560.
