How to make it, spend it, and invest it

The Larry Kudlow Show

Each Saturday, The Larry Kudlow Show provides listeners with the latest on the unemployment rate, congressional budget battles, and how all of this affects their wallets. In this three-hour call-in program, Larry offers insight and expertise to help investors better navigate tomorrow’s evolving economic and political terrain. Widely regarded as one of the top economists in the U.S., Larry is also a popular CNBC weekday anchor for The Kudlow Report and The Call.

Steve Scalise, Nancy Pelosi, & a return to Civility. 3 Easy Pieces: biz tax cut attached to health reconciliation. If not. no summer (recess) vacation. Trump: no charge on Russian collusion. So how can you obstruct something that doesn’t exist. Attack Mueller? Tweets? Leave to defense team? Off front pages, better chance to get growth policy done. Jeff Sessions: 100 ambassadors at Mayflower reception! Sr. Armed Service Comm. Trump rolls back Obama Cuba policy. Policy substance or politics? Hurt Cuban entrepreneurs? Travel, transactions, dollars, human rights. Venezuela? Where else Cuban army in Western Hemisphere? Steve Moore on Father’s Day. Fed tightening too fast? Softening econ, inflation, rates, commodities.Real wages have gone nowhere. They need tax cuts to raise real rates. Gary Cohn in charge of Fed chair search. What does he believe? Biz expensing cheaper? 25 year window. 3% growth. CT story a national story? Econ polls for Trump?

3 Easy Pieces: GOP must get biz tax cuts attached to health reconciliation to get job done. No summer recess until this happens. Mark Meadows of Freedom Caucus. Make reconciliation a GOP weapon, not an obstacle. Down w/ CBO. Up w/ Mulvaney & Mnuchin. 3% growth budget. Final deal on Repeal & Replace? Trump speeches from Oval Office. Comey hearing didn’t live up to its notices. Trump stocks up 2.5%. Trump vindicated on Russia & obstruct justice. Jared Kushner hear about nothing. Only thing Comey didn’t leak was Trump not in Russian probe. Trump offers 100% lie detector. Why not let his defense lawyers handle everthing & stay focused on agenda? Stocks too complacent? Political risk? Brexit? Macron? Tax cuts? Why should Fed tighten after June? Inflation down. Commodities & oil. Theresa May Tories clobbered. Brexit? Terror attacks? Squishy policies? Will she be replaced? Minority majority. Money & Politics: Infrastucture. 3 easy pieces. Reconciliation. Overthrow CBO. Drain the swamp.

Adieu to Paris. Trump totally right. Would any other GOP prez have done it? Trump most conservative since Reagan. Media endorsements. Econ growth. Climate change models & causes still unknown. Trump concerned about climate, but bad deal. Nuclear power? G-7: no talk of stable money & supply-side policies. Softer jobs v. falling unemployment.Bad but not terrible.Wage income proxy still around 2% real, 4% nominal. Participation rates falling. Is ADP a better? Inflation slowing. Commodities flat. Fed tightenings? Stocks rallied on Paris pullout. Biz investment a bit stronger. Interest rates? Eurozone inflation back below 1%.j Melissa Francis new book: “Lessons from the Prairie.” Markets & Trump. Elon Musk, Lloyd Blankfein. ExxonMobil. GE all wanted Paris. Mick Mulvaney: time for CBO has come and gone. POTUS: 51 for all Senate votes; get rid of filibuster. Attach tax cuts to healthcare. BAT tax dead. Aetna leaving CT. 1853. David Tepper leaves NJ. 12% of revenues.

Dan Clifton & Mike Solon: Trump’s new budget: back to Clinton welfare reform; make it pay to work. There are no cuts. Just slower growth. What about tax cuts? Ryan gives up BAT tax? Senate? Detailed plan from WH? Parental leave? Joe Rago & Hadley Heath Manning: Repeal & Replace: when, what, how? Messaging? Risk pools? Premiums? Keep your doctor? GOP promise to fund poor, ill, pre-conditions? Medicaid? Senate: not 50 votes yet. Brian Kelly & Peter Costa: Stocks: domestic profits falling, so are profit margins. Commodities? Bitcoin? Fed rate hikes? Fed shrinks balance sheet: retire reserves. Flat curve? April capex not good. Gen Jack Keane: Trump changes policies in Mid-East. From Iran to Saudis & Israel. Sunni-Arab-Israel NATO? $100b to Saudis. Iran-Hezbolla-Hamas real enemy. What about campaign to destroy ISIS? NATO not taking terrorism seriously. Moore-Pethokoukis-McIntyre: Money Politics: Lawyers stop Trump tweets? Staff shake-up? War Room? Corey Lewandowsky, Dave Bossie, David Urban. How about econ side? Kushner-Russia?

Treasury Sec Steven Mnuchin leads way for pro-growth tax cuts w/ 3% growth paying for them. Reconciliation very flexible? Don’t have to use CBO or JTC estimates. Is Admin coming together w/ House/Senate? Timetable? Year end? Banking reform? “Let this go” is not obstruction of justice. Not crime.Mueller’s jurisdiction? Narrower than past. Why didn’t Comey report memo to DoJ? How long? Advice to Trump? Confusion: what are they investigating? Sr. WH official person of interest. WH leaks! Nut job. Relieved Trump pressure. Stocks: buy the dip because tax cuts are coming? Profits? Econ outlook? Fed? Amazon near 1,000? 250% S&P is bull mkt not just a rally? Dollar-gold-oil? Dr. Rock Positano: “Dinner w/ DiMaggio: Memories of American Hero” Money & Politics: Can US get back to 3% growth? Most econs say no. But capital formation is key. Outlook for health & tax reform? Pence for Prez?

All things Trump-Comey. Damage to him & GOP?Damage to growth agenda? Stone advise him? WH shake-up? Esp communications? New FBI? Trump not under investigation? Healthcare bigger problem for tax cuts than Comey? If no tax cuts & growth spurt, GOP crushed in mid-terms? Ryan: we can walk & chew gum at same time. Cornyn: healthcare before yearend. But why did Ryan bungle reconciliation/regs? Payroll tax cut for workers? No wage deduction for employers? Ted Cruz major player in health compromise. Working w/ McConnell. Same working group for taxes? 3% growth baseline? Biz tax cuts lead to capita deepening, productivity & wages. Why have wages flatlined? US- China trade deal very good. Trumps turns around. Negotiation not war. Day the earth was hacked! Stocks: No gold sky-high or stock plunge on Comey. Retail store collapse? CPI & retail sales slowing. Commodities soft (no inflation).

Sen Ted Cruz: Senate outlook for healthcare & tax reform. What should be done, what will be done? Can he support? House bill moving in free market direction? Turn back on New Deal like JFK & Ronald Reagan (populist)? States rights, 10th Amendment, federalism: medicaid caps, illness prior conditions risk pools, essential benefits mandate. $900b tax repeal. Reconciliation? Filibusters? Regs? Senate parliamentarian? Opens way for tax reform/biz tax cuts. Growth pay-for? State-local tax deduction? BAT? House Freedom Caucus tax plan? How long for tax cuts? GOP as party of working men & women? Dems elites? Taxes, health, success, biz, border security, refugees, abortion, trade, MAGA, world leadership? Growth/prosperity greatest populist issue? Former Sen. Tom Coburn & Betsy McCaughey on health debate, House bill, Senate priorities. Jobs, econ outlook, Fed rate hikes? Stocks side-ways. Profits strong. But no biz investment. Saintly wife doubled sales 1st 5 months: Trump confidence? Deflation pressures? Apple $1b USA investment? Jimmy P: Hal Varian & capital deepening.