Larry hello folks welcome to kudlow im larry kudlow, day 6. The hamas h hezbollah massacre on israel. 25 americans have been reported kill. We will talk with general jack keane. About every hamas member is a dead man we turn to mike tobin live in israel. Reporter the israeli cannons continue to thunder into the night, we have s seen several rocket launches from palestinian side, each, were all taken out by the iron dome system. That are protecting these Israeli Border communities, israeli armor is massing along the gaza strip. And the infantry, 3 60 thousand reservists who have been called up for active duty with the idf promising an invasion of gaza could begin at any time. As they say the next phase of the war is set to begin. A u. S. Citizen emily, is stuck in the gaza strip and her 5 kids, all of them u. S. Citizens, she was visiting her husbands family, he is a palestinian. And now she is stuck there. She has had minimal communication with u. S. State department, only a promise from israel that the crossings will not open. It feels very terrifying and really kind of forgotten, everything is on edge, car doors, anything passing, you think it is another bomb, or a rocket. It is kind of you feel a bit lost when you dont hear anything more from your government. Reporter israel said their commandos and airstrikes have highvalue targets including mohamed abu, a naval commander for hamas, they raided his house. In this visit network of tunnels that h hamas has dug under the gaza strip. Palestinian source inside of gaza telling me those remaining have gone into hiding, lower level hamas operatives have slipped into cicivilian clothing. Larry thank you very much. Be safe. Quick riff. Yesterday treasury secretary janet yel yellen swore up and down bidens have no way relaxed economic sanctions on iran anian oil. We have not in anyway relaxed our sanctions on iranian oil, and we are we have sanctions on hamas on hezbollah, this is something that we have been constantly looking at. And using information that comes available to tighten sanctions. Larry so, here is my problem with that statement. Couple of years ago, iran was producing about 400,000 barrels of oil a day. Today they are producing about 3. 5 Million Barrels a day, and on their way to 4 Million Barrels per day, according to industry observers, now, where did that come from . You dont suppose sanctions were lifted so they could system it sell it iran has a favorite customer, china. In 2020 iran sold china 6. 5 billion worth of oil. Next year abi, bidens first year that companied to 23 billion. Then last year, in 2022, that oil sale mysteriously leaped to 30 billion, where did it come from . If we didnt lift the sanctions how come they are producing and selling all that oil . What is this worth to iran . Anyway at least another 60 billion dollars worth of revenue, 60 billion dollars. Okay. The 6 billion dollar controversy for Hostage Exchange is small beer, oil sales everything is. Now, as mideast great estate sponsor of terrorism, 60 billion may be financing hamas, hezbollah, aiming to destroy israel. That is a likely guess, dont you think. U. S. Intelligence is actually telling us iran didnt up fund or plan or mastermind this hideous massacre of gaza, really. A hamas big shot told russia tv our allies quote, our allies are those that support us with weapons and money, first and foremost, iran, that is giving us money and weapons, end quote. Whether did that irk around money come from . Energy sales, because of a relax saying of sanctions, 4 billion 3 years ago today, their Foreign Exchange position to be about 70 billion dollars worth. Where did they get all that money . You guessed it relaxing of sanctions. Now, here say quote from my longterm pal, Foreign Policy expert Elliot Abrams writing in national review, hamas depends on ira iranian funding iran was broke when Donald Trump Left Office but now pretty flush in cash, not just because of deal for u. S. Hostages but because the Biden Administration has not been enforcing u. S. Oil sanctions. End quote. Im getting technical for a second. Hang on. Not painful. First, congress, numerous occasions has mandated economic sanctions on iran, venezuela, russia, hezbollah. That is the law. Now second, there are two kinds of sanctions, one is primary. That prohibits citizens and companies of the sanctioning country from engaging with any sanctioned country, think u. S. And russia, post crimea and most ukraine, that is direct. Second. Something called secondary sanctions that stopped third parties from banking or engengaging in commerce with a sanctioned country. U. S. Secondary sanction gave banks around the worlds choice, either stop dealing with iranian banks or you lose access to entire u. S. Dollar Financial System that is over 90 of world st transactions, secondary sanctions not just swift system, the messaging system about transactions it means that for example this is for example, if france bought oil from iran, france would be cut off from the entire u. S. Dollar system. France would be cut off from something called the fed wire, the Federal Reserve wire. In Private Banking system france would be cut off from the Clearing House. The execution of these sanctions is all monitored by Treasury Department office of foreign asset control, or ofa, if the g Biden Administration were implements sab sanctions on iran, they would not be accumulating 70 billion worth of Foreign Exchange reserves, trust me on this. Janet yellen is telling us a big fib when she denies that sanctions have not opi been relaxed, they have been, similar to her earlier fib that there is no inflation, reality, congress has mandated tools to keep iran in poverty. And thus deny hamas at and financing to cut off babies heads or murder grannies in bed, trouble is the bidens wont execute the congressional law. We will talk about this later in the show with senator kevin kramer. And senator marco rubio as well. This is such an important issue. It is time to starve iran. Now, first, however, great pleasure joining us now to discuss coming ground game in israel, great general jack keane. Chairman of institute for study of war and president ial medal of freedom. Recipient. I was privileged to be there when he received that award, welcome back general jack keane. Prime minister netanyahu says, every hamas member is a dead man amendment i understand from others okay general king, some special ops israeli sm special ops on the ground, and now the big ground game starts, perhaps you could tell us, walk us through, when, where, how and why. You could see were in a Development Stage of this. What is taking place you saw 360 thousand reserve call up. They have to get to their weapons and their organizations and their vehicles. Plans are being developed and coordination is taking place, then they begin to stage the forces, they have begun that process already. As reported by our fox journalists on the 69, this on the scene, this the take more time, what the israelis are doing they have people assists with preassault fired, delivered by artillery, they have fighters, against targets they are very much aware of in intelligence circles that belong to h hamas regime, and they are working rockets and missiles to suppress the fires, because hamas still wants to engage israel, using those rockets and missiles. But what the israelis have in front of them is different from anything they have done before. When they were in there 9 years ago, they went in hard, tough combat power, a lot and fast. Get there, week, three weeks, get to the coast, destroy all of rocket and missile factories, they are as far away from border at possible. And kill as many leaders and fighters anything of military val and you get out. Get out before the International Community puts pressure on israeli as result of some of the civilian casualties that take place in an operation like this, this time the mission is to destroy hamas. Destroy its military and terrorist network, the entire infrastructure and end it as a political entity which means they will replace hamas forcibly with another political entity likely somewhere from west bank, a fattah organization, that will do that, probably working diplomacy side of that now, but main pick to us, is main focus is military operation, different, there is many more tunnels than 9 years ago, generalling says close to 3 h00 miles of tunnels, that is likely where they are securing the hostages and where they protect themselves and storage they have value to, we have to take that infrastructure down, and those hamas fighters that will engage, will be in a fight there, we have to go into just about every neighborhood to do this. Very different from the other operation of 9 years ago, i think most of those hamas fighters will fight, but typical of terrorists, small note, they will some will not, they will hide, terrorists c conduct offensive operations and hide when people come after them, many will fight. Because larry, were stunned by their offensive operation, the stale of it and imagine nation they used in penetrating into the border. They have just the same amount of time here, to work on defensive operations, knowing full well that the israelis would retaliate in force. Larry it seems more it seems more like an army in less like a band of terrorists that weve seen in the past. I wondered how many hamas members are we talking about . The size of the terrorist army . And how well armed are they . I think a little north of 5,000 hardcore fighters, they have the basic weapons. You know assault weapons, rpg, they have antitank missiles that which are shoulder fired. Then they have all sorts of boobytraps and mines and explosives that they will put in place to impede them, they are not like hezbollah which truly operates as a terrorist force, but also has a conventional military capability with Armored Vehicles and mortars and missiles and et cetera. But nonetheless, hamas fighters belong to same ideology, the statement barbarbaric fanatics that we dealt with, with isis, we need to be up front, we need to kill them, that is only thing that stops them, they need to be stopped, we have to go in and kill them like we did with isis, like we did with al qaeda, we dont get every one, but, you decapitate the command and control, you take away their military ccape bilability to attack, you break the organization down to where it doesnt have the means of doing something con sequential, that is what the mission that the Prime Minister has talked publicly about. They have the capability to do that we should help them, with anything they want from us, we should give them. Larry well, one thing we should do is starve iran that would be a source of funding, hamas does not have funding or oil. They have nothing. Just iran. That is a separate point, well talk about it later. I know these are hard questions, strategic questions, how long might this action take place . And it overlaps with the whole complicating issue of hostages. Israeli hostages, american hostages. And hamas taking hostages, hiding behind them and so forth, this could take quite some time. Could it not, sir . Yeah, as i mentioned. The other operations were a coupl couple weeks, this likely months could many weeks. Because, they have to be very systemic, about doing this, hostages complicate it. Im disappointed in the administration, there is no bought that this administration is giving used support to israel, there leaders have said as much. But when it comes to the hostages, these are american hostages and israeli hostages, i think that president should have spoken up about that. And said, in so many words, and be talking to iran. As well as hamas, that if any hostages are harmed well take direct action against you. And if he didnt want to say this in public, i hope they are saying it in private to the ira iranian leadership, i sense they are not, they appear to be distancing themselves for as much as possible for assigning accountability to iran it so obvious that iran is behind this. And cheering on hamas as much as they can. Were walking away from this accountability. Larry thank you, thank you. It shameful. Larry thank you for saying, that thank you, that is has been my riff, monday, tuesday, wednesday and today. Thank you. You are an expert. Im not that was my read. General, i have to go. I hate to lose you, 30 6 6 chance of a fullscale poperation from hezbollah to israel from the north. Right now, they are firing limited amount of missiles, some artillery and mortars forcing the israelis to move more forces up there, maybe they would use in the attack in to gaza, im not sure that is true, i think that is what they have on their mind. We dont know for sure, i think more likely than not, if that happens, once again, larry, we should be talking to the iranians there is their number one proxy hezbollah, if they get involved in it, they would not be in it without iran s order we should tell them if they get into the fight, were coming for you, not just hezbollah,. Larry i am 100 , thank you heavens for general jack keane, thank you for your time, i hope you see your way to come co. Always good to talk. Larry saturdays a fuel full half hour. Coming up. Switching gears, just for a second. Now Steve Scalise question can he get 217 votes. Congressman john james will help us when kudlow returns, well return to issue of iran, relaxing sanctions on iran, why is it they are selling so much oil, why has that administration not dealt with iran head on, well take a time on for domdommist politics, we need a republican speaker of the house. Im kudlow, well be right back. Like your workplace benefits. And retirement savings. With voya, considering all your financial choices together. Can help you be better prepared for unexpected events. Voya. Well planned. Well invested. Well protected. Your best defense against erosion and cavities is strong enamel nothing beats it. New pronamel active shield actively shields the enamel to defend against erosion and cavities. I think that this product is a gamechanger for my patients it really works. Larry kind of a get in touch with your feelings meeting of republican conference, from, this afternoon. Like a 12step meeting, the question is, does my trip Steve Scalise still have the votes to be the next speaker, we welcome back congressman john james from t the great state of michigan. Did people get in touch with their feelings and Steve Scalise still at the center . You are right to poke fun. Nobody cares about our feelings, people care about our wide open border with threats, with 2 million gotaways that are in the homeland, people care about the fact that with the biden inflation called by this administration, everyone is struggling to make ends meet, people Want Congress to pull their heads out of their back side and get a republican speaker right now, im solidly for moving on. Making sure we get a republican speaker quickly as possible. Larry how did Steve Scalise do today . I think he acquitted himself nicely. I have served in the military, i have been to combat, Kevin Mccarthy is one of the leaders that i served with, because of 212 democrats and 8 rogue republicans representing 4 of our party, we now have no speaker. I s support Steve Scalise i believe he is the best to make sure we have conservative will too to move your nation forward to get most conservative bills passed and signed. Anyone bringing up a negative, i hear about his health. I actually believe that suffering, actually makes us better leaders through steves suffering and being resilient. And continues to rise in spite of odds will help him continued to our im to understand our suffering more, that should be a qualifier for a speaker, he is more healthy than we originally thought, he is the leader we need, i swore an allegiance to the United States of america. Larry they shot at him, he recovered. His top staffer tell me, he is way ahead of his cancer cure. I dont know, im not a doctor, that is what they say. But the question is, politico wrote a tough story, john james, i dont want to use them as the be all, one of these thumb sucker stories about how all fall apart for Steve Scalise, i wanted to hear from you, this is not or if it is, maybe you will tell us. I will tell you, i dont goget entrenched in the soap o opera. We want to work on things like se securing our border now, to make sure we go against hamas and protect israel now, majority of the delegation of the conference is there. They dont care about feelings, they want to work with pragmatism and get to work right now there say Strong Movement to stay here until we get this done. I agree, i thought that is what might happen, i dont mean to put you on the spot or be disrespectful. But, on a scale of 1 to 10, how about, that Steve Scalise, 10, 5, 0 . How would you rank it. If i could wave my magic wand we would have done more to reign in federal government, im one vote in my support for Steve Scalise, but getting back to track and getting a conservative speaker. Larry that is important. You said you would vote for Steve Scalise, we appreciate it. We appreciate the fact you have been coming on the show, we hope to see you soon, congressman john james from michigan. Larry coming up on kudlow well talk with senators kevin kramer, then later marco rubio. About the Biden Administration back of accouaccountability regarding iran, they are coming on separately, kevin kramer then mr. Rubio. I was so happy to hear general jack keane say problem with biden is they are not dialing with dealing with iran, i am kudlow, ill shut up, well take a quick break, please stick around. Dad, whats with your toenail . Oh, that. . Im not sure. Its a nail fungus infection. Thats gross its nothing, really. Its contagious. You can even spread it to other people. 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Well, i think unfortunately it say product of how both iran and hamas and groups like hamas have been fooling the west in particular United States and our socalled experts for 20 or 30 years, start with iran and continue to hamas, they openly say they want disvdestruction of the jewish state. That is what they say, that is what they are founded on. We have people saying, that is what they say, that is not what they really want, we have work it out, they play us, there is no hamas without iran, and whether iran knew they were going last saturday, all that is irrelevant. What is true all things they used to carry out to butchery would not have been impossible without support from iran, we need to wake up and say we could continue to project all western attributes we business, they are ideological psychopaths and savages, they would if they could kill americans in the process as well, and they call for that, we should start believing these people. Senator, as this thing goes on jack keane said this not a week, but months and months. To clean hamas out of the gaza strip. Is the administration getting cold feet . Im sure the liberal media has cold feet, will the Biden Administration get cold feet . I dont think, here, step back. Is the do you think that administration is talking to iran right now . And do you think they are trying to cut a deal with iran right now on the Nuclear Business . There is no doubt they are, they have people that do that, in a separate office, including a guy that was running it, was an asset for iranian propaganda and sharing information with them. Well learn more about that investigation, if you want to step back and realize, i hope they are messaging and iran and telling them if any americans are attacked well consider this an attack against the United States i think the fundamental question, what is the strategy they have used . We attack they attack israel and kill a bunch of israelis and retreat and go into hiding in their system of tunnels behind human shields in gaza, then israel responds then cameras to New York Times to the global press, to western elites and say look at what israelis are doing, and everyone puts pressure on israel to stop. We saw this in 2021, this has to be different, this level of savagery has no precedent, the se. Administration warns well have more. These people have to be put out of business, if they are not put out of business, they will, merge from this stronger, they dont care how many civilians die or how many buildings collapse, they will, merge stronger. And they will be viewed adhereos and they will do this again, butty this will kill main more people. Many more people, if they are allowed to survive this it will be painful on the ground, facing an insurgency. It will be tough. But i dont know what other option israel has. In my view, there are two sides, you are either on hamas side, or israels side, i know what side america is on. Larry how fast can we get defense supplemental appropriations to israel. Israels defense or situation with United States is we passed it. My law, bipartisan law in 2021, they are guaranteed every year 3. Something billion between now and 2028, were not starts from zero, at some point, israel may have specific munition needs, i think they will have ample support in congress, but what is important, administration, they said this, they already have existing codified authorities in our law, to transfer things biggest thing we can do for israel right now equipment they have paid for and stuff they are waiting forr expedite it, get it delivered now, that there is a lot. That does not mean they wont need more in future, right now, we know they have got things in pipelines were not starts from zero the way we did for example with ukraine. Larry you had a bill on this. Part was defense act, the purpose was if israel found themselves in a conflict they would have the to come to congress. Larry about way senator marco rubio thank you for come back on the show. Thank you, larry. Larry senator kevin cramer from north dakota coming up. I saved juiciest for you. Senator rubio said you have already got appropriations for emergencies, may need more for israel. Here is the other thing, the congress has mandated for years tough primary, and secondary economic and energy sanctions on a number of countries, russia, venezuela, north korea and iran. And i keep making the point treasury secretary janet yelyellen saying they have not relaxed the sanctions, well where did they get 3 1 2 billion barrels a day. And the money to china, because they had nothing at the end of the Trump Administration in 2020, somebody is shall we s say fibbing about this when will Congress Come down hard and restore all of the sanctions to iran . As soon as we get back, we have to do that that is why i joined senator scotts letter to encourage and really insist that the 6 billion dollar in bank in qatar is kept there and not released. The 6 billion that joe biden generously gave to iran. With regard to oil, this is not a tough one, he not only relieved iran of some sanctions on oil but encouraged them to produce more, he asked for help from venezuela he happies American Energy so much. This is shameful it is this is the result of those policies, much like anything that jack keane said and marco rubio said, one more sign of the weakness of this president. And now xi jinping and kim jongun are licking their chops [inaudible] history of the world we have to stand up, these are not nuance messages, some things demand nuance but the geopolitical issues do not, it is the volume in which you say. I would rather see a sermon than hear one, it is time to back up the words with volume and action. Larry you know, senator kekev cramer, they are selling nem energy like there is no tomorrow, they are going from 400,000 barrels a day to 4 million. In 2 1 2 or 3 years, trump had them stymied because of this secondary sanctions. You congress, senate, House Congress have mandated. Secondary sanctions. Take them off the fed wire. Take them out of the u. S. Dollar system. No more banks, no more, no more Clearing House privileges, no more fed wire privileges, office of Financial Office will monitor this you have the authority biden is breaking the congressional mandates that you laid down. You have to go after this. Because, the 6 billion is nothing, they have 60 billion or more in oil revenues, and as much as 70 billion in Foreign Exchange reserves, 6 billion is interesting but the bigger picture, you have to come down, sea secondary sanctions. So in addition to being on Armed Service committee i am also on Banking Committee that has jurisdiction over sanctions you are right. This is why were asking biden to get the g7 together and accumulate our economic power and leverage that, i agree with mark, i would say we need an additional supplemental for a lot of National Defense dollars, we need to send a stronger message, were carrying a big stick, but we have peaceful tools of economic prowess and you know we 20 of just us. Of the worlds economy, but collectively, and with the energy that we have, that i got to jump out. Peaceful tools. Larry i have to jump out, you have the authority do sthrk neethis and you need to do it. Sesenator kevin crame, we have on to take them out of the dollar system, now they have the the money that is sponsors hamas, and killing children and grandmothers and lord knows, up next, switching gears, inflation. Hotter than people thought. Wholesale prices were too high, today Consumer Prices were too high, john carney of breitbart will give us the low down, it is kind of a low down, im kudlow well be right back folks. This is a special alert. Israel is under attack and israels enemies seek our destruction. The people of israel need immediate help. Rockets have us squarely in the crosshairs. Our people are targets in their own homes. Many have lost everything and fear for their lives. The International Fellowship of christians and jews has launched an urgent response to rescue those affected by this violent attack. Our teams are on the ground across israel delivering lifesaving aid. Your urgently needed gift of only 45 will help rush food, water, medicine and emergency supplies for jewish families that have nowhere to turn. Time is literally running out. What we need you to do is to act now. Unnecessary action hero missing punches . Unnecessary check reversals . Unnecessary time sheet corrections . Unnecessary unentered sick time . Unnecessary go unnecessary go unnecessary when you can take this phone, youll be ready. Make the unnecessary, unnecessary. Let your employees do their own payroll. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Snow larry joining us john carney, breitbart economics, coauthor of breitbart business digest, i dont know, nothing. Okay my mir first rodeo, yesterdays wholesale Inflation Report last 3 months 7. 7 . Annual rate. Todays cpi report, last 3 months 4. 9 . Annual rate. Lets round it up, 5 for cpi, and 8 for the wholesale prices. I know core this and services that. And housing and rents. All i know is what numbers show, what is your opinion . I dont think that inflation has left us. Absolutely, inflation it has not. Ive been saying if you look at measures of under underlying inflation it is leremaining steady, you had a lot of people saying if you take away this or that. They are proving the point if you take away anything that goes up in price, then there is no inflation. Hecki yeah. In 1970s they kept saying they k k can exclude and and that. Larry ill lay one game, j. Powell looks at it, services, exenergy, he look as the this, services exenergy, todays cpi, last 3 months 5. 4 . Annual rate, i thought that feds target was 2, these are running above 2 target, and yearonyear ahead too. That is right, it looks like low inflation we got in beginning of summer of the an outlier, inflation is going back up, you look at median inflation that cleveland fed puts out it showed inflation was not going down at all. It ticked down for a month, it was relatively flat, now climbs back up. I think this is troubling, what the fed gets around to seeing this is whopping. Next year. They will have to raise gain that will shock markets. Larry you could look at core rate. But it is food and energy that are basic essentials of life. For middle class people, you cant just ignore that stuff. John im sorry were short. We had to muscle through, well talk on the radio this weekend, john carney of breitbart, im kudlow ill be back with my last word. But at Fisher Investments were clearly different. other money manager different how . You sell High Commission investment products, right . Fisher Investments nope. Fisher avoids them. other money manager well, you must earn commissions on trades. Fisher Investments never at fisher. other money manager ok, then you probably sneak in some hidden and layered fees. Fisher Investments no. We structure our fees so we do better when our clients do better. That might be why most of our clients come from other money managers. At Fisher Investments, were clearly different. Its not just designed to look good. Its built to command attention. Its not just a comfortable interior. Its a quiet refuge. Theyre not just headlights. They light the way forward. The new fully electric audi q8 etron models. Larry thats it for kudlow, thanks for watching, folks