00:02It confirms what Americans had been feeling for a long time now, this is political poison
00:08for Donald Trump. Doesn't mean because you can't ever write Donald Trump off, he's shown
00:13that in the past. He's the great Houdini of international politics. Every time you think
00:19he's down and out, he comes back. But he's in real trouble now. 3.7 per cent, things
00:26like energy, for example, 20 per cent higher Americans are paying than this time last year.
00:32Things like flights on airlines, 22 per cent higher costs than flying. Often people have
00:38to fly to a different state to visit their parents or to go to work or universities, 22
00:44per cent, 10 per cent for computers and things. So this is showing the real pain. A lot of
00:51it's driven by the Iran war. And that's the real anger that's showing up around the country
00:56for this midterm elections. Donald Trump chose to go into this war. It wasn't like Ukraine
01:02who was attacked. This was a decision by Donald Trump and Benjamin Netanyahu to go to a war
01:09against Iran. And it may well be the political undoing of Donald Trump.
01:14And do you think, John, that cost of living going up as a result of what Donald Trump is
01:20doing in the Middle East will be the overriding factor for voters when they head to the voting
01:26booths at the midterms?
01:30Without question, Catherine, as James Carville, the famous advisor to Donald to Bill Clinton
01:36said many years ago, he had the sign up in his campaign office. He helped Bill Clinton become
01:42president. It's the economy stupid to remind people, keep focusing on that.
01:47So what's happening here in America now is there's the two different tracks. There's the
01:52average American feeling the pain. And there's the very wealthiest who have never had it so
01:58good. There's a new poll that's come out today from the Center for American Progress, which
02:03shows that the top 0.1%, we're talking a tiny number, their net worth increase per household
02:12has gone up $9.6 million in the last year. Donald Trump's personal wealth, and we touched on this
02:20in a Four Corners program we did last year called Chasing Trump's Billions. Donald Trump's personal
02:25wealth in one year has gone up $2.2 billion US dollars. So I think Americans, even those who
02:33believed him and thought he was the great saviour, he would take on the establishment, he would
02:38drain the swamp. They are now realising that he is rolling in money. Donald Trump is a cash
02:45machine. That White House has become a cash machine. At the same time as Americans are hurting
02:52at the petrol pump and other places. And then there's the poor Americans who can't even afford
02:57the car, who are sleeping rough. And so I think among all of that anger, he may pull off a
03:03miracle
03:04on November 3. I don't think so. I think they are in real trouble, the Republicans.
03:10That gap is really widening between the haves and the have nots. From a macroeconomic perspective,
03:15John, what is the discussion around interest rates after this inflation result?
03:23Well, of course, Catherine, and you've covered a lot of economics over the years and finance,
03:28this is ominous for interest rates as well. Donald Trump got rid of Jerome Powell or put a lot of
03:35pressure on him to try to get him out of the Federal Reserve. In the end, he couldn't because
03:40Jerome Powell wouldn't cut interest rates. So Donald Trump's put in his own person now who can't cut
03:47interest rates. When you've got inflation going like this, when you've got energy prices up 20%
03:53and everything else, it looks like they're going to have to put interest rates up again, perhaps more
03:59than once here. And so even though Donald Trump, he used to say everything disparaging about the
04:05former head of the Federal Reserve, Jerome Powell, now his own person in there cannot. You cannot cut
04:11interest rates at a time like this. It's like you're going towards a cliff and you say,
04:16let's accelerate the car and see if we can accelerate and do a U-turn. So that's very
04:22ominous, not just for the United States, but I think Jim Chalmers and others would be looking
04:27at these figures and having a sense of chill.
04:30Yeah, absolutely. And just finally, John, has President Trump weighed in on these numbers
04:35at all? Has there been any response on socials or publicly?
04:41No, he hasn't yet. But he does, he does at all of his rallies, he's flying around the country at
04:47the moment. And he says, listen, cost of living, it's a Democrat hoax. And you've never had it so
04:53good, he tells people. If people are doing it tough, it doesn't matter how many times or with what charisma
04:59or entertainment value that Donald Trump has. He can keep telling those rallies, you've never
05:04ever had it so good. Look at the stock market, he's saying. The reason those small numbers are
05:10going up $9.6 million per household is largely the stock market and his so-called big, beautiful bill,
05:16the tax cuts in that. But he's talking to people in front of him, the MAGA crowd who are doing
05:22it
05:22tougher than ever. Can he pull off another miracle? Perhaps we'll know on November the 3rd.
05:30So he's talking to them.
05:31So we can put him on the business protection system maybe.OOK
05:32turned it around to my opinion. This
05:32acordes to be easily swayed up. I
05:32am so sure this America doesn't defense is really way held down at all. Unfortunately,
05:32he took care of him, did you keep going anywhere? Last time
