'Glenn Beck': Joe Biden vs. Reality

This is a rush transcript from "Glenn Beck," August 25, 2010. This copy may not be in its final form and may be updated.

GLENN BECK, HOST: Hello, America. From Washington, D.C., all this week — because on Saturday, and you can see they are building — you see over on the side, "Restoring Honor," on each side, those are the JumboTrons. I think there are six JumboTrons, all the way down past the reflecting pool. I'm hoping you come or it will be weird for me with just a bunch of JumboTrons.

But we are doing something absolutely amazing on Saturday. We'll give you more information on it and we would love to see you here. By the way, the weather here in Washington is incredible. And it is suppose to be sunny, pleasant, low humidity — I mean, dare I say it, God is smiling.

Now, let's talk about Vice President Joe Biden, came out yesterday talking about how great the stimulus has been yada, yada, yada. I want you to listen to what the vice president said yesterday:


VICE PRESIDENT JOSEPH BIDEN: We are turning this great ship of state around, that was wandering out to sea and it's heading back to port. Now, look — now, it's not happening as fast as any of us would like, and certainly not fast enough for the millions of folks who are still out of work. But there isn't any doubt we're moving in the right direction.


BECK: There is no doubt that we are moving in the right — there's no doubt?

OK. We're headed on the right track and there's no doubt. I — you know what? Can I tell you something? I kind of disagree with that, and that may be the understatement of the century.

What do you think, America? You don't need an expert. What do you think? What does your gut tell you? Are we headed in the right direction?

I want you to look at the track records — Joe Biden and me. Try to focus, you know, not on the hair plugs. Who's been more accurate? I don't think you need my opinion or Joe Biden's opinion. You can just read the newspaper. They still print them, believe it or not.

Do you remember the Hindenburg Omen that I told you about? What was it, a couple of weeks ago? Two weeks ago, we talked to you about it. It's a technical indicator that measures several economic factors and helps foreshadow stock market crashes, you know, like 1929, the Hindenburg. Boom!

When it's triggered, a market crash happens 77 percent of the time. Well, we told you that it was triggered two weeks ago. Unfortunately, it was just triggered — again — last Friday. And almost triggered a third time last Thursday.

So, let's recap, Mr. Vice president. When the Hindenburg Omen is in play, this is what usually happens. Oh, the humanity. And just to be clear, in case he doesn't know, it wasn't supposed to be burst in flames. This isn't good. Not the right direction.

Oh, and, by the way, the guy who created the Hindenburg Omen, he knows what direction to head to: the exits. Quote, "I'm taking it seriously, and I'm fully out of the market now. I probably would have stayed in until the beginning of September, depending on the indicators and how they varied. That was my basic plan, until the Hindenburg came along."

Uh-oh! Oh, the humanity.

CNBC economic expert also warning now the floor is about to drop out on the stock market. Financial expert Charles Nenner predicted the Dow will drop to 5,000 — in the next two-and-a-half years. Here's what he


CHARLES NENNER, FINANCIAL EXPERT: If I project from the last low in February '09, I get down to 5,000 with the next Dow move. My cycles show that some pressure now that we could see for a couple of months, but then, it should go lower for the next three or four years again.


BECK: CNBC also reported that the U.S. economy is not in a recession. They're making case now that we are actually smack in the middle of 1930s-style economy. 1930s? Wait a minute, that wasn't good.

They showed how positive GDP outlook and how other moldy hopeful signs that the press is eagerly latching on to are causing many to turn a blind eye. Hmm. Blind eye. Who's been saying that people have been turning a blind eye — oh!

America, when I was on radio four years ago and I started talking about this stuff, I told you then, get away from politics. I took on President Bush. Nobody wants to report that. I took on George W. Bush and I said, this is insane — insanity. Look at what we're doing. Look what's happening? It didn't help on the talk radio ratings, you know, because they're all zombies. They all just wanted to be — but it didn't help.

Then to make it even better, I started to say when the Dow hadn't hit 14,000 yet, get out of the stock market, the economy is bogus. I lost listeners, I lost stations, I lost money for saying it. Why would I do it? Because I believed it to be true.

Just a couple of years ago when the stock market started to tank, I came in with more cheerful news and said it ain't done. Listen:


BECK: By the way, I don't think this is the bottom. I have changed that and, God help us all, I believe 5,000 is more likely. And it may be below that. We are headed for dangerous times. And this is the perfect storm that I have been warning about.


BECK: Guys, look — I don't — I can see things over the horizon and I hope I'm wrong. But I can see them over the horizon, but it's all flat to me. I have no idea when it's coming. It could be a month from now. It could be five years from now. I don't know.

But the piper is going to have to be paid. So, I said that about 5,000. Now, CNBC is saying, oh, gee, we might hit 5,000.

A year later, I warned about what else was headed our way:


BECK: I say that with knowledge of what is coming and what is coming is a depression. If you let things fail, a depression is coming.


BECK: OK. Why did I say that? Notice the last sentence: "If you let things fail, a depression is coming." Why did I say that? I was saying: Don't just say, hey, we can't bail things out, we can't bail things out. Let them fail. No, no, no. I said at the time, let things fail with full knowledge that it means a depression. But it will be worse if you don't.

Finally, I showed you the comparisons to the 1930s just recently:


BECK: I don't think we should look to Japan. I think we should instead — I mean, we're repeating the 1930s. We're repeating the playbook from Woodrow Wilson and FDR. So, if we're doing exactly the same things, wouldn't we get the same results? Let me show you the result of the 1930s and you compare it. Take Japan off. Isn't that more in-line? That's the Great Depression.


BECK: OK. I know it is popular and easy to make fun of me. I mean, look at me. And I'm Mr. Doom and Gloom. I mean, my wife, honestly, at a friend's 40th birthday party, she actually told me before I got there, "Don't make anybody cry." OK. All right. When all the women went downstairs, I ended with a bunch of guys from the stock market. Well, she came up and we were all sitting on the dining room floor and many of the men were crying, but that's a different story.

Maybe a miracle will happen and I'm wrong, and I hope I am. I don't win in this either. We're all broke. But when you actually look at the facts of what we're doing and what is happening — I'm sorry, but it is pretty darn near impossible to come to any other conclusion that at least, at bare minimum, you should consider it a pretty good possibility — not a mortal lock, but a possibility.

Remember, Joe Biden says no doubt we're headed in the right direction on the economy. Well, we're just getting started with the news of the day. How about this one? Unemployment 9.6 percent. We told you the real unemployment number is 16.5 for July.

Government — the federal government is now on track for the second-largest budget shortfall in 65 years — 9.1 of GDP. And in 31 months, Congress has added $4.4 trillion to the 10-year spending baseline. Who's going to lend us more money?

Equity trading activity on this August is on pace to be the slowest since '99. It's normally slow in August, but having a slow year compared to recent years, not that unusual, but when you got to go to '99 — remember '99, people weren't trading from their laptops at home — eBay, you know, the baby, wasn't on the BlackBerry firing off transactions in 1999. So, to be that bad with all of today's technological advances might be a little alarming for some.

Here's a piece of good news that the press would like to report: Gas prices are dropping. Good for you! Well, it is good for your wallet if you want to go some place. But why? Why are they dropping? That's the question. National average is $2.70 a gallon. Why is it dropping? It has dropped 4 cents in the past week. Why is it dropping?

In a robust economy, prices don't usually start falling until, oh, I don't know, Labor Day. Labor Day — why Labor Day?

Remember, in the summer months — do you remember when George Bush was in office and we were headed into the spring and the gas prices were going up? Everybody in the media said, oh, my gosh, do you know what it's going to be like in the summer? Why? Because people are on vacation, they're traveling, they're in their cars they're doing — that's why.

There's also the summer blends. They charge more. There's a bigger demand.

So, why in the summer months are prices dropping? Because people aren't going on vacations. They're not driving. They aren't doing unnecessary things, because they don't have the money or they're afraid to spend it.

Why? Because of me? Or because what's in your gut, America?

Is this the right direction? If it is, know why you believe it.

How about commercial real estate? This is the other shoe I have warned was going to drop. Watch:


BECK: Me personally, I think that — I think that all this glee on, oh, my gosh, we're almost through this, is ridiculous because we haven't even hit the commercial real estate or the credit card bubble, which both of them are coming to a theater and economy near you.


BECK: Yes. Yes. Here's the latest news: Some of the largest commercial property owners — largest commercial property owners — are defaulting on debts and giving up buildings that are upside down because, quote, "it makes good business sense."

Mr. Vice President, when the best business decision available is to default on your business property, is that the right direction?

And how about home sales? I love this. You pull in on this. I want to show you this. Show the chart, first. Can you bring this chart up? Show you the chart. Do you have it?

There it is. OK, that's the chart: Existing home sales.

Now, let me show you — bring it on this chart. Let me show you this.

Here is — here's the chart. This is the top of the market, when everybody was like, that evil George Bush. I bought too much house! OK, right up here — started to fall. Here's where the buyer home tax credit starts in this box and here we are today.

Now, what everybody is saying is, "Hey, this just — this only happening because we stopped giving people money." Right.

Let me just show you something that maybe somebody in the media should point out. Huh! You see what happened? This didn't affect anything. It's a straight line. It's a straight line.

This is all bogus. It didn't kick-start the economy. It's a straight line down.

Let me show you this: Previously owned homes fell 27.2 percent from June, largest drop. Not since George W. Bush. Not since the first George Bush, but since Lyndon B. Johnson.

Now, the media — what they doing? Oh, you got to get the homebuyer tax credit back. In other words, give Americans more money.

No, no. That's not what should happen.

I showed you this chart a while back. And this is just made up. But, basically, this is what we're looking at. This is all the stimulus money and all the tax dollars that we don't have and we borrowed to keep our spending, to keep our economy up at this line. And the farther we go down, the more money we have to print and borrow.

This is the stimulus package, what I just showed you. It just started to come up a little bit, but it was bogus because of the straight line. You got it? This is bogus.

Now, at some point — at some point — if it doesn't re-kick, because remember we're here now, what do you do? You have to print and borrow more money and more money and more money.

If the government continues to spend the money and the government continues quite honestly to lie to you and not warn you of what's coming, gang, trouble is coming. If they don't warn you, what happens? People will be unprepared. People will be frightened and they won't know who to believe. And the government will have zero left as well.

There will be nothing left at the end of the strategy. This is not a strategy. This is a suicide course.

What they're — what are they saving? What is the last bullet that we have to put in the gun? If they are wrong, what is the last bullet? And it's — I mean, this is a microcosm of what's happening with the entire economy. There are no injections left, no amount of bailouts that can turn the ship around, as Joe Biden just said.

You've got to let that hit — let it hit bottom and start over again and start trusting in the American people that we can handle it ourselves and we can take care of each other.

Our economic day of reckoning is coming. And there will be pain. There will be lots of pain. But we are throwing bad money after bad money. And in the end, it's only going to make much, much more pain.

It's like saying, no, I don't have cancer. No, I don't have cancer. No, I don't have cancer. At some point, you've got to go in and get the cancer. You got to deal with it. And the longer you wait, the bigger chance you have of dying.

Now, I don't know which economy Joe Biden is looking at. But this one is definitely not headed in the right direction. Unless, of course, you're from the Cloward and Piven school of economics and you think this is the right direction. Collapse, gang, collapse.

Why — why would you want to collapse? This is what people ask me. Well, that's ridiculous. Why would they want collapse?

Because they don't believe in the system in the first place and so, it's a chance to start all over. They have a new one waiting. I told you on this program about structure that was being created:


BECK: It's the final phase of the Cloward-Piven strategy, which is collapse the system. When you collapse the system, what are you going to run to? Well, Cloward and Piven, they figured it out that you have to have the structure in place. You have to have something that the system collapses into. And that's what we're building right now.


BECK: Look, gang, this is all about power. Do you know who is taking money out of the stock market? Who's taking that off-ramp right now? George Soros.

Wait a minute, you mean the guy who's — yes, the guy who's issuing these statements on me? Yes! George Soros, the fund management, reduced his $25 billion in equity investments to $8.8 billion in March and then down to $5.1 billion at the end of June. Why? He's getting out of the market because he knows.

Experts are saying that they believe he is shifting his money towards government bonds. Gee, what do you think? Maybe to be liquid.

This guy doesn't care about people or countries, just money and power. He didn't care when he famously profited off of England's misery. He won't care when our day of reckoning comes because he'll profit on that as well. He and his family will be going to Singapore.

Well, can your family go to Singapore?

Make no mistake. The day is coming and we must stick together and rely on the truth.

— Watch "Glenn Beck" weekdays at 5 p.m. ET on Fox News Channel

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