I'm Jerry Willis, and this is the Fox Business Rundown. Monday, June 2nd, 2025. Google, already facing an uncertain future after being found to be a monopoly, now may be handed a major setback in the global race to be the leader in artificial intelligence. I think you're supposed to applaud success applaud that they got that big.
not take out a mallet and hit him over the head or a machete and cut him off at the knees. And it just seems like some of these judges, I guess they have nothing to do. Let's pick on this. Let's pick on that. Closing arguments began last Friday in the government's historic... antitrust case against Google. U.S. District Judge Amit Mehta has already determined that Google holds an illegal monopoly in Internet search and with its ad network.
As he considers punishments which could include forcing the tech giant to sell its Chrome browser, he's also scrutinizing how Google competes in the artificial intelligence market. He's considering limiting how Google can promote its AI model, Gemini, to prevent it from holding back competitors like ChatGPT.
This could have implications for Google and the future of AI. You know, I find it amazing that they've been whining, complaining about Google. To break it all down, we bring in Gary Kaltbaum, the president of Kaltbaum Capital Management and a Fox Business contributor. When you look at articles on Google, they're described as a monopoly. Not this great company that started with nothing and it turned into this gargantuan, fantastic company, but a monopoly.
And here's the issue. They're worried about competition. Meanwhile, now they have loads of competition for search. with chat gbt i can tell you i was speaking to my wife the other day and she says to me uh what do you use i said google i never used chat gbt she goes oh you got to use chat gpt So they have competition. That's what capitalism is all about. But now they want to limit Google for moving forward with their own AI.
To me it makes no sense and it just feels like they're after the company for whatever reason and I'm always against penalizing success and that's what it looks like they're trying to do. And again, this is a U.S. district judge. It seems like the district judges are super busy going after the conservative and Trump agenda. Emmett Mehta, who is saying he wants to...
shut down Google's efforts in this area. But, you know, for a long time, they've been trying to get the company to sell its Chrome browser, which really, I mean, isn't that the essence of their operations? I don't really understand how you make this argument. argument that in order to make you more competitive, we're going to make you sell your primary asset. Yeah, let's shut down McDonald's for making burgers. I mean, that's what it really comes down to.
I've never understood our antitrust laws against our companies. Success is success. That's the way I've always looked at it. they they're so worried about companies getting big but in order to get big you have to be successful and that's what google has done and you know in the past i have seen where they were
thinking about having them spin off YouTube. Hey, let them go ahead. They bought it for a billion and a half and it's probably worth about 500 billion right now. It'll make some people very rich. So again, I don't understand. And to tell a... company that you cannot compete with somebody that's now competing with them it to me is sheer insanity it is time to take the quiz it's five questions in less than five minutes we ask people on the streets of new york city to play along let's
See how you do. Take the quiz every day at the quiz dot box. Then come back here to see how you did. Thank you for taking the quiz. Here's what I don't understand about it. When AI came along and they started developing all these apps that you could just get on and search for anything, I thought that was a threat to Google's business. You know what I mean? I mean, there wasn't...
a market development that became a natural competitor to Google search engines. So it seems to me like the market was taking care of the problem. As it always usually does, whenever somebody's doing something great, making a lot of money, has great margins. other companies come around and you never know in what shape or form to go after that company and here you go ai shows up
And all of a sudden, Google has to compete with it. And Google has to figure out on their own end on artificial intelligence. And what does a judge want to do? No, no, no, no, no. You can't do that because you have been bad in the past. Again, it flies in the face. of competition, capitalism, and it's just the long arm of government getting in the way. And let's hope it doesn't in this case because Google has created monumental wealth.
throughout the years. You got a $2 trillion market cap, not by accident. Google has made secretaries into multimillionaires and so on and so forth. Which is a good thing. Of course it is. And I still remember when certain Dems were going after Walmart, the greatest cash generating machine in history, where cashiers are managing stores and making...
hundreds of thousands of dollars and owned tons of stock and have become millionaires. But they got complained about. Again, I think you're supposed to applaud success. applaud that they got that big, not take out a mallet and hit him over the head or a machete and cut him off at the knees. And it just seems like some of these judges, I guess they have nothing to do. Let's pick on this. Let's pick on that.
Well, speaking of problems with government, I think you'd have to agree that one of the issues with government is how much debt... it's creating. And of course, we're seeing the bond market kind of freak out over the growing federal debt and deficit. I'm wondering what you think of this issue, what you think of the one big beautiful bill. Are we living on borrowed time? when it comes to how much we're spending?
Well, I don't think we've seen the freak out yet. I've been saying in all my reports for a few years now, I rue the day when the bond market wakes up and says, how much debt do we have? And just call me very disappointed. because it is not often in the political world you have an opportunity to change the complexion of something that's going awry.
And the Republicans, I think, had a great chance here. And they're fumbling it. And of course, they're using these code words that are trying to make things look better. But the bottom line is the numbers. is going to be $50 trillion in the next 5 to 10 years, no matter what.
And for them to come out and say, oh, we're cutting one point something trillion. Oh, but that's after going up six or seven trillion. So, you know, if you gain 50 pounds of weight and then lose 10 pounds, you're still up 40 pounds. so unfortunately I think this will end up getting passed why because
Part of this is the extension or the permanency of the tax cuts. And I can tell you, I don't think it would be very good news if we have this gargantuan tax hike from the tax cuts from the original Trump four years.
And I think that's why they put this whole thing together like this, because you're darned if you do, darned if you don't. But the bottom line is, is federal spending was $4.4 trillion in 2019, and it's going to... be a measly 7.2 trillion uh on this and probably a little bit more and let me just give you out a number that speaks volumes on all this over the last 10 years
our revenues to the government are up 60%, but the spending is up 95% of the government. Oh, my goodness. Repeat that. That's amazing. Okay. Over the past 10 years, tax revenue to the government... is up 60%, but government spending is up 95%. Okay, so this flies in the face of a lot of analysis that we're just not raising the tax revenue that we need. No, we're raising more and more and more tax revenue. The problem is that we're spending way too much.
Every time we send them a dollar, they're spending $1.20, $1.25. And look, I saw the Speaker of the House on TV this weekend. I'm sorry. I'm in the know. This is something I have studied and talked about and reported on for years with no bias on either party. And after what Biden did. adding 1.8 trillion of spending on this inflation reduction act that he said had no inflation reduction.
There's an opportunity to take a machete out and cut a bunch of that. And by the way, $350 billion of that is money that was handed over to John Podesta for something called climate. I don't understand why they just don't attack that. something about it. But we kind of certainly know why, because GDP has had so much government largesse in it over the years that if you pull that out, GDP may not look so good as we enter the midterm election.
And guess what? So I think we're just in the soup here. Nothing's going to change. And let's just hope. And again... I would have thought at $20 trillion the bond market would have gone crazy. But we're at $37 trillion. And it's still, you know, 10 years at 4.4 and change. That's okay. But I just worry one day where...
It just goes for bluey. And we're at six and seven, not because of inflation, but because of all this debt. And let's not forget also, we're over a trillion dollars a year now in interest payments. Not to the elderly or children in need or roads and bridges in the grid. Not to, oh I hear we need some help with the air traffic control that we're still using floppy disks. Not towards that.
towards interest, towards absolutely nothing. And this was created by... all the parties involved over, and it really started supersizing around 2000, 2001, but really went ape wild, starting in the middle of Bush. and then we went to obama trump Look, you know, both parties are guilty of this. There's no doubt about it. I mean, I have to be even-handed in my criticism of both Republicans and Democrats in terms of spending.
I can't let you go without asking you, what should I buy here? Are you going to buy Google here? It's down today. I would just wait on that right now because I'm a big believer you wait for outcomes on things like that, and that's probably important. All I can tell you right now is the big bull market right now is pretty much gold and gold miners are breaking out again to another all-time high today. I can tell you that a select few tech companies...
Companies act really strong in here, like Meta, but who knows if they're going to go after Meta one day. Costco just had another great earnings report, valuations in the trees, but great companies get premium valuations.
And I just think overall we're okay. My big worry is the tariffs, which is a huge tax on the consumer. And the market was crashing because of them before the pause. I'm in hopes that any tariffs going forward are going to... to be not that big and i think we can get away with that because they're end arounds but i worry if we go back to where they were when uh from liberation day i think markets can be in real big trouble uh so keep in
Fingers crossed that they saw what the markets did on that and they recognize it and never go back to where that was. Always smart advice, Gary Kolbaum. Thank you so much for helping us out today. Really appreciate your time. Lots of good energy. Appreciate it. Thank you.
Hey, I'm Trey Gowdy, host of the Trey Gowdy Podcast. I hope you will join me every Tuesday and Thursday as we navigate life together and hopefully find ourselves a little bit better on the other side. Listen and follow now at foxnewspodcast.com.