1 00:00:00,640 --> 00:00:04,760 Speaker 1: So over the weekend, Gavin Newsom told a black crowd 2 00:00:04,840 --> 00:00:09,000 Speaker 1: that he had an SAT score of nine sixty and 3 00:00:09,119 --> 00:00:12,920 Speaker 1: he really couldn't read. However, they have found a clip 4 00:00:13,200 --> 00:00:16,560 Speaker 1: of Gavin news I'm talking to a white crowd where 5 00:00:16,600 --> 00:00:19,840 Speaker 1: he tells the authors that he read their two hundred 6 00:00:19,840 --> 00:00:24,119 Speaker 1: and sixty plus page book in just two hours. Which 7 00:00:24,160 --> 00:00:27,240 Speaker 1: one is it, Gavin? Can you read or can't you read? 8 00:00:29,320 --> 00:00:32,680 Speaker 2: I started to talk about that Gavin knew some story 9 00:00:32,720 --> 00:00:39,120 Speaker 2: today and I just I listened to it over and 10 00:00:39,159 --> 00:00:41,839 Speaker 2: over and over, right, maybe not over and over and over, 11 00:00:41,840 --> 00:00:43,440 Speaker 2: and let to do it, maybe two or three times, 12 00:00:44,360 --> 00:00:51,479 Speaker 2: and his inflection is wording everything. I wasn't outraged by it, 13 00:00:52,120 --> 00:00:56,560 Speaker 2: but I was offended by it. I just thought, really, 14 00:00:57,320 --> 00:00:59,680 Speaker 2: do you even understand what you're saying or do you 15 00:00:59,720 --> 00:01:00,959 Speaker 2: even stand like. 16 00:01:03,080 --> 00:01:03,440 Speaker 1: You? 17 00:01:03,600 --> 00:01:05,840 Speaker 2: Did you look at the room? Do you know who 18 00:01:05,840 --> 00:01:08,680 Speaker 2: your audience is? Do you know what you're doing? And 19 00:01:08,720 --> 00:01:12,000 Speaker 2: it's just I get I get a story I was 20 00:01:12,000 --> 00:01:13,759 Speaker 2: gonna in fact, if I get to it, I may 21 00:01:13,760 --> 00:01:16,080 Speaker 2: do it in the in the last segment of the 22 00:01:16,600 --> 00:01:23,880 Speaker 2: hour about Gavin Newsom and his energy policies and what 23 00:01:23,920 --> 00:01:29,479 Speaker 2: they've done to California, particularly light of the stupid Boulder 24 00:01:29,560 --> 00:01:34,280 Speaker 2: lawsuit that the Supreme Court agreed yesterday to hear, because 25 00:01:35,080 --> 00:01:38,360 Speaker 2: in the story that I've got about the California energy policies, 26 00:01:38,400 --> 00:01:40,440 Speaker 2: you can just substitute Colorado, and it's the same thing. 27 00:01:41,520 --> 00:01:44,080 Speaker 2: You can substitute just some of the stupid things that 28 00:01:44,120 --> 00:01:47,400 Speaker 2: are being done by the politbureau right now over at 29 00:01:47,400 --> 00:01:51,040 Speaker 2: Broadway and Colfax and any number of things we can 30 00:01:51,080 --> 00:01:56,200 Speaker 2: make fun of. It's it's utterly absurd. But going back 31 00:01:56,240 --> 00:01:59,400 Speaker 2: to one of our not one of our, but one 32 00:01:59,400 --> 00:01:59,919 Speaker 2: of the old. 33 00:01:59,760 --> 00:02:01,840 Speaker 3: Try and true. 34 00:02:04,360 --> 00:02:08,040 Speaker 2: Idioms is in statements claims whatever that you want to 35 00:02:08,080 --> 00:02:12,720 Speaker 2: call it that the Left makes that I think deserves 36 00:02:13,600 --> 00:02:18,440 Speaker 2: you getting some firepower behind it is the one where 37 00:02:18,480 --> 00:02:23,799 Speaker 2: they claim that red states bring in more federal money 38 00:02:24,360 --> 00:02:29,200 Speaker 2: than blue states and conversely that red states pay less 39 00:02:29,600 --> 00:02:34,880 Speaker 2: in federal taxes than blue states. And that came up 40 00:02:35,160 --> 00:02:39,920 Speaker 2: in again on X yesterday in the reply to the 41 00:02:40,080 --> 00:02:46,120 Speaker 2: chart about how Colorado is the thirteenth most expensive state 42 00:02:46,320 --> 00:02:50,680 Speaker 2: in the country and we are the sixth most regulated 43 00:02:50,720 --> 00:02:54,920 Speaker 2: state in the country. Well, that falls in line with 44 00:02:55,000 --> 00:03:00,280 Speaker 2: this idea that red states, you know, don't pay as 45 00:03:00,360 --> 00:03:03,640 Speaker 2: much as blue states and they bring in more money 46 00:03:04,040 --> 00:03:07,200 Speaker 2: from the Feds than the blue states do. And this 47 00:03:07,280 --> 00:03:10,359 Speaker 2: is one of those questions, one of those claims where 48 00:03:10,480 --> 00:03:14,320 Speaker 2: the data is real, but the narraty that's been built 49 00:03:14,360 --> 00:03:18,720 Speaker 2: around it is misleading. And in order to fully counter 50 00:03:18,840 --> 00:03:21,800 Speaker 2: the narrative, we actually have to have an understanding of 51 00:03:21,840 --> 00:03:25,799 Speaker 2: how federal spending works, which of course nobody in cable 52 00:03:25,840 --> 00:03:28,920 Speaker 2: news on the left or the right is going to 53 00:03:28,919 --> 00:03:31,639 Speaker 2: bother to do to help you understand what's really going on. 54 00:03:33,320 --> 00:03:36,800 Speaker 2: The basic data shows that, yes, this is mostly true. 55 00:03:38,280 --> 00:03:43,040 Speaker 2: By most measures, many red states do get more in 56 00:03:43,080 --> 00:03:48,320 Speaker 2: federal spending per dollar of taxes paid than blue states. 57 00:03:49,160 --> 00:03:53,400 Speaker 2: So the balance of payments or the Federal dependency Index 58 00:03:54,160 --> 00:03:59,840 Speaker 2: consistent consistently shows that states like Mississippi, West Virginia, Kentucky, Alabama, 59 00:04:00,040 --> 00:04:03,720 Speaker 2: in Mexico, Louisiana, states that we normally think of all 60 00:04:03,840 --> 00:04:08,960 Speaker 2: those poor, you know, hicks in the Southern states, they 61 00:04:09,080 --> 00:04:14,680 Speaker 2: generally receive two dollars or more in federal spending for 62 00:04:14,800 --> 00:04:19,760 Speaker 2: every one dollar that their residents send to Washington, and 63 00:04:19,920 --> 00:04:20,880 Speaker 2: that's where it stops. 64 00:04:21,360 --> 00:04:23,200 Speaker 3: Nobody ever goes any further than that. 65 00:04:23,600 --> 00:04:25,600 Speaker 2: And so they claim that all all of these you know, 66 00:04:25,800 --> 00:04:29,000 Speaker 2: all these conservative states they get more money than. 67 00:04:28,920 --> 00:04:29,960 Speaker 3: They actually pay in. 68 00:04:31,440 --> 00:04:35,440 Speaker 2: And then meanwhile, California, New York, New Jersey, Connecticut, Massachusetts, 69 00:04:35,480 --> 00:04:38,360 Speaker 2: they are net contributors. In other words, they pay in 70 00:04:38,560 --> 00:04:41,240 Speaker 2: more than they get back. Now, that is on it. 71 00:04:41,760 --> 00:04:45,160 Speaker 2: On the surface, that's not a myth. Those are real numbers, 72 00:04:46,200 --> 00:04:51,120 Speaker 2: but nobody ever takes it to an analysis. Why here, 73 00:04:51,160 --> 00:04:55,760 Speaker 2: here's why the Red states are freeloaders. Narrative falls apart. 74 00:04:56,960 --> 00:05:03,120 Speaker 2: What's actually driving that spending? The angle largest driver of 75 00:05:03,160 --> 00:05:07,320 Speaker 2: federal spending to Red states is what do you have 76 00:05:07,400 --> 00:05:08,040 Speaker 2: any clue? 77 00:05:10,760 --> 00:05:12,800 Speaker 3: Do you? You got? 78 00:05:13,200 --> 00:05:16,000 Speaker 2: You gotta You have to know this in order to 79 00:05:16,040 --> 00:05:19,880 Speaker 2: be able to defend when all of these liberal yahoos 80 00:05:20,120 --> 00:05:22,080 Speaker 2: claim that, oh, you're of a red state, you get 81 00:05:22,120 --> 00:05:22,679 Speaker 2: more money. 82 00:05:22,520 --> 00:05:23,080 Speaker 3: Than you pay in. 83 00:05:23,160 --> 00:05:27,200 Speaker 2: Okay, Well, what's the largest driver of federal spending to 84 00:05:27,520 --> 00:05:34,400 Speaker 2: Red states? Military and defense infrastructure. The South and the 85 00:05:34,440 --> 00:05:41,320 Speaker 2: Mountain West host a disproportionate share of military bases, defense contractors, 86 00:05:41,760 --> 00:05:47,520 Speaker 2: VA hospitals and nuclear facilities Fort Bragg, Fort Hood, the 87 00:05:47,600 --> 00:05:51,920 Speaker 2: naval installations across Virginia and the Gulf Coast Nora rad 88 00:05:52,000 --> 00:05:55,680 Speaker 2: right here in Colorado. Nuclear facilities in South Carolina and Tennessee. 89 00:05:56,120 --> 00:06:00,760 Speaker 2: Those are not welfare programs, their strategic assets that the 90 00:06:00,800 --> 00:06:07,640 Speaker 2: federal government chose to put in those specific places, oftentimes 91 00:06:07,880 --> 00:06:13,560 Speaker 2: decades and decades ago, partly because land was cheap, and 92 00:06:13,640 --> 00:06:19,320 Speaker 2: partly because Southern senators his Democrat senators historically dominated the 93 00:06:19,400 --> 00:06:23,640 Speaker 2: armed services committees. So what happens if you strip out 94 00:06:23,880 --> 00:06:28,800 Speaker 2: defense spending, well, then the red state advantage shrinks considerably 95 00:06:29,120 --> 00:06:33,920 Speaker 2: and in many states completely disappears. So that's the first 96 00:06:35,080 --> 00:06:38,560 Speaker 2: the basic data. Yes, is mostly true. But then you 97 00:06:38,640 --> 00:06:42,520 Speaker 2: get to the next level of analysis. What about agricultural 98 00:06:42,520 --> 00:06:48,400 Speaker 2: and natural resources? Because federal farm subsidies, crop insurance programs, 99 00:06:49,000 --> 00:06:54,920 Speaker 2: Bureau of Land Management operations, natural resource royalty structures, those 100 00:06:55,080 --> 00:07:01,440 Speaker 2: programs funnel enormous sums to rural, mostly lit large red states. 101 00:07:02,560 --> 00:07:08,320 Speaker 2: But again, they're not transfer payments. They're not social welfare payments. 102 00:07:08,520 --> 00:07:11,920 Speaker 2: As those making this claim don't tell you. They want 103 00:07:11,960 --> 00:07:14,160 Speaker 2: you to believe that, oh, the red states, the vote 104 00:07:14,200 --> 00:07:17,600 Speaker 2: conservative are getting more money because they're all in welfare. No, 105 00:07:17,840 --> 00:07:22,360 Speaker 2: it's the direct consequence of federal policies, many of which 106 00:07:22,400 --> 00:07:26,400 Speaker 2: Red states state politicians actually oppose in principle but can't 107 00:07:26,400 --> 00:07:30,880 Speaker 2: politically afford to kill. It's applied to land intensive industries 108 00:07:31,040 --> 00:07:33,400 Speaker 2: that happen to be concentrated in those states. 109 00:07:34,280 --> 00:07:35,080 Speaker 3: Just go look at it. 110 00:07:35,120 --> 00:07:37,520 Speaker 2: Go look at a map of the urban areas in 111 00:07:37,600 --> 00:07:42,320 Speaker 2: this country, the urban Look at an urbanization map and 112 00:07:42,320 --> 00:07:45,560 Speaker 2: look at everything in the upper East Corridor and of 113 00:07:45,560 --> 00:07:47,440 Speaker 2: course along the West coast. And then look at this 114 00:07:47,600 --> 00:07:51,600 Speaker 2: vast amount of land in the middle. When you when 115 00:07:51,600 --> 00:07:54,960 Speaker 2: you strip out defense spending, and then you look at 116 00:07:55,000 --> 00:07:59,800 Speaker 2: agricultural and natural resource spending, which are not well. You know, yes, 117 00:08:00,120 --> 00:08:03,800 Speaker 2: some farm subsidies I would classify as welfare programs. I 118 00:08:03,840 --> 00:08:06,080 Speaker 2: know that offends farmers and ranchers, but it is a 119 00:08:06,080 --> 00:08:08,680 Speaker 2: form of welfare. It is a transfer payment, whether you 120 00:08:08,800 --> 00:08:13,040 Speaker 2: like it or not. Then you get to Medicare and 121 00:08:13,080 --> 00:08:19,040 Speaker 2: Social Security, and that is the absolute overlooked giant. This 122 00:08:19,320 --> 00:08:25,240 Speaker 2: one is a significant driver and it deserves an honest examination. 123 00:08:26,000 --> 00:08:28,000 Speaker 2: Medicare and Social Security. 124 00:08:28,600 --> 00:08:32,040 Speaker 4: Why don't we get a dose discount for you know, 125 00:08:32,280 --> 00:08:40,440 Speaker 4: like useless lawyer, I keep suing andsuing the American public. 126 00:08:41,600 --> 00:08:43,760 Speaker 4: Now I one who makes money out of a lawsuit 127 00:08:43,840 --> 00:08:48,600 Speaker 4: life That is good lawyers. How about lawyers find something else. 128 00:08:48,400 --> 00:08:51,760 Speaker 3: To do, Yeah, like get a talk show. 129 00:08:52,040 --> 00:08:56,520 Speaker 2: Exactly, we don't have enough lawyers in this country. We 130 00:08:56,559 --> 00:08:59,960 Speaker 2: need to double the number of lawyers. Don't you think. 131 00:09:01,840 --> 00:09:03,520 Speaker 3: I'm looking at one too many right now? 132 00:09:08,040 --> 00:09:11,360 Speaker 2: I'm probably one of the happiest lawyers in the country. 133 00:09:12,559 --> 00:09:19,880 Speaker 2: You know why, because I'm not practicing law. We're talking 134 00:09:19,920 --> 00:09:25,160 Speaker 2: about this age old claim that Red states are a 135 00:09:25,200 --> 00:09:30,320 Speaker 2: bunch of welfare queens bringing in all of this extra money. 136 00:09:30,720 --> 00:09:33,160 Speaker 2: They're not paying their fair share of taxes. In Blue 137 00:09:33,200 --> 00:09:36,800 Speaker 2: states are apparently paying more in taxes but not getting enough. 138 00:09:36,880 --> 00:09:40,040 Speaker 2: They're not getting their fair share back. And if you 139 00:09:40,080 --> 00:09:44,040 Speaker 2: look just at the top level numbers, the numbers say 140 00:09:44,200 --> 00:09:47,120 Speaker 2: that is true until you dig into it and understand 141 00:09:47,160 --> 00:09:49,440 Speaker 2: the reasons. And we're walking through the reasons so that 142 00:09:49,480 --> 00:09:53,280 Speaker 2: you'll have the tools that you need to counter that argument. 143 00:09:53,280 --> 00:09:55,920 Speaker 2: When you hear from all your progressive friends in Colorado, 144 00:09:56,800 --> 00:10:00,440 Speaker 2: which is like every person that you meet, I wonder 145 00:10:00,440 --> 00:10:03,600 Speaker 2: how many of us are left, how many of. 146 00:10:03,600 --> 00:10:06,080 Speaker 3: Us rational human beings are left in this state. 147 00:10:06,520 --> 00:10:11,800 Speaker 2: And I said that Medicaid is the big one, social 148 00:10:11,840 --> 00:10:15,960 Speaker 2: Security the overlooked one. And let's go through those, because 149 00:10:16,000 --> 00:10:19,720 Speaker 2: the one that actually is a significant driver but deserves 150 00:10:19,760 --> 00:10:24,760 Speaker 2: an honest examination is Medicare and social Security. Red states 151 00:10:25,880 --> 00:10:30,400 Speaker 2: tend to be older. Red states tend to be more rural, 152 00:10:31,160 --> 00:10:34,760 Speaker 2: and so they therefore have lower average incomes, meaning that 153 00:10:34,840 --> 00:10:38,360 Speaker 2: those populations draw more from those two programs on a 154 00:10:38,480 --> 00:10:43,800 Speaker 2: per capita basis relative to what working age residents paid in. 155 00:10:44,880 --> 00:10:48,880 Speaker 2: That is a demographic and economic reality that is not 156 00:10:49,000 --> 00:10:53,400 Speaker 2: a policy choice that Red state politicians made. It also, 157 00:10:53,640 --> 00:11:00,640 Speaker 2: frankly underscores the fiscal sustainability problem with both programmed that 158 00:11:00,840 --> 00:11:03,400 Speaker 2: conservatives have been warning about for decades. 159 00:11:05,000 --> 00:11:06,680 Speaker 3: You again, go. 160 00:11:06,679 --> 00:11:09,040 Speaker 2: Look at now, go look at the electoral college map 161 00:11:10,360 --> 00:11:14,840 Speaker 2: and look at the blue areas that voted for cackling 162 00:11:15,360 --> 00:11:18,719 Speaker 2: Kamala versus the red areas that voted for you know 163 00:11:19,120 --> 00:11:23,000 Speaker 2: who's going to be you know, screening at us tonight Trump. Yes, 164 00:11:23,960 --> 00:11:28,520 Speaker 2: there there are. Because of the demographic and economic reality, 165 00:11:29,800 --> 00:11:33,080 Speaker 2: those two programs pay more on a per capital basis 166 00:11:33,360 --> 00:11:36,240 Speaker 2: relative to what the what the working age residents paid in. 167 00:11:37,240 --> 00:11:41,120 Speaker 2: Everybody retires to Florida and makes it a red state, 168 00:11:41,280 --> 00:11:46,160 Speaker 2: or they are they moved to the dakotas medicaid. It's 169 00:11:46,200 --> 00:11:52,800 Speaker 2: pretty complicated and it's genuinely awkward. Federal matching funds flow 170 00:11:53,000 --> 00:11:57,640 Speaker 2: heavily to low income states, and many Red states have 171 00:11:57,840 --> 00:12:03,160 Speaker 2: high poverty rates. Several Red states refused the Affordable Care 172 00:12:03,200 --> 00:12:08,440 Speaker 2: Act Medicaid expansion precisely because they did not want to 173 00:12:08,600 --> 00:12:14,840 Speaker 2: increase dependency. So Mississippi, Alabama and others left billions on 174 00:12:14,880 --> 00:12:20,840 Speaker 2: the table out of principle. Now that's the opposite of freeloading. 175 00:12:21,520 --> 00:12:25,040 Speaker 2: And in other Red states did expand Arkansas and Indiana 176 00:12:25,080 --> 00:12:30,000 Speaker 2: come to mind, they did so under conservative waiver models. 177 00:12:30,760 --> 00:12:34,320 Speaker 2: So you can't blame that. Oh, they're just freeloaders on 178 00:12:34,400 --> 00:12:38,439 Speaker 2: Medicare and Medicaid. But why do Blue states pay more 179 00:12:38,440 --> 00:12:42,480 Speaker 2: in taxes? I don't think it's virtue, you know, I 180 00:12:42,520 --> 00:12:45,760 Speaker 2: think it is. I think it's zip codes. Blue states 181 00:12:45,800 --> 00:12:51,400 Speaker 2: are net federal tax contributors primarily because they contain the 182 00:12:51,480 --> 00:12:59,719 Speaker 2: extremely high income urban areas Manhattan, Silicon Valley, Chicago's Loop, Seattle, 183 00:13:00,240 --> 00:13:04,440 Speaker 2: where a very small number of very high earners pay 184 00:13:04,800 --> 00:13:10,160 Speaker 2: enormous federal income taxes. New York's net contributor status do 185 00:13:10,240 --> 00:13:13,560 Speaker 2: you know that is driven by only about a hundred 186 00:13:13,720 --> 00:13:18,840 Speaker 2: thousand people in a I don't know what the population 187 00:13:18,960 --> 00:13:21,080 Speaker 2: New York is, but in New York City want eight million, 188 00:13:21,720 --> 00:13:26,000 Speaker 2: it's driven by one hundred thousand people in literally less 189 00:13:26,000 --> 00:13:30,120 Speaker 2: than a dozen zip codes that all write very large 190 00:13:30,200 --> 00:13:31,880 Speaker 2: checks to the irs. 191 00:13:32,640 --> 00:13:34,320 Speaker 3: What's that, Mike or Michael. 192 00:13:34,600 --> 00:13:37,280 Speaker 4: When you were going to that last commercial break, were 193 00:13:37,280 --> 00:13:41,040 Speaker 4: you getting ready to say that there's uh taxpayers like 194 00:13:41,240 --> 00:13:44,800 Speaker 4: rich taxpayers out there paying their fair share. No way, 195 00:13:45,440 --> 00:13:46,680 Speaker 4: I don't believe it. 196 00:13:46,720 --> 00:13:47,199 Speaker 1: Fill us in. 197 00:13:48,480 --> 00:13:51,240 Speaker 2: No, I wasn't saying they were paying their fair share. 198 00:13:51,440 --> 00:13:54,680 Speaker 2: I just said that they are clustered together, and so 199 00:13:54,760 --> 00:13:57,760 Speaker 2: they pay a lot more because they per well, they 200 00:13:57,800 --> 00:14:00,679 Speaker 2: pay more per capita. And they're all in the same 201 00:14:00,840 --> 00:14:04,280 Speaker 2: zip codes. So they're all in these blue states and 202 00:14:04,360 --> 00:14:07,600 Speaker 2: these blue zip codes. I don't know what the fair 203 00:14:07,600 --> 00:14:11,920 Speaker 2: share is. I can't get any I can't get any liberal, progressive, Marxist, Democrat, communists, 204 00:14:12,120 --> 00:14:14,040 Speaker 2: Hell's bills. I can't even get a conservative. Tell me 205 00:14:14,040 --> 00:14:21,120 Speaker 2: about them. What's your fair share? I know my fair 206 00:14:21,160 --> 00:14:24,960 Speaker 2: share is is a lot less than what I'm saying 207 00:14:25,000 --> 00:14:32,880 Speaker 2: right now. As I said, it's the zip codes. Here 208 00:14:32,920 --> 00:14:38,680 Speaker 2: are the stats I gave you. Yes, blue states are 209 00:14:38,840 --> 00:14:43,600 Speaker 2: net federal tax contributors. But that's because when you look 210 00:14:43,640 --> 00:14:47,000 Speaker 2: at again, go look at the electoral college, Matt, look 211 00:14:47,000 --> 00:14:51,280 Speaker 2: at all the places that voted blue. Guess what those are? 212 00:14:51,320 --> 00:14:55,800 Speaker 2: All these urban areas where you have predominant, predominantly a 213 00:14:55,800 --> 00:15:01,960 Speaker 2: bunch of liberal Marxist do gooders that are extraordinarily high earners. 214 00:15:02,880 --> 00:15:08,480 Speaker 2: New York is a net contributor state, driven by maybe 215 00:15:08,480 --> 00:15:12,560 Speaker 2: one hundred thousand people in maybe a dozen zip codes 216 00:15:13,040 --> 00:15:15,359 Speaker 2: that write very large checks to the irs. 217 00:15:16,640 --> 00:15:18,360 Speaker 3: Now, what does that mean? 218 00:15:19,440 --> 00:15:22,920 Speaker 2: That is not evidence that the Blue states are more 219 00:15:22,960 --> 00:15:26,160 Speaker 2: physically responsible. It doesn't even mean that the Blue states 220 00:15:26,160 --> 00:15:30,680 Speaker 2: are less dependent on the government. It's evidence that progressive 221 00:15:30,880 --> 00:15:36,440 Speaker 2: income taxes concentrates federal revenue collection in places that have 222 00:15:36,560 --> 00:15:41,320 Speaker 2: extreme income inequality. California, as I noticed at the very 223 00:15:41,320 --> 00:15:44,760 Speaker 2: beginning of this program, has some of the highest poverty 224 00:15:44,840 --> 00:15:46,720 Speaker 2: rates in the entire country. 225 00:15:48,200 --> 00:15:53,920 Speaker 3: Yet what their net tax payers? Why? 226 00:15:54,560 --> 00:16:01,120 Speaker 2: Silicon Valley, San Jose, San Diego, Los Angeles, well, parts 227 00:16:01,120 --> 00:16:03,840 Speaker 2: of Los Angeles, not Los Angeles itself, but some of 228 00:16:03,880 --> 00:16:08,080 Speaker 2: the burbs around Los Angeles, San Francisco, particularly downtown San Francisco. 229 00:16:08,400 --> 00:16:11,080 Speaker 2: Then you get out into Silicon Valley and Santos arounds 230 00:16:11,360 --> 00:16:16,200 Speaker 2: San Francisco. That's why Blue states pay more, not because 231 00:16:16,240 --> 00:16:18,960 Speaker 2: they're more virtuous, not because they care and so they 232 00:16:19,040 --> 00:16:19,760 Speaker 2: want to pay more. 233 00:16:19,800 --> 00:16:20,840 Speaker 3: Do you think Bill Gates is. 234 00:16:20,760 --> 00:16:24,240 Speaker 2: Sitting up in Seattle and says, you know what, I'm 235 00:16:24,240 --> 00:16:25,800 Speaker 2: not paying enough. I think I'll just pay it right 236 00:16:25,840 --> 00:16:30,400 Speaker 2: an extra check. No, of course not. And then there's 237 00:16:30,400 --> 00:16:35,600 Speaker 2: the per capitaal fallacy. Much of the analysis is done 238 00:16:35,840 --> 00:16:39,760 Speaker 2: per capita or per dollar of taxes paid, and that 239 00:16:39,840 --> 00:16:44,040 Speaker 2: distorts the picture. California has forty million people, give or 240 00:16:44,120 --> 00:16:48,920 Speaker 2: take Wyoming maybe five hundred and eighty thousand. I don't know, 241 00:16:49,880 --> 00:16:53,920 Speaker 2: so of course Wyoming gets a higher ratio to fixed 242 00:16:53,960 --> 00:16:59,000 Speaker 2: costs of federal infrastructure don't scale on a linear. 243 00:16:58,800 --> 00:16:59,920 Speaker 3: Basis with the pop ya. 244 00:17:01,960 --> 00:17:05,520 Speaker 2: So if you want to have an honest conservative answer 245 00:17:05,560 --> 00:17:12,719 Speaker 2: to this claim, red state politicians, red state conservatives. Wait 246 00:17:12,760 --> 00:17:14,080 Speaker 2: a minute. I was gonna say, like me, but I 247 00:17:14,080 --> 00:17:16,480 Speaker 2: can't really claim myself to be a red state conservative. 248 00:17:16,920 --> 00:17:20,600 Speaker 2: I'm a blue state conservative. But red state politicians, let's 249 00:17:20,600 --> 00:17:24,320 Speaker 2: put it that way. Red state politicians ought to acknowledge 250 00:17:24,320 --> 00:17:28,240 Speaker 2: that the data aren't. Acknowledge the data honestly and not 251 00:17:28,440 --> 00:17:31,080 Speaker 2: just dismiss it, and they ought to learn to explain 252 00:17:31,119 --> 00:17:36,720 Speaker 2: it accurately, because the real indictment is not of red 253 00:17:36,760 --> 00:17:41,240 Speaker 2: state residents, but it's instead an indictment of a federal 254 00:17:41,320 --> 00:17:47,040 Speaker 2: spending structure and that federal spending structure does four things. 255 00:17:47,880 --> 00:17:52,959 Speaker 2: It has militarized the South and the West because of 256 00:17:53,600 --> 00:17:57,440 Speaker 2: strategic geography. Why the hell do you think nor Rad's 257 00:17:57,440 --> 00:17:58,600 Speaker 2: where nor Rad is. 258 00:18:00,000 --> 00:18:00,080 Speaker 1: Now? 259 00:18:00,160 --> 00:18:04,399 Speaker 2: Originally Yes, Cheyenne Mountain because if we're worried about a 260 00:18:04,600 --> 00:18:08,200 Speaker 2: thermonuclear laydown, yes, we want to put our op center 261 00:18:08,280 --> 00:18:11,480 Speaker 2: inside the belly of a mountain where it's going to 262 00:18:11,560 --> 00:18:14,920 Speaker 2: be safe. Or missile silos. Where do you want to 263 00:18:14,920 --> 00:18:17,280 Speaker 2: put the missile silos? You don't want to put them 264 00:18:17,280 --> 00:18:21,600 Speaker 2: on you know, Realdeo Drive. You put them in Wyoming, 265 00:18:21,680 --> 00:18:23,240 Speaker 2: you put them in North and South Dako, do you 266 00:18:23,240 --> 00:18:25,480 Speaker 2: put them on the plains of Colorado? That's what you 267 00:18:25,520 --> 00:18:28,520 Speaker 2: do with missile silos. So it's militarizing the South and 268 00:18:28,600 --> 00:18:35,520 Speaker 2: the West because of our strategic geography. Second, subsidies for agriculture, 269 00:18:35,760 --> 00:18:39,440 Speaker 2: and that occurs for both parties. They decided decades ago 270 00:18:39,480 --> 00:18:42,560 Speaker 2: that we're going to prop up food production. Now, somebody 271 00:18:42,560 --> 00:18:45,679 Speaker 2: in the text line had a point that at first glance, 272 00:18:46,240 --> 00:18:48,159 Speaker 2: I kind of agree with it, but I'd like to 273 00:18:48,160 --> 00:18:51,760 Speaker 2: pick it apart. Seven ninety four six rides Mike, I 274 00:18:51,800 --> 00:18:54,120 Speaker 2: hear you on the farm subsidies, But if you think 275 00:18:54,160 --> 00:18:57,040 Speaker 2: food prices are high. Now, imagine if those farmers had 276 00:18:57,080 --> 00:18:59,440 Speaker 2: to charge enough money to keep them off those subsidies. 277 00:19:00,000 --> 00:19:03,200 Speaker 2: Those guys might soak up federal dollars. But everybody benefits 278 00:19:03,240 --> 00:19:09,560 Speaker 2: from those dollars generally speaking. Yes, that is true, but 279 00:19:09,640 --> 00:19:14,040 Speaker 2: don't let that distract you from the idea that agriculture 280 00:19:14,320 --> 00:19:19,240 Speaker 2: subsidies exists for both parties. Yeah, I know this seems 281 00:19:19,240 --> 00:19:22,719 Speaker 2: like an anomaly, like an anachronism, but there are liberal 282 00:19:22,720 --> 00:19:26,640 Speaker 2: farmers and they do get subsidies. And there are conservative 283 00:19:26,640 --> 00:19:32,960 Speaker 2: farmers and ranchers and they do get subsidies. And then, third, 284 00:19:34,240 --> 00:19:41,240 Speaker 2: our federal spending structure created entitlement programs structured around demographics 285 00:19:41,840 --> 00:19:46,160 Speaker 2: that just happen to concentrate in rural America. And what 286 00:19:46,240 --> 00:19:49,080 Speaker 2: do a lot of people do when they start deciding 287 00:19:49,119 --> 00:19:53,200 Speaker 2: to retire, Oh, let's move to a smaller town. Let's 288 00:19:53,240 --> 00:19:56,320 Speaker 2: get out of the city. Let's move to the countryside, 289 00:19:56,840 --> 00:19:58,360 Speaker 2: let's move to the Ozarks. 290 00:19:59,320 --> 00:20:02,720 Speaker 3: They don't say to themselves, yeah, it's retired to Aspen. No, 291 00:20:02,880 --> 00:20:05,240 Speaker 3: they don't do it. Who's retired to tell you? Right? 292 00:20:05,520 --> 00:20:08,000 Speaker 2: No, they don't do it. Instand it might be, Hey, 293 00:20:08,080 --> 00:20:12,200 Speaker 2: let's retire to Alamosa, let's retire to Yuma and then 294 00:20:12,720 --> 00:20:21,879 Speaker 2: last our spending structure taxes incomes so progressively that a 295 00:20:22,040 --> 00:20:30,240 Speaker 2: handful of coastal metro areas functionally subsidize everything else. If 296 00:20:30,280 --> 00:20:35,080 Speaker 2: you just take the eastern seaboard and the left coast, 297 00:20:35,560 --> 00:20:39,399 Speaker 2: they truly are functionally subsidizing everything else because of the 298 00:20:39,400 --> 00:20:44,080 Speaker 2: concentration of wealth there. So the solution that's not for 299 00:20:44,119 --> 00:20:47,080 Speaker 2: Red states to send more money to Washington. The solution 300 00:20:47,240 --> 00:20:51,399 Speaker 2: is for Washington to just spend less of everybody's money, 301 00:20:51,800 --> 00:20:54,760 Speaker 2: which is not coincidentally what most Red state politicians actually 302 00:20:54,920 --> 00:20:57,800 Speaker 2: argue for, even if they struggle to act on it 303 00:20:57,800 --> 00:21:02,199 Speaker 2: when their appropriation bills land on their desks. Now, the 304 00:21:02,200 --> 00:21:05,320 Speaker 2: progressive version of this argument red states are hypocrites who 305 00:21:05,320 --> 00:21:09,080 Speaker 2: hate government but take government money is glib and I 306 00:21:09,119 --> 00:21:12,400 Speaker 2: know it's satisfying to people who already agree, but it's 307 00:21:12,480 --> 00:21:17,480 Speaker 2: completely useless as actual analysis. The spending flows where it 308 00:21:17,600 --> 00:21:21,399 Speaker 2: flows because of decisions made in Washington, not because rural 309 00:21:21,440 --> 00:21:25,240 Speaker 2: Alabamas are secretly socialists who call their congressmen and demanded 310 00:21:25,240 --> 00:21:30,720 Speaker 2: a naval air station. Good grief when somebody hits you 311 00:21:31,800 --> 00:21:34,960 Speaker 2: with the Red States or welfare queens here's the three 312 00:21:34,960 --> 00:21:39,399 Speaker 2: punch response. First, ask them to break down what the 313 00:21:39,440 --> 00:21:45,919 Speaker 2: spending is, defense, agriculture, entitlements would explain almost all of 314 00:21:45,920 --> 00:21:49,080 Speaker 2: the differences. And then the next thing I would do 315 00:21:49,640 --> 00:21:53,080 Speaker 2: ask them whether they'd like to eliminate farm subsidies and 316 00:21:53,160 --> 00:22:02,240 Speaker 2: close Southern military bases or Western military facilities. About that boom, Well, 317 00:22:02,520 --> 00:22:04,240 Speaker 2: maybe the communists would because they want us to be 318 00:22:04,320 --> 00:22:07,520 Speaker 2: overrun anyway. And then third point of the California has 319 00:22:07,560 --> 00:22:11,440 Speaker 2: the highest rate poverty rate in the entire country adjusted 320 00:22:11,480 --> 00:22:13,879 Speaker 2: for cost of living, and New York City has income 321 00:22:13,920 --> 00:22:18,800 Speaker 2: inequality rivaling and developing country. So maybe, just maybe, high 322 00:22:18,800 --> 00:22:22,760 Speaker 2: federal tax payments isn't the unambiguous sign of good governance 323 00:22:22,960 --> 00:22:26,200 Speaker 2: that liberals think it is. The data point is real, 324 00:22:26,520 --> 00:22:30,560 Speaker 2: but the story that's been built around it is utterly lazy, 325 00:22:31,160 --> 00:22:34,760 Speaker 2: completely lazy, and I'm tired of people throwing it back 326 00:22:34,800 --> 00:22:37,679 Speaker 2: in my face on you know, whether it's well wherever 327 00:22:37,680 --> 00:22:43,600 Speaker 2: they happen to throw it, it's just insane to do so. 328 00:22:43,600 --> 00:22:46,520 Speaker 2: So when you get hit with that kind of argument, 329 00:22:47,480 --> 00:22:52,399 Speaker 2: I want you to remember that maybe not so much, 330 00:22:54,080 --> 00:22:57,000 Speaker 2: maybe not so much at all. The editorial board of 331 00:22:57,080 --> 00:22:59,960 Speaker 2: The Wall Street Journal, I don't think they all I 332 00:23:00,320 --> 00:23:02,240 Speaker 2: love them, I don't think they always get things right. 333 00:23:03,080 --> 00:23:06,280 Speaker 2: But they did nail Gavin Newsom and its catastrophic energy 334 00:23:06,280 --> 00:23:09,200 Speaker 2: and climate policies of the Wall in a new editorial. 335 00:23:09,480 --> 00:23:14,720 Speaker 2: It's headlined Newsom's climate policy backfires and the Board in 336 00:23:14,720 --> 00:23:18,720 Speaker 2: this case doesn't pull any punches because the governor's relentless 337 00:23:18,840 --> 00:23:23,280 Speaker 2: regulatory assault in California's oil refineries is guess what it's doing. 338 00:23:24,000 --> 00:23:29,960 Speaker 2: It's delivering higher energy costs, it's costing them jobs, it's 339 00:23:30,000 --> 00:23:33,520 Speaker 2: creating a greater dependence on foreign fuel, and the most 340 00:23:33,520 --> 00:23:37,600 Speaker 2: delicious irony for me of all, it's creating even more 341 00:23:37,680 --> 00:23:42,159 Speaker 2: CO two emissions. This is the ugly reality for Californians. 342 00:23:42,720 --> 00:23:46,640 Speaker 2: Fill in the blank. This is the ugly reality for Colorado's. 343 00:23:47,280 --> 00:23:53,160 Speaker 2: Since Newsom became governor in twenty nineteen, California's lost i'd 344 00:23:53,200 --> 00:23:57,800 Speaker 2: say about twenty five percent of its total refinery capacity, 345 00:23:58,680 --> 00:24:01,920 Speaker 2: so a quarter of the infrastructure that turns crude into gasoline, 346 00:24:02,119 --> 00:24:05,760 Speaker 2: diesel or jed a that powers the state's economy, they've 347 00:24:05,800 --> 00:24:09,400 Speaker 2: lost almost a fourth of it. So just this month, 348 00:24:09,480 --> 00:24:12,000 Speaker 2: Phillip sixty six announced that it was laying off two 349 00:24:12,080 --> 00:24:15,680 Speaker 2: hundred and seventy seven workers at its La refinery because 350 00:24:15,720 --> 00:24:18,800 Speaker 2: it's going to wind down operations there. Why because of 351 00:24:18,840 --> 00:24:22,840 Speaker 2: all the regulations. Valero Energy they're gonna shut it. They're 352 00:24:22,840 --> 00:24:26,359 Speaker 2: gonna shut down their northern California refinery this spring, throwing 353 00:24:26,440 --> 00:24:30,640 Speaker 2: hundreds of more Californias out of work. Chevron's Richmond refinery 354 00:24:30,680 --> 00:24:34,119 Speaker 2: near San fran It's still open, but the company moved 355 00:24:34,119 --> 00:24:37,600 Speaker 2: the headquarters after a century in the Bay Area and 356 00:24:37,720 --> 00:24:43,760 Speaker 2: went to Houston two years ago. Why complaining about Newsom's 357 00:24:43,800 --> 00:24:44,960 Speaker 2: regulatory onslaught? 358 00:24:45,680 --> 00:24:45,880 Speaker 3: Now? 359 00:24:45,880 --> 00:24:49,360 Speaker 2: How much longer Richmond that refinery can survive? I think 360 00:24:49,359 --> 00:24:52,200 Speaker 2: it is an open question, but I give it maybe 361 00:24:52,200 --> 00:24:55,920 Speaker 2: two years at the most. The refiners are crystal clear 362 00:24:56,640 --> 00:25:00,720 Speaker 2: about why they're leaving. It's a toxic combination of cap 363 00:25:00,800 --> 00:25:03,960 Speaker 2: and trade, the low carbon fuel standard that piles on 364 00:25:04,000 --> 00:25:07,440 Speaker 2: all these compliance costs, the costs and threat of excessive 365 00:25:07,440 --> 00:25:10,720 Speaker 2: profits tax access profit tax. That's back again. That's back 366 00:25:10,760 --> 00:25:14,119 Speaker 2: in the Carter Days attack. That makes it impossible to 367 00:25:14,200 --> 00:25:17,520 Speaker 2: plan for the long haul. Why invest in upgrading an 368 00:25:17,720 --> 00:25:21,280 Speaker 2: aging facility when the state capital is going to treat 369 00:25:21,320 --> 00:25:26,240 Speaker 2: you like a criminal cash cow? Colorado, be careful. You 370 00:25:26,240 --> 00:25:28,560 Speaker 2: got to look out West, and see what's happening when 371 00:25:28,600 --> 00:25:31,359 Speaker 2: we start trying to think about doing that here. And 372 00:25:31,400 --> 00:25:36,480 Speaker 2: the result of all of this, California's imports a refined 373 00:25:36,560 --> 00:25:42,200 Speaker 2: fuel have jumped at least thirty percent since late twenty nineteen, 374 00:25:42,359 --> 00:25:47,280 Speaker 2: again according to the Energy Information Administration. So we're now 375 00:25:47,320 --> 00:25:55,919 Speaker 2: shipping in gasoline to cana to California from Canada, South Korea, Japan, India, 376 00:25:56,680 --> 00:26:04,720 Speaker 2: and yes, the Bahamas. We are importing crew from the Bahamas, 377 00:26:04,760 --> 00:26:09,480 Speaker 2: for crying out loud, into California. Now, why can't we 378 00:26:09,520 --> 00:26:13,320 Speaker 2: just get it from the energy rich Gulf Coast because 379 00:26:13,359 --> 00:26:17,639 Speaker 2: no pipelines reach California, and the stupid Jones Act of 380 00:26:17,680 --> 00:26:21,359 Speaker 2: nineteen twenty requires that US built, US owned and US 381 00:26:21,400 --> 00:26:26,440 Speaker 2: operated vessels are necessary for coast wide trade, coastwise trade. 382 00:26:26,680 --> 00:26:30,480 Speaker 2: So if you want to ship that from Houston or 383 00:26:31,320 --> 00:26:33,200 Speaker 2: a port in Florida, or in the East Coast or 384 00:26:33,200 --> 00:26:37,479 Speaker 2: anywhere else out to California, it must be a US built, 385 00:26:37,800 --> 00:26:39,840 Speaker 2: US owned, US operated vessel. 386 00:26:40,400 --> 00:26:41,160 Speaker 3: It's absurd. 387 00:26:41,920 --> 00:26:47,280 Speaker 2: So there are barely any Jones Act compliant tankers left, 388 00:26:47,560 --> 00:26:51,080 Speaker 2: which again is a whole different issue, So shippers run 389 00:26:51,160 --> 00:26:56,000 Speaker 2: a ridiculous workaround. They route through the Bahamas, just to 390 00:26:56,080 --> 00:27:02,919 Speaker 2: comply that is pure government created a absurdity and the 391 00:27:03,000 --> 00:27:07,720 Speaker 2: environmentitary on top all of those extra tanker voyages across 392 00:27:07,760 --> 00:27:10,760 Speaker 2: the Pacific and the Atlantic, well, they have to burn 393 00:27:10,760 --> 00:27:13,719 Speaker 2: bunker fuel, and they're pumping out more CO two than 394 00:27:13,760 --> 00:27:15,960 Speaker 2: if we'd simply refine the stuff right here under strict 395 00:27:16,000 --> 00:27:23,400 Speaker 2: US standards. So Newsom's policies aren't reducing emissions, they're exporting them. Meanwhile, 396 00:27:23,440 --> 00:27:27,320 Speaker 2: California families, you're getting hammered at the pump on average 397 00:27:27,320 --> 00:27:30,240 Speaker 2: a dollar sixty seven cents more per gallon than the 398 00:27:30,320 --> 00:27:33,639 Speaker 2: national average. And that's not again, that's not a bug 399 00:27:34,320 --> 00:27:36,040 Speaker 2: to the governor. It might be a feature. He might 400 00:27:36,119 --> 00:27:39,720 Speaker 2: actually like that force price is higher enough and maybe 401 00:27:39,720 --> 00:27:42,480 Speaker 2: get high enough that maybe people will buy the evs 402 00:27:42,520 --> 00:27:45,680 Speaker 2: that he's mandating. Never mind if the state's renewable heavy 403 00:27:45,880 --> 00:27:49,120 Speaker 2: grid is already bucking in blackouts, those are a feature. 404 00:27:49,680 --> 00:27:52,840 Speaker 2: Blackouts are not a good in California. And then this 405 00:27:52,960 --> 00:27:57,280 Speaker 2: week Newsom's jetting off to London you find a big 406 00:27:57,320 --> 00:27:59,800 Speaker 2: climate deal with the United Kingdom. And then he took 407 00:27:59,800 --> 00:28:03,080 Speaker 2: a victory lapse saying California is the best place in 408 00:28:03,119 --> 00:28:07,000 Speaker 2: America to invest in a clean economy because we set 409 00:28:07,040 --> 00:28:12,879 Speaker 2: clear goals and we deliver. Is he saying that to 410 00:28:12,920 --> 00:28:15,680 Speaker 2: all the people that got laid off? Is he saying 411 00:28:15,680 --> 00:28:17,680 Speaker 2: that to people that paying average a dollar and sixty 412 00:28:17,680 --> 00:28:20,520 Speaker 2: seven cents a gallon higher than the national average to 413 00:28:20,520 --> 00:28:23,159 Speaker 2: fill their cars? And exactly what are you when you 414 00:28:23,200 --> 00:28:26,280 Speaker 2: say you deliver? What are you delivering? Well, I think 415 00:28:26,320 --> 00:28:30,639 Speaker 2: you're delivering sky high gas prices. You're delivering lost refinery jobs. 416 00:28:30,800 --> 00:28:33,560 Speaker 2: You're delivering a state that is increasingly dependent on foreign 417 00:28:33,600 --> 00:28:39,920 Speaker 2: supply chains that are vulnerable to energy global disruption. You're nuts, 418 00:28:40,520 --> 00:28:46,080 Speaker 2: But that's textbook California style energy absurdity. Just demonize and 419 00:28:46,120 --> 00:28:50,480 Speaker 2: regulate domestic dusty production into oblivion and in act shocked 420 00:28:50,920 --> 00:28:55,400 Speaker 2: when the market responds by uh, sally, give me that 421 00:28:55,480 --> 00:28:59,520 Speaker 2: number for U haul. Yeah, U haul, and the emissions 422 00:28:59,560 --> 00:29:02,440 Speaker 2: and the lost simply shift overseas. 423 00:29:03,960 --> 00:29:04,720 Speaker 3: It's just like. 424 00:29:04,800 --> 00:29:10,160 Speaker 2: Buying your ev Your emissions just shifted to where the 425 00:29:10,200 --> 00:29:14,160 Speaker 2: generating plan is and the poor working Californians they're the 426 00:29:14,200 --> 00:29:18,520 Speaker 2: ones paying the price, while the governor virtue signals, and 427 00:29:18,680 --> 00:29:22,720 Speaker 2: of course the Alexis point embarrasses himself and his constituents 428 00:29:22,760 --> 00:29:27,640 Speaker 2: on the world stage. It's a predictable, self inflicted disaster. 429 00:29:28,480 --> 00:29:32,440 Speaker 2: It's what you might refer to as a clown show, 430 00:29:33,040 --> 00:29:39,000 Speaker 2: an utter clown show. Panama, on the other hand, I'm 431 00:29:39,080 --> 00:29:43,400 Speaker 2: like California just delivered a massive win for Western shipping 432 00:29:43,440 --> 00:29:47,720 Speaker 2: interests and by extension, global energy security because guess what 433 00:29:47,760 --> 00:29:51,480 Speaker 2: they did. They kicked out a China linked Hong Kong 434 00:29:51,600 --> 00:29:55,840 Speaker 2: conglomerate out of the driver's seat at the Panama Canal's 435 00:29:55,920 --> 00:30:03,400 Speaker 2: most critical courts. In a move formalized just yesterday in 436 00:30:03,480 --> 00:30:07,880 Speaker 2: the country's official gazette, Panama nulled longstanding concessions held by 437 00:30:07,920 --> 00:30:11,880 Speaker 2: Panama Ports Company the PPC that's the subsidiary of c K. 438 00:30:12,040 --> 00:30:15,760 Speaker 2: Hutchins Holdings, and took direct control of the Balbo and 439 00:30:15,800 --> 00:30:21,360 Speaker 2: Crystipal terminals. President Molino ordered the contemporary occupation so the 440 00:30:21,520 --> 00:30:26,400 Speaker 2: National Maritime Authority could guarantee uninterrupted SAT and efficient operations. 441 00:30:26,640 --> 00:30:28,320 Speaker 3: Key facts. C K. 442 00:30:28,440 --> 00:30:33,960 Speaker 2: Hutchison, Hong Kong based is actually a Beijing proxy, had 443 00:30:34,040 --> 00:30:37,760 Speaker 2: run these strategic terminals for more than two decades under 444 00:30:37,840 --> 00:30:44,120 Speaker 2: contracts that the Panama Supreme Court ruled unconstitutional back in January. Balboa, 445 00:30:44,200 --> 00:30:46,680 Speaker 2: which is on the Pacific side, now goes to a 446 00:30:46,840 --> 00:30:50,520 Speaker 2: PM Terminals that's a unit of Danish giant ap mull 447 00:30:50,600 --> 00:30:53,040 Speaker 2: or Merse, which you may have seen that on the ships, 448 00:30:53,200 --> 00:30:55,800 Speaker 2: which is already deploying a new terminal operating system and 449 00:30:55,880 --> 00:30:59,680 Speaker 2: training the local workforce for up to eighteen months Crystal Ball. 450 00:31:00,040 --> 00:31:01,560 Speaker 3: On the Atlantic side, it was. 451 00:31:01,560 --> 00:31:05,320 Speaker 2: To til Panama, part of a Swiss based Mediterranean shipping company. 452 00:31:05,760 --> 00:31:09,400 Speaker 2: So Panama will now hold a competitive tender for long 453 00:31:09,480 --> 00:31:13,840 Speaker 2: term concessions within the next eighteen months. Can I just 454 00:31:13,920 --> 00:31:19,720 Speaker 2: say thank you President Trump. You know, before we get 455 00:31:19,760 --> 00:31:24,120 Speaker 2: to some of the other data points in the story, 456 00:31:24,240 --> 00:31:27,920 Speaker 2: it's worth taking time out to just remember. Remember when 457 00:31:27,960 --> 00:31:30,080 Speaker 2: everybody was screaming, Oh, Trump's going to take back to 458 00:31:30,120 --> 00:31:33,480 Speaker 2: Panama canal. Trump's going to do this h once again. 459 00:31:34,000 --> 00:31:36,880 Speaker 3: Part of the deal. I want to negotiate. 460 00:31:37,080 --> 00:31:40,560 Speaker 2: I want to pressure Panama to get China out of 461 00:31:40,600 --> 00:31:41,840 Speaker 2: that shipping lane. 462 00:31:41,920 --> 00:31:45,080 Speaker 3: I want to get China out of that canal. So 463 00:31:45,120 --> 00:31:45,680 Speaker 3: what do you do? 464 00:31:45,880 --> 00:31:50,160 Speaker 2: You start way out here, you hustle, your bustle, your bluster, 465 00:31:50,320 --> 00:31:53,560 Speaker 2: you do everything, and pretty soon you get exactly what 466 00:31:53,600 --> 00:31:59,600 Speaker 2: you want. China's gone. It's not just drama, it's not 467 00:31:59,840 --> 00:32:07,160 Speaker 2: just negotiations. It's geopolitics that has direct energy consequences. The 468 00:32:07,160 --> 00:32:12,440 Speaker 2: Panama Canal handles almost ten percent of global seaborne trade, 469 00:32:12,800 --> 00:32:17,080 Speaker 2: including a huge slice of our own liquid natural gas 470 00:32:17,120 --> 00:32:20,400 Speaker 2: exports that are headed to Asia and significant crude and 471 00:32:20,520 --> 00:32:21,680 Speaker 2: product tanker traffic. 472 00:32:22,080 --> 00:32:24,200 Speaker 3: So when Chinese influenced. 473 00:32:23,680 --> 00:32:26,720 Speaker 2: That on both ends of that choke point, every single 474 00:32:26,760 --> 00:32:30,480 Speaker 2: American energy producer, every energy consumer, which is every single 475 00:32:30,520 --> 00:32:34,040 Speaker 2: one of us, has reason to worry about leverage delays 476 00:32:34,160 --> 00:32:38,000 Speaker 2: or perhaps even worse, they decided to invade Taiwan. What 477 00:32:38,040 --> 00:32:41,360 Speaker 2: would they do if they decided to invade Taiwan shut 478 00:32:41,400 --> 00:32:46,800 Speaker 2: down the canal? Why, where's most of our naval operations 479 00:32:46,880 --> 00:32:52,320 Speaker 2: right now in the Middle East? And they would have 480 00:32:52,360 --> 00:32:54,360 Speaker 2: to go all not all of them go through the 481 00:32:54,400 --> 00:32:59,560 Speaker 2: canal obviously, but a lot of the support stuff right 482 00:32:59,560 --> 00:33:03,680 Speaker 2: through the can all of the energy right not all, 483 00:33:03,760 --> 00:33:07,360 Speaker 2: but most of the energy right through the canal. So 484 00:33:07,480 --> 00:33:12,000 Speaker 2: Trump rightly called out Beijing's creepy control last year, and 485 00:33:12,040 --> 00:33:15,720 Speaker 2: in Panama, finding themselves caught in the middle, finally listened 486 00:33:15,720 --> 00:33:19,640 Speaker 2: to its own Supreme Court and instead decided to choose 487 00:33:19,840 --> 00:33:24,280 Speaker 2: somewhat reliable European operators over the alternative MAHREK and MSc. 488 00:33:24,440 --> 00:33:26,080 Speaker 3: They may not be American. 489 00:33:25,640 --> 00:33:29,600 Speaker 2: Companies, but they're not answering the Chinese Communist Party, and 490 00:33:29,640 --> 00:33:33,480 Speaker 2: that's a net positive for stable canal transits that will 491 00:33:33,480 --> 00:33:37,440 Speaker 2: give us predictable shipping rates, lower risk to US energy supplies. 492 00:33:37,800 --> 00:33:42,400 Speaker 2: And of course Beijing is predictably furious and they will 493 00:33:42,680 --> 00:33:47,160 Speaker 2: they'll threaten me economic retaliation. But you know what, Panama 494 00:33:47,320 --> 00:33:51,479 Speaker 2: corrected course, Good for them, because the canal is now safer, 495 00:33:51,760 --> 00:33:55,120 Speaker 2: trade is more secure, Our energy exporters can breathe a 496 00:33:55,160 --> 00:33:59,280 Speaker 2: little easier. And Trump tonight how to take credit for it.