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Speaker 1: Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keen with

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Speaker 1: David Gura. Daily we bring you insight from the best

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Speaker 1: of economics, finance, investment, and international relations. Find Bloomberg Surveillance

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Speaker 1: on Apple Podcasts, SoundCloud, Bloomberg dot Com, and of course

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Speaker 1: on the Bloomberg harm band holds here from UniCredit. He's

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Speaker 1: in our Bloomberg eleven three studios in New York and

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Speaker 1: harm Let me just have you react to uh this broadly?

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Speaker 1: The geopolitical risk seems to continue here. Of course, we've

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Speaker 1: had a number of these tests here over these last

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Speaker 1: a few months. How does it how does it complicate

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Speaker 1: the economic picture here in the US? Well, look, I

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Speaker 1: send out I send out in brief note yesterday talking

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Speaker 1: about the tough time nine that the busy four that

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Speaker 1: US lawmakers um is laying ahead of US law makers,

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Speaker 1: And I mentioned that probably the dead ceiling is the

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Speaker 1: biggest risk. And I was smart enough to add a

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Speaker 1: by sentence and in addition to geopolitical risk and not

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Speaker 1: knowing obviously what happens overnight, but yes, um, it certainly

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Speaker 1: complicates UM. This It further fills up the timeline that

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Speaker 1: Congress already has and certainly President Trump has a lot

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Speaker 1: to do to meet all these these deadlines. We're talking

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Speaker 1: about shut down, dead ceiling and and and many other

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Speaker 1: things that that the text reform and after negotiation, all

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Speaker 1: the stuff that is really on the top of investors minds,

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Speaker 1: and they are they are closely following what's going on

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Speaker 1: in DC. And then you know, you have the horrific

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Speaker 1: hurricane um and then you have this geopolitical stuff going on.

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Speaker 1: So I think most of all um it it is.

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Speaker 1: Its further complicates that the timeline for for lawmakers in Washington,

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Speaker 1: and of course we hope that there's no further escaletion.

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Speaker 1: It strikes me in a very similar position. You're obviously

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Speaker 1: this this hurricane is is a different variable, but you

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Speaker 1: have a White House was keen to embrace and and

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Speaker 1: push forward with tax reform. This week, the President traveling

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Speaker 1: to Missouri to deliver what's been built as a big

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Speaker 1: speech on tax reform, trying to make that the paramount

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Speaker 1: issue here Yet again, uh and and News intercedes, what's

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Speaker 1: what's your outlook for tax reform now? As we await

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Speaker 1: a statement more details from this group called the Big

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Speaker 1: Six to representative from the House the Senate and administration

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Speaker 1: as well. What's your sense of the timeline for that

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Speaker 1: now or if if you think anything is going to

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Speaker 1: be be done altogether. Yeah, we took this text cut

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Speaker 1: stimulus off the table actually a couple of months ago

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Speaker 1: because it just looked too complicated and the interest the

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Speaker 1: positions are too far apart um for in our of

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Speaker 1: you for this administration to get anything meaningful and done right.

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Speaker 1: And we know that for for for text reform, that

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Speaker 1: that actually increased the deficit over sometimes it does not

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Speaker 1: meet the bird rule. You need democratic support, which you

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Speaker 1: mean not really not on the cards to say the least.

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Speaker 1: So so you wouldn't need to do anything that is

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Speaker 1: either revenue neutral or limited in time. And and I

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Speaker 1: don't think anybody really wants it. It's not that helpful

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Speaker 1: on the corporate side. So at the end of the day,

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Speaker 1: we we thought our baseline is that we are not

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Speaker 1: getting no no text reform done. Good morning in terrific

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Speaker 1: news for Mike Allen, just publishing with excess with two

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Speaker 1: surveillance guests that we speak to Off and Richard Hass

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Speaker 1: When we went back and forth with last night, have

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Speaker 1: counsel on Foreign Relations and also Ian Bremer of you

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Speaker 1: raised your group, We'll give you updates on that and

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Speaker 1: Korea throughout the show. I look harm at where we are.

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Speaker 1: What's your statistic for g d P out twelve months?

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Speaker 1: You've been hugely wonderful on a more tempered view of

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Speaker 1: economic growth, You've been dead on. Have you changed that

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Speaker 1: being dead on? I don't know dead on, but the

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Speaker 1: vectors in the right direction. Sorry, Now I think we

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Speaker 1: are we are, we are gradually slowing. So next end

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Speaker 1: of next year we are we are ending up at

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Speaker 1: about two percent two point zero. Yeah, and and for

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Speaker 1: the second half of this year I have to be

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Speaker 1: a precise two points three percent um, so I think

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Speaker 1: we still we have some momentum we have been seeing this.

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Speaker 1: Consumer spending looks good. Actually, as for a change capin well,

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Speaker 1: consumer spending looks good. Yeah, where's the Where's what's not

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Speaker 1: there that gets you to a sub three percent sup

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Speaker 1: two and a half statistic? How do you get there

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Speaker 1: to be low? To to be low two and a half? No,

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Speaker 1: I think right now what we're seeing temporary strengths. I

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Speaker 1: think it's catch up on the energy side and something

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Speaker 1: else on the on the in capex spending, So that

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Speaker 1: is that looks good right now. I don't think it lasts.

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Speaker 1: I think consumption growth has been a bit too strong

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Speaker 1: giving the fundamental so I think there was a bit

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Speaker 1: of a technical rebound. So I think with UM, with

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Speaker 1: employment gainst moderating UM, inflation I think will start to

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Speaker 1: rise again a little bit stronger, so we'll accelerate. So

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Speaker 1: that takes purchasing power away. So I think over time

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Speaker 1: grocerates will settle towards something which is potential. Actually two

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Speaker 1: percent is probably still a little bit higher than PRETENTI

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Speaker 1: rows in the US bundles with US with unit credit

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Speaker 1: this morning, Lots to continue, lots to talk about with

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Speaker 1: Dr Bundles home. I want to I think it's so important.

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Speaker 1: UH discussed on radio, what we discussed on television. We

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Speaker 1: are advantaged by you being on both our platforms today.

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Speaker 1: Which is your outlier call and three point zero percent

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Speaker 1: unemployment rate is that morning in America? Is a three

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Speaker 1: percent unemployment rate? Mr Reagan's picture of everything right for

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Speaker 1: this nation? Well, as you said, we talked about it

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Speaker 1: on on TV, and then we also talked about the

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Speaker 1: quality of the jobs, and so I said, it's it's

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Speaker 1: not that easy to dismiss all these job gains as

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Speaker 1: being low quality jobs, right, So that is not the case.

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Speaker 1: So we have had also the creation of very many,

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Speaker 1: very high quality jobs, very well paid. Was missing is

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Speaker 1: the middle class. But again some of the jobs we

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Speaker 1: are not so well paid. And I think the problem

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Speaker 1: in the US is still rising inequality. So so the

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Speaker 1: ploint rate is one important measure of a country as

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Speaker 1: well being, but it does not give us the whole picture.

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Speaker 1: So I think I think the despite of the falling

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Speaker 1: unemployment rate, well, while the unemployment rate is falling, we

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Speaker 1: still have growing inequality. And I think that is really

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Speaker 1: the big, the big problem of this country, and not

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Speaker 1: only of the US. But if you look at all

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Speaker 1: these inequality measures, the US is really ahead of the pack. There.

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Speaker 1: The rate is only one part of that picture. We

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Speaker 1: get an update on that at the end of the week.

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Speaker 1: What are you expecting from the Labor Department on Friday? Well,

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Speaker 1: we have parro gains. I think we should not be

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Speaker 1: surprised to see some slowing because the last two months

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Speaker 1: have shown payro gains north of two or twenty thousand,

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Speaker 1: which was very strong. I think fundamentally too strong given

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Speaker 1: where the economy is right now, I think cruising speed

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Speaker 1: is something like hundred seventy five thousand, So I think

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Speaker 1: we see something in the in the vicinity of a

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Speaker 1: hundred fifties thousand, so nothing two weeks. But but we

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Speaker 1: also know that August has traditionally been a little bit

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Speaker 1: of a of a week month for for payroll gains,

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Speaker 1: and sometimes it has been revised up further. I remember

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Speaker 1: a couple of years ago the US print for peril

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Speaker 1: gains in August was zero, and that was a big shock.

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Speaker 1: I think in the meantime it has been revised up

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Speaker 1: to a hundred fifty thousand, that zero. But but yeah,

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Speaker 1: so some some slowing, but it's mostly a technical payback.

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Speaker 1: If you want for for two strong gains in June

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Speaker 1: and July, and the unemployment rate I have it right

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Speaker 1: now stabilizing at four points threep. Did you have any

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Speaker 1: wisdom on pricing power? One of the themes of early

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Speaker 1: summer was corporations really running up again. It was something

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Speaker 1: we saw fifteen years ago, which is an inability to

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Speaker 1: raise prices. Yeah, I think, um no, I think more broadly,

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Speaker 1: the lack of wage gains, the lack of higher inflation

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Speaker 1: rates has been one of the big puzzles that we

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Speaker 1: have been facing of us several months or even even years.

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Speaker 1: And certain international competitiveness is a big problem for four companies.

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Speaker 1: Um competition including online competition, technological progress and all that stuff,

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Speaker 1: so that that makes it harder for companies to to

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Speaker 1: raise prices. I mean the best or a good example

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Speaker 1: we just had yesterday was a great big grocery store.

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Speaker 1: Price is quite dramatic. How do you know? That's right

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Speaker 1: where I wanted to go the page to the New

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Speaker 1: York Post. Good morning everyone worldwide. There is a store

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Speaker 1: in America called Whole Foods, which used to be as

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Speaker 1: Joe paycheck. Yeah yeah, not that I or David you

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Speaker 1: have ever darkened the door. They slashed, David, I say,

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Speaker 1: slashed five ounce organic baby kale. You were paying in

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Speaker 1: Brooklyn three for this puppy. The new price is three

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Speaker 1: forty nine. I mean, I was just ail from New Jersey.

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Speaker 1: Can look at a pay reduction right there alone within

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Speaker 1: the girl House. The competitors at a dollar thirty nine

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Speaker 1: one Joe Trader Trader Joe's a fifty fifty cent reduction

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Speaker 1: in kale. It Whole Foods it's gonna affect small farmers

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Speaker 1: like me trying to make a little it's unbelievable salmon,

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Speaker 1: which frankly full disclosure, I buy a lot of well,

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Speaker 1: we try to buy the fancy stuff on sale, but

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Speaker 1: it's only on sale like Christmas, you know it's And

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Speaker 1: then avocados is the one that everybody sat up. We

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Speaker 1: had a guacamole frenzy at the house to fifty. I

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Speaker 1: refused to buy a two fifty avocado that's on American

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Speaker 1: or on Mexican. They're now a dollar forty nine. Thank you,

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Speaker 1: Mr Bezos? Did you are you loaded up on kale?

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Speaker 1: Loaded up? We've been shopping on Sunday before all this happened.

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Speaker 1: That's exactly what the keyhouse did. Anyways, we say good

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Speaker 1: morning to Mr Bezos. Hope he's listening with Amazon and

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Speaker 1: the good people. Whole Foods with price reductions futures negative fourteen,

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Speaker 1: down futures negative ninety worldwide. This is Bloomberg joining us

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Speaker 1: now a gentleman who I think over a cup of

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Speaker 1: coffee in August cup of coffee, David Gurrow, we could

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Speaker 1: have like a four hour conversation and not even get

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Speaker 1: to Aaron judge sitting on the bench. L Schlastein is

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Speaker 1: president and chief executive officer, has to put up with

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Speaker 1: Red Sox fan Roger Alman at ever Core and he

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Speaker 1: joins US. Now. I want to get to the big

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Speaker 1: picture at the top of the hour. Right now, my

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Speaker 1: fed M I F E D which is a London thing,

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Speaker 1: but I don't buy it for a minute. They want

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Speaker 1: to they want to change the way brokerage firms are

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Speaker 1: compensated for research services. Every way I read it, it's

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Speaker 1: a massive pay reduction. Can it work in London and

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Speaker 1: will it migrate across the Atlantic Ocean? Well, I think

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Speaker 1: what they're clearly trying to do trying is to have

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Speaker 1: more transparency in what UH the managers of investors money

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Speaker 1: is being spent on and UH. I think ultimately the

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Speaker 1: the hidden goal of that is probably to reduce a

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Speaker 1: little bit the amount spent on research and I UH

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Speaker 1: it's clearly going to happen UH in Europe. I think

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Speaker 1: it will h Oo's into the US market, which will

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Speaker 1: it'll affect some of the larger global UH firms. You know,

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Speaker 1: the firms like my old firm, black Rock and UH

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Speaker 1: Capital Group and Fidelity that have relatively seamless global equity

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Speaker 1: uh management franchises, and they're not gonna want to run

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Speaker 1: their business one way and the ross and another way.

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Speaker 1: We're being so polite, you're killing me. Is this a

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Speaker 1: bonus forever core in firms like you? You hate the

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Speaker 1: word boutique, but you know the smaller firms, the huge

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Speaker 1: success you and Roger have had. Is this a flight

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Speaker 1: of intellectual component oil to you? Guys? No question that

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Speaker 1: the intellectual capital is fleeing independent firms. But well, my

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Speaker 1: fed in this, this pseudo transparency leading to pay reductions

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Speaker 1: for intellect? Is this the best thing that's happened to

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Speaker 1: you since the surge by the Boston red Sox. I

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Speaker 1: think they're they're two effects. One is positive, one is negative.

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Speaker 1: I think the positive one is that high quality intellectual

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Speaker 1: capital will be get a higher market share of the

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Speaker 1: intellectual capital uh compensation pool. Uh. There's a whole range

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Speaker 1: of firms out there that say, well, we have to

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Speaker 1: have an analyst in you know, biotech, uh, and that

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Speaker 1: you know formerly have to have who was the number

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Speaker 1: person in that? No, but he's gonna pay for that.

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Speaker 1: This is so important, folks, and what a privilege day

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Speaker 1: Mr Slastein here with us today, who actually gets the

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Speaker 1: resume across the desk and he goes, you're kidding, We're

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Speaker 1: not paying him that anyways, Ralph, I'm gonna tear up here.

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Speaker 1: It's so emotional. We'll be back with David Gura, and

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Speaker 1: there'sn't link one way to get back with David Gura

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Speaker 1: and has to listen to Peaches and her David. It

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Speaker 1: has to be about politics. And one of the interesting

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Speaker 1: things of Mr Fostin is a tour of duty a

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Speaker 1: few years back with a president named Carter. Of course,

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Speaker 1: his work with black Rock and then with Evercre has

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Speaker 1: worked with his Dennis and University over the years as well.

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Speaker 1: I have to ask about the future of your Democratic Party.

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Speaker 1: Can they maintain the status quo for eighteen and for

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Speaker 1: two thousand twenty or do they need to is a

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Speaker 1: general statement moved to the center. Is it a time

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Speaker 1: for political triage or is it steady as she goes

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Speaker 1: for the Democratic Party? Uh? Well, uh, I hope it's

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Speaker 1: not steady as she goes. I think the right now

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Speaker 1: you have a highly united Democratic Party, but it's united

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Speaker 1: by one thing against Trump. But that was true the

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Speaker 1: Republicans when President Obama was exactly. So that's not a

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Speaker 1: that's not a unifying theme, that's not a policy that

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Speaker 1: people can rally around it. My own personal view is

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Speaker 1: that we as a Democratic party, it's the it's not

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Speaker 1: as much about the left in the center. It's about

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Speaker 1: being about economic growth for everyone in the country and

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Speaker 1: not as uh segmented and and trying to touch each constituency.

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Speaker 1: So I think that naturally does move you to the center.

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Speaker 1: But there's a terrific new book written by a Columbia professor,

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Speaker 1: Lilia about, uh, you know, the need for the liberals

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Speaker 1: or democratically inclined people to focus on the betterment of all,

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Speaker 1: not the betterment of a whole bunch of individual groups.

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Speaker 1: And I think that's a really important theme. Maybe that

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Speaker 1: matters and plays well in Wisconsin and Michigan. Good morning

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Speaker 1: on a serious sex tement Channel one nineteen in key states,

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Speaker 1: as they say, David, David, you're better at this than

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Speaker 1: I am. How do you make sense of what's happening

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Speaker 1: in Washington right now? How stark? How big is that

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Speaker 1: divide between between New York and and d C. And

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Speaker 1: when you look at the regulatory landscape, But in specific.

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Speaker 1: We've got a fairly thick tone from the Treasury Department

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Speaker 1: on banking regulation what they'd like to do to to

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Speaker 1: change it. Do you have a sense of how that

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Speaker 1: landscape is changing. Well, I I think the regulatory world

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Speaker 1: tends to swing back and forth, and it always over swings,

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Speaker 1: and you know, I would argue that some of the

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Speaker 1: regulation then came about, and Dodd Frank is probably an

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Speaker 1: overswing uh too much micro management. Uh. The really important

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Speaker 1: things in Dodd Frank are much higher capital standards UH,

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Speaker 1: and much higher liquidity and lower leverage. That's what matters.

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Speaker 1: And you can take away a lot of things like

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Speaker 1: vulgar and all other stuff. As long as you keep

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Speaker 1: those things, the system will be a whole lot safer. Uh.

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Speaker 1: The rest of Washington. You know, we're gonna learn a

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Speaker 1: lot in the next two or three months. We've got

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Speaker 1: that ceiling, we've got the budget, We've got trade discussions

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Speaker 1: with Mexico and Canada and with China, and I think

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Speaker 1: over the next two or three months we're gonna learn

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Speaker 1: whether we have a functioning reasonably stable, effective governance or

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Speaker 1: whether we have something that's a little less than that.

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Speaker 1: Do you think we have a tendency to overplay the

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Speaker 1: role that Washington plays in the economy. Right now, we're

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Speaker 1: fascinated by this new Washington for better or worse? Um

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Speaker 1: do we do? We positive it has more influence than

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Speaker 1: it really does. I actually I would say that's not true, okay.

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Speaker 1: And the reason is if you look at let's take

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Speaker 1: the stock market. The stock market is the value of

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Speaker 1: a stock is a function of its earnings, and it's multiple, okay.

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Speaker 1: Multiples are a function of confidence. So if you take

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Speaker 1: away confidence in the effectiveness of our government, that has

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Speaker 1: a negative effect and not a small one on the

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Speaker 1: valuation of our markets. That follows through to the economy.

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Speaker 1: And we saw that. You know, if you go back

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Speaker 1: over the last five years, what are the big you

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Speaker 1: know down drafts and equities, house business doing in Washington?

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Speaker 1: You're one of the you know, fancy guys in business

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Speaker 1: that goes down to Washington. I don't know, we're not

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Speaker 1: right now, you don't, but but the turmoil has been extraordinary.

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Speaker 1: Let's begin with Mr Cohen. I mean, you're a great watcher, Walster.

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Speaker 1: You've known Mr Cohen's work at Goldman Sex for years.

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Speaker 1: Can a non economist run the federal reserve system is

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Speaker 1: is rumored. Maybe where was he the frisky oyster in

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Speaker 1: the hand, wasn't the frisky oyster? You've been to them?

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Speaker 1: You want all the cornerbars the oyster, don't you know?

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Speaker 1: Don't I'm sorry? Can he run the Fed? Uh? Sure?

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Speaker 1: Look the the what the FED chairman has to be?

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Speaker 1: He does not have to be or she doesn't have

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Speaker 1: to be the world's greatest economist or the world's greatest pregnancy.

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Speaker 1: Would say it's an advantage. It could be an advantage.

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Speaker 1: But you know there there are plenty of really smart people,

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Speaker 1: uh with deep economic backgrounds on the Open Market Committee

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Speaker 1: and also the staff of the Fed. Uh. Really what

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Speaker 1: that person has to be as someone who is uh

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Speaker 1: measured and understands the balance between uh, you know, growth

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Speaker 1: and inflation and employment and an inflation. And I don't

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Speaker 1: think you need to be an economist to do that,

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Speaker 1: to be honest, I think if you've got a long

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Speaker 1: experience in financial markets, you can do that job as well.

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Speaker 1: I was gonna ask you yesterday if you were going

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Speaker 1: to run uber, but we didn't. We didn't. We didn't

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Speaker 1: get there. I mean, Mr, you know, you look at

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Speaker 1: some of the corporate going on, the people out the door,

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Speaker 1: people in the door or that. What does it say

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Speaker 1: about the tumult and the CEO of the CEO? Statistically,

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Speaker 1: the life of CEOs in their seat has shortened fair amount. Uh,

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Speaker 1: you know, it's now down that I think fiber I

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Speaker 1: saw you check in your phone. Well I'm up till

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Speaker 1: eight and a half, so I guess I'm an ALP.

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Speaker 1: But look they're uh, the tolerance of investors uh is shorter.

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Speaker 1: The you know, the activists have played a role in that.

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Speaker 1: And uh, by the way, some of these things are constructive.

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Speaker 1: The the tolerance on the part of boards uh for

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Speaker 1: uh you know, behavior that is not proper by any

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Speaker 1: measure has declined. And I actually think that's a good thing.

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Speaker 1: We should have a high standard of behavior for our

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Speaker 1: corporate executives, whether it's respect for uh, you know, various genders,

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Speaker 1: or sexual preferences, or religious orientations or racial orientation. And

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Speaker 1: you know, I think the the steps that were taken

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Speaker 1: by a number of corporate executives over the last week

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Speaker 1: or so to stand up and and uh speak very

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Speaker 1: strongly about that is really important. How heavy a burden

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Speaker 1: is there on the bank executive these days? I think

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Speaker 1: of how much we associate Lloyd blank Find with Goldman Sax,

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Speaker 1: Jamie Diamond with a JP Morgan, you with ever Corps.

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Speaker 1: Does one person have too much determinism at these banks

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Speaker 1: right now? Do you think is that association a bad thing?

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Speaker 1: How do you see your role as as the leader

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Speaker 1: of a bank? Well, you know, my job is quite

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Speaker 1: a bit different from uh, Jamie and Lloyd's job, and

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Speaker 1: they do both a great job at what they do. Uh.

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Speaker 1: They have to worry. They are stewards for literally tens

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Speaker 1: of billions, in Jamie's case, hundreds of billions of dollars

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Speaker 1: of capital. So you've got to worry every day that

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Speaker 1: will some whale in London do something that I'm not

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Speaker 1: aware of and embarrass the firm. Uh. You know my case.

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Speaker 1: You know, I run a really talented basketball team. Uh,

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Speaker 1: and I got to make sure that they play well together. Uh,

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Speaker 1: and that they the stars are all happy. But I'm not.

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Speaker 1: I don't wake up at two in the morning wondering

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Speaker 1: what some mammal has done. Surface. Yes, well, thank you

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Speaker 1: so much. Real with his president, he's the chief executive

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Speaker 1: officer of ever Court, David Gern Tom Keane. We're looking

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Speaker 1: at images. Um, I have to turn around in the

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Speaker 1: surveillance throne. It's like the throne and Game of Thrones.

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Speaker 1: I sit in, but it's a little hard to turn

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Speaker 1: around tall. Yeah, metal bleak, and there is a bleak

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Speaker 1: day in Washington. David Girl. This is the rain. It

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Speaker 1: touches New York. But you really wonder does the storm

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Speaker 1: of Texas touch shop to a little bit of rain

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Speaker 1: in Washington as well. I think it's bound to happen

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Speaker 1: from what I was hearing the earlier this morning. But

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Speaker 1: the President preparing to head to Corpus Christy at Texas.

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Speaker 1: We're looking at air Force one there on the tarmac

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Speaker 1: at Andrews Air Force Base. He and the First Lady

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Speaker 1: headed to Texas in just a few minutes, and they'll

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Speaker 1: be both in Corpus Christine Austin. Today from Maine, we

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Speaker 1: heard from the younger President Bush UH and President Senior

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Speaker 1: I think was involved as well, about the grit of

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Speaker 1: Texas UH United Texas during Hurricane Harvey. David Girl, why

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Speaker 1: don't you bring in the esteem congressman from the thirty

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Speaker 1: second Congressional District. This is somewhere in the vicinity of

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Speaker 1: most people rooting for the Dallas Cowboys. I believe the

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Speaker 1: case in that district, and I believe he can count.

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Speaker 1: President Bush is one of his constituents and Congressman Texas

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Speaker 1: with the House of Rules Committee as well joints on

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Speaker 1: our phone's cashman sessions. Let's just start with what you've

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Speaker 1: been hearing. UH. You're you're a little ways away from

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Speaker 1: where this this storm has been. It's been hanging over Houston,

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Speaker 1: it's headed out to the Gulf. But what have you

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Speaker 1: heard from friends and family in Texas about the impact

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Speaker 1: of the storm thus far? And what have you been

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Speaker 1: communicating to your colleagues who don't live in Texas about

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Speaker 1: what needs to happen there. Yeah, yeah, you you ask

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Speaker 1: a great question, and we can roll back the tape

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Speaker 1: on the things that happened with Katrina and Sandy. There

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Speaker 1: are there are similarities of both of those. One a

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Speaker 1: big package that's going to have to be prepared, where

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Speaker 1: Congress is going to have to be prepared for an

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Speaker 1: initial package. We're going to have to make sure the

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Speaker 1: second and third package or whatever the long term is

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Speaker 1: UH is properly tailored only to the devastation of of

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Speaker 1: this product of Harvey. In the shorter term. What we're

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Speaker 1: talking about now is how do we match up schools

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Speaker 1: to bring students and parents at least one parent up here.

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Speaker 1: How do we look take a look at what typhoid

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Speaker 1: and technis and diarrhea and the the medical outputs of this.

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Speaker 1: How do we take care of elderly people and babies,

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Speaker 1: babies that were in the hospital, hospitals that can no

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Speaker 1: longer support surgeries. How do we move those surgeries to Dallas, Austin,

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Speaker 1: San Antonio. How do we manage the problems where we

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Speaker 1: have seniors who are in in assisted living, who are

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Speaker 1: in beds, and how do we move them? How do

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Speaker 1: we move people from this terrible scene which is not

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Speaker 1: going to go away, mud debris, the black mold to follow, humidity, misery.

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Speaker 1: Where this is a long term effort. It is not

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Speaker 1: a small downtown area. It is millions of people and

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Speaker 1: it's still raining and a by you there is waiting

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Speaker 1: to be inundated. Fortunately that the earth and a damn

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Speaker 1: is holding, the levy is holding God is great. But

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Speaker 1: we're going to work together in God's name because we

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Speaker 1: believe as Texans in each other. So long term effort,

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Speaker 1: this is not this is months of bringing our children

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Speaker 1: to back to safety, bringing our community back where we

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Speaker 1: need to be. So we got a long way to go. Couson,

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Speaker 1: We're watching Marine one land at Andrew's Air Force Base.

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Speaker 1: The President going to disembark from that helicopter just a

429
00:26:35,000 --> 00:26:36,920
Speaker 1: moment to get onto Air Force one to head down

430
00:26:37,359 --> 00:26:40,040
Speaker 1: to Texas. A lot has been made of how unprecedented

431
00:26:40,040 --> 00:26:42,359
Speaker 1: this storm is. It's been called variously a hundred years storm,

432
00:26:42,359 --> 00:26:45,680
Speaker 1: a five year storm. What have you learned a thousand years?

433
00:26:45,680 --> 00:26:48,639
Speaker 1: And what have you learned in Congress from Superstorm Sandy,

434
00:26:48,720 --> 00:26:51,920
Speaker 1: from Hurricane Katrina about how to respond to disasters like this?

435
00:26:52,040 --> 00:26:54,640
Speaker 1: Have we gotten better? Has the federal government gotten better

436
00:26:54,960 --> 00:26:59,120
Speaker 1: at responding to disasters? I think we have gotten better.

437
00:26:59,200 --> 00:27:02,320
Speaker 1: What we have gotten better at is how do we

438
00:27:02,400 --> 00:27:04,600
Speaker 1: fund in? What all do we throw in? And who

439
00:27:04,800 --> 00:27:08,959
Speaker 1: uses this as an excuse for things? I will guarantee

440
00:27:08,960 --> 00:27:13,240
Speaker 1: you the Texas delegation is not going to allow that

441
00:27:13,440 --> 00:27:16,200
Speaker 1: to happen this time. We have had some We've got

442
00:27:16,240 --> 00:27:19,760
Speaker 1: some pretty sharp pencils. We've got people who who see

443
00:27:19,800 --> 00:27:22,280
Speaker 1: this for what it is. But you just asked the

444
00:27:22,400 --> 00:27:27,359
Speaker 1: right question. Much of the nation's infrastructure from energy is

445
00:27:27,440 --> 00:27:33,000
Speaker 1: located here, much of the infrastructure that handles pipelines. It

446
00:27:33,200 --> 00:27:36,359
Speaker 1: is a big deal. You've been doing this. I I

447
00:27:36,359 --> 00:27:38,439
Speaker 1: don't want to remind you of this conre what You've

448
00:27:38,480 --> 00:27:41,000
Speaker 1: been doing this for twenty years. I mean, it's it's

449
00:27:41,080 --> 00:27:43,919
Speaker 1: it's it's been a long time, to say the least.

450
00:27:44,119 --> 00:27:46,800
Speaker 1: A number of the research knows we have from Greg Villier,

451
00:27:46,960 --> 00:27:50,080
Speaker 1: from Mike Gallen over at Access and others is that

452
00:27:50,280 --> 00:27:56,960
Speaker 1: this horrific disaster provides you Republicans, Democrats and all in

453
00:27:57,040 --> 00:28:02,920
Speaker 1: Washington for convenient cover. Does the debt worries, the ceiling worries,

454
00:28:02,960 --> 00:28:09,440
Speaker 1: the shutdown worries, do they evaporate with this deluge called Harvey.

455
00:28:09,920 --> 00:28:13,800
Speaker 1: I think they do. I think it focuses us. Let

456
00:28:13,880 --> 00:28:15,920
Speaker 1: me see if I can go the most immediate thing

457
00:28:16,359 --> 00:28:20,800
Speaker 1: that I have been pressing. The President needs to finalize

458
00:28:20,880 --> 00:28:23,680
Speaker 1: every one of his slots that he needs to run

459
00:28:23,720 --> 00:28:28,320
Speaker 1: this government, person after person after person. Thank goodness, we're

460
00:28:28,359 --> 00:28:33,080
Speaker 1: not complaining, but the people we're dealing with, our acting people,

461
00:28:33,359 --> 00:28:36,320
Speaker 1: they are not in control. They're not going to be

462
00:28:36,359 --> 00:28:38,040
Speaker 1: in the long term. They're they're not going to be

463
00:28:38,080 --> 00:28:41,560
Speaker 1: held accountable. And the Senate needs to approve every one

464
00:28:41,560 --> 00:28:44,720
Speaker 1: of these people unless there's a reason why not. Obviously,

465
00:28:45,560 --> 00:28:48,800
Speaker 1: but we need to weed this government better be prepared

466
00:28:49,400 --> 00:28:55,600
Speaker 1: for a long, long, big problem with decision makers. Uh. Secondly,

467
00:28:56,240 --> 00:28:59,360
Speaker 1: where are we going to move We are going to

468
00:28:59,520 --> 00:29:02,080
Speaker 1: have to make that limit. We are going to have

469
00:29:02,160 --> 00:29:03,880
Speaker 1: to do things, but it's now going to be on

470
00:29:03,920 --> 00:29:07,080
Speaker 1: a priority. We're not We're not just gonna say we're

471
00:29:07,080 --> 00:29:09,720
Speaker 1: gonna add fifty billion dollars and it does. It didn't

472
00:29:09,760 --> 00:29:12,800
Speaker 1: count Carson account the time we got left with you.

473
00:29:12,840 --> 00:29:14,880
Speaker 1: I want David Gore to jump in here. But as

474
00:29:14,920 --> 00:29:20,920
Speaker 1: a general question, is the support of traditional Republicans is

475
00:29:21,280 --> 00:29:24,720
Speaker 1: have they lost their support of Mr? Trump? Is the

476
00:29:24,800 --> 00:29:29,040
Speaker 1: president still have a support of Bush Republicans in the

477
00:29:29,080 --> 00:29:35,400
Speaker 1: thirty second district? Oh, that's that's a valid question. Can

478
00:29:35,440 --> 00:29:37,320
Speaker 1: we get a valid answer right now? I mean, I

479
00:29:37,360 --> 00:29:40,240
Speaker 1: know you, I mean you know, I know you're focusing

480
00:29:40,240 --> 00:29:45,880
Speaker 1: on Southwestern preseason. But come on, well, so, so let's

481
00:29:45,880 --> 00:29:49,760
Speaker 1: so let's let's put this into a perspective. What we

482
00:29:49,880 --> 00:29:53,240
Speaker 1: are is I so here's what I believe. I know

483
00:29:53,440 --> 00:29:58,560
Speaker 1: Jerry Jones, so I know Donald Trump and Jerry Jones

484
00:29:58,760 --> 00:30:01,760
Speaker 1: for several years has wandered in the dark and tried

485
00:30:01,800 --> 00:30:06,080
Speaker 1: to beat things that was not his his suit. Jerry

486
00:30:06,160 --> 00:30:09,240
Speaker 1: Jones and Donald Trump are the same person. And Jerry

487
00:30:09,280 --> 00:30:13,280
Speaker 1: Jones quit trying to run the football team and became

488
00:30:13,480 --> 00:30:16,200
Speaker 1: what he was comfortable with and what he made friends with.

489
00:30:16,520 --> 00:30:19,040
Speaker 1: He became the NFL Man of the Year and has

490
00:30:19,400 --> 00:30:24,120
Speaker 1: changed the NFL. Donald Trump needs to figure out where

491
00:30:24,160 --> 00:30:27,840
Speaker 1: his talents best talents are and then he will lend

492
00:30:27,880 --> 00:30:31,520
Speaker 1: them to them. And so really Texans are in in

493
00:30:31,520 --> 00:30:36,720
Speaker 1: in Dallas, Texas very hopeful that the president very quickly

494
00:30:36,880 --> 00:30:39,080
Speaker 1: is going to get his team around him, which he

495
00:30:39,120 --> 00:30:41,920
Speaker 1: does not have. You don't start a bar room fight

496
00:30:42,000 --> 00:30:45,040
Speaker 1: until you got your team there. He did, he is

497
00:30:45,200 --> 00:30:50,160
Speaker 1: further along in certain elements that are not favorable to him.

498
00:30:50,520 --> 00:30:53,240
Speaker 1: So where are most people down here? We need the

499
00:30:53,320 --> 00:30:55,840
Speaker 1: presidents and going to perform well. We want to make

500
00:30:55,880 --> 00:30:58,680
Speaker 1: America great. But he's got to get his team and

501
00:30:58,760 --> 00:31:01,880
Speaker 1: he's got to do like Jerry Jones, do the things

502
00:31:01,880 --> 00:31:04,880
Speaker 1: that he's comfortable with and let his talent show. That's

503
00:31:04,880 --> 00:31:07,320
Speaker 1: where we are, David. Do you see how every time

504
00:31:07,320 --> 00:31:10,520
Speaker 1: we talked to a damn congressman from Texas, he did

505
00:31:10,560 --> 00:31:15,000
Speaker 1: everything but mentioned J. J. Watt. Every conversation turns around

506
00:31:15,040 --> 00:31:19,080
Speaker 1: to football and the dreaded Dallas Cowboys go very quick.

507
00:31:19,720 --> 00:31:22,400
Speaker 1: We got about thirty seconds left here cars. Jerry Jones

508
00:31:22,440 --> 00:31:24,440
Speaker 1: had some time to make that transformation. How much time

509
00:31:24,440 --> 00:31:26,560
Speaker 1: are you and your constituents prepared to give this president?

510
00:31:27,080 --> 00:31:31,000
Speaker 1: This is the point, learn quickly, Mr President, learned quickly

511
00:31:31,400 --> 00:31:34,240
Speaker 1: make friends when the things you're supposed to do get

512
00:31:34,360 --> 00:31:38,000
Speaker 1: top flight. People, he's got some listen to him and

513
00:31:38,000 --> 00:31:40,600
Speaker 1: and go go find out what your strike zone is.

514
00:31:41,120 --> 00:31:43,719
Speaker 1: And then remember the success for rain Dance has a

515
00:31:43,720 --> 00:31:47,520
Speaker 1: lot to do with timing. Now's the time. Pete Sessions

516
00:31:47,720 --> 00:31:50,959
Speaker 1: from Texas, Republican from Teas said he's got the toughest

517
00:31:51,000 --> 00:31:54,400
Speaker 1: job in Texas. You know what's he doing when one

518
00:31:54,400 --> 00:31:56,000
Speaker 1: of the bushes called up, Well, you know, I was

519
00:31:56,080 --> 00:32:00,120
Speaker 1: thinking some zoning issues, whatever whatever it may be. To

520
00:32:00,160 --> 00:32:02,240
Speaker 1: field those calls. Peze Sessions of the thirty seconds from

521
00:32:02,480 --> 00:32:04,120
Speaker 1: district in tex should say, yeah, the chairman of the

522
00:32:04,120 --> 00:32:18,160
Speaker 1: House Rules Committee, join us on our phone lines. This

523
00:32:18,240 --> 00:32:20,880
Speaker 1: is a really important interview. In fact, I would argue, folks,

524
00:32:20,880 --> 00:32:23,680
Speaker 1: this is the interview of the day. Uh. The gentleman

525
00:32:23,920 --> 00:32:28,000
Speaker 1: is from the Heritage Foundation, and he understands the distance

526
00:32:28,480 --> 00:32:35,040
Speaker 1: from Vladivostok to SUPPORTO from Vladivostok to Tokyo, and much

527
00:32:35,120 --> 00:32:39,520
Speaker 1: more importantly the car ride from Vladivostok to the border

528
00:32:39,560 --> 00:32:43,680
Speaker 1: of North Korea where it meets with China. Bruce Clinger

529
00:32:43,920 --> 00:32:47,800
Speaker 1: is with the Heritage Foundation UH with an extraordinary career

530
00:32:47,800 --> 00:32:51,400
Speaker 1: with CIA in defense as well. Mr Clinger joining us

531
00:32:51,400 --> 00:32:53,400
Speaker 1: on our phone lines. Spruce, let me ask the easy

532
00:32:53,520 --> 00:32:57,080
Speaker 1: question before David asked smarter questions. Do we have a

533
00:32:57,200 --> 00:33:00,960
Speaker 1: clue what the North Koreans are doing? We we underestimated

534
00:33:01,040 --> 00:33:04,880
Speaker 1: intelligence on Russia back in the time of Gorbuschev. Do

535
00:33:04,960 --> 00:33:09,040
Speaker 1: we have a knowledge base on North Korea? Well, in

536
00:33:09,080 --> 00:33:11,600
Speaker 1: North Korea we referred to as c I A as

537
00:33:11,640 --> 00:33:14,160
Speaker 1: the hardest of the hard targets. And when I used

538
00:33:14,160 --> 00:33:16,520
Speaker 1: to work the Soviet Union and then switched over to

539
00:33:16,560 --> 00:33:18,720
Speaker 1: North Korea, I was sort of amazed at how much

540
00:33:18,760 --> 00:33:22,240
Speaker 1: less we knew about North Korea than the Soviet Union. Uh.

541
00:33:22,280 --> 00:33:25,640
Speaker 1: You know that said our our knowledge on different subjects

542
00:33:26,000 --> 00:33:29,120
Speaker 1: as are varies. We have a greater knowledge of conventional

543
00:33:29,160 --> 00:33:32,280
Speaker 1: forces than you know the exact number of nuclear weapons.

544
00:33:32,280 --> 00:33:36,080
Speaker 1: But we also have decades of experience with North Korean

545
00:33:36,080 --> 00:33:38,840
Speaker 1: actions and have a fairly good idea of what they

546
00:33:38,880 --> 00:33:41,760
Speaker 1: do and don't do. Um. You know, the North Korean

547
00:33:41,880 --> 00:33:45,080
Speaker 1: leader is not irrational. He's not crazy as as some

548
00:33:45,160 --> 00:33:48,600
Speaker 1: pointed out. Uh, nor was his father. Obviously a brutal,

549
00:33:49,280 --> 00:33:52,240
Speaker 1: terrible dictator, but not uh you know, going to wake

550
00:33:52,320 --> 00:33:55,120
Speaker 1: up some morning and just start a nuclear war. Uh.

551
00:33:55,280 --> 00:33:58,200
Speaker 1: You know, we know that they're continuing their quest for

552
00:33:58,280 --> 00:34:01,120
Speaker 1: the ability to hit the United States. It's in our

553
00:34:01,160 --> 00:34:04,000
Speaker 1: allies with nuclear weapons. They can already do that to

554
00:34:04,120 --> 00:34:06,880
Speaker 1: South Korea and Japan. And then now they're continuing their

555
00:34:06,960 --> 00:34:10,000
Speaker 1: development as several other missiles, missiles that can hit our

556
00:34:10,040 --> 00:34:12,640
Speaker 1: bases in Guam as well as uh the I C

557
00:34:12,800 --> 00:34:16,120
Speaker 1: B M which we saw fly twice in July. Bruce,

558
00:34:16,200 --> 00:34:18,719
Speaker 1: what what do we have at our disposal now? I

559
00:34:18,719 --> 00:34:20,760
Speaker 1: read the statement earlier on the show from the President

560
00:34:20,800 --> 00:34:23,680
Speaker 1: about the most recent missile test. I read a statement

561
00:34:23,719 --> 00:34:27,440
Speaker 1: from the UN Secretary General as well. Sanctions have been

562
00:34:27,440 --> 00:34:29,080
Speaker 1: tried time and time again. I think one of our

563
00:34:29,080 --> 00:34:31,520
Speaker 1: eighth round of sanctions here against North Korea from from

564
00:34:31,560 --> 00:34:35,359
Speaker 1: the U N. What's left in that tool kit? And

565
00:34:35,760 --> 00:34:39,399
Speaker 1: there there seems to be wide distaste or or trepidation

566
00:34:39,480 --> 00:34:42,040
Speaker 1: about some sort of military action here. But what's left

567
00:34:42,040 --> 00:34:43,640
Speaker 1: at the U S is disposed at this point to

568
00:34:43,719 --> 00:34:48,080
Speaker 1: deal with what we've seen North Korea doing. Well, it's there.

569
00:34:48,120 --> 00:34:50,360
Speaker 1: As people have said, North Korea is the land of

570
00:34:50,360 --> 00:34:54,160
Speaker 1: bad options. Um, you know, with with sanctions, I'd argue

571
00:34:54,200 --> 00:34:58,480
Speaker 1: there's a lot of misperceptions or mischaracterizations. Is that, you know,

572
00:34:58,480 --> 00:35:01,319
Speaker 1: when people say sanctions have failed, it's more like, you know,

573
00:35:01,400 --> 00:35:06,200
Speaker 1: timid incremental implementation of sanctions have failed. It's like if

574
00:35:06,239 --> 00:35:08,479
Speaker 1: the mayor of a city says he's very tough on crime,

575
00:35:08,520 --> 00:35:11,360
Speaker 1: but then directs the police not to arrest many of

576
00:35:11,400 --> 00:35:14,520
Speaker 1: the criminals. Well, you know, you you shouldn't blame the police,

577
00:35:14,600 --> 00:35:18,279
Speaker 1: or you couldn't blame the laws themselves. So uh. You know,

578
00:35:19,000 --> 00:35:22,960
Speaker 1: the US, for example, as unilaterally imposed twelve billion dollars

579
00:35:22,960 --> 00:35:26,000
Speaker 1: in fines on European banks for money laundering for I Run,

580
00:35:26,440 --> 00:35:29,839
Speaker 1: We've imposed zero dollars and fines on any Chinese bank.

581
00:35:30,840 --> 00:35:33,279
Speaker 1: Last year was the first year that the US had

582
00:35:33,320 --> 00:35:37,520
Speaker 1: finally finally cumulatively sanctioned as many North Korean entities as

583
00:35:37,520 --> 00:35:41,440
Speaker 1: we have sanctioned those of Sudan Szababwe. So you know,

584
00:35:41,440 --> 00:35:44,840
Speaker 1: we have been pulling our punches recently, the administration has

585
00:35:44,960 --> 00:35:48,000
Speaker 1: has started to go after some secondary violators in China.

586
00:35:48,160 --> 00:35:50,800
Speaker 1: I'm hoping we'll see much more of that. Chris Clinger

587
00:35:50,840 --> 00:35:54,040
Speaker 1: where this with the Heritage Foundation. Robert sent you mailing

588
00:35:54,080 --> 00:35:56,160
Speaker 1: and thank you Bob for listening this morning. And on

589
00:35:56,200 --> 00:35:59,400
Speaker 1: your good question, David, I'm strong Yanni also mentions a

590
00:35:59,440 --> 00:36:04,400
Speaker 1: current account surpluses in Japan and Eurozone supporting those currencies.

591
00:36:04,440 --> 00:36:07,560
Speaker 1: But again, I guess it's the idea of stability there,

592
00:36:07,600 --> 00:36:11,600
Speaker 1: brisk Clinger within that can Japan defend itself or are

593
00:36:11,640 --> 00:36:14,160
Speaker 1: they at risk and in harm's way because of the

594
00:36:14,200 --> 00:36:18,759
Speaker 1: ghosts of World War Two? Well, they do have a

595
00:36:18,840 --> 00:36:22,520
Speaker 1: fairly extensive ballistic missile defense network. The other times that

596
00:36:22,560 --> 00:36:27,160
Speaker 1: North Korea flew over them with missiles in two thousand

597
00:36:27,280 --> 00:36:30,480
Speaker 1: nine really spurred a deployment as well. Okay, well, then

598
00:36:30,520 --> 00:36:32,719
Speaker 1: why didn't they shoot this missile lot of the sky.

599
00:36:32,800 --> 00:36:35,319
Speaker 1: That's been our money question this morning. I mean, if

600
00:36:35,360 --> 00:36:37,239
Speaker 1: if you're not going to shoot this one out, which

601
00:36:37,239 --> 00:36:40,480
Speaker 1: one are you going to shoot? Well, it's really a

602
00:36:40,520 --> 00:36:42,439
Speaker 1: matter of physics. Is by the time a North Korean

603
00:36:42,480 --> 00:36:45,240
Speaker 1: missile is flying over Japan and not directed at Japan,

604
00:36:45,880 --> 00:36:49,799
Speaker 1: it's higher than the capability of the standard missile three

605
00:36:49,840 --> 00:36:52,360
Speaker 1: missiles that they have. So it'd be like a shortstop

606
00:36:52,400 --> 00:36:54,400
Speaker 1: saying I'm going to catch every ball to the outfield.

607
00:36:54,440 --> 00:36:56,880
Speaker 1: Well it's simply over as heavy can't reach it. But

608
00:36:57,080 --> 00:37:00,359
Speaker 1: if the missile were directed at Japan, just to the ball,

609
00:37:00,480 --> 00:37:02,720
Speaker 1: directed at a short step, well then they came intercept

610
00:37:02,760 --> 00:37:05,200
Speaker 1: it because it's within range. See this works because Mr

611
00:37:05,280 --> 00:37:10,799
Speaker 1: Klinger understands David, it's trigonometry. Tuesday. That's how we got

612
00:37:10,800 --> 00:37:14,120
Speaker 1: into tangent data. I thought, I thought that it might

613
00:37:14,160 --> 00:37:16,640
Speaker 1: be what's what's the what's what's your prescription here? With

614
00:37:16,640 --> 00:37:19,800
Speaker 1: how to deal with China. The President met with the

615
00:37:19,840 --> 00:37:23,200
Speaker 1: President of China in Florida. By his account, they hit

616
00:37:23,239 --> 00:37:25,080
Speaker 1: things off, they had a good relationship. Just a couple

617
00:37:25,080 --> 00:37:28,080
Speaker 1: of months later he expressed his disappointment on Twitter and

618
00:37:28,120 --> 00:37:31,279
Speaker 1: in public just about how little China had done with

619
00:37:31,280 --> 00:37:34,919
Speaker 1: regard to enforcing sanctions on on North Korea. What more

620
00:37:35,000 --> 00:37:36,640
Speaker 1: can can China be doing? How do how do you

621
00:37:36,680 --> 00:37:40,560
Speaker 1: compel China to do more? Well, there, I'd say there

622
00:37:40,320 --> 00:37:43,759
Speaker 1: we need to divorce diplomacy from law enforcement. So with

623
00:37:43,800 --> 00:37:48,160
Speaker 1: diplomacy we continue to cajole, implore, pressure, China to do

624
00:37:48,239 --> 00:37:52,280
Speaker 1: more to implement what are required U N. Security Council

625
00:37:52,320 --> 00:37:56,520
Speaker 1: Resolution sanctions. Uh. You know, so North Korea, I'm sorry. China.

626
00:37:56,880 --> 00:37:59,359
Speaker 1: They always talk a good game. They always promise every

627
00:37:59,400 --> 00:38:02,120
Speaker 1: success of president that they'll do more. Uh, and we've

628
00:38:02,160 --> 00:38:05,640
Speaker 1: always been disappointed. So you know, that's the diplomatic track.

629
00:38:05,719 --> 00:38:10,840
Speaker 1: It's been frustrating. Beijing is allowed incrementally stronger resolutions, but

630
00:38:10,880 --> 00:38:14,719
Speaker 1: then they tend under enforce them. But the US can

631
00:38:14,760 --> 00:38:17,319
Speaker 1: actually do a lot with our own laws. Because the

632
00:38:17,400 --> 00:38:21,120
Speaker 1: vast majority of international financial transactions in the world are

633
00:38:21,160 --> 00:38:24,879
Speaker 1: denominated in dollars, and that includes China's and North Korea's.

634
00:38:25,080 --> 00:38:27,360
Speaker 1: That means they have to go through US banks. That

635
00:38:27,400 --> 00:38:30,280
Speaker 1: actually gives us tremendous levels that we have not been using.

636
00:38:30,680 --> 00:38:34,080
Speaker 1: So we can seize and freeze assets, we can impose

637
00:38:34,200 --> 00:38:38,720
Speaker 1: fines on entities. We can uh prevent them from access

638
00:38:38,760 --> 00:38:40,719
Speaker 1: in the US financial system, which is a kiss of

639
00:38:40,800 --> 00:38:44,360
Speaker 1: death for any financial institution. We haven't been doing that.

640
00:38:44,560 --> 00:38:47,880
Speaker 1: And you can you can influence, you can wean away,

641
00:38:47,960 --> 00:38:50,560
Speaker 1: you can peel away the Chinese banks and businesses that

642
00:38:50,600 --> 00:38:53,640
Speaker 1: have been dealing with North Korea, regardless of what the

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Speaker 1: Chinese government wants or doesn't want. So we saw in

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Speaker 1: the past when we we took that action in two thousand,

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Speaker 1: five thousand six, we got the Bank of China to

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Speaker 1: defy the government of China and cut off its engagement

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Speaker 1: with North Korea. Well, then the US backtracked, we reverse

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Speaker 1: the uh the decision, and and then Bank of China

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Speaker 1: went back to engaging with North Korea. So sort of

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Speaker 1: regardless of what China, the Chinese government is saying, we

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Speaker 1: can influence those Chinese banks and businesses to make have

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Speaker 1: them make the decision do you want to do business

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Speaker 1: with North Korea? Where do you want to have access

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Speaker 1: to the US financial systems. Clinger thank you so much.

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Speaker 1: He is with the Heritage Foundation. Of course, the former

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Speaker 1: c I a deputy division chief for A Korea. Very

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Speaker 1: valuable comments as well. It is great to be back.

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Speaker 1: Thanks to all of our surveillance team for moving forward

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Speaker 1: to August. I really look at this, David as the

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Speaker 1: beginning of September really the beginning of the fall season

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Speaker 1: with the news flow has been extraordinary. Day. Of course,

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Speaker 1: I'm just so happy. I'm just so happy to be back.

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Speaker 1: M hmm. Thanks for listening to the Bloomberg Surveillas podcast.

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Speaker 1: Subscribe and listen to interviews on Apple Podcasts, SoundCloud, or

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Speaker 1: whichever podcast platform you prefer. I'm on Twitter at Tom Keene.

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Speaker 1: David Gura is at David Gura. Before the podcast, you

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Speaker 1: can always catch US World one. I'm Bloomberg Radio