WEBVTT - Former Chief of Staff for Mike Pence Marc Short Talks Epstein Files 0:00:02.520 --> 0:00:07.040 Bloomberg Audio Studios, podcasts, radio news. 0:00:07.760 --> 0:00:09.639 Here in New York City, Mack Show the film A 0:00:09.680 --> 0:00:11.440 chief of staff to the foam of Vice President of 0:00:11.440 --> 0:00:13.200 my Pench joins us now for Mo MO, good morning, 0:00:13.280 --> 0:00:14.840 good morning, Thanks for having me. Thank you for big 0:00:14.920 --> 0:00:17.520 kay a much more interventionist white House over the past week, 0:00:17.560 --> 0:00:19.759 and I've maybe the last number of months as well. Yeah, 0:00:19.840 --> 0:00:21.400 can you just weigh in how you framing things at 0:00:21.440 --> 0:00:22.880 the moment well on. 0:00:23.160 --> 0:00:26.119 This pretty quod topic. I actually think there is probably 0:00:26.320 --> 0:00:29.480 broader support among a lot of small government people who say, 0:00:29.520 --> 0:00:32.839 you know what, the notion of a FED truly being 0:00:32.880 --> 0:00:36.160 independent was a nice notion, went before it had seven 0:00:36.280 --> 0:00:39.680 trillion dollars of assets on its books, and so you 0:00:39.760 --> 0:00:41.680 have a lot of unlike to people with fourteen year 0:00:41.800 --> 0:00:45.360 terms have enormous influence over the economy. Having said that, 0:00:45.440 --> 0:00:48.000 I think there's probably a desire also that if there 0:00:48.040 --> 0:00:51.760 was actually effort to change it, it'd be more above 0:00:51.800 --> 0:00:54.360 board than coming up with sort of these fraudulent charges 0:00:54.720 --> 0:00:57.640 against the board governor, because there's probably plenty of political 0:00:57.720 --> 0:01:00.760 pointees administration of multiple mortgages too, said they're both their 0:01:00.800 --> 0:01:03.600 primary residents, so I'm sure there's a double standard here, 0:01:03.840 --> 0:01:06.440 and I wish there is a more intellectual appeal about 0:01:06.440 --> 0:01:08.679 the fed's role as a postcon with bogus chargers. 0:01:08.680 --> 0:01:10.040 I just want to pick up on the language a 0:01:10.120 --> 0:01:12.840 difference between challenges of fraud and fortullent challenges. Which one 0:01:12.880 --> 0:01:13.479 do you think it is? 0:01:14.360 --> 0:01:16.680 I think these are bogus charges. I mean, what makes 0:01:16.720 --> 0:01:19.600 you believe that, Well, I don't know how many how 0:01:19.640 --> 0:01:21.200 many homes she has or if she listed both as 0:01:21.200 --> 0:01:22.880 private resident, is that really a reason you're going to 0:01:22.959 --> 0:01:26.480 remove somebody as a board governor? And once again, I 0:01:26.560 --> 0:01:28.560 believe there's probably plenty of people in the indministration have 0:01:28.560 --> 0:01:29.960 done the same on their mortgage file. 0:01:30.040 --> 0:01:32.640 Well, lots of reporting over this summer about Ken Paxton, 0:01:32.680 --> 0:01:34.840 who's the Attorney General of Texas, who's running to be 0:01:34.840 --> 0:01:37.680 the senator. Point and do you think this litmus test 0:01:37.720 --> 0:01:39.440 now for the president. He's going to decide whether or 0:01:39.480 --> 0:01:41.759 not he's going to back Ken Paxton because he has 0:01:42.000 --> 0:01:45.000 three residences listen as a primary more you know memory, he's. 0:01:44.880 --> 0:01:47.360 Very flexible in these things. I think this is this 0:01:47.440 --> 0:01:49.800 is more about his effort to exert control over the 0:01:49.800 --> 0:01:53.160 FED because I think they're concerned that their trade agenda 0:01:53.320 --> 0:01:56.680 is causing great weakness in the labor market, and they 0:01:56.680 --> 0:01:59.080 want rates lower, and to be fair, this is what 0:01:59.160 --> 0:02:01.360 the President has always one of his lower rates. Even 0:02:01.440 --> 0:02:03.800 when he had the option to appoint Jerome Powell in 0:02:03.880 --> 0:02:06.840 the first administration, there were three options between Kevin Warsh, 0:02:06.920 --> 0:02:10.400 John Taylor, and Jerome Powell, and the President asked who's 0:02:10.400 --> 0:02:12.280 going to make rates lower? And that's one of the 0:02:12.320 --> 0:02:15.040 ironies is that he chose the person who Steve Nuchen 0:02:15.080 --> 0:02:17.200 told him is going to keep rates lower, but obviously 0:02:17.280 --> 0:02:18.079 he wants even lower. 0:02:18.120 --> 0:02:20.800 They are Now, how difficult is next week going to be? 0:02:20.880 --> 0:02:23.360 If the Senate Banking Committee begins their hearing of Steve 0:02:23.440 --> 0:02:25.359 Myron and you look at some of the Republicans on 0:02:25.400 --> 0:02:27.520 that committee. Are we going to see pushback not just 0:02:27.520 --> 0:02:30.080 from the likes of Elizabeth Warren but also like Tom 0:02:30.120 --> 0:02:30.520 tell Us. 0:02:31.000 --> 0:02:32.920 We haven't seen it yet, Henry. He said, I'm not 0:02:33.000 --> 0:02:35.320 so confident that it's going to be significant pushback on 0:02:35.720 --> 0:02:38.480 his appointment. And I look, again, I think this is 0:02:38.520 --> 0:02:40.840 about effort, exert control, want to have a majority so 0:02:40.880 --> 0:02:43.639 he can lower rates faster. But again I think it's 0:02:43.680 --> 0:02:46.720 reflective of a concern about where the labor market's going. 0:02:46.880 --> 0:02:49.240 I remember Stephen Mall nominated for a seat on the 0:02:49.280 --> 0:02:52.880 Federal sev The Senate was Republican at the time, and 0:02:52.960 --> 0:02:54.880 he didn't make it, and that was pushback. What's the 0:02:54.919 --> 0:02:58.080 difference between that first time for the president and this second? 0:02:58.320 --> 0:03:00.000 Yeah, yeah, great question, because think this is much brought 0:03:00.200 --> 0:03:01.639 than the Federal Reserve. I think it's about all of 0:03:01.639 --> 0:03:03.680 his nominations. I think that you know, you go to 0:03:04.520 --> 0:03:06.800 his cabinet, and I think it'd be hard to envision 0:03:06.880 --> 0:03:09.920 that RFK would have gotten confirmed in a previous Republican 0:03:09.960 --> 0:03:13.720 controlled Senate. I think this is basically a reflection that 0:03:13.760 --> 0:03:17.160 Republicans are very worried about the president primary. He has 0:03:17.240 --> 0:03:20.320 shown his ability to engage in primaries and exert that control, 0:03:20.520 --> 0:03:22.920 and there's just an enormous fear factor, and he's using 0:03:22.960 --> 0:03:25.960 that with great leverage amongst Senate Republicans. Has the ponce 0:03:26.000 --> 0:03:28.760 he changed, the party's absolutely changed. I mean, I think 0:03:28.760 --> 0:03:32.000 the party has certainly become far more populous. I think, 0:03:32.280 --> 0:03:36.200 you know, when you see basically the federal government looking 0:03:36.200 --> 0:03:38.920 to seize means of production and the biggest cheerleaders are 0:03:38.960 --> 0:03:42.640 Elizabeth Warren and Bernie Sanders, and there's not a Republican 0:03:42.680 --> 0:03:45.840 speaking out about the government taking over ten percent of Intel. 0:03:46.200 --> 0:03:49.040 On the heels of saying, you know, in selling we 0:03:49.080 --> 0:03:50.960 have export controls, we don't want to sell these chips 0:03:51.000 --> 0:03:52.680 to China. Oh, but if you allow us to take 0:03:52.680 --> 0:03:55.440 fifteen percent of the profits of a vidiot, it's okay. 0:03:55.640 --> 0:03:57.560 And on the heels of say we're gonna take golden 0:03:57.560 --> 0:04:01.320 shares of Nippon Steel, US Steel. It's like this is 0:04:01.440 --> 0:04:05.000 clearly moving a direction where the populism and the progressive merge, 0:04:05.000 --> 0:04:08.000 and there's been total silence among center Republicans. 0:04:07.480 --> 0:04:11.680 And centered Republicans with their silence, you say, potentially though, 0:04:11.720 --> 0:04:14.680 they're interested in revamping the Federal Reserve because they're in 0:04:14.680 --> 0:04:17.440 favor of small government. Nothing you just listed in terms 0:04:17.480 --> 0:04:20.599 of taking shares of companies is small government, imriy. 0:04:21.240 --> 0:04:22.960 That's I think one of the shocking parts is that 0:04:23.040 --> 0:04:25.839 I do believe that the first Trump administration was predominantly 0:04:25.839 --> 0:04:29.520 small government. It was deregulatory, it reduced taxes, and I 0:04:29.560 --> 0:04:32.080 feel like the second administration is exerted its influence in 0:04:32.160 --> 0:04:35.240 all sectors of the economy and looking to exert its muscle. 0:04:35.240 --> 0:04:38.240 And I think it's a very different agenda. 0:04:37.640 --> 0:04:39.600 To be more constructive about what they're doing in terms 0:04:39.640 --> 0:04:41.920 of say Intel, there's been a lot of criticism that 0:04:42.160 --> 0:04:45.080 they're mirroring what China does, or this is state capitalism 0:04:45.200 --> 0:04:48.320 like Europeans did in the nineteen sixties. What do you 0:04:48.320 --> 0:04:50.760 actually think Trump is thinking? Is this about building a 0:04:50.800 --> 0:04:53.400 sovereign wealth fund? What is actually the strategy? 0:04:53.880 --> 0:04:56.360 I think that he kind of rejected the sovereign wealth 0:04:56.360 --> 0:04:58.520 fund the other day, but I do think it's concerning 0:04:58.560 --> 0:05:03.839 that the projectory there is basically Saudi Arabia, China, Iran, Russia. 0:05:03.839 --> 0:05:06.040 Those are the ones with sovereign well funds. I certainly 0:05:06.080 --> 0:05:08.159 hope that's not where we're going. I do think it's 0:05:08.160 --> 0:05:10.560 more for in his mind simply about leverage and where 0:05:10.600 --> 0:05:13.800 he can have leverage. But again, the basis of it 0:05:13.880 --> 0:05:16.039 was two weeks before he more or lessens anyway the 0:05:16.040 --> 0:05:20.040 Intel CEOs and Chinese spy and then basically allowing that, 0:05:20.480 --> 0:05:22.720 basically saying Okay, well, we're not so worried about the 0:05:22.760 --> 0:05:24.200 national security and more as long as we can have 0:05:24.240 --> 0:05:27.080 ten percent. It's like, what's the justification. I feel like 0:05:27.360 --> 0:05:29.760 when you do this, you crowd out private investors. I 0:05:29.760 --> 0:05:31.280 don't think this would be good for either side. I 0:05:31.279 --> 0:05:34.520 think you can see intel shock. Intel stock probably declined 0:05:34.520 --> 0:05:36.840 because what private investor wants to engage If they feel 0:05:36.839 --> 0:05:38.320 like the federal government can just come in and take 0:05:38.360 --> 0:05:39.880 ten percent or more. 0:05:40.000 --> 0:05:42.800 They suffering well fenced, the ships ACKed, that's the investment vehicle. 0:05:42.880 --> 0:05:44.400 I didn't see that coming, but that's why this is 0:05:44.400 --> 0:05:45.599 coming apparently. 0:05:45.240 --> 0:05:48.200 Well, yeah, potentially, I mean. And it's also not just 0:05:48.360 --> 0:05:51.120 the examples Mark Short brought up. You also had the 0:05:51.160 --> 0:05:54.239 DoD recently take a stake in a company as well, 0:05:54.320 --> 0:05:57.520 and Howard Ludnik is basically saying that this might be 0:05:58.320 --> 0:06:01.120 potentially direction or travel for other defense companies. 0:06:01.120 --> 0:06:02.560 Mark, this was great. It's going to see you. 0:06:02.600 --> 0:06:03.719 Thanks for breaking it down. 0:06:03.920 --> 0:06:06.760 The traditional Republican view of was playing out down in Washington, 0:06:06.800 --> 0:06:07.000 d C.