1
00:00:00,080 --> 00:00:02,920
Speaker 1: Brought you by Bank of America, Mary Lynch. Investing in

2
00:00:03,000 --> 00:00:07,840
Speaker 1: local communities, economies and a sustainable future. That's the power

3
00:00:08,080 --> 00:00:12,360
Speaker 1: of global connections. Mary Lynch, Pierce Fenner, and Smith Incorporated

4
00:00:12,760 --> 00:00:26,400
Speaker 1: Member s I p C. Welcome to the Bloomberg Surveillance Podcast.

5
00:00:26,440 --> 00:00:29,920
Speaker 1: I'm Tom Keene with David Gura. Daily we bring you

6
00:00:29,960 --> 00:00:34,800
Speaker 1: insight from the best of economics, finance, investment, and international relations.

7
00:00:35,240 --> 00:00:40,760
Speaker 1: Find Bloomberg Surveillance on Apple Podcasts, SoundCloud, Bloomberg dot com,

8
00:00:40,800 --> 00:00:48,159
Speaker 1: and of course, on the Bloomberg Imer. Jersey joins us

9
00:00:48,200 --> 00:00:50,559
Speaker 1: now as the Federal Serve wraps up a two day

10
00:00:50,560 --> 00:00:53,199
Speaker 1: meeting in Washington. He's a right strategist with Bloomberg Intelligence

11
00:00:53,200 --> 00:00:56,240
Speaker 1: in his innar Bloomberg eleven three, Oh, Studios, I regret

12
00:00:56,320 --> 00:00:58,279
Speaker 1: to speak with you. Let's let's set the stage here

13
00:00:58,280 --> 00:01:00,600
Speaker 1: for this meeting, Day two of the meeting. Big and shortly,

14
00:01:01,120 --> 00:01:02,880
Speaker 1: what are you expecting to come out of what's this

15
00:01:02,920 --> 00:01:04,680
Speaker 1: fed way and what's it looking at over the course

16
00:01:04,680 --> 00:01:06,360
Speaker 1: of this two day meeting? Yeah, so, so I think

17
00:01:06,400 --> 00:01:08,759
Speaker 1: it's gonna be weighing. Uh, you know what, new risks

18
00:01:08,800 --> 00:01:12,400
Speaker 1: have been created. Firstly, since the last meeting and the secondly,

19
00:01:12,800 --> 00:01:14,600
Speaker 1: and I think this is going to be more closed door,

20
00:01:14,640 --> 00:01:16,840
Speaker 1: and the minutes of this meeting might be more interesting

21
00:01:16,840 --> 00:01:20,160
Speaker 1: than today's statement, but about how monetary policy and their

22
00:01:20,200 --> 00:01:23,440
Speaker 1: balance sheet is going to continue to uh to develop

23
00:01:23,520 --> 00:01:26,600
Speaker 1: over time. So one of the surprises from the March

24
00:01:26,680 --> 00:01:31,000
Speaker 1: meeting was that they had significant discussion about how how

25
00:01:31,040 --> 00:01:33,280
Speaker 1: their balance sheet was going to develop. And they said

26
00:01:33,520 --> 00:01:36,559
Speaker 1: during that during that meeting that hey, we want to

27
00:01:37,240 --> 00:01:40,280
Speaker 1: reduce both our treasury holdings and our mortgage holdings. And

28
00:01:40,319 --> 00:01:43,120
Speaker 1: I think for some people, and and me included quite frankly,

29
00:01:43,319 --> 00:01:45,959
Speaker 1: that that was a little bit surprising because eventually we

30
00:01:46,000 --> 00:01:49,800
Speaker 1: know they want to go back to a treasury only portfolio. Um,

31
00:01:49,880 --> 00:01:52,560
Speaker 1: but you know now they want to shrink their balance

32
00:01:52,600 --> 00:01:55,559
Speaker 1: sheet altogether. Over Jersey with us in our Bloomberg eleventh

33
00:01:55,560 --> 00:01:57,280
Speaker 1: three oh studios in New York, Tom Keene, and our

34
00:01:57,280 --> 00:02:02,200
Speaker 1: Bloomberg studios in Washington. Here along the FDR, looking at

35
00:02:02,240 --> 00:02:05,320
Speaker 1: across the East River Tom Ferries crossing from Williamsburg. I'm

36
00:02:05,320 --> 00:02:08,320
Speaker 1: having a Walt Whitman moment here across some mercy. You know,

37
00:02:08,360 --> 00:02:11,840
Speaker 1: that's a different song. How you doing? We're very good?

38
00:02:11,840 --> 00:02:14,600
Speaker 1: It was surely folks in the many years, well over

39
00:02:14,639 --> 00:02:17,560
Speaker 1: a decade of coming down here, uh and doing Bloomberg

40
00:02:17,639 --> 00:02:21,000
Speaker 1: Radio and Bloomberg Television. Last evening David Gurrow was the

41
00:02:21,040 --> 00:02:25,919
Speaker 1: most pleasant evening I've ever had in Washington. The weather

42
00:02:26,080 --> 00:02:30,080
Speaker 1: was perfect. We sat on Fifteenth Street outside and and

43
00:02:30,240 --> 00:02:34,200
Speaker 1: had dinner. It was partly cloudy with a thirty chance

44
00:02:34,240 --> 00:02:41,000
Speaker 1: of shutdown, sort of where I was yesterday. Iron Jersey say,

45
00:02:41,040 --> 00:02:44,320
Speaker 1: I think that's a pretty good assessment where I would

46
00:02:44,320 --> 00:02:47,880
Speaker 1: put a review for our audience what the bond market

47
00:02:48,080 --> 00:02:52,040
Speaker 1: does when when SMP and Moodies begin to worry about

48
00:02:52,040 --> 00:02:54,919
Speaker 1: a quote unquote shutdown. Yeah. I mean, one of the

49
00:02:54,960 --> 00:02:58,720
Speaker 1: ironies is is that rates probably probably rally, so you

50
00:02:58,760 --> 00:03:02,160
Speaker 1: get lower yields. Uh in an environment where the government

51
00:03:02,280 --> 00:03:04,280
Speaker 1: looks like it might shut down. I mean, for one thing,

52
00:03:04,880 --> 00:03:07,080
Speaker 1: we'd be worried about economic growth. There'd be a flight

53
00:03:07,120 --> 00:03:09,960
Speaker 1: to quality risk assets like uh, you know, corporate bonds

54
00:03:09,960 --> 00:03:14,080
Speaker 1: and equities probably don't do great in that environment. But um.

55
00:03:14,240 --> 00:03:16,720
Speaker 1: But at the same time, I think, you know, one

56
00:03:16,760 --> 00:03:18,239
Speaker 1: of the things that we learned from some of the

57
00:03:18,840 --> 00:03:22,600
Speaker 1: past shutdowns and and other death ceiling related crises is

58
00:03:22,680 --> 00:03:25,360
Speaker 1: that you know, we come to the brink, but then eventually,

59
00:03:25,520 --> 00:03:27,560
Speaker 1: you know, cooler heads prevail and we we wind up

60
00:03:27,600 --> 00:03:30,360
Speaker 1: avoiding the worst disasters. So um so at the end

61
00:03:30,400 --> 00:03:31,880
Speaker 1: of the day, it winds up being a blip on

62
00:03:31,919 --> 00:03:33,520
Speaker 1: a lot of the charts that we look at. But

63
00:03:33,600 --> 00:03:36,120
Speaker 1: it's it is something though, that is worrying because you

64
00:03:36,160 --> 00:03:39,040
Speaker 1: always have this danger when you go to the brink

65
00:03:39,080 --> 00:03:41,440
Speaker 1: that someone might actually fall off, or that you know,

66
00:03:41,520 --> 00:03:44,600
Speaker 1: everyone might fall off, and that that's the danger, and

67
00:03:44,640 --> 00:03:46,880
Speaker 1: that's what the market ends up pricing for even if

68
00:03:47,120 --> 00:03:49,680
Speaker 1: the likelihood of that actually occurring is pretty low. Someone

69
00:03:49,880 --> 00:03:53,000
Speaker 1: editorialize it's a comedy act. We'll see our Jersey where

70
00:03:53,000 --> 00:03:55,920
Speaker 1: this Bloomberg intelligence in New York. Great guests to come up,

71
00:03:55,920 --> 00:04:00,440
Speaker 1: including Bill Dunckelberg testifying today on the OH. Have a

72
00:04:00,480 --> 00:04:04,880
Speaker 1: good conversation with him as well. Bloomberg surveillance this morning

73
00:04:04,880 --> 00:04:08,120
Speaker 1: from Washington and from New York, Iro Jersey. When I

74
00:04:08,160 --> 00:04:11,080
Speaker 1: want to analyze the bond market, and I want to

75
00:04:11,120 --> 00:04:13,720
Speaker 1: say what the real rate is when I take a

76
00:04:13,800 --> 00:04:19,719
Speaker 1: given interest rate and subtract inflation, which maturity do I

77
00:04:19,920 --> 00:04:22,040
Speaker 1: use to get to that real rate? Do you use

78
00:04:22,120 --> 00:04:25,599
Speaker 1: the five year, the two year, the coming fifty year bond?

79
00:04:25,600 --> 00:04:28,039
Speaker 1: Which do you use. Yeah, well, it depends on what

80
00:04:28,160 --> 00:04:31,880
Speaker 1: you're what you're trying to to accomplish. I mean, one

81
00:04:31,880 --> 00:04:33,600
Speaker 1: of the nice things is now is that we have

82
00:04:33,720 --> 00:04:37,800
Speaker 1: the Treasury Inflation Protected Securities or TIPS market, which does

83
00:04:37,839 --> 00:04:39,560
Speaker 1: that for us, so we don't have to So if

84
00:04:39,600 --> 00:04:42,200
Speaker 1: you have say a ten year time horizon until you

85
00:04:42,400 --> 00:04:45,280
Speaker 1: have some event, you know, maybe maybe sending your kids

86
00:04:45,279 --> 00:04:47,560
Speaker 1: to college, maybe it's retirement, it depends on where you

87
00:04:47,560 --> 00:04:50,160
Speaker 1: are in your in your life cycle, UM. But if

88
00:04:50,200 --> 00:04:52,440
Speaker 1: you have a tenure horizon, then obviously you want to

89
00:04:52,440 --> 00:04:54,359
Speaker 1: look at the tenure yield. Now that the danger with

90
00:04:54,440 --> 00:04:58,160
Speaker 1: looking at nominal US treasuries and then subtracting what inflation

91
00:04:58,240 --> 00:05:00,600
Speaker 1: is today from that is that there's no guarantee that

92
00:05:00,640 --> 00:05:02,719
Speaker 1: inflation is going to stay where it is. It could

93
00:05:02,720 --> 00:05:04,960
Speaker 1: be much higher, could be much lower. So one of

94
00:05:05,000 --> 00:05:07,120
Speaker 1: the things that the TIPS market does is says, okay,

95
00:05:07,160 --> 00:05:11,159
Speaker 1: what is what is the market's expectation of where um

96
00:05:11,200 --> 00:05:14,560
Speaker 1: of where interest rates will be after your accounting for inflation,

97
00:05:14,560 --> 00:05:17,600
Speaker 1: And right now that's around uh zero point three pc,

98
00:05:17,920 --> 00:05:21,320
Speaker 1: so not particularly high UM, but that is much higher

99
00:05:21,320 --> 00:05:24,480
Speaker 1: than it was um than it was last summer or

100
00:05:24,839 --> 00:05:27,000
Speaker 1: prior to the election. When it was at zero, you

101
00:05:27,120 --> 00:05:31,240
Speaker 1: expected the real interest rate the market was expecting prior

102
00:05:31,320 --> 00:05:34,480
Speaker 1: to Donald Trump's election was zero, So you were expecting

103
00:05:34,520 --> 00:05:37,000
Speaker 1: only to make inflation. Uh. Today it's a little bit

104
00:05:37,000 --> 00:05:40,160
Speaker 1: more than inflation, So you have some risk premium returning

105
00:05:40,200 --> 00:05:43,200
Speaker 1: to the market. And uh, it's lower than it was

106
00:05:43,640 --> 00:05:47,520
Speaker 1: a couple of weeks ago, but it's still um positive number.

107
00:05:47,960 --> 00:05:50,279
Speaker 1: Now that's ben as high is almost one percent. And

108
00:05:50,279 --> 00:05:52,760
Speaker 1: and you know, a decade ago, but not since the

109
00:05:52,760 --> 00:05:55,080
Speaker 1: crisis have you seen it up near those levels. Comment

110
00:05:55,160 --> 00:05:56,600
Speaker 1: a joke there about the fifty year bond, But of

111
00:05:56,680 --> 00:05:59,400
Speaker 1: course the Treasury Secretary Stevenution, in conversation with our editor

112
00:05:59,440 --> 00:06:01,560
Speaker 1: in chief John Way at the Milk Milk and Institute

113
00:06:01,560 --> 00:06:04,000
Speaker 1: Global Conference this week, alluded to the fact that he's

114
00:06:04,000 --> 00:06:07,520
Speaker 1: seriously considering a bond of that of that length. How

115
00:06:07,640 --> 00:06:09,480
Speaker 1: how does that play as he considers that, How does

116
00:06:09,480 --> 00:06:11,039
Speaker 1: that play out in the bond market? Are there people

117
00:06:11,040 --> 00:06:13,159
Speaker 1: who would buy these things? Well? I think there would

118
00:06:13,160 --> 00:06:14,599
Speaker 1: be people who buy these things. I think one of

119
00:06:14,640 --> 00:06:17,400
Speaker 1: the one of the ironies is is that a fifty

120
00:06:17,480 --> 00:06:19,800
Speaker 1: year bond, in terms of actual interest rate risk, does

121
00:06:19,839 --> 00:06:22,080
Speaker 1: not give you much more than a thirty year. So

122
00:06:22,360 --> 00:06:24,479
Speaker 1: one of the arguments that in the past when when

123
00:06:24,480 --> 00:06:27,640
Speaker 1: the government's talked about doing an ultralong bond was to

124
00:06:28,320 --> 00:06:30,000
Speaker 1: you know, instead of doing a fifty year why not

125
00:06:30,080 --> 00:06:32,000
Speaker 1: just increased the amount of thirty year bonds that you

126
00:06:32,480 --> 00:06:35,600
Speaker 1: that you issue. Well, so so that that is certainly

127
00:06:35,600 --> 00:06:39,000
Speaker 1: a possibility. UM, but a fifty year bond adds UH

128
00:06:39,240 --> 00:06:41,440
Speaker 1: adds a lot of what's called convexity risk. So it's

129
00:06:41,440 --> 00:06:45,599
Speaker 1: really how much how much risk changes with a change

130
00:06:45,600 --> 00:06:49,080
Speaker 1: in in yield and UM and and that's very high

131
00:06:49,160 --> 00:06:50,680
Speaker 1: for a fifty year bonds. So there are people who

132
00:06:50,720 --> 00:06:52,680
Speaker 1: would want to buy it. There are pensions and and

133
00:06:52,760 --> 00:06:57,000
Speaker 1: other asset liability managers UM like insurance companies who would

134
00:06:57,000 --> 00:06:59,760
Speaker 1: find it very intriguing. It would also be a benchmark

135
00:06:59,839 --> 00:07:03,360
Speaker 1: for corporations, and I think that that's another important aspect

136
00:07:03,400 --> 00:07:06,880
Speaker 1: of having an an ultralong potentially, is that it allows

137
00:07:07,000 --> 00:07:11,400
Speaker 1: for a benchmark yield UM to be traded against other assets.

138
00:07:11,400 --> 00:07:13,800
Speaker 1: So then when corporations if they want to issue fifty

139
00:07:13,880 --> 00:07:17,200
Speaker 1: year bonds UM, there will be something to UH to

140
00:07:17,440 --> 00:07:20,440
Speaker 1: benchmark and also hedge the interest rate exposure there So

141
00:07:20,440 --> 00:07:23,160
Speaker 1: so there are certain benefits at on the other side.

142
00:07:23,240 --> 00:07:25,240
Speaker 1: You know, they've talked about this. This is you know,

143
00:07:25,560 --> 00:07:28,000
Speaker 1: I've been doing this twenty odd years and this is

144
00:07:28,040 --> 00:07:29,920
Speaker 1: about the fourth time that they've talked about doing an

145
00:07:29,960 --> 00:07:32,960
Speaker 1: ultralong bond um. But this time it might actually happen,

146
00:07:33,040 --> 00:07:35,560
Speaker 1: just because that is something that the Treasury Department can

147
00:07:35,600 --> 00:07:37,960
Speaker 1: do unilaterally. They don't have to go to Congress and say, hey,

148
00:07:38,360 --> 00:07:39,960
Speaker 1: you know, can we get permission to do a fifty

149
00:07:40,040 --> 00:07:42,640
Speaker 1: year bond? They can just do it. What do you

150
00:07:42,640 --> 00:07:44,680
Speaker 1: expect and you're talking about who Mike here more than

151
00:07:44,680 --> 00:07:46,520
Speaker 1: the more in the minutes than any other color will

152
00:07:46,560 --> 00:07:48,520
Speaker 1: get after the meeting today. When you look to those minutes,

153
00:07:48,520 --> 00:07:49,840
Speaker 1: what do you think you're going to see about how

154
00:07:49,880 --> 00:07:52,760
Speaker 1: this feed is regarding the potential for for some sort

155
00:07:52,760 --> 00:07:57,680
Speaker 1: of new fiscal policy in Washington. Yeah, you know, one

156
00:07:57,680 --> 00:07:59,680
Speaker 1: of the things that they have to take into account

157
00:07:59,760 --> 00:08:04,200
Speaker 1: is what if the potential fiscal policies go into effect

158
00:08:04,200 --> 00:08:06,760
Speaker 1: and you get tax cuts that could be additive to growth.

159
00:08:06,840 --> 00:08:09,600
Speaker 1: So that's a risk on the upside. I think though,

160
00:08:09,600 --> 00:08:12,040
Speaker 1: in the minutes they'll try and be very cautious because

161
00:08:12,080 --> 00:08:14,800
Speaker 1: they don't want to kind of upset the political establishment

162
00:08:14,800 --> 00:08:16,680
Speaker 1: and upset the president that you know, the worst thing

163
00:08:16,720 --> 00:08:19,120
Speaker 1: for them would be to have a couple of angry tweets.

164
00:08:19,440 --> 00:08:21,760
Speaker 1: Um On TV. Just a little while ago, Tom brought

165
00:08:21,840 --> 00:08:24,760
Speaker 1: up a newspaper article with all of the tweets from

166
00:08:24,800 --> 00:08:26,560
Speaker 1: the first hundred days. And you know you don't want

167
00:08:26,560 --> 00:08:28,880
Speaker 1: ten of those from about the Fed if you're if

168
00:08:28,880 --> 00:08:31,400
Speaker 1: you are the Fed. That's a new play twelve angry tweets.

169
00:08:31,840 --> 00:08:33,840
Speaker 1: It's amazing. I mean, you see it front and back.

170
00:08:33,920 --> 00:08:37,240
Speaker 1: It's like a whole broadsheet of the Washington Post in

171
00:08:37,320 --> 00:08:40,560
Speaker 1: its actual tweets. And David, the bonus round is they've

172
00:08:40,640 --> 00:08:43,480
Speaker 1: even gone in and they show the deleted tweets with

173
00:08:43,559 --> 00:08:46,800
Speaker 1: a line through them. So like you had a tweet

174
00:08:46,840 --> 00:08:50,079
Speaker 1: about Abe out playing golf with Ernie Els and he

175
00:08:50,240 --> 00:08:53,440
Speaker 1: deleted that one. But they it's really well done. I mean,

176
00:08:53,480 --> 00:08:56,880
Speaker 1: it's a statement for you know, in support of the president.

177
00:08:56,960 --> 00:09:02,840
Speaker 1: It is a new communications mechanism, and it's it's amazing.

178
00:09:03,480 --> 00:09:05,559
Speaker 1: Just I'll say, you see what he's done over a

179
00:09:05,640 --> 00:09:07,920
Speaker 1: hundred and some days. And that doesn't even get to

180
00:09:07,960 --> 00:09:10,560
Speaker 1: the tweet of th on this morning. Whatever the theme

181
00:09:11,400 --> 00:09:13,960
Speaker 1: maybe I would see, just David, the theme in Washington

182
00:09:14,880 --> 00:09:19,199
Speaker 1: is about Trump care in Obamacare late last night, working

183
00:09:19,200 --> 00:09:33,960
Speaker 1: your way trying to get those votes. Joining us in

184
00:09:33,960 --> 00:09:38,600
Speaker 1: our studios in Washington. Jim Jordan's it is James Daniel

185
00:09:38,679 --> 00:09:40,680
Speaker 1: Jordan who wants to go Jim or will put me

186
00:09:40,720 --> 00:09:44,960
Speaker 1: in a wrestling lock. Wonderful wrestler out of Wisconsin and

187
00:09:45,040 --> 00:09:48,440
Speaker 1: with the most interesting Gerrymander district in the history of Ohio.

188
00:09:48,880 --> 00:09:52,640
Speaker 1: You go from the farming communities of western Ohio all

189
00:09:52,679 --> 00:09:55,040
Speaker 1: the way over and is a gift to your Madison

190
00:09:55,360 --> 00:09:59,120
Speaker 1: University of Wisconsin heritage. They gave you the People's Republic

191
00:09:59,120 --> 00:10:02,640
Speaker 1: of Overland. What was the first visit to Oberlin? Like,

192
00:10:02,800 --> 00:10:04,840
Speaker 1: so I go there when I first get that that

193
00:10:05,040 --> 00:10:06,480
Speaker 1: part of the and gonna be with you, Tom. They

194
00:10:06,600 --> 00:10:10,439
Speaker 1: they had a legal women voters meet the candidate kind

195
00:10:10,440 --> 00:10:13,400
Speaker 1: of debate and I walk in and I go up

196
00:10:13,400 --> 00:10:15,880
Speaker 1: to the table to say alone, and then the ladies

197
00:10:15,880 --> 00:10:18,120
Speaker 1: they're kind of registering people and look up at me

198
00:10:18,160 --> 00:10:20,480
Speaker 1: and they go, Wow, we didn't think you would show up,

199
00:10:20,480 --> 00:10:22,600
Speaker 1: And yeah, of course I'm here, and I understand I'm

200
00:10:22,600 --> 00:10:24,720
Speaker 1: not gonna get any votes here, but in fact I

201
00:10:24,720 --> 00:10:27,080
Speaker 1: lost the precinct there like three d and some to five.

202
00:10:27,559 --> 00:10:30,600
Speaker 1: I need to meet these five people right though they

203
00:10:30,600 --> 00:10:34,000
Speaker 1: were the wrestling game, Oberlin. Uh, we'll get to your

204
00:10:34,000 --> 00:10:36,320
Speaker 1: wrestling acclaim here as we can. We'll fit in another

205
00:10:36,440 --> 00:10:38,960
Speaker 1: visit front and center right now, and you are front

206
00:10:38,960 --> 00:10:43,200
Speaker 1: and center right now in this issue of Obamacare, Obamacare

207
00:10:43,240 --> 00:10:46,199
Speaker 1: repeal and Trump Care. How are you going to wrestle

208
00:10:46,559 --> 00:10:50,040
Speaker 1: modern Republicans to vote? Well, where we think we got

209
00:10:50,040 --> 00:10:52,200
Speaker 1: the bill in a pretty good position. But I'm always

210
00:10:52,240 --> 00:10:54,920
Speaker 1: always straightforward with the American people. It's not full repeal

211
00:10:55,000 --> 00:10:56,720
Speaker 1: like we told him we were going to get, but

212
00:10:56,760 --> 00:10:58,080
Speaker 1: it's the best bill we think we can get out

213
00:10:58,080 --> 00:10:59,680
Speaker 1: of the House right now. And the Freedom Caucus US

214
00:10:59,679 --> 00:11:02,320
Speaker 1: concern of it is, are are supporting the legislation. So

215
00:11:02,400 --> 00:11:06,000
Speaker 1: hopefully we'll get about this week. Um, we'll see. I

216
00:11:06,040 --> 00:11:08,520
Speaker 1: hope it happens today or tomorrow and we can begin

217
00:11:08,559 --> 00:11:10,160
Speaker 1: to get it over the Senate and continue to work

218
00:11:10,160 --> 00:11:12,120
Speaker 1: on it. But we'll see. Let me bring my colleague

219
00:11:12,120 --> 00:11:14,880
Speaker 1: in New York, David David, Yeah, give me a sense

220
00:11:14,920 --> 00:11:17,000
Speaker 1: your cars majority, if you would have of what the

221
00:11:17,040 --> 00:11:19,120
Speaker 1: Freedom Caucus stands. Where we talk about the Freedom Caucus

222
00:11:19,120 --> 00:11:21,240
Speaker 1: in the context of healthcare and text, Yeah, what are

223
00:11:21,280 --> 00:11:23,400
Speaker 1: the driving principles of it? We hear about the Freedom

224
00:11:23,400 --> 00:11:26,920
Speaker 1: Caucus and the Syndic Group, all these different factions. Caucus

225
00:11:26,960 --> 00:11:29,600
Speaker 1: stand for real simple. Our mission statement talks about the

226
00:11:29,640 --> 00:11:33,000
Speaker 1: countless number of Americans who feel like Washington has forgotten them.

227
00:11:33,040 --> 00:11:35,640
Speaker 1: Our job is to remember them and fight for him,

228
00:11:35,679 --> 00:11:38,480
Speaker 1: to do it in a productive and attack attacked lee

229
00:11:38,720 --> 00:11:42,760
Speaker 1: and and strategically um smart way, but to fight for him.

230
00:11:42,840 --> 00:11:45,599
Speaker 1: And that's what we do. We're obviously from the conservative

231
00:11:45,640 --> 00:11:49,440
Speaker 1: side of the Republican Party, but it's interesting the mix.

232
00:11:49,520 --> 00:11:51,520
Speaker 1: We have some libertarian leading folks in our group and

233
00:11:51,520 --> 00:11:54,880
Speaker 1: then more traditional conservatives. But that's our mission statement. We

234
00:11:54,920 --> 00:11:57,400
Speaker 1: think we think that you know, so many people in

235
00:11:57,440 --> 00:12:01,480
Speaker 1: this town get forgotten and those those connected classes get

236
00:12:01,480 --> 00:12:04,079
Speaker 1: the special deals at the expense of regular American families,

237
00:12:04,080 --> 00:12:05,520
Speaker 1: and so our job is to fight for them. And

238
00:12:05,840 --> 00:12:07,960
Speaker 1: right now we're in the midst of a tax reform debate,

239
00:12:08,000 --> 00:12:11,920
Speaker 1: and healthcare debate, and and and several other important issues.

240
00:12:12,040 --> 00:12:13,839
Speaker 1: How much sympathy do you have for the House Speaker

241
00:12:13,880 --> 00:12:15,800
Speaker 1: Paul Ryan at this point, dealing with your group, dealing

242
00:12:15,840 --> 00:12:17,480
Speaker 1: with the two group, dealing with all of these different

243
00:12:17,480 --> 00:12:19,840
Speaker 1: facts the top job. I said the same thing about

244
00:12:19,880 --> 00:12:23,199
Speaker 1: Speaker Baine or his district was adjacent to ours. And

245
00:12:23,280 --> 00:12:25,320
Speaker 1: you know, I never criticized these guys in a in

246
00:12:25,320 --> 00:12:28,040
Speaker 1: a public way because I know how tough their job is. Uh.

247
00:12:28,120 --> 00:12:29,880
Speaker 1: You know, you got, as you said, you gotta deal

248
00:12:29,920 --> 00:12:32,000
Speaker 1: with I think about what Speaker Ryan has to deal with.

249
00:12:32,040 --> 00:12:34,680
Speaker 1: He's gotta deal with. Pelosi's gotta deal with uh, you know,

250
00:12:34,720 --> 00:12:38,160
Speaker 1: Schumer on the other side, and he's got the Twosio

251
00:12:38,160 --> 00:12:39,800
Speaker 1: and folks like us. So it's it's a it's a

252
00:12:39,800 --> 00:12:42,160
Speaker 1: tough job corraling all that and getting things done. I

253
00:12:42,240 --> 00:12:44,760
Speaker 1: understand that, But that doesn't change what we're about. Our

254
00:12:44,840 --> 00:12:47,160
Speaker 1: Our mission is real simple, do what we told the

255
00:12:47,240 --> 00:12:49,800
Speaker 1: voters we were going to do. We make this job

256
00:12:49,800 --> 00:12:52,600
Speaker 1: way too complicated. Our our job is to, you know,

257
00:12:52,800 --> 00:12:54,920
Speaker 1: do what they sent us here to accomplish. The President

258
00:12:55,080 --> 00:12:58,479
Speaker 1: loves to go out to the fabric of the Ohios

259
00:12:58,520 --> 00:13:01,400
Speaker 1: of America, and like one of the guys, he could

260
00:13:01,440 --> 00:13:04,800
Speaker 1: go to St. St. Uh Mary's, he could go to

261
00:13:04,840 --> 00:13:07,600
Speaker 1: Graham High School, where you were as a wrestling star.

262
00:13:08,120 --> 00:13:12,079
Speaker 1: Come on, he's a Fifth Avenue plutocrat from New York City.

263
00:13:12,280 --> 00:13:15,480
Speaker 1: How does he resonate in your district? Because he has

264
00:13:15,559 --> 00:13:19,280
Speaker 1: this uh conservative principles, but a populous tone to him.

265
00:13:19,640 --> 00:13:21,559
Speaker 1: One of the things I always tell is, back in August,

266
00:13:21,559 --> 00:13:23,880
Speaker 1: when we opened up our party headquarters in Lyme, Ohio,

267
00:13:24,320 --> 00:13:27,360
Speaker 1: where I know Tom, you have some roots. Um, we

268
00:13:27,400 --> 00:13:29,319
Speaker 1: had this gentleman walk up to me after we'd done

269
00:13:29,320 --> 00:13:31,199
Speaker 1: this speeches and on kind of opened up the headquarters

270
00:13:31,200 --> 00:13:33,360
Speaker 1: back in the campaign. He walked out. I hadn't seen

271
00:13:33,400 --> 00:13:35,120
Speaker 1: him before, and I felt like I know every Republican

272
00:13:35,160 --> 00:13:37,360
Speaker 1: in in in Allen County. He walked up to me

273
00:13:37,520 --> 00:13:38,800
Speaker 1: and he got a right to me. He didn't even

274
00:13:38,800 --> 00:13:40,560
Speaker 1: say hello. He just looked at me and goes, I'm

275
00:13:40,559 --> 00:13:43,320
Speaker 1: a Union pipe fitter. I'm vote for Donald Trump, and

276
00:13:43,320 --> 00:13:45,320
Speaker 1: I don't care what my union leadership says. They ain't

277
00:13:45,320 --> 00:13:47,000
Speaker 1: talking me out of it. And I said, you know,

278
00:13:47,040 --> 00:13:50,000
Speaker 1: good for you. That's what that was the connect. That

279
00:13:50,400 --> 00:13:54,679
Speaker 1: exactly right your father, That exactly the disaffected Democrats. He

280
00:13:54,760 --> 00:13:58,280
Speaker 1: came over to Reagan. Can this guy build? Can the

281
00:13:58,360 --> 00:14:02,600
Speaker 1: president United States building general coalition? Oh, come on with

282
00:14:02,640 --> 00:14:05,560
Speaker 1: a cacophony I've seen in the last forty eight hours

283
00:14:05,800 --> 00:14:07,560
Speaker 1: in this city. Well he did it. He did he

284
00:14:07,679 --> 00:14:10,160
Speaker 1: built that. And think about what happened in Pennsylvania. Ohio,

285
00:14:10,200 --> 00:14:12,800
Speaker 1: Michigan and Wisconsin through the Upper Midwest. That just like

286
00:14:12,840 --> 00:14:14,559
Speaker 1: that union pipe fitter, just like my dad back in

287
00:14:14,640 --> 00:14:18,000
Speaker 1: nineteen eighty who was a Union Democrat from who worked

288
00:14:18,000 --> 00:14:21,000
Speaker 1: in Dayton, Ohio for GM in my dad said, heck

289
00:14:21,040 --> 00:14:22,520
Speaker 1: with this, I'm gonna vote for I'm gonna vote for

290
00:14:22,560 --> 00:14:24,960
Speaker 1: Ronald Reagan. And he's been a conservative Republican every since.

291
00:14:25,400 --> 00:14:27,760
Speaker 1: That same dynamic was taking place in Ohio. I think

292
00:14:27,800 --> 00:14:29,400
Speaker 1: we can build on that, and that's what we should be.

293
00:14:29,400 --> 00:14:32,960
Speaker 1: We're supposed to be that conservative party, but with a

294
00:14:33,040 --> 00:14:36,120
Speaker 1: populous tone to our principles, and I think Donald Trump

295
00:14:36,160 --> 00:14:39,520
Speaker 1: was able to capture that and hopefully continues. Congressman tood

296
00:14:39,560 --> 00:14:42,240
Speaker 1: Not talked to former Senator Bill Bradley. Earlier in the week.

297
00:14:42,280 --> 00:14:43,600
Speaker 1: He wrote a piece for The New York Times about

298
00:14:43,600 --> 00:14:46,120
Speaker 1: when he did tax refor him alongside Republicans back in

299
00:14:47,560 --> 00:14:49,240
Speaker 1: five and then eighty six when when it got passed,

300
00:14:49,280 --> 00:14:52,160
Speaker 1: and he said that I'll paraphrase what he said, but

301
00:14:52,400 --> 00:14:54,560
Speaker 1: there's a sense that there aren't deals being made in

302
00:14:54,560 --> 00:14:57,880
Speaker 1: Washington anymore. Is that because lawmakers are unwilling to make

303
00:14:57,920 --> 00:14:59,880
Speaker 1: deals with each other or they don't know the art

304
00:14:59,880 --> 00:15:02,360
Speaker 1: of deal making. Are we at a place where we

305
00:15:02,680 --> 00:15:05,080
Speaker 1: can't see the kind of collaboration that we saw in

306
00:15:05,160 --> 00:15:07,960
Speaker 1: years past. It is it is, you know, partisan. I

307
00:15:07,960 --> 00:15:10,240
Speaker 1: mean I sensed that when I served in this in

308
00:15:10,280 --> 00:15:12,640
Speaker 1: the state legislature back home. For I came to Congress

309
00:15:12,680 --> 00:15:16,520
Speaker 1: and the partisan intensity is strong. But I do still

310
00:15:16,520 --> 00:15:19,120
Speaker 1: think you can work together. I always tell folks, Um,

311
00:15:19,160 --> 00:15:20,680
Speaker 1: a guy I used to work with, and we're about

312
00:15:20,680 --> 00:15:22,440
Speaker 1: as far as part as you can be as Dennis percentage.

313
00:15:22,480 --> 00:15:25,760
Speaker 1: Dennis is a friend. But where you can find common

314
00:15:25,760 --> 00:15:27,960
Speaker 1: ground with someone like Dennis and I is is typically

315
00:15:27,960 --> 00:15:30,320
Speaker 1: not on the spending, the taxing and some of those issues,

316
00:15:30,640 --> 00:15:33,600
Speaker 1: but on but on like civil liberty issues. So I

317
00:15:33,600 --> 00:15:35,840
Speaker 1: try to work with when I can. But you're right,

318
00:15:35,880 --> 00:15:38,320
Speaker 1: it's a pretty partisan environment. Um. You know, I think

319
00:15:38,360 --> 00:15:40,680
Speaker 1: sometimes we Republicans say that's Democrats faults and they say

320
00:15:40,680 --> 00:15:42,480
Speaker 1: it's our fault, but it is. That is the situation.

321
00:15:43,840 --> 00:15:47,400
Speaker 1: But the fiscal now is different. You talk about your

322
00:15:47,400 --> 00:15:51,480
Speaker 1: father and President Reagan, that was thirty three debt to GDP.

323
00:15:51,920 --> 00:15:58,640
Speaker 1: President Trump enjoys d g d P. What's the common

324
00:15:58,680 --> 00:16:02,320
Speaker 1: ground you need? For an example was Senator Schumer. Yeah,

325
00:16:03,120 --> 00:16:05,800
Speaker 1: I think this is where it's difficult because we actually

326
00:16:05,840 --> 00:16:09,200
Speaker 1: believe you should, um, your tax dollars should be spent

327
00:16:09,280 --> 00:16:11,320
Speaker 1: on national defense. We think we needed we need to

328
00:16:11,320 --> 00:16:13,640
Speaker 1: plus up that. But we also understand we've got a

329
00:16:13,640 --> 00:16:16,040
Speaker 1: twenty train dollar debt and we need to cut spending elsewhere.

330
00:16:16,200 --> 00:16:18,880
Speaker 1: Democrats always want to spend elsewhere and not not on

331
00:16:19,000 --> 00:16:21,520
Speaker 1: national defense. We've had this this idea that both grow

332
00:16:21,800 --> 00:16:24,920
Speaker 1: over the last several years. And we get to understand

333
00:16:24,920 --> 00:16:31,040
Speaker 1: that lem Ohio is a sanctuary city. You know was

334
00:16:31,120 --> 00:16:33,880
Speaker 1: my mother's accent. What can I say to help me

335
00:16:33,960 --> 00:16:37,240
Speaker 1: here with is New York City a sanctuary city? Is

336
00:16:37,280 --> 00:16:40,880
Speaker 1: a guy like you, with your leadership from a broad

337
00:16:40,920 --> 00:16:43,720
Speaker 1: swath of Ohio gonna tell me New York City or

338
00:16:43,720 --> 00:16:47,560
Speaker 1: Boston should have sanctuary cities. I think that's something we

339
00:16:47,560 --> 00:16:50,280
Speaker 1: should have went after in this budget. Uh, this spending

340
00:16:50,320 --> 00:16:52,760
Speaker 1: bill that's that's due to be voted on this week. UM,

341
00:16:52,920 --> 00:16:54,680
Speaker 1: that's one of the frustrations and why you're gonna see

342
00:16:54,680 --> 00:16:56,960
Speaker 1: a bunch of US conservatives and not not support the

343
00:16:57,040 --> 00:16:59,440
Speaker 1: legislation because we're not doing what we told the voters.

344
00:16:59,480 --> 00:17:02,120
Speaker 1: Why would why would we take a spending bill that

345
00:17:02,200 --> 00:17:04,719
Speaker 1: was that was due last year, so after the election,

346
00:17:04,760 --> 00:17:06,880
Speaker 1: we said we're gonna kick this short term spending bill

347
00:17:07,280 --> 00:17:09,840
Speaker 1: into We'll go out four months so that we can

348
00:17:09,880 --> 00:17:11,800
Speaker 1: when the cavalry gets here, when we have the White House,

349
00:17:11,840 --> 00:17:13,720
Speaker 1: the House, and the Senate, then we can deal with

350
00:17:13,760 --> 00:17:15,720
Speaker 1: the issues we campaigned on. If we were going to

351
00:17:15,800 --> 00:17:17,800
Speaker 1: deal with those issues now, then why in the heck

352
00:17:17,800 --> 00:17:19,560
Speaker 1: did we do the short term spending bill. That's that's

353
00:17:19,560 --> 00:17:22,560
Speaker 1: a frustration. Yeah, real quick. So so I'm taking from that,

354
00:17:22,560 --> 00:17:25,760
Speaker 1: you're not going to support this bill? No, no, absolutely not,

355
00:17:25,880 --> 00:17:27,760
Speaker 1: and and and and yours gonna be a bunch of

356
00:17:27,760 --> 00:17:30,000
Speaker 1: conservatives aren't going to support this. Did you react to

357
00:17:30,000 --> 00:17:32,159
Speaker 1: the present tweet yesterday he called a shutdown perhaps a

358
00:17:32,160 --> 00:17:34,040
Speaker 1: good thing in September. You agree with him that maybe

359
00:17:34,040 --> 00:17:37,000
Speaker 1: that'll be a motivating device. I think we gotta do

360
00:17:37,040 --> 00:17:38,800
Speaker 1: what we told the American people. We're gonna do what

361
00:17:38,800 --> 00:17:41,000
Speaker 1: they sentister to do, what we campaigned on. I'm not

362
00:17:41,080 --> 00:17:42,919
Speaker 1: for a shutdown, but if that's where it leads when

363
00:17:42,960 --> 00:17:45,119
Speaker 1: you're fighting for If Chuck Schumer thinks it's more important

364
00:17:45,160 --> 00:17:47,200
Speaker 1: to shut down the government then to than to do

365
00:17:47,240 --> 00:17:48,959
Speaker 1: what we told the American people we're gonna do, I'll

366
00:17:49,000 --> 00:17:50,920
Speaker 1: take that debate any day, and that's if that's where

367
00:17:50,920 --> 00:17:54,320
Speaker 1: we wind up, that's fine. But I know we don't continue. Please. Well,

368
00:17:54,359 --> 00:17:56,040
Speaker 1: I'm just saying we need to do what we said.

369
00:17:56,119 --> 00:17:58,480
Speaker 1: We make this job way way too complicated. What do

370
00:17:58,560 --> 00:18:00,840
Speaker 1: we what do we campaign on? For example, this healthcare

371
00:18:00,880 --> 00:18:03,680
Speaker 1: repealing Obamacare? It was a central issue in the ten campaign,

372
00:18:03,720 --> 00:18:06,280
Speaker 1: the two thousand fourteen campaign, and of course in the

373
00:18:06,320 --> 00:18:08,680
Speaker 1: election on November eight two. Can you get it done Friday?

374
00:18:09,119 --> 00:18:10,800
Speaker 1: I think we can get it done this week. I'm

375
00:18:10,800 --> 00:18:13,919
Speaker 1: certainly hopeful we can. Okay, I've got some advice for you.

376
00:18:14,000 --> 00:18:17,320
Speaker 1: It's it's David. You're gonna love this. This is very

377
00:18:17,320 --> 00:18:21,960
Speaker 1: important for the AU Wrestling Manual, which the Congressman memorized.

378
00:18:22,280 --> 00:18:27,840
Speaker 1: Symptoms may include dizziness, stunder days initially, headache, concentrating problems,

379
00:18:28,080 --> 00:18:31,320
Speaker 1: feelings of happy their bell rung that do last more

380
00:18:31,359 --> 00:18:34,840
Speaker 1: than thirty seconds. That would be the moderate Republicans. Well,

381
00:18:34,880 --> 00:18:38,440
Speaker 1: I was thinking you were describing Congress, but not a

382
00:18:38,480 --> 00:18:42,040
Speaker 1: wrestling match. Jim Jordan of Ohio, stay with this, worldwide,

383
00:18:42,080 --> 00:18:58,160
Speaker 1: coast to coast, this is Bloomberg, David. The weather here

384
00:18:58,320 --> 00:19:02,040
Speaker 1: is spectacular. If if Washington was like this ten months

385
00:19:02,080 --> 00:19:05,159
Speaker 1: of the year, I'd be here in a heartney gorgeous unfortunately.

386
00:19:05,240 --> 00:19:08,600
Speaker 1: And then there's August, yes exactly. Our next guest has

387
00:19:08,640 --> 00:19:10,600
Speaker 1: made a pilgrimage from East Hill in Ithaca, where he

388
00:19:10,680 --> 00:19:13,880
Speaker 1: is the Tailanni Sindia, Professor of Trade Policy at Cornell University,

389
00:19:13,920 --> 00:19:16,119
Speaker 1: author of a great book, Gaining Currency, the Rise of

390
00:19:16,160 --> 00:19:18,639
Speaker 1: rem and b to our Bloomberg Breakaway conference in New

391
00:19:18,720 --> 00:19:21,640
Speaker 1: York City. Eastmore preside with us here in New York,

392
00:19:21,640 --> 00:19:23,000
Speaker 1: and I want to ask you first, Well, there's been

393
00:19:23,040 --> 00:19:25,320
Speaker 1: a lot of conversation about North Korea on the foreign

394
00:19:25,400 --> 00:19:28,040
Speaker 1: policy front and the degree to which China could do more,

395
00:19:28,400 --> 00:19:31,360
Speaker 1: wield more economic influence to make North Korea do more.

396
00:19:31,880 --> 00:19:33,679
Speaker 1: What tools does it have at its disposed? What has

397
00:19:33,720 --> 00:19:35,720
Speaker 1: China not been doing when it comes to North Korea.

398
00:19:36,440 --> 00:19:38,360
Speaker 1: China and maybew You could be doing a lot more

399
00:19:38,400 --> 00:19:40,679
Speaker 1: about North Korea. The question is whether they want to

400
00:19:40,680 --> 00:19:43,480
Speaker 1: do much more, because the reality, in my view, is

401
00:19:43,520 --> 00:19:46,960
Speaker 1: that it helps China to convey this notion that North

402
00:19:47,040 --> 00:19:50,760
Speaker 1: Korea is very difficult to control. But the reality is

403
00:19:50,840 --> 00:19:55,120
Speaker 1: that China is the economic lifeline for North Korea. Um

404
00:19:55,200 --> 00:19:58,200
Speaker 1: North Korea is an economy, has an economy that really

405
00:19:58,240 --> 00:20:01,320
Speaker 1: cannot sustain itself, and if China what the choke off

406
00:20:01,960 --> 00:20:05,600
Speaker 1: its exports to North Korea or choke off access to

407
00:20:05,640 --> 00:20:09,280
Speaker 1: its markets, North Korea would implode economically. So they do

408
00:20:09,359 --> 00:20:11,600
Speaker 1: have a lot of control, but the reality is that

409
00:20:11,720 --> 00:20:15,000
Speaker 1: instability in North Korea certainly would not serve China as well.

410
00:20:15,600 --> 00:20:17,160
Speaker 1: So what they're trying to do is sort of keep

411
00:20:17,200 --> 00:20:20,440
Speaker 1: it simmering, trying to manage the problem as best as possible,

412
00:20:20,680 --> 00:20:23,000
Speaker 1: but not really put the choke on North Korea if

413
00:20:23,000 --> 00:20:25,240
Speaker 1: they wanted, to my view, as they could. I don't

414
00:20:25,240 --> 00:20:27,280
Speaker 1: think we've spoken since that summit in mar Lago when

415
00:20:27,280 --> 00:20:29,639
Speaker 1: when President Trump and President she met there for the

416
00:20:29,720 --> 00:20:32,919
Speaker 1: first time. What's your takeaway from an economic sense of

417
00:20:32,920 --> 00:20:35,640
Speaker 1: how that meeting went. We've seen the Treasury Department say

418
00:20:35,640 --> 00:20:37,879
Speaker 1: that Chinese in fact not manipulating its currency, the President

419
00:20:37,880 --> 00:20:40,639
Speaker 1: affirming that firming before the Treasury Department and had a

420
00:20:40,680 --> 00:20:43,960
Speaker 1: chance to do it. Has the economic relationship between the

421
00:20:43,960 --> 00:20:46,560
Speaker 1: two countries at this point. The one hundred day Plan

422
00:20:46,720 --> 00:20:49,040
Speaker 1: is clearly a way for both countries to sort of

423
00:20:49,440 --> 00:20:51,680
Speaker 1: declare some level of victory in the sense that they

424
00:20:51,720 --> 00:20:55,840
Speaker 1: managed to avoid any serious conflict, and it's a face

425
00:20:55,880 --> 00:20:58,760
Speaker 1: saving way for both Trump and segent Being to claim victory.

426
00:20:59,040 --> 00:21:00,840
Speaker 1: What is suspectful happened at the end of the one

427
00:21:00,880 --> 00:21:03,399
Speaker 1: hundred days is that China will say that it is

428
00:21:03,440 --> 00:21:05,679
Speaker 1: going to give the US a little more access to

429
00:21:05,680 --> 00:21:09,440
Speaker 1: its markets, give US investors, especially US financial firms such

430
00:21:09,480 --> 00:21:13,720
Speaker 1: as insurance companies, a little more access to investment opportunities

431
00:21:13,720 --> 00:21:17,439
Speaker 1: in China, and um stop intervening as much in foreign

432
00:21:17,440 --> 00:21:20,280
Speaker 1: exchange markets. These are all things that China committed to

433
00:21:20,280 --> 00:21:22,439
Speaker 1: do a long time ago, and it's probably going to

434
00:21:22,480 --> 00:21:26,200
Speaker 1: do anyway. But this provides a good way for diffusing

435
00:21:26,200 --> 00:21:29,760
Speaker 1: the tensions between the two countries. The country has cut

436
00:21:29,760 --> 00:21:31,879
Speaker 1: back on industrial over capacity. This is something the previous

437
00:21:31,880 --> 00:21:33,880
Speaker 1: administration here in the US have been pushing for for

438
00:21:33,880 --> 00:21:36,359
Speaker 1: for a very long time. Is that a signal to

439
00:21:36,400 --> 00:21:38,879
Speaker 1: you that China sense of its own economy or the

440
00:21:38,880 --> 00:21:41,679
Speaker 1: deficits within its own economy are becoming more apparent that

441
00:21:41,680 --> 00:21:45,440
Speaker 1: they're doing more to correct them. China recognizes very much

442
00:21:45,480 --> 00:21:47,479
Speaker 1: that the amount of investment that has been putting in

443
00:21:47,520 --> 00:21:51,320
Speaker 1: place is certainly not good because it's not well allocated investment.

444
00:21:51,720 --> 00:21:54,080
Speaker 1: You're still having a lot of the investment being undertaken

445
00:21:54,119 --> 00:21:57,520
Speaker 1: by large state owned enterprises financed by a not very

446
00:21:57,520 --> 00:22:01,560
Speaker 1: efficient state owned banking system, and in certain industries such

447
00:22:01,600 --> 00:22:03,840
Speaker 1: as steel, cement and so on, there is clearly a

448
00:22:03,840 --> 00:22:07,080
Speaker 1: lot of excess capacity. The difficult balancing act that China

449
00:22:07,160 --> 00:22:10,800
Speaker 1: faces is that it cannot afford to let investment, especially

450
00:22:10,840 --> 00:22:14,520
Speaker 1: infrastructured investments, slow down in terms of growth too soon.

451
00:22:14,920 --> 00:22:17,280
Speaker 1: So they're trying to manage the problem in the typical

452
00:22:17,440 --> 00:22:20,439
Speaker 1: Chinese way, and not by letting the markets work their magic,

453
00:22:20,760 --> 00:22:25,840
Speaker 1: but essentially having the government manage even the reduction over capacity.

454
00:22:25,880 --> 00:22:28,280
Speaker 1: Are we letting the markets work their magic? In the

455
00:22:28,359 --> 00:22:30,840
Speaker 1: United States of America, there's a great mystery to the

456
00:22:30,960 --> 00:22:34,760
Speaker 1: lack of investment here. What say you on that? From

457
00:22:34,800 --> 00:22:38,920
Speaker 1: the international prison that you have, Perhaps markets once upon

458
00:22:38,920 --> 00:22:42,320
Speaker 1: a time here worked a little too well term. The

459
00:22:42,400 --> 00:22:45,439
Speaker 1: difficulty here from the point of view of the U

460
00:22:45,480 --> 00:22:48,040
Speaker 1: S economy and its long term growth prospects, is really

461
00:22:48,080 --> 00:22:51,240
Speaker 1: tied to the low levels of investment, which we don't

462
00:22:51,240 --> 00:22:54,240
Speaker 1: have very good answers for. I mean, the big corporations

463
00:22:54,320 --> 00:22:56,800
Speaker 1: is certainly sitting on a lot of cash. Even small

464
00:22:56,880 --> 00:23:01,040
Speaker 1: and medium enterprices are facing slightly easier credit conditions right now,

465
00:23:01,080 --> 00:23:04,879
Speaker 1: But I think the policy uncertainty right now, especially on

466
00:23:04,920 --> 00:23:08,760
Speaker 1: the regulatory front, but also the broader macroeconomic policy uncertainty,

467
00:23:08,880 --> 00:23:12,879
Speaker 1: which still hasn't completely been eliminated. Despite decent growth, I

468
00:23:12,920 --> 00:23:15,880
Speaker 1: think is holding back investment. And then, of course, productivity

469
00:23:15,920 --> 00:23:19,639
Speaker 1: growth has been remarkably slow, and that also does not

470
00:23:19,800 --> 00:23:23,480
Speaker 1: necessarily augur well for investment. I don't think, although the

471
00:23:23,520 --> 00:23:25,640
Speaker 1: economists have been stumbling around for a while, we don't

472
00:23:25,680 --> 00:23:28,000
Speaker 1: have a good answer yet to white productivity growth in

473
00:23:28,080 --> 00:23:31,439
Speaker 1: this expansion has been that slow. But unless you can

474
00:23:31,440 --> 00:23:33,880
Speaker 1: get productivity growth going in the U S, it's very

475
00:23:33,960 --> 00:23:37,240
Speaker 1: hard to think of Trumpian growth rates of three to

476
00:23:37,320 --> 00:23:40,399
Speaker 1: four percent. Realistically, two percent is probably what the U.

477
00:23:40,480 --> 00:23:44,840
Speaker 1: S economy can achieve unless by miracle, productivity growth picks up.

478
00:23:45,119 --> 00:23:47,000
Speaker 1: It's so great to see you, as always each represent

479
00:23:47,080 --> 00:23:49,639
Speaker 1: that the Tlani, Senior Professor of Trade Policy at Cornell University.

480
00:23:49,640 --> 00:23:52,000
Speaker 1: Of course, he was forehead of the IMPS China Division,

481
00:23:52,000 --> 00:23:54,840
Speaker 1: author of the book Gaining Currency, The Rise of the

482
00:23:54,840 --> 00:23:57,480
Speaker 1: reman by to check out his interview with Tom and

483
00:23:57,520 --> 00:24:00,080
Speaker 1: Francy lack Of from earlier today on Bloomer Surveilling. On

484
00:24:00,080 --> 00:24:02,119
Speaker 1: Bloomberg Teleig you can see that on the Bloomberg terminal,

485
00:24:02,200 --> 00:24:04,440
Speaker 1: or of course at Bloomberg dot com is he makes

486
00:24:04,440 --> 00:24:06,440
Speaker 1: his way down to Washington, d C. Where you are,

487
00:24:06,880 --> 00:24:09,240
Speaker 1: and back to Ithaca, New York. Course, I spent many

488
00:24:09,240 --> 00:24:11,080
Speaker 1: happy years. Tom. You're preparing for you gonna be with

489
00:24:11,080 --> 00:24:13,600
Speaker 1: Ben Bernanke. What what's what's high on the agenda for you?

490
00:24:13,800 --> 00:24:16,879
Speaker 1: High an agenda is who will run the FED after

491
00:24:17,040 --> 00:24:19,840
Speaker 1: Cherry Yellow? And that will be one of our first questions.

492
00:24:19,920 --> 00:24:31,359
Speaker 1: This is Bloomberg, brought you by Bank of America Mary Lynch,

493
00:24:31,480 --> 00:24:35,720
Speaker 1: dedicated to bringing our clients insights and solutions to meet

494
00:24:35,760 --> 00:24:39,240
Speaker 1: the challenges of a transforming world. That's the power of

495
00:24:39,280 --> 00:24:44,399
Speaker 1: global connections. Mary Lynch, Pierce feder and Smith Incorporated, Member

496
00:24:45,000 --> 00:24:52,840
Speaker 1: s I p C. There's something new from Bloomberg. It's

497
00:24:52,840 --> 00:24:56,240
Speaker 1: called Lens. Starting right now, you can use the Bloomberg

498
00:24:56,520 --> 00:25:01,280
Speaker 1: iosa off your iPhone or iPad or our new Google

499
00:25:01,359 --> 00:25:05,240
Speaker 1: Chrome extension to read any news story on any website,

500
00:25:05,760 --> 00:25:09,320
Speaker 1: scan it, and then instantly see the news stories relevant

501
00:25:09,359 --> 00:25:13,840
Speaker 1: market data from Bloomberg. In addition, see all the bios

502
00:25:13,840 --> 00:25:17,560
Speaker 1: of the key people mentioned in the story. It's called lens,

503
00:25:17,880 --> 00:25:20,439
Speaker 1: and it is just that a lens into the people

504
00:25:20,840 --> 00:25:24,680
Speaker 1: and the data of any story you may be reading again.

505
00:25:24,960 --> 00:25:28,119
Speaker 1: Lens brings you the power of Bloomberg's news and data.

506
00:25:28,480 --> 00:25:31,679
Speaker 1: Download or io s app or search for the Bloomberg

507
00:25:31,680 --> 00:25:35,560
Speaker 1: extension at the Chrome Store to try Lens out. Learn

508
00:25:35,600 --> 00:25:43,159
Speaker 1: more at Bloomberg dot com slash Lens French Shop is

509
00:25:43,200 --> 00:25:46,280
Speaker 1: from a normal congressional district. As you say, Central Arkansas

510
00:25:46,440 --> 00:25:50,560
Speaker 1: doesn't look as jerrymanderd is the disaster Jim Jordan has

511
00:25:50,640 --> 00:25:53,760
Speaker 1: up in Ohio. But what I do know is you

512
00:25:53,840 --> 00:25:55,919
Speaker 1: hear the complaint o I Folkes. I just wish we

513
00:25:55,960 --> 00:25:59,960
Speaker 1: had people that understood economics. He is out of Vanderbilt economics,

514
00:26:00,200 --> 00:26:05,040
Speaker 1: legit economocrat, including working for George Herbert Walker Bush friend

515
00:26:05,080 --> 00:26:09,160
Speaker 1: Shill is the congressman from Arkansas. You're up until midnight

516
00:26:09,240 --> 00:26:12,879
Speaker 1: last night burning the health care oil to its frame. First,

517
00:26:12,960 --> 00:26:17,520
Speaker 1: are you a moderate or a conservative on Obamacare repeal

518
00:26:17,920 --> 00:26:19,960
Speaker 1: and the new Trump Care? Where do you fit in?

519
00:26:20,119 --> 00:26:23,600
Speaker 1: I think I fit in that I'm a conservative person

520
00:26:23,720 --> 00:26:27,280
Speaker 1: who wants to see the failings of the Affordable Care

521
00:26:27,320 --> 00:26:30,920
Speaker 1: Act repealed and replaced with something that works for the

522
00:26:30,960 --> 00:26:34,160
Speaker 1: American people. You know, Arkansas is a Medicaid expansion state.

523
00:26:34,240 --> 00:26:37,119
Speaker 1: So that has to be taken into account. Arkansas is

524
00:26:37,160 --> 00:26:40,200
Speaker 1: a poor state, so that has to be taken into account.

525
00:26:41,000 --> 00:26:44,160
Speaker 1: And for the last five weeks, we've had a work

526
00:26:44,160 --> 00:26:47,399
Speaker 1: in progress where we take a couple of steps forward

527
00:26:47,400 --> 00:26:51,040
Speaker 1: and one back. Corressman Hill, I spoke with Mark Bertolini yesterday,

528
00:26:51,080 --> 00:26:53,600
Speaker 1: the CEO, chairman and CEO of of Eton, after that

529
00:26:53,640 --> 00:26:57,600
Speaker 1: company released its earnings. It is now only three Affordable

530
00:26:57,640 --> 00:26:59,960
Speaker 1: Care Act markets that pulled out of Iowa that last month.

531
00:27:00,400 --> 00:27:01,760
Speaker 1: And I asked him what his message would be to

532
00:27:01,960 --> 00:27:03,680
Speaker 1: lawmakers like you on Capitol Hill, and he said, the

533
00:27:03,720 --> 00:27:05,000
Speaker 1: only way to fix this thing is to do it

534
00:27:05,040 --> 00:27:08,120
Speaker 1: in a bipartisan way. Is there any hope of that happening?

535
00:27:08,240 --> 00:27:11,520
Speaker 1: Do you think? Well? I think in the Senate that

536
00:27:11,600 --> 00:27:14,840
Speaker 1: will be essential. I think in the House, we'd like

537
00:27:14,920 --> 00:27:18,520
Speaker 1: to get the best plan that deals with what we

538
00:27:18,600 --> 00:27:20,800
Speaker 1: think are the failings in the law, put it together,

539
00:27:20,960 --> 00:27:24,399
Speaker 1: send it to the Senate, and then that will put together.

540
00:27:24,480 --> 00:27:27,200
Speaker 1: I think a bipartisan approach to grid to get something

541
00:27:27,240 --> 00:27:30,080
Speaker 1: to President Trump that repairs this this failing law. I

542
00:27:30,160 --> 00:27:32,439
Speaker 1: want you to know, David, and I'm looking down at

543
00:27:32,480 --> 00:27:37,520
Speaker 1: the super triple top secret documents of Congressman Hill, and

544
00:27:37,600 --> 00:27:42,359
Speaker 1: I see his whip list wrapped under his claimed Bloomberg

545
00:27:42,480 --> 00:27:46,120
Speaker 1: security badge. Fortunately, my I seat is like I sight

546
00:27:46,280 --> 00:27:49,879
Speaker 1: is like Andrew Jackson's and there's no risk of secrets.

547
00:27:50,160 --> 00:27:52,800
Speaker 1: Let out, David continue Congress French. We were talking with

548
00:27:52,840 --> 00:27:55,200
Speaker 1: Jim Jordan, your your colleague, just a few minutes ago,

549
00:27:55,200 --> 00:27:57,399
Speaker 1: of course, the founder the House freem Caucus, and we

550
00:27:57,400 --> 00:27:59,639
Speaker 1: were kind of going through all the different caucuses in

551
00:27:59,640 --> 00:28:02,720
Speaker 1: the House right now. Is it too desperate at this point?

552
00:28:02,800 --> 00:28:05,720
Speaker 1: Is it? Is it too hard for House leadership, for

553
00:28:05,720 --> 00:28:07,800
Speaker 1: the Republican leadership to get all these groups together. Do

554
00:28:07,800 --> 00:28:09,400
Speaker 1: you wish there was a little bit more unity among

555
00:28:09,440 --> 00:28:13,159
Speaker 1: your party? Well, it's always nice to have unity, but

556
00:28:13,200 --> 00:28:16,160
Speaker 1: I'll tell you, the best ideas come with hard work

557
00:28:16,200 --> 00:28:19,320
Speaker 1: and discussion and diversity of you as a positive thing.

558
00:28:19,400 --> 00:28:23,240
Speaker 1: We we have a very diverse, uh continental nation of

559
00:28:23,240 --> 00:28:26,720
Speaker 1: three million people, and so we aren't a monolithic people.

560
00:28:27,160 --> 00:28:29,480
Speaker 1: And having that diversitive of you both in the Democratic

561
00:28:29,520 --> 00:28:31,440
Speaker 1: part of the Republican Party is good for the voters,

562
00:28:31,480 --> 00:28:33,719
Speaker 1: good for the citizens. I think the fact that this

563
00:28:33,760 --> 00:28:36,320
Speaker 1: has slowed down and caused members to talk to each

564
00:28:36,320 --> 00:28:39,520
Speaker 1: other and come up with solutions like the proposal on

565
00:28:39,520 --> 00:28:43,320
Speaker 1: pre existing conditions. By taking into account what's happened successfully

566
00:28:43,360 --> 00:28:45,600
Speaker 1: in Maine is the way you get the best ideas.

567
00:28:45,760 --> 00:28:48,600
Speaker 1: Let's search gears here. Um, you survived a town hall

568
00:28:48,640 --> 00:28:51,920
Speaker 1: meeting here a week ago or so. I don't know.

569
00:28:51,960 --> 00:28:53,760
Speaker 1: I don't make all my questions up. I mean I

570
00:28:53,800 --> 00:28:56,440
Speaker 1: get a lot of help on them. Allison from Little

571
00:28:56,520 --> 00:29:00,560
Speaker 1: Rock is gonna help me right now, Congress from french Hill.

572
00:29:00,760 --> 00:29:03,280
Speaker 1: I want to know what you Republicans are going to

573
00:29:03,320 --> 00:29:07,400
Speaker 1: do to try to control our crazy president. What leader

574
00:29:07,520 --> 00:29:10,360
Speaker 1: that's from Alison at your town hall meeting? What you

575
00:29:10,400 --> 00:29:15,360
Speaker 1: answer to her about getting six Pennsylvania Avenue lined up

576
00:29:15,400 --> 00:29:19,960
Speaker 1: with the political and civic process? Right? Good question? She asked,

577
00:29:19,960 --> 00:29:23,040
Speaker 1: A good question, Senator Cotton. I had a thousand people

578
00:29:23,040 --> 00:29:25,320
Speaker 1: in a hotel ballroom. We had a great hour and

579
00:29:25,360 --> 00:29:30,440
Speaker 1: a half. Unfortunately, no I went through two bottles of water,

580
00:29:30,480 --> 00:29:33,280
Speaker 1: but that was about it. Uh uh. But it was

581
00:29:33,360 --> 00:29:36,320
Speaker 1: great and the conversation was good and we touched on everything,

582
00:29:36,320 --> 00:29:39,600
Speaker 1: and one of those things was people's concerns about President

583
00:29:39,640 --> 00:29:41,760
Speaker 1: Trump and the fact that he's new to the process,

584
00:29:41,800 --> 00:29:44,120
Speaker 1: the fact that he's an a conic class, that he's

585
00:29:44,160 --> 00:29:47,080
Speaker 1: a Maverick in the true sense that he's not following

586
00:29:47,120 --> 00:29:49,720
Speaker 1: a script that people are accustomed to. And what we

587
00:29:49,800 --> 00:29:52,640
Speaker 1: said is, look, the power of the purse rest with Congress.

588
00:29:52,680 --> 00:29:56,480
Speaker 1: Congress will her questions started out both on foreign policy

589
00:29:56,520 --> 00:29:59,560
Speaker 1: and on budget policy, and that they were concerned about

590
00:29:59,560 --> 00:30:02,840
Speaker 1: some of the pre puidant's budget budget priorities. Those come

591
00:30:02,880 --> 00:30:05,320
Speaker 1: to the House and the Senate, and they're reviewed and

592
00:30:05,360 --> 00:30:08,120
Speaker 1: dispatched by the members of Congress. So one thing is

593
00:30:08,160 --> 00:30:10,160
Speaker 1: that the Congress does have the power of the person

594
00:30:10,200 --> 00:30:13,200
Speaker 1: the sixteen words of the appropriations clause. So when it

595
00:30:13,240 --> 00:30:16,120
Speaker 1: comes to spending, that's the job of Congress. One other question,

596
00:30:16,160 --> 00:30:18,040
Speaker 1: if I made before we let you get back to

597
00:30:18,080 --> 00:30:20,560
Speaker 1: the wars on Capitol Hills. He's only got like three

598
00:30:20,600 --> 00:30:23,720
Speaker 1: hours sleep. What did Bill Clinton mean for Arkansas? You

599
00:30:23,760 --> 00:30:25,240
Speaker 1: grew up on the other side of the aisle, but

600
00:30:25,360 --> 00:30:28,200
Speaker 1: what did the president mean for your state? President Clinton

601
00:30:28,200 --> 00:30:29,960
Speaker 1: grew up in a small town of Hope, which he

602
00:30:30,000 --> 00:30:33,720
Speaker 1: made famous, and came up through a hard scrabble life

603
00:30:33,760 --> 00:30:39,040
Speaker 1: with his family situation. He was a dynamic leader as governor,

604
00:30:39,120 --> 00:30:41,840
Speaker 1: and he gave a lot of pride to the people

605
00:30:41,840 --> 00:30:46,720
Speaker 1: of Arkansas because of his affection for the state and

606
00:30:46,960 --> 00:30:52,040
Speaker 1: his ability to articulate a vision. So you know, he

607
00:30:52,160 --> 00:30:55,800
Speaker 1: still comes back to his presidential library and uh still

608
00:30:55,840 --> 00:31:00,320
Speaker 1: makes a an occasion to to bring good things back

609
00:31:00,360 --> 00:31:02,520
Speaker 1: to Little Rock. And also you just happened to talk

610
00:31:02,560 --> 00:31:05,880
Speaker 1: to Republicans every once in a while. Did he worked

611
00:31:05,920 --> 00:31:08,200
Speaker 1: well with new Gangbridge in the house. French will thank

612
00:31:08,240 --> 00:31:24,320
Speaker 1: you so much. This is Bloomberg, the former governor of

613
00:31:24,360 --> 00:31:28,640
Speaker 1: Indiana out of Pennsylvania, graduate of Princeton University and Georgetown

614
00:31:28,720 --> 00:31:31,960
Speaker 1: Law Mitch Daniels. Of course he's boiler up. You know

615
00:31:32,040 --> 00:31:35,880
Speaker 1: him from Purdue University right now. Governor. What has been

616
00:31:35,880 --> 00:31:39,160
Speaker 1: the biggest surprise of working at Purdue. It's it's it's

617
00:31:39,200 --> 00:31:42,640
Speaker 1: moving from one bureaucracy to a whole different culture. What's

618
00:31:42,640 --> 00:31:47,280
Speaker 1: been the biggest surprise? My facetious answer to that question

619
00:31:47,320 --> 00:31:50,000
Speaker 1: is always the food. You wouldn't believe the high quality

620
00:31:50,000 --> 00:31:54,160
Speaker 1: of the food, uh young people eating on our university campuses.

621
00:31:54,440 --> 00:32:00,000
Speaker 1: They heard anything we uh we uh folks would remember.

622
00:32:00,320 --> 00:32:04,600
Speaker 1: But the more serious answer I suppose is to me

623
00:32:04,840 --> 00:32:11,440
Speaker 1: was the balkanization of a university like this um, the

624
00:32:11,480 --> 00:32:16,040
Speaker 1: extent to which the colleges that comprise it have historically

625
00:32:16,080 --> 00:32:20,920
Speaker 1: operated in their own uh stovepipe, so to say, UM,

626
00:32:20,960 --> 00:32:23,400
Speaker 1: and you know, trying to bring about there's a virtues

627
00:32:23,480 --> 00:32:25,880
Speaker 1: to that, but also trying to bring about a measure

628
00:32:25,920 --> 00:32:33,120
Speaker 1: of collective um an institutional action. UH is is that challenge.

629
00:32:33,160 --> 00:32:35,880
Speaker 1: But we're getting it done and UH we think Purdue

630
00:32:36,000 --> 00:32:39,040
Speaker 1: is moving forward on all fronts. I'm fascinated by your

631
00:32:39,080 --> 00:32:41,680
Speaker 1: Capelan acquisition, folks. This was the crown jewel of the

632
00:32:41,680 --> 00:32:44,920
Speaker 1: Washington Post. Every parent knows that your kids are behind

633
00:32:44,960 --> 00:32:47,200
Speaker 1: You got to figure it out. They get tutored, they

634
00:32:47,200 --> 00:32:51,960
Speaker 1: get tested at Caplan University? Is Caplan University? A threat

635
00:32:52,000 --> 00:32:55,600
Speaker 1: to your professors? Is Caplan University? Someone who's going to

636
00:32:55,760 --> 00:33:00,320
Speaker 1: drive that two hundred eighty dollar differential equation text looked

637
00:33:00,600 --> 00:33:05,000
Speaker 1: down to something reasonable like say, I don't think it's

638
00:33:05,040 --> 00:33:07,680
Speaker 1: a threat. I think it's an important third dimension to produce.

639
00:33:07,720 --> 00:33:11,240
Speaker 1: Historic mission we produce exists on two levels. Right now.

640
00:33:11,320 --> 00:33:17,000
Speaker 1: The flagship research one world world renowned campus I'm speaking

641
00:33:17,000 --> 00:33:20,160
Speaker 1: to you from, but we also have regional campuses which

642
00:33:20,160 --> 00:33:24,400
Speaker 1: aim at a very different audience around Indiana. UM Generally

643
00:33:24,440 --> 00:33:27,760
Speaker 1: students who choose to or can't afford to move somewhere

644
00:33:27,840 --> 00:33:30,480
Speaker 1: but want to live at home, probably work as as

645
00:33:30,480 --> 00:33:35,600
Speaker 1: they study. Kaplan UH soon to be a third UH

646
00:33:35,400 --> 00:33:40,400
Speaker 1: UH component of Purdue. UH serves a totally different audience

647
00:33:40,400 --> 00:33:43,480
Speaker 1: than the one our faculty here works with. The average

648
00:33:43,520 --> 00:33:46,440
Speaker 1: student is well into her thirties. Three quarters of the

649
00:33:46,480 --> 00:33:49,960
Speaker 1: time she it is a it is a she and

650
00:33:50,000 --> 00:33:54,680
Speaker 1: not a not a man um and they are much

651
00:33:54,720 --> 00:33:58,120
Speaker 1: more focused as they should be, on curriculum that aims

652
00:33:58,160 --> 00:34:01,920
Speaker 1: directly at the market place and helping somebody improve their

653
00:34:02,600 --> 00:34:06,320
Speaker 1: their economic circumstances in life. So no, it's not a threat.

654
00:34:06,720 --> 00:34:08,520
Speaker 1: I hope it's going to be a new emblem of

655
00:34:08,600 --> 00:34:12,960
Speaker 1: pride along the way. Perdue acquires capabilities we don't have

656
00:34:13,040 --> 00:34:16,160
Speaker 1: and couldn't build. U that is the state of the

657
00:34:16,280 --> 00:34:21,840
Speaker 1: art UH techniques for delivering education digitally and online. But

658
00:34:21,920 --> 00:34:24,440
Speaker 1: there's a case and you you have this, David Gerry

659
00:34:24,480 --> 00:34:27,600
Speaker 1: had this, I had this. A cadence to our academics.

660
00:34:28,040 --> 00:34:30,960
Speaker 1: The new cadence is give me the course load. Let's go.

661
00:34:31,040 --> 00:34:34,279
Speaker 1: I gotta crunch through it and take a test that

662
00:34:34,400 --> 00:34:37,680
Speaker 1: you know. I perceived capital as being somewhat like the

663
00:34:38,160 --> 00:34:41,719
Speaker 1: twenty years about ten years from now, is that academic

664
00:34:41,880 --> 00:34:47,360
Speaker 1: fall winter, the spring term? When is homecoming. Is that

665
00:34:47,400 --> 00:34:50,080
Speaker 1: all going to be gone? I can't say that it won't.

666
00:34:50,239 --> 00:34:53,960
Speaker 1: My suspicion is that there will be a durability about

667
00:34:54,000 --> 00:34:58,200
Speaker 1: the residential model. It will depend on the ability of

668
00:34:58,400 --> 00:35:02,719
Speaker 1: schools like ours to add value that cannot be replicated

669
00:35:02,719 --> 00:35:08,759
Speaker 1: by the even the most stunning new technology. And we find,

670
00:35:08,800 --> 00:35:12,760
Speaker 1: for instance, that our our faculty now to achieve promotion

671
00:35:12,800 --> 00:35:17,080
Speaker 1: and tenure must demonstrate that in addition to scholarship and teaching,

672
00:35:17,120 --> 00:35:21,600
Speaker 1: they have mentorward or otherwise and uh spent personal uh

673
00:35:22,080 --> 00:35:24,959
Speaker 1: time and effort in the growth of young people. Why

674
00:35:25,040 --> 00:35:29,280
Speaker 1: because we know that that's associated better outcomes later in life.

675
00:35:29,719 --> 00:35:34,320
Speaker 1: Research involvement in research is another good example. But the

676
00:35:34,640 --> 00:35:38,080
Speaker 1: chore will be to stay ahead of online with with

677
00:35:39,239 --> 00:35:42,880
Speaker 1: enrichments that are that are unique to the residential experience.

678
00:35:42,920 --> 00:35:45,600
Speaker 1: But you could be right, and if that's the case,

679
00:35:45,800 --> 00:35:49,640
Speaker 1: if online takes over, UM, we want to be prepared

680
00:35:49,640 --> 00:35:52,719
Speaker 1: to feed in it. Governor Daniels, thank you so much.

681
00:35:52,719 --> 00:35:55,720
Speaker 1: He's a president for due at university. We take interest

682
00:35:55,760 --> 00:35:58,920
Speaker 1: in that it. Surveillance is our executive producer, the person

683
00:35:59,000 --> 00:36:03,160
Speaker 1: that makes David's in my world run each and every day.

684
00:36:03,440 --> 00:36:06,359
Speaker 1: Rachel boilers up pitch in every Day is a proud

685
00:36:06,440 --> 00:36:19,799
Speaker 1: graduate of Mr Daniels Purdue University. Thanks for listening to

686
00:36:19,800 --> 00:36:24,520
Speaker 1: the Bloomberg Surveillance podcast. Subscribe and listen to interviews on

687
00:36:24,719 --> 00:36:30,279
Speaker 1: Apple Podcasts, SoundCloud, or whichever podcast platform you prefer. I'm

688
00:36:30,320 --> 00:36:34,120
Speaker 1: on Twitter at Tom Keene. David Gura is at David Gura.

689
00:36:34,560 --> 00:36:38,440
Speaker 1: Before the podcast, you can always catch us worldwide. I'm

690
00:36:38,480 --> 00:36:52,439
Speaker 1: Bloomberg Radio, brought you by Bank of America Mary Lynch.

691
00:36:52,560 --> 00:36:56,799
Speaker 1: Dedicated to bringing our clients insights and solutions to meet

692
00:36:56,840 --> 00:37:00,160
Speaker 1: the challenges of a transforming world. That's the power were

693
00:37:00,280 --> 00:37:04,960
Speaker 1: of global Connections. Mary Lynch, Pierce, Fenner and Smith Incorporated

694
00:37:05,080 --> 00:37:06,719
Speaker 1: Member s I p C