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Speaker 1: Live from our nation's capital. This is Bloomberg's sound On.

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Speaker 1: We're gonna talk all about the policy prescriptions of the

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Speaker 1: Biden administration. We're not going to hear anymore about Operation

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Speaker 1: warp Speeds. They're gonna be calling it the COVID response.

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Speaker 1: We're talking right now about jockeying amongst Republicans. Bloomberg Sound on,

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Speaker 1: the insiders, the influencers, the insiders siding has commented again

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Speaker 1: and again that he will unite the country. Who would

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Speaker 1: you think Biden has to watch in terms of moderate detectors.

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Speaker 1: The House has been voting for this stimulus packet basically

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Speaker 1: for months. Bloomberg is sound On with Kevin Surreley on

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Speaker 1: Bloomberg Radio. Robin Hood gets ready to come to Washington.

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Speaker 1: We've got the testimony ahead of tomorrow's bombshell hearing before

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Speaker 1: the House of Representatives, and an exclusive conversation You really

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Speaker 1: don't want to miss those with former Chief of Staff

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Speaker 1: to none other than Donald Trump. McK mulvaney joins me,

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Speaker 1: you don't want to miss that conversation. We've got an

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Speaker 1: all star show, plus the latest on what's going on

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Speaker 1: in Texas, how it's influencing the market. The energy markets,

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Speaker 1: and what it means for folks finally getting the power

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Speaker 1: turned back on. Local reports suggests they might have to

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Speaker 1: wait until next week. We begin tonight with dueling stories

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Speaker 1: that have the attention of the Biden administration and have

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Speaker 1: upended the policy discourse here in the nation's capital. None

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Speaker 1: other than, of course, the COVID nineteen situation and the

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Speaker 1: situation down in Texas with folks losing power. President Biden

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Speaker 1: told a CNN town hall last night that he estimates

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Speaker 1: every American will be able to get their COVID nineteen

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Speaker 1: vaccine by the end of July. I've got sounds on this.

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Speaker 1: Let's take alism. By next Christmas, I think will be

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Speaker 1: in a very different circumstance, God willing than we are today.

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Speaker 1: It's an important nuance to know that the White House,

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Speaker 1: for many ways, was playing defense today on the communications

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Speaker 1: front as they try to make their message known as

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Speaker 1: to whether or not teachers need to be vaccinated as

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Speaker 1: the CDC guidelines have suggested before schools reopened. This as

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Speaker 1: the Biden administration says that they are determined to get

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Speaker 1: an increasing number of schools to be reopened. Jen Psaki

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Speaker 1: spoke at the White House briefing earlier today and noted

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Speaker 1: about an ever changing timeline for the expected return to normalcy.

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Speaker 1: I've got sound on the extended timeline. Take a listen.

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Speaker 1: Vaccine hesitancy remains a challenge. Uh. We need to ensure

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Speaker 1: that that everybody who can get a dose is getting

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Speaker 1: a dose. The President wants things to return to normal,

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Speaker 1: as we all do. But we uh we, we don't

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Speaker 1: know at this point what that timeline is going to

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Speaker 1: look like. The timeline is murky, and it's particularly frustrating

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Speaker 1: for Texans where FEMA is sending water and blankets to

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Speaker 1: Texas and other parts of the south central United States

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Speaker 1: where people are freezing at homes without power, and this

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Speaker 1: is after back to back winter storms and they're getting

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Speaker 1: the blame for widespread utility outages at the request of

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Speaker 1: state officials. That announcement from White House Press Secretary Jen

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Speaker 1: Sagi again more sound on the situation down in Texas.

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Speaker 1: Take a lisson. We remain in close contact with states

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Speaker 1: across the affected area to ensure any federal support requirements

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Speaker 1: are met. FEMA has supplied generators to Texas and is

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Speaker 1: preparing to move diesel into the state to ensure the

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Speaker 1: continued availability of backup power. I want to bring into

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Speaker 1: the conversation Bloomberg Politics contributor Rick Davis and Michael Hardaway,

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Speaker 1: a political strategist and the founder of Hardaway Wire. He

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Speaker 1: is the former spokesman to Congressman Hakim Jeffreys. Both of

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Speaker 1: these our panelists tonight, our consummate Washington Washington insiders, and

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Speaker 1: I'm thrilled to have them on for the panel. All Right,

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Speaker 1: I mean, Rick, I gotta start with you here. It

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Speaker 1: seems that there's a different tone in Washington, and and

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Speaker 1: not just in terms of the messaging, but in terms

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Speaker 1: of the pressure now that the Biden administration is facing

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Speaker 1: as there's amounting crisis happening in Texas and this severe

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Speaker 1: questions about vaccination distribution. Yeah, I think the two combine

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Speaker 1: in in a pretty uh impactful way. What you just

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Speaker 1: described to the listeners was a situation in Texas where

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Speaker 1: you know, people's basic life needs are are barely being

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Speaker 1: met if if if are over two dozen dead already.

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Speaker 1: This is an emergency situation, and you can only imagine

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Speaker 1: the stress that that then puts on the vaccine effort.

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Speaker 1: Where Texas is, you know, such a huge state with

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Speaker 1: two hundred and fifty four counties, all of which we're

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Speaker 1: trying to vaccinate uh COVID UH patients or you know,

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Speaker 1: potential COVID patients, And and so I think it creates

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Speaker 1: an urgency there that we haven't seen throughout this COVID year.

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Speaker 1: I mean, you know, it was a weather event totally

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Speaker 1: out of the control of the people in Texas who

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Speaker 1: are managing things like the power grid. But but they're

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Speaker 1: they're dealing with it in a way that I think,

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Speaker 1: um uh, it is really going to draw a lot

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Speaker 1: of scrutiny over the next couple of weeks. You know,

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Speaker 1: there's a redheadline crossing the Bloomberg terminal. Just within the

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Speaker 1: last minute, Texas banned natural gas companies from taking fuel

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Speaker 1: out of state. And again, a remarkable redheadline crossing the

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Speaker 1: Bloomberg Terminal just within the last several minutes, Texas has

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Speaker 1: banned natural gas companies from taking fuel out of the state.

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Speaker 1: Our producer Matt Shirley providing some important context from the

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Speaker 1: Texas Tribune, which notes that natural gas extraction has all

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Speaker 1: but stopped a massive development on this evolving story. And again, folks,

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Speaker 1: I mean, in journalism, we try not to conflate the stories,

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Speaker 1: but here from the nation's capital. It is a dueling

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Speaker 1: one too political punch in terms of the COVID crisis

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Speaker 1: now with the Texas crisis, Texas largely relies on natural

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Speaker 1: gas for power. It wasn't ready for the extreme old

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Speaker 1: That's the headline today from Aaron Douglas is reporting and

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Speaker 1: the Texas Tribune. Michael Hardaway come in here about how

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Speaker 1: this energy crisis down in Texas, combined with the pandemic,

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Speaker 1: the humanitarian impacts, how all of this is just an

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Speaker 1: unfortunate perfect storm of catastrophe. Joe Biden has walked into

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Speaker 1: this morass of chaos with the mounting desks from COVID

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Speaker 1: and the lack of infrastructure for a vaccine distribution along

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Speaker 1: with this new horrific crisis in Texas. I think the

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Speaker 1: good thing for him is that he has a chief

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Speaker 1: of staff who is a consummate expert at handling these things,

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Speaker 1: and Ryan Claine, who was a critical part of the

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Speaker 1: Obama administration's Ebola response. I think that he is someone

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Speaker 1: who understands from an infrastructure perspective, how to address these matters,

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Speaker 1: and so I think that we are in good hands

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Speaker 1: in terms of how to fix this. This afternoon, FEMA

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Speaker 1: has declared UH an emergency. So situation in Texas, and

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Speaker 1: the administrations has been sending generators and diesel fuel and

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Speaker 1: blankets and that sort of thing to Texas, and so

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Speaker 1: I think we're starting to become on the path to

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Speaker 1: fix that situation. But make no mistake about it, this

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Speaker 1: is a massive crisis that the President has on his hands.

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Speaker 1: I was really struck, folks, So pay attention to this.

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Speaker 1: I was struck by this because if I mean, we've

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Speaker 1: all lost power at one point or another in our lives,

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Speaker 1: but this reporting in the Bloomberg terminal, I mean, get ready,

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Speaker 1: the crisis that has knocked out power for days two

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Speaker 1: millions of homes and businesses in Texas and across the

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Speaker 1: central US is getting worse, with blackouts expected to last

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Speaker 1: until at least Thursday. Texas is grid operator cut power

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Speaker 1: to two point eight million homes Wednesday, Rick and just

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Speaker 1: hours after restoring service to seven hundred thousand households, I mean,

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Speaker 1: and then in the Texas Tribune it's is by some estimates,

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Speaker 1: nearly half of the state's natural gas production has screeched

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Speaker 1: to a halt due to the extremely low temperatures. I mean,

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Speaker 1: if this doesn't, if this doesn't illustrate America's blind spot

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Speaker 1: in terms of energy infrastructure, I don't know. I don't

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Speaker 1: want to know what will Rick Davis? Yeah, I think

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Speaker 1: this will really energize those people on Capitol Hill who

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Speaker 1: have for a long time been preaching a better infrastructure,

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Speaker 1: especially with electric power grid. And and I think it's

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Speaker 1: really important for listeners to note that one of the

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Speaker 1: drivers around this ban on export of natural gas is

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Speaker 1: that the pipelines that move natural gas require a certain

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Speaker 1: amount of tonnage to go through them. If it drops

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Speaker 1: below that, all the gas stops flowing. And so Texas

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Speaker 1: has done the analysis and they are they are close

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Speaker 1: to losing the pressure in their pipeline, one of the

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Speaker 1: most extensive gas pipelines in the world. And and it's

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Speaker 1: just because they're using so much, as you described, Kevin,

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Speaker 1: so much of this gas to to be able to

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Speaker 1: fuel the power needs in the in the heat, that

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Speaker 1: that they can no longer now afford on a humanitarian

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Speaker 1: basis to have any of that gas leave they leave

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Speaker 1: the state. Imagine, imagine just for a second, folks, if

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Speaker 1: you're not in Texas, not having power for a week

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Speaker 1: in the middle of a pandemic. Imagine being laid off

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Speaker 1: and not having power for a week in the middle

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Speaker 1: of a pandemic, no internet, no way to get your

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Speaker 1: job resume out there. I mean this, this is it.

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Speaker 1: It's it's and and the and freezing cold temperatures on

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Speaker 1: top of that. I mean it's it's really cascading is

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Speaker 1: the right word for it. Uh. Reading from my colleagues

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Speaker 1: reporting on the terminal, Get this, Michael Hardaway, US oil

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Speaker 1: production has plunged by nearly forty percent. Again, I got,

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Speaker 1: I gotta, I gotta ask you the question. Michael Hardaway.

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Speaker 1: You know this. You know the Democratic caucus better than

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Speaker 1: anyone I I talked to an interview. They're gonna be

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Speaker 1: centrist Democrats who are gonna say, you know what, enough

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Speaker 1: talk of the rescinding of some Trump era executive orders

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Speaker 1: on the environment, and we got to get more talk

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Speaker 1: about energy infrastructure. I think you absolutely have to do that.

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Speaker 1: But I would argue we have an opportunity, and that

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Speaker 1: the conversation about a nationwide infrastructure plan has already begun,

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Speaker 1: and so perhaps this is an opportunity to have a

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Speaker 1: smarter infrastructure plan. That has bipartisan by in and it's

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Speaker 1: a real opportunity to have a conversation about the marriage

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Speaker 1: between clean energy and oil and gas and the fact

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Speaker 1: that the two should coexist. And you know, if you

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Speaker 1: look at Texas specifically, the real issue here is that

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Speaker 1: Texas was the perfect storm and that it is the

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Speaker 1: only state in the Union that uses its own independent

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Speaker 1: power grid. And and so this has happening part because

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Speaker 1: there's been no real oversight in terms of making sure

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Speaker 1: that their power god was prepared for a cold weather

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Speaker 1: storm such as what you have encountered. And I think

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Speaker 1: that the overall narrative here is that this is an

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Speaker 1: opportunity to do this the right way, when you know,

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Speaker 1: perhaps without this crisis, perhaps without um, the COVID crisis

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Speaker 1: and others, we may have gone about this the old way,

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Speaker 1: the same way, which was not a smart way. And

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Speaker 1: so maybe this is better hardaway, stays Rick Davis stays

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Speaker 1: this stat jumping out of me. I've got the chart

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Speaker 1: on my terminal. Crude output has plunged by four million

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Speaker 1: barrels a day. That's the most ever. According to traders

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Speaker 1: and industry executives with direct knowledge of the operations, the

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Speaker 1: most ever, plus a million people without power in Mexico.

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Speaker 1: I'm Kevin severally much more coming up next. Mcmlvanny's gonna

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Speaker 1: join me. Don't miss it. This is Bloomer. This he's

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Speaker 1: Bloomberg Sound on Bloomberg Radio. My name is Kevin Cereli.

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Speaker 1: I'm the chief Washington correspondent for Bloomberg Television and for

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Speaker 1: Bloomberg Radio. We've got Bloomberg Politics contributor Rick Davis with

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Speaker 1: us and Michael Hardaway. I was looking at a text

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Speaker 1: message from my dad from the other the other day,

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Speaker 1: and uh, it's Ash Wednesday. If you're Catholic, and you

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Speaker 1: know I'm being doing the whole socially distant thing, you know,

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Speaker 1: holding my breath, wearing my double masks, washing my hands,

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Speaker 1: trying not to touch my face, you get it. So, uh,

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Speaker 1: my dad's been streaming mass. He sends me a text

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Speaker 1: and he goes, you know, I'm getting the hang of

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Speaker 1: this streaming mass thing. I fast forward through all the songs.

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Speaker 1: I said, Hey, whatever gives that's the difference between Kevin

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Speaker 1: Cirelli and his father. I would fast forward through the

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Speaker 1: readings to hear the music. Hell, fast forward through the

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Speaker 1: through the through the music to get the readings. Anyway,

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Speaker 1: let's talk stimulus. Nick Mulvaney's coming up um stimulus front.

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Speaker 1: Last night in a CNN town hall hosted by Anderson Cooper,

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Speaker 1: President Joe Biden outlined as COVID relief plan before a

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Speaker 1: live audience in Milwaukee, and Biden says he wants nearly

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Speaker 1: two trillion dollars as we know, the one point nine

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Speaker 1: trillion dollar COVID relief plan to go through. But some

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Speaker 1: people there were still feeling, uh, it's a nervous nervousness

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Speaker 1: about about the price. And I was struck and we're

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Speaker 1: gonna go in the weeds here. I was struck by

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Speaker 1: what President Biden had to say about raising the minimum wage.

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Speaker 1: We know we want it, and the current proposal to

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Speaker 1: be fifteen dollars an hour. Take a listen to the

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Speaker 1: sound on tape from this and here's the sound on

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Speaker 1: the minimum wage from President Biden last night in Milwaukee.

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Speaker 1: Here is no when she worked forty hours a wee

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Speaker 1: can live in poverty. Know when she worked fourty hollars,

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Speaker 1: reisim and prods. But it's totally legitimate for small business

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Speaker 1: owners to be concerned about how that changes it's the

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Speaker 1: last line, Rick Davis, that really caught my attention, because

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Speaker 1: he went on to talk about raising the minimum wage

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Speaker 1: over the next couple of years, not immediately, over the

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Speaker 1: next couple of years, to twelve or thirteen dollars an hour,

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Speaker 1: up from the current UH seven and a quarter that

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Speaker 1: it's at right now. Twelve and thirteen dollars an hour

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Speaker 1: by four is very different than an immediate fifteen dollar height. Clearly,

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Speaker 1: main Street America is is their message is getting through

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Speaker 1: to the White House about an immediate raise. What that

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Speaker 1: would do to small business is Rick Davis. Yeah. And

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Speaker 1: I think it's probably getting through to Nancy Pelosi, who's

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Speaker 1: shepherding this bill through her Congress and due to get

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Speaker 1: a vote on next week. And and here's the President

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Speaker 1: United States throwing his own policy under the bus. Uh.

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Speaker 1: I think he's realizing that it's the weakest part of

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Speaker 1: the program. Uh. He's got two senators from his own party,

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Speaker 1: Sentator Cinema and Center Mansion in the in the House

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Speaker 1: in Senate, both who said they're not for a fifteen

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Speaker 1: dollar minimum wage. Without them, he's got no chance of passage.

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Speaker 1: So I think it's the practical political reality has come

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Speaker 1: home to the White House, and he's basically laying the

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Speaker 1: groundwork for not a loss, but a retrade. I gotta

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Speaker 1: get up my glasses for this because I you know,

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Speaker 1: my eyesight because of all the screen time. So bear

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Speaker 1: with me, folks are here. It is. I got the transcript.

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Speaker 1: Michael Hardaway, who's with us, who worked used to work

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Speaker 1: for Hakim Jeffreys, who's in leadership in the Democratic Caucus,

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Speaker 1: increased direct quote from Biden. Increase the minimum wage from

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Speaker 1: seven twenty five an hour between now in the year

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Speaker 1: to twelve dollars an hour to thirteen dollars an hour.

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Speaker 1: You double someone's pay and the impact on business would

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Speaker 1: be absolutely minimal, and it would grow g d P.

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Speaker 1: You know these negotiations, Michael Hardaway did he just kind

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Speaker 1: of say, all right, I hear you. We might not

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Speaker 1: be able to get the fifteen, but maybe twelve and

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Speaker 1: thirteen over a couple of years time. Joe Biden is

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Speaker 1: standing in the middle and he's getting pulled on one

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Speaker 1: side and pulled on the other. What he's saying is,

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Speaker 1: let's school about this in a smart way. I think

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Speaker 1: the progressive wing of the Caucus would say, we want

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Speaker 1: fifteen dollars tomorrow. That's not reasonable for both small business owners,

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Speaker 1: and I think the elation that Joe Biden is advocating

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Speaker 1: here is a smarter way to go. And to be

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Speaker 1: perfectly honest with you, I think most people would say

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Speaker 1: that seven dollars an hour is insufficient for a minimum

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Speaker 1: wage in especially when you've had a skyrocket and productivity

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Speaker 1: over the past forty years or so and wages have

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Speaker 1: not kept pace with that. And so I think Joe

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Speaker 1: Biden's way is the smart way and it will get done.

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Speaker 1: I think progressives have to relax and trust him and

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Speaker 1: allow him to steer that ship. I would say the

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Speaker 1: Nancy Pelosi right now is probably getting calls from the

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Speaker 1: Progressive we're gonna caucus wanting this to get done tomorrow.

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Speaker 1: But that's just not a reasonable way to go about it,

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Speaker 1: you know, and coming off and Mick mulvany joins us,

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Speaker 1: we're gonna ask him about this. I thought Heather Long

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Speaker 1: in the Washington Post really had an important piece that

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Speaker 1: headlines millions of jobs probably aren't coming back even after

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Speaker 1: the pandemic ends, and she goes on to report millions

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Speaker 1: of jobs, mostly low skilled jobs, likely won't come back

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Speaker 1: even after the pandemic ends. The US needs to invest

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Speaker 1: heavily in retraining, economists say, Yet the one point nine

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Speaker 1: trillion dollars stimulus bill has zero dollars that are being

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Speaker 1: allocated for retraining. Just quickly, Rick Davis, retraining and transitioning

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Speaker 1: folks to new types of sectors is just absolutely crucial.

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Speaker 1: I agree with Heather in the Washington Post. I don't

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Speaker 1: think that there's enough policymakers talking about this with the

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Speaker 1: stimulus Kevin, You're right. I think we keep having the

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Speaker 1: debate over the economy had two years ago, not the

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Speaker 1: economy we have today, and especially not with these jobs

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Speaker 1: numbers that are actually getting worse rather than getting better

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Speaker 1: right now. Sectors like hospitality, food and beverage, things like that. Uh,

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Speaker 1: it may never come back. Airlines, and so the auction

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Speaker 1: is what do those people do? I mean, they're not

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Speaker 1: all going to go looking for jobs for fifteen dollars

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Speaker 1: an hour. Yeah, McKenzie has a report on that, all right,

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Speaker 1: Nick mulbheney coming up back, Tom Kevin's really this is

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Speaker 1: Bloomberg broadcasting line from our nation's capital, Bloomberg to New

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Speaker 1: York Bloomberg. Eleven Frio to San Francisco, Bloomberg to the Country,

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Speaker 1: Sirius XM General one nine and around the globe, the

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Speaker 1: Bloomberg Business app and Bloomberg Radio dot Com. This is

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Speaker 1: Bloomberg Sound On with Kevin's really a lot of tells me.

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Speaker 1: Nick Mulvagney's on the line. I'm accompanied by Bloomberg Politics

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Speaker 1: contributor Rick Davis uh and, and we're thrilled to welcome

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Speaker 1: back to a program someone who I've covered now for

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Speaker 1: close to a decade, the former President Donald Trump's chief

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Speaker 1: of staff, Mick mulvaney. Mick, what have you been up

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Speaker 1: to since, uh, the post Trump era has begun? Hey, Kevin,

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Speaker 1: mostly regretting the fact that when I started the Bitcoin

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Speaker 1: caucus in Congress in two thousand and eleven, and it

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Speaker 1: was two dollars that I didn't buy any Um. I

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Speaker 1: was fascinated by it and got into it and followed

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Speaker 1: it ever since, but didn't actually buy any because I

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Speaker 1: thought it would be inappropriate to do that and then

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Speaker 1: start a caucus. So I remember asking you in the

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Speaker 1: halls of Rayburn trying to explain to me what is bitcoin?

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Speaker 1: And don't tell my boss. But I'm still kind of confused.

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Speaker 1: As to what a bitcoin is. Go ahead, Yeah, no,

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Speaker 1: it's it's fine. We're some down in South Caroline, a

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Speaker 1: good bit um have been dabbling in a couple of things,

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Speaker 1: still trying to figure out what I want to be

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Speaker 1: when I grow up. Started a hedge fund with a

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Speaker 1: buddy of mine, focusing on financial services. We still think

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Speaker 1: that most folks, and you know this, Kevin as well

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Speaker 1: as anybody, people think they understand Washington. But until you've

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Speaker 1: lived it and been there for a while, it's not

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Speaker 1: like any other thing. And you can't sit in New York,

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Speaker 1: or sit in Los Angeles or sitting in London and

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Speaker 1: understand Washington, d C. And as the government gets bigger

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Speaker 1: and bigger and regulations um grow was there invariably going

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Speaker 1: to do under the the Biden administration that it you know,

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Speaker 1: it might create opportunities for investment, So we'll see. I

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Speaker 1: always tell people it's like alphabet suit down here. The CFPB,

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Speaker 1: which you lad at one point, much to Senator Elizabeth

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Speaker 1: Warren's uh dismay um, and the CFPB, the FTC, the CFTC.

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Speaker 1: You know, it's like your headel spin is when you

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Speaker 1: when you try to get acclimated to the to the

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Speaker 1: lay of the land. All Right, I gotta ask you

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Speaker 1: about this because former President Trump actually gave his first

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Speaker 1: interview today to Fox News. He called into Fox News,

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Speaker 1: uh to to uh acknowledge the passing of Russia. Limba,

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Speaker 1: I'll take a listen to what he said. Here's the

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Speaker 1: sound on it. Russia's every place to go. Unique. He

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Speaker 1: had an audience that was massive. He was a fantastic man,

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Speaker 1: fantastic talent, and people, whether they loved him or not,

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Speaker 1: they respected him. It's interesting to to just follow the

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Speaker 1: past forty eight hours of the Republican Party of view

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Speaker 1: of which are an important part in it. You've got

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Speaker 1: McConnell versus Trump and the search for an identity. Uh,

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Speaker 1: you know how the media frames it. So, I mean,

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Speaker 1: how what should Trump do next as we head into

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Speaker 1: the mid terms and head into a new cycle. Um,

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Speaker 1: A couple of different things. That's the first time I

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Speaker 1: did not see the President was on TV today. I

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Speaker 1: wasn't aware he was gonna be on there. I don't

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Speaker 1: know if it was pre scheduled, because you know, we

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Speaker 1: didn't I think, no, it wasn't. Passing was sort of

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Speaker 1: It's not unexpected, but didn't know what's gonna happen today.

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Speaker 1: By the way, what you just heard Kevin is real

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Speaker 1: and sincere. Um. The President had a real affinity for

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Speaker 1: Rush limball Um. I've played golf with a gentleman with

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Speaker 1: both of them together many times, and the President really

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Speaker 1: really liked rush Um and the Rush like the President,

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Speaker 1: I got along Grape they you know, they love politics

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Speaker 1: and they loved media and they love golf. So Um,

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Speaker 1: there was a real affinity between those two guys, and

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Speaker 1: it was it's nice to listen to the president uh

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Speaker 1: talk like that, because not everybody always got a chance

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Speaker 1: to see that side of the president. He was that

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Speaker 1: that is a sincere, sincere type of emotion that you

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Speaker 1: don't get a chance to see oftentimes when you go

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Speaker 1: to a rally or something like that. So I'm glad

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Speaker 1: to see and it's it's a very different tone. It's

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Speaker 1: a very different tone than the than the the statement

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Speaker 1: he released yesterday about Mitch McConnell. So you asked me

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Speaker 1: a question, what does he need to do more of

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Speaker 1: more of that? Um, because that's again I'm just listening

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Speaker 1: to it for the first time. But that's the president

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Speaker 1: that I knew. Uh, you know, certainly with the beat

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Speaker 1: up on McConnell stuff that we that's the president as well.

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Speaker 1: There's no question about it, and I think everybody recognizes that.

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Speaker 1: I don't think enough people recognize that what they saw

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Speaker 1: today or what you just heard from President Trump about

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Speaker 1: Rush Limbaugh is the president as well. Hey, make this

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Speaker 1: Rick the US. I do want to take the opportunity

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Speaker 1: to follow up though, on the point that Kevin just

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Speaker 1: made about there's another guy who got some treatment by

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Speaker 1: Donald Trump. You have saying you're right. I mean, if

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Speaker 1: it could only all be like today, we'd we'd we'd

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Speaker 1: be great. But his other close partner who doesn't play golf,

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Speaker 1: but who passed a historic number of conservative judges into

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Speaker 1: the judiciary all around the country. Uh, an incredible legacy

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Speaker 1: for both gentlemen. Mitch mcconom Donald Trump have a feud

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Speaker 1: going on, and I'm curious how you see that shaping

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Speaker 1: the party. I mean, is this going to play out

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Speaker 1: in primaries? Um, let's look at it this way. Put

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Speaker 1: I'll put my Republican partisan hat on. You know, I'm

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Speaker 1: not I'm not an administration anymore. I'm not elected. I'm

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Speaker 1: a private citizen. Really, put my Republican hat on here

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Speaker 1: for a second. I think one of the things that

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Speaker 1: I hope that we've learned out of the election, UM,

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Speaker 1: was that politics is a game of addition, not subtraction.

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Speaker 1: What do I mean by that? There's a really good

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Speaker 1: chance that we lost Arizona because of the personal vendetta

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Speaker 1: against John McCain. I'm not sure what we gained by that,

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Speaker 1: but I'm pretty sure what we lost by that. UM.

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Speaker 1: Fast forward to today. I'm not sure what the what

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Speaker 1: the president gains, UM, and what the party gains by

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Speaker 1: by attacking UM. Mitch McConnell. I understand what he might lose.

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Speaker 1: There might be folks who like Mitch McConnell who now

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Speaker 1: are gonna wonder, Wait a second, do I have to

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Speaker 1: take between Mitch McConnell and the president. UM? And that

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Speaker 1: doesn't add anybody to to the base. It doesn't add

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Speaker 1: anybody to the President's side of the ledger, doesn't ad

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Speaker 1: anybody to the Republican side of the ledger. UM. So listen,

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Speaker 1: I get it, and uh, the presidents the president, you know,

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Speaker 1: he'd always used to tell me when I give advice

429
00:24:31,280 --> 00:24:33,199
Speaker 1: like this, he'd look, he raised his eyebrow and say so,

430
00:24:33,240 --> 00:24:35,440
Speaker 1: tell me, Mayke, have you've been elected president? Nited stage like, no,

431
00:24:35,560 --> 00:24:39,919
Speaker 1: Mr President, I have not. Where he's got where he

432
00:24:40,040 --> 00:24:43,120
Speaker 1: is being himself? Um, But you know, maybe we look

433
00:24:43,160 --> 00:24:46,479
Speaker 1: back at the examples of such things as Arizona and

434
00:24:46,640 --> 00:24:49,919
Speaker 1: ask ourselves, okay, um, how do we how do we

435
00:24:50,040 --> 00:24:53,360
Speaker 1: vent our frustrations and and and have family discussions about

436
00:24:53,359 --> 00:24:56,480
Speaker 1: things we disagree with without turning people off? Well, listen,

437
00:24:56,520 --> 00:24:58,159
Speaker 1: I gotta be honest here and and we are going

438
00:24:58,200 --> 00:25:00,840
Speaker 1: to get the policy. But but I book to a

439
00:25:00,920 --> 00:25:07,040
Speaker 1: previous administration official earlier today from the Trump administration, and

440
00:25:07,040 --> 00:25:09,000
Speaker 1: and you know, the source asked me not to use

441
00:25:09,040 --> 00:25:12,320
Speaker 1: the name. And you know you can roll your eyes

442
00:25:12,320 --> 00:25:14,200
Speaker 1: with that if you're listening. I get it. But then

443
00:25:14,200 --> 00:25:16,600
Speaker 1: I spoke to another source who who's been talking to

444
00:25:16,640 --> 00:25:19,480
Speaker 1: the President throughout this down to Marrow Largo, and both

445
00:25:19,480 --> 00:25:21,439
Speaker 1: of these people are telling me that he has his

446
00:25:21,520 --> 00:25:26,240
Speaker 1: eye on the California potential California runoff and the r

447
00:25:26,320 --> 00:25:29,119
Speaker 1: n C has already poured something like a quarter of

448
00:25:29,119 --> 00:25:33,520
Speaker 1: a million dollars into a recall for Governor Gavin Newsom.

449
00:25:34,080 --> 00:25:37,040
Speaker 1: You know, Mick, you know all of the players here.

450
00:25:37,080 --> 00:25:40,760
Speaker 1: You know the current r n C makeup and and

451
00:25:40,800 --> 00:25:43,480
Speaker 1: where the r n C is at right now? I mean,

452
00:25:44,200 --> 00:25:47,639
Speaker 1: is this something that is openly being discussed or is

453
00:25:47,680 --> 00:25:50,439
Speaker 1: this just a long shot Republican fantasy the way that

454
00:25:50,480 --> 00:25:53,720
Speaker 1: Democrats try to get Texas. But do Republicans actually have

455
00:25:53,760 --> 00:25:58,480
Speaker 1: a shot of taking taking the governorship back from California? Um?

456
00:25:59,240 --> 00:26:01,359
Speaker 1: By the way, when you started saying that, I was

457
00:26:01,400 --> 00:26:03,359
Speaker 1: thinking to myself, Oh, my goodness, are you telling me

458
00:26:03,400 --> 00:26:07,440
Speaker 1: that Donald Trump is thinking about running for governor of California?

459
00:26:07,640 --> 00:26:11,840
Speaker 1: Hit the panic button? That would be fantastic, by the way. Um,

460
00:26:12,000 --> 00:26:14,560
Speaker 1: And I wonder how long he takes to established. He

461
00:26:14,600 --> 00:26:17,520
Speaker 1: owns a home out there, he owns a piece of property,

462
00:26:17,600 --> 00:26:19,560
Speaker 1: So I don't know. But let's assume for a second

463
00:26:19,600 --> 00:26:22,320
Speaker 1: we're not talking about Donald Trump running for governor California,

464
00:26:22,600 --> 00:26:25,359
Speaker 1: which is fascinating, by the way. So let's say Rick Grinnell,

465
00:26:25,480 --> 00:26:28,119
Speaker 1: for example of pun of mind good support of the

466
00:26:28,119 --> 00:26:32,080
Speaker 1: presidents was our ambassador Germany and then our acting Director

467
00:26:32,160 --> 00:26:36,080
Speaker 1: National and of National Intelligence. Uh, great candidate. I think

468
00:26:36,119 --> 00:26:40,000
Speaker 1: one of the things. I think that the conventional wisdom

469
00:26:40,200 --> 00:26:43,280
Speaker 1: was that Newsom was weak and he might be recalled,

470
00:26:43,400 --> 00:26:47,240
Speaker 1: but that he might retain the governorship after the recall

471
00:26:47,560 --> 00:26:50,119
Speaker 1: because there was no Republican to sort of rally around.

472
00:26:50,160 --> 00:26:53,440
Speaker 1: Remember the ballot out there is two is two questions

473
00:26:53,480 --> 00:26:57,480
Speaker 1: on one ballot. Should you recall Newsom in question one?

474
00:26:57,560 --> 00:26:59,880
Speaker 1: And then if so, who would you vote for number two?

475
00:27:00,000 --> 00:27:02,879
Speaker 1: It's all done at the same time. Um. And the

476
00:27:02,920 --> 00:27:05,520
Speaker 1: reason that the Republicans are able to steal this election

477
00:27:05,560 --> 00:27:08,919
Speaker 1: away or that governorship away from Great Davis uh, you

478
00:27:08,960 --> 00:27:10,800
Speaker 1: know ten years ago or so, was because they had

479
00:27:10,920 --> 00:27:13,400
Speaker 1: a big name. They had They had Arnold Schwarzenegger as

480
00:27:13,400 --> 00:27:18,280
Speaker 1: a Republican on that long list. We don't have that

481
00:27:18,400 --> 00:27:20,919
Speaker 1: right now. If Rick Grinnell gets in, you might have

482
00:27:21,000 --> 00:27:24,119
Speaker 1: it because not only is Rick's formidable in his own right,

483
00:27:24,160 --> 00:27:26,440
Speaker 1: credible in his own right, he would absolutely bring that

484
00:27:26,560 --> 00:27:28,800
Speaker 1: the full backing of Donald Trump into that race. And

485
00:27:28,920 --> 00:27:31,520
Speaker 1: that would be fascinating. This is how I know I'm

486
00:27:31,520 --> 00:27:34,920
Speaker 1: a political junkie talking to two political junkies. Because you've

487
00:27:34,960 --> 00:27:38,680
Speaker 1: got Peter Teal out there, You've got the water emission scanned,

488
00:27:38,800 --> 00:27:43,880
Speaker 1: the water emission water issue, emission's issue, big tech. I mean,

489
00:27:43,960 --> 00:27:47,399
Speaker 1: it's in California politics. I mean, I'm telling you, folks,

490
00:27:47,680 --> 00:27:50,879
Speaker 1: that is the story to watch if those signatures go through,

491
00:27:50,920 --> 00:27:53,320
Speaker 1: and we'll know in about three weeks whether or not

492
00:27:53,400 --> 00:27:56,919
Speaker 1: there's gonna be a recall effort in California. All right,

493
00:27:57,080 --> 00:27:59,359
Speaker 1: let me ask you about the stimulus, McK mulvaaney, because

494
00:27:59,400 --> 00:28:01,480
Speaker 1: you are one of the founding members of the House

495
00:28:01,520 --> 00:28:05,000
Speaker 1: Freedom Caucus and you are a member of the House

496
00:28:05,000 --> 00:28:08,679
Speaker 1: Financial Services Committee. You were a political wonk, as I

497
00:28:08,720 --> 00:28:12,000
Speaker 1: recall back in your days in Congress. Uh and one

498
00:28:12,040 --> 00:28:15,560
Speaker 1: point nine trillion dollars and now they're talking about infrastructure spending.

499
00:28:15,600 --> 00:28:18,120
Speaker 1: Is that too much money? Can we afford it? Yeah?

500
00:28:18,119 --> 00:28:20,359
Speaker 1: And you forgot oh and b director, which is really

501
00:28:20,359 --> 00:28:25,200
Speaker 1: well and CFPB go ahead, And Nick, I'm sorry your

502
00:28:25,200 --> 00:28:27,679
Speaker 1: resume is too long, you know, but you don't You

503
00:28:27,720 --> 00:28:29,680
Speaker 1: don't get You don't get to be the budget director

504
00:28:29,720 --> 00:28:31,280
Speaker 1: by wanting to spend money. I mean, that's like, that

505
00:28:31,640 --> 00:28:33,840
Speaker 1: is the position that people you know, you get, you put,

506
00:28:33,920 --> 00:28:35,480
Speaker 1: get put in that position so you can say no

507
00:28:35,600 --> 00:28:39,000
Speaker 1: to people. Uh yeah, Well, let me should answer your question,

508
00:28:39,080 --> 00:28:42,240
Speaker 1: is it too much money? The better answer, my gut

509
00:28:42,240 --> 00:28:44,040
Speaker 1: instinct is yes, it is too much. But the real

510
00:28:44,080 --> 00:28:46,480
Speaker 1: answer I think about, being honest myself, is no, one knows.

511
00:28:47,040 --> 00:28:49,520
Speaker 1: No one knows we have. We have moved well beyond

512
00:28:49,600 --> 00:28:53,120
Speaker 1: all of the economic forecasting models. Anybody who tells you

513
00:28:53,120 --> 00:28:54,880
Speaker 1: you know that they know what's going to happen, they

514
00:28:54,920 --> 00:28:57,520
Speaker 1: are just guessing. At this point, the debt numbers are

515
00:28:57,720 --> 00:29:00,400
Speaker 1: so huge, both in terms of the raw dollars and

516
00:29:00,480 --> 00:29:03,120
Speaker 1: the percentage of GDP the percentage of the overall economy

517
00:29:03,360 --> 00:29:06,960
Speaker 1: percentage of national income for example. UM, we are really

518
00:29:08,280 --> 00:29:12,440
Speaker 1: engaging in an experiment with our our economy and with

519
00:29:12,520 --> 00:29:16,760
Speaker 1: the world economy. I do wish there was some more

520
00:29:16,960 --> 00:29:20,760
Speaker 1: caution and some more sort of conservative with a small

521
00:29:20,800 --> 00:29:23,640
Speaker 1: c approach to this. Keep minding. I don't think all

522
00:29:23,640 --> 00:29:27,000
Speaker 1: the money from the first stimulus package has been spent yet. UM.

523
00:29:27,320 --> 00:29:28,600
Speaker 1: It may be, but as of a couple of weeks

524
00:29:28,600 --> 00:29:30,440
Speaker 1: ago or months ago, it was not. So. I mean,

525
00:29:30,480 --> 00:29:33,240
Speaker 1: we don't have any idea what all this is doing.

526
00:29:33,280 --> 00:29:35,240
Speaker 1: I do know this is that if I had a

527
00:29:35,280 --> 00:29:37,120
Speaker 1: dime for every time I had a Democrat to tell

528
00:29:37,120 --> 00:29:39,760
Speaker 1: me how many jobs they could create by government spending, UM,

529
00:29:40,200 --> 00:29:42,360
Speaker 1: I could pay off the debt. I heard that Joe

530
00:29:42,400 --> 00:29:44,440
Speaker 1: Biden was saying today the two trillion dollars would create

531
00:29:44,480 --> 00:29:46,240
Speaker 1: seven million jobs. By the way, the return on that

532
00:29:46,360 --> 00:29:48,560
Speaker 1: is not very good if you do the math. Um.

533
00:29:48,600 --> 00:29:51,840
Speaker 1: But it's this urgency to spend money that I just

534
00:29:51,880 --> 00:29:54,920
Speaker 1: don't get, and I think what it is. It's not economics.

535
00:29:55,000 --> 00:29:57,800
Speaker 1: It goes back to Roma manuals. Don't let a crisis

536
00:29:57,800 --> 00:30:00,480
Speaker 1: go to waste. These are this is most of this

537
00:30:00,600 --> 00:30:02,360
Speaker 1: money is not going to be steamulus money. Most of

538
00:30:02,360 --> 00:30:06,160
Speaker 1: the money is going to be money to Democrat causes. Um.

539
00:30:06,200 --> 00:30:09,200
Speaker 1: They're paying their political debts and they're using COVID as

540
00:30:09,200 --> 00:30:11,960
Speaker 1: an excuse to do it. Certainly, some of the money

541
00:30:12,160 --> 00:30:14,640
Speaker 1: we'll get to folks who need it. But my guess is, Yuron,

542
00:30:14,760 --> 00:30:17,240
Speaker 1: for now, you'll be hearing story after story after story

543
00:30:17,600 --> 00:30:21,040
Speaker 1: about the next Celindra and the next fraud and all

544
00:30:21,080 --> 00:30:23,360
Speaker 1: of the money that went to all of these huge

545
00:30:23,360 --> 00:30:27,360
Speaker 1: Democrat operations. So that's Washington. That's politics. Um. There are

546
00:30:27,400 --> 00:30:29,920
Speaker 1: no physical conservatives left for the most part in Washington,

547
00:30:30,000 --> 00:30:31,640
Speaker 1: d C. Or at least not nearly enough to change

548
00:30:31,680 --> 00:30:34,000
Speaker 1: a vote. Um. So we're going to continue down this

549
00:30:34,080 --> 00:30:39,360
Speaker 1: experiment together, Nick, if I was interviewing Treasury Secretary Janet Yellen,

550
00:30:39,800 --> 00:30:42,000
Speaker 1: you know, here here's a question that I would ask her,

551
00:30:42,080 --> 00:30:44,880
Speaker 1: and I'll ask this to you. Heather Long in the

552
00:30:44,920 --> 00:30:48,480
Speaker 1: Washington Post. Has I mentioned this earlier in the program

553
00:30:48,520 --> 00:30:52,120
Speaker 1: has a brilliant article. It's headline, millions of jobs probably

554
00:30:52,120 --> 00:30:55,200
Speaker 1: aren't coming back even after the pandemic ends, and she

555
00:30:55,240 --> 00:30:58,520
Speaker 1: actually quotes from the fourth quarter of last year. Uh

556
00:30:58,560 --> 00:31:02,560
Speaker 1: FED chairman J Powell's saying the economy is going to

557
00:31:02,560 --> 00:31:05,080
Speaker 1: to come back on paraphrasing, but it's coming back in

558
00:31:05,160 --> 00:31:07,520
Speaker 1: a different location and it's going to be a different

559
00:31:07,800 --> 00:31:11,000
Speaker 1: type of economy. Heather Long reports in the Post millions

560
00:31:11,040 --> 00:31:14,360
Speaker 1: of jobs, mostly low skilled, likely won't come back even

561
00:31:14,400 --> 00:31:17,440
Speaker 1: after the pandemic ends. The US needs to invest heavily

562
00:31:17,480 --> 00:31:21,600
Speaker 1: in retraining economists say, yet the one point nine trillion

563
00:31:21,640 --> 00:31:25,920
Speaker 1: dollar bill has zero dollars for retraining. I mean, as

564
00:31:25,960 --> 00:31:29,280
Speaker 1: we talk about the gig economy and you know the

565
00:31:29,720 --> 00:31:32,280
Speaker 1: startups out in Silicon Valley who have made it easier

566
00:31:32,760 --> 00:31:36,360
Speaker 1: for there to be a business. Online businesses and small

567
00:31:36,360 --> 00:31:39,280
Speaker 1: businesses from page of the Wall Street Journal today shows

568
00:31:39,320 --> 00:31:45,240
Speaker 1: the chart skyrocketing American hustle of small businesses really increasing

569
00:31:45,360 --> 00:31:48,640
Speaker 1: during this up in the last couple of months. I mean,

570
00:31:49,440 --> 00:31:52,160
Speaker 1: shouldn't we don't we owe it to to the American

571
00:31:52,240 --> 00:31:55,040
Speaker 1: people to be honest with them that all this money

572
00:31:55,080 --> 00:31:57,760
Speaker 1: that we're gonna pass in terms of stimulus is really

573
00:31:57,800 --> 00:32:01,960
Speaker 1: just a band a band aid on a bullet hole. Um.

574
00:32:02,040 --> 00:32:04,160
Speaker 1: You know, as a bunch of a bunch of things

575
00:32:04,160 --> 00:32:06,760
Speaker 1: in there, Kevin Um. The first things first, What's what's

576
00:32:06,760 --> 00:32:09,280
Speaker 1: the question I would ask Janet Yellen? Um. It's a

577
00:32:09,360 --> 00:32:11,520
Speaker 1: question I don'tink everybody's asked yet, which is who does

578
00:32:11,560 --> 00:32:14,760
Speaker 1: inflation hurt more? Does it hurt the poor more? Does

579
00:32:14,800 --> 00:32:17,120
Speaker 1: it hurt the rich more? Uh? An answer, by the way,

580
00:32:17,160 --> 00:32:18,760
Speaker 1: and she knows the answer is that it hurts the

581
00:32:18,800 --> 00:32:21,680
Speaker 1: poor more, it hurts the elderly more, it hurts the

582
00:32:21,720 --> 00:32:24,120
Speaker 1: folks that they all the Democrats say they are wanting

583
00:32:24,160 --> 00:32:28,400
Speaker 1: to help. Um. And as they remove towards this this this,

584
00:32:28,400 --> 00:32:32,240
Speaker 1: this risk of inflation hanging over the economy, no one

585
00:32:32,360 --> 00:32:34,080
Speaker 1: is talking about who is going to pay the price

586
00:32:34,080 --> 00:32:37,479
Speaker 1: for that. Inflation is a tax on the middle class

587
00:32:37,480 --> 00:32:39,920
Speaker 1: and the lower class. And everybody's afraid to talk about

588
00:32:39,960 --> 00:32:42,920
Speaker 1: it because the Fed knows that it's coming, and they're

589
00:32:42,960 --> 00:32:45,960
Speaker 1: afraid to do anything about it because they can't be

590
00:32:46,040 --> 00:32:49,920
Speaker 1: against the politics of spending money to to to boost

591
00:32:49,960 --> 00:32:52,160
Speaker 1: covid UM. You know, listen, there's a lot of things

592
00:32:52,200 --> 00:32:55,480
Speaker 1: we could say about about about small business. It's it's

593
00:32:55,600 --> 00:32:57,640
Speaker 1: so I've started two of them, and we're starting our

594
00:32:57,640 --> 00:33:00,479
Speaker 1: hedge fund without an office. It's great now, it's it's

595
00:33:00,520 --> 00:33:03,880
Speaker 1: it's a tremendous time to be have this, this opportunity

596
00:33:03,920 --> 00:33:05,840
Speaker 1: in small business because it's so much cheaper to start

597
00:33:05,880 --> 00:33:08,480
Speaker 1: a business right now. So it doesn't surprise me. But

598
00:33:08,520 --> 00:33:10,680
Speaker 1: to your larger point about jobs not coming back, with

599
00:33:10,800 --> 00:33:13,720
Speaker 1: my Democrat friends are famous for telling us how jobs

600
00:33:13,720 --> 00:33:16,640
Speaker 1: don't come back. I mean Obama spent four years saying that,

601
00:33:16,840 --> 00:33:19,120
Speaker 1: you know, manufacturing jobs weren't going to come back, and

602
00:33:19,160 --> 00:33:22,640
Speaker 1: they did under Donald Trump simply because the policies changed.

603
00:33:22,920 --> 00:33:25,680
Speaker 1: So no, I don't agree that those those low skilled

604
00:33:25,760 --> 00:33:28,560
Speaker 1: jobs necessarily go away. If they go away, they'll go

605
00:33:28,600 --> 00:33:30,920
Speaker 1: away for the right reasons, which is because folks found

606
00:33:30,960 --> 00:33:33,280
Speaker 1: better things to do. But I think it's wrong to

607
00:33:33,320 --> 00:33:35,120
Speaker 1: be able to say, well, the government's going to decide

608
00:33:35,120 --> 00:33:37,200
Speaker 1: which which jobs are going to go away, and therefore

609
00:33:37,240 --> 00:33:39,160
Speaker 1: we need to retrain people to where we think the

610
00:33:39,200 --> 00:33:41,760
Speaker 1: next jobs are going to be. Don't forget guys, and

611
00:33:41,840 --> 00:33:44,400
Speaker 1: know I'm talking long and I apologize. We're the lowest.

612
00:33:44,600 --> 00:33:49,000
Speaker 1: It's radio it's radio. We can do that, no sound

613
00:33:49,000 --> 00:33:52,960
Speaker 1: bites go ahead. The lowest rates of unemployment across the board,

614
00:33:53,040 --> 00:33:57,200
Speaker 1: lowest rates for Black Americans, women, you name it, okay,

615
00:33:57,280 --> 00:34:00,280
Speaker 1: and we had it without inflation because of the supply

616
00:34:00,400 --> 00:34:03,480
Speaker 1: side economics of the previous administration. We know how to

617
00:34:03,720 --> 00:34:06,560
Speaker 1: do this. I heard a story today that that that

618
00:34:06,680 --> 00:34:10,840
Speaker 1: the Federal Reserve is talking about focusing on racial equity

619
00:34:11,000 --> 00:34:13,560
Speaker 1: and unemployment, and they might you try to figure out

620
00:34:13,560 --> 00:34:16,320
Speaker 1: a way to use monetary policy to lower the spread

621
00:34:16,360 --> 00:34:20,520
Speaker 1: between white unemployment and and African American unemployment. And then

622
00:34:20,560 --> 00:34:23,319
Speaker 1: some commiscout and said, well, actually we had that. We

623
00:34:23,320 --> 00:34:25,720
Speaker 1: had it in two thousand nineteen. December two thousand nineteen,

624
00:34:25,719 --> 00:34:28,760
Speaker 1: the spread was maybe a hunter basis points between white

625
00:34:28,800 --> 00:34:31,759
Speaker 1: and black unemployment. We had it because the policies of

626
00:34:31,760 --> 00:34:35,040
Speaker 1: the Trump administration. We did have it because of government intervention.

627
00:34:35,080 --> 00:34:37,160
Speaker 1: I'm sorry, that's that's way too long, and I apologize.

628
00:34:37,160 --> 00:34:40,680
Speaker 1: I get well, it's music to my ears, Mick, because

629
00:34:40,680 --> 00:34:43,400
Speaker 1: anytime you can, you know, reflect upon Jack Kemp and

630
00:34:43,480 --> 00:34:46,759
Speaker 1: supply side economics, it makes me a happy man. But

631
00:34:47,000 --> 00:34:49,480
Speaker 1: arguably one of the missed opportunities that leads right into

632
00:34:49,520 --> 00:34:53,920
Speaker 1: what you were saying is of the Trump administration was infrastructure.

633
00:34:54,200 --> 00:34:57,640
Speaker 1: I mean talk about a time who who really had

634
00:34:57,680 --> 00:35:01,319
Speaker 1: an opportunity there, but maybe focused a little bit on

635
00:35:01,560 --> 00:35:04,479
Speaker 1: energy since that seems to be a big issue right now.

636
00:35:04,520 --> 00:35:08,480
Speaker 1: I mean, as you said, no good uh crisis Uh

637
00:35:08,920 --> 00:35:12,000
Speaker 1: misses an opportunity. And and do we need a Marshal

638
00:35:12,080 --> 00:35:15,480
Speaker 1: plan for energy infrastructure in America as a component of

639
00:35:15,520 --> 00:35:18,759
Speaker 1: our growth plan? Uh? Coming into the future. I think

640
00:35:18,800 --> 00:35:23,279
Speaker 1: the Texas situation has really showcased some some lack of

641
00:35:23,360 --> 00:35:28,040
Speaker 1: resourcefulness here. Yeah. I don't know enough about why is

642
00:35:28,040 --> 00:35:30,359
Speaker 1: suffering for what it is is there's something structural there.

643
00:35:30,360 --> 00:35:32,200
Speaker 1: So I don't want to speak to Texas because I

644
00:35:32,280 --> 00:35:34,359
Speaker 1: try really hard not to talk about things I don't

645
00:35:34,360 --> 00:35:36,360
Speaker 1: know that much about. I know I fail that miserably

646
00:35:36,360 --> 00:35:39,680
Speaker 1: from time to time. Um, but do we need a

647
00:35:39,719 --> 00:35:42,759
Speaker 1: Marshall Plan? No, we don't. The energy it was never

648
00:35:42,840 --> 00:35:46,800
Speaker 1: cheaper than it was, you know, eighteen months ago, because

649
00:35:46,800 --> 00:35:49,239
Speaker 1: we had the right policies. You don't have to have

650
00:35:49,280 --> 00:35:51,200
Speaker 1: the government come in and say, okay, yes you get

651
00:35:51,200 --> 00:35:53,000
Speaker 1: some money, and you get some money, and you don't

652
00:35:53,000 --> 00:35:55,760
Speaker 1: get any money and expect that to get anything except

653
00:35:55,760 --> 00:36:01,440
Speaker 1: making people who are politically connected rich I don't know why. Um,

654
00:36:01,960 --> 00:36:04,279
Speaker 1: we haven't learned that lesson that. It was so many

655
00:36:04,320 --> 00:36:07,440
Speaker 1: opportunities to have seen it during our lifetimes. So no,

656
00:36:07,600 --> 00:36:09,799
Speaker 1: I think we continue to do what we what we've

657
00:36:09,840 --> 00:36:11,920
Speaker 1: done before. We've got some you know, you put out

658
00:36:11,960 --> 00:36:17,160
Speaker 1: some common sense environmental policies. That's great. You let innovation flourish. Chemond.

659
00:36:17,239 --> 00:36:20,080
Speaker 1: One of the reasons that electric vehicles have done so well,

660
00:36:20,200 --> 00:36:25,319
Speaker 1: and it is that it's relatively relatively unregulated. It's it's

661
00:36:25,320 --> 00:36:29,440
Speaker 1: it's allowed. We've allowed innovation in that industry. One of

662
00:36:29,480 --> 00:36:31,719
Speaker 1: the reasons fracking did so well was that it was

663
00:36:31,800 --> 00:36:36,919
Speaker 1: relatively unregulated at the outset. So uh, there's a formula here,

664
00:36:37,200 --> 00:36:39,680
Speaker 1: and none of the formulas points you towards. Oh my goodness,

665
00:36:39,680 --> 00:36:41,440
Speaker 1: we need a marshall plan to do this. Go back

666
00:36:41,480 --> 00:36:43,840
Speaker 1: to infrastructure for a second. I'll tell you sorry, I

667
00:36:43,840 --> 00:36:46,239
Speaker 1: forgot about that, which is this. Listen, we all we

668
00:36:46,280 --> 00:36:48,080
Speaker 1: all want more roads, we all want better bridges, we

669
00:36:48,080 --> 00:36:50,560
Speaker 1: want better airports. I get all that. Okay, it's allowed.

670
00:36:50,600 --> 00:36:54,320
Speaker 1: The stimulus program it takes way too long. The reason

671
00:36:54,400 --> 00:36:56,480
Speaker 1: we could not get a stimulus package passed under the

672
00:36:56,520 --> 00:36:59,600
Speaker 1: Trump administration was that one of the things we insisted

673
00:36:59,640 --> 00:37:01,920
Speaker 1: on was clearing the decks of a lot of the

674
00:37:01,960 --> 00:37:05,520
Speaker 1: regulatory burden for building a road. Okay, Um, it doesn't

675
00:37:05,560 --> 00:37:08,920
Speaker 1: take four years to build a bridge. It takes maybe

676
00:37:09,280 --> 00:37:11,400
Speaker 1: six months, ten months. Not a big bridge, but an

677
00:37:11,480 --> 00:37:13,480
Speaker 1: ordinary bridge, say across a freeway. Kay, takes you a

678
00:37:13,520 --> 00:37:15,680
Speaker 1: couple of months to build that. But when you at

679
00:37:15,800 --> 00:37:19,040
Speaker 1: layer on top of that actual construction time, all of

680
00:37:19,040 --> 00:37:22,360
Speaker 1: the permit permiting time, and environmental regulations and all of

681
00:37:22,360 --> 00:37:25,000
Speaker 1: the things that government makes them do, it it takes

682
00:37:25,040 --> 00:37:29,120
Speaker 1: a lot longer to get those things built. For that reason,

683
00:37:29,200 --> 00:37:31,960
Speaker 1: it's allowsy stimulus because you want stimulus to be quick,

684
00:37:32,000 --> 00:37:34,200
Speaker 1: you want money to flow out of the government collverence

685
00:37:34,200 --> 00:37:36,719
Speaker 1: and get into the economy. You can't do that with infrastructure.

686
00:37:37,000 --> 00:37:39,440
Speaker 1: So the Democrats are never going to change the environment

687
00:37:39,480 --> 00:37:41,440
Speaker 1: of restrictions. They made that clear to us. It's why

688
00:37:41,440 --> 00:37:44,920
Speaker 1: we could not pass an infrastructure build under the Trump administration,

689
00:37:44,920 --> 00:37:47,080
Speaker 1: and my guesses that's not going to change. So yes,

690
00:37:47,320 --> 00:37:49,400
Speaker 1: the Democrats will say we need infrastructure is part of

691
00:37:49,400 --> 00:37:52,880
Speaker 1: a stimulus program. But again, that's just not letting a

692
00:37:52,960 --> 00:37:55,920
Speaker 1: crisis go to waste. Nick, I'm gonna ask you to

693
00:37:55,960 --> 00:37:59,080
Speaker 1: help me out for my my, my reporting, prep for

694
00:37:59,200 --> 00:38:02,280
Speaker 1: my for my on the hill tomorrow because Robin Hood

695
00:38:02,480 --> 00:38:06,719
Speaker 1: is testifying. Robin Hood CEO the lad tenev is gonna

696
00:38:06,760 --> 00:38:09,719
Speaker 1: be uh appearing before your old home the House Financial

697
00:38:09,719 --> 00:38:13,640
Speaker 1: Services Committee, He says, quote any allegation this is according

698
00:38:13,680 --> 00:38:16,040
Speaker 1: to the testimony just released in the last couple of hours,

699
00:38:16,400 --> 00:38:20,520
Speaker 1: Any allegation that Robin Hood acted to help hedge funds

700
00:38:20,640 --> 00:38:24,719
Speaker 1: or other special interests to the detriment of our customers

701
00:38:25,160 --> 00:38:30,640
Speaker 1: is absolutely false and market distorting rhetoric. Trading limits we

702
00:38:30,680 --> 00:38:34,000
Speaker 1: put in place on game Stop and other stocks were

703
00:38:34,080 --> 00:38:38,040
Speaker 1: necessary to allow us to continue to meet the clearing

704
00:38:38,080 --> 00:38:41,799
Speaker 1: house deposit requirements. Sorry, you just started a hedge fund.

705
00:38:41,920 --> 00:38:45,520
Speaker 1: What do you make of this game Stop Robin Hood issue? Yeah?

706
00:38:45,560 --> 00:38:48,000
Speaker 1: I think, by the way, um, that everything he just

707
00:38:48,040 --> 00:38:50,719
Speaker 1: said is absolutely true. Um, and it's not going to

708
00:38:50,800 --> 00:38:53,200
Speaker 1: help him a bit. Um. Keep in mind, I have

709
00:38:53,320 --> 00:38:55,960
Speaker 1: been in those dares, in those hearings. I've been on

710
00:38:56,040 --> 00:38:59,200
Speaker 1: both sides of the equations, right, I've been asking questions

711
00:38:59,280 --> 00:39:01,160
Speaker 1: and then I have been in the hot seat of

712
00:39:01,360 --> 00:39:05,760
Speaker 1: getting my teeth kicked in for six hours by Elizabeth Warren. Um.

713
00:39:05,800 --> 00:39:09,439
Speaker 1: This is not this is not about facts tomorrow. Um,

714
00:39:09,480 --> 00:39:11,440
Speaker 1: the facts are on game or on everything I've been

715
00:39:11,480 --> 00:39:12,719
Speaker 1: able to see, and I've done a little bit of

716
00:39:12,719 --> 00:39:14,640
Speaker 1: research on all of the facts seem to be on

717
00:39:14,719 --> 00:39:17,080
Speaker 1: Robert Hood's side. Um, in fact, that they wanted to

718
00:39:17,120 --> 00:39:19,399
Speaker 1: take the next step, that's a good statement. The next

719
00:39:19,400 --> 00:39:22,120
Speaker 1: step is we were only doing what Dodd Frank made

720
00:39:22,200 --> 00:39:25,479
Speaker 1: us do. Okay, that that's that's that's that's actually true.

721
00:39:25,480 --> 00:39:27,879
Speaker 1: That everything I think you just read is a hund

722
00:39:28,000 --> 00:39:31,040
Speaker 1: percent accurate. Whether or not you can convey that in

723
00:39:31,080 --> 00:39:33,320
Speaker 1: a way that members of Congress and just as importantly

724
00:39:33,320 --> 00:39:35,600
Speaker 1: the public understand, it's going to be really, really hard.

725
00:39:35,840 --> 00:39:38,319
Speaker 1: More importantly, let me interrupt here. Let me interrupt because

726
00:39:38,320 --> 00:39:39,680
Speaker 1: I want to push you on this. What do you mean,

727
00:39:39,800 --> 00:39:41,560
Speaker 1: dive into the weeds? This is the this is the

728
00:39:42,120 --> 00:39:44,160
Speaker 1: piece of real estate to do it. Dive into the

729
00:39:44,160 --> 00:39:48,640
Speaker 1: weeds here? What do you mean? Dodd Frank caused elaborate.

730
00:39:49,360 --> 00:39:51,400
Speaker 1: I think the d T the dt c C stuff

731
00:39:51,480 --> 00:39:54,200
Speaker 1: is is is similar. Capital requirements were changing, Dodd Frank,

732
00:39:54,239 --> 00:39:56,440
Speaker 1: and they've just they're following they were following the rules.

733
00:39:56,800 --> 00:39:59,160
Speaker 1: D t c C did exactly what they were supposed

734
00:39:59,200 --> 00:40:01,759
Speaker 1: to do. But Hood did exactly what they're supposed to do.

735
00:40:01,760 --> 00:40:05,840
Speaker 1: Their following the regulatory regime that the federal government created

736
00:40:06,239 --> 00:40:08,440
Speaker 1: in order to protect the integrity of the markets. One

737
00:40:08,480 --> 00:40:11,080
Speaker 1: of the reasons that had to restrict trading was because

738
00:40:11,120 --> 00:40:13,400
Speaker 1: if they didn't, they had a chance that their system

739
00:40:13,480 --> 00:40:16,000
Speaker 1: might collapse. And that's what Dodd Frank and the regulatory

740
00:40:16,040 --> 00:40:19,840
Speaker 1: system is designed supposedly to prevent, which is structural or

741
00:40:19,920 --> 00:40:24,160
Speaker 1: systemic risks to the system. Right. So my understanding of

742
00:40:24,480 --> 00:40:26,640
Speaker 1: this is that it worked exactly the way it's supposed

743
00:40:26,600 --> 00:40:30,680
Speaker 1: to work. Somehow Robin Hood did something that they were

744
00:40:30,680 --> 00:40:33,400
Speaker 1: absolutely required to do. They had very little discretion and

745
00:40:33,520 --> 00:40:37,560
Speaker 1: if any, and they've managed to upset both Alexander kazy

746
00:40:37,600 --> 00:40:39,279
Speaker 1: Cortez and Jeff Duncan. For those of you who are

747
00:40:39,320 --> 00:40:41,399
Speaker 1: listening who don't know who Jeff Duncan is, Jeff Duncan

748
00:40:41,520 --> 00:40:43,240
Speaker 1: is as far to the rights, it's probably his AOC

749
00:40:43,440 --> 00:40:45,440
Speaker 1: is to the left. He's a friend of mine from

750
00:40:45,440 --> 00:40:48,200
Speaker 1: South Carolina and has bought as right wing conservative as

751
00:40:48,239 --> 00:40:51,200
Speaker 1: you can possibly get. And he wrote a letter excoriating

752
00:40:51,280 --> 00:40:54,520
Speaker 1: robin Hood for what they did during during the during

753
00:40:54,560 --> 00:40:57,080
Speaker 1: the the issues they had a couple of weeks back

754
00:40:57,120 --> 00:40:59,960
Speaker 1: so there's not a lot of bipartisanship right now in Washington,

755
00:41:00,000 --> 00:41:03,040
Speaker 1: and guys being against Robin Hood is one of them. Um,

756
00:41:03,080 --> 00:41:05,279
Speaker 1: and I'm really looking forward to watching hearing tomorrow. It

757
00:41:05,400 --> 00:41:10,040
Speaker 1: makes person good good drama go ahead, And I'm sorry, sorry, sorry, Hey, Mike,

758
00:41:10,080 --> 00:41:11,480
Speaker 1: I wanted to follow up on that a little bit

759
00:41:11,520 --> 00:41:13,839
Speaker 1: because obviously it's gonna be quite a story tomorrow and

760
00:41:13,880 --> 00:41:18,120
Speaker 1: this is your backyard. Um, how do you think the

761
00:41:17,120 --> 00:41:20,360
Speaker 1: the the different agencies that are looking into this d O, G,

762
00:41:21,080 --> 00:41:23,920
Speaker 1: do O, j cftc uh. There are a lot of

763
00:41:23,960 --> 00:41:28,200
Speaker 1: different organizations. Kevin does a much better job of of

764
00:41:28,239 --> 00:41:30,600
Speaker 1: throwing out all these acronyms that I'm ever gonna do.

765
00:41:31,160 --> 00:41:33,759
Speaker 1: But is there any fire there? I mean, you've looked

766
00:41:33,760 --> 00:41:36,799
Speaker 1: into it a little bit. Um. If if it's not

767
00:41:37,000 --> 00:41:39,319
Speaker 1: Robin Hood, and I think your case is exactly right,

768
00:41:39,880 --> 00:41:42,799
Speaker 1: well made, then what is it? Is there anything other

769
00:41:42,880 --> 00:41:45,600
Speaker 1: than just the markets corrected themselves at a time when

770
00:41:45,680 --> 00:41:48,600
Speaker 1: there were a lot of exposed positions, and um, and

771
00:41:48,640 --> 00:41:50,440
Speaker 1: it's time to move on or is it time for

772
00:41:50,520 --> 00:41:55,359
Speaker 1: some different regulatory formats? Quickly we got like thirty seconds ahead.

773
00:41:56,040 --> 00:41:58,760
Speaker 1: What are the rules? The rules are designed to have people,

774
00:41:58,920 --> 00:42:03,560
Speaker 1: you know, uh, distort the markets, oftentimes with illegal or

775
00:42:03,600 --> 00:42:05,920
Speaker 1: false information. I just don't. I did not see that

776
00:42:06,040 --> 00:42:08,960
Speaker 1: happening here. We have short squeezes all the time. It

777
00:42:08,960 --> 00:42:11,160
Speaker 1: has been different now because it's sort of this retail

778
00:42:11,200 --> 00:42:15,160
Speaker 1: short squeeze as opposed to large institutional players. Yes. Um,

779
00:42:15,200 --> 00:42:18,080
Speaker 1: but at at its heart this seems to be a

780
00:42:18,200 --> 00:42:21,000
Speaker 1: market functioning properly in what you saw as a traditional

781
00:42:21,000 --> 00:42:25,520
Speaker 1: short squeeze, just through sort of different, different, non traditional means. Um.

782
00:42:25,560 --> 00:42:28,120
Speaker 1: But again, we just got a couple of seconds left.

783
00:42:28,160 --> 00:42:31,080
Speaker 1: It's going to be fun, Kevin, good luck tomorrow. Thank

784
00:42:31,080 --> 00:42:33,200
Speaker 1: you that it's not too bad it's not live in person,

785
00:42:33,200 --> 00:42:36,600
Speaker 1: because that would be great theater if they go anyway.

786
00:42:36,800 --> 00:42:38,719
Speaker 1: I'm going anyway. At the end of tomorrow, it's gonna

787
00:42:38,719 --> 00:42:40,400
Speaker 1: be the fact he can do this virtually, doesn't have

788
00:42:40,520 --> 00:42:43,200
Speaker 1: to be in the here all right. I'll have to

789
00:42:43,280 --> 00:42:44,719
Speaker 1: leave it there, Mick. I'll catch up with you later.

790
00:42:44,760 --> 00:42:47,239
Speaker 1: Thank you so much for coming on. That's mcmulvaney here,

791
00:42:47,239 --> 00:42:50,160
Speaker 1: of course, is many things, and also President Trump's former

792
00:42:50,280 --> 00:42:53,920
Speaker 1: chief of staff. February is Black History Month, and Bloomberg

793
00:42:54,000 --> 00:42:57,000
Speaker 1: Radio is celebrating pivotal moments in the us Black history

794
00:42:57,080 --> 00:42:59,839
Speaker 1: each day. Here with today's installman is Bloomberg's for needing

795
00:42:59,840 --> 00:43:04,600
Speaker 1: you on this day in Black History. In Albert Richardson

796
00:43:04,680 --> 00:43:07,960
Speaker 1: patented the butter churn. Up until then, anyone who wanted

797
00:43:08,000 --> 00:43:10,160
Speaker 1: butter had to make it by hand in a bowl.

798
00:43:10,480 --> 00:43:13,359
Speaker 1: But Richardson's invention would eventually make it easier to make

799
00:43:13,400 --> 00:43:17,200
Speaker 1: butter and forever change the food industry. Throughout his life,

800
00:43:17,280 --> 00:43:19,640
Speaker 1: Richardson had a habit of seeing a problem and then

801
00:43:19,719 --> 00:43:22,799
Speaker 1: inventing a solution. One such problem he saw was the

802
00:43:22,840 --> 00:43:25,759
Speaker 1: way dead people were buried at the time. It was

803
00:43:25,800 --> 00:43:29,160
Speaker 1: in shallow graves or lowering caskets with ropes into a

804
00:43:29,200 --> 00:43:32,960
Speaker 1: deeper hole, and this required several people to work in unison,

805
00:43:33,040 --> 00:43:36,280
Speaker 1: which wasn't always possible, and it could result in damaging

806
00:43:36,280 --> 00:43:41,520
Speaker 1: the casket. So in Richardson patented the casket lowering device,

807
00:43:41,920 --> 00:43:45,640
Speaker 1: and it's used in all cemeteries today. Richardson also invented

808
00:43:45,640 --> 00:43:49,320
Speaker 1: the home fastener and insect destroyer, and an improved design

809
00:43:49,440 --> 00:43:52,520
Speaker 1: of the bottle that's today in Black History. I'm realing

810
00:43:52,600 --> 00:43:56,279
Speaker 1: to young Bloomberg radio. All right, that does it for us.

811
00:43:56,280 --> 00:43:59,759
Speaker 1: I'm Kevin Surilli, Chief Washington correspondent for Bloomberg Television and

812
00:43:59,840 --> 00:44:04,080
Speaker 1: for Bloomberg Radio. Robin Hood Robin Hood Day tomorrow. This

813
00:44:04,160 --> 00:44:06,600
Speaker 1: is Bloomberg Radio h