1 00:00:03,080 --> 00:00:07,040 Speaker 1: This is Bloomberg Surveillance. Banks are a much better position 2 00:00:07,120 --> 00:00:09,760 Speaker 1: now than they were before the crisis, much more capital, 3 00:00:09,920 --> 00:00:12,320 Speaker 1: and they're much more resilient. One of the more important 4 00:00:12,360 --> 00:00:16,320 Speaker 1: transmission mechanisms of monetary policy when rates get to very 5 00:00:16,400 --> 00:00:19,119 Speaker 1: low levels is actually through the exchange rate. But after 6 00:00:19,120 --> 00:00:21,400 Speaker 1: the People's Bank of China, the Central Bank of China 7 00:00:21,640 --> 00:00:23,360 Speaker 1: is going to do in terms of this moment, a 8 00:00:23,440 --> 00:00:26,960 Speaker 1: policy will have a big impact on market. Sploomberg Surveillance 9 00:00:27,200 --> 00:00:30,760 Speaker 1: your link to the world of economics, finance, and investment 10 00:00:31,000 --> 00:00:35,760 Speaker 1: on Bloomberg Radio. Good morning, I'm Michael McKee along with 11 00:00:35,840 --> 00:00:38,480 Speaker 1: Tom Keene. It is seven am on Wall Street, seven 12 00:00:38,479 --> 00:00:41,640 Speaker 1: am in Washington, d C. Where Tom and I find 13 00:00:41,640 --> 00:00:45,760 Speaker 1: ourselves on this super Tuesday. By tonight we could know 14 00:00:45,840 --> 00:00:49,440 Speaker 1: who the Republican and Democratic presidential nominees are. At least 15 00:00:49,440 --> 00:00:52,040 Speaker 1: we could have a pretty good idea, and we're going 16 00:00:52,080 --> 00:00:55,280 Speaker 1: to be talking about that today on Surveillance, including Tom. 17 00:00:55,280 --> 00:00:58,800 Speaker 1: A fascinating interview with former FIT chairman Alan Greenspy. Yeah, 18 00:00:58,840 --> 00:01:01,880 Speaker 1: you're getting a rate reviews. He was, as you said, correctly, 19 00:01:02,120 --> 00:01:06,479 Speaker 1: he was remarkably cautious on where this nation is going. 20 00:01:06,560 --> 00:01:09,319 Speaker 1: As we have this important electoral day. Well, we will 21 00:01:09,319 --> 00:01:12,399 Speaker 1: talk about that in just a moment. If there's concerned 22 00:01:12,840 --> 00:01:16,200 Speaker 1: among investors about who may represent the major parties here, 23 00:01:16,200 --> 00:01:19,000 Speaker 1: it doesn't show in the markets this morning. US future 24 00:01:19,040 --> 00:01:23,080 Speaker 1: is significantly higher. SMP features up by fourteen points right now, 25 00:01:23,080 --> 00:01:26,279 Speaker 1: three quarters of a percent down, futures up seven tenths. 26 00:01:26,360 --> 00:01:28,679 Speaker 1: That's a hundred and ten points on that index, and 27 00:01:28,760 --> 00:01:31,560 Speaker 1: Nazaki Mini features up by thirty one points right now, 28 00:01:31,640 --> 00:01:34,960 Speaker 1: also three quarters of a percent. In Europe, stocks are higher, 29 00:01:34,959 --> 00:01:38,000 Speaker 1: the stocks six hundred up by three points nine tenths. 30 00:01:38,120 --> 00:01:42,520 Speaker 1: European at least, Eurozone employment higher than it has been 31 00:01:42,520 --> 00:01:44,440 Speaker 1: in four years, the unemployment rate lower than it has 32 00:01:44,480 --> 00:01:46,640 Speaker 1: been in four years. The foots sea up forty two 33 00:01:46,640 --> 00:01:48,800 Speaker 1: points seven tenths of a percent, wiping out all of 34 00:01:48,840 --> 00:01:51,280 Speaker 1: its losses so far for the year. The docks a 35 00:01:51,360 --> 00:01:55,080 Speaker 1: hundred and forty seven points higher one and a half percent. 36 00:01:55,640 --> 00:01:59,320 Speaker 1: Bonds have churned, that's the word Tom loves to say. 37 00:01:59,360 --> 00:02:01,520 Speaker 1: But in the U has the curve little change from 38 00:02:01,520 --> 00:02:04,040 Speaker 1: where we were at this time yesterday. The tenure note 39 00:02:04,120 --> 00:02:06,760 Speaker 1: yield one point seven four percent, the five year at 40 00:02:06,800 --> 00:02:10,040 Speaker 1: one point to three percent, seventy basis points year two 41 00:02:10,120 --> 00:02:13,040 Speaker 1: year yield Germany, though lower yet again. Right now the 42 00:02:13,040 --> 00:02:16,919 Speaker 1: German two year trading at a negative fifty seven basis 43 00:02:16,960 --> 00:02:21,600 Speaker 1: points oil and this is important. West Texas thirty four 44 00:02:21,800 --> 00:02:25,320 Speaker 1: seventeen of crisis over one three percent, Brent crude thirty 45 00:02:25,400 --> 00:02:32,359 Speaker 1: seventy four up seventeen cents a half crisis over. Chairman 46 00:02:32,360 --> 00:02:33,920 Speaker 1: Greenes fan about that, and he said, you know, we 47 00:02:33,960 --> 00:02:35,560 Speaker 1: are going to find a bottom at some point, and 48 00:02:35,600 --> 00:02:38,360 Speaker 1: that could have a significant impact. He was actually pretty 49 00:02:38,360 --> 00:02:40,840 Speaker 1: good at not you know, gaming it like an oil 50 00:02:40,880 --> 00:02:45,080 Speaker 1: strategist of suggesting, uh, we made me near a bottom 51 00:02:45,160 --> 00:02:47,919 Speaker 1: or finding a bid on oil from Washington. This Super 52 00:02:47,919 --> 00:02:52,080 Speaker 1: Tuesday Bloomberg Surveillance brought to by Investco. Factor based strategies 53 00:02:52,240 --> 00:02:56,000 Speaker 1: can help investors focus on a high quality, low volatility 54 00:02:56,080 --> 00:03:01,040 Speaker 1: and more. Learn more at investco dot com slash high Conviction. 55 00:03:01,400 --> 00:03:04,960 Speaker 1: I did a Hubert Heaver with our guests asseminting. I 56 00:03:05,000 --> 00:03:08,520 Speaker 1: said he was the president of the White House, and 57 00:03:08,760 --> 00:03:11,799 Speaker 1: I got it a little wrong. Called well maybe someday, 58 00:03:11,840 --> 00:03:16,240 Speaker 1: and his career aren't continuous career, So let's let's have 59 00:03:16,400 --> 00:03:20,360 Speaker 1: you bring in Hubert even at Hubert Heaver Ferman Jason, 60 00:03:20,360 --> 00:03:22,919 Speaker 1: who is the Chairman of the Council of Economic Advisors, 61 00:03:23,320 --> 00:03:26,080 Speaker 1: Chairman Greenspan, as we were mentioning rather downbeat about the 62 00:03:26,080 --> 00:03:29,880 Speaker 1: economy's prospects with US overnight, Bill Dudley, the New York 63 00:03:29,919 --> 00:03:33,480 Speaker 1: Fed President, told an audience in China, quote, on balance, 64 00:03:33,520 --> 00:03:37,040 Speaker 1: I am somewhat less confident than I was before. Partly 65 00:03:37,240 --> 00:03:40,520 Speaker 1: this reflects my assessment that uncertainty to the outlook has 66 00:03:40,600 --> 00:03:45,080 Speaker 1: increased and downside risks have crept up. You are the 67 00:03:45,160 --> 00:03:47,320 Speaker 1: chairman of the Council of Economic Advisors. When the President 68 00:03:47,360 --> 00:03:49,440 Speaker 1: wants to know if Alan Greenspan and Bill Dudley are right, 69 00:03:49,640 --> 00:03:52,520 Speaker 1: he asks Jason Furman. So what does Jason Furman tell 70 00:03:52,600 --> 00:03:55,880 Speaker 1: him in that situation? You know, I think that's certainly 71 00:03:56,320 --> 00:03:58,760 Speaker 1: um a heightened set of risks in the U. S 72 00:03:58,800 --> 00:04:02,080 Speaker 1: economy right now, and that's because the United States isn't 73 00:04:02,080 --> 00:04:05,320 Speaker 1: an island. We're part of a global economy. You've seen 74 00:04:06,080 --> 00:04:09,680 Speaker 1: the weakest global growth last year that we've seen since 75 00:04:09,680 --> 00:04:15,160 Speaker 1: two thousand nine, China's growth slipping, Brazil, Russia, the emerging 76 00:04:15,200 --> 00:04:21,360 Speaker 1: markets falling even more, and that creates complications and uncertainty 77 00:04:21,400 --> 00:04:26,520 Speaker 1: for US. My best guess is that our domestic strengths 78 00:04:26,600 --> 00:04:29,800 Speaker 1: are going to power us through that uncertainty. The domestic 79 00:04:29,839 --> 00:04:32,080 Speaker 1: strengths that brought brought us the best two years of 80 00:04:32,160 --> 00:04:36,040 Speaker 1: job growth since the nineties, the steepest decline the unemployment 81 00:04:36,120 --> 00:04:38,839 Speaker 1: rate since the eighties, the longest streak of private sector 82 00:04:38,960 --> 00:04:43,800 Speaker 1: job growth. You know, ever, we have optimistic consumers, they're 83 00:04:43,800 --> 00:04:47,080 Speaker 1: getting raises. We have a lot of potential in terms 84 00:04:47,080 --> 00:04:50,120 Speaker 1: of residential investment, but you know, the rest of the 85 00:04:50,120 --> 00:04:52,280 Speaker 1: world is certainly going to be subtracting. I want to 86 00:04:52,320 --> 00:04:54,400 Speaker 1: know about the prison you use every day as you 87 00:04:54,480 --> 00:04:57,600 Speaker 1: advise a president and put together the various documents that 88 00:04:57,600 --> 00:05:01,120 Speaker 1: that is your responsibility. Is it in America? Is it 89 00:05:01,400 --> 00:05:05,400 Speaker 1: to use the math a Gaussian distribution of one America 90 00:05:05,560 --> 00:05:08,919 Speaker 1: or we could become where Alan Krueger would suggest, almost 91 00:05:08,960 --> 00:05:12,760 Speaker 1: two America's one gaining all the benefits of the system 92 00:05:12,800 --> 00:05:17,200 Speaker 1: and another America that's just not participating. Look, Tom, you 93 00:05:17,240 --> 00:05:21,120 Speaker 1: make a good point that for what most families care about, 94 00:05:21,400 --> 00:05:23,839 Speaker 1: it's not GDP growth or the size of the economy 95 00:05:23,880 --> 00:05:27,679 Speaker 1: as a whole. It's how they're doing. Now. How they're 96 00:05:27,720 --> 00:05:31,160 Speaker 1: doing is getting paid two and a half percent more 97 00:05:31,240 --> 00:05:34,520 Speaker 1: than they were getting paid twelve months ago. That's the 98 00:05:34,680 --> 00:05:39,640 Speaker 1: fastest growth we've seen in nominal wages since the financial crisis, 99 00:05:39,680 --> 00:05:43,919 Speaker 1: but it's not, you know, fast enough that has macroeconomic 100 00:05:44,040 --> 00:05:47,479 Speaker 1: ramifications at times at well. You know, one of the 101 00:05:47,520 --> 00:05:51,239 Speaker 1: reasons that our strategy for the recovery focused on cutting 102 00:05:51,240 --> 00:05:54,560 Speaker 1: taxes for the middle class putting money into things like 103 00:05:54,680 --> 00:05:57,640 Speaker 1: food stamps and unemployment insurance was we wanted money in 104 00:05:57,680 --> 00:06:00,320 Speaker 1: the hands of the households who were most likely to 105 00:06:00,360 --> 00:06:03,200 Speaker 1: spend it. So I think you certainly um need to 106 00:06:03,240 --> 00:06:06,200 Speaker 1: think about distribution both to understand what the economy is 107 00:06:06,200 --> 00:06:08,880 Speaker 1: doing for people, but how it affects the Ecomomi is 108 00:06:08,880 --> 00:06:13,279 Speaker 1: our distribution now versus ten or twenty years ago. The 109 00:06:13,520 --> 00:06:16,680 Speaker 1: anger of so many saying the government has too much 110 00:06:17,040 --> 00:06:20,960 Speaker 1: the government is controlling our lives with redistribution. Where do 111 00:06:21,040 --> 00:06:24,320 Speaker 1: we fit in now versus previous Super Tuesdays? If you 112 00:06:24,320 --> 00:06:27,120 Speaker 1: look at statistics on the sheriff income going to the 113 00:06:27,160 --> 00:06:29,479 Speaker 1: top one per cent, the ratio of people at the 114 00:06:29,520 --> 00:06:32,719 Speaker 1: nine percentile to tenth percentile, any of the standard metrics 115 00:06:32,800 --> 00:06:36,239 Speaker 1: Genie cofficient and his standard metrics of inequality, they've risen 116 00:06:36,320 --> 00:06:42,919 Speaker 1: pretty steadily since um the late nine seventies. The government 117 00:06:42,920 --> 00:06:45,640 Speaker 1: has been a counterweight on that, something like the Affordable 118 00:06:45,680 --> 00:06:50,120 Speaker 1: Care Act. We cut taxes in this administration for low 119 00:06:50,160 --> 00:06:54,800 Speaker 1: income working families. If you have two children, for every 120 00:06:54,839 --> 00:06:58,440 Speaker 1: dollar you make, you get forty cents back from the government. 121 00:06:58,480 --> 00:07:01,040 Speaker 1: Near an income tax credit, you get as much as 122 00:07:01,040 --> 00:07:04,640 Speaker 1: another fifteen cents back in the child tax credit. That's 123 00:07:04,680 --> 00:07:08,000 Speaker 1: a real motivation to work. It helps reward work, and 124 00:07:08,080 --> 00:07:12,160 Speaker 1: that's the type of pro work, pro growth strategy that 125 00:07:12,480 --> 00:07:18,480 Speaker 1: also reduces inequality. It wasn't your intention, but the administration 126 00:07:18,640 --> 00:07:22,320 Speaker 1: and Republicans backed into austerity the last couple of years 127 00:07:22,320 --> 00:07:26,440 Speaker 1: with the sequester programs. Austerity done, and did it accomplish 128 00:07:26,520 --> 00:07:30,880 Speaker 1: anything for the country and the economy. I think we 129 00:07:31,000 --> 00:07:33,800 Speaker 1: took some major fiscal steps to expand the economy in 130 00:07:33,840 --> 00:07:36,960 Speaker 1: two thousand nine. We followed up with several more, but 131 00:07:37,080 --> 00:07:41,240 Speaker 1: those ended prematurely when the economy still needed help. Um 132 00:07:41,240 --> 00:07:43,520 Speaker 1: we let the payroll tax cut go away. Instead we 133 00:07:43,600 --> 00:07:46,360 Speaker 1: put in place a sequester. One of the things that 134 00:07:46,400 --> 00:07:49,520 Speaker 1: I think has set the stage for stronger growth is 135 00:07:49,560 --> 00:07:51,480 Speaker 1: we reached a deal at the end of last year 136 00:07:52,080 --> 00:07:57,280 Speaker 1: that is going to accomplish of undoing this of the 137 00:07:57,320 --> 00:08:01,120 Speaker 1: President's proposal to undo the sequest stair. And when we 138 00:08:01,200 --> 00:08:05,200 Speaker 1: did that deal, you saw investment banks, other forecasters raise 139 00:08:05,280 --> 00:08:08,560 Speaker 1: their forecast for growth. Fiscal policy is going to be 140 00:08:08,600 --> 00:08:12,560 Speaker 1: a mild positive instead of subtracting from our growth this year. 141 00:08:12,840 --> 00:08:17,000 Speaker 1: Did those years of austerity, though, accomplish anything. Now our 142 00:08:17,080 --> 00:08:20,080 Speaker 1: deficit is in a better position. It's gone from nearly 143 00:08:20,160 --> 00:08:22,440 Speaker 1: ten percent of GDP down to two and a half 144 00:08:22,480 --> 00:08:25,800 Speaker 1: percent to GDP. You look forward, our debt is in 145 00:08:25,840 --> 00:08:28,680 Speaker 1: a more sustainable place. It's not all the way there. 146 00:08:28,720 --> 00:08:31,360 Speaker 1: That's more we need to do on both the spending 147 00:08:31,400 --> 00:08:35,440 Speaker 1: side and on the entitlement side, but we're in a 148 00:08:35,440 --> 00:08:38,199 Speaker 1: more sustainable fiscal situation. I think we could have done 149 00:08:38,240 --> 00:08:40,600 Speaker 1: it in a more gradual way. Though. Let me ask 150 00:08:40,600 --> 00:08:44,040 Speaker 1: you to to talk about this more for our listeners, 151 00:08:44,120 --> 00:08:49,240 Speaker 1: the idea of the deficit to GDP ratio. We are 152 00:08:49,280 --> 00:08:53,120 Speaker 1: still spending more than we take in. But it's generally 153 00:08:53,120 --> 00:08:56,160 Speaker 1: accepted among economists that that's okay if you're a country 154 00:08:56,400 --> 00:08:59,760 Speaker 1: as opposed to a person. That's right. Countries are different 155 00:08:59,800 --> 00:09:03,760 Speaker 1: kind trees live forever. Countries also used some of that 156 00:09:03,840 --> 00:09:08,880 Speaker 1: money to make investments in our future economic growth, and 157 00:09:08,920 --> 00:09:10,960 Speaker 1: so as an economist, what I like to look at. 158 00:09:11,440 --> 00:09:15,280 Speaker 1: Is is our debt declining as a share of the economy. 159 00:09:15,320 --> 00:09:17,400 Speaker 1: Is it on a path to do that? And we're 160 00:09:17,440 --> 00:09:19,520 Speaker 1: close to that. We need to do more to get over. 161 00:09:19,559 --> 00:09:23,000 Speaker 1: The ECB has a limit. How much could we spend? 162 00:09:24,160 --> 00:09:28,840 Speaker 1: We from the transition, talking to Tim Geitner, Larry Summers, 163 00:09:28,840 --> 00:09:31,560 Speaker 1: Peter Orzag we all set the goal that we should 164 00:09:31,559 --> 00:09:34,120 Speaker 1: try to be below three percentage g d P. If 165 00:09:34,160 --> 00:09:35,960 Speaker 1: you look at the president of the latest budget, like 166 00:09:36,040 --> 00:09:38,440 Speaker 1: most of the budgets he's submitted to Congress, it would 167 00:09:38,440 --> 00:09:41,000 Speaker 1: accomplish that goal. We're gonna come back Jason Furman with 168 00:09:41,120 --> 00:09:43,840 Speaker 1: us UH, with the White House, and of course he's 169 00:09:43,880 --> 00:09:46,800 Speaker 1: traps and quietly around the political debate at the moment. 170 00:09:47,000 --> 00:09:49,600 Speaker 1: We're gonna come back with Dr Furman and touch a 171 00:09:49,640 --> 00:09:52,120 Speaker 1: little bit on some of the political themes that we've 172 00:09:52,160 --> 00:09:56,079 Speaker 1: seen on the Super Tuesday. We'll do that delicate. We 173 00:09:56,080 --> 00:09:59,040 Speaker 1: will do that delicately and with respect. President has asked 174 00:09:59,120 --> 00:10:02,720 Speaker 1: him to spen personally report the American Samola results very 175 00:10:03,120 --> 00:10:07,600 Speaker 1: Jason Firman will be up to do that coming up. Also, 176 00:10:07,679 --> 00:10:12,960 Speaker 1: our important conversation with Alan Greenspan. It was absolutely fascinating 177 00:10:13,760 --> 00:10:18,360 Speaker 1: the challenges the Chairman Greenspan scenes forward. Obviously on Dodd 178 00:10:18,440 --> 00:10:22,520 Speaker 1: Frank he was not constructive and on entitlements, that's no surprise, 179 00:10:22,559 --> 00:10:26,120 Speaker 1: but it was an Allen Greenspan greatly concerned about productivity 180 00:10:26,720 --> 00:10:28,439 Speaker 1: as well. Let me go a data check. We can 181 00:10:28,600 --> 00:10:31,640 Speaker 1: even do those in the Nation's Capital. Hard to believe 182 00:10:31,720 --> 00:10:34,360 Speaker 1: is that his futures up fifteen toal features up one 183 00:10:34,480 --> 00:10:38,040 Speaker 1: sixteen oil with a three day nice rally, West Texas 184 00:10:38,320 --> 00:10:42,120 Speaker 1: thirty four sixteen up forty cents, Brent Crewed thirty six 185 00:10:42,440 --> 00:10:45,640 Speaker 1: seventy one. Michael McKee and Tom Keane is Super Tuesday 186 00:10:45,640 --> 00:10:53,199 Speaker 1: from the Nation's Capital and Washington FM. Alright, let's check 187 00:10:53,200 --> 00:10:54,920 Speaker 1: in with Michael Bayr now and get the latest world 188 00:10:55,000 --> 00:10:57,600 Speaker 1: in national headlines. Michael, alright, Tom, thank you very much. 189 00:10:57,679 --> 00:11:00,320 Speaker 1: This could be a make or break day for the 190 00:11:00,320 --> 00:11:05,239 Speaker 1: remaining presidential candidates. Today is the Super Tuesday primaries. Bloomberg 191 00:11:05,280 --> 00:11:09,240 Speaker 1: will have NonStop Super Tuesday coverage throughout the night, starting 192 00:11:09,240 --> 00:11:12,559 Speaker 1: with a special edition with all due respects starting at 193 00:11:12,600 --> 00:11:15,880 Speaker 1: five pm Wall Street Time. President Obama will meet today 194 00:11:15,920 --> 00:11:18,800 Speaker 1: with the Senate Republicans who avowed to block his Supreme 195 00:11:18,840 --> 00:11:22,120 Speaker 1: Court nominee. A federal judge has ruled that the Justice 196 00:11:22,120 --> 00:11:25,840 Speaker 1: Department cannot force Apple to give the FBI access to 197 00:11:26,240 --> 00:11:29,560 Speaker 1: locked iPhone data in a New York drug case. The 198 00:11:29,600 --> 00:11:33,240 Speaker 1: Brooklyn ruling could affect a larger debate about privacy rights 199 00:11:33,400 --> 00:11:36,520 Speaker 1: versus national security. The ruling could pay the way in 200 00:11:36,559 --> 00:11:40,199 Speaker 1: Apple's fight against the California judges order that it creates 201 00:11:40,280 --> 00:11:44,319 Speaker 1: specialized software to help the FBI hack into an iPhone 202 00:11:44,520 --> 00:11:48,280 Speaker 1: linked to the San Bernardino terrorism investigation. Global News twenty 203 00:11:48,280 --> 00:11:52,120 Speaker 1: four hours a day, powered by our journalists. I'm Michael Barr, 204 00:11:52,160 --> 00:11:56,000 Speaker 1: Mike Tom, Michael Barr, Thanks so much. You can features 205 00:11:56,040 --> 00:11:59,360 Speaker 1: up fifteen, down, features up one four on this super 206 00:11:59,360 --> 00:12:08,240 Speaker 1: Tuesday from Washington. This is Bloomberg Surveillance. Bloomberg Surveillance brought 207 00:12:08,240 --> 00:12:10,240 Speaker 1: you by Sector Spider et s. Why by a single 208 00:12:10,240 --> 00:12:12,600 Speaker 1: stock when you can invest in the entire sector. Visits 209 00:12:12,600 --> 00:12:16,480 Speaker 1: Sector spdrs dot com or call one Sector g t S. 210 00:12:22,440 --> 00:12:25,880 Speaker 1: Global Business News twenty four hours a day, if Bloomberg 211 00:12:25,880 --> 00:12:28,960 Speaker 1: dot Com, the radio plus mobile app and on your radio. 212 00:12:29,280 --> 00:12:33,040 Speaker 1: This is a Bloomberg Business Flash And I'm Karen Moscow. 213 00:12:33,080 --> 00:12:36,920 Speaker 1: This updates brought to you by American Arbitration Association, International 214 00:12:36,960 --> 00:12:40,559 Speaker 1: Trade or Business dispute resolved faster with the International Center 215 00:12:40,600 --> 00:12:44,080 Speaker 1: for a Dispute Resolution the leader in alternative dispute resolution 216 00:12:44,120 --> 00:12:47,800 Speaker 1: around the world i c d R dot org. Global 217 00:12:47,880 --> 00:12:51,480 Speaker 1: stocks are rallying, emerging market currencies rising, in crude oil 218 00:12:51,559 --> 00:12:55,959 Speaker 1: climbing after investors across Asia responded favorably to stimulus in China. 219 00:12:56,240 --> 00:12:59,160 Speaker 1: To check the markets every fifteen minutes throughout the trading day. 220 00:12:59,160 --> 00:13:02,280 Speaker 1: On Bloomberg SNP E Mini future is up sixteen points, 221 00:13:02,360 --> 00:13:04,920 Speaker 1: Dow EU Mini futures up a hundred twenty seven, NASA 222 00:13:04,960 --> 00:13:07,920 Speaker 1: documity futures up thirty six. That acts in Germany's up 223 00:13:07,960 --> 00:13:11,480 Speaker 1: one point seven percent ten. Your treasury down four thirty seconds, 224 00:13:11,480 --> 00:13:14,319 Speaker 1: the yield one point seven five percent. Nom X screwed 225 00:13:14,320 --> 00:13:16,720 Speaker 1: oil up one point six percent, or fifty three cents 226 00:13:16,720 --> 00:13:19,400 Speaker 1: to thirty four twenty eight a barrel. Comex gold up 227 00:13:19,400 --> 00:13:22,240 Speaker 1: one percent or twelve dollars to twelve forty six fifty 228 00:13:22,240 --> 00:13:25,120 Speaker 1: an ounce. The euro a dollar oh eight seven three. 229 00:13:25,200 --> 00:13:28,160 Speaker 1: The end one thirteen point one one. That's a Bloomberg 230 00:13:28,160 --> 00:13:31,679 Speaker 1: business flash. Tom and Mike Karen, thank you so much. 231 00:13:31,720 --> 00:13:34,200 Speaker 1: Super Tuesday. We are in a news bureau in Washington, 232 00:13:34,800 --> 00:13:38,560 Speaker 1: getting ready for all of Bloomberg Media's coverage through the evening, 233 00:13:39,320 --> 00:13:43,480 Speaker 1: many people of Bloomberg Politics article like talking about landslides 234 00:13:43,520 --> 00:13:47,920 Speaker 1: on both sides of the um aisle. Jason Furman with us, 235 00:13:49,120 --> 00:13:54,280 Speaker 1: the chairman of the Presidents Council of Economic Advisors, Jason 236 00:13:54,360 --> 00:13:57,839 Speaker 1: within the great divide that we see in America, that 237 00:13:58,000 --> 00:14:01,679 Speaker 1: the terrific success you've had lowering the deficit, lowering the 238 00:14:01,760 --> 00:14:06,440 Speaker 1: unemployment rate, the level of miserable out there, I've never 239 00:14:06,480 --> 00:14:10,920 Speaker 1: seen the number of people they flat out feel they're 240 00:14:10,960 --> 00:14:15,400 Speaker 1: not participating. Why aren't they first? So I'm not sure 241 00:14:15,400 --> 00:14:18,240 Speaker 1: I agree with that. You look at measures of consumer sentiment, 242 00:14:19,040 --> 00:14:23,080 Speaker 1: they reached the highest levels in that they had, you 243 00:14:23,120 --> 00:14:26,040 Speaker 1: know since two thousand and four. You know they've fallen 244 00:14:26,080 --> 00:14:27,920 Speaker 1: down a little bit with the market. You know, one 245 00:14:27,960 --> 00:14:31,080 Speaker 1: thing is gas prices being so low always show up 246 00:14:31,520 --> 00:14:35,600 Speaker 1: in sentiment. Consumer spending has been one of the strengths 247 00:14:35,600 --> 00:14:40,960 Speaker 1: in the US econom When spending, I think we're spending 248 00:14:41,000 --> 00:14:43,280 Speaker 1: a lot of it. Um It started out slowly. The 249 00:14:43,320 --> 00:14:45,880 Speaker 1: first quarter, we didn't, the second, and third we did. 250 00:14:46,320 --> 00:14:49,440 Speaker 1: The fourth. Some strange things happened. Warm weather meant utility 251 00:14:49,480 --> 00:14:52,080 Speaker 1: bills went down. But I look at a range of research, 252 00:14:52,120 --> 00:14:54,480 Speaker 1: and I think we are spending it, you know. But 253 00:14:54,480 --> 00:14:57,160 Speaker 1: but in terms of what's frustrating people after a couple 254 00:14:57,160 --> 00:15:00,920 Speaker 1: of decades of income growing more slowly than it should, 255 00:15:01,440 --> 00:15:04,400 Speaker 1: layer on top of that a huge reception, you know 256 00:15:04,480 --> 00:15:06,720 Speaker 1: that we're not all the way dug out of you. 257 00:15:06,880 --> 00:15:11,280 Speaker 1: I'd be frustrated too, So I I understand the frustration 258 00:15:11,880 --> 00:15:16,480 Speaker 1: that people have, But that doesn't mean that people don't 259 00:15:16,520 --> 00:15:19,640 Speaker 1: recognize progress and don't get more optimistic as a result 260 00:15:19,720 --> 00:15:22,960 Speaker 1: of that progress. Well, do you think give me your 261 00:15:23,000 --> 00:15:26,680 Speaker 1: forecast for the economy as of the first Tuesday in November. 262 00:15:29,480 --> 00:15:31,360 Speaker 1: You know, I think our unemployment rate is going to 263 00:15:31,440 --> 00:15:33,560 Speaker 1: continue to trend down slightly. I think we're going to 264 00:15:33,720 --> 00:15:38,680 Speaker 1: have growth above two percent this year. And the most 265 00:15:38,760 --> 00:15:42,440 Speaker 1: important thing to look at is wages. And I'd like 266 00:15:42,520 --> 00:15:46,680 Speaker 1: to see continued real wage growth, some strengthening of our 267 00:15:46,800 --> 00:15:49,000 Speaker 1: real wage growth, and that's going to be the most 268 00:15:49,040 --> 00:15:51,200 Speaker 1: important test for the economy. I mean, do we see 269 00:15:51,240 --> 00:15:55,760 Speaker 1: something that people will feel happy about if you accept 270 00:15:55,800 --> 00:15:59,000 Speaker 1: the truism that it's always the economy stupid in the elections? 271 00:16:00,320 --> 00:16:03,480 Speaker 1: You know, I think, um like this, when you see 272 00:16:03,520 --> 00:16:05,880 Speaker 1: the fastest job growth you have since the ninety nineties. 273 00:16:05,920 --> 00:16:08,680 Speaker 1: You know, there's a lot to feel good about in 274 00:16:08,760 --> 00:16:11,360 Speaker 1: our economy right now. You saw Warren Buffett out there, 275 00:16:11,840 --> 00:16:14,240 Speaker 1: you know, the other day, talking about how America is 276 00:16:14,240 --> 00:16:17,240 Speaker 1: a great country and not to believe the naysayers. That's 277 00:16:17,240 --> 00:16:20,400 Speaker 1: a message the President had in his State of the 278 00:16:20,480 --> 00:16:24,160 Speaker 1: Union address. He's trying to depict an optimistic, positive future 279 00:16:24,200 --> 00:16:27,360 Speaker 1: for America while also talking about the things we need 280 00:16:27,400 --> 00:16:30,360 Speaker 1: to do to make it even better. You know, expanding trade, 281 00:16:30,880 --> 00:16:34,760 Speaker 1: continuing to lower our deficit, reforming our business tax system, 282 00:16:34,840 --> 00:16:38,160 Speaker 1: investing in infrastructure. All of those are things we need 283 00:16:38,240 --> 00:16:40,360 Speaker 1: to do to raise our growth. We also need to 284 00:16:40,360 --> 00:16:42,680 Speaker 1: make sure more people sharing that growth with steps like 285 00:16:42,680 --> 00:16:45,040 Speaker 1: a higher minimum wage. There's a lot we need to 286 00:16:45,120 --> 00:16:48,160 Speaker 1: do as a country, and you know, that's the debate 287 00:16:48,200 --> 00:16:50,120 Speaker 1: I'd love our country to have over the next year. 288 00:16:50,520 --> 00:16:53,600 Speaker 1: The Tories still well and Sarah McGregor have a spectacular 289 00:16:53,720 --> 00:16:57,840 Speaker 1: article out today for Bloomberg summarizing the angst and sort 290 00:16:57,840 --> 00:17:00,640 Speaker 1: of how we got here on this Super Tuesday. The 291 00:17:00,720 --> 00:17:05,159 Speaker 1: basic theme is a lot of Americans agreeing with everything 292 00:17:05,160 --> 00:17:08,960 Speaker 1: you're saying, except they're not part of Jason Furman's America. 293 00:17:09,280 --> 00:17:14,240 Speaker 1: Are they removed? Because of technological skills. Are they removed 294 00:17:14,240 --> 00:17:19,640 Speaker 1: because of technological aptitude. That's one of the biggest questions 295 00:17:19,640 --> 00:17:24,560 Speaker 1: we're facing. And but it is a study that needs 296 00:17:24,600 --> 00:17:26,959 Speaker 1: to be done. Yeah. Absolutely, And you know, I'll tell 297 00:17:26,960 --> 00:17:30,239 Speaker 1: you one thing that concerns me is you look at 298 00:17:30,280 --> 00:17:34,479 Speaker 1: the labor force participation right in the United States, and 299 00:17:34,720 --> 00:17:39,000 Speaker 1: for men it's been falling for sixty years now, for 300 00:17:39,080 --> 00:17:42,640 Speaker 1: women it's been falling for fifteen years now. We are 301 00:17:42,800 --> 00:17:45,600 Speaker 1: lower than most of the other advanced economies in both 302 00:17:45,600 --> 00:17:48,680 Speaker 1: of those dimensions. And you know, we need to figure 303 00:17:48,680 --> 00:17:51,240 Speaker 1: out a better way to get people into work. I think, 304 00:17:51,680 --> 00:17:55,960 Speaker 1: you know, more flexible workplaces, childcare, investments in infrastructure is 305 00:17:56,000 --> 00:17:59,760 Speaker 1: a set of things that were Larry Summers and I 306 00:17:59,800 --> 00:18:02,439 Speaker 1: are Dubai. He brought it up twice. He brought up 307 00:18:02,520 --> 00:18:06,800 Speaker 1: JFK's terminals. Terminal one at JFK worst place in the world. 308 00:18:07,520 --> 00:18:10,080 Speaker 1: Why you're in the White House, you're in those meetings. 309 00:18:10,600 --> 00:18:14,240 Speaker 1: What is stopping us from fixing the potholes on fifty 310 00:18:14,320 --> 00:18:18,119 Speaker 1: ninth Street. Well, the President's had, you know, ambitious proposals 311 00:18:18,119 --> 00:18:21,840 Speaker 1: since his first day in office on infrastructure. We saw 312 00:18:22,000 --> 00:18:24,080 Speaker 1: last year at the end of the year, Congress took 313 00:18:24,119 --> 00:18:26,959 Speaker 1: a step. They had a five year reauthorization of our 314 00:18:27,000 --> 00:18:31,760 Speaker 1: surface transportation programs covering highways and transit. They increased the 315 00:18:31,760 --> 00:18:34,560 Speaker 1: amount of spending by about five percent in real terms. 316 00:18:34,560 --> 00:18:37,320 Speaker 1: So that's a good thing, more stable funding, more funding. 317 00:18:37,720 --> 00:18:40,600 Speaker 1: But it's not enough. It's just the first step. We 318 00:18:40,640 --> 00:18:44,520 Speaker 1: need to be doing a lot more. Alan Greenspan told 319 00:18:44,600 --> 00:18:48,120 Speaker 1: us yesterday that his biggest problem he faces right now 320 00:18:48,160 --> 00:18:50,320 Speaker 1: is uncertainty. You don't know what's gonna happen with China, 321 00:18:50,359 --> 00:18:52,520 Speaker 1: don't know what's gonna happen with oil prices, don't know 322 00:18:52,560 --> 00:18:57,040 Speaker 1: what's gonna happen in the political process. As a fellow economist, 323 00:18:57,640 --> 00:19:00,119 Speaker 1: are you as uncertain as he is in his? It 324 00:19:00,160 --> 00:19:02,520 Speaker 1: as hard as he suggests to understand what's going to 325 00:19:02,600 --> 00:19:04,840 Speaker 1: happen going forward. I think there's a lot of puzzles 326 00:19:04,840 --> 00:19:06,879 Speaker 1: in the economy right now. The jobs date and the 327 00:19:06,920 --> 00:19:10,200 Speaker 1: g d P tats telling you do different stories services 328 00:19:10,200 --> 00:19:13,040 Speaker 1: and manufacturing, or telling you to two different stories. The 329 00:19:13,160 --> 00:19:15,560 Speaker 1: U S economy versus the global economy. You're telling you 330 00:19:15,640 --> 00:19:19,239 Speaker 1: two different stories. The real economy versus financial markets are 331 00:19:19,280 --> 00:19:21,960 Speaker 1: telling two different stories. See see you know a lot 332 00:19:22,000 --> 00:19:25,240 Speaker 1: of different stories depending on what you're looking at. I 333 00:19:25,280 --> 00:19:27,800 Speaker 1: tend to focus, you know, mostly on the United States, 334 00:19:28,359 --> 00:19:31,639 Speaker 1: mostly on the real economy, mostly on the job market. 335 00:19:31,680 --> 00:19:33,880 Speaker 1: And if that's what you do, um, you do see 336 00:19:33,920 --> 00:19:36,680 Speaker 1: something positive right now, Jackson, Thank you so much. Jason 337 00:19:36,720 --> 00:19:40,879 Speaker 1: Furman is the Chairman of the President Council on Economic Advice. 338 00:19:40,960 --> 00:19:43,040 Speaker 1: Is what's your next budget to You've been right fun 339 00:19:43,480 --> 00:19:47,240 Speaker 1: five pages this week we are The President submitted his 340 00:19:47,320 --> 00:19:51,160 Speaker 1: last budget to Congress last month. Last month. So that's 341 00:19:51,160 --> 00:19:57,200 Speaker 1: it the coast for thirteen weeks, right, Thank you so much. 342 00:19:57,280 --> 00:20:00,560 Speaker 1: Michael McKee and Tom keene is super Tuesday from Washington. 343 00:20:01,000 --> 00:20:08,119 Speaker 1: Stay with us. Bloomberg Surveillance is brought to you by 344 00:20:08,160 --> 00:20:10,720 Speaker 1: Flushing Bank. Open a complete business checking account with fifteen 345 00:20:10,720 --> 00:20:12,720 Speaker 1: thousand dollars a more and get a free sixteen gig 346 00:20:12,760 --> 00:20:15,879 Speaker 1: WiFi tablet. Visit Flushing bank dot com for details. Member 347 00:20:15,960 --> 00:20:19,680 Speaker 1: F D I C Equal Housing Lender. Thank you very much. 348 00:20:23,359 --> 00:20:27,680 Speaker 1: Broadcasting live to New York, Bloomberg eleventh yo to Washington, 349 00:20:27,760 --> 00:20:32,760 Speaker 1: d C, Bloomberg to Boston, Bloomberg twelve hundreds to San Francisco, 350 00:20:32,880 --> 00:20:37,320 Speaker 1: Bloomberg to the country. Suis Exam Channel one ninety and 351 00:20:37,440 --> 00:20:41,480 Speaker 1: around the globe. The Bloomberg Radio Plus Appen Bloomberg dot Com. 352 00:20:41,520 --> 00:20:46,919 Speaker 1: This is Bloomberg Surveillance. Welcome back to Bloomberg Surveillance. I'm 353 00:20:46,920 --> 00:20:49,560 Speaker 1: Michael McKee along with Tom Keene in Washington, d C. 354 00:20:49,840 --> 00:20:54,200 Speaker 1: For this Super Tuesday Bloomberg nine point one in Washington. 355 00:20:55,080 --> 00:20:57,919 Speaker 1: Here's what we're watching. In terms of corporate news today, 356 00:20:57,960 --> 00:21:01,040 Speaker 1: Barkley shares plunging this morning. They are down nine percent. 357 00:21:01,119 --> 00:21:03,760 Speaker 1: New CEO Just Daley selling down at stake in its 358 00:21:03,800 --> 00:21:07,320 Speaker 1: Africa business, cutting the company's dividend, moving more assets into 359 00:21:07,359 --> 00:21:10,320 Speaker 1: its non core unit. On the other side, Intercontinental Exchange 360 00:21:10,320 --> 00:21:12,879 Speaker 1: says it's considering making an offer for the London Stock 361 00:21:12,920 --> 00:21:17,040 Speaker 1: Exchange week after Deutsche bors did the announcement, propelling LCS 362 00:21:17,080 --> 00:21:19,879 Speaker 1: shares to a record high there, up eight percent this morning. 363 00:21:20,080 --> 00:21:22,760 Speaker 1: And Chevron considering a sale of its geo thermal assets 364 00:21:22,760 --> 00:21:25,600 Speaker 1: in Asia, seeking to counter a slump and energy markets. 365 00:21:25,640 --> 00:21:28,760 Speaker 1: One person familiar with the talks says operations could fetch 366 00:21:28,760 --> 00:21:32,679 Speaker 1: as much as three billion dollars. Now, let's check out 367 00:21:32,720 --> 00:21:36,000 Speaker 1: with Michael Barr and get the latest world in national headlines. Michael, Mike, 368 00:21:36,040 --> 00:21:38,080 Speaker 1: thank you very much. Voters were ahead to the polls 369 00:21:38,080 --> 00:21:41,840 Speaker 1: today for Super Tuesday primaries. Democrats will vote in eleven 370 00:21:41,920 --> 00:21:45,639 Speaker 1: states and American Samoa. Republicans will vote in eleven states. 371 00:21:45,960 --> 00:21:49,320 Speaker 1: Mega Murphy, bureau chief for Bloomberg News and Washington d C, 372 00:21:49,600 --> 00:21:53,720 Speaker 1: was asked about the impact of Republican front runner Donald Trump. Then, 373 00:21:53,760 --> 00:21:56,439 Speaker 1: at the end of today, we may see Donald Trump, 374 00:21:56,480 --> 00:21:59,080 Speaker 1: which is such a huge lead, not only in terms 375 00:21:59,080 --> 00:22:02,280 Speaker 1: of the vote and sort of popular momentum behind them, 376 00:22:02,280 --> 00:22:04,439 Speaker 1: but in terms of the delegate count. And I think 377 00:22:04,520 --> 00:22:07,840 Speaker 1: the Republican Party has only seen this the establishment wing 378 00:22:07,880 --> 00:22:11,360 Speaker 1: of that party quite late and has moved to mobilize 379 00:22:11,400 --> 00:22:13,960 Speaker 1: and sort of, you know, put their forces behind who 380 00:22:13,960 --> 00:22:16,800 Speaker 1: they would prefer um. This is going to be too little, 381 00:22:16,840 --> 00:22:20,159 Speaker 1: too late, I think many people think. Bloomberg will have 382 00:22:20,280 --> 00:22:23,760 Speaker 1: NonStop Super Tuesday coverage throughout the night, starting with a 383 00:22:23,800 --> 00:22:26,400 Speaker 1: special edition of With All Due Respects starting at five 384 00:22:26,440 --> 00:22:29,399 Speaker 1: pm Wall Street time. We will also have analysis on 385 00:22:29,440 --> 00:22:32,760 Speaker 1: how the results will impact the markets. Later today, President 386 00:22:32,760 --> 00:22:35,919 Speaker 1: Obama will sit down with Senate Republicans who have vowed 387 00:22:35,920 --> 00:22:39,280 Speaker 1: to block his nomination to the Supreme Court. A Virginia 388 00:22:39,320 --> 00:22:41,800 Speaker 1: police officer who was shot and killed on her first 389 00:22:41,840 --> 00:22:43,960 Speaker 1: day on the job. It's being laid the rest Today, 390 00:22:44,160 --> 00:22:47,840 Speaker 1: funeral services for Prince William County Officer Ashley Gwindon will 391 00:22:47,840 --> 00:22:50,560 Speaker 1: be held in Woodbridge. Global News twenty four hours a day, 392 00:22:50,600 --> 00:22:53,880 Speaker 1: powered by our journalists and more than a hundred fifty 393 00:22:53,920 --> 00:22:58,800 Speaker 1: news bureaus from around the world. I'm Michael Bark, your 394 00:22:59,160 --> 00:23:02,240 Speaker 1: time now for the Boom NBC Sports Update. Here's John 395 00:23:02,280 --> 00:23:06,080 Speaker 1: stas Alright, Mike. Rangers continue to play well, three straight wins. 396 00:23:06,119 --> 00:23:08,919 Speaker 1: They finished February ten three and one. They haven't had 397 00:23:08,920 --> 00:23:12,000 Speaker 1: a two game losing streak in sixteen. At the Guarden, 398 00:23:12,080 --> 00:23:14,600 Speaker 1: Rangers gave Henry Lundquist the night off, still top Columbus 399 00:23:14,600 --> 00:23:16,960 Speaker 1: two to one and now have the second most points 400 00:23:16,960 --> 00:23:19,800 Speaker 1: in the Eastern Conference. Matt Szucarello scored first period Derek 401 00:23:19,920 --> 00:23:23,200 Speaker 1: step On the game winner shorthanded with less than three 402 00:23:23,200 --> 00:23:25,520 Speaker 1: minutes to go in the third. The Nets with the 403 00:23:25,560 --> 00:23:27,920 Speaker 1: first back to back games at the Staples Center. They'll 404 00:23:27,960 --> 00:23:30,320 Speaker 1: face the lowly Lakers tonight, but against the Clippers, they 405 00:23:30,359 --> 00:23:33,160 Speaker 1: fell one oh five ninety five, so unable to get 406 00:23:33,200 --> 00:23:36,160 Speaker 1: a season high third strade win. Jamal Crawford scored twenty 407 00:23:36,200 --> 00:23:38,600 Speaker 1: six point for l A brook Lopez the Brooklyn with 408 00:23:38,800 --> 00:23:41,320 Speaker 1: twenty five is Kansas emerging is the team to be 409 00:23:41,400 --> 00:23:43,440 Speaker 1: in the upcoming n C Double A tournament. Now ranked 410 00:23:43,480 --> 00:23:46,760 Speaker 1: number one, the Jayhawks pounded Texas on the road eighty 411 00:23:46,880 --> 00:23:51,199 Speaker 1: six fifty six. North Carolina got by Syracuse seventy seventy 412 00:23:51,240 --> 00:23:53,840 Speaker 1: as expected. Yet to use the franchise tag on defensive 413 00:23:53,840 --> 00:23:56,879 Speaker 1: lineman Moe Wilkerson, who doesn't sign a long term deal'll 414 00:23:56,880 --> 00:23:59,960 Speaker 1: make fifteen point seven million next season asked for the team. 415 00:24:00,080 --> 00:24:03,639 Speaker 1: The Jets are forever chasing New England's sint Tom Brady 416 00:24:03,640 --> 00:24:06,840 Speaker 1: into a two year extension through nineteen, when Brady will 417 00:24:06,880 --> 00:24:09,919 Speaker 1: be forty two years old. With Bloomberg NBC Sports Up. 418 00:24:10,280 --> 00:24:15,840 Speaker 1: I'm John Staph, Thank you John. We are watching markets 419 00:24:16,160 --> 00:24:18,800 Speaker 1: in generally a good mood. This morning SMP features of 420 00:24:18,960 --> 00:24:22,520 Speaker 1: seventeen points nine tenths of a percent Stock six hundred 421 00:24:22,600 --> 00:24:25,080 Speaker 1: up by four points in Europe one point one per cent. 422 00:24:25,160 --> 00:24:27,760 Speaker 1: So there's concerned about what might happen on Super Tuesday. 423 00:24:28,040 --> 00:24:31,439 Speaker 1: It's not being reflected in equity markets at the moment. 424 00:24:31,800 --> 00:24:38,320 Speaker 1: This is Bloomberg Surveillance on Bloomberg Radio Worldwide. Welcome back 425 00:24:38,440 --> 00:24:40,919 Speaker 1: to surveillance. I'm Michael McKee. Along with Tom Keene. We 426 00:24:40,960 --> 00:24:44,240 Speaker 1: are in Washington, d C. For coverage of Super Tuesday. 427 00:24:44,240 --> 00:24:50,600 Speaker 1: Bloomberg in Washington, our host this morning. We are fortunate 428 00:24:50,680 --> 00:24:53,760 Speaker 1: this morning to be able to speak with the former 429 00:24:54,000 --> 00:24:57,640 Speaker 1: Chairman of the Federal Reserve, Alan Greenspan. I've been covering 430 00:24:57,720 --> 00:25:00,000 Speaker 1: him for twenty years, and I've never seen him quite 431 00:25:00,119 --> 00:25:04,000 Speaker 1: this pessimistic about the economy. We began by asking him 432 00:25:04,119 --> 00:25:09,280 Speaker 1: what he sees in the realm of monetary policy. What 433 00:25:09,359 --> 00:25:15,160 Speaker 1: are the ramifications to the overall financial system from negative rates? 434 00:25:15,280 --> 00:25:18,720 Speaker 1: Up to a point, negative interest rates have no effect? 435 00:25:18,880 --> 00:25:24,800 Speaker 1: Why because people are willing to accept essentially a negative 436 00:25:24,840 --> 00:25:28,960 Speaker 1: interest rate to hold the claims of these particular countries. 437 00:25:29,560 --> 00:25:33,360 Speaker 1: That's going to change if this goes on, and definitely, 438 00:25:33,480 --> 00:25:36,639 Speaker 1: but somebody's gonna start to move. We don't know what 439 00:25:36,800 --> 00:25:40,520 Speaker 1: happens when that happens. Is it dangerous? Do you think 440 00:25:40,560 --> 00:25:44,000 Speaker 1: a dangerous experiment for so many central banks to be 441 00:25:44,080 --> 00:25:46,159 Speaker 1: doing this. Does it call to mind the beggar that 442 00:25:46,240 --> 00:25:50,840 Speaker 1: neighbor currency policies of the nineteen thirties. Yeah, I wouldn't. 443 00:25:50,880 --> 00:25:54,199 Speaker 1: I don't know over the word dangerous, but it is 444 00:25:54,280 --> 00:25:59,400 Speaker 1: clearly nonproductive. That is, to have this type of situation 445 00:25:59,640 --> 00:26:02,679 Speaker 1: is at the distortion. And remember the big, big argument 446 00:26:02,680 --> 00:26:05,679 Speaker 1: about excessive low interest rates for very long period of 447 00:26:05,720 --> 00:26:10,760 Speaker 1: time is it warps the investment pattern on real investment. 448 00:26:11,600 --> 00:26:15,159 Speaker 1: And clearly, if you have negative interest rates, that is 449 00:26:15,200 --> 00:26:18,520 Speaker 1: going people who can raise funds with negative interest rates, 450 00:26:19,320 --> 00:26:23,600 Speaker 1: their capital investment projects are going to be warped. The 451 00:26:23,680 --> 00:26:27,000 Speaker 1: corporations that you've followed for your with your data analysis, 452 00:26:27,520 --> 00:26:32,240 Speaker 1: are they acting in an unhealthy or improper manner because 453 00:26:32,240 --> 00:26:35,280 Speaker 1: they have a free lunch from low interest rates. Well, 454 00:26:35,320 --> 00:26:38,000 Speaker 1: the problem basically is, and I'm sure they are doing 455 00:26:38,000 --> 00:26:41,359 Speaker 1: it because you can tell what happened as the queys 456 00:26:41,600 --> 00:26:45,920 Speaker 1: opened up with the price earnings race shares rose. We're 457 00:26:45,960 --> 00:26:51,680 Speaker 1: getting signals which are distorted because interest rates are too low. 458 00:26:52,400 --> 00:26:55,600 Speaker 1: People are investing in long term assets. When they do 459 00:26:55,680 --> 00:27:00,080 Speaker 1: invest in long term assets, uh, under the mistaken you 460 00:27:00,119 --> 00:27:01,800 Speaker 1: as to what the rates of return have to be, 461 00:27:02,880 --> 00:27:06,480 Speaker 1: and that means you're going to get misuse of capital. 462 00:27:07,359 --> 00:27:10,720 Speaker 1: The markets these days seem to be telling us that 463 00:27:10,840 --> 00:27:16,639 Speaker 1: we are in trouble. Are we were in trouble basically 464 00:27:16,680 --> 00:27:19,840 Speaker 1: because productivity is done in the order. Do you agree 465 00:27:20,000 --> 00:27:24,520 Speaker 1: with Robert Gordon of Northwestern University that our productivity is 466 00:27:24,600 --> 00:27:29,080 Speaker 1: low because we don't have the technological progress in the 467 00:27:29,160 --> 00:27:32,040 Speaker 1: moment that we had in the middle of the last century. 468 00:27:32,200 --> 00:27:35,880 Speaker 1: Bob runs about book is excellent time, but he has 469 00:27:35,920 --> 00:27:41,080 Speaker 1: a position which I don't think holds very far into 470 00:27:41,119 --> 00:27:43,960 Speaker 1: the future for one important reason which he agrees with actually, 471 00:27:44,800 --> 00:27:50,760 Speaker 1: namely that innovation is something which by its nature cannot 472 00:27:50,840 --> 00:27:55,159 Speaker 1: be forecast. If you could forecast it, it wouldn't be innovation, 473 00:27:56,080 --> 00:28:00,359 Speaker 1: So that saying what the technological capability of it is 474 00:28:00,400 --> 00:28:06,800 Speaker 1: going to be out in the future is questionable. He 475 00:28:06,880 --> 00:28:09,560 Speaker 1: doesn't say that we will have no productivity. He just 476 00:28:09,600 --> 00:28:11,679 Speaker 1: feels it will be lower than it was when you 477 00:28:11,680 --> 00:28:15,480 Speaker 1: were having these major leaps forward. But we're not even 478 00:28:15,480 --> 00:28:19,120 Speaker 1: getting low productivity right now. Why is that? Where has 479 00:28:19,160 --> 00:28:23,399 Speaker 1: it gone? Well, you look productivity or let's put it 480 00:28:23,440 --> 00:28:28,879 Speaker 1: this right, output per hour is driven essentially by real 481 00:28:29,040 --> 00:28:35,359 Speaker 1: capital investment. The data clear on that real capital investment 482 00:28:35,920 --> 00:28:43,640 Speaker 1: is m way below average. Why because business people are 483 00:28:43,920 --> 00:28:48,160 Speaker 1: very uncertain about the future, are you optimistic going forward here? 484 00:28:49,760 --> 00:28:52,200 Speaker 1: I haven't been for quite a one now, and I 485 00:28:52,240 --> 00:28:57,520 Speaker 1: won't be into we can resolve the entitlement progress. Nobody 486 00:28:57,560 --> 00:29:03,480 Speaker 1: wants to touch it. Partners gradually crowding out capital investment, 487 00:29:04,440 --> 00:29:08,360 Speaker 1: and that's crowding out productivity, and that's crowding out the 488 00:29:08,440 --> 00:29:10,560 Speaker 1: standards of living. Where do you want me to go 489 00:29:10,640 --> 00:29:14,760 Speaker 1: from there? Put China in the context of where we 490 00:29:14,840 --> 00:29:21,320 Speaker 1: need to be with China in five and in ten years. Well, 491 00:29:21,440 --> 00:29:25,120 Speaker 1: the big problem is basically China itself. That is, it 492 00:29:25,280 --> 00:29:29,160 Speaker 1: is slowing down its rate of growth quite dramatically, and 493 00:29:29,640 --> 00:29:31,600 Speaker 1: everyone who looks at the data will tell you we're 494 00:29:31,600 --> 00:29:33,960 Speaker 1: not quite sure which data are real in which are not. 495 00:29:34,760 --> 00:29:39,120 Speaker 1: I do think that the seventh seven and a half 496 00:29:39,200 --> 00:29:45,360 Speaker 1: percent annimrator growth is unachievable. I think that what is 497 00:29:45,400 --> 00:29:50,200 Speaker 1: happening is as as China's productivity edges ever closer to 498 00:29:50,240 --> 00:29:53,600 Speaker 1: the level of that exists in the United States, the 499 00:29:53,880 --> 00:29:59,920 Speaker 1: gap closes and the ability to to close the gap 500 00:30:00,560 --> 00:30:03,880 Speaker 1: is more and more difficult, which means that you're going 501 00:30:03,960 --> 00:30:08,520 Speaker 1: to get a convergence between productivity in the United States 502 00:30:08,600 --> 00:30:13,240 Speaker 1: and productivity in China much more clotionally, and that means 503 00:30:13,240 --> 00:30:18,120 Speaker 1: it's going to be a big slowdown in China. The 504 00:30:18,200 --> 00:30:21,080 Speaker 1: former chairman of the Fellow Reserve System, Alan Greenspan, Mike 505 00:30:21,120 --> 00:30:23,440 Speaker 1: I thought a spirited conversation. He had a real sense 506 00:30:23,480 --> 00:30:27,320 Speaker 1: of humor within his very dour outlook. Yeah, he is 507 00:30:27,400 --> 00:30:31,440 Speaker 1: unfortunately more gloomy about the prospects for the economy that 508 00:30:31,480 --> 00:30:33,000 Speaker 1: I have seen him in a very long time. And 509 00:30:33,040 --> 00:30:36,040 Speaker 1: he says it's because of uncertainty so much. He's never 510 00:30:36,080 --> 00:30:40,120 Speaker 1: seen as many as much uncertainty given what's going on 511 00:30:40,160 --> 00:30:42,760 Speaker 1: in the world today. Well, more of this, Alan Greenspan 512 00:30:42,880 --> 00:30:44,800 Speaker 1: look for that of course on digital media. We hope 513 00:30:44,800 --> 00:30:47,240 Speaker 1: to get it out to you on podcast is Well, 514 00:30:47,360 --> 00:30:49,800 Speaker 1: that's a nice announcement. We're really making an effort to 515 00:30:50,600 --> 00:30:53,000 Speaker 1: get out all of our interviews at Michael McKee and 516 00:30:53,000 --> 00:30:55,640 Speaker 1: I do. You'll see those two iTunes, not only the 517 00:30:55,640 --> 00:31:00,840 Speaker 1: complete Bloomberg Surveillance files, but also the individual interviews as well. 518 00:31:00,880 --> 00:31:05,080 Speaker 1: We'll have much more on that, uh. Coming up, It 519 00:31:05,200 --> 00:31:08,680 Speaker 1: is super Tuesday. We are in Washington for two days 520 00:31:09,240 --> 00:31:12,240 Speaker 1: looking for coverage and reaction tomorrow to what appears to 521 00:31:12,280 --> 00:31:16,600 Speaker 1: be good days for Secretary Clinton and for Mr Trump. 522 00:31:16,920 --> 00:31:23,560 Speaker 1: Stay with us from Washington Bloomberg Saveillance. Coming up, we 523 00:31:23,600 --> 00:31:27,160 Speaker 1: will talk with Senator Angus King. He is an independent 524 00:31:27,520 --> 00:31:30,600 Speaker 1: from Maine. What does he look for in the economy, 525 00:31:30,680 --> 00:31:38,000 Speaker 1: in the political world in the campaign this year? Glombo 526 00:31:38,040 --> 00:31:41,400 Speaker 1: Business News twenty four hours a day at Bloomberg dot com, 527 00:31:41,680 --> 00:31:44,960 Speaker 1: the Radio Plus mobile app and on your radio. He's 528 00:31:45,000 --> 00:31:48,680 Speaker 1: a Bloomberg Business Flash and I'm Karen Moscow. This updates 529 00:31:48,680 --> 00:31:52,080 Speaker 1: brought to you by Oisner Emper. When entrepreneurs faced challenges 530 00:31:52,200 --> 00:31:55,320 Speaker 1: like choosing a business structure or access to capital, they 531 00:31:55,360 --> 00:31:58,320 Speaker 1: call the accountants and advisors at Osner Emper connect with 532 00:31:58,360 --> 00:32:02,680 Speaker 1: them Osner Amper dot COM's flash tech. Global stocks are rallying, 533 00:32:02,760 --> 00:32:06,120 Speaker 1: emerging market currencies rising, in crude oil climbing after investors 534 00:32:06,120 --> 00:32:09,720 Speaker 1: across Asia responded favorably to stimulus in China. To check 535 00:32:09,800 --> 00:32:12,240 Speaker 1: the markets every fifteen minutes throughout the trading day. On 536 00:32:12,320 --> 00:32:15,960 Speaker 1: Bloomberg SNP E mini futures of fifteen points, Dow EMNI 537 00:32:16,000 --> 00:32:19,600 Speaker 1: futures have a hundred nineteen nasadac Emuni futures up thirty two. 538 00:32:19,680 --> 00:32:22,480 Speaker 1: The decks in Germany's up one and a half percent ten, 539 00:32:22,560 --> 00:32:25,120 Speaker 1: Your treasury down four thirty seconds. The yelled one point 540 00:32:25,160 --> 00:32:28,280 Speaker 1: seven five percent. Nimex crude oil up one point seven 541 00:32:28,280 --> 00:32:31,040 Speaker 1: percent or fifty seven cents to thirty four thirty two. 542 00:32:31,040 --> 00:32:33,920 Speaker 1: A barrel Gomex gold up nine ten percent or eleven 543 00:32:33,920 --> 00:32:37,160 Speaker 1: dollars to twelve forty five, forty announced the Euro at 544 00:32:37,160 --> 00:32:39,880 Speaker 1: a dollar oh eight seven five, the EN one thirteen 545 00:32:40,040 --> 00:32:43,480 Speaker 1: point oh six, and that's a Bloomberg business flash. Tom 546 00:32:43,520 --> 00:32:47,400 Speaker 1: and Mike Karen, thank you very much. Time now for 547 00:32:47,480 --> 00:32:49,880 Speaker 1: the Bloomberg n j I T STEM Report, brought to 548 00:32:49,880 --> 00:32:53,000 Speaker 1: you by New Jersey Institute of Technology partnering with government 549 00:32:53,040 --> 00:32:56,040 Speaker 1: and industry to apply the university's world class research assets 550 00:32:56,080 --> 00:32:59,240 Speaker 1: to innovate and spur economic growth. Learn more at n 551 00:32:59,320 --> 00:33:02,600 Speaker 1: j I T dot a d U. Here's Bob Michael, 552 00:33:02,600 --> 00:33:06,080 Speaker 1: thank you. In good morning, Here's what's making news and science, Technology, engineering, 553 00:33:06,160 --> 00:33:09,239 Speaker 1: and math. Attorney General Laretta Lynch is holding out an 554 00:33:09,240 --> 00:33:13,400 Speaker 1: olive branch to technology companies, calling for a fruitful partnership 555 00:33:13,440 --> 00:33:16,600 Speaker 1: to resolve the dispute over smartphone encryption that's driven a 556 00:33:16,680 --> 00:33:20,480 Speaker 1: wedge between u S security agencies and company executives. Lynch 557 00:33:20,520 --> 00:33:22,600 Speaker 1: makes the call in prepared remarks for the r s 558 00:33:22,640 --> 00:33:25,680 Speaker 1: A Cybersecurity conference in San Francisco today. It's one of 559 00:33:25,720 --> 00:33:29,080 Speaker 1: the biggest business events for the security industry. Lynch urges 560 00:33:29,160 --> 00:33:32,000 Speaker 1: an open dialogue that allows both sides to hear each 561 00:33:32,000 --> 00:33:35,160 Speaker 1: other's concerns and learn from each other's perspectives she's likely 562 00:33:35,200 --> 00:33:37,280 Speaker 1: to get an hear full from the technology companies. The 563 00:33:37,320 --> 00:33:39,960 Speaker 1: president of r s A, the computer and network security 564 00:33:39,960 --> 00:33:42,720 Speaker 1: company that puts on the conference, says, government officials are 565 00:33:42,800 --> 00:33:46,320 Speaker 1: looking through a very narrow and myopic lens with demands 566 00:33:46,360 --> 00:33:50,080 Speaker 1: to compromise encryption. That's this morning's Bloomberg n G I 567 00:33:50,160 --> 00:33:54,320 Speaker 1: t STEM Report. Michael, thank you, Bob. Coming up this 568 00:33:54,360 --> 00:33:58,280 Speaker 1: afternoon on Bloomberg Television at four o'clock Attorney General Laretta Lynch. 569 00:33:58,320 --> 00:34:01,320 Speaker 1: You'll want to watch that. Had it also here on 570 00:34:01,720 --> 00:34:03,800 Speaker 1: Bloomberg Surveillance. We'll be talking with a member of the 571 00:34:03,840 --> 00:34:06,440 Speaker 1: Judiciary Committee who will be hearing from both sides in 572 00:34:06,440 --> 00:34:11,319 Speaker 1: the Apple dispute today. Congressman Tom MARINOT, Michael McKay, and 573 00:34:11,360 --> 00:34:17,160 Speaker 1: Tom Keane in support of Bloomberg FM Washington Super Tuesday. 574 00:34:17,200 --> 00:34:20,840 Speaker 1: We are at our wonderful news bureau in Washington. He 575 00:34:20,960 --> 00:34:26,520 Speaker 1: won an election on November eighth with thirty of the vote. No, 576 00:34:26,680 --> 00:34:30,120 Speaker 1: it's not Continental Europe. It's Maine. His name is Angus King. 577 00:34:30,160 --> 00:34:34,400 Speaker 1: He's a Senator from Maine, and he is decidedly an independent. 578 00:34:34,480 --> 00:34:37,919 Speaker 1: I think Senator King, there's no one I'd rather talk 579 00:34:38,000 --> 00:34:42,560 Speaker 1: to today. Than you. Is our two party system at risk? 580 00:34:42,719 --> 00:34:46,600 Speaker 1: That's the money question. I just want to know how 581 00:34:46,640 --> 00:34:51,120 Speaker 1: our two party system moves forward after what we've seen. Well, 582 00:34:51,200 --> 00:34:52,759 Speaker 1: I think it is. I mean, I think I think 583 00:34:52,800 --> 00:34:58,680 Speaker 1: what we're seeing today is a a disaffection from government 584 00:34:58,719 --> 00:35:02,560 Speaker 1: itself and certainly from the parties. Uh. There's a growing 585 00:35:02,719 --> 00:35:05,120 Speaker 1: number of people that just aren't affiliated, and I think 586 00:35:05,160 --> 00:35:08,520 Speaker 1: particularly young people. It's you know, it's interesting both Donald 587 00:35:08,560 --> 00:35:12,120 Speaker 1: Trump Trump and Bernie Sanders are bringing new people into 588 00:35:12,200 --> 00:35:15,439 Speaker 1: these uh into these primaries. But whether they have any 589 00:35:15,440 --> 00:35:19,080 Speaker 1: allegiance or connection long term to one of the parties, 590 00:35:19,120 --> 00:35:22,319 Speaker 1: I think is a very open question. I want to 591 00:35:22,320 --> 00:35:24,319 Speaker 1: get to some of the issues facing the Senate in 592 00:35:24,360 --> 00:35:26,440 Speaker 1: just a second, but as long as Tom brought up 593 00:35:26,440 --> 00:35:29,800 Speaker 1: this idea, can I ask this. We have seen talk 594 00:35:30,160 --> 00:35:34,080 Speaker 1: of wealthy Republican donors, if they don't like the nominee, 595 00:35:34,200 --> 00:35:37,400 Speaker 1: trying to finance an independent campaign. And obviously there have 596 00:35:37,440 --> 00:35:42,160 Speaker 1: been talk of other people uh self funding their own 597 00:35:42,200 --> 00:35:45,719 Speaker 1: independent campaigns as somebody who ran as an independent and 598 00:35:45,800 --> 00:35:49,719 Speaker 1: got elected. Can that work at a national level, Well, 599 00:35:49,760 --> 00:35:53,480 Speaker 1: they're they're tremendous UH sort of logistical challenges. The first 600 00:35:53,560 --> 00:35:56,560 Speaker 1: is getting on the ballot in all fifty states. Uh. 601 00:35:56,600 --> 00:36:00,120 Speaker 1: That's a very very expensive proposition, and the time is 602 00:36:00,200 --> 00:36:02,920 Speaker 1: running short to to do that just as a as 603 00:36:02,920 --> 00:36:06,600 Speaker 1: a legal and practical matter. But uh, you know, I 604 00:36:06,880 --> 00:36:08,920 Speaker 1: wouldn't rule it out. I mean when I ran for 605 00:36:09,000 --> 00:36:11,399 Speaker 1: governor of Maine in by the way, I did win 606 00:36:11,480 --> 00:36:13,400 Speaker 1: my later elections by a little bit more than that 607 00:36:13,440 --> 00:36:17,600 Speaker 1: one percent that you mentioned thirty seven or thank you right, 608 00:36:17,880 --> 00:36:20,800 Speaker 1: give me, I give you a break, but uh, uh, 609 00:36:20,840 --> 00:36:23,080 Speaker 1: you know, it's it's a it's very tough because you 610 00:36:23,080 --> 00:36:26,480 Speaker 1: have to go state by state. You've got the electoral college. Uh, 611 00:36:26,520 --> 00:36:29,000 Speaker 1: and you've got to all the states essentially except from 612 00:36:29,040 --> 00:36:30,800 Speaker 1: one or two main being one of them are winner 613 00:36:30,840 --> 00:36:34,280 Speaker 1: take Allso if you get one third plus one in Ohio, 614 00:36:34,320 --> 00:36:37,000 Speaker 1: for example, you get all of Ohio's electoral votes. So 615 00:36:37,400 --> 00:36:41,000 Speaker 1: it's really not impossible, but it is a tall order. 616 00:36:41,040 --> 00:36:43,640 Speaker 1: But you know, uh, this may be a year when 617 00:36:44,040 --> 00:36:48,200 Speaker 1: when people are looking for for a third option, I 618 00:36:48,280 --> 00:36:50,560 Speaker 1: think of your courage to run or you know, years 619 00:36:50,600 --> 00:36:53,200 Speaker 1: ago a low liker of Connecticut and others that have 620 00:36:53,680 --> 00:36:57,520 Speaker 1: taken a singular road, and one of the greatest assumptions, 621 00:36:57,560 --> 00:37:01,200 Speaker 1: particularly from elites, is the reason independence do well as 622 00:37:01,239 --> 00:37:06,359 Speaker 1: the voters are uninformed about civics, uninformed about politics. I've 623 00:37:06,360 --> 00:37:09,880 Speaker 1: heard that this time around. Is this an America dumber 624 00:37:09,920 --> 00:37:15,920 Speaker 1: about politics and civics or do we underestimate America's sophistication 625 00:37:15,960 --> 00:37:19,160 Speaker 1: to make a political decision? Well, I I think you know, 626 00:37:19,320 --> 00:37:21,960 Speaker 1: I could argue it's the opposite, that that people are 627 00:37:22,000 --> 00:37:25,440 Speaker 1: fed up and they have every right to be that. Uh, 628 00:37:25,480 --> 00:37:31,640 Speaker 1: that a vote uh, outside of what the conventional political 629 00:37:31,960 --> 00:37:34,960 Speaker 1: parties and and program is giving them is not an 630 00:37:34,960 --> 00:37:38,520 Speaker 1: irrational choice. Now, they may not be particularly well informed 631 00:37:38,520 --> 00:37:42,319 Speaker 1: on any given issue, but the instinct is that the 632 00:37:42,400 --> 00:37:46,520 Speaker 1: system isn't working and uh, there needs to be a change. Uh. 633 00:37:46,680 --> 00:37:50,680 Speaker 1: And and in fact that's how I won. You had 634 00:37:50,680 --> 00:37:54,279 Speaker 1: a strong Democratic Republican Republican candidate and I ran as 635 00:37:54,320 --> 00:37:58,560 Speaker 1: a business guy, an outsider. And uh one is very 636 00:37:58,560 --> 00:38:02,920 Speaker 1: close election. But I think that I think you can 637 00:38:03,000 --> 00:38:05,080 Speaker 1: argue it both ways. But I think part of it 638 00:38:05,120 --> 00:38:09,359 Speaker 1: is whether they are sophisticated on the particular issues. Uh 639 00:38:09,560 --> 00:38:11,880 Speaker 1: may or may not be true, but they know something's 640 00:38:11,920 --> 00:38:14,080 Speaker 1: wrong and they want to try to change it. They 641 00:38:14,080 --> 00:38:16,120 Speaker 1: may have they may be they may not have the 642 00:38:16,200 --> 00:38:20,080 Speaker 1: right solution. Uh, but anybody that argues that our political 643 00:38:20,120 --> 00:38:23,719 Speaker 1: system is is hunky dory these days, isn't living on 644 00:38:23,760 --> 00:38:28,000 Speaker 1: the same planet. All you have to do to ratify 645 00:38:28,080 --> 00:38:30,760 Speaker 1: that is look at the fight over the Supreme Court. 646 00:38:31,120 --> 00:38:35,239 Speaker 1: How how is this going to leave the Senate when 647 00:38:36,000 --> 00:38:39,240 Speaker 1: we are finished with this debate? If the President nominates 648 00:38:39,239 --> 00:38:41,680 Speaker 1: somebody and the Republicans just ignore him, it's going to 649 00:38:41,719 --> 00:38:45,919 Speaker 1: become even more polarized. Sure, and you use the key word, 650 00:38:45,960 --> 00:38:49,960 Speaker 1: which is debate. Right now, the Republican position is there 651 00:38:50,000 --> 00:38:54,720 Speaker 1: will be no debate, And I just I can't really 652 00:38:54,760 --> 00:38:57,360 Speaker 1: figure out that from either a policy or a political 653 00:38:57,400 --> 00:39:00,160 Speaker 1: point of view. Uh. There are lots of terms and 654 00:39:00,200 --> 00:39:02,799 Speaker 1: phrases in the Constitution we can argue about. People can 655 00:39:02,840 --> 00:39:06,520 Speaker 1: write law review articles about what this or that uh 656 00:39:06,719 --> 00:39:11,319 Speaker 1: sentence means. But the word for the number four and 657 00:39:11,360 --> 00:39:16,560 Speaker 1: the words shall are not among those uh those unclear provisions. 658 00:39:16,560 --> 00:39:19,120 Speaker 1: The presence term is four years, not three years and 659 00:39:19,239 --> 00:39:23,520 Speaker 1: one month. And the Constitution and article to section two 660 00:39:23,520 --> 00:39:27,200 Speaker 1: says the President shall nominate with advice and consent of 661 00:39:27,280 --> 00:39:30,680 Speaker 1: the Senate, UH, members of the Supreme Court. He has 662 00:39:30,719 --> 00:39:33,000 Speaker 1: to do this, it's a constitutional duty. Some of the 663 00:39:33,040 --> 00:39:35,920 Speaker 1: same people who are saying he shouldn't do it. Are 664 00:39:35,920 --> 00:39:38,920 Speaker 1: the same people that saying this guy doesn't follow the constitution. 665 00:39:39,000 --> 00:39:41,479 Speaker 1: I think he has a constitutional duty. Now, the Senate 666 00:39:41,560 --> 00:39:45,239 Speaker 1: doesn't have a constitutional duty to approve, but I think 667 00:39:45,239 --> 00:39:47,520 Speaker 1: it does have a constitutional duty to at least go 668 00:39:47,560 --> 00:39:50,439 Speaker 1: through the process hole of hearing me the nominee, look 669 00:39:50,480 --> 00:39:52,960 Speaker 1: at their views and take a vote to to just 670 00:39:53,040 --> 00:39:57,000 Speaker 1: stone wall. The whole process. I I just find uh, 671 00:39:57,040 --> 00:39:59,840 Speaker 1: it was, uh, you know, just doesn't make any sense. 672 00:40:01,200 --> 00:40:05,319 Speaker 1: Well from the cynical Americans point of view, would Democrats 673 00:40:05,360 --> 00:40:07,640 Speaker 1: be doing the same thing if there were a Republican 674 00:40:07,680 --> 00:40:10,640 Speaker 1: in the White House? Well there, you know, they're everybody's 675 00:40:10,680 --> 00:40:13,040 Speaker 1: got quotes. You can find quotes on both sides, Joe 676 00:40:13,080 --> 00:40:16,399 Speaker 1: Biden and Chuck Schumer in two thousand and seven. They're 677 00:40:16,400 --> 00:40:18,840 Speaker 1: all kinds of quotes from Chuck Grassley and Mitch McConnell 678 00:40:18,880 --> 00:40:21,520 Speaker 1: on the other side saying we've got to do this. Yeah. Sure, 679 00:40:21,520 --> 00:40:24,680 Speaker 1: there's some of that, but I don't think I don't 680 00:40:24,680 --> 00:40:29,200 Speaker 1: think there's historical precedent for not even taking up a nomination, 681 00:40:29,920 --> 00:40:33,520 Speaker 1: which would essentially leave the Court without a ninth judge 682 00:40:33,560 --> 00:40:36,839 Speaker 1: for two terms with the remainder of this term and 683 00:40:37,080 --> 00:40:40,960 Speaker 1: realistically into the late spring of next year, so I 684 00:40:40,960 --> 00:40:44,000 Speaker 1: don't think there's much precedent for that. And like I say, 685 00:40:45,000 --> 00:40:47,920 Speaker 1: I'm not arguing that anybody should vote for against. We 686 00:40:47,960 --> 00:40:50,680 Speaker 1: don't even know who the nominee is, which layers another 687 00:40:50,800 --> 00:40:54,319 Speaker 1: level of ridiculousness to this to say I'm opposed to 688 00:40:54,360 --> 00:40:56,319 Speaker 1: the nominee when we don't know who it is. It 689 00:40:56,400 --> 00:40:59,279 Speaker 1: might be a combination of Aristotle, Thomas Jefferson, and St. 690 00:40:59,280 --> 00:41:03,799 Speaker 1: Thomas Aquain US Senator King. And your family survived as 691 00:41:03,840 --> 00:41:06,560 Speaker 1: we know it. You took a road trip across America 692 00:41:07,560 --> 00:41:12,840 Speaker 1: fifteen thousand miles thirty three states. Is Secretary Clinton or 693 00:41:12,960 --> 00:41:16,120 Speaker 1: Mr Trump were to leave scenic Brunswick Main or wherever 694 00:41:16,560 --> 00:41:19,919 Speaker 1: and start driving across this country? What would be your 695 00:41:20,000 --> 00:41:23,040 Speaker 1: counsel for them to look for? What would they need 696 00:41:23,080 --> 00:41:26,520 Speaker 1: to observe on a thirty three state road trip like 697 00:41:26,600 --> 00:41:30,279 Speaker 1: you took. Well, I think the council the first piece 698 00:41:30,280 --> 00:41:32,960 Speaker 1: of advice would be don't have an itinerary and keep 699 00:41:33,000 --> 00:41:36,040 Speaker 1: your eyes and ears open. In other words, uh, you 700 00:41:36,080 --> 00:41:39,040 Speaker 1: can miss You can miss a trip by focusing too 701 00:41:39,160 --> 00:41:42,880 Speaker 1: much on the trip. Uh. We went. We had no plan, 702 00:41:43,000 --> 00:41:45,319 Speaker 1: no itinerary except a vague one that we were going 703 00:41:45,360 --> 00:41:50,080 Speaker 1: to circumnavigate the country, but we went according to what 704 00:41:50,280 --> 00:41:52,759 Speaker 1: the weather was, and what we found was a couple 705 00:41:52,800 --> 00:41:55,960 Speaker 1: of things. There's interesting and important things going on everywhere. 706 00:41:56,320 --> 00:41:58,240 Speaker 1: You could throw a dart at the map and find 707 00:41:58,280 --> 00:42:02,760 Speaker 1: cool stuff and say currently. The problems that I thought 708 00:42:02,800 --> 00:42:05,600 Speaker 1: as this trip that you allude to, was the day 709 00:42:05,640 --> 00:42:08,640 Speaker 1: after I left offices eight years of governor Maine. I 710 00:42:08,680 --> 00:42:11,080 Speaker 1: thought that our problems were unique in Maine, and you know, 711 00:42:11,440 --> 00:42:14,120 Speaker 1: nobody else was really healing. And I found out that 712 00:42:14,400 --> 00:42:18,319 Speaker 1: they're virtually the same everywhere. Their variations, of course, but 713 00:42:19,040 --> 00:42:21,640 Speaker 1: the same kinds of issues are going around around the country. 714 00:42:21,680 --> 00:42:24,160 Speaker 1: So if if one of those folks decided to take 715 00:42:24,160 --> 00:42:27,279 Speaker 1: a road trip, I would say, uh uh, don't have 716 00:42:27,320 --> 00:42:29,839 Speaker 1: too much of a plan, don't overschedule, and keep your 717 00:42:29,840 --> 00:42:33,239 Speaker 1: eyes and ears open. Senator, Well, thank you so much 718 00:42:33,239 --> 00:42:35,279 Speaker 1: generous of you to be with us today. Angus King 719 00:42:35,360 --> 00:42:40,520 Speaker 1: is the independent soonator from the state of main Futures 720 00:42:40,560 --> 00:42:43,200 Speaker 1: Up sixteen down, Futures Up, A dred and twenty two. 721 00:42:43,440 --> 00:42:47,840 Speaker 1: Michael McKee and Tom keenan support of FM Washington. Stay 722 00:42:47,880 --> 00:42:48,239 Speaker 1: with us