1 00:00:02,520 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,119 --> 00:00:12,600 Speaker 2: You're listening to the Bloomberg Balance of Power podcast. Catch 3 00:00:12,680 --> 00:00:15,680 Speaker 2: us live weekdays at noon and five pm Eastern on 4 00:00:15,840 --> 00:00:19,120 Speaker 2: Apple Coarclay and Android Auto with the Bloomberg Business App. 5 00:00:19,239 --> 00:00:22,520 Speaker 2: Listen on demand wherever you get your podcasts, or watch 6 00:00:22,560 --> 00:00:24,840 Speaker 2: us live on YouTube. 7 00:00:25,239 --> 00:00:28,960 Speaker 3: I'm Tyler Kendall here in Washington alongside of Joe Matthew, 8 00:00:29,000 --> 00:00:34,080 Speaker 3: and we are tracking closely after this Consumer Price Index report. 9 00:00:34,159 --> 00:00:38,479 Speaker 3: Highly anticipated because Joe, we weren't expecting to get it because, 10 00:00:38,520 --> 00:00:41,559 Speaker 3: as we've been reminding you on this program, the government 11 00:00:41,760 --> 00:00:43,600 Speaker 3: is shut down and it has been for the last 12 00:00:43,600 --> 00:00:46,360 Speaker 3: twenty four days, and some of the data releases are 13 00:00:46,360 --> 00:00:49,320 Speaker 3: not deemed essential. It takes time to collect the data, 14 00:00:49,400 --> 00:00:51,920 Speaker 3: put together the reports, and ultimately release it. 15 00:00:52,040 --> 00:00:53,960 Speaker 4: Yeah, how'd you like to be called into work as 16 00:00:54,000 --> 00:00:55,840 Speaker 4: an essential employee and not paid for that? 17 00:00:56,120 --> 00:00:57,200 Speaker 5: The question is why. 18 00:00:57,000 --> 00:00:59,280 Speaker 4: We didn't get the last jobs report, because that actually 19 00:00:59,320 --> 00:01:01,920 Speaker 4: had been come and we still haven't seen that. Noting 20 00:01:02,280 --> 00:01:03,959 Speaker 4: that it's of course a dual mandate at the Fed 21 00:01:04,000 --> 00:01:06,679 Speaker 4: and they need to see both the inflation numbers and 22 00:01:06,760 --> 00:01:07,559 Speaker 4: the jobs data. 23 00:01:07,560 --> 00:01:08,840 Speaker 5: But you already mentioned it. 24 00:01:08,560 --> 00:01:12,160 Speaker 4: It's a cost of living adjustment that forced this CPI 25 00:01:12,280 --> 00:01:14,520 Speaker 4: to be released. That's why we're talking about inflation data 26 00:01:14,560 --> 00:01:14,800 Speaker 4: on a. 27 00:01:14,720 --> 00:01:17,760 Speaker 3: Friday, right, And even more interesting hearing the White House 28 00:01:17,800 --> 00:01:20,440 Speaker 3: way and earlier when it comes to this inflation data, 29 00:01:20,480 --> 00:01:22,880 Speaker 3: but also when we could get the next inflation data 30 00:01:22,920 --> 00:01:26,319 Speaker 3: saying that they are not expecting the October CPI report 31 00:01:26,360 --> 00:01:27,120 Speaker 3: it's really released. 32 00:01:27,160 --> 00:01:29,400 Speaker 4: So if you're Michael McKey, must feel like a Wednesday 33 00:01:29,480 --> 00:01:33,360 Speaker 4: or something. Bloomberg International Economics and Policy correspondent joins us 34 00:01:33,360 --> 00:01:35,479 Speaker 4: now from World Headquarters in New York. 35 00:01:36,080 --> 00:01:39,399 Speaker 5: Mike, this softer than expected reading says, what to you? 36 00:01:39,520 --> 00:01:42,399 Speaker 4: Is this vindication for the White House that tells us 37 00:01:42,440 --> 00:01:44,240 Speaker 4: tariff simply are not inflationary? 38 00:01:45,319 --> 00:01:46,120 Speaker 5: No, it is not. 39 00:01:46,600 --> 00:01:49,440 Speaker 6: And I would say that the White House has a 40 00:01:49,440 --> 00:01:53,000 Speaker 6: good political case to make for people who don't follow 41 00:01:53,040 --> 00:01:56,320 Speaker 6: the data, and it will look good for the President, 42 00:01:56,360 --> 00:01:58,720 Speaker 6: and I'm sure we will hear many times about it, 43 00:01:59,160 --> 00:02:01,920 Speaker 6: how he's brought down on inflation, YadA, YadA, YadA. But 44 00:02:02,120 --> 00:02:07,200 Speaker 6: if you take out used cars, goods prices rose significantly 45 00:02:07,320 --> 00:02:11,280 Speaker 6: again because we're starting to see tariffs leak into goods prices, 46 00:02:11,480 --> 00:02:15,880 Speaker 6: and we saw some increases that were out of line 47 00:02:16,040 --> 00:02:18,360 Speaker 6: with what would be normal, like apparel prices up seven 48 00:02:18,400 --> 00:02:23,240 Speaker 6: tenths and furniture prices up nine tenths. Services prices still 49 00:02:23,440 --> 00:02:26,480 Speaker 6: rising at about the same rate. They were held down 50 00:02:26,560 --> 00:02:29,240 Speaker 6: by a significant drop in home prices the way the 51 00:02:29,240 --> 00:02:34,880 Speaker 6: government calculated with the owner's equivalent rent. And there's a 52 00:02:34,960 --> 00:02:37,800 Speaker 6: general feeling among the economists. I've seen the reactions. I've 53 00:02:37,840 --> 00:02:41,920 Speaker 6: seen that debt was probably a statistical noise and would 54 00:02:41,960 --> 00:02:45,320 Speaker 6: not be repeated next month. But as Tyler adroitly points out, 55 00:02:45,600 --> 00:02:46,840 Speaker 6: there may not be a next. 56 00:02:46,639 --> 00:02:50,359 Speaker 3: Month well to build off of that, while we likely 57 00:02:50,400 --> 00:02:53,760 Speaker 3: know what today's report needs for next week's FED meeting, Mike, 58 00:02:53,800 --> 00:02:56,560 Speaker 3: how are you watching this? How are policy makers watching this? 59 00:02:57,040 --> 00:02:58,880 Speaker 3: As we close out the year? And of course we 60 00:02:58,919 --> 00:03:00,920 Speaker 3: have another FMC down the line. 61 00:03:01,200 --> 00:03:03,160 Speaker 6: Yeah, we have a meeting on December tenth, and I 62 00:03:03,160 --> 00:03:06,400 Speaker 6: don't think they're going to do anything this week that 63 00:03:06,480 --> 00:03:10,040 Speaker 6: would give a hint as to what the December plan 64 00:03:10,080 --> 00:03:13,920 Speaker 6: would be because we don't have data. It looks like 65 00:03:13,960 --> 00:03:15,800 Speaker 6: we're going to have a hole in the data, But 66 00:03:15,840 --> 00:03:18,600 Speaker 6: then we might get some data before that December meeting, 67 00:03:19,000 --> 00:03:22,800 Speaker 6: and anything you say now could be As Larry speaks 68 00:03:22,800 --> 00:03:27,880 Speaker 6: and Joe will remember this as Larry speaks once said, no, 69 00:03:28,040 --> 00:03:31,960 Speaker 6: it's a Ronnesson. I'm sorry. Ronnesson said that that's inoperative. 70 00:03:33,600 --> 00:03:35,680 Speaker 6: And I knew you'd remember. 71 00:03:35,360 --> 00:03:35,800 Speaker 7: That, Joe. 72 00:03:35,840 --> 00:03:41,400 Speaker 5: But we're dating ourselves now. I'll tell you what I 73 00:03:41,400 --> 00:03:41,720 Speaker 5: don't know. 74 00:03:41,880 --> 00:03:46,000 Speaker 4: Services prices excluding energy up to tens or in part 75 00:03:46,040 --> 00:03:50,440 Speaker 4: reflecting a slower advance in airfares. Shelter price is making 76 00:03:50,520 --> 00:03:52,880 Speaker 4: the difference here, Mike. If there was another CPI a 77 00:03:52,880 --> 00:03:54,280 Speaker 4: month from now, what would it tell us. 78 00:03:54,800 --> 00:03:57,920 Speaker 6: Well, the question would be in terms of services, especially 79 00:03:58,320 --> 00:04:01,480 Speaker 6: whether house prices continue to rise at that very very 80 00:04:01,520 --> 00:04:06,200 Speaker 6: subdued pace, because up until this month they were rising 81 00:04:06,200 --> 00:04:09,680 Speaker 6: at almost three tenths a month and sometimes more than that. 82 00:04:10,040 --> 00:04:12,240 Speaker 6: They'd been coming down gradually. But this is a very 83 00:04:12,280 --> 00:04:15,360 Speaker 6: quick fall. So was there a reason for that or 84 00:04:15,400 --> 00:04:18,000 Speaker 6: is this just kind of a random number. And that's 85 00:04:18,000 --> 00:04:20,120 Speaker 6: why you want a series of reports. And the Fed 86 00:04:20,200 --> 00:04:22,560 Speaker 6: is looking at a series of reports and always says, 87 00:04:22,600 --> 00:04:26,080 Speaker 6: you know, one number doesn't make a difference, but they 88 00:04:26,120 --> 00:04:29,200 Speaker 6: may not get it, so that could add some confusion 89 00:04:29,279 --> 00:04:31,880 Speaker 6: into what they are doing. 90 00:04:31,880 --> 00:04:32,080 Speaker 8: Now. 91 00:04:32,160 --> 00:04:35,320 Speaker 6: What they'll do is they will call all the realtors 92 00:04:35,360 --> 00:04:37,840 Speaker 6: in their districts and they will ask them how it's 93 00:04:37,880 --> 00:04:40,200 Speaker 6: going and what prices are. And there are a lot 94 00:04:40,240 --> 00:04:44,160 Speaker 6: of private price providers in real estate, so I think 95 00:04:44,160 --> 00:04:47,000 Speaker 6: they'll have a pretty good idea even if the number. 96 00:04:46,760 --> 00:04:47,360 Speaker 5: Is not there. 97 00:04:49,279 --> 00:04:53,000 Speaker 3: All right, Michael McKee, Bloomberg International Economics and Policy Correspondent, 98 00:04:53,080 --> 00:04:55,080 Speaker 3: Thank you so much, as always, and we want to 99 00:04:55,080 --> 00:04:59,120 Speaker 3: extend the conversation because we're joined now by Congressman Mike Alford, 100 00:04:59,120 --> 00:05:04,080 Speaker 3: Republican represent Missouri's fourth district. Congressman, thanks so much for 101 00:05:04,160 --> 00:05:05,960 Speaker 3: joining us here on Bloomberg. And I want to pick 102 00:05:06,040 --> 00:05:09,279 Speaker 3: up on where we were just talking about with Michael McKee, 103 00:05:09,320 --> 00:05:12,880 Speaker 3: because this government data was released today, but it was 104 00:05:12,880 --> 00:05:17,200 Speaker 3: delayed because of this shutdown. As policymakers, lawmakers try to 105 00:05:17,240 --> 00:05:19,760 Speaker 3: make the best decisions about the economy, do you think 106 00:05:19,839 --> 00:05:23,320 Speaker 3: economic data like this should be deemed essential so that 107 00:05:23,400 --> 00:05:24,760 Speaker 3: we get it in real time? 108 00:05:25,640 --> 00:05:26,520 Speaker 5: Well, I think it should be. 109 00:05:26,600 --> 00:05:29,960 Speaker 9: This is just another effect, a negative effect on our 110 00:05:29,960 --> 00:05:33,160 Speaker 9: great nation because of the Schumer shutdown, America held hostage. 111 00:05:33,160 --> 00:05:35,880 Speaker 9: We're now in the twenty fourth day of this and 112 00:05:35,920 --> 00:05:39,960 Speaker 9: we're held hostage on these numbers, which are so important. 113 00:05:39,920 --> 00:05:41,679 Speaker 5: To get a real good gauge. 114 00:05:41,720 --> 00:05:43,920 Speaker 9: I think of where our economy is and where we're 115 00:05:44,600 --> 00:05:47,880 Speaker 9: to go with our economy, and what decisions that Secretary 116 00:05:47,960 --> 00:05:50,919 Speaker 9: Bessant and President Trump need to make to write the 117 00:05:51,040 --> 00:05:54,520 Speaker 9: ship that President Biden in the past administration has really 118 00:05:54,600 --> 00:05:56,120 Speaker 9: run us into a reef of despair. 119 00:05:58,440 --> 00:06:03,000 Speaker 4: Well, that said, we've got a federal Reserve that set 120 00:06:03,040 --> 00:06:05,520 Speaker 4: to make a decision next week, Congressman, and it's. 121 00:06:05,360 --> 00:06:06,800 Speaker 5: Good to have you back, Congressman Alfred. 122 00:06:06,800 --> 00:06:09,000 Speaker 4: I just wonder what the FED is supposed to do 123 00:06:09,120 --> 00:06:12,839 Speaker 4: with this dearth of data. There's obviously enough to work 124 00:06:12,839 --> 00:06:14,960 Speaker 4: with for next week, but there are questions about what 125 00:06:15,000 --> 00:06:16,680 Speaker 4: happens after that if we're in for some kind of 126 00:06:16,760 --> 00:06:21,240 Speaker 4: record shutdown. Here, as somebody who serves on Financial Services Committee, 127 00:06:21,480 --> 00:06:22,360 Speaker 4: what's the FED to do? 128 00:06:23,720 --> 00:06:25,520 Speaker 9: Well, Look, I think the Fed's in a tough spot. 129 00:06:25,640 --> 00:06:30,000 Speaker 9: I think Powell needs this information to make a wise decision, 130 00:06:30,040 --> 00:06:32,159 Speaker 9: as do the board of governors, including one here in 131 00:06:32,240 --> 00:06:32,960 Speaker 9: Kansas City. 132 00:06:33,640 --> 00:06:34,720 Speaker 5: They need this information. 133 00:06:34,839 --> 00:06:37,359 Speaker 9: That's why President Trump has made changes in the past 134 00:06:37,360 --> 00:06:41,400 Speaker 9: to the person who actually puts this information together. But yeah, 135 00:06:41,440 --> 00:06:44,719 Speaker 9: you've got to have the right information. And Chuck Schumer 136 00:06:44,839 --> 00:06:49,160 Speaker 9: standing in the way by not voting with other Democrats 137 00:06:49,240 --> 00:06:52,359 Speaker 9: in the Senate to vote for this simple extension of 138 00:06:52,440 --> 00:06:55,279 Speaker 9: current government funding. This is just one of the repercussions. 139 00:06:55,279 --> 00:06:59,039 Speaker 9: We're seeing it all over our district. The other repercussions 140 00:06:59,040 --> 00:07:02,799 Speaker 9: people not going to have food stamps next month, money 141 00:07:02,839 --> 00:07:05,640 Speaker 9: running out for women, infants, and children, money running out 142 00:07:05,640 --> 00:07:08,040 Speaker 9: for our military. We found the money President Trump did 143 00:07:08,080 --> 00:07:11,760 Speaker 9: to pay our military become next pay period. The Democrats 144 00:07:11,800 --> 00:07:14,160 Speaker 9: and the Senate just voted yesterday not to pay them, 145 00:07:14,440 --> 00:07:18,480 Speaker 9: not to pay other essential employees in the US government. 146 00:07:18,520 --> 00:07:19,640 Speaker 9: I think that's despicable. 147 00:07:21,080 --> 00:07:25,360 Speaker 3: And Democrats, of course also floated their own bill when 148 00:07:25,360 --> 00:07:28,240 Speaker 3: it came to some other essential employee fundation. 149 00:07:28,280 --> 00:07:30,160 Speaker 5: They just wanted to a week they didn't want. 150 00:07:30,200 --> 00:07:33,120 Speaker 9: We wanted for the entirety of the shutdown, and they're 151 00:07:33,120 --> 00:07:35,800 Speaker 9: trying to use that as leverage. Katherine Clark was very 152 00:07:35,800 --> 00:07:39,680 Speaker 9: clear with her interview with Chad Pergrim on Fox that 153 00:07:39,720 --> 00:07:42,800 Speaker 9: they needed this leverage of pain in America so that 154 00:07:42,840 --> 00:07:44,160 Speaker 9: people would get on their side. 155 00:07:44,200 --> 00:07:46,760 Speaker 5: Were not negotiating, there's nothing to negotiate. 156 00:07:48,240 --> 00:07:49,960 Speaker 3: Well, Congressman, I do want to ask you about one 157 00:07:49,960 --> 00:07:52,600 Speaker 3: point that you just made about this idea of a 158 00:07:52,640 --> 00:07:56,280 Speaker 3: simple extension right now, the stopgap measure that lawmakers are 159 00:07:56,360 --> 00:07:59,400 Speaker 3: voting on would fund the government until November twenty first. 160 00:07:59,440 --> 00:08:02,000 Speaker 3: We did hear from the Senate Majority Leader John Thune 161 00:08:02,000 --> 00:08:05,000 Speaker 3: earlier this week actually saying maybe it is time for 162 00:08:05,040 --> 00:08:07,840 Speaker 3: the House to start thinking about coming back into session 163 00:08:08,000 --> 00:08:11,520 Speaker 3: because you're going to need a little bit more runway potentially. 164 00:08:11,720 --> 00:08:15,000 Speaker 3: Do you think that your chambers should come back into 165 00:08:15,080 --> 00:08:17,920 Speaker 3: session for this is a November twenty first stop gap? 166 00:08:18,000 --> 00:08:19,600 Speaker 3: Is that date really still viable? 167 00:08:20,400 --> 00:08:22,600 Speaker 9: I think it's very reasonable, and I think our chairman 168 00:08:22,640 --> 00:08:25,680 Speaker 9: Tom Cole came out with a statement earlier this week 169 00:08:25,760 --> 00:08:29,440 Speaker 9: saying that we can get this work done. Look against 170 00:08:30,160 --> 00:08:33,200 Speaker 9: a lot of odds, we got all twelve appropriation bills 171 00:08:33,240 --> 00:08:36,120 Speaker 9: out of committee this year. Some of the Democrats were 172 00:08:36,160 --> 00:08:40,600 Speaker 9: offering forty and some odd amendments to these individual bills. 173 00:08:40,920 --> 00:08:44,880 Speaker 9: We had twelve fourteen hour days of hearings and debate. 174 00:08:45,080 --> 00:08:47,240 Speaker 5: We debated all these spending bills. 175 00:08:47,440 --> 00:08:49,680 Speaker 9: We came up with about seven point three percent and 176 00:08:49,720 --> 00:08:54,280 Speaker 9: cuts overall. We cut nine of the twelve subcommittees. We 177 00:08:54,360 --> 00:08:59,080 Speaker 9: gave plus ups to Homeland Security, our Defense, as well 178 00:08:59,120 --> 00:09:00,640 Speaker 9: as Military concer Production VA. 179 00:09:00,679 --> 00:09:01,520 Speaker 5: We got three. 180 00:09:01,440 --> 00:09:04,760 Speaker 9: Off the House floor, and all we were asking is 181 00:09:04,840 --> 00:09:07,720 Speaker 9: three or is seven more? Weeks to get our job done. 182 00:09:07,840 --> 00:09:10,920 Speaker 9: The Democrats don't want us to return to regular order. 183 00:09:11,000 --> 00:09:13,040 Speaker 9: They want a big omnibus bill at the end of 184 00:09:13,040 --> 00:09:14,640 Speaker 9: the year, and we're not doing that. 185 00:09:16,520 --> 00:09:20,160 Speaker 4: Congressman, your colleague from Missouri, chairs the Ways and Means Committee, 186 00:09:20,200 --> 00:09:22,880 Speaker 4: was with us yesterday. Jason Smith made some news suggesting 187 00:09:22,920 --> 00:09:26,320 Speaker 4: that he was behind the idea of a full year 188 00:09:26,559 --> 00:09:29,120 Speaker 4: CR that had been floated by John Thune and even 189 00:09:29,120 --> 00:09:30,680 Speaker 4: the White House a couple of months ago. I just 190 00:09:30,720 --> 00:09:32,240 Speaker 4: wanted you to listen to what he told us, and 191 00:09:32,240 --> 00:09:33,000 Speaker 4: we'll have you respond. 192 00:09:33,040 --> 00:09:36,840 Speaker 10: Here's the Chairman, December twenty first, twenty twenty six is 193 00:09:36,840 --> 00:09:40,560 Speaker 10: what I've been hearing up here as a suggestion, as 194 00:09:40,600 --> 00:09:44,680 Speaker 10: an opportunity of a continuing resolution. As as we know, 195 00:09:45,080 --> 00:09:48,440 Speaker 10: we're operating under a year long resolution from last year. 196 00:09:48,640 --> 00:09:52,679 Speaker 10: We're looking at what was appropriated when Biden was president. 197 00:09:54,440 --> 00:09:57,160 Speaker 4: I know we're basically living under perpetual CRS. I know 198 00:09:57,200 --> 00:10:00,240 Speaker 4: it sounds like it, Congressman, only twenty four numbers. You're 199 00:10:00,280 --> 00:10:03,120 Speaker 4: talking about regular order, which would be a pretty amazing 200 00:10:03,160 --> 00:10:06,040 Speaker 4: thing to see take place. But if that is the solution, 201 00:10:06,160 --> 00:10:09,000 Speaker 4: would you back it a full year CR? 202 00:10:09,480 --> 00:10:11,920 Speaker 9: Well, look, if leadership was behind this. I don't think 203 00:10:12,000 --> 00:10:14,840 Speaker 9: they will. But I have the utmost respect for Jason. 204 00:10:14,880 --> 00:10:19,000 Speaker 9: He is one of my dearest friends and mentors, and 205 00:10:19,440 --> 00:10:21,760 Speaker 9: he loves Missouri and loves the United States America. Done 206 00:10:21,760 --> 00:10:24,360 Speaker 9: a great job as ways and means. He was really 207 00:10:24,360 --> 00:10:27,880 Speaker 9: instrumental in getting the one big Beautiful Bill Reconciliation through 208 00:10:27,880 --> 00:10:30,679 Speaker 9: the House, and also helped in the Senate with his 209 00:10:30,760 --> 00:10:35,280 Speaker 9: influence there. But I also trust in Chairman Tom Cole. 210 00:10:35,520 --> 00:10:37,679 Speaker 9: If he says that we can get this done, I 211 00:10:37,720 --> 00:10:39,560 Speaker 9: have complete confidence. 212 00:10:39,480 --> 00:10:40,880 Speaker 5: That we can get this done. 213 00:10:41,080 --> 00:10:43,920 Speaker 9: We just need a little time to get these nine bills. 214 00:10:43,960 --> 00:10:46,160 Speaker 9: They may not all be separate bills. We may have 215 00:10:46,240 --> 00:10:49,240 Speaker 9: to do many buses where we group two or three together. 216 00:10:49,559 --> 00:10:52,760 Speaker 9: But we can get this done. The time has come 217 00:10:52,840 --> 00:10:57,160 Speaker 9: for us not to operate Congress on continuing resolutions. We 218 00:10:57,520 --> 00:11:01,240 Speaker 9: are still on twenty twenty four budget numbers that Biden 219 00:11:01,320 --> 00:11:05,200 Speaker 9: came up with, and our military can't move forward with 220 00:11:05,280 --> 00:11:09,560 Speaker 9: new programs that they need to deter thugs around the 221 00:11:09,600 --> 00:11:13,240 Speaker 9: world like Jijing Ping and Vladimir Putin these programs that 222 00:11:13,280 --> 00:11:17,160 Speaker 9: are vital to our national defense. We cannot continue to 223 00:11:17,280 --> 00:11:21,360 Speaker 9: operate America under continuing resolutions. And so while I understand 224 00:11:21,360 --> 00:11:27,000 Speaker 9: where Chairman Smith is coming from. That's got to be 225 00:11:27,040 --> 00:11:30,680 Speaker 9: a last ditch effort. In my opinion, We've got we 226 00:11:30,800 --> 00:11:34,240 Speaker 9: have made tremendous strides in getting these appropriation bills done, 227 00:11:34,520 --> 00:11:37,400 Speaker 9: getting three off the House floor. Let's move forward. We 228 00:11:37,480 --> 00:11:41,000 Speaker 9: had momentum until the Democrats stuck a stick in our 229 00:11:41,040 --> 00:11:44,280 Speaker 9: spokes and are trying to direct the American people. 230 00:11:45,360 --> 00:11:47,160 Speaker 5: They've got to get out of the way. They've got 231 00:11:47,200 --> 00:11:48,000 Speaker 5: to quit. 232 00:11:47,840 --> 00:11:50,120 Speaker 9: Digging the hole that they have dug, and let us 233 00:11:50,160 --> 00:11:52,360 Speaker 9: move forward and fund the government. 234 00:11:54,360 --> 00:11:56,800 Speaker 3: Congressman, you did bring up Jijingping there, and I want 235 00:11:56,840 --> 00:11:59,160 Speaker 3: to quickly ask you about China because that's another story 236 00:11:59,160 --> 00:12:01,920 Speaker 3: that we're following very closely here at Bloomberg. As President 237 00:12:01,920 --> 00:12:05,520 Speaker 3: Trump heads overseas for this highly anticipated meeting with Chinese 238 00:12:05,559 --> 00:12:06,800 Speaker 3: President Jijiping. 239 00:12:06,960 --> 00:12:07,559 Speaker 1: I've learned that. 240 00:12:07,600 --> 00:12:10,640 Speaker 3: Missouri is one of the top three soybean producing states 241 00:12:11,120 --> 00:12:14,000 Speaker 3: in this country. What is going to happen if China 242 00:12:14,120 --> 00:12:18,240 Speaker 3: doesn't agree to these agricultural commitments purchases, since we know 243 00:12:18,320 --> 00:12:21,480 Speaker 3: that they have not imported any US supplies so far 244 00:12:21,559 --> 00:12:22,320 Speaker 3: this harvest season. 245 00:12:23,120 --> 00:12:25,920 Speaker 9: Yeah, I'm in a very ag rich district just south 246 00:12:25,920 --> 00:12:27,839 Speaker 9: of Kansas City. Over the Lake of the Ozarks and 247 00:12:27,840 --> 00:12:31,320 Speaker 9: almost down to the Arkansas border. Our district borders Jason 248 00:12:31,360 --> 00:12:34,080 Speaker 9: Smith's district and he has a lot of ag there 249 00:12:34,120 --> 00:12:37,679 Speaker 9: as well. We have eighty seven thousand farms in the 250 00:12:37,720 --> 00:12:40,320 Speaker 9: Great State of Missouri. We are down from ninety five 251 00:12:40,360 --> 00:12:43,400 Speaker 9: thousand farms just two and a half years ago. 252 00:12:43,800 --> 00:12:44,520 Speaker 5: Many of those. 253 00:12:44,360 --> 00:12:48,000 Speaker 9: Farmers are soybean farmers and they are about halfway through 254 00:12:48,040 --> 00:12:50,360 Speaker 9: their harvest right now. We're getting a little rain right 255 00:12:50,360 --> 00:12:53,719 Speaker 9: now and that's delayed that, but they're having to put 256 00:12:53,800 --> 00:12:57,960 Speaker 9: these beans in storage right now until the prices come 257 00:12:58,040 --> 00:13:02,760 Speaker 9: back up. It is not helping not having a deal 258 00:13:02,880 --> 00:13:06,200 Speaker 9: with Jijingping. I know that they love buying our protein. 259 00:13:06,280 --> 00:13:08,840 Speaker 9: They love buying our pork, which we also have a 260 00:13:08,840 --> 00:13:11,160 Speaker 9: lot of that here in Missouri. But they also love 261 00:13:11,160 --> 00:13:13,440 Speaker 9: our soybeans, and so I think it's incumbent on the 262 00:13:13,440 --> 00:13:16,320 Speaker 9: President to reach a deal with Jijingping to get this 263 00:13:16,440 --> 00:13:22,439 Speaker 9: trade back going with our soybeans going over to China. 264 00:13:22,480 --> 00:13:22,920 Speaker 5: I know the. 265 00:13:22,880 --> 00:13:26,560 Speaker 9: President has made some inroads in helping offset mitigate some 266 00:13:26,600 --> 00:13:29,319 Speaker 9: of the losses that our farmers and ranchers are seeing 267 00:13:29,320 --> 00:13:31,600 Speaker 9: here in Missouri and across the United States of America. 268 00:13:32,360 --> 00:13:35,120 Speaker 9: Thank God that we have this tariff money that's coming 269 00:13:35,160 --> 00:13:38,640 Speaker 9: in almost four hundred billion dollars right now. He is 270 00:13:38,679 --> 00:13:41,040 Speaker 9: going to use thirty to fifty billion of that to 271 00:13:41,480 --> 00:13:45,880 Speaker 9: replenish the Commodity Credit Corporation, which is overseen by Secretary 272 00:13:45,880 --> 00:13:48,720 Speaker 9: of Rawlins in the US Department of Agriculture, and that 273 00:13:48,920 --> 00:13:51,600 Speaker 9: is going to help offset some of the losses in 274 00:13:51,640 --> 00:13:56,040 Speaker 9: the short term. I think downturn for our farmers. This 275 00:13:56,160 --> 00:13:59,240 Speaker 9: is short term. I think of the long term, our 276 00:13:59,280 --> 00:14:01,680 Speaker 9: farmers and ranchers are going to be much better off 277 00:14:01,720 --> 00:14:04,520 Speaker 9: with the trade deals that President Trump is making. I 278 00:14:04,520 --> 00:14:08,360 Speaker 9: would much rather have him as our negotiator than Joe Biden. 279 00:14:09,559 --> 00:14:11,760 Speaker 4: Well, with that said, in our remaining moment, Congressman, there's 280 00:14:11,800 --> 00:14:14,360 Speaker 4: been a lot of talk about Argentine beef around here lately, 281 00:14:14,400 --> 00:14:16,480 Speaker 4: and you've probably heard this. The President looking to do 282 00:14:16,559 --> 00:14:19,120 Speaker 4: some more extra importing to try to lower prices, and 283 00:14:19,160 --> 00:14:22,120 Speaker 4: that's got a lot of cattleman and ranchers upset. 284 00:14:22,200 --> 00:14:24,120 Speaker 5: Did you just give us the answer? Is the answer 285 00:14:24,160 --> 00:14:28,360 Speaker 5: to eat more pork from Missouri? Hey, it's the other 286 00:14:28,400 --> 00:14:30,560 Speaker 5: white meat, you know, pork. I love pork, I heard it. 287 00:14:30,600 --> 00:14:31,080 Speaker 5: I love all. 288 00:14:31,480 --> 00:14:35,920 Speaker 9: I'm a Carntarian. I love chicken, beef and pork. But look, 289 00:14:36,640 --> 00:14:39,040 Speaker 9: I was just at a cattle auction barn in our 290 00:14:39,120 --> 00:14:43,840 Speaker 9: district yesterday. Prices are extremely high. The ranchers are enjoying 291 00:14:43,920 --> 00:14:47,560 Speaker 9: the higher prices because they have had such losses over 292 00:14:47,600 --> 00:14:49,600 Speaker 9: the last couple of years. We have been under a 293 00:14:49,720 --> 00:14:53,240 Speaker 9: level four drought in parts of my district for the 294 00:14:53,320 --> 00:14:57,120 Speaker 9: last two or three years, and that has caused the 295 00:14:57,120 --> 00:14:59,680 Speaker 9: price of beef to go up. A lot of ranchers 296 00:14:59,720 --> 00:15:01,880 Speaker 9: have had to sell off their herd because they didn't 297 00:15:01,960 --> 00:15:05,040 Speaker 9: have the grazing grounds, they didn't have the hay, and 298 00:15:05,120 --> 00:15:07,920 Speaker 9: so a lot of the beef was sold off. We've 299 00:15:07,960 --> 00:15:13,760 Speaker 9: got to get the five packing house companies under control. 300 00:15:14,160 --> 00:15:18,000 Speaker 9: We've got to get back to local control, local ranchers 301 00:15:18,040 --> 00:15:19,720 Speaker 9: and local processors. 302 00:15:19,960 --> 00:15:21,360 Speaker 5: That's going to bring the price down. 303 00:15:21,800 --> 00:15:25,280 Speaker 4: Mark Alford of Missouri with Us and Republican on Bloomberg. 304 00:15:26,920 --> 00:15:29,080 Speaker 5: Stay with us on Balance of Power. We'll have much 305 00:15:29,120 --> 00:15:30,320 Speaker 5: more coming up after this. 306 00:15:34,600 --> 00:15:38,080 Speaker 2: You're listening to the Bloomberg Balance of Power podcast. Catch 307 00:15:38,160 --> 00:15:41,240 Speaker 2: us live weekdays at noon and five pm Eastern on 308 00:15:41,320 --> 00:15:44,560 Speaker 2: Apple Corplay and Android Auto with the Bloomberg Business app. 309 00:15:44,600 --> 00:15:47,640 Speaker 2: You can also listen live on Amazon, Alexa, from our 310 00:15:47,680 --> 00:15:48,960 Speaker 2: flagship New York station. 311 00:15:49,520 --> 00:15:52,160 Speaker 1: Just say Alexa played Bloomberg eleven thirty. 312 00:15:53,320 --> 00:15:55,160 Speaker 4: I've got a breaking news story that I'd like to 313 00:15:55,160 --> 00:15:57,080 Speaker 4: share with you, and it will not be as surprised 314 00:15:57,120 --> 00:16:01,040 Speaker 4: as political reports that Hakeem Jeffries is at last on board. 315 00:16:01,440 --> 00:16:03,760 Speaker 4: We talked about this up and down yesterday, following David 316 00:16:03,760 --> 00:16:06,240 Speaker 4: Geura's conversation with a Democratic leader in the House, he 317 00:16:06,280 --> 00:16:10,080 Speaker 4: will endorse Zorn Mamdani for mayor of New York. According 318 00:16:10,120 --> 00:16:12,600 Speaker 4: to two people with knowledge of the situation talking to Politico. 319 00:16:12,720 --> 00:16:15,920 Speaker 4: The not coming after months of pressure and just before 320 00:16:15,960 --> 00:16:17,720 Speaker 4: early voting begins Saturday. 321 00:16:18,280 --> 00:16:20,120 Speaker 5: Did you hear that? That's what he told David. 322 00:16:20,120 --> 00:16:22,520 Speaker 4: He couldn't answer it yesterday because he was waiting until 323 00:16:22,520 --> 00:16:25,800 Speaker 4: early voting started in two days. But now we know 324 00:16:26,000 --> 00:16:30,040 Speaker 4: that the Democratic leader is going to support the Democratic 325 00:16:30,080 --> 00:16:35,200 Speaker 4: nominee in his own town. Also breaking overnight, unless you 326 00:16:35,240 --> 00:16:38,880 Speaker 4: were up late, we blew up another boat that the 327 00:16:38,920 --> 00:16:42,360 Speaker 4: direction to President Trump. The Defense Secretary Pete Hegsas says 328 00:16:42,400 --> 00:16:44,640 Speaker 4: Department of War carried out a lethal kinetic strike on 329 00:16:44,680 --> 00:16:48,400 Speaker 4: a vessel operated by Trend de Aragua, a designated terrorist 330 00:16:48,560 --> 00:16:52,760 Speaker 4: organization trafficking narcotics in the Caribbean Sea. 331 00:16:54,440 --> 00:16:55,560 Speaker 5: This is you know how we do this. 332 00:16:55,600 --> 00:16:58,040 Speaker 4: Now you've got the video of the boat bouncing around 333 00:16:58,120 --> 00:17:00,320 Speaker 4: until the thing blows up. This one looks a little 334 00:17:00,360 --> 00:17:04,160 Speaker 4: grainier than usual, presumably a satellite photograph or maybe it's 335 00:17:04,240 --> 00:17:06,000 Speaker 4: drone video on. And I've got a lot of questions 336 00:17:06,000 --> 00:17:07,960 Speaker 4: for doctor Rebecca Grant about the way all of these 337 00:17:07,960 --> 00:17:13,440 Speaker 4: things are working out. The B one bomber is nicknamed 338 00:17:13,800 --> 00:17:17,479 Speaker 4: the bone. That's what it looks like, kind of this 339 00:17:17,640 --> 00:17:20,520 Speaker 4: long flying bone that when you look up and see 340 00:17:20,560 --> 00:17:23,800 Speaker 4: this thing, it's menacing, knowing as well that it can 341 00:17:23,840 --> 00:17:27,760 Speaker 4: carry some of the heaviest firepower of any aircraft of 342 00:17:27,800 --> 00:17:32,480 Speaker 4: its kind sweep wings. The B one that we reportedly 343 00:17:32,520 --> 00:17:37,600 Speaker 4: flew over Venezuela or near Venezuela in international waters, that 344 00:17:37,680 --> 00:17:40,160 Speaker 4: was the Wall Street Journal story we told you about yesterday. 345 00:17:40,520 --> 00:17:42,800 Speaker 4: As the United States continues to bear down on this 346 00:17:42,840 --> 00:17:45,920 Speaker 4: country with a flotilla off the coast, President Trump was 347 00:17:45,920 --> 00:17:47,480 Speaker 4: asked about that report yesterday. 348 00:17:47,520 --> 00:17:51,000 Speaker 5: He said, no bone. Listen, there's reporting. 349 00:17:50,680 --> 00:17:54,159 Speaker 11: The US just sent B one bombers near Venezuela to 350 00:17:54,240 --> 00:17:55,720 Speaker 11: ramp up some military pressure. 351 00:17:55,720 --> 00:17:58,360 Speaker 1: There is that accurate? And can you tell us more about. 352 00:17:58,119 --> 00:17:59,320 Speaker 5: That mission not accurate. 353 00:17:59,440 --> 00:18:04,800 Speaker 8: No, but we're not happy with Venezuela for a lot 354 00:18:04,800 --> 00:18:07,680 Speaker 8: of reasons, drugs being one of them, but also they've 355 00:18:07,720 --> 00:18:13,000 Speaker 8: been sending their prisoners into our country for years under 356 00:18:13,000 --> 00:18:16,000 Speaker 8: the Biden administration, not anymore. We have a closed border. 357 00:18:16,560 --> 00:18:21,120 Speaker 8: We had actually nobody for the last four months, so. 358 00:18:21,040 --> 00:18:22,800 Speaker 4: We have a lot of questions, as I mentioned, about 359 00:18:22,800 --> 00:18:24,560 Speaker 4: what's going on down there, as well as what's going 360 00:18:24,600 --> 00:18:26,200 Speaker 4: on in Russia where they're just now calling up the 361 00:18:26,240 --> 00:18:30,359 Speaker 4: reserves to help protect the motherland from Ukrainian drones. We 362 00:18:30,400 --> 00:18:33,679 Speaker 4: look no further than doctor Rebecca Grant, vice president at 363 00:18:33,680 --> 00:18:36,440 Speaker 4: the Lexington Institute, joins us once again here on Bloomberg 364 00:18:36,440 --> 00:18:39,080 Speaker 4: and doctor it's really great to have you. Welcome back 365 00:18:39,080 --> 00:18:41,439 Speaker 4: and happy Friday. Can I just start by asking what 366 00:18:41,480 --> 00:18:44,720 Speaker 4: are we shooting these boats with, or these drones or 367 00:18:44,760 --> 00:18:46,880 Speaker 4: some other kind of military hardware. 368 00:18:47,920 --> 00:18:51,399 Speaker 12: They're not going to tell us because it's still one 369 00:18:51,520 --> 00:18:55,680 Speaker 12: active operation, and that's why you don't hear any real details. 370 00:18:55,800 --> 00:18:59,600 Speaker 12: The intel sources are still active. It looks to me 371 00:19:00,280 --> 00:19:03,160 Speaker 12: a lot like you know, what you're seeing is kind 372 00:19:03,160 --> 00:19:08,520 Speaker 12: of an infrared white hot designation, so there's obviously a missile. 373 00:19:08,560 --> 00:19:11,840 Speaker 12: It could be, for example, a hell fire, but it 374 00:19:11,840 --> 00:19:13,800 Speaker 12: could be any one of a number of other types 375 00:19:13,840 --> 00:19:16,200 Speaker 12: of missiles as well. What we do know is they're 376 00:19:16,280 --> 00:19:21,280 Speaker 12: extremely precise, and Joe, we track the movement of these 377 00:19:21,280 --> 00:19:23,800 Speaker 12: boats our military. Our military watches a lot of ships. 378 00:19:23,800 --> 00:19:26,480 Speaker 12: We watch Russian, the Baltics, we watch China in the Pacific, 379 00:19:26,920 --> 00:19:30,280 Speaker 12: and we can watch the Venezuela. They see when the 380 00:19:30,320 --> 00:19:33,879 Speaker 12: cargo gets to the dock, they see when the crew 381 00:19:33,960 --> 00:19:37,600 Speaker 12: pulls up to the pier. And these boat use long 382 00:19:38,200 --> 00:19:42,919 Speaker 12: established routes. That's why we have such precise intelligence and 383 00:19:43,000 --> 00:19:45,920 Speaker 12: are carrying out these strikes in international waters. 384 00:19:46,880 --> 00:19:47,919 Speaker 5: Well, that's fascinating. 385 00:19:47,960 --> 00:19:50,960 Speaker 4: So we can see them loading presumably loading the drugs 386 00:19:51,000 --> 00:19:53,600 Speaker 4: on the boat, which gives the administration or the Pentagon 387 00:19:53,640 --> 00:19:56,000 Speaker 4: the confidence that it has that these are in fact 388 00:19:56,160 --> 00:19:56,960 Speaker 4: drug smugglers. 389 00:19:58,000 --> 00:19:58,840 Speaker 1: Oh, absolutely know. 390 00:19:58,960 --> 00:20:01,600 Speaker 12: This is technology that was developed to track you know, 391 00:20:01,680 --> 00:20:04,360 Speaker 12: the Soviets and the Russians and the Chinese. Yeah, our 392 00:20:04,480 --> 00:20:08,320 Speaker 12: maritime surveillance is excellent, it's exquisite. 393 00:20:08,520 --> 00:20:11,840 Speaker 1: So you shifted over to the drug boats. 394 00:20:12,200 --> 00:20:16,159 Speaker 12: Number of different resources, drone satellites, patrol aircraft. 395 00:20:15,920 --> 00:20:16,880 Speaker 5: Everything is all set. 396 00:20:17,040 --> 00:20:19,800 Speaker 12: Maritime sensors are kind of a different group, and they're 397 00:20:19,840 --> 00:20:22,159 Speaker 12: all tuned to do this, and yes, you could just 398 00:20:22,240 --> 00:20:25,440 Speaker 12: see everything. So that's why the administration and Secretary of 399 00:20:25,480 --> 00:20:29,000 Speaker 12: Rubio especially is so confident that they know they are 400 00:20:29,080 --> 00:20:33,960 Speaker 12: striking drug boats for sure, and of course Venezuela is directly. 401 00:20:33,600 --> 00:20:34,159 Speaker 1: Tied to it. 402 00:20:35,080 --> 00:20:38,800 Speaker 4: All right, CEC's showing us now the unclassified footage here 403 00:20:38,840 --> 00:20:42,040 Speaker 4: on YouTube of this thing blowing up. CC's got all 404 00:20:42,160 --> 00:20:44,880 Speaker 4: kinds of video, doctor, It's kind of amazing what we're 405 00:20:44,880 --> 00:20:46,879 Speaker 4: looking at right now. Is that from a satellite or 406 00:20:46,920 --> 00:20:50,520 Speaker 4: is that from a drone or an aircraft at high altitude. 407 00:20:51,400 --> 00:20:56,520 Speaker 12: Any of the above, you know, yah, hard it's deliberately 408 00:20:56,560 --> 00:21:02,600 Speaker 12: difficult to tell, but aircraft drones all have this. You know, 409 00:21:02,920 --> 00:21:04,880 Speaker 12: there's a lot of systems. All the villains you named 410 00:21:04,880 --> 00:21:08,320 Speaker 12: have the ability to give some pretty good resolution stuff. 411 00:21:08,760 --> 00:21:11,879 Speaker 12: Or it could be indeed, a targeting pod also showing that. 412 00:21:12,440 --> 00:21:16,280 Speaker 12: So anytime a target's attacked, they've really carefully considered the 413 00:21:16,320 --> 00:21:19,680 Speaker 12: weapons parameters and made sure there's not another boat nearby 414 00:21:19,920 --> 00:21:22,320 Speaker 12: or any chance for unintended collateral damage. 415 00:21:23,240 --> 00:21:23,879 Speaker 5: Okay, got it. 416 00:21:24,359 --> 00:21:27,880 Speaker 4: This idea of us flying b ones around, we had 417 00:21:27,880 --> 00:21:30,119 Speaker 4: reported as well that we had B fifty twos flying 418 00:21:31,280 --> 00:21:35,240 Speaker 4: nearby Venezuela. Is this just if true? The President says, 419 00:21:35,240 --> 00:21:36,680 Speaker 4: we weren't flying b ones. I don't know if you 420 00:21:36,720 --> 00:21:38,280 Speaker 4: have a take on that, doctor, But what would be 421 00:21:38,280 --> 00:21:38,800 Speaker 4: the point of this. 422 00:21:38,880 --> 00:21:41,440 Speaker 5: It's not reconnaissance. Is it just a projection of power? 423 00:21:42,440 --> 00:21:42,680 Speaker 3: Oh? 424 00:21:42,760 --> 00:21:45,400 Speaker 12: Well, and the B fifty twos do have again an 425 00:21:45,560 --> 00:21:49,280 Speaker 12: excellent overwater reconnaissance capability to go out and find in 426 00:21:49,400 --> 00:21:52,720 Speaker 12: target ships. That's where the B one, you know that 427 00:21:52,880 --> 00:21:54,600 Speaker 12: bone acronym that stands. 428 00:21:54,280 --> 00:21:56,440 Speaker 1: For B O n E bone B one. 429 00:21:56,800 --> 00:21:58,879 Speaker 12: The museums call it the lancer, but the crews call 430 00:21:58,960 --> 00:22:01,679 Speaker 12: it the bone. And remember it did a lot of 431 00:22:01,680 --> 00:22:05,280 Speaker 12: this work in Afghanistan, sometimes doing just. 432 00:22:05,400 --> 00:22:06,359 Speaker 1: A low pass. 433 00:22:06,440 --> 00:22:09,280 Speaker 12: If the B one flies over you at two thousand feet, 434 00:22:09,520 --> 00:22:12,200 Speaker 12: as they often did in Afghanistan, that'll scare the living 435 00:22:12,280 --> 00:22:14,960 Speaker 12: daylights out of you. But we're really trying to show 436 00:22:15,000 --> 00:22:19,480 Speaker 12: power projection to Venezuela and to Venezuela's friends, the Russians. 437 00:22:19,600 --> 00:22:24,840 Speaker 4: Of course, I'm guessing it seems like it's within the 438 00:22:24,880 --> 00:22:28,320 Speaker 4: realm of possibility that we were flying b ones over there. 439 00:22:29,240 --> 00:22:31,200 Speaker 4: Doctor Grant, I want to ask you about what's happening 440 00:22:31,240 --> 00:22:33,679 Speaker 4: in Russia as well. As the President heads to Asia, 441 00:22:33,720 --> 00:22:36,240 Speaker 4: there are a number of hotspots that he needs to 442 00:22:36,240 --> 00:22:38,080 Speaker 4: worry about that may play into some of the talks 443 00:22:38,080 --> 00:22:41,200 Speaker 4: he's having with President She. Assuming that that meeting takes place, 444 00:22:41,520 --> 00:22:45,119 Speaker 4: Vladimir Prutin today says it's time to call up the reserves. 445 00:22:45,560 --> 00:22:48,640 Speaker 4: They need thousands more troops, not to go into Ukraine 446 00:22:48,680 --> 00:22:51,120 Speaker 4: to do shooting, but to stay in Russia to deal 447 00:22:51,160 --> 00:22:55,160 Speaker 4: with attacks from Ukrainian drones. This happening at the same 448 00:22:55,200 --> 00:22:59,159 Speaker 4: time that Vladimir Zelenski's asking for Tamahawk cruise missiles. What 449 00:22:59,240 --> 00:23:01,400 Speaker 4: do you make of russia posture in this war right now? 450 00:23:02,720 --> 00:23:07,240 Speaker 12: Well, inside Putin's head, he is really worried about those Tomahawks. 451 00:23:07,520 --> 00:23:11,880 Speaker 12: President Trump hasn't given permission yet, But if they decided 452 00:23:11,920 --> 00:23:14,919 Speaker 12: to send Tomahawks to Ukraine, they can be put on 453 00:23:15,119 --> 00:23:17,320 Speaker 12: an Air Force C seventeen cargo plane and they can't 454 00:23:17,359 --> 00:23:20,239 Speaker 12: be there in about twenty four hours. The Tomahawks and 455 00:23:20,520 --> 00:23:25,679 Speaker 12: Ukraine's drone attacks present an almost insoluble problem for Putin 456 00:23:25,960 --> 00:23:29,520 Speaker 12: of trying to defend air bases there are sixty Russian 457 00:23:29,560 --> 00:23:32,800 Speaker 12: air bases within tomahawk range from Ukraine, and also to 458 00:23:32,880 --> 00:23:36,800 Speaker 12: defend that oil and gas pipeline and energy infrastructure targets, 459 00:23:36,800 --> 00:23:39,760 Speaker 12: a lot of it out in remote areas. They literally 460 00:23:39,920 --> 00:23:45,960 Speaker 12: cannot put air defenses around every potential drone or tomahawk target, 461 00:23:46,119 --> 00:23:49,560 Speaker 12: and so we're seeing this partial Russian mobilization to try 462 00:23:49,600 --> 00:23:52,879 Speaker 12: to beef up air defenses. Remember, Ukraine has very successfully 463 00:23:53,240 --> 00:23:55,879 Speaker 12: hit some Russian bombers and warplanes on the ground with 464 00:23:56,000 --> 00:23:59,959 Speaker 12: drone attacks as well as really shwacking the energy infrastructure 465 00:24:00,000 --> 00:24:01,360 Speaker 12: in the last couple of months. 466 00:24:02,000 --> 00:24:06,560 Speaker 4: I know that they're getting some cruise missiles from European partners. 467 00:24:06,560 --> 00:24:10,600 Speaker 4: But if in fact Vladimir Zelenski got the tomahawks he 468 00:24:10,640 --> 00:24:14,000 Speaker 4: was looking for, what would that mean for the trajectory 469 00:24:14,040 --> 00:24:16,840 Speaker 4: of the war. And is Donald Trump right that we 470 00:24:16,920 --> 00:24:19,000 Speaker 4: only have enough maybe for ourselves. 471 00:24:20,440 --> 00:24:25,639 Speaker 12: Tactically, tomahawks would let Ukraine attack Russian energy infrastructure, the 472 00:24:25,720 --> 00:24:29,520 Speaker 12: goal there being to push putin to the table. We 473 00:24:29,560 --> 00:24:31,560 Speaker 12: have a lot of tomahawks. We've just sold some to 474 00:24:31,600 --> 00:24:34,400 Speaker 12: the Japanese into the Netherlands. And don't forget, the army 475 00:24:34,440 --> 00:24:37,879 Speaker 12: has some new hypersonic missiles like Dark Eagle coming along. 476 00:24:38,040 --> 00:24:41,160 Speaker 12: We have the SM six. We have plenty of missiles. 477 00:24:41,200 --> 00:24:44,280 Speaker 12: They are enough there. So Trump doesn't have to decide 478 00:24:44,680 --> 00:24:47,600 Speaker 12: right away. The goal of all of this, of course, 479 00:24:47,840 --> 00:24:51,760 Speaker 12: is with the economic and the oil sanctions and military 480 00:24:51,760 --> 00:24:55,760 Speaker 12: pressure from Ukraine on legit Russian targets to try to 481 00:24:55,840 --> 00:24:59,040 Speaker 12: push Putin to at least agree to a ceasefire. 482 00:25:00,119 --> 00:25:02,760 Speaker 5: I do find it interesting that we're hearing from Maduro. 483 00:25:02,440 --> 00:25:07,440 Speaker 4: Now that they have five thousand surface to air missiles 484 00:25:08,320 --> 00:25:10,760 Speaker 4: that are ready for US. And I mentioned this, doctor 485 00:25:10,800 --> 00:25:13,480 Speaker 4: Grant with a breaking story that just dropped here from 486 00:25:13,520 --> 00:25:16,639 Speaker 4: Sean Parnell at the Pentagon. You may have known this 487 00:25:16,760 --> 00:25:19,359 Speaker 4: as coming because I know you have great sources in 488 00:25:19,400 --> 00:25:22,040 Speaker 4: the DoD In support of the President's directive, it says 489 00:25:22,040 --> 00:25:27,320 Speaker 4: to dismantle transnational criminal organizations encounter narco terror, The Secretary 490 00:25:27,440 --> 00:25:31,119 Speaker 4: of War has directed that the Jerry Ford Carrier Strike Group, 491 00:25:31,800 --> 00:25:34,959 Speaker 4: an embark carrier air wing to the US Southern Command 492 00:25:35,040 --> 00:25:39,840 Speaker 4: Area of responsibility. We're sending a carrier strike group down 493 00:25:39,880 --> 00:25:42,800 Speaker 4: to the Caribbean. What does that tell us about what happened? 494 00:25:42,800 --> 00:25:42,960 Speaker 2: Oh? 495 00:25:43,480 --> 00:25:46,480 Speaker 12: Yeah, and the Gerald R. Ford is our newest aircraft carrier. 496 00:25:46,480 --> 00:25:49,840 Speaker 12: They've just been in Europe. It's another fantastic use of 497 00:25:49,880 --> 00:25:51,919 Speaker 12: aircraft carriers by President Trump. 498 00:25:52,280 --> 00:25:52,960 Speaker 1: That means that. 499 00:25:52,920 --> 00:25:56,000 Speaker 12: They can have the most sophisticated aircraft there. And hey, 500 00:25:56,359 --> 00:25:59,520 Speaker 12: you saw what aircraft carriers participated in and hitting the 501 00:25:59,600 --> 00:26:02,920 Speaker 12: Hootie in the Red Sea area, and I think Maduro 502 00:26:03,040 --> 00:26:06,679 Speaker 12: needs to be very worried. Hey, don't forget Secretary Rubio 503 00:26:06,720 --> 00:26:11,480 Speaker 12: has a fifty million dollar bounty on Maduro's head following 504 00:26:11,520 --> 00:26:14,400 Speaker 12: an indictment by the Southern District of New York. I'm 505 00:26:14,440 --> 00:26:17,399 Speaker 12: delighted to see the aircraft carrier forward down there and 506 00:26:17,440 --> 00:26:20,200 Speaker 12: really showing American presence in the Western hemisphere. 507 00:26:20,920 --> 00:26:22,800 Speaker 4: Well is that, I though, is why are you delighted? 508 00:26:22,840 --> 00:26:24,679 Speaker 4: Is it a projection once again a force? Or are 509 00:26:24,680 --> 00:26:25,560 Speaker 4: we going to use this thing? 510 00:26:26,760 --> 00:26:27,080 Speaker 3: Oh? 511 00:26:27,359 --> 00:26:28,960 Speaker 1: All of the above, right. 512 00:26:29,000 --> 00:26:33,600 Speaker 12: It greatly extends the options. But I think what the 513 00:26:33,640 --> 00:26:36,320 Speaker 12: administration wants to see is they wanted these drug boats 514 00:26:36,320 --> 00:26:39,480 Speaker 12: to stop making these drug runs, and the FORD is 515 00:26:39,520 --> 00:26:42,280 Speaker 12: going to give them much greater ability to do overwater surveillance. 516 00:26:42,560 --> 00:26:44,880 Speaker 12: They can intensify the attacks if they want to. That's 517 00:26:44,920 --> 00:26:47,880 Speaker 12: plenty of shooters in the area, or maybe Madua will 518 00:26:47,880 --> 00:26:50,960 Speaker 12: come to his senses. The FORD can strike, it can 519 00:26:51,000 --> 00:26:54,960 Speaker 12: carry out presence, an excellent platform for this doctor. 520 00:26:55,000 --> 00:26:57,280 Speaker 5: It's great to have you back. I always appreciate your insights. 521 00:26:57,280 --> 00:26:59,480 Speaker 4: Rebecca Grant knows this stuff inside and out, clearly the 522 00:26:59,560 --> 00:27:01,560 Speaker 4: vice president and at the Lexington Institute. 523 00:27:01,680 --> 00:27:03,840 Speaker 5: Stay with us on Balance of Power. We'll have much 524 00:27:03,840 --> 00:27:05,040 Speaker 5: more coming up after this. 525 00:27:09,320 --> 00:27:12,800 Speaker 2: You're listening to the Bloomberg Balance of Power podcast. Catch 526 00:27:12,880 --> 00:27:15,960 Speaker 2: us live weekdays at noon and five pm Eastern on 527 00:27:16,040 --> 00:27:19,280 Speaker 2: Apple Corplay and Android Auto with the Bloomberg Business app. 528 00:27:19,320 --> 00:27:22,360 Speaker 2: You can also listen live on Amazon Alexa from our 529 00:27:22,400 --> 00:27:25,600 Speaker 2: flagship New York station, Just Say Alexa Play. 530 00:27:25,680 --> 00:27:27,159 Speaker 1: Bloomberg eleven thirty. 531 00:27:28,359 --> 00:27:31,560 Speaker 4: Welcome you to the threshold of the weekend on Bloomberg 532 00:27:31,680 --> 00:27:34,680 Speaker 4: Radio satellite radio Channel one twenty one, streaming live on 533 00:27:34,760 --> 00:27:38,480 Speaker 4: YouTube as well, with a slight update on the White 534 00:27:38,520 --> 00:27:43,879 Speaker 4: House demolition the now former East wing with walls built 535 00:27:43,960 --> 00:27:46,119 Speaker 4: up around the area so you can't see it in person. 536 00:27:46,160 --> 00:27:48,800 Speaker 4: And as you've been hearing in the newscasts, staffer's the 537 00:27:48,840 --> 00:27:51,520 Speaker 4: Treasury Department have been told to stop taking pictures and 538 00:27:51,560 --> 00:27:55,800 Speaker 4: people on tours the same enter. Charles and Judith Vorhees 539 00:27:56,960 --> 00:28:00,000 Speaker 4: taking the matter to court, filing a motion in Washington 540 00:28:00,040 --> 00:28:02,879 Speaker 4: in federal court just yesterday asking a judge to halt 541 00:28:02,920 --> 00:28:06,200 Speaker 4: any further damage to the White House while the legality 542 00:28:06,240 --> 00:28:09,000 Speaker 4: of the project is assessed. Knowing, of course, the administration 543 00:28:09,119 --> 00:28:11,480 Speaker 4: says that they're well within their rights to do this. 544 00:28:11,640 --> 00:28:14,800 Speaker 4: The motion seeking a temporary restraining order against the demolition, 545 00:28:14,960 --> 00:28:19,360 Speaker 4: arguing that it's taking place quote without legally required approvals 546 00:28:19,480 --> 00:28:22,800 Speaker 4: or reviews unquote. I don't know if the voarhees have 547 00:28:22,840 --> 00:28:25,399 Speaker 4: seen the White House lately, but you might be a 548 00:28:25,440 --> 00:28:28,240 Speaker 4: little late, unless, of course, they're planning to take down 549 00:28:28,280 --> 00:28:31,680 Speaker 4: the West Wing now. The President, of course, is heading abroad, 550 00:28:31,720 --> 00:28:37,200 Speaker 4: as I mentioned, casting his gaze beyond our borders here 551 00:28:37,320 --> 00:28:39,959 Speaker 4: number one, on his way to Asia, where he's going 552 00:28:40,000 --> 00:28:42,240 Speaker 4: to meet next week with President she and two canceling 553 00:28:42,320 --> 00:28:46,680 Speaker 4: talks with Canada because of a television commercial. And it's 554 00:28:46,680 --> 00:28:48,600 Speaker 4: not new. You might have seen it in the ballgame 555 00:28:48,760 --> 00:28:50,840 Speaker 4: a week ago. It's going to be back on TV tonight. 556 00:28:51,120 --> 00:28:54,680 Speaker 4: This is an ad from Ontario and invokes the voice 557 00:28:54,720 --> 00:28:58,480 Speaker 4: of Ronald Reagan, which already we've got everybody upset about this, 558 00:28:59,120 --> 00:29:02,040 Speaker 4: certainly with the trade spat that's being had right now. 559 00:29:02,080 --> 00:29:05,200 Speaker 4: It takes lines from a Ronald Reagan speech that was 560 00:29:05,240 --> 00:29:07,440 Speaker 4: delivered on the radio. And if you haven't seen it yet, 561 00:29:07,440 --> 00:29:09,920 Speaker 4: here's a taste throughout the world. 562 00:29:10,120 --> 00:29:13,560 Speaker 13: There's a growing realization that the weight of prosperity for 563 00:29:13,560 --> 00:29:18,360 Speaker 13: foreign nations. He is rejecting protectionist legislation and promoting fair 564 00:29:18,440 --> 00:29:23,440 Speaker 13: and free competition. America's jobs and growth are at state. 565 00:29:26,760 --> 00:29:30,280 Speaker 4: Donald Trump on truth Social Canada cheated and got caught. 566 00:29:30,280 --> 00:29:33,400 Speaker 4: He writes, they fraudulently took a big buy ad saying 567 00:29:33,520 --> 00:29:37,360 Speaker 4: Ronald Reagan did not like tariffs. What actually he loved 568 00:29:37,440 --> 00:29:40,880 Speaker 4: tariffs for our country and its national security. He says 569 00:29:40,920 --> 00:29:43,800 Speaker 4: Canada is trying to illegally influence the US Supreme Court 570 00:29:44,760 --> 00:29:47,360 Speaker 4: with this ad in one of the most important ruling 571 00:29:47,400 --> 00:29:50,200 Speaker 4: see says in the history of our country, saying that 572 00:29:50,360 --> 00:29:53,320 Speaker 4: Canada has long cheated on tariffs, charging our farmers as 573 00:29:53,360 --> 00:29:55,800 Speaker 4: much as four hundred percent. Thank you to the Ronald 574 00:29:55,800 --> 00:29:59,479 Speaker 4: Reagan Foundation. He says, we're exposing this fraud, when in 575 00:29:59,520 --> 00:30:03,320 Speaker 4: fact those are Ronald Reagan's words here. The ad, however, 576 00:30:03,480 --> 00:30:07,320 Speaker 4: misrepresents according to the statement presidential radio address and the 577 00:30:07,320 --> 00:30:10,240 Speaker 4: Government of Ontario did not seek or receive permission to 578 00:30:10,360 --> 00:30:13,120 Speaker 4: use and edit the remarks. Indeed, they grabbed a couple 579 00:30:13,160 --> 00:30:16,400 Speaker 4: of lines from the speech and stitched them together. But 580 00:30:16,480 --> 00:30:20,080 Speaker 4: if you read that whole speech, you realize what he 581 00:30:20,160 --> 00:30:22,680 Speaker 4: was actually doing was explaining his decision to add duties 582 00:30:22,680 --> 00:30:27,280 Speaker 4: to semiconductors from Japan as a last resort, and explained 583 00:30:27,280 --> 00:30:31,520 Speaker 4: why he did not like tariffs as opposed to loving them. 584 00:30:32,320 --> 00:30:34,800 Speaker 4: Let's assemble our political panel and get their thoughts. I 585 00:30:34,840 --> 00:30:38,280 Speaker 4: have a feeling that they'll have a few Bloomberg Politics contributors. 586 00:30:38,360 --> 00:30:41,160 Speaker 4: Rick Davis with me here in Washington, Genie Schanzano in 587 00:30:41,240 --> 00:30:44,120 Speaker 4: New York. Rick is Republican strategist and partner at stone 588 00:30:44,120 --> 00:30:47,440 Speaker 4: Core Capital Genius Democracy visiting fellow at Harvard Kennedy School's 589 00:30:47,480 --> 00:30:48,000 Speaker 4: Ash Center. 590 00:30:48,520 --> 00:30:49,880 Speaker 5: Happy Friday. Great to see you. 591 00:30:49,920 --> 00:30:52,720 Speaker 4: Both people should know if they don't already. Rick Davis 592 00:30:52,760 --> 00:30:57,280 Speaker 4: actually worked in the Ronald Reagan White House and as 593 00:30:57,280 --> 00:30:59,360 Speaker 4: a Republican. I think we can start with Rick here 594 00:31:00,120 --> 00:31:03,120 Speaker 4: is I'm pretty sure that the word tariff was considered 595 00:31:03,160 --> 00:31:07,960 Speaker 4: a swear word in Republican politics until Donald Trump came along. 596 00:31:08,040 --> 00:31:11,479 Speaker 7: Rick did Ronald Reagan love tariffs? Ron Reagan did not 597 00:31:11,560 --> 00:31:14,360 Speaker 7: love tariffs. Ron Reagan was a free trader. He was 598 00:31:14,400 --> 00:31:21,520 Speaker 7: someone who really espoused the sort of power of open 599 00:31:21,600 --> 00:31:25,680 Speaker 7: markets and free trade. And I think that it's really 600 00:31:25,720 --> 00:31:28,400 Speaker 7: important for people to know that this in the case 601 00:31:28,440 --> 00:31:32,080 Speaker 7: of this radio address, which he used to announce, you know, 602 00:31:32,160 --> 00:31:35,360 Speaker 7: certain kinds of policies or described the ones that his 603 00:31:35,400 --> 00:31:39,120 Speaker 7: administration was giving kind of the internet of the time, 604 00:31:41,680 --> 00:31:45,520 Speaker 7: he was announcing a very sensitive issue that the administration 605 00:31:45,640 --> 00:31:48,239 Speaker 7: spent a year working on, and that was a three 606 00:31:48,320 --> 00:31:54,000 Speaker 7: toh one case anti dumping case against Japan, and he 607 00:31:54,120 --> 00:31:59,040 Speaker 7: used existing laws to do that. He didn't go out 608 00:31:59,160 --> 00:32:04,280 Speaker 7: and announce an economic state of emergency in order to 609 00:32:04,320 --> 00:32:07,320 Speaker 7: sort of you know, bootstrap the congressional efforts. And by 610 00:32:07,360 --> 00:32:10,560 Speaker 7: the way, and he had to work very hard with 611 00:32:10,640 --> 00:32:13,440 Speaker 7: the Republicans on Capitol Hill to do this because they 612 00:32:13,480 --> 00:32:16,960 Speaker 7: were free traders and they didn't want us going into 613 00:32:17,000 --> 00:32:20,840 Speaker 7: a trade war with Japan. But long story short, I mean, 614 00:32:21,640 --> 00:32:24,720 Speaker 7: I think, you know, Ontario got what they really wanted to, 615 00:32:24,800 --> 00:32:29,120 Speaker 7: which was an enormous amount of publicity around this, you know, 616 00:32:29,200 --> 00:32:31,280 Speaker 7: sort of very inexpensive thirty second ad. 617 00:32:31,360 --> 00:32:31,840 Speaker 5: That's the truth. 618 00:32:31,880 --> 00:32:31,960 Speaker 7: You know. 619 00:32:32,040 --> 00:32:33,880 Speaker 4: I heard a couple of people mention it just in 620 00:32:33,920 --> 00:32:36,000 Speaker 4: the wilds after it appeared in the ballgame about a 621 00:32:36,000 --> 00:32:39,080 Speaker 4: week ago. Genie, if that hadn't taken place today, to 622 00:32:39,120 --> 00:32:41,160 Speaker 4: Rick's point, if the president hadn't been truthing about it, 623 00:32:41,200 --> 00:32:43,280 Speaker 4: I don't suspect it would have been on front pages. 624 00:32:43,320 --> 00:32:46,120 Speaker 4: We should also note that on Ontario's Premier Doug Ford 625 00:32:46,120 --> 00:32:50,040 Speaker 4: posted Reagan's full remarks, saying that Reagan knew that we 626 00:32:50,080 --> 00:32:54,320 Speaker 4: are stronger together. Mark Carney said negotiators, actually we're making 627 00:32:54,360 --> 00:32:58,680 Speaker 4: progress until this happened. So I'm wondering your thoughts on this, Genie, 628 00:32:58,680 --> 00:33:01,240 Speaker 4: and if the editing and the ad did anything to 629 00:33:01,320 --> 00:33:03,840 Speaker 4: change the meaning of Reagan's speech. 630 00:33:06,320 --> 00:33:07,160 Speaker 14: No, it didn't. 631 00:33:07,200 --> 00:33:09,280 Speaker 11: And I'll tell you who I'm most concerned about is 632 00:33:09,320 --> 00:33:11,720 Speaker 11: the Ronald Reagan Foundation because to. 633 00:33:11,760 --> 00:33:13,880 Speaker 14: Me, their statement read like sort. 634 00:33:13,640 --> 00:33:16,320 Speaker 11: Of like a hostage video, like, oh, we're going to 635 00:33:16,400 --> 00:33:19,800 Speaker 11: look into whether we can press charges and pursue this legally. 636 00:33:19,920 --> 00:33:23,240 Speaker 11: But wink wink, look at YouTube and see the actual speech, 637 00:33:23,280 --> 00:33:26,320 Speaker 11: and you'll know that it doesn't destroy it doesn't mean, 638 00:33:26,760 --> 00:33:29,160 Speaker 11: you know, it doesn't mess up at anything that he said, 639 00:33:29,280 --> 00:33:32,720 Speaker 11: because Ronald Reagan's point was like most Republicans at the 640 00:33:32,760 --> 00:33:36,400 Speaker 11: time and quite frankly many today, which is that after 641 00:33:36,440 --> 00:33:39,800 Speaker 11: the nineteen thirties and the Smoot Hawley tariffs and the 642 00:33:39,840 --> 00:33:42,640 Speaker 11: destruction that did not just to the economy but to 643 00:33:42,680 --> 00:33:47,760 Speaker 11: the Republican Party. Politically, they have not been in favor 644 00:33:47,840 --> 00:33:52,920 Speaker 11: of widespread tariffs. Ronald Reagan, like many Democrats and Republicans, 645 00:33:52,920 --> 00:33:55,479 Speaker 11: support targeted tariffs. 646 00:33:54,840 --> 00:33:57,680 Speaker 14: For a specific reason at a specific point in time. 647 00:33:58,000 --> 00:34:02,280 Speaker 11: But these broad, widespread terrans that Donald Trump and William 648 00:34:02,320 --> 00:34:05,760 Speaker 11: McKinley before him have pursued and were pursued with those 649 00:34:05,840 --> 00:34:10,120 Speaker 11: protectionist acts in the early nineteen thirties have been disastrous for. 650 00:34:10,120 --> 00:34:11,120 Speaker 14: The US economy. 651 00:34:11,480 --> 00:34:13,799 Speaker 11: So I think somebody needs to make sure that they 652 00:34:13,800 --> 00:34:16,080 Speaker 11: go to the Renald Reagan Foundation and make sure they're 653 00:34:16,080 --> 00:34:17,879 Speaker 11: all okay, because it feels like there was some arm 654 00:34:17,920 --> 00:34:20,719 Speaker 11: twisting there. You have out and make a statement, and 655 00:34:20,760 --> 00:34:22,880 Speaker 11: then they nodded into what's on YouTube, which is the 656 00:34:22,920 --> 00:34:27,120 Speaker 11: reality that Donald Trump, like most Republicans, doesn't favor broad 657 00:34:27,400 --> 00:34:30,160 Speaker 11: tariffs like the Democrat like Donald Trump does. 658 00:34:31,520 --> 00:34:36,560 Speaker 4: Jason Kenny, former Premier of Alberta on x calls it 659 00:34:36,640 --> 00:34:40,040 Speaker 4: quote a direct replay of his radio address formatted for 660 00:34:40,120 --> 00:34:42,160 Speaker 4: a one minute add Rick, what do you think about 661 00:34:42,160 --> 00:34:44,560 Speaker 4: the editing here? President Trump has a history with this 662 00:34:44,640 --> 00:34:47,040 Speaker 4: type of thing, calling out CBS, for instance, for editing 663 00:34:47,040 --> 00:34:51,000 Speaker 4: remarks and trying to suggest that Canada was cheating here 664 00:34:51,000 --> 00:34:53,680 Speaker 4: does it betray the spirit of what Reagan was trying 665 00:34:53,680 --> 00:34:54,000 Speaker 4: to say. 666 00:34:54,600 --> 00:35:00,120 Speaker 7: I think a vast amount of advertising that's in the 667 00:35:00,200 --> 00:35:05,560 Speaker 7: public policy or political domain does exactly what Doug Ford, 668 00:35:05,680 --> 00:35:08,799 Speaker 7: the Premiere of Ontario, did, which is he took the 669 00:35:08,840 --> 00:35:11,759 Speaker 7: meaning of the speech. He knows that Donald Trump or 670 00:35:12,880 --> 00:35:15,920 Speaker 7: Ron Reagan was a free trader, and he pulled the 671 00:35:15,960 --> 00:35:22,000 Speaker 7: pieces out that that enunciated that. And so I think, again, 672 00:35:22,200 --> 00:35:26,280 Speaker 7: a lot of smoke, no fire, right. I'm not sure 673 00:35:27,440 --> 00:35:32,360 Speaker 7: Premier Carney appreciates the intervention of Doug Ford in the negotiating. 674 00:35:32,400 --> 00:35:34,680 Speaker 5: That's the whole side of his story with the White House. 675 00:35:34,760 --> 00:35:41,680 Speaker 7: But you know, Doug Ford's a very i think, voisterous 676 00:35:42,040 --> 00:35:44,439 Speaker 7: leader and has gotten into a tip with Donald Trump 677 00:35:44,520 --> 00:35:47,279 Speaker 7: on more than one occasion. And I think this is 678 00:35:47,320 --> 00:35:50,120 Speaker 7: a good example of how you can live inside of 679 00:35:50,160 --> 00:35:53,640 Speaker 7: Donald Trump's head in a cheap thirty second. I shouldn't 680 00:35:53,640 --> 00:35:57,280 Speaker 7: say cheap, it is baseball, but I think. 681 00:35:57,120 --> 00:35:59,120 Speaker 5: This is a lesson to other leaders. 682 00:35:59,239 --> 00:36:01,439 Speaker 4: Will you know, let's stick on that for a minute, 683 00:36:01,440 --> 00:36:03,000 Speaker 4: because you made a lot of politicalized Is this an 684 00:36:03,040 --> 00:36:04,640 Speaker 4: effective thirty second ad? 685 00:36:04,840 --> 00:36:08,279 Speaker 7: Well, yes, because of the fact that it's probably they 686 00:36:08,280 --> 00:36:10,759 Speaker 7: probably spend one hundred thousand dollars to make and put 687 00:36:10,760 --> 00:36:13,520 Speaker 7: it on and has now had fifty million dollars worth 688 00:36:13,560 --> 00:36:16,920 Speaker 7: of publicity. So I would say that is a very effective. 689 00:36:16,480 --> 00:36:19,319 Speaker 5: Ad free media. Yeah, let's do that. 690 00:36:19,400 --> 00:36:22,640 Speaker 4: We've got the sound of Carnie here talking this morning 691 00:36:23,040 --> 00:36:24,360 Speaker 4: about our trade relationship. 692 00:36:24,400 --> 00:36:24,920 Speaker 5: Let's listen. 693 00:36:25,920 --> 00:36:28,720 Speaker 15: We can't control the trade policy of the United States. 694 00:36:29,680 --> 00:36:34,360 Speaker 15: We recognize that that policy has fundamentally changed from the 695 00:36:34,360 --> 00:36:38,799 Speaker 15: policy in the nineteen eighties, nineteen nineties, two thousands, and 696 00:36:38,920 --> 00:36:42,320 Speaker 15: it's a situation where the United States has tariffs against 697 00:36:42,600 --> 00:36:45,759 Speaker 15: every one of their trading partners to different degrees, and 698 00:36:45,800 --> 00:36:49,080 Speaker 15: a lot of progress has been made, and we stand 699 00:36:49,120 --> 00:36:53,520 Speaker 15: ready to pick up on that progress and build on 700 00:36:53,560 --> 00:36:58,239 Speaker 15: that progress when the Americans are ready to have those discussions. 701 00:36:59,480 --> 00:37:02,200 Speaker 4: I don't know when the Americans are going to be ready, Genie. 702 00:37:02,239 --> 00:37:04,360 Speaker 4: He's going to be in Asia. He'll be at the 703 00:37:04,360 --> 00:37:08,279 Speaker 4: Apec and Ossian summits next week. Does Donald Trump have 704 00:37:08,320 --> 00:37:10,560 Speaker 4: a little pull aside here? Does Carne have to demand 705 00:37:10,560 --> 00:37:11,600 Speaker 4: the ad come off the air? 706 00:37:14,040 --> 00:37:16,440 Speaker 11: You know, I don't know if they will speak. I 707 00:37:16,440 --> 00:37:20,000 Speaker 11: wouldn't be surprised if they do. But what Carney is 708 00:37:20,040 --> 00:37:24,680 Speaker 11: saying is absolutely right. They can't do anything to change 709 00:37:24,719 --> 00:37:27,400 Speaker 11: Donald Trump's mind on this. They can't do anything to 710 00:37:27,520 --> 00:37:30,520 Speaker 11: change US policy. But what they can do is what 711 00:37:30,640 --> 00:37:34,040 Speaker 11: so many allies are doing, which is working in a 712 00:37:34,080 --> 00:37:38,640 Speaker 11: long term to protect themselves economically from the United States. 713 00:37:39,040 --> 00:37:42,440 Speaker 11: And that is good for them and bad for the 714 00:37:42,560 --> 00:37:44,839 Speaker 11: United States security economy. 715 00:37:45,120 --> 00:37:48,400 Speaker 14: Long term. We have allies for a reason. 716 00:37:48,560 --> 00:37:52,200 Speaker 11: We need their support, and we need it both economically 717 00:37:52,480 --> 00:37:55,200 Speaker 11: and we need it from a security perspective. And all 718 00:37:55,480 --> 00:37:59,759 Speaker 11: this broadspread, broadspread tariff policy has done since it wasn't 719 00:37:59,800 --> 00:38:04,200 Speaker 11: now is alienate the United States from its closest allies. 720 00:38:04,520 --> 00:38:05,479 Speaker 14: And if there was a. 721 00:38:05,400 --> 00:38:08,520 Speaker 11: Good, sound reason the President could offer for the policy, 722 00:38:08,840 --> 00:38:10,759 Speaker 11: it would maybe it would make sense, you know. But 723 00:38:10,840 --> 00:38:14,360 Speaker 11: he for Canada, goes for everything from fentanyl to immigration, 724 00:38:14,840 --> 00:38:18,440 Speaker 11: to raising money to returning manufacturing home, and so it 725 00:38:18,520 --> 00:38:21,440 Speaker 11: is a confused policy. It is a president who apparently 726 00:38:21,480 --> 00:38:23,160 Speaker 11: is up in the middle of the night, triggered by 727 00:38:23,280 --> 00:38:26,319 Speaker 11: ads that are a week old, and this is no 728 00:38:26,480 --> 00:38:28,960 Speaker 11: way to set sound policy and doing it at a 729 00:38:29,000 --> 00:38:31,160 Speaker 11: time he set it over to Asia. And also the 730 00:38:31,200 --> 00:38:33,520 Speaker 11: Supreme Court is hearing a case on whether he has 731 00:38:33,560 --> 00:38:36,520 Speaker 11: this power to set this policy to begin with, So 732 00:38:36,560 --> 00:38:39,880 Speaker 11: at the front time for the tariff policy, and the 733 00:38:39,920 --> 00:38:43,399 Speaker 11: President is making decisions that are not in the long 734 00:38:43,520 --> 00:38:44,320 Speaker 11: term best. 735 00:38:44,080 --> 00:38:46,200 Speaker 14: Interest of the United States. That's clear. 736 00:38:46,560 --> 00:38:49,640 Speaker 11: Ronald Reagan knew it, and Donald Trump should swallow that 737 00:38:49,719 --> 00:38:50,280 Speaker 11: and learn. 738 00:38:50,120 --> 00:38:50,920 Speaker 14: The lesson. 739 00:38:52,840 --> 00:38:55,960 Speaker 5: Boy a lot there. As the President prepares to board 740 00:38:56,000 --> 00:38:56,800 Speaker 5: the jet here. 741 00:38:56,840 --> 00:38:58,799 Speaker 4: Rick, he's going to be flying out late tonight after 742 00:38:58,840 --> 00:39:01,000 Speaker 4: ten pm on his way to this summit. The point 743 00:39:01,000 --> 00:39:03,400 Speaker 4: has been made that he won't get the carpet rolled 744 00:39:03,400 --> 00:39:05,440 Speaker 4: out quite the way that he did on recent trips 745 00:39:05,800 --> 00:39:07,759 Speaker 4: to Europe, for instance, that this is going to be 746 00:39:07,800 --> 00:39:10,480 Speaker 4: maybe a more difficult trip as he works up to 747 00:39:10,520 --> 00:39:14,319 Speaker 4: the meeting with President She, how will his reception be 748 00:39:14,440 --> 00:39:16,520 Speaker 4: impacted by everything we're talking about here. 749 00:39:17,200 --> 00:39:18,040 Speaker 5: It's hard to tell. 750 00:39:18,680 --> 00:39:21,280 Speaker 7: It certainly puts his back up before he boards a trium. 751 00:39:21,400 --> 00:39:24,239 Speaker 7: You know, he is an emotional animal, right, so if 752 00:39:24,239 --> 00:39:27,000 Speaker 7: he's in a bad mood when he lands, either you know, 753 00:39:27,360 --> 00:39:30,440 Speaker 7: allows he breakfast on landing, or you know somebody has 754 00:39:30,680 --> 00:39:34,560 Speaker 7: announced a trade sanctioned against him. Those things affect his 755 00:39:34,640 --> 00:39:38,800 Speaker 7: demeanor and in his relationships with other heads of state, 756 00:39:38,960 --> 00:39:41,920 Speaker 7: and different from Europe, where he's really gotten to know 757 00:39:42,000 --> 00:39:46,440 Speaker 7: these guys particularly well. I think it's still a growth 758 00:39:46,680 --> 00:39:50,400 Speaker 7: plan in Asia to sort of develop these relationships, develop 759 00:39:50,880 --> 00:39:54,160 Speaker 7: the bilateral relationships between the US and some of these countries. 760 00:39:54,640 --> 00:39:57,400 Speaker 7: And so it's much harder work than hanging around the 761 00:39:57,400 --> 00:39:59,359 Speaker 7: guys from Europe who you've gotten to know quite a bit. 762 00:39:59,440 --> 00:40:04,600 Speaker 7: And frankly, outside of trade, the issues are much more intractable. 763 00:40:04,640 --> 00:40:07,280 Speaker 7: In other words, yes, you have a shooting war in Europe, 764 00:40:07,719 --> 00:40:13,400 Speaker 7: but you have the potential for an existential war in 765 00:40:13,640 --> 00:40:17,960 Speaker 7: Asia with China, and so all of that sort of 766 00:40:18,000 --> 00:40:22,960 Speaker 7: clouds the proceedings here. And so I think that this 767 00:40:23,000 --> 00:40:24,480 Speaker 7: is going to be a much harder work for the 768 00:40:24,520 --> 00:40:28,040 Speaker 7: President and it will appear more like a working trip. 769 00:40:28,040 --> 00:40:30,000 Speaker 7: It's not just a big party where everyone's going to 770 00:40:30,000 --> 00:40:30,640 Speaker 7: take a picture and. 771 00:40:30,560 --> 00:40:33,520 Speaker 4: Want exactly we're not always used to those, and we're 772 00:40:33,520 --> 00:40:35,000 Speaker 4: going to be covering that. Of course, over the course 773 00:40:35,040 --> 00:40:37,239 Speaker 4: of the weekend, Tyler Kendall will be wheels up to 774 00:40:37,320 --> 00:40:39,879 Speaker 4: Asia as well, bringing us reporting throughout next week here 775 00:40:39,920 --> 00:40:40,560 Speaker 4: on Bloomberg. 776 00:40:40,800 --> 00:40:43,239 Speaker 5: Thanks for listening to the Balance of Power podcast. 777 00:40:43,840 --> 00:40:46,280 Speaker 4: Make sure to subscribe if you haven't already, at Apple, 778 00:40:46,400 --> 00:40:49,440 Speaker 4: Spotify or wherever you get your podcasts, and you can 779 00:40:49,440 --> 00:40:52,520 Speaker 4: find US Live every weekday from Washington, DC at noontime 780 00:40:52,600 --> 00:40:54,680 Speaker 4: Eastern at bloomberg dot com.