1 00:00:00,080 --> 00:00:13,800 Speaker 1: Ye, Welcome to the Bloomberg Surveillance podcast. I'm Tom Keane Jailey. 2 00:00:13,960 --> 00:00:17,560 Speaker 1: We bring you insight from the best in economics, finance, investment, 3 00:00:18,000 --> 00:00:23,480 Speaker 1: and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud, 4 00:00:23,640 --> 00:00:34,640 Speaker 1: Bloomberg dot Com, and of course, on the Bloomberg. Brian 5 00:00:34,680 --> 00:00:38,160 Speaker 1: Belski has been tweeting optimism on the equity market sees 6 00:00:38,200 --> 00:00:43,159 Speaker 1: with bemo Capital. Uh Markets, Brian, Good morning, UM. I 7 00:00:43,240 --> 00:00:45,680 Speaker 1: want to talk about your case to be in the 8 00:00:45,760 --> 00:00:49,800 Speaker 1: market and not in cash when I see three quarters 9 00:00:49,840 --> 00:00:54,360 Speaker 1: of three point one percent GDP growth, real GDP growth 10 00:00:55,280 --> 00:00:59,080 Speaker 1: and the nominal animal spirit numbers from James Diamond and 11 00:00:59,200 --> 00:01:03,360 Speaker 1: JP Morgan. Uh this morning, What did the gloom crew 12 00:01:03,480 --> 00:01:07,800 Speaker 1: get wrong about the machine that is the American economy? 13 00:01:08,360 --> 00:01:10,920 Speaker 1: I love that the gloom to um, good morning, Bloomberg 14 00:01:10,959 --> 00:01:13,920 Speaker 1: in morningtown, I would say this, We've had the lowest, 15 00:01:14,400 --> 00:01:18,360 Speaker 1: most boring styran deviation of growth environment of GDP and 16 00:01:18,400 --> 00:01:23,520 Speaker 1: earnings growth since the Great Recession, which was let me 17 00:01:23,560 --> 00:01:25,640 Speaker 1: just repeat everyone that doesn't know that was the once 18 00:01:25,640 --> 00:01:28,000 Speaker 1: in every other generation events. Every time the market goes 19 00:01:28,000 --> 00:01:29,880 Speaker 1: down doesn't mean it's two thousand and two thousand nine. 20 00:01:29,920 --> 00:01:34,800 Speaker 1: The the negative naysayers continue to believe that markets can't 21 00:01:34,840 --> 00:01:36,959 Speaker 1: go up unless interest rates go down. We are in 22 00:01:36,959 --> 00:01:40,280 Speaker 1: a brand new fundamental cycle when we haven't seen since 23 00:01:40,319 --> 00:01:42,920 Speaker 1: the fifties or the sixties, or even the beginning of 24 00:01:42,959 --> 00:01:46,240 Speaker 1: the market bullmarket in eighties. This is not the bull 25 00:01:46,280 --> 00:01:47,880 Speaker 1: market of the eight nineties. Is the bull market of 26 00:01:47,920 --> 00:01:51,280 Speaker 1: the early eighties when we're picking stocks and buying companies 27 00:01:51,320 --> 00:01:54,200 Speaker 1: and things like that. Fun that good old fashioned fundamental 28 00:01:54,240 --> 00:01:58,680 Speaker 1: analysis with respect to the JP morgan Um revenues and 29 00:01:58,680 --> 00:02:01,600 Speaker 1: in numbers that have really kind of kick started with 30 00:02:01,920 --> 00:02:03,720 Speaker 1: what we believe is going to continue to happen within 31 00:02:03,720 --> 00:02:06,640 Speaker 1: the big banks. Do we we think that on a 32 00:02:06,640 --> 00:02:08,840 Speaker 1: near term based last couple of quarters time, that most 33 00:02:08,880 --> 00:02:12,079 Speaker 1: institutional investors have been renting the financials, not owning them, 34 00:02:12,120 --> 00:02:14,520 Speaker 1: and then kind of more chasing momentum. And we still 35 00:02:14,600 --> 00:02:16,799 Speaker 1: think that the majority of ours to clients around the 36 00:02:16,840 --> 00:02:19,840 Speaker 1: world are under exposed the big banks, especially the ones 37 00:02:19,919 --> 00:02:22,440 Speaker 1: with scale. That's like John Farrell rents me and he 38 00:02:22,520 --> 00:02:25,120 Speaker 1: doesn't own me. I don't like the sound of that. 39 00:02:25,240 --> 00:02:29,560 Speaker 1: So to be honest with your Brian, when I spoke 40 00:02:29,560 --> 00:02:31,680 Speaker 1: to you last time, that was the big conviction code 41 00:02:31,680 --> 00:02:35,880 Speaker 1: for you is financials, financials, financials? What do you think 42 00:02:35,919 --> 00:02:38,720 Speaker 1: investors are underpricing whatever the bank is going to deliver 43 00:02:38,840 --> 00:02:42,360 Speaker 1: that the consensus few doesn't appreciate. Yeah, it's a great question. 44 00:02:42,400 --> 00:02:45,840 Speaker 1: You saw the number tres this morning with respect to JPM. 45 00:02:45,880 --> 00:02:47,880 Speaker 1: I think it's a microcosmin what's going to happen within 46 00:02:48,000 --> 00:02:51,359 Speaker 1: within these big franchises that have scale and SST managements. 47 00:02:51,400 --> 00:02:54,080 Speaker 1: Last well, wealth management businesses in the commercial bank both 48 00:02:54,240 --> 00:02:57,000 Speaker 1: kind of feed into capital markets. Capital markets traditionally are 49 00:02:57,040 --> 00:02:59,720 Speaker 1: smaller parts of the bigger banks. You know, as we 50 00:02:59,800 --> 00:03:03,480 Speaker 1: can tinue to see people rotating. You know, Tom's been 51 00:03:03,520 --> 00:03:05,520 Speaker 1: asking me for ten years, when are people are gonna 52 00:03:05,520 --> 00:03:08,880 Speaker 1: start buying equities and start buying dividend growth and get 53 00:03:08,880 --> 00:03:11,480 Speaker 1: out of the sixth income? I do think that, dare 54 00:03:11,520 --> 00:03:13,919 Speaker 1: I say the great rotation, let's call something else. I 55 00:03:13,960 --> 00:03:16,440 Speaker 1: do think that people over the next three to five 56 00:03:16,520 --> 00:03:19,600 Speaker 1: years are gonna start buying equity income to to provide income. 57 00:03:19,600 --> 00:03:23,359 Speaker 1: And that's a pretty that's a pretty popular and very 58 00:03:23,400 --> 00:03:26,160 Speaker 1: profitable business for banks, and it hasn't even begun yet. 59 00:03:26,200 --> 00:03:29,799 Speaker 1: So I think the wealth management, commercial banking part of 60 00:03:29,960 --> 00:03:31,919 Speaker 1: the big banks with scale are going to be very 61 00:03:32,000 --> 00:03:34,400 Speaker 1: very strong growth vehicles for the next ten years. That's 62 00:03:34,400 --> 00:03:36,280 Speaker 1: a really interesting point, Brian. I think the other thing, 63 00:03:36,360 --> 00:03:38,920 Speaker 1: if you speak to sort of the bankcase around the financials, 64 00:03:38,920 --> 00:03:42,080 Speaker 1: you're struggle to find one. Firstly. Secondly, if you do 65 00:03:42,200 --> 00:03:44,280 Speaker 1: find them, they might tell you something about loan growth 66 00:03:44,280 --> 00:03:45,920 Speaker 1: that it's just not picking up, and this is the 67 00:03:45,920 --> 00:03:48,360 Speaker 1: peak of the cycle for the financials. It's the JP 68 00:03:48,480 --> 00:03:50,920 Speaker 1: Morgan numbers this morning challenge that kind of badcase for 69 00:03:51,000 --> 00:03:53,880 Speaker 1: you around loan growth. I think it does. And you 70 00:03:53,960 --> 00:03:56,440 Speaker 1: get to remember too that you know corporate CEOs as 71 00:03:56,440 --> 00:03:59,040 Speaker 1: a matter off, it's a bank CEO or CEO of 72 00:03:59,280 --> 00:04:02,040 Speaker 1: John Farrow and Corporated. I have been paid to be 73 00:04:02,160 --> 00:04:05,200 Speaker 1: conservative and not spend any money because that's how the 74 00:04:05,240 --> 00:04:07,560 Speaker 1: stock price has gone up, by buying backstock, paying dividends 75 00:04:07,600 --> 00:04:10,360 Speaker 1: and and cutting costs. And so until we start to 76 00:04:10,360 --> 00:04:13,360 Speaker 1: see really implicit demand fall into the marketplace, companies are 77 00:04:13,360 --> 00:04:16,400 Speaker 1: going to spend any money. So that commercial loan it's 78 00:04:16,680 --> 00:04:18,800 Speaker 1: going to be as strong as everybody thinks. But that's 79 00:04:18,839 --> 00:04:21,960 Speaker 1: the key thing. Man. We're gonna start spending money, and 80 00:04:22,000 --> 00:04:24,039 Speaker 1: the banks are going to continue to be conservative because 81 00:04:24,040 --> 00:04:26,560 Speaker 1: they're not going to admit that regulations are actually in 82 00:04:26,560 --> 00:04:30,239 Speaker 1: the process over the next several years of easing. What 83 00:04:30,320 --> 00:04:32,479 Speaker 1: are they going to do with cash? Is the use 84 00:04:32,520 --> 00:04:37,880 Speaker 1: of cash exercise bordering for some companies on financial engineering? 85 00:04:38,520 --> 00:04:40,719 Speaker 1: Is it the same as three years ago when it 86 00:04:40,839 --> 00:04:45,840 Speaker 1: was easy or is it different now? I think it's 87 00:04:45,839 --> 00:04:47,320 Speaker 1: going to be a bit of a mixture, because if 88 00:04:47,360 --> 00:04:49,359 Speaker 1: you think about it, Tom, and you you know this 89 00:04:49,560 --> 00:04:52,360 Speaker 1: that from a from a historical perspective, interest rates are 90 00:04:52,360 --> 00:04:54,039 Speaker 1: still low. They're they're going to be higher than they 91 00:04:54,080 --> 00:04:55,800 Speaker 1: were three years ago. The engineering is gonna be a 92 00:04:55,839 --> 00:04:58,680 Speaker 1: little bit different. We we continue to think that that 93 00:04:58,800 --> 00:05:01,560 Speaker 1: companies are going to go out in and uh look 94 00:05:01,560 --> 00:05:03,440 Speaker 1: for commercial loans because they don't want to use their 95 00:05:03,480 --> 00:05:06,200 Speaker 1: balance sheet because there's a shorter term use of money, uh, 96 00:05:06,240 --> 00:05:09,000 Speaker 1: and they can pay those commercial loans off and facilitate grows. 97 00:05:09,000 --> 00:05:11,240 Speaker 1: I gotta remember, man, I mean, the the age of 98 00:05:11,279 --> 00:05:14,320 Speaker 1: equipment in our country is at all time highs. We 99 00:05:14,320 --> 00:05:16,160 Speaker 1: haven't spent any money on that. So I do think 100 00:05:16,160 --> 00:05:18,599 Speaker 1: we're gonna start to see more and more spending. But 101 00:05:18,800 --> 00:05:21,159 Speaker 1: from the cash perspective, I think they're going to go 102 00:05:21,160 --> 00:05:23,120 Speaker 1: out and get a commercial loan and something that we 103 00:05:23,160 --> 00:05:25,000 Speaker 1: have not seen. You can remember a lot of financial 104 00:05:25,080 --> 00:05:28,159 Speaker 1: analysts that are covering the banks or companies have less 105 00:05:28,160 --> 00:05:30,880 Speaker 1: than ten years experience. They've never seen a CNI loan 106 00:05:30,960 --> 00:05:33,400 Speaker 1: cycle like we saw in the eighties and even part 107 00:05:33,440 --> 00:05:35,720 Speaker 1: of the nineties. Bran And another element that a lot 108 00:05:35,720 --> 00:05:37,880 Speaker 1: of people discussed going into this is just the deposit 109 00:05:37,920 --> 00:05:41,239 Speaker 1: base for many of these financials. It has been virtually free. 110 00:05:41,240 --> 00:05:42,600 Speaker 1: They haven't had to pay for it. They haven't have 111 00:05:42,680 --> 00:05:45,280 Speaker 1: to pay big interest rates on those deposits. They haven't 112 00:05:45,279 --> 00:05:47,920 Speaker 1: had to match the slide up in the Federal Reserve 113 00:05:48,000 --> 00:05:50,279 Speaker 1: move on on higher rates. When do we start to 114 00:05:50,279 --> 00:05:52,520 Speaker 1: see that shift because people have started to discussed that 115 00:05:52,560 --> 00:05:55,320 Speaker 1: it may happen at some point through this year in 116 00:05:55,320 --> 00:05:57,440 Speaker 1: a material way relative to what we've seen in years 117 00:05:57,440 --> 00:06:01,920 Speaker 1: gone by. Yeah, I think it's a great point, uh, 118 00:06:02,360 --> 00:06:04,640 Speaker 1: the deposit side of things and more, I mean, what 119 00:06:04,720 --> 00:06:07,360 Speaker 1: we're seeing in overall long er hold more than offset 120 00:06:07,400 --> 00:06:10,560 Speaker 1: we're seeing in deposits. And you also see two that 121 00:06:10,720 --> 00:06:15,400 Speaker 1: although we are seeing higher cash balances with respect of 122 00:06:15,440 --> 00:06:17,320 Speaker 1: what we've seen the last let's say ten or fifteen 123 00:06:17,400 --> 00:06:19,760 Speaker 1: years in banks, we're starting to start starting to see 124 00:06:19,760 --> 00:06:22,320 Speaker 1: more spending as well. So some of that will be offset. So, Brian, 125 00:06:22,400 --> 00:06:24,479 Speaker 1: just just to be clear, the deposits sort of loan 126 00:06:24,560 --> 00:06:27,560 Speaker 1: business to vanilla sort of traditional banking business, is it 127 00:06:27,560 --> 00:06:32,599 Speaker 1: going to be more about or yeah, over the banking 128 00:06:32,640 --> 00:06:34,600 Speaker 1: side of things. I mean, that's going to be the slowest, 129 00:06:34,720 --> 00:06:37,760 Speaker 1: most grindiest part of the growth base of these banks 130 00:06:37,760 --> 00:06:39,080 Speaker 1: and how they're going to make money for the next 131 00:06:39,160 --> 00:06:43,640 Speaker 1: ten or fifteen years. What else is out there beside 132 00:06:43,680 --> 00:06:47,320 Speaker 1: the banks? Where's the value opportunity? Is it a twenty 133 00:06:47,400 --> 00:06:50,280 Speaker 1: eight multiples that's come back to a twenty three multiple 134 00:06:50,800 --> 00:06:54,040 Speaker 1: or there are other dynamics that get your attention. Brian. Yeah, 135 00:06:54,080 --> 00:06:56,120 Speaker 1: I think Tom, the numbers that you're quoting are kind 136 00:06:56,160 --> 00:06:58,880 Speaker 1: of don't include the tax cuss is as a trailing number. 137 00:06:58,920 --> 00:07:00,800 Speaker 1: You have to kind of look for word. Uh. You know, 138 00:07:00,839 --> 00:07:02,360 Speaker 1: I think the biggest thing that people are missing in 139 00:07:02,400 --> 00:07:05,839 Speaker 1: the marketplace is that, you know, markets maybe up thirteen 140 00:07:05,839 --> 00:07:07,760 Speaker 1: to fifteen percent this year, but earnings are gonna be 141 00:07:07,960 --> 00:07:12,800 Speaker 1: eight at best. That means the multiple is going to compress, 142 00:07:13,080 --> 00:07:15,720 Speaker 1: and so you're gonna see things like industrials lead because 143 00:07:15,720 --> 00:07:18,000 Speaker 1: we're starting to spend again. You're gonna see select tech 144 00:07:18,080 --> 00:07:21,239 Speaker 1: stocks start to come off these lows as people start 145 00:07:21,240 --> 00:07:23,120 Speaker 1: to have a little bit more common sense than just 146 00:07:23,520 --> 00:07:25,560 Speaker 1: firing ready on the tech side of things, and think 147 00:07:25,600 --> 00:07:29,800 Speaker 1: materials especially some of the metals are are are going 148 00:07:29,880 --> 00:07:32,600 Speaker 1: to do very well as we start to spend a 149 00:07:32,600 --> 00:07:34,920 Speaker 1: little bit And so I think that's where we're going 150 00:07:34,960 --> 00:07:37,280 Speaker 1: to see the strongest growth for the next three to 151 00:07:38,000 --> 00:07:41,080 Speaker 1: eight quarters. And and and and Frankly, I just don't 152 00:07:41,080 --> 00:07:43,480 Speaker 1: think people know how to buy value stocks and buy 153 00:07:43,920 --> 00:07:47,800 Speaker 1: garpie high quality names anymore. The world, according to gar 154 00:07:47,960 --> 00:07:51,120 Speaker 1: Brian Belski, thank you so much. Bemon Capital Markets with 155 00:07:51,200 --> 00:08:10,440 Speaker 1: some optimism this morning, John Farrow and Tom k Mr Corbett. 156 00:08:10,560 --> 00:08:15,360 Speaker 1: John says our first quarter results demonstrate strength in balance 157 00:08:15,440 --> 00:08:18,560 Speaker 1: across our franchise. I guess it's a little different report 158 00:08:18,960 --> 00:08:21,520 Speaker 1: than JP Morgan. Yeah, Unlike JP Morgan, it's a be 159 00:08:21,880 --> 00:08:24,560 Speaker 1: a miss on fixed income revenue for the first quarter. 160 00:08:24,600 --> 00:08:26,800 Speaker 1: It comes in at three point four two billion dollars 161 00:08:26,800 --> 00:08:30,760 Speaker 1: the estimate three point seven on a EPs basis, Earnings 162 00:08:30,840 --> 00:08:33,360 Speaker 1: per share for the first quarter one sixty eight the 163 00:08:33,440 --> 00:08:36,400 Speaker 1: estimate one sixty one, So that's a beat on EPs. 164 00:08:36,480 --> 00:08:39,280 Speaker 1: It's a miss on fixed income revenue. Tom and in 165 00:08:39,320 --> 00:08:40,920 Speaker 1: the pre market just to get you up to spin 166 00:08:40,960 --> 00:08:43,040 Speaker 1: on what the price action looks like. We stay positive 167 00:08:43,240 --> 00:08:47,079 Speaker 1: by one point three single digit, you're over your growth. 168 00:08:47,120 --> 00:08:49,400 Speaker 1: There's always a lot of noise in there is these 169 00:08:49,480 --> 00:08:52,320 Speaker 1: numbers come out. I want to be very careful about, 170 00:08:52,400 --> 00:08:54,960 Speaker 1: you know, any you know ideas. See I see loans. 171 00:08:55,000 --> 00:08:57,440 Speaker 1: I got a seven percent statistic there. We'll have to 172 00:08:57,440 --> 00:09:00,120 Speaker 1: see more in that, but you've gotta be careful. Are 173 00:09:00,160 --> 00:09:04,120 Speaker 1: tangible book value per share uh seven percent lower than 174 00:09:04,160 --> 00:09:07,480 Speaker 1: it was a bit of up only one percent where 175 00:09:07,559 --> 00:09:11,440 Speaker 1: JP Morgan was up four is percent as well. I 176 00:09:11,520 --> 00:09:14,160 Speaker 1: believe Wells Fargo is coming up. Oh, thank you, John, 177 00:09:14,320 --> 00:09:21,199 Speaker 1: Thank you John. You want to well go ahead, John 178 00:09:21,280 --> 00:09:24,840 Speaker 1: for um. The first quarter provision for credit loss is 179 00:09:24,840 --> 00:09:27,840 Speaker 1: one hundred and ninety one million dollars. The estimate seven 180 00:09:27,960 --> 00:09:31,400 Speaker 1: hundred and twenty nine point four million. In terms of 181 00:09:31,520 --> 00:09:36,080 Speaker 1: loans nine hundred and fifty one billion versus an estimate 182 00:09:36,120 --> 00:09:39,360 Speaker 1: of nine hundred and fifty six point seven seven quarter. 183 00:09:40,120 --> 00:09:42,960 Speaker 1: It's a Wells Fargo different than it was a scandal 184 00:09:43,080 --> 00:09:46,160 Speaker 1: or two ago. Return an equity twelve point twelve point 185 00:09:46,200 --> 00:09:49,320 Speaker 1: four percent is different. Collin saying Wells Fargo lifts a 186 00:09:49,360 --> 00:09:53,040 Speaker 1: little bit here Uh in in UH the business. But 187 00:09:53,080 --> 00:09:55,199 Speaker 1: these are all very different banks. John, we gotta remember 188 00:09:55,240 --> 00:09:58,480 Speaker 1: for our global audience particularly, they're not all the same, 189 00:09:58,840 --> 00:10:03,120 Speaker 1: and it's very unfair to bundle them all let together. 190 00:10:17,280 --> 00:10:20,040 Speaker 1: He is at the College of Tufts University, and that 191 00:10:20,040 --> 00:10:23,440 Speaker 1: would be James Stravitas, who once took a boat out 192 00:10:23,440 --> 00:10:27,360 Speaker 1: of a harbor in San Diego for Points West. In 193 00:10:27,440 --> 00:10:31,800 Speaker 1: your book, Admiral Uh, your book Oceans, you talk about 194 00:10:31,840 --> 00:10:34,400 Speaker 1: the first time you went to see. There's a kid 195 00:10:34,440 --> 00:10:37,640 Speaker 1: on a boat in the Mediterranean right now. Maybe it's 196 00:10:37,679 --> 00:10:39,680 Speaker 1: not his first time at sea, but it's first time 197 00:10:39,679 --> 00:10:43,200 Speaker 1: in harm's way. What does sailors do on boats waiting 198 00:10:43,240 --> 00:10:48,680 Speaker 1: in the Mediterranean? They watched CNN these days. Back when 199 00:10:48,720 --> 00:10:52,680 Speaker 1: I took ships to see a decade ago, we were 200 00:10:52,760 --> 00:10:57,120 Speaker 1: not quite so electronically connected. But right now, Tom there, 201 00:10:57,760 --> 00:11:00,800 Speaker 1: they've got satellite radio, they've got CNN probably listening to 202 00:11:00,920 --> 00:11:05,240 Speaker 1: us right now, and they're quite fixated on their mission. 203 00:11:05,679 --> 00:11:10,559 Speaker 1: They have Tomahawk targets loaded up into the combat system 204 00:11:10,600 --> 00:11:12,960 Speaker 1: and they're ready to go, and they stay focused. And 205 00:11:13,080 --> 00:11:15,840 Speaker 1: just like the markets need to weed out the noise, 206 00:11:15,960 --> 00:11:18,240 Speaker 1: our sailors and our soldiers need to weed out the 207 00:11:18,280 --> 00:11:20,920 Speaker 1: noise to and they will is the relationship of the 208 00:11:21,000 --> 00:11:24,560 Speaker 1: Joint chiefs of Staff, the relationship of Admiral Richardson, the 209 00:11:24,640 --> 00:11:29,199 Speaker 1: relationship of General Baddess normal given these events with this 210 00:11:29,280 --> 00:11:35,680 Speaker 1: White House in today's world, as a senior military you 211 00:11:35,760 --> 00:11:38,480 Speaker 1: have a big challenge, frankly, with this White House, and 212 00:11:38,480 --> 00:11:41,320 Speaker 1: that is that you lead an organization that has found 213 00:11:41,320 --> 00:11:45,280 Speaker 1: to gone courage, honor, commitment, and truthfulness. The commander in 214 00:11:45,360 --> 00:11:49,480 Speaker 1: chief of that organization is not demonstrating those qualities. So 215 00:11:49,559 --> 00:11:52,640 Speaker 1: as a senior military leader, you have to turn to 216 00:11:52,720 --> 00:11:55,720 Speaker 1: your subordinates, to all those soldiers and sailors and airmen 217 00:11:55,760 --> 00:11:59,200 Speaker 1: and marines, and tell them filter it out. We have 218 00:11:59,280 --> 00:12:01,679 Speaker 1: a mission to do. We swear an oath of allegiance 219 00:12:01,840 --> 00:12:05,800 Speaker 1: not to the President but the Constitution of the United States. 220 00:12:05,800 --> 00:12:10,000 Speaker 1: So a lot of leadership going on by our senior 221 00:12:10,040 --> 00:12:13,560 Speaker 1: military right now. One of my exercises, Admiral, to begin 222 00:12:13,640 --> 00:12:16,280 Speaker 1: to even understand the pressures you've been under at sea, 223 00:12:16,880 --> 00:12:20,600 Speaker 1: was to read of Her Majesty's ship the Sheffield of 224 00:12:20,640 --> 00:12:23,760 Speaker 1: another time in place. If they put a missile up 225 00:12:23,800 --> 00:12:28,400 Speaker 1: in the air to defend Russian assets, how does our military, 226 00:12:28,480 --> 00:12:33,120 Speaker 1: how does our Navy defend these ships. We've come a 227 00:12:33,120 --> 00:12:36,199 Speaker 1: long way since the Falklands War, which you just alluded to, 228 00:12:36,040 --> 00:12:39,320 Speaker 1: tom where the Her Majesty's ship Sheffield was sunk by 229 00:12:39,320 --> 00:12:43,560 Speaker 1: an Exercet missile fired by the Argentinians. We have highly 230 00:12:43,600 --> 00:12:47,000 Speaker 1: advanced air defense system, so we cannot only launch those 231 00:12:47,040 --> 00:12:52,000 Speaker 1: Tomahawk missiles offensively into Syria. Those destroyers are very capable 232 00:12:52,000 --> 00:12:56,560 Speaker 1: of defending themselves in a heavy attack environment where we're 233 00:12:56,559 --> 00:12:59,160 Speaker 1: ready to go if need be. Admiral Jonathan Hedge just 234 00:12:59,200 --> 00:13:01,120 Speaker 1: told me about how cold it is to sort of 235 00:13:01,120 --> 00:13:03,920 Speaker 1: come up with a military response to what's happening in 236 00:13:04,000 --> 00:13:06,520 Speaker 1: Syria when you have a Russian air force that you 237 00:13:06,600 --> 00:13:09,520 Speaker 1: have Runians on the ground as well. It's incredibly complex. 238 00:13:09,559 --> 00:13:11,600 Speaker 1: How do you come to a decision why you can 239 00:13:11,679 --> 00:13:15,240 Speaker 1: have the most impact, the most credible response, but at 240 00:13:15,240 --> 00:13:20,160 Speaker 1: the same time avoiding a mistake of hitting Russia. Three things, Jonathan. 241 00:13:20,360 --> 00:13:24,000 Speaker 1: First is um you have to go after targets that 242 00:13:24,040 --> 00:13:27,559 Speaker 1: are legitimate under international law, So that means targets that 243 00:13:27,600 --> 00:13:32,280 Speaker 1: are associated with the kill chain of the chemical weapons, 244 00:13:32,320 --> 00:13:37,400 Speaker 1: that's production, transportation, command and control. Uh, those are the 245 00:13:37,440 --> 00:13:40,880 Speaker 1: targets you can go after. Secondly, you have to massively 246 00:13:40,960 --> 00:13:44,680 Speaker 1: put all your intelligence assets, satellites, drones, people on the 247 00:13:44,720 --> 00:13:48,840 Speaker 1: ground to help you parse those targets. And then thirdly 248 00:13:48,880 --> 00:13:51,400 Speaker 1: you need to use very smart weapons. Then we have 249 00:13:51,559 --> 00:13:54,400 Speaker 1: those to reduce collateral damage. Above all, we do not 250 00:13:54,600 --> 00:13:57,000 Speaker 1: want to kill a bunch of Russians here, We want 251 00:13:57,040 --> 00:14:01,240 Speaker 1: to take out Syrian chemical weapons. Admirable, fantastic inside Admiral 252 00:14:01,360 --> 00:14:05,160 Speaker 1: James Travitas, the Dean of the Fletcher School at Tufts University, 253 00:14:05,240 --> 00:14:07,160 Speaker 1: giving us some of his time tom on on a 254 00:14:07,240 --> 00:14:10,320 Speaker 1: really significant story of the last week and for that matter, 255 00:14:10,360 --> 00:14:25,600 Speaker 1: the last couple of years. Stan Calendar with us and 256 00:14:25,680 --> 00:14:28,320 Speaker 1: stand I want to bring John Ferroll right into this discussion. 257 00:14:28,840 --> 00:14:31,320 Speaker 1: Stan Colendar, of course doing so much good work for 258 00:14:31,440 --> 00:14:36,720 Speaker 1: us on our for school UH posture April two thousand nine. 259 00:14:36,800 --> 00:14:41,520 Speaker 1: Stand Calendar David Cameron stood up and said, the age 260 00:14:41,520 --> 00:14:45,440 Speaker 1: of irresponsibility is giving way to the age of austerity. 261 00:14:46,000 --> 00:14:50,840 Speaker 1: How far is the United States from an age of austerity? Well? 262 00:14:50,960 --> 00:14:53,520 Speaker 1: Would you would you believe the mirror image or or 263 00:14:53,600 --> 00:14:55,600 Speaker 1: that the age of austerity has been taken over by 264 00:14:55,640 --> 00:14:59,320 Speaker 1: the age of overwhelming deficits? Uh, it's it's we are 265 00:14:59,680 --> 00:15:02,720 Speaker 1: not on you. We're not anywhere close to austerity. We're 266 00:15:02,720 --> 00:15:05,240 Speaker 1: going in the opposite direction. Tom. According to the new 267 00:15:05,320 --> 00:15:07,720 Speaker 1: CBO report that came out this week, deficits under the 268 00:15:07,760 --> 00:15:10,840 Speaker 1: best of circumstances will will be a trillion dollars a 269 00:15:10,920 --> 00:15:13,520 Speaker 1: year every year through the Trump administration and keep rising. 270 00:15:13,560 --> 00:15:16,280 Speaker 1: And if the economy turns down, we're talking about two 271 00:15:16,320 --> 00:15:19,200 Speaker 1: trillion dollar deficits. So austerity, but that's not even a word. 272 00:15:19,240 --> 00:15:24,240 Speaker 1: It's operable, John, Austerity in England means something different than here. 273 00:15:24,280 --> 00:15:28,840 Speaker 1: I guess there's all sorts of philosophy and culture involved here. 274 00:15:29,920 --> 00:15:33,200 Speaker 1: It's sting, colandar. How did we get here? I mean, 275 00:15:33,240 --> 00:15:38,640 Speaker 1: you're the budget guy philosophically, how did the nation get here? Well, 276 00:15:39,000 --> 00:15:42,400 Speaker 1: it was we were saying one thing and doing another. 277 00:15:42,520 --> 00:15:45,080 Speaker 1: That is, you had Republicans who were demanding austerity and 278 00:15:45,480 --> 00:15:49,200 Speaker 1: deficit reductions during the Obama administration, and as soon as 279 00:15:49,280 --> 00:15:52,080 Speaker 1: it was a Republican majority in both houses and a 280 00:15:52,120 --> 00:15:54,400 Speaker 1: Republican White House, they went in the opposite direction with 281 00:15:54,520 --> 00:15:57,600 Speaker 1: a one point five to two trillion dollar tax cut, 282 00:15:58,120 --> 00:16:00,400 Speaker 1: and uh, you know, and and another a hundred and 283 00:16:01,080 --> 00:16:03,800 Speaker 1: fifty billion dollar increase in spending and permitted increase in 284 00:16:03,840 --> 00:16:07,320 Speaker 1: spending so Um, it's hard to say that there was 285 00:16:07,360 --> 00:16:10,080 Speaker 1: any real appetite from the beginning. That it was all subterfuge, 286 00:16:10,400 --> 00:16:13,880 Speaker 1: you know, misdirection whatever. So Stan, this is what we have. Now, 287 00:16:13,920 --> 00:16:16,160 Speaker 1: let's just ask the basic question as to whether it matters. 288 00:16:16,200 --> 00:16:19,240 Speaker 1: Does it matter? Well, you've got to believe at some 289 00:16:19,280 --> 00:16:21,800 Speaker 1: point it does, Jonathan, Now it did. Let me be honest, 290 00:16:22,120 --> 00:16:25,120 Speaker 1: We've never been here before. And it's possible that everything 291 00:16:25,160 --> 00:16:27,560 Speaker 1: we've always thought about deficits being too high for too 292 00:16:27,560 --> 00:16:30,120 Speaker 1: long a period, the government borrowing too much money, etcetera, 293 00:16:30,560 --> 00:16:33,240 Speaker 1: everything could be wrong or that we you know, but 294 00:16:33,400 --> 00:16:36,240 Speaker 1: we don't know. There's gotta big just stand stop, there's 295 00:16:36,240 --> 00:16:40,080 Speaker 1: gotta be a price. What's the price to what we're 296 00:16:40,080 --> 00:16:41,640 Speaker 1: doing right now? Well, hang on a minute, Tom, I 297 00:16:41,680 --> 00:16:43,920 Speaker 1: mean look at Japan for instance, Japan has a much 298 00:16:44,040 --> 00:16:49,400 Speaker 1: much worse debt backdrop than the United States. Project Okay, stand, 299 00:16:49,400 --> 00:16:52,440 Speaker 1: look at the price. Okay, But Stan isn't culturally the 300 00:16:52,480 --> 00:16:57,160 Speaker 1: savings ethos of Japan. What saved him? Oh? Absolutely? Um 301 00:16:57,240 --> 00:17:01,680 Speaker 1: And and Jonathan, in terms of prices that we might 302 00:17:01,720 --> 00:17:03,920 Speaker 1: have to pay, you've got to believe that interest rates 303 00:17:03,960 --> 00:17:05,840 Speaker 1: are going to be higher than they would otherwise be 304 00:17:06,720 --> 00:17:08,440 Speaker 1: or have been who had it not been for these 305 00:17:08,520 --> 00:17:12,680 Speaker 1: these now continue will run up and deficits um for Furthermore, 306 00:17:12,840 --> 00:17:16,040 Speaker 1: when we do get into an economic crisis situation, when 307 00:17:16,080 --> 00:17:18,960 Speaker 1: it requires some sort of stimulus, we're talking about deficits 308 00:17:19,000 --> 00:17:22,359 Speaker 1: that may be either politically untenable or beyond the realm 309 00:17:22,400 --> 00:17:24,679 Speaker 1: of what what the market will accept. I mean, we 310 00:17:24,720 --> 00:17:27,280 Speaker 1: could be taking, you know, and I'm not sure we 311 00:17:27,320 --> 00:17:29,840 Speaker 1: want to wait until that particular moment to find out 312 00:17:29,840 --> 00:17:31,800 Speaker 1: that these deficits are not the way you wanted to go. 313 00:17:31,880 --> 00:17:33,479 Speaker 1: Let's be clear. The reason I ask, and we're all 314 00:17:33,520 --> 00:17:36,720 Speaker 1: fiscal conservatives, most of our listeners of fiscal conservatives. I'm 315 00:17:36,760 --> 00:17:38,800 Speaker 1: just asking, Tom, because we've been talking about this in 316 00:17:38,880 --> 00:17:41,439 Speaker 1: Japan for so so long, and in Japan it just 317 00:17:41,560 --> 00:17:44,440 Speaker 1: hasn't mattered yet. It hasn't mattered in the material way. 318 00:17:44,720 --> 00:17:47,840 Speaker 1: The only time this has mattered the death story and 319 00:17:47,880 --> 00:17:51,240 Speaker 1: developed economies was after the financial crisis, and it was 320 00:17:51,240 --> 00:17:54,120 Speaker 1: in Europe, and it was because the ECB was completely 321 00:17:54,160 --> 00:17:58,439 Speaker 1: unable to respond. Tom, I want to be sure we 322 00:17:58,480 --> 00:18:01,320 Speaker 1: get this in park Crewman to with what I'll call 323 00:18:01,440 --> 00:18:06,160 Speaker 1: a very good essay, but a brilliant paragraph for all 324 00:18:06,200 --> 00:18:09,520 Speaker 1: Americans that we deserved to have Stan Collender comment on 325 00:18:09,600 --> 00:18:11,960 Speaker 1: this one sentence. I put this out on Twitter earlier. Folks, 326 00:18:12,040 --> 00:18:17,040 Speaker 1: let me quote uh Krugman. The laureate centrists who couldn't 327 00:18:17,080 --> 00:18:22,480 Speaker 1: find real examples of serious, honest conservatives lavished praise on 328 00:18:22,640 --> 00:18:27,840 Speaker 1: politicians who played that role on TV. Paul Ryan wasn't 329 00:18:27,880 --> 00:18:32,880 Speaker 1: actually very good at faking it. True fiscal experts ridiculed 330 00:18:33,040 --> 00:18:38,520 Speaker 1: his mystery meat budgets. Did you ridicule Paul Ryan's budgets? Mr? Callendar, 331 00:18:38,920 --> 00:18:43,160 Speaker 1: Oh no, absolutely. His His reputation as a policy wank 332 00:18:43,320 --> 00:18:45,680 Speaker 1: was probably not as deserved as he seek apt telling 333 00:18:45,720 --> 00:18:49,280 Speaker 1: people who was um and let's remember that he's going 334 00:18:49,359 --> 00:18:52,480 Speaker 1: to go down his last Paul Ryan's lasting legacy is 335 00:18:52,520 --> 00:18:56,080 Speaker 1: as the enabler of these trillion dollar deficits. Uh, the 336 00:18:56,080 --> 00:18:58,040 Speaker 1: person who said that he wanted it. He was he 337 00:18:58,119 --> 00:19:00,840 Speaker 1: was for fiscal responsibility. He wanted to eliminate the debt 338 00:19:00,840 --> 00:19:05,600 Speaker 1: and deficit. Um is presided over and allowed the legislation 339 00:19:05,640 --> 00:19:08,000 Speaker 1: to be considered that brought these deficits to the levels 340 00:19:08,000 --> 00:19:11,520 Speaker 1: we've never seen before. So Um, you can listen to 341 00:19:11,560 --> 00:19:13,119 Speaker 1: what he says, or you can actually look at the 342 00:19:13,160 --> 00:19:15,439 Speaker 1: facts and the facts are very, very different than what 343 00:19:15,480 --> 00:19:17,320 Speaker 1: he's telling people and what other people have been saying 344 00:19:17,320 --> 00:19:32,000 Speaker 1: about him. Sten calender with us on our fiscal policy. 345 00:19:34,840 --> 00:19:39,000 Speaker 1: It was a huge, huge upset from the seventh District 346 00:19:39,080 --> 00:19:42,880 Speaker 1: in Virginia. I spoke to UH former majority leader Eric 347 00:19:42,920 --> 00:19:46,680 Speaker 1: Canter and Davos and he was trounced by the gentleman 348 00:19:46,800 --> 00:19:52,040 Speaker 1: from Hope College, Kalamazoo, Michigan, and also from Princeton Theological Seminary, 349 00:19:52,520 --> 00:19:56,800 Speaker 1: Professor Bratt. Now the congressman from the Richmond District cons 350 00:19:56,960 --> 00:20:00,359 Speaker 1: and wonderful to speak to you this morning. Very thanks 351 00:20:00,359 --> 00:20:02,800 Speaker 1: for having me on. I look at the presidential tweets, 352 00:20:02,800 --> 00:20:05,040 Speaker 1: I look at the emotion. I want to know from 353 00:20:05,119 --> 00:20:09,880 Speaker 1: you where a more conservative, centrist Republican party is this 354 00:20:09,960 --> 00:20:13,520 Speaker 1: morning in Washington. You're not a slime ball. I assume 355 00:20:13,600 --> 00:20:17,119 Speaker 1: out of Princeton Theological Seminary you would not use that 356 00:20:17,240 --> 00:20:20,720 Speaker 1: kind of language in public discourse. What does the centrist 357 00:20:20,840 --> 00:20:27,000 Speaker 1: conservative Republican do with your president? Yeah? No, I think 358 00:20:27,040 --> 00:20:29,480 Speaker 1: that's right. We all got to ratchet down the language 359 00:20:29,520 --> 00:20:33,720 Speaker 1: and just focus on rational policy and the centrist part. 360 00:20:34,119 --> 00:20:36,840 Speaker 1: Everybody kind of wishes for that. But if you just 361 00:20:36,880 --> 00:20:39,919 Speaker 1: look at the Omnibus bill. I always ask people what 362 00:20:39,960 --> 00:20:42,320 Speaker 1: does it mean to be in the center. The Republicans 363 00:20:42,400 --> 00:20:45,400 Speaker 1: wanted a trillion dollar deficit, the Democrats wanted at one 364 00:20:45,440 --> 00:20:49,600 Speaker 1: point three trillion dollar deficit, and so the center or 365 00:20:49,640 --> 00:20:52,000 Speaker 1: the compromises in the middle of those two. And that's 366 00:20:52,000 --> 00:20:55,080 Speaker 1: a disaster as well. And so it we have a 367 00:20:55,119 --> 00:20:58,240 Speaker 1: problem up here in the swamp. I always refer back to, 368 00:20:58,280 --> 00:21:01,720 Speaker 1: you know, Adam Smith, the founder free economics and James Madison, 369 00:21:01,760 --> 00:21:04,520 Speaker 1: the author of the Constitution. We gotta do what's right, 370 00:21:05,200 --> 00:21:07,520 Speaker 1: and what's right is we can't continue to throw the 371 00:21:07,600 --> 00:21:11,680 Speaker 1: kids under the bus with trillion dollars in debt. It's 372 00:21:12,040 --> 00:21:16,119 Speaker 1: intergenerational theft. And I would mentioned you that Congresson Brad 373 00:21:16,160 --> 00:21:19,960 Speaker 1: has the statue of Thomas Jefferson located in the Jefferson Hotel. 374 00:21:21,680 --> 00:21:24,800 Speaker 1: It is not the swamp, a congressman. I'm gonna if 375 00:21:24,800 --> 00:21:27,000 Speaker 1: I get you your thoughts on I'm sure you've been 376 00:21:27,040 --> 00:21:31,560 Speaker 1: following the demonstrations around the country. For for example, in Arizona, 377 00:21:31,640 --> 00:21:35,000 Speaker 1: teachers coming out and saying that the amount of money 378 00:21:35,000 --> 00:21:38,199 Speaker 1: that is being spent on education is not commensurate with 379 00:21:38,240 --> 00:21:41,120 Speaker 1: the need. And there's even talked that this may be 380 00:21:41,240 --> 00:21:44,800 Speaker 1: a big political issue for Republicans in the midterm elections. 381 00:21:44,800 --> 00:21:49,520 Speaker 1: Wonder if you could speak to that topic. Yeah, well, education, 382 00:21:49,560 --> 00:21:52,240 Speaker 1: I think we need to start from ground zero. I mean, 383 00:21:52,440 --> 00:21:55,199 Speaker 1: if you talk to the administrators, the teachers, parents are 384 00:21:55,200 --> 00:21:58,119 Speaker 1: the kids. No one likes this regiment of teaching to 385 00:21:58,160 --> 00:22:00,800 Speaker 1: the tasks and just running things as usual. Walk. So 386 00:22:00,920 --> 00:22:04,120 Speaker 1: maybe they're they're talking about what they actually excuse me, Congressman, 387 00:22:04,160 --> 00:22:06,000 Speaker 1: what they're talking about is that the teachers are not 388 00:22:06,040 --> 00:22:09,600 Speaker 1: getting paid enough to do the job that they do currently. Yep, 389 00:22:09,920 --> 00:22:13,000 Speaker 1: That's where I was doing. And so if you realign 390 00:22:13,240 --> 00:22:16,040 Speaker 1: the incentives and we start teaching kids about business and 391 00:22:16,080 --> 00:22:19,159 Speaker 1: careers and vocations, that you can spend more pay on 392 00:22:19,400 --> 00:22:22,919 Speaker 1: teacher pay and less on all the administrative stuff. The 393 00:22:22,920 --> 00:22:26,040 Speaker 1: schools are doing everything except teaching kids what a businesses. 394 00:22:26,440 --> 00:22:29,520 Speaker 1: I taught college economics for twenty years, and the kids 395 00:22:29,560 --> 00:22:31,920 Speaker 1: come out of high school not knowing what a businesses. 396 00:22:31,960 --> 00:22:34,600 Speaker 1: They don't know a price, a cost, or profit or anything. Right, 397 00:22:34,960 --> 00:22:37,560 Speaker 1: So maybe we need a total realignment of teachers who 398 00:22:37,640 --> 00:22:40,960 Speaker 1: can get at preparing kids for a future where they 399 00:22:40,960 --> 00:22:42,679 Speaker 1: can get a job. Half the kids won't go to 400 00:22:42,760 --> 00:22:45,199 Speaker 1: college and they don't know what a business is when 401 00:22:45,200 --> 00:22:47,880 Speaker 1: they're done with high school. Okay, but but Congressman, respect, 402 00:22:48,080 --> 00:22:52,400 Speaker 1: But with respect, Congressman, the issue seems to be that 403 00:22:52,640 --> 00:22:56,960 Speaker 1: tax cuts in many of these very states have led 404 00:22:57,080 --> 00:23:01,400 Speaker 1: to a decrease in funding for education, and that the 405 00:23:01,480 --> 00:23:06,160 Speaker 1: reason that you're seeing these widespread demonstrations and teacher walkouts 406 00:23:06,200 --> 00:23:11,040 Speaker 1: supported by parents is they want the local and state 407 00:23:11,200 --> 00:23:17,200 Speaker 1: governments to spend more money on education and rather than 408 00:23:17,280 --> 00:23:21,520 Speaker 1: focused on tax cuts or on as you describe, growing businesses, 409 00:23:21,920 --> 00:23:24,159 Speaker 1: they'd rather have the money spent on that than on 410 00:23:24,200 --> 00:23:28,600 Speaker 1: other things. What what is your reaction to that? Yeah, well, 411 00:23:28,600 --> 00:23:31,680 Speaker 1: the premise is not correct. The tax cuts have nothing 412 00:23:31,720 --> 00:23:34,680 Speaker 1: to do with spending The federal tax cuts have nothing 413 00:23:34,680 --> 00:23:37,480 Speaker 1: to do with spending on state local schools. That's the 414 00:23:37,480 --> 00:23:40,800 Speaker 1: budget to state local and the tax cuts have already 415 00:23:40,840 --> 00:23:44,080 Speaker 1: generated three percent wage growth and three percent economic growth, 416 00:23:44,440 --> 00:23:46,760 Speaker 1: and if you're growing at three percent GDP, that's enough 417 00:23:46,800 --> 00:23:48,960 Speaker 1: to pay for the tax cut. What they might be 418 00:23:49,040 --> 00:23:52,040 Speaker 1: upset with in the number that never gets discussed is 419 00:23:52,040 --> 00:23:54,000 Speaker 1: that we did a hundred fifty billion a year for 420 00:23:54,119 --> 00:23:56,840 Speaker 1: tax cuts, but to get nine Democrats senators at the 421 00:23:56,920 --> 00:23:58,520 Speaker 1: end of the year on the omnibus that cost US 422 00:23:58,560 --> 00:24:01,960 Speaker 1: four hundred billion dollars, never mentioned by the Democrats, never 423 00:24:02,000 --> 00:24:04,760 Speaker 1: mentioned by the press, and that's not being spent on 424 00:24:04,840 --> 00:24:07,560 Speaker 1: schools and skilling up the kids. And so the whole 425 00:24:07,600 --> 00:24:09,399 Speaker 1: premise is wrong. Right. So if you want to know 426 00:24:09,840 --> 00:24:12,320 Speaker 1: who wants big spending up here in in d C. 427 00:24:12,600 --> 00:24:15,679 Speaker 1: On everything except the kids, it's the Democrats. We just 428 00:24:15,720 --> 00:24:19,240 Speaker 1: had to plus up four billions, and then the Democrats proposed. 429 00:24:19,280 --> 00:24:22,399 Speaker 1: I was in with the head of economics for a 430 00:24:22,520 --> 00:24:25,000 Speaker 1: CBO yesterday and I asked the which is better for 431 00:24:25,040 --> 00:24:28,040 Speaker 1: the economy cutting taxes by two trillions or the Democrat 432 00:24:28,080 --> 00:24:31,200 Speaker 1: proposal of raising taxes by ten trillion. That's what they proposed, 433 00:24:31,200 --> 00:24:34,920 Speaker 1: a hundred seven votes for the Democrat progressive budget, and 434 00:24:34,960 --> 00:24:37,040 Speaker 1: that would have brought the economy to a stands built 435 00:24:37,040 --> 00:24:39,320 Speaker 1: then you'd have no money coming into the conference for 436 00:24:39,359 --> 00:24:43,360 Speaker 1: schools whatsoever. So I totally rejected the premise. And that's 437 00:24:43,359 --> 00:24:46,160 Speaker 1: why we got to get back to teaching economics because 438 00:24:46,160 --> 00:24:47,840 Speaker 1: the left is just making stuff up here. That's the 439 00:24:47,840 --> 00:24:51,080 Speaker 1: political But that thing you can do to JF kin 440 00:24:51,160 --> 00:24:52,720 Speaker 1: knew this. Do you want to and he said it 441 00:24:52,800 --> 00:24:55,760 Speaker 1: in quotes, you want to enhance revenues, cut taxes. That's 442 00:24:55,840 --> 00:24:59,680 Speaker 1: quote from jfk Okay. You've also been quoted as saying 443 00:24:59,720 --> 00:25:02,080 Speaker 1: that you've that you have just blown a big hole 444 00:25:02,119 --> 00:25:05,240 Speaker 1: in the budget and that you don't necessarily have a 445 00:25:05,280 --> 00:25:09,920 Speaker 1: good track record. What exactly do you feel you need 446 00:25:10,000 --> 00:25:13,400 Speaker 1: to do in order to get both Democrats and Republicans 447 00:25:13,440 --> 00:25:17,560 Speaker 1: on the same page so that this trillion plus deficit 448 00:25:17,640 --> 00:25:22,000 Speaker 1: doesn't come back and hit these students, these children that 449 00:25:22,040 --> 00:25:25,440 Speaker 1: are going to be adults in a couple of years. Yeah. No, 450 00:25:25,640 --> 00:25:29,000 Speaker 1: that's the tough part. You need to stop the growth 451 00:25:29,080 --> 00:25:31,719 Speaker 1: of the federal government. Right. The anxiety and the anger 452 00:25:31,800 --> 00:25:33,760 Speaker 1: level while there in the countries at all time high, 453 00:25:34,359 --> 00:25:37,640 Speaker 1: and it tracks when everybody's sending their special and first 454 00:25:37,680 --> 00:25:39,879 Speaker 1: colony lawyers of the PC to get their hands on 455 00:25:40,040 --> 00:25:42,760 Speaker 1: billions of dollars. The best way to solve that is 456 00:25:42,800 --> 00:25:45,320 Speaker 1: to bring power back down to the state and local 457 00:25:45,720 --> 00:25:48,720 Speaker 1: so we can properly fund education, for example, at the 458 00:25:48,720 --> 00:25:51,879 Speaker 1: state and local level. This has been as a heavy list, 459 00:25:51,920 --> 00:25:54,320 Speaker 1: but you're right. We we I am quoted. We did. 460 00:25:54,359 --> 00:25:57,159 Speaker 1: We blew the budget. We got trillion dollar deficits as 461 00:25:57,200 --> 00:25:59,159 Speaker 1: far as the eye can see, and we gotta fix that. 462 00:25:59,480 --> 00:26:05,600 Speaker 1: Democrat want to increase spending to decrease it. David Bratt 463 00:26:05,600 --> 00:26:08,200 Speaker 1: with us from Richmond in the seventh District of Virginia 464 00:26:08,359 --> 00:26:11,040 Speaker 1: to bring you up today. Congressman Mr Collander was with 465 00:26:11,160 --> 00:26:13,840 Speaker 1: us earlier today and said the goal is maybe to 466 00:26:13,920 --> 00:26:18,360 Speaker 1: get down to a trillion dollar deficit, which I found frightening. 467 00:26:18,640 --> 00:26:20,480 Speaker 1: David Brand the time that we got left with you, 468 00:26:20,560 --> 00:26:22,080 Speaker 1: I want to go back to your work at Hope 469 00:26:22,119 --> 00:26:25,439 Speaker 1: College and also at Princeton Theological really one of the 470 00:26:25,480 --> 00:26:29,960 Speaker 1: great foundations of the Presbyterian Church in America. I want 471 00:26:29,960 --> 00:26:32,840 Speaker 1: you to speak to our national audience right now of 472 00:26:32,920 --> 00:26:35,760 Speaker 1: one of the great mysteries of this era that we're 473 00:26:35,800 --> 00:26:43,119 Speaker 1: in away from the Presbyterian faith. How do evangelicals rationalize 474 00:26:43,160 --> 00:26:48,160 Speaker 1: supporting this president given so much of the uproar about 475 00:26:48,240 --> 00:26:51,480 Speaker 1: tangential items, the lowidness what we see just in the 476 00:26:51,560 --> 00:26:54,840 Speaker 1: last four eight hours, or for that matter, over any 477 00:26:54,920 --> 00:26:58,280 Speaker 1: number of weeks before the campaign, how does he garner 478 00:26:58,320 --> 00:27:05,040 Speaker 1: the support of the religious evangelicals. You are ting gentle too, Yeah, well, 479 00:27:05,080 --> 00:27:07,800 Speaker 1: I think there's a few issues. Number One, you guys 480 00:27:07,840 --> 00:27:10,879 Speaker 1: have my town halls on tape right there online. I 481 00:27:10,920 --> 00:27:13,600 Speaker 1: tried to have two town Halls. Seven activists on the 482 00:27:13,680 --> 00:27:15,280 Speaker 1: left showed up and I couldn't get a word in 483 00:27:15,440 --> 00:27:17,280 Speaker 1: edge y. So it's not like it's unique to one 484 00:27:17,280 --> 00:27:20,080 Speaker 1: party or the other. The whole the problem is we've 485 00:27:20,080 --> 00:27:22,080 Speaker 1: got to fix at all. And I am I'm right 486 00:27:22,119 --> 00:27:25,119 Speaker 1: with you on that. And so again, when kids are 487 00:27:25,160 --> 00:27:28,439 Speaker 1: done with CADA twelve education, we paid thirteen thousand dollars 488 00:27:28,480 --> 00:27:31,880 Speaker 1: for thirteen years, they don't know any religion, they don't 489 00:27:31,880 --> 00:27:35,320 Speaker 1: know any system of ethics, they don't know any philosophy. 490 00:27:35,440 --> 00:27:38,159 Speaker 1: And that's our culture right now, right, And so if 491 00:27:38,160 --> 00:27:40,040 Speaker 1: you stay to your friends on the left, look, you 492 00:27:40,040 --> 00:27:43,240 Speaker 1: don't have to teach the Judeo Christian tradition or any 493 00:27:43,240 --> 00:27:47,480 Speaker 1: particular religion. Right, our our tradition. James Madison and Jefferson 494 00:27:47,560 --> 00:27:50,960 Speaker 1: came up with the Statutes on Religious Toleration, So you 495 00:27:51,040 --> 00:27:54,600 Speaker 1: don't force your faith on other people. That's our fabric. 496 00:27:55,119 --> 00:27:57,720 Speaker 1: But you got to teach some ethics at a minimum, right, 497 00:27:57,800 --> 00:28:01,880 Speaker 1: I mean Aristotle, kant Any. Given what all of us 498 00:28:01,920 --> 00:28:06,720 Speaker 1: whatever are politics, and we're buffeted day after day, week 499 00:28:06,840 --> 00:28:11,520 Speaker 1: after week by behavior of a president whatever anybody thought 500 00:28:11,600 --> 00:28:16,679 Speaker 1: is on politics, how does he keep that bedrock? Evangelical 501 00:28:16,880 --> 00:28:21,960 Speaker 1: religious vote. Well, I think what I just said. I mean, 502 00:28:22,200 --> 00:28:27,480 Speaker 1: a lot of the evangelical community is concerned with religious freedom, right, 503 00:28:27,560 --> 00:28:31,000 Speaker 1: and so over the past eight years, conservative groups were 504 00:28:31,040 --> 00:28:33,640 Speaker 1: targeted by the I R S, by the Justice Department, 505 00:28:33,640 --> 00:28:37,320 Speaker 1: et cetera. And so when you're under that degree of attack, 506 00:28:37,520 --> 00:28:40,360 Speaker 1: now at least we are freedom of speech back, hopefully protected, 507 00:28:40,520 --> 00:28:42,880 Speaker 1: you know, for the next several years. But the left 508 00:28:42,880 --> 00:28:45,960 Speaker 1: on college campuses and whatever is stifling speech all over 509 00:28:45,960 --> 00:28:48,680 Speaker 1: the place. I mean, it's documented every night, and so 510 00:28:49,000 --> 00:28:51,240 Speaker 1: this is unfortunate. Right, I don't agree when the president 511 00:28:51,600 --> 00:28:54,040 Speaker 1: he goes off on bowel language and all that kind 512 00:28:54,040 --> 00:28:57,080 Speaker 1: of thing. I make it very clear I stand by 513 00:28:57,080 --> 00:29:00,600 Speaker 1: the Judeo Christian epics, and I expect everyone to live 514 00:29:00,680 --> 00:29:03,880 Speaker 1: up to that town standard for anyone that's followed. It 515 00:29:04,000 --> 00:29:06,160 Speaker 1: comes up short. Coon, we're out of time. Thank you 516 00:29:06,240 --> 00:29:09,320 Speaker 1: so much from the seventh District, think Richmond in Virginia. 517 00:29:09,480 --> 00:29:19,880 Speaker 1: David Right, thanks for listening to the Bloomberg Surveillance podcast. 518 00:29:20,240 --> 00:29:25,200 Speaker 1: Subscribe and listen to interviews on Apple Podcasts, SoundCloud, or 519 00:29:25,360 --> 00:29:29,680 Speaker 1: whichever podcast platform you prefer. I'm on Twitter at Tom 520 00:29:29,760 --> 00:29:33,640 Speaker 1: Keane before the podcast. You can always catch us worldwide 521 00:29:34,080 --> 00:29:35,160 Speaker 1: I'm Bloomberg Radio