1 00:00:02,520 --> 00:00:04,880 Speaker 1: Bloomberg Audio Studios. 2 00:00:04,720 --> 00:00:11,280 Speaker 2: Podcasts, radio news. You're listening to the Bloomberg Balance of 3 00:00:11,320 --> 00:00:15,080 Speaker 2: Power podcast ketchas live weekdays at noon and five pm 4 00:00:15,120 --> 00:00:18,400 Speaker 2: Eastern on Apple Cocklay and Android Auto with the Bloomberg 5 00:00:18,440 --> 00:00:21,599 Speaker 2: Business App. Listen on demand wherever you get your podcasts, 6 00:00:21,960 --> 00:00:24,400 Speaker 2: or watch us live on YouTube. 7 00:00:25,280 --> 00:00:27,080 Speaker 3: Keeping an eye closely on the bond market as well, 8 00:00:27,120 --> 00:00:29,280 Speaker 3: as we've seen a series of week auctions two year 9 00:00:29,320 --> 00:00:31,760 Speaker 3: notes than five year notes over the course of Tuesday 10 00:00:31,760 --> 00:00:33,760 Speaker 3: and Wednesday, and now today Thursday, we just saw a 11 00:00:33,800 --> 00:00:36,120 Speaker 3: week seven year note auction as well, drawing four point 12 00:00:36,120 --> 00:00:38,160 Speaker 3: two five to five percent compared to the four point 13 00:00:38,520 --> 00:00:43,920 Speaker 3: two four seven percent yield pre sale. So that's something 14 00:00:43,960 --> 00:00:45,640 Speaker 3: to keep an eye on, as well as the appetite 15 00:00:45,640 --> 00:00:47,400 Speaker 3: for US government debt at a time when there are 16 00:00:47,440 --> 00:00:50,720 Speaker 3: real concerns out there, of course, about potential inflationary risk 17 00:00:50,760 --> 00:00:52,600 Speaker 3: stemming from the conflict in the Middle East, and while 18 00:00:52,600 --> 00:00:55,120 Speaker 3: the President did try to downplay that today, as did 19 00:00:55,120 --> 00:00:58,680 Speaker 3: the Treasury Secretary Scott Besant in a televised cabinet meeting, 20 00:00:58,680 --> 00:01:00,560 Speaker 3: the idea that the US does not need the straight 21 00:01:00,560 --> 00:01:03,160 Speaker 3: of four moves, that energy prices will be going lower soon, 22 00:01:03,240 --> 00:01:06,800 Speaker 3: depending of course, on what happens I suppose in the 23 00:01:06,840 --> 00:01:09,039 Speaker 3: Strait and who all is going to get involved in 24 00:01:09,080 --> 00:01:10,839 Speaker 3: it is The President, of course, is called on Gulf 25 00:01:10,880 --> 00:01:13,959 Speaker 3: allies as well as NATO allies to help secure that 26 00:01:14,040 --> 00:01:16,959 Speaker 3: vital waterway, and he spoke of those NATO allies in 27 00:01:17,000 --> 00:01:17,360 Speaker 3: the meeting. 28 00:01:17,400 --> 00:01:17,959 Speaker 1: Take a listen. 29 00:01:18,760 --> 00:01:19,119 Speaker 4: One thing. 30 00:01:19,160 --> 00:01:20,160 Speaker 1: We're very disappointed. 31 00:01:20,160 --> 00:01:21,040 Speaker 5: I'll say it publicly. 32 00:01:21,080 --> 00:01:25,720 Speaker 6: We're very disappointed with NATO because NATO has done absolutely nothing. 33 00:01:26,680 --> 00:01:28,880 Speaker 6: And I've always said twenty five years ago, I mean 34 00:01:28,920 --> 00:01:31,760 Speaker 6: I was somebody that wasn't a politician, but I was 35 00:01:31,800 --> 00:01:35,720 Speaker 6: always involved in politics and I understood politics. I said 36 00:01:35,720 --> 00:01:38,440 Speaker 6: twenty five years ago that NATO's a paper tiger, but 37 00:01:39,440 --> 00:01:42,240 Speaker 6: more importantly that we'll come to their rescue, but they 38 00:01:42,280 --> 00:01:43,520 Speaker 6: will never come to ours. 39 00:01:45,160 --> 00:01:47,920 Speaker 7: So just imagine the conversation at the G seven meeting 40 00:01:47,960 --> 00:01:50,280 Speaker 7: that is getting underway in Paris. And I'm glad to 41 00:01:50,280 --> 00:01:54,720 Speaker 7: say Bloomberg's europe correspondent Oliver Crook is there and reporting 42 00:01:54,760 --> 00:01:56,920 Speaker 7: on our behalf here on balance of power. I want 43 00:01:56,920 --> 00:02:00,360 Speaker 7: to bring Oliver in live now from Voda. Sernaeliver, what 44 00:02:00,440 --> 00:02:05,120 Speaker 7: are you hearing about this military action against Iran and 45 00:02:05,160 --> 00:02:07,200 Speaker 7: the President's remarks about our NATO allies. 46 00:02:09,560 --> 00:02:12,040 Speaker 8: Yeah, So what's remarkable is, in sort of ordinary times 47 00:02:12,160 --> 00:02:14,120 Speaker 8: G seven meeting would be the venue in which the 48 00:02:14,200 --> 00:02:17,359 Speaker 8: United States might consult allies, potentially before an invasion of 49 00:02:17,400 --> 00:02:19,720 Speaker 8: a major country. Potentially after an invasion. There would be 50 00:02:19,800 --> 00:02:23,640 Speaker 8: discussions about strategic petroleum reserves that are sort of organized 51 00:02:23,639 --> 00:02:26,000 Speaker 8: across these G seven countries. But as we know, these 52 00:02:26,040 --> 00:02:28,160 Speaker 8: are not really ordinary times. I've been speaking to a 53 00:02:28,240 --> 00:02:31,480 Speaker 8: number of people, including the highest diplomat from the European Union. 54 00:02:31,560 --> 00:02:35,080 Speaker 8: She's awaiting Marco Rubio's arrival tomorrow to again be on 55 00:02:35,120 --> 00:02:37,160 Speaker 8: this sort of fact finding mission that I think everybody 56 00:02:37,200 --> 00:02:39,240 Speaker 8: in Europe is on to try to establish what the 57 00:02:39,360 --> 00:02:42,120 Speaker 8: US warriams are, where they see things going, and also 58 00:02:42,200 --> 00:02:45,679 Speaker 8: specifically what kind of support they're seeking from allies. I 59 00:02:45,720 --> 00:02:49,080 Speaker 8: also spoke to the Canadian Foreign Minister, also a NATO member, 60 00:02:49,240 --> 00:02:52,320 Speaker 8: about their potential appetite of entering in some way in 61 00:02:52,400 --> 00:02:55,079 Speaker 8: this conflict, whether it's easing the waterways if there's an attack, 62 00:02:55,160 --> 00:02:57,280 Speaker 8: say on some of the Gulf allies. Is that something 63 00:02:57,280 --> 00:02:59,760 Speaker 8: that Canadians are willing to step in on and the 64 00:02:59,760 --> 00:03:02,560 Speaker 8: real realistic situation for the Canadians and many others. Is 65 00:03:02,600 --> 00:03:04,400 Speaker 8: this is not the moment, This is not our war. 66 00:03:04,760 --> 00:03:07,240 Speaker 8: That being said, we do know from the NATO Secretary 67 00:03:07,320 --> 00:03:10,680 Speaker 8: Mark Ruta that there have been conversations about building a 68 00:03:10,680 --> 00:03:13,440 Speaker 8: co so called Coalition of the Willing. Apparently thirty or 69 00:03:13,520 --> 00:03:17,120 Speaker 8: so countries are already in discussions about this of potentially 70 00:03:17,160 --> 00:03:19,679 Speaker 8: getting involved in the day after in order to help 71 00:03:19,720 --> 00:03:22,359 Speaker 8: ease the sort of naval vessels going through the straits 72 00:03:22,360 --> 00:03:24,200 Speaker 8: of horror moves. But right here, you know, there's no 73 00:03:24,240 --> 00:03:26,600 Speaker 8: appetite to really get fully involved and really for them, 74 00:03:26,639 --> 00:03:28,360 Speaker 8: they're going to try to get a sort of fact 75 00:03:28,360 --> 00:03:30,639 Speaker 8: finding mission from Marco Rubio to establish what the US 76 00:03:30,680 --> 00:03:32,679 Speaker 8: aims are and b try to keep him on side 77 00:03:32,680 --> 00:03:33,280 Speaker 8: in Ukraine. 78 00:03:35,320 --> 00:03:37,720 Speaker 3: All right, Bloomberg's Oliver Crook live at the G seven 79 00:03:37,760 --> 00:03:40,880 Speaker 3: Foreigners Foreign Ministers meeting in France. Thank you so much 80 00:03:40,920 --> 00:03:42,880 Speaker 3: for joining us, and we want to go live now 81 00:03:42,960 --> 00:03:45,200 Speaker 3: to Capitol Hill, where we're joined by Republican Senator Ted 82 00:03:45,280 --> 00:03:48,280 Speaker 3: Budd of North Carolina, who of course sits on the 83 00:03:48,320 --> 00:03:51,920 Speaker 3: Senate Intelligence and Armed Services Committees. Welcome back to Bloomberg 84 00:03:51,920 --> 00:03:56,160 Speaker 3: TV and Radio. Senator, We appreciate your time, your chairman 85 00:03:56,280 --> 00:03:59,120 Speaker 3: on the Armed Services Committee. Senator Roger Wicker, as well 86 00:03:59,160 --> 00:04:02,320 Speaker 3: as the chair on the House Armed Services Committee, Mike Rodgers, 87 00:04:02,400 --> 00:04:07,520 Speaker 3: have both expressed in recent days some frustration about understanding 88 00:04:07,560 --> 00:04:11,160 Speaker 3: from the administration what exactly the options are there considering 89 00:04:11,160 --> 00:04:15,280 Speaker 3: when it comes to putting further troops into the Middle East. 90 00:04:15,360 --> 00:04:16,600 Speaker 5: Right now, of course. 91 00:04:16,600 --> 00:04:19,960 Speaker 3: You had Rogers saying that essentially the briefing that he 92 00:04:20,040 --> 00:04:23,599 Speaker 3: received yesterday didn't answer lawmakers questions around this. I understand 93 00:04:23,640 --> 00:04:26,159 Speaker 3: that you need to have some ambiguity in public that 94 00:04:26,200 --> 00:04:28,640 Speaker 3: there is much the president doesn't want to reveal through 95 00:04:28,680 --> 00:04:30,800 Speaker 3: the news media, for example, But does he not have 96 00:04:30,920 --> 00:04:33,760 Speaker 3: does the administration not have an obligation to tell you 97 00:04:33,920 --> 00:04:35,279 Speaker 3: exactly what it's considering? 98 00:04:36,160 --> 00:04:37,960 Speaker 9: Well, they do, and that's why we're Article one in 99 00:04:38,000 --> 00:04:42,160 Speaker 9: the Constitution, the Article two. The President and the administration 100 00:04:42,200 --> 00:04:44,840 Speaker 9: are supposed to work with us on such matters. If 101 00:04:44,839 --> 00:04:47,279 Speaker 9: they're going to come to us for a supplemental, they 102 00:04:47,320 --> 00:04:50,159 Speaker 9: need to be letting us know about these things. And 103 00:04:50,160 --> 00:04:53,039 Speaker 9: this is a classified setting. But I'll also say in 104 00:04:53,120 --> 00:04:56,560 Speaker 9: defense of the administration, you have to have a Congress 105 00:04:56,560 --> 00:04:59,359 Speaker 9: that you can trust when we go into those classified settings. 106 00:04:59,360 --> 00:05:02,920 Speaker 9: You see members occasionally go out and talk to the press. 107 00:05:03,080 --> 00:05:04,640 Speaker 9: We want to be open with the press, but not 108 00:05:04,640 --> 00:05:06,520 Speaker 9: with things that we hear in a classified setting. So 109 00:05:06,760 --> 00:05:09,280 Speaker 9: the administration needs to make sure that they can trust 110 00:05:09,279 --> 00:05:13,359 Speaker 9: Congress and individual elected officials need to make sure that 111 00:05:13,400 --> 00:05:15,360 Speaker 9: they're keeping classified things classified. 112 00:05:15,480 --> 00:05:16,760 Speaker 4: But we do need more information. 113 00:05:16,880 --> 00:05:19,599 Speaker 9: The administration the Pentagon are going to work much quicker 114 00:05:19,640 --> 00:05:22,160 Speaker 9: than Congress will by design, but they need to have 115 00:05:22,200 --> 00:05:25,640 Speaker 9: a good flow of information. So I understand what Chairman 116 00:05:25,680 --> 00:05:30,039 Speaker 9: Wicker and Rogers are concerned about well. 117 00:05:30,040 --> 00:05:32,279 Speaker 7: And we don't want to put any classified information on 118 00:05:32,360 --> 00:05:35,039 Speaker 7: the air, Senator, but I would ask you, are the 119 00:05:35,279 --> 00:05:39,120 Speaker 7: justifications that the White House presented to the American people 120 00:05:39,160 --> 00:05:42,040 Speaker 7: the same ones that you heard in that classified briefing. 121 00:05:42,520 --> 00:05:43,359 Speaker 4: In broad strokes? 122 00:05:43,400 --> 00:05:46,160 Speaker 9: Absolutely, yes, I mean you see the ballistic capabilities, It's 123 00:05:46,240 --> 00:05:49,680 Speaker 9: known what they shot towards Diego Garcia. It's much further 124 00:05:50,000 --> 00:05:54,120 Speaker 9: than we were anticipating as far as Iran's capabilities, the 125 00:05:54,240 --> 00:05:57,360 Speaker 9: vastness of what they've done over the last forty seven years, 126 00:05:57,360 --> 00:06:00,360 Speaker 9: particularly since twenty twenty, in the build up and Iran, 127 00:06:00,680 --> 00:06:04,159 Speaker 9: I mean that has been All sources of terrorism tend 128 00:06:04,200 --> 00:06:07,479 Speaker 9: to lead right back to Iran. We've seen Hesbalah, we've 129 00:06:07,480 --> 00:06:09,920 Speaker 9: seen Hamas what they've done. We've seen what they've done 130 00:06:09,960 --> 00:06:12,680 Speaker 9: to our soldiers, we've seen their threats to our homeland. 131 00:06:12,960 --> 00:06:16,040 Speaker 9: And when you take that capability with ballistic missiles that 132 00:06:16,080 --> 00:06:19,279 Speaker 9: we've just recently seen and the whole world now knows about, 133 00:06:19,600 --> 00:06:23,040 Speaker 9: plus their intent to enrich uranium to ninety percent levels, 134 00:06:23,240 --> 00:06:25,640 Speaker 9: I mean that is nuclear capability that not only could 135 00:06:25,760 --> 00:06:28,800 Speaker 9: destroy Europe, it could destroy us as well. And so 136 00:06:28,960 --> 00:06:31,560 Speaker 9: if you want to sayer America, you need to have 137 00:06:31,880 --> 00:06:34,440 Speaker 9: a defanged Iran, and that is certainly what the President's 138 00:06:34,440 --> 00:06:34,960 Speaker 9: trying to do. 139 00:06:36,720 --> 00:06:39,760 Speaker 3: Well when we consider that defanging though, obviously the President 140 00:06:39,760 --> 00:06:41,720 Speaker 3: as well as the Defense Secretary of Harold did what 141 00:06:41,760 --> 00:06:45,800 Speaker 3: they're claiming is American and Israeli air superiority over Iran. 142 00:06:45,880 --> 00:06:48,560 Speaker 3: Yet the President also said today that Iran had to 143 00:06:48,960 --> 00:06:52,479 Speaker 3: grant them a present of allowing ten vessels through the 144 00:06:52,480 --> 00:06:55,160 Speaker 3: Straight of Wour moves, also noting that Iran is right 145 00:06:55,160 --> 00:06:58,320 Speaker 3: now charging some of those vessels in order to transit. 146 00:06:58,360 --> 00:07:00,880 Speaker 3: Does that not underscore that it is actually still Iran 147 00:07:00,920 --> 00:07:03,200 Speaker 3: that has complete and total authority at this time over 148 00:07:03,200 --> 00:07:03,640 Speaker 3: the Strait? 149 00:07:04,520 --> 00:07:06,320 Speaker 9: Well, I don't think so. When you look at our 150 00:07:06,360 --> 00:07:09,080 Speaker 9: capabilities in the region. And yes, I mean there is 151 00:07:09,640 --> 00:07:12,280 Speaker 9: a geological issue when you've got a twenty four mile 152 00:07:12,360 --> 00:07:15,440 Speaker 9: wide straight and you've got essentially a ran that wraps 153 00:07:15,480 --> 00:07:18,800 Speaker 9: around it. But when you see their geological advantage there, 154 00:07:20,320 --> 00:07:23,200 Speaker 9: it pales in comparison to what we can do militarily. 155 00:07:23,720 --> 00:07:26,640 Speaker 9: When you have the eleventh Marine Expeditionary Unit on the way, 156 00:07:27,200 --> 00:07:30,680 Speaker 9: you have America's nine one one force in eighty second 157 00:07:30,760 --> 00:07:33,880 Speaker 9: airborne going there, that increases our option. I think it's 158 00:07:33,920 --> 00:07:37,040 Speaker 9: going to cause Iran to step back and rethink if 159 00:07:37,040 --> 00:07:40,440 Speaker 9: they want to preserve any semblance of their regime. And again, 160 00:07:40,480 --> 00:07:43,160 Speaker 9: we can't have the hostile part. We don't want an 161 00:07:43,280 --> 00:07:45,360 Speaker 9: enemy of America. If they want to be a great 162 00:07:45,360 --> 00:07:48,040 Speaker 9: country of ninety million people and good for the region, 163 00:07:48,120 --> 00:07:50,520 Speaker 9: good for themselves, and not a threat to the United States, 164 00:07:50,640 --> 00:07:53,280 Speaker 9: that's fine. But they need to come to the negotiating 165 00:07:53,320 --> 00:07:57,080 Speaker 9: table in good faith, not this constant, years long. 166 00:07:56,920 --> 00:07:58,920 Speaker 4: Deception that they've put forth. We have. 167 00:07:59,320 --> 00:08:02,680 Speaker 9: When you go back to what Steve Witkoff has done 168 00:08:02,760 --> 00:08:05,120 Speaker 9: to go over there to talk, they actually bragged about 169 00:08:05,120 --> 00:08:08,320 Speaker 9: their nuclear capabilities and their enrichment. That's not the way 170 00:08:08,360 --> 00:08:11,880 Speaker 9: you have a good negotiation. So I don't think they've 171 00:08:11,880 --> 00:08:15,120 Speaker 9: been trustworthy partners at all in this, but we keep 172 00:08:15,120 --> 00:08:15,880 Speaker 9: coming back to them. 173 00:08:16,360 --> 00:08:17,000 Speaker 4: We're pausing. 174 00:08:17,000 --> 00:08:19,400 Speaker 9: If the President gave them a window of time to say, 175 00:08:19,640 --> 00:08:22,040 Speaker 9: come to the table, let's talk about the next phase, 176 00:08:22,360 --> 00:08:24,640 Speaker 9: and if they don't, it's going to be very hard 177 00:08:24,640 --> 00:08:25,080 Speaker 9: on Iran. 178 00:08:26,440 --> 00:08:29,640 Speaker 7: Yeah, there are reports today that the Pentagon Senator is 179 00:08:29,640 --> 00:08:33,200 Speaker 7: developing options for what they're calling a final blow, and 180 00:08:33,320 --> 00:08:38,680 Speaker 7: Axios lines them up to include invading or blockading karg Island, 181 00:08:38,679 --> 00:08:40,760 Speaker 7: which is something the President's talked about a lot, but 182 00:08:40,800 --> 00:08:45,120 Speaker 7: also invading Loaracan Island that helps Iran control the Strait 183 00:08:45,240 --> 00:08:48,120 Speaker 7: and the strategic island of Abu Musa, along with a 184 00:08:48,120 --> 00:08:51,800 Speaker 7: couple of smaller islands the western entrance to the Strait. 185 00:08:53,040 --> 00:08:56,480 Speaker 7: If the Strait of Hormus remains closed, would occupying these 186 00:08:56,520 --> 00:08:59,920 Speaker 7: islands be enough military pressure to reopen it? 187 00:09:01,160 --> 00:09:02,280 Speaker 4: Would certainly increase it. 188 00:09:02,360 --> 00:09:04,160 Speaker 9: But what we want to do is give the Pentagon, 189 00:09:04,240 --> 00:09:07,199 Speaker 9: give the Commander in chief as many options as possible 190 00:09:07,480 --> 00:09:08,719 Speaker 9: to do what he needs to do to. 191 00:09:08,679 --> 00:09:11,360 Speaker 4: Protect the American people. Because when you take their ballistic 192 00:09:11,360 --> 00:09:12,560 Speaker 4: capabilities and you. 193 00:09:12,440 --> 00:09:15,200 Speaker 9: Combine it with their enrichment goals, I mean that is 194 00:09:15,280 --> 00:09:17,800 Speaker 9: devastating to the United States, and they've chanted death to 195 00:09:17,840 --> 00:09:19,400 Speaker 9: America for forty seven years. 196 00:09:19,559 --> 00:09:20,800 Speaker 4: So we need to give the president. 197 00:09:21,000 --> 00:09:23,480 Speaker 9: We need to give the Department of War and our 198 00:09:23,559 --> 00:09:26,839 Speaker 9: war fighters all the protection, all the options that they need. 199 00:09:27,360 --> 00:09:29,320 Speaker 9: We pray for our troops, We're grateful for them. We 200 00:09:29,360 --> 00:09:31,880 Speaker 9: don't want a prolonged war, and we want to get 201 00:09:31,920 --> 00:09:35,920 Speaker 9: this thing resolved completely and decisively as quickly as possible. 202 00:09:36,040 --> 00:09:38,280 Speaker 9: But we have to give the president options in order 203 00:09:38,320 --> 00:09:41,160 Speaker 9: to do so well. 204 00:09:41,160 --> 00:09:43,520 Speaker 3: Of course, your leadership in the Senate is also seeking 205 00:09:43,520 --> 00:09:46,400 Speaker 3: a quick resolution on another issue, although it is one 206 00:09:46,400 --> 00:09:49,920 Speaker 3: that has been protracted forty days. Now that the Department 207 00:09:49,920 --> 00:09:53,120 Speaker 3: of Homeland Security has been shut down, we understand that 208 00:09:53,240 --> 00:09:56,200 Speaker 3: Leader Thune has submitted what he's called a final offer 209 00:09:56,520 --> 00:09:59,480 Speaker 3: to Democrats. Senator, whatever that offer looks like, are you 210 00:09:59,559 --> 00:10:01,600 Speaker 3: prepared to vote for that? In the name of getting 211 00:10:01,640 --> 00:10:05,400 Speaker 3: TSA agents and others paid, the. 212 00:10:05,360 --> 00:10:08,560 Speaker 9: Democrats have used fifty seven thousand TSA agents in the 213 00:10:08,600 --> 00:10:11,760 Speaker 9: whole of Homeland Security. At a time of concern for 214 00:10:11,840 --> 00:10:14,880 Speaker 9: the defense of our homeland, the Democrats have held at hostage. 215 00:10:14,920 --> 00:10:17,960 Speaker 9: It's absolutely unbelievable. We have to get this department open. 216 00:10:18,040 --> 00:10:20,960 Speaker 9: We have to protect the Homeland. This is critical. We've 217 00:10:20,960 --> 00:10:23,920 Speaker 9: got a great secretary there in Mark Wayne Mullen, one 218 00:10:24,000 --> 00:10:27,040 Speaker 9: of our colleagues here recently from the Senate. I think 219 00:10:27,040 --> 00:10:29,040 Speaker 9: he'll be a great leader for that. But we have 220 00:10:29,120 --> 00:10:31,479 Speaker 9: to get this open. We can't hold these people hostage. 221 00:10:31,600 --> 00:10:34,080 Speaker 9: And we're not just talking about airports here, and those 222 00:10:34,120 --> 00:10:37,360 Speaker 9: fifty seven thousand individuals that are walking off the job, 223 00:10:37,679 --> 00:10:39,840 Speaker 9: not because they don't like their job, not because they're 224 00:10:39,920 --> 00:10:42,240 Speaker 9: just mad, and they deserve to be mad for what 225 00:10:42,320 --> 00:10:44,800 Speaker 9: Chuck Schumer has done to them. But these are people 226 00:10:44,800 --> 00:10:46,800 Speaker 9: that can't afford gas to get to work. These are 227 00:10:46,800 --> 00:10:49,199 Speaker 9: people that are sleeping in their cars. These are people 228 00:10:49,200 --> 00:10:51,280 Speaker 9: that they can't afford food to get them through the 229 00:10:51,320 --> 00:10:53,880 Speaker 9: week so that they can get to work without being paid. 230 00:10:54,160 --> 00:10:56,839 Speaker 4: This is absolutely ridiculous. We have to open this up. 231 00:10:57,360 --> 00:10:59,560 Speaker 9: The American people are fed up with what Chuck Schumer's 232 00:10:59,559 --> 00:11:03,080 Speaker 9: doing here. It's unbelievable what they've done. They have walked 233 00:11:03,120 --> 00:11:06,320 Speaker 9: away from two different deals. They keep moving the goalposts. 234 00:11:06,559 --> 00:11:10,680 Speaker 9: They want things like body cameras for enforcement agents. That's fine, 235 00:11:10,720 --> 00:11:12,920 Speaker 9: but it was in the original deal. So look at 236 00:11:12,920 --> 00:11:15,839 Speaker 9: the original deal and that they walked away from, and 237 00:11:16,120 --> 00:11:19,000 Speaker 9: you'll see that we've been reasonable at every turn, and 238 00:11:19,040 --> 00:11:22,280 Speaker 9: we're still continuing to be I think the Democrats are 239 00:11:22,320 --> 00:11:25,880 Speaker 9: inherently afraid of their increasingly radicalized base in the far 240 00:11:25,960 --> 00:11:28,960 Speaker 9: left base, and they're worried about their own primaries. 241 00:11:29,000 --> 00:11:31,920 Speaker 4: They're worried about their own elections. We're just here trying 242 00:11:31,960 --> 00:11:33,040 Speaker 4: to serve the American. 243 00:11:32,720 --> 00:11:35,800 Speaker 9: People and be reasonable, get these departments open, keep them 244 00:11:35,800 --> 00:11:38,640 Speaker 9: regularly funded, be good stewards of the American taxpayer. 245 00:11:38,880 --> 00:11:39,959 Speaker 4: That's all we're trying to do. 246 00:11:39,920 --> 00:11:41,959 Speaker 9: Here, and we're asking them to come in good faith 247 00:11:42,000 --> 00:11:43,160 Speaker 9: to the negotiating table. 248 00:11:44,360 --> 00:11:47,320 Speaker 7: Senator Ted Budd Republican from North Carolina, we thank you 249 00:11:47,679 --> 00:11:50,000 Speaker 7: for the insights. Of course, Democrats are saying many of 250 00:11:50,040 --> 00:11:53,440 Speaker 7: the same things about Republicans who are entering primary season, 251 00:11:53,480 --> 00:11:56,520 Speaker 7: and we assembled our political panel for their take on 252 00:11:56,600 --> 00:11:57,199 Speaker 7: everything that we. 253 00:11:57,240 --> 00:11:58,439 Speaker 5: Just discussed with the Senator. 254 00:11:58,480 --> 00:12:02,000 Speaker 7: Bloomberg Politics contributor Republican strategist Rick Davis is with US 255 00:12:02,040 --> 00:12:06,160 Speaker 7: partner at Stone Court Capital, alongside Democratic strategist Laura Fink, 256 00:12:06,240 --> 00:12:11,480 Speaker 7: former i should say, founder and CEO of Rebel Communications. Laura, 257 00:12:11,520 --> 00:12:13,800 Speaker 7: I'll give you a chance to respond to that, and 258 00:12:13,840 --> 00:12:16,720 Speaker 7: I'll ask you do you think these tsa agents should 259 00:12:16,760 --> 00:12:20,120 Speaker 7: be made whole once DHS someday reopens. Should they get 260 00:12:20,160 --> 00:12:21,680 Speaker 7: back pay for this closure? 261 00:12:22,679 --> 00:12:24,800 Speaker 10: I mean, I think that they're legally required to get 262 00:12:24,880 --> 00:12:27,199 Speaker 10: back pay, and I also think that I know that 263 00:12:27,280 --> 00:12:29,800 Speaker 10: overtime pay should be paid. We should incentivize them, and 264 00:12:29,840 --> 00:12:33,359 Speaker 10: we should protect them in future negotiations so that structurally 265 00:12:33,880 --> 00:12:36,400 Speaker 10: they're not the ones having to go out and raise 266 00:12:36,440 --> 00:12:40,520 Speaker 10: families on no dollars and deal with what I imagine to 267 00:12:40,559 --> 00:12:43,839 Speaker 10: be very grumpy customers in line. So the Senator is 268 00:12:43,920 --> 00:12:46,560 Speaker 10: right about that, But I think what you can't deny 269 00:12:46,800 --> 00:12:49,240 Speaker 10: is that when you are in charge, when you win elections, 270 00:12:49,280 --> 00:12:52,920 Speaker 10: as the Republicans did in the last election cycle, you 271 00:12:53,360 --> 00:12:55,800 Speaker 10: do have to take responsibility and sometimes you've got to 272 00:12:55,800 --> 00:12:58,400 Speaker 10: make concessions you don't want to make. And that's where 273 00:12:58,440 --> 00:13:00,760 Speaker 10: we are. We note we're not talking about what's on 274 00:13:00,760 --> 00:13:03,679 Speaker 10: the table here, because if Americans heard about what we 275 00:13:03,679 --> 00:13:06,720 Speaker 10: were arguing over, it really seems like it's something that 276 00:13:06,760 --> 00:13:09,240 Speaker 10: should be done by now. That's on the desk of 277 00:13:09,280 --> 00:13:11,800 Speaker 10: the President and then the Republicans who are negotiating on 278 00:13:11,880 --> 00:13:15,400 Speaker 10: his behalf. So as someone who has some flights coming up, 279 00:13:15,640 --> 00:13:17,880 Speaker 10: I hope certainly that they resolve in and especially for 280 00:13:17,920 --> 00:13:21,280 Speaker 10: those TSA workers who work hard every day and are 281 00:13:21,320 --> 00:13:23,240 Speaker 10: dealing with some real tough circumstances. 282 00:13:24,640 --> 00:13:27,200 Speaker 3: Well, and senators themselves would like to have flights coming 283 00:13:27,280 --> 00:13:29,080 Speaker 3: up rick they're trying to get out of here for 284 00:13:29,240 --> 00:13:32,120 Speaker 3: two week long recess. How much of an incentive is 285 00:13:32,200 --> 00:13:35,440 Speaker 3: that beyond the human impact of these TSA agents. 286 00:13:36,160 --> 00:13:38,800 Speaker 11: Well, As Patrick Henry said earlier, jet fumes are a 287 00:13:38,840 --> 00:13:42,360 Speaker 11: great motivator, and these guys want to get out. 288 00:13:42,880 --> 00:13:43,960 Speaker 4: It's an election here too. 289 00:13:44,040 --> 00:13:47,360 Speaker 11: I mean, so not just a time to be with 290 00:13:47,440 --> 00:13:51,520 Speaker 11: your constituents and your families around Easter, but you need 291 00:13:51,520 --> 00:13:53,679 Speaker 11: to be in touch with these folks because you're going 292 00:13:53,760 --> 00:13:56,080 Speaker 11: to be on a ballot, certainly in the House and 293 00:13:56,080 --> 00:13:59,120 Speaker 11: in a third of the Senate. So it's really a 294 00:13:59,160 --> 00:14:02,720 Speaker 11: critical period and it is a great motivator to get 295 00:14:02,760 --> 00:14:05,520 Speaker 11: a deal done. And something I'd like to pick up 296 00:14:05,559 --> 00:14:09,439 Speaker 11: what Laura said, just because Republicans are in charge, it 297 00:14:09,520 --> 00:14:13,840 Speaker 11: gives him, gives us Republicans an obligation to get something done. 298 00:14:13,880 --> 00:14:17,000 Speaker 11: It's not my way of the highway. It's like actually 299 00:14:17,000 --> 00:14:20,640 Speaker 11: getting something signed in the law. And the public knows 300 00:14:21,000 --> 00:14:23,160 Speaker 11: that the Democrats don't have a vote on that, and 301 00:14:23,560 --> 00:14:26,080 Speaker 11: if you look at past polling, Republicans even want run 302 00:14:26,080 --> 00:14:29,160 Speaker 11: a minority get blamed for government shut down. So there's 303 00:14:29,240 --> 00:14:32,560 Speaker 11: never a good outcome for the Republicans on a ballot 304 00:14:32,840 --> 00:14:35,880 Speaker 11: when you start shutting down portions of the government. And 305 00:14:35,960 --> 00:14:39,000 Speaker 11: so I really don't get why there isn't a bigger 306 00:14:39,400 --> 00:14:42,800 Speaker 11: crisis within the caucus to get a bill and get 307 00:14:42,800 --> 00:14:44,040 Speaker 11: it done and get. 308 00:14:43,840 --> 00:14:48,520 Speaker 3: Home, all right, Rick Davis and Laura Fink, they will 309 00:14:48,520 --> 00:14:50,760 Speaker 3: not be going home yet is our political panel will 310 00:14:50,760 --> 00:14:52,960 Speaker 3: be back with us for more later on this hour 311 00:14:52,960 --> 00:14:54,440 Speaker 3: because we have to get a view from the other 312 00:14:54,480 --> 00:14:56,440 Speaker 3: side of the aisle as well. After speaking with Republican 313 00:14:56,440 --> 00:14:59,680 Speaker 3: Senator Ted Budjoe, Congressman Susan Delbany, the Democrat of course 314 00:14:59,680 --> 00:15:01,640 Speaker 3: from one Washington, the chair of the d Triple C 315 00:15:02,240 --> 00:15:04,160 Speaker 3: joins us next. I'm sure she wants to weigh in 316 00:15:04,200 --> 00:15:05,400 Speaker 3: on what all this means for the minter. 317 00:15:05,520 --> 00:15:06,400 Speaker 5: I suspect she does. 318 00:15:06,480 --> 00:15:09,160 Speaker 7: This is the woman who is responsible for getting Democrats 319 00:15:09,160 --> 00:15:11,800 Speaker 7: elected to the House. If they take control of the House, 320 00:15:11,840 --> 00:15:14,080 Speaker 7: it'll be largely due to the work that she's up 321 00:15:14,120 --> 00:15:15,600 Speaker 7: to right now. And she'll be with us live from 322 00:15:15,640 --> 00:15:18,080 Speaker 7: Capitol Hill straight ahead. Here on Balance of Power. Stay 323 00:15:18,080 --> 00:15:20,200 Speaker 7: with us on Balance of Power. We'll have much more 324 00:15:20,240 --> 00:15:21,200 Speaker 7: coming up after this. 325 00:15:25,480 --> 00:15:28,960 Speaker 2: You're listening to the Bloomberg Balance of Power podcast. Catch 326 00:15:29,000 --> 00:15:32,080 Speaker 2: us live weekdays at noon and five pm Eastern on 327 00:15:32,200 --> 00:15:35,440 Speaker 2: Apple Cockway and Android Auto with the Bloomberg Business App. 328 00:15:35,480 --> 00:15:38,480 Speaker 2: You can also listen live on Amazon Alexa from our 329 00:15:38,520 --> 00:15:43,040 Speaker 2: flagship New York station Just Say Alexa played Bloomberg eleven thirty. 330 00:15:44,320 --> 00:15:46,280 Speaker 7: So we keep tabs on Wall Street here with so 331 00:15:46,400 --> 00:15:50,880 Speaker 7: much information from Washington driving the financial markets here, beginning 332 00:15:50,880 --> 00:15:52,720 Speaker 7: of course with energy, but also when it comes to 333 00:15:52,800 --> 00:15:55,560 Speaker 7: interest rates and the stock market, it's hard to remove 334 00:15:55,600 --> 00:15:59,240 Speaker 7: the two. We just had an interesting conversation with Senator 335 00:15:59,240 --> 00:16:01,960 Speaker 7: Ted bud Rappol looking from North Carolina on what is 336 00:16:01,960 --> 00:16:05,440 Speaker 7: now day forty of this partial government shut down. When 337 00:16:05,440 --> 00:16:07,760 Speaker 7: I say that, I'm of course referring to the Department 338 00:16:07,760 --> 00:16:12,160 Speaker 7: of Homeland Security. There have been on again, off again talks, 339 00:16:12,200 --> 00:16:14,960 Speaker 7: if I can characterize it that way, this week about 340 00:16:15,000 --> 00:16:19,080 Speaker 7: reopening DHS. There was the prospect forty eight hours ago, 341 00:16:19,160 --> 00:16:22,000 Speaker 7: in fact, of a piece of legislation that would fund 342 00:16:22,040 --> 00:16:25,040 Speaker 7: all of DHS without funding ICE, knowing that it has 343 00:16:25,080 --> 00:16:28,080 Speaker 7: a lot of money from the President's big beautiful bill, 344 00:16:28,640 --> 00:16:31,280 Speaker 7: but that seems to have crashed into the rocks. And 345 00:16:31,320 --> 00:16:34,720 Speaker 7: when we talked to Senator Budd about why knowing Democrats 346 00:16:34,800 --> 00:16:39,360 Speaker 7: would like further reforms when it comes to ICE, he said, 347 00:16:39,400 --> 00:16:42,480 Speaker 7: I think the Democrats are inherently afraid of their increasingly 348 00:16:42,680 --> 00:16:47,400 Speaker 7: radicalized base, worried about their own primaries and elections. We're 349 00:16:47,480 --> 00:16:50,080 Speaker 7: just trying to serve the American people. So we thought 350 00:16:50,120 --> 00:16:52,840 Speaker 7: we would talk to the member of Congress who was 351 00:16:52,880 --> 00:16:56,840 Speaker 7: responsible for getting Democrats elected in this midterm cycle. That 352 00:16:56,880 --> 00:17:00,000 Speaker 7: would be Susan del Bene, Democrat from Washington, is chair 353 00:17:00,280 --> 00:17:04,080 Speaker 7: of the House Democratic Congressional Campaign Committee and congresswoman. It's 354 00:17:04,119 --> 00:17:06,879 Speaker 7: great to see you. Welcome back to Bloomberg TV and Radio. 355 00:17:07,000 --> 00:17:08,840 Speaker 7: How would you respond to Senator Bud. 356 00:17:10,040 --> 00:17:13,280 Speaker 12: I'd respond to Center Bud that he should probably listen 357 00:17:13,359 --> 00:17:16,119 Speaker 12: to the American people. If you listen to the American people, 358 00:17:17,200 --> 00:17:20,479 Speaker 12: two things are very true. One, they want to make 359 00:17:20,520 --> 00:17:25,960 Speaker 12: sure that TSA workers are paid. They're struggling because they 360 00:17:25,960 --> 00:17:28,480 Speaker 12: haven't been paid and so long. These are people doing 361 00:17:28,520 --> 00:17:32,000 Speaker 12: important work for our communities, making sure that we fund 362 00:17:32,040 --> 00:17:34,760 Speaker 12: the Coast Guard and FEMA. We have legislation that could 363 00:17:34,760 --> 00:17:38,080 Speaker 12: be passed right now to fund the parts of homeland 364 00:17:38,080 --> 00:17:40,760 Speaker 12: security that we all agree on, things like TSA and 365 00:17:40,800 --> 00:17:43,920 Speaker 12: FEMA and Coast Guard. That could be done right away 366 00:17:44,119 --> 00:17:46,879 Speaker 12: while we continue to talk about the need for reforms 367 00:17:46,920 --> 00:17:50,440 Speaker 12: for ICE. Look at what's happened across the country, violence 368 00:17:50,520 --> 00:17:56,159 Speaker 12: in communities. Two Americans killed because of the violence that 369 00:17:56,320 --> 00:18:00,280 Speaker 12: we have seen from ICE agents. People want to see 370 00:18:00,320 --> 00:18:03,520 Speaker 12: reforms across the country or demanding reforms. If Republicans were 371 00:18:03,520 --> 00:18:07,000 Speaker 12: listening to people, they would understand that and come to 372 00:18:07,040 --> 00:18:10,520 Speaker 12: the table. But right now, there's a very straightforward solution. 373 00:18:11,400 --> 00:18:13,800 Speaker 12: Rosa Deloro has a bill to make sure that we 374 00:18:13,920 --> 00:18:17,640 Speaker 12: fund the parts of homeland security that we agree on, 375 00:18:18,240 --> 00:18:20,600 Speaker 12: and then we continue to make sure that we are 376 00:18:20,760 --> 00:18:24,760 Speaker 12: working towards reforms for ICE. Those could be happening right now. 377 00:18:25,000 --> 00:18:28,520 Speaker 12: Republicans don't know what they want to do. They're waiting 378 00:18:28,520 --> 00:18:30,240 Speaker 12: for Donald Trump to tell them what to do. 379 00:18:32,080 --> 00:18:34,600 Speaker 3: Well, our Democrats united and what they would like to 380 00:18:34,640 --> 00:18:38,040 Speaker 3: see done. Either Congresswoman, do you trust whatever deal it 381 00:18:38,080 --> 00:18:40,760 Speaker 3: is that Chuck Schumer may be able to negotiate. 382 00:18:41,800 --> 00:18:44,400 Speaker 12: Well, look us home in the House. We have a 383 00:18:44,400 --> 00:18:47,360 Speaker 12: piece of legislation. We have something called the Discharge petition 384 00:18:47,480 --> 00:18:50,000 Speaker 12: to force a vote on the floor since Republicans won't 385 00:18:50,000 --> 00:18:53,080 Speaker 12: put the bill on the floor again, just fund all 386 00:18:53,160 --> 00:18:56,520 Speaker 12: the other parts of ICE like TSA, fund the other 387 00:18:56,560 --> 00:19:00,520 Speaker 12: parts of Homeland Security like TSA, and then make sure 388 00:19:00,560 --> 00:19:04,199 Speaker 12: that we continue to negotiate on ICE. That's a very 389 00:19:04,280 --> 00:19:09,479 Speaker 12: straightforward solution. Strong support Republicans. I don't think they know 390 00:19:09,720 --> 00:19:12,119 Speaker 12: what they want to do, but I think i'm Senator 391 00:19:12,280 --> 00:19:15,160 Speaker 12: Kennedy on the Republican side, was clear that he thought 392 00:19:15,240 --> 00:19:16,600 Speaker 12: the problem was Donald Trump. 393 00:19:18,800 --> 00:19:21,640 Speaker 7: Well, Donald Trump was speaking last evening, as a matter 394 00:19:21,720 --> 00:19:26,040 Speaker 7: of fact, that a fundraiser, This is the nrcc's March dinner, 395 00:19:26,560 --> 00:19:30,000 Speaker 7: which brought in tens of millions of dollars. Yeah, if 396 00:19:30,040 --> 00:19:33,560 Speaker 7: we can have those comments, Congresswoman, I'd love for you 397 00:19:33,640 --> 00:19:35,280 Speaker 7: to hear what he said, and we'll have your respond with. 398 00:19:36,320 --> 00:19:37,520 Speaker 4: Well, we have a hot party. 399 00:19:37,800 --> 00:19:40,400 Speaker 13: We have a very hot party. With your help this November, 400 00:19:40,440 --> 00:19:43,280 Speaker 13: will defeat the radical f Democrats and will win a 401 00:19:43,720 --> 00:19:47,720 Speaker 13: midterm victory like our country has never seen. For whatever reason, 402 00:19:48,400 --> 00:19:52,120 Speaker 13: I don't know what it is, but a president who 403 00:19:52,160 --> 00:19:58,000 Speaker 13: wins Republican or Democrat almost always as poorly in the midterms. 404 00:19:58,000 --> 00:20:01,520 Speaker 13: Nobody knows why. Even if it's a successful well presidency. 405 00:20:02,960 --> 00:20:06,200 Speaker 7: I don't know if he's projecting Madam chair, but there 406 00:20:06,200 --> 00:20:08,920 Speaker 7: are questions about the money race and the extent to 407 00:20:08,960 --> 00:20:12,480 Speaker 7: which Republicans have been outraising Democrats. How concerned are you 408 00:20:12,680 --> 00:20:14,720 Speaker 7: or not about that in this midterm cycle. 409 00:20:15,760 --> 00:20:18,000 Speaker 12: Well, the American people are with us. We've seen that 410 00:20:18,119 --> 00:20:21,480 Speaker 12: across the country. We've seen that in special elections across 411 00:20:21,520 --> 00:20:26,760 Speaker 12: the country where Democrats are overperforming, flipping seats across the country, 412 00:20:26,800 --> 00:20:31,840 Speaker 12: including that state legislative race Donald Trump's or mar A 413 00:20:31,880 --> 00:20:35,960 Speaker 12: Lago is located flipping from Republican to Democrat by a 414 00:20:36,000 --> 00:20:40,719 Speaker 12: wide margin. Folks are angry because Republicans have broken promise 415 00:20:40,800 --> 00:20:44,080 Speaker 12: after promise. They promised to lower costs on day one, 416 00:20:44,359 --> 00:20:47,240 Speaker 12: a big broken promise, promised to only go after the 417 00:20:47,280 --> 00:20:49,679 Speaker 12: worst of the worst when it came to immigration, a 418 00:20:49,720 --> 00:20:53,879 Speaker 12: big broken promise, promise, no forever wars. And now we 419 00:20:53,960 --> 00:20:57,960 Speaker 12: have a president with no plan entering a war in 420 00:20:58,040 --> 00:21:00,600 Speaker 12: the Middle East and he still has an archelated what 421 00:21:00,640 --> 00:21:04,199 Speaker 12: his plan or objectives are. So people are angry all 422 00:21:04,240 --> 00:21:08,879 Speaker 12: across the country, and we have had strong support and 423 00:21:09,080 --> 00:21:10,800 Speaker 12: the American people and folks who are going to stand 424 00:21:10,840 --> 00:21:12,080 Speaker 12: up for them who aren't just going to be a 425 00:21:12,160 --> 00:21:15,200 Speaker 12: rubber stamp for Donald Trump. We also have great candidates 426 00:21:15,240 --> 00:21:17,760 Speaker 12: who see what's happening on the ground, who want to run, 427 00:21:18,200 --> 00:21:25,200 Speaker 12: and folks with incredible backgrounds, veterans and farmers, small business owners, 428 00:21:25,200 --> 00:21:28,159 Speaker 12: mayors and ministers, all who are going to help us 429 00:21:28,160 --> 00:21:29,560 Speaker 12: take back the House in November. 430 00:21:30,960 --> 00:21:35,000 Speaker 3: Well, Congressman, I'm glad you raised that legislative district in 431 00:21:35,040 --> 00:21:37,920 Speaker 3: Florida home tomorrow, a Lago Democrat winning it after Trump 432 00:21:37,920 --> 00:21:41,040 Speaker 3: carried it by eleven points in twenty twenty four. There's 433 00:21:41,040 --> 00:21:43,600 Speaker 3: been murmurs today among Florida Republicans on the idea that 434 00:21:43,640 --> 00:21:47,439 Speaker 3: the redistricting push that the state Republicans are making maybe 435 00:21:48,119 --> 00:21:51,600 Speaker 3: a more risky proposition. Now given the results that we saw, 436 00:21:51,640 --> 00:21:54,399 Speaker 3: does it make you rethink how that map may be 437 00:21:54,520 --> 00:21:57,920 Speaker 3: more advantageous to Democrats than previously thought. 438 00:21:59,119 --> 00:22:01,280 Speaker 12: Well, we have four for districts where we are on 439 00:22:01,440 --> 00:22:04,560 Speaker 12: offense across the country, all across the country, including in 440 00:22:04,640 --> 00:22:08,400 Speaker 12: places like Texas, because people are outraged, and because in 441 00:22:08,440 --> 00:22:12,520 Speaker 12: special elections. In congressional special elections since November of twenty 442 00:22:12,600 --> 00:22:16,480 Speaker 12: twenty four, Democrats are running seventeen points ahead. So when 443 00:22:16,480 --> 00:22:19,080 Speaker 12: you look at the districts out there and where we 444 00:22:19,119 --> 00:22:23,080 Speaker 12: have opportunities. They're all over, from Texas to Iowa, to Arizona, 445 00:22:23,200 --> 00:22:27,399 Speaker 12: to Michigan and Pennsylvania because people are outrage from the 446 00:22:27,440 --> 00:22:31,879 Speaker 12: actions of this president and Republicans in Congress. So absolutely 447 00:22:31,880 --> 00:22:35,040 Speaker 12: we have opportunities. We have great candidates who are authentic 448 00:22:35,119 --> 00:22:38,600 Speaker 12: and independent minded, and people want folks who are going 449 00:22:38,680 --> 00:22:40,800 Speaker 12: to stand up for them, not just be a rubber 450 00:22:40,800 --> 00:22:45,000 Speaker 12: stamp for Donald Trump. And this Republican Congress has done 451 00:22:45,080 --> 00:22:47,320 Speaker 12: nothing but wait for Donald Trump to tell them what 452 00:22:47,359 --> 00:22:47,680 Speaker 12: to do. 453 00:22:48,680 --> 00:22:50,359 Speaker 5: I got to ask you quickly, Congress women. 454 00:22:50,400 --> 00:22:52,200 Speaker 7: I'm almost out of time, but I'm just struck by 455 00:22:52,240 --> 00:22:55,439 Speaker 7: gas prices in states like yours around the country. We 456 00:22:55,480 --> 00:22:58,240 Speaker 7: have a national average today of three dollars in ninety 457 00:22:58,280 --> 00:23:01,399 Speaker 7: eight cents, which is obviously a big problem, especially if 458 00:23:01,400 --> 00:23:02,320 Speaker 7: you're not getting. 459 00:23:02,000 --> 00:23:02,960 Speaker 5: Paid at the TSA. 460 00:23:04,040 --> 00:23:08,120 Speaker 7: In your state of Washington, it is five dollars and 461 00:23:08,200 --> 00:23:11,879 Speaker 7: thirty cents, which means half of your constituents are paying 462 00:23:11,960 --> 00:23:12,560 Speaker 7: more than that. 463 00:23:12,640 --> 00:23:13,760 Speaker 5: This is just an average. 464 00:23:13,800 --> 00:23:16,480 Speaker 7: How long can your state pay that much money to 465 00:23:16,520 --> 00:23:17,200 Speaker 7: fill the tank? 466 00:23:18,080 --> 00:23:21,879 Speaker 12: Well, remember, folks were struggling already. Working family saw costs 467 00:23:21,880 --> 00:23:27,159 Speaker 12: skyrocket because of actions from Trump with tariffs, cost of housing, food, 468 00:23:27,520 --> 00:23:31,560 Speaker 12: healthcare cost going up because of Republican actions. So folks 469 00:23:31,640 --> 00:23:35,080 Speaker 12: were already struggling. Now you add this on top all 470 00:23:35,200 --> 00:23:38,000 Speaker 12: of directly the result of decisions made by Donald Trump 471 00:23:38,080 --> 00:23:41,679 Speaker 12: and Republicans in Congress. We know number one issue across 472 00:23:41,720 --> 00:23:44,520 Speaker 12: the country is affordability, and we're going to stand up 473 00:23:44,760 --> 00:23:47,800 Speaker 12: and fight for working families, unlike Republicans who seem to 474 00:23:48,200 --> 00:23:48,680 Speaker 12: not care. 475 00:23:50,800 --> 00:23:53,640 Speaker 3: All right, Congressman, we appreciate you joining us. Democratic Congressman 476 00:23:53,680 --> 00:23:56,879 Speaker 3: Susan Delbenet of Washington, the chair of the Democratic Congressional 477 00:23:56,880 --> 00:23:59,000 Speaker 3: Campaign Committee with us live from Capitol Hill. 478 00:23:59,080 --> 00:23:59,880 Speaker 1: Thank you so much. 479 00:24:00,000 --> 00:24:02,440 Speaker 3: Of course, when we consider what is driving gas prices higher, 480 00:24:02,440 --> 00:24:05,280 Speaker 3: in large part it is the conflict between the US, Israel, 481 00:24:05,280 --> 00:24:07,359 Speaker 3: and Iran in the Middle East, which President Trump, during 482 00:24:07,400 --> 00:24:10,480 Speaker 3: a cabinet meeting today said once again he actually thought 483 00:24:10,520 --> 00:24:14,320 Speaker 3: would drive energy prices even higher. He continues to contend 484 00:24:14,359 --> 00:24:16,840 Speaker 3: he thought it would be worse than it is. And 485 00:24:16,880 --> 00:24:19,000 Speaker 3: on that messaging, we turned back to our political panel. 486 00:24:19,080 --> 00:24:21,800 Speaker 3: Rick Davis, partner at Stone Court Capital and Republican Strategists, 487 00:24:21,800 --> 00:24:24,760 Speaker 3: alongside Laura Fink, Democratic strategist and founder and CEO of 488 00:24:24,800 --> 00:24:26,440 Speaker 3: rebel communications. 489 00:24:26,800 --> 00:24:27,720 Speaker 1: Rick, I wonder what. 490 00:24:27,640 --> 00:24:30,720 Speaker 3: You make of the president repeatedly saying this that actually 491 00:24:30,760 --> 00:24:32,800 Speaker 3: he thought it was going to be way more bad 492 00:24:32,880 --> 00:24:35,399 Speaker 3: than it is when we're looking at gas prices that 493 00:24:35,400 --> 00:24:38,199 Speaker 3: we haven't seen this high in some time. Is that 494 00:24:38,240 --> 00:24:40,359 Speaker 3: what you want to be telling the American people right now? 495 00:24:41,280 --> 00:24:45,280 Speaker 11: Well, it's a device he's used in the past, you know, 496 00:24:45,320 --> 00:24:47,640 Speaker 11: as far as impact on tariffs and things like that, 497 00:24:47,680 --> 00:24:52,240 Speaker 11: where look, they've gone way up almost a full dollar 498 00:24:52,320 --> 00:24:55,520 Speaker 11: to most Americans. Oh don't worry, that's not so bad. 499 00:24:55,560 --> 00:24:57,600 Speaker 11: It could have been so much worse. And so he 500 00:24:57,680 --> 00:25:00,760 Speaker 11: can't actually speak to lowering those guests, isn't it. Course, 501 00:25:00,800 --> 00:25:03,480 Speaker 11: for a year, all he talked about was how he 502 00:25:03,600 --> 00:25:07,199 Speaker 11: has lowered gas prices. So I can see how this 503 00:25:07,400 --> 00:25:10,879 Speaker 11: is the best possible way to address the issue without 504 00:25:11,000 --> 00:25:14,800 Speaker 11: actually addressing the issue. So he's built kind of a 505 00:25:14,800 --> 00:25:17,360 Speaker 11: trap for himself. After spending a year talking about how 506 00:25:17,359 --> 00:25:20,760 Speaker 11: he's reduced the price of gas, now he can claim 507 00:25:20,840 --> 00:25:23,359 Speaker 11: that it's much it's not as bad as you think 508 00:25:23,400 --> 00:25:26,480 Speaker 11: it would have been. And I mean, it's not where 509 00:25:26,480 --> 00:25:28,280 Speaker 11: you want to be politically. 510 00:25:27,680 --> 00:25:30,600 Speaker 5: That's for sure. Yeah, Well, isn't that right? 511 00:25:30,680 --> 00:25:33,479 Speaker 7: Laura did you hear what Susan del Benny said forty 512 00:25:33,560 --> 00:25:37,800 Speaker 7: four seats? I believe she said they are playing offense. 513 00:25:38,760 --> 00:25:41,320 Speaker 7: I know that Democrats have history on their side in 514 00:25:41,400 --> 00:25:44,600 Speaker 7: this midterm cycle, but is the party, certainly at least 515 00:25:44,600 --> 00:25:47,159 Speaker 7: on the House side, getting a bit over its skis. 516 00:25:48,480 --> 00:25:51,439 Speaker 10: Well, it's an embarrassment of riches in terms of the 517 00:25:51,520 --> 00:25:53,679 Speaker 10: number of districts that are in play, which has a 518 00:25:53,680 --> 00:25:56,840 Speaker 10: lot to do with the energy on the Democratic side 519 00:25:57,119 --> 00:26:00,439 Speaker 10: and the real lack thereof on the Republican side. We 520 00:26:00,520 --> 00:26:03,240 Speaker 10: see that Republican voters are not enthused for all the 521 00:26:03,280 --> 00:26:06,480 Speaker 10: reasons that Rick is suggesting, and Donald Trump does not 522 00:26:06,560 --> 00:26:09,320 Speaker 10: seem to be really paying attention to his base. He 523 00:26:09,320 --> 00:26:11,879 Speaker 10: has a very loyal base, but also there are people 524 00:26:12,240 --> 00:26:14,640 Speaker 10: who he has swung in previous elections that he needs 525 00:26:14,680 --> 00:26:18,360 Speaker 10: to hold onto to make up for that traditional slide 526 00:26:18,480 --> 00:26:20,760 Speaker 10: in the mid terms. But I think not only is 527 00:26:20,800 --> 00:26:23,359 Speaker 10: the wind at Democrats back, but they also seem prepared. 528 00:26:23,400 --> 00:26:25,440 Speaker 10: Although I will say I do think she might need 529 00:26:25,440 --> 00:26:29,040 Speaker 10: to get out there and start making that money competition 530 00:26:29,119 --> 00:26:31,360 Speaker 10: a little more, even because the more districts you have, 531 00:26:31,480 --> 00:26:34,000 Speaker 10: the more you have to spend in order to ensure 532 00:26:34,119 --> 00:26:37,080 Speaker 10: that your candidates get across the finish line. But you 533 00:26:37,200 --> 00:26:40,760 Speaker 10: heard her on message talking about affordability, talking about the 534 00:26:40,800 --> 00:26:43,240 Speaker 10: impact in the districts, and you also heard her talk 535 00:26:43,440 --> 00:26:45,639 Speaker 10: about the quality of the candidates. I think people are 536 00:26:45,640 --> 00:26:47,920 Speaker 10: really stepping forward. We saw that with the first time 537 00:26:47,960 --> 00:26:50,560 Speaker 10: candidate in the Florida race and then again in the 538 00:26:50,560 --> 00:26:55,159 Speaker 10: special elections that we really have incredibly strong, diverse candidates 539 00:26:55,480 --> 00:26:59,600 Speaker 10: that who are really from and built by the districts 540 00:26:59,600 --> 00:27:02,240 Speaker 10: that they're running in. So that will be the secret 541 00:27:02,280 --> 00:27:04,560 Speaker 10: to their success if the Democrats are able to pull 542 00:27:04,560 --> 00:27:06,919 Speaker 10: it off come fall, and Republicans have a lot to 543 00:27:06,960 --> 00:27:10,040 Speaker 10: contend with and President Trump, with the Warren Iran and 544 00:27:10,520 --> 00:27:13,600 Speaker 10: many of his other moves, is not helping them. 545 00:27:14,440 --> 00:27:17,280 Speaker 7: Really great panel, Rick Davis and Laura Fink, We thank 546 00:27:17,320 --> 00:27:19,639 Speaker 7: you both so much for the insights. This has been 547 00:27:19,640 --> 00:27:22,359 Speaker 7: a very productive half hour. As a matter of fact, Kayleie, 548 00:27:22,359 --> 00:27:23,760 Speaker 7: I love this when we have a chance to talk 549 00:27:23,800 --> 00:27:26,199 Speaker 7: with members from both sides of the aisle. Distill it 550 00:27:26,240 --> 00:27:27,679 Speaker 7: with the panel here and it really gives us a 551 00:27:27,720 --> 00:27:30,639 Speaker 7: sense of the uncertainty here that's being reflected in the markets. 552 00:27:30,800 --> 00:27:32,359 Speaker 5: Stay with us on balance of power. 553 00:27:32,400 --> 00:27:34,200 Speaker 4: We'll have much more coming up after. 554 00:27:34,000 --> 00:27:41,440 Speaker 2: This, you're listening to the Bloomberg Balance of Power podcast. 555 00:27:41,680 --> 00:27:44,840 Speaker 2: Catch us live weekdays at noon and five pm Eastern 556 00:27:44,960 --> 00:27:48,400 Speaker 2: on Apple Cocklay and Android Auto with the Bloomberg Business App. 557 00:27:48,440 --> 00:27:51,480 Speaker 2: You can also listen live on Amazon Alexa from our 558 00:27:51,520 --> 00:27:56,000 Speaker 2: flagship New York station. Just say Alexa play Bloomberg eleven thirty. 559 00:27:57,400 --> 00:27:59,240 Speaker 5: So we're back in this same world. 560 00:27:59,320 --> 00:28:04,080 Speaker 7: Stocks and gold down, oil and interest rates up, with 561 00:28:04,200 --> 00:28:07,359 Speaker 7: great concern about what might happen next in the Middle East, 562 00:28:07,359 --> 00:28:11,600 Speaker 7: and ahead of our conversation with retired Admiral John Kirby, 563 00:28:11,640 --> 00:28:13,479 Speaker 7: and it's one that we've been really looking forward to. 564 00:28:13,520 --> 00:28:15,919 Speaker 7: I'll just bring you back to the cabinet meeting with 565 00:28:16,080 --> 00:28:20,119 Speaker 7: President Trump. So many questions, so few answers, and mixed 566 00:28:20,119 --> 00:28:24,000 Speaker 7: messages when it comes to the potential for negotiating a deal, 567 00:28:24,160 --> 00:28:27,400 Speaker 7: presidents saying they're a lousy fighters, but they're great negotiators. 568 00:28:27,440 --> 00:28:29,919 Speaker 7: They're begging to work out a deal. I went on 569 00:28:30,000 --> 00:28:31,359 Speaker 7: to say, I don't know if we'll be able to 570 00:28:31,400 --> 00:28:34,840 Speaker 7: do that. I don't know if we're willing to do 571 00:28:34,880 --> 00:28:37,080 Speaker 7: that yet. At the same time, he talked about the 572 00:28:37,119 --> 00:28:40,560 Speaker 7: so called present that he was given by Iran. He 573 00:28:40,760 --> 00:28:42,880 Speaker 7: teased reporters with this a couple of days ago and 574 00:28:42,920 --> 00:28:45,440 Speaker 7: actually identified what that present was. 575 00:28:45,480 --> 00:28:45,800 Speaker 5: Today. 576 00:28:45,840 --> 00:28:50,080 Speaker 6: Listen, they said, to show you the fact that we're 577 00:28:50,080 --> 00:28:53,440 Speaker 6: real and solid and. 578 00:28:53,360 --> 00:28:56,280 Speaker 1: We're there, we're going to let you have eight boats 579 00:28:56,280 --> 00:28:56,640 Speaker 1: of oil. 580 00:28:56,760 --> 00:28:58,720 Speaker 6: I said, well, I guess we're dealing with the right people. 581 00:28:58,960 --> 00:29:01,360 Speaker 1: And actually they then. 582 00:29:01,240 --> 00:29:03,800 Speaker 6: Apologize for something they said, and they said, we're going 583 00:29:03,840 --> 00:29:07,240 Speaker 6: to send two more boats, and it ended up being 584 00:29:07,240 --> 00:29:10,160 Speaker 6: ten boats. And I hope I haven't screwed up your negotiations. 585 00:29:10,240 --> 00:29:12,560 Speaker 6: But I thought it was appropriate to say because I 586 00:29:12,640 --> 00:29:15,600 Speaker 6: did taught you the other day by saying they going 587 00:29:15,640 --> 00:29:16,520 Speaker 6: to give us a present. 588 00:29:18,720 --> 00:29:21,720 Speaker 3: So when we considered the Strait of Horrormus and this conflict, 589 00:29:22,160 --> 00:29:24,080 Speaker 3: we will speak now, as Joe said, with someone who 590 00:29:24,160 --> 00:29:27,160 Speaker 3: is not only experienced having naval experience in this theater, 591 00:29:27,240 --> 00:29:31,760 Speaker 3: but also experienced in communicating around armed conflict and national security. 592 00:29:31,800 --> 00:29:33,800 Speaker 3: Retired Real Admiral John Kirby is with us, of course, 593 00:29:33,840 --> 00:29:37,200 Speaker 3: the former White House National Security Communications Advisor in the 594 00:29:37,240 --> 00:29:40,360 Speaker 3: Biden administration. Thank you so much for being here on 595 00:29:40,400 --> 00:29:41,760 Speaker 3: Bloomberg TV and Radio. 596 00:29:42,360 --> 00:29:44,560 Speaker 1: Admire. Obviously you know this area well. 597 00:29:44,640 --> 00:29:47,400 Speaker 3: If Iran is giving us gifts of allowing vessels to 598 00:29:47,440 --> 00:29:50,240 Speaker 3: pass through the strait if they're charging others some two 599 00:29:50,280 --> 00:29:52,520 Speaker 3: million dollars in order to do so. One could argue 600 00:29:52,520 --> 00:29:56,600 Speaker 3: that is Iran being able to continually exercise control over 601 00:29:56,680 --> 00:30:00,200 Speaker 3: this waterway. Is the US Navy alone able of to 602 00:30:00,200 --> 00:30:01,880 Speaker 3: wrestle that control back? 603 00:30:01,960 --> 00:30:02,680 Speaker 1: What would it take? 604 00:30:03,960 --> 00:30:06,120 Speaker 14: It would take more than the US Navy. I did 605 00:30:06,160 --> 00:30:09,960 Speaker 14: convoy escort operations back in the eighties when President Reagan 606 00:30:10,040 --> 00:30:12,280 Speaker 14: sent us there to do exactly the same thing, make 607 00:30:12,320 --> 00:30:15,280 Speaker 14: sure that the oil traffic could flow in and out safely. 608 00:30:15,320 --> 00:30:17,560 Speaker 14: And we didn't do it alone back then, and I 609 00:30:17,600 --> 00:30:19,520 Speaker 14: really don't think that the US Navy wants to or 610 00:30:19,600 --> 00:30:22,320 Speaker 14: can do it alone today. And obviously we're the most 611 00:30:22,320 --> 00:30:24,640 Speaker 14: powerful navy in the world. We have a lot of capabilities, 612 00:30:24,640 --> 00:30:28,280 Speaker 14: and certainly our destroyers can conduct these kinds of convoy escorts. 613 00:30:28,880 --> 00:30:32,800 Speaker 14: But it's dangerous, it's slow, it's time consuming, it's resource intensive. 614 00:30:33,160 --> 00:30:34,600 Speaker 1: It's going to require a lot more. 615 00:30:34,440 --> 00:30:36,120 Speaker 14: Ships than the US Navy is going to be able 616 00:30:36,120 --> 00:30:39,000 Speaker 14: to afford to that mission. It could take, you know, 617 00:30:39,080 --> 00:30:41,040 Speaker 14: just to get through the Just to go through the 618 00:30:41,040 --> 00:30:45,040 Speaker 14: strait itself, that's a good half a day transit. But 619 00:30:45,160 --> 00:30:47,160 Speaker 14: depending on how long the route is where you're picking 620 00:30:47,160 --> 00:30:48,920 Speaker 14: the convoy up and where you're dropping it off. I 621 00:30:48,920 --> 00:30:51,680 Speaker 14: mean it could take days to a week, and with 622 00:30:51,800 --> 00:30:53,920 Speaker 14: the traffic shut down the way it's been the last 623 00:30:54,200 --> 00:30:57,560 Speaker 14: few weeks, it's going to take a while before confidence 624 00:30:57,560 --> 00:31:00,560 Speaker 14: can be grown enough in the shipping industry to get 625 00:31:00,600 --> 00:31:04,200 Speaker 14: back to anything near the semblance of traffic that was 626 00:31:04,280 --> 00:31:06,000 Speaker 14: going through before this conflict started. 627 00:31:07,000 --> 00:31:09,920 Speaker 5: Well, this is incredibly helpful, Admiral. It's great to see you. 628 00:31:10,000 --> 00:31:11,760 Speaker 7: It's been a long time since we've heard from you 629 00:31:11,800 --> 00:31:13,800 Speaker 7: here on Bloomberg, and so I'd like to hear a 630 00:31:13,800 --> 00:31:15,800 Speaker 7: little bit more based on your experience of what it 631 00:31:15,840 --> 00:31:18,640 Speaker 7: would take to reopen the Straight militarily, because it's been 632 00:31:18,680 --> 00:31:21,080 Speaker 7: suggested that we would need to have a full blown 633 00:31:21,120 --> 00:31:24,080 Speaker 7: stand up, a full blown no fly zone to help 634 00:31:24,120 --> 00:31:27,000 Speaker 7: protect the naval vessels who would be escorting ships. The 635 00:31:27,040 --> 00:31:30,880 Speaker 7: President has talked about volume that he needed the help 636 00:31:30,920 --> 00:31:33,040 Speaker 7: of our NATO allies, which he now says he never 637 00:31:33,120 --> 00:31:36,640 Speaker 7: needed to be able to create the scale. Is that correct? 638 00:31:36,720 --> 00:31:38,840 Speaker 7: Is that the approach the administration should be taking. 639 00:31:39,920 --> 00:31:42,280 Speaker 14: Yes, And I was glad to hear the President when 640 00:31:42,320 --> 00:31:45,560 Speaker 14: he did talk about the need for allies and partners. 641 00:31:45,160 --> 00:31:45,680 Speaker 4: To chip In. 642 00:31:45,880 --> 00:31:47,520 Speaker 14: I think he was one hundred percent right on that. 643 00:31:47,640 --> 00:31:50,440 Speaker 14: And back to the origin of your question is because 644 00:31:50,600 --> 00:31:52,719 Speaker 14: it's not just about convoys. It's not just about a 645 00:31:52,760 --> 00:31:55,000 Speaker 14: man on man kind of defense, you know, putting ships 646 00:31:55,040 --> 00:32:00,840 Speaker 14: with oil tankers. It's about ISR, intelligence, surveill and reconnaissance. 647 00:32:00,840 --> 00:32:03,640 Speaker 14: You have to have eyes on over that straight twenty 648 00:32:03,640 --> 00:32:05,520 Speaker 14: four to seven so that you can see anything the 649 00:32:05,560 --> 00:32:08,080 Speaker 14: Iranians might or might not be doing. You need good 650 00:32:08,120 --> 00:32:11,160 Speaker 14: and that requires again a lot of resources from the air. 651 00:32:11,840 --> 00:32:14,880 Speaker 14: You're certainly gonna need seaborne assets, and you need to 652 00:32:14,960 --> 00:32:17,560 Speaker 14: worry about not just the mines. It's not just floating 653 00:32:17,600 --> 00:32:19,680 Speaker 14: mines that the Iranians could put in the water or 654 00:32:19,720 --> 00:32:21,080 Speaker 14: even seabed mines. 655 00:32:21,640 --> 00:32:24,720 Speaker 1: It's their drones. I'm mostly concerned about the drones, air 656 00:32:24,800 --> 00:32:27,560 Speaker 1: drones and sea drones. Sea drones can attack by stealth. 657 00:32:27,600 --> 00:32:29,720 Speaker 1: Air drones can be very very hard to knock down. 658 00:32:29,760 --> 00:32:32,520 Speaker 14: They're very slow, slow moving, but they fly close to 659 00:32:32,560 --> 00:32:34,520 Speaker 14: the level of the water. They can be hard to 660 00:32:34,600 --> 00:32:36,640 Speaker 14: knock it out of the sky. And all it takes 661 00:32:36,720 --> 00:32:39,440 Speaker 14: is one one of those things, whether it's a missile, 662 00:32:40,040 --> 00:32:43,000 Speaker 14: a drone, air or seaborne, and of course of mind 663 00:32:43,000 --> 00:32:46,040 Speaker 14: to get through to shut down traffic for potentially weeks. 664 00:32:46,640 --> 00:32:47,840 Speaker 1: So it's a very. 665 00:32:47,680 --> 00:32:50,560 Speaker 14: Difficult thing to defend against, and it would require an 666 00:32:50,600 --> 00:32:52,760 Speaker 14: awful lot of assets in an awful lot of time. 667 00:32:54,560 --> 00:32:59,760 Speaker 3: How would two Marine expeditionary units and thousands of troops 668 00:32:59,800 --> 00:33:02,640 Speaker 3: from the eighty second Airborne contribute to a mission like 669 00:33:02,760 --> 00:33:06,840 Speaker 3: this or another mission? Admiral, what exactly do you think 670 00:33:06,880 --> 00:33:09,480 Speaker 3: we could be getting ready for as we position these 671 00:33:09,520 --> 00:33:12,000 Speaker 3: thousands of other American service members into this theater? 672 00:33:13,320 --> 00:33:15,760 Speaker 1: Difficult to know, of course, what the administration's planning. 673 00:33:15,760 --> 00:33:18,800 Speaker 14: But if we're just going to talk about the Straits straight, 674 00:33:19,320 --> 00:33:21,920 Speaker 14: the Marines could be helpful if you wanted to go 675 00:33:21,960 --> 00:33:25,280 Speaker 14: after a couple of the small islands that bound the Strait, 676 00:33:25,760 --> 00:33:29,280 Speaker 14: which are in Iranian control and therefore could be used 677 00:33:29,280 --> 00:33:31,920 Speaker 14: by the Iranians as bases to launch drones or even 678 00:33:31,920 --> 00:33:34,719 Speaker 14: small boat attacks. So you could put the Marines on 679 00:33:34,760 --> 00:33:37,480 Speaker 14: those islands and help again restore a little bit of 680 00:33:37,520 --> 00:33:40,320 Speaker 14: confidence in the shipping industry that you got eyes on, 681 00:33:40,360 --> 00:33:42,040 Speaker 14: that you've got a presence, and that you have the 682 00:33:42,080 --> 00:33:46,120 Speaker 14: ability to defeat Iranian threats. There's also talk, I know 683 00:33:46,200 --> 00:33:49,920 Speaker 14: about maybe using the Marines to assault Karg Island, which 684 00:33:49,960 --> 00:33:51,360 Speaker 14: is that island way up in the. 685 00:33:51,320 --> 00:33:53,200 Speaker 1: North of the Gulf, right off the. 686 00:33:53,160 --> 00:33:55,600 Speaker 14: Coast of Iran, about about fifteen sixteen miles off the. 687 00:33:55,520 --> 00:33:57,680 Speaker 1: Coast that they use for infrastructure. 688 00:33:57,720 --> 00:34:02,360 Speaker 14: That's kind of their report of departure and embarkation for 689 00:34:02,400 --> 00:34:04,560 Speaker 14: all the oil that comes out of the Gulf. And 690 00:34:04,640 --> 00:34:06,680 Speaker 14: so there's been talking about maybe the RINGS taking that over. 691 00:34:06,800 --> 00:34:09,240 Speaker 14: That is a much taller order, It's a bigger island, 692 00:34:09,760 --> 00:34:11,600 Speaker 14: and I suspect that the Iranians are going to want 693 00:34:11,600 --> 00:34:13,600 Speaker 14: to defend it. In fact, I saw press reports today 694 00:34:13,640 --> 00:34:17,520 Speaker 14: that they're already fortifying Carg Island and anticipation of some 695 00:34:17,600 --> 00:34:21,360 Speaker 14: kind of amphibious assault. And then, of course there's always 696 00:34:21,400 --> 00:34:24,680 Speaker 14: the other option here, which when you have the eighty 697 00:34:24,719 --> 00:34:27,480 Speaker 14: second Airborne coming it certainly you can't it can't ignore 698 00:34:27,520 --> 00:34:30,720 Speaker 14: it as an option is the potential to put US 699 00:34:30,960 --> 00:34:34,720 Speaker 14: troops on the ground in mainland Iran, in the area 700 00:34:34,800 --> 00:34:38,000 Speaker 14: around the Strait sort of southern Iran, to try to 701 00:34:38,040 --> 00:34:41,720 Speaker 14: prevent the Iranians from using their coastal facilities to attack 702 00:34:42,040 --> 00:34:45,240 Speaker 14: ships in the Strait. That is a much much taller 703 00:34:45,360 --> 00:34:48,960 Speaker 14: order for the US military and would require an awful 704 00:34:48,960 --> 00:34:52,680 Speaker 14: out of planning, organization, coordination, and of course time, and 705 00:34:52,680 --> 00:34:55,280 Speaker 14: of course it's very risky, very risky. 706 00:34:55,280 --> 00:34:55,640 Speaker 4: Indeed. 707 00:34:56,640 --> 00:34:59,360 Speaker 7: Yeah, I don't know if these are in some of 708 00:34:59,400 --> 00:35:03,600 Speaker 7: the documents, the classified documents that the President had at 709 00:35:03,640 --> 00:35:07,920 Speaker 7: mar A Lago that mapped out Iran battle plans, Admiral, 710 00:35:08,000 --> 00:35:10,719 Speaker 7: but we are seeing reports today that the Pentagon is 711 00:35:10,800 --> 00:35:13,799 Speaker 7: developing options for what they're calling a final blow, and 712 00:35:13,880 --> 00:35:17,359 Speaker 7: occupying Krg Island is one of them, as well as 713 00:35:17,440 --> 00:35:20,600 Speaker 7: invading Larok, if I'm pronouncing it right, the island that 714 00:35:20,640 --> 00:35:23,720 Speaker 7: helps Iran keep control of the Strait of Horror Mouz 715 00:35:23,800 --> 00:35:28,080 Speaker 7: and seizing the island of Abu Musa to that same extent. 716 00:35:28,200 --> 00:35:30,920 Speaker 7: Are these battle plans that you have seen for years? 717 00:35:30,920 --> 00:35:33,520 Speaker 7: Are these options that the Pentagon has been looking at 718 00:35:33,640 --> 00:35:36,920 Speaker 7: for other administrations as well well. 719 00:35:36,960 --> 00:35:40,600 Speaker 14: I won't get into the details of operational planning or 720 00:35:40,600 --> 00:35:42,920 Speaker 14: what I was cognizant of when I was in the uniform, 721 00:35:42,960 --> 00:35:45,960 Speaker 14: but I can tell you that the US military has 722 00:35:46,000 --> 00:35:49,000 Speaker 14: long been looking at threats to the Strait by Iran 723 00:35:49,160 --> 00:35:52,359 Speaker 14: and coming up with contingency plans for how to deal 724 00:35:52,400 --> 00:35:54,960 Speaker 14: with those threats. I have no doubt that after I 725 00:35:55,080 --> 00:35:58,400 Speaker 14: left service, the US military and Central Command continue to 726 00:35:58,400 --> 00:36:01,880 Speaker 14: refine those plans and those continuecy operations. I'll leave it 727 00:36:01,920 --> 00:36:03,960 Speaker 14: to the planners to speak about what they're thinking or 728 00:36:04,360 --> 00:36:06,440 Speaker 14: what they may not be able to do. I would 729 00:36:06,440 --> 00:36:09,200 Speaker 14: just tell you that if you're going to introduce ground troops, 730 00:36:09,280 --> 00:36:12,000 Speaker 14: and that certainly appears to be an option the President 731 00:36:12,040 --> 00:36:15,840 Speaker 14: has not eschewed, there is a whole new level of 732 00:36:15,920 --> 00:36:18,759 Speaker 14: risk here, and quite frankly, a whole new. 733 00:36:18,719 --> 00:36:20,879 Speaker 1: Level of potential escalation of the war. 734 00:36:20,920 --> 00:36:23,440 Speaker 14: Once you insert troops on the ground, then you're in 735 00:36:23,480 --> 00:36:24,239 Speaker 14: a different kind of. 736 00:36:24,160 --> 00:36:25,319 Speaker 1: Fight than we are right now. 737 00:36:26,760 --> 00:36:29,680 Speaker 3: Well, of course, the President hasn't ruled that out entirely. 738 00:36:29,680 --> 00:36:31,480 Speaker 3: And to your point about there being some things that 739 00:36:31,520 --> 00:36:34,799 Speaker 3: you are not able to communicate publicly, obviously things can 740 00:36:34,840 --> 00:36:38,040 Speaker 3: be classified for a reason, and strategic ambiguity can be 741 00:36:38,200 --> 00:36:40,840 Speaker 3: a real strategy. But I wonder if you see the 742 00:36:40,880 --> 00:36:45,399 Speaker 3: administration as kind of straddling the line of not having credibility, 743 00:36:45,440 --> 00:36:49,480 Speaker 3: either as they seem to President Trump or the Secretary 744 00:36:49,440 --> 00:36:52,680 Speaker 3: of State, the Defense Secretary, others aren't necessarily sending a 745 00:36:52,719 --> 00:36:55,480 Speaker 3: consistent message as to what it is we are not 746 00:36:55,520 --> 00:36:57,400 Speaker 3: only trying to do, but what it is we're willing 747 00:36:57,440 --> 00:36:58,359 Speaker 3: to do to get there. 748 00:36:59,880 --> 00:37:03,000 Speaker 14: It's an interesting question, and I think why I spent 749 00:37:03,040 --> 00:37:05,120 Speaker 14: a lot of my time focusing on the Pentagon briefings. 750 00:37:05,160 --> 00:37:07,080 Speaker 14: I wish they did more. I wish they had more 751 00:37:07,080 --> 00:37:09,960 Speaker 14: traditional media in the briefing room. But when you listen 752 00:37:10,040 --> 00:37:12,239 Speaker 14: to General Kine, the Chairman of the Joint Chief's talk, 753 00:37:12,320 --> 00:37:14,400 Speaker 14: or when you watch the videos by Admiral Cooper, the 754 00:37:14,400 --> 00:37:17,080 Speaker 14: Central Command commander, you do get a clear sense of 755 00:37:17,080 --> 00:37:20,080 Speaker 14: what they believe. Their military objectives are, what they've been 756 00:37:20,239 --> 00:37:23,239 Speaker 14: ordered by the Commander in chief to do, and it's 757 00:37:23,280 --> 00:37:23,880 Speaker 14: pretty simple. 758 00:37:23,920 --> 00:37:25,400 Speaker 1: They're pretty limited objectives. 759 00:37:25,760 --> 00:37:28,680 Speaker 14: But then when you listen to the political messaging, it 760 00:37:28,719 --> 00:37:30,440 Speaker 14: does tend to be all over the map, and it's 761 00:37:30,560 --> 00:37:33,600 Speaker 14: very hard on any given data. Is it unconditional surrender, 762 00:37:33,680 --> 00:37:36,319 Speaker 14: is it regime change, is it just the is it 763 00:37:36,640 --> 00:37:39,879 Speaker 14: just the nuclear program? Or now you know we're talking 764 00:37:39,880 --> 00:37:42,960 Speaker 14: about maybe going after energy infrastructure on the ground in Iran. 765 00:37:43,600 --> 00:37:45,360 Speaker 1: There's a lot of mixed messaging. 766 00:37:47,280 --> 00:37:50,759 Speaker 14: This administration might contend that that's good, that that is 767 00:37:50,800 --> 00:37:54,640 Speaker 14: strategic ambiguity, that that confuses the Iranians. But if you 768 00:37:54,719 --> 00:37:57,480 Speaker 14: are in fact in the middle of negotiations, if you 769 00:37:57,520 --> 00:37:59,440 Speaker 14: are trying to end this diplomatically. 770 00:37:59,680 --> 00:38:01,600 Speaker 1: The clarity and concision in. 771 00:38:01,600 --> 00:38:05,439 Speaker 14: Message is absolutely vital, not just for the public that's 772 00:38:05,480 --> 00:38:08,319 Speaker 14: paying attention like you and I are, but for the Iranians, 773 00:38:08,320 --> 00:38:10,880 Speaker 14: for your enemy, and for your allies Israel. 774 00:38:11,080 --> 00:38:13,320 Speaker 1: And it's not clear to me that the Israelis share. 775 00:38:13,160 --> 00:38:15,680 Speaker 14: The same strategic objectives as the United States in here, 776 00:38:15,719 --> 00:38:18,040 Speaker 14: and they get a vote in how and whether this 777 00:38:18,120 --> 00:38:22,000 Speaker 14: war ends. So clarity and concision and simplicity in the 778 00:38:22,000 --> 00:38:26,320 Speaker 14: message as you approach negotiations is absolutely vital, and I 779 00:38:26,400 --> 00:38:28,839 Speaker 14: would hope that we'd be able to see a little 780 00:38:28,840 --> 00:38:30,279 Speaker 14: bit more of that than we have in the last 781 00:38:30,360 --> 00:38:31,279 Speaker 14: couple of days. 782 00:38:32,120 --> 00:38:32,520 Speaker 5: Admiral you. 783 00:38:32,560 --> 00:38:35,280 Speaker 7: Of course, we're appointed Pentagon Press Secretary by Chuck Hagel 784 00:38:35,520 --> 00:38:38,040 Speaker 7: when he was the Defense Secretary, so you know what 785 00:38:38,080 --> 00:38:40,080 Speaker 7: it's like to stand up in front of that room 786 00:38:40,120 --> 00:38:43,279 Speaker 7: and manage a press corps in a very sensitive environment here. 787 00:38:43,320 --> 00:38:45,040 Speaker 5: And I'm curious what you. 788 00:38:45,040 --> 00:38:48,080 Speaker 7: Make of the posture that this Pentagon has taken when 789 00:38:48,160 --> 00:38:50,400 Speaker 7: it comes to journalists. Of course, we just saw a 790 00:38:50,520 --> 00:38:53,640 Speaker 7: recent court ruling in favor of a lawsuit brought by 791 00:38:53,680 --> 00:38:56,760 Speaker 7: The New York Times that struck down the administration's decision 792 00:38:56,800 --> 00:39:00,640 Speaker 7: to curtail the activities of reporters, and in response to 793 00:39:01,120 --> 00:39:03,759 Speaker 7: that ruling, the Pentagon says it's going to be kicking 794 00:39:03,800 --> 00:39:06,280 Speaker 7: reporters out of the building altogether. They'll build an annex, 795 00:39:06,360 --> 00:39:09,359 Speaker 7: some sort of outhouse on the property where reporters will 796 00:39:09,400 --> 00:39:12,040 Speaker 7: purportedly be allowed to work, although they still won't be 797 00:39:12,040 --> 00:39:15,799 Speaker 7: allowed to solicit information even if it is not deemed classified. 798 00:39:15,880 --> 00:39:18,240 Speaker 5: Is this all good for the country. 799 00:39:18,840 --> 00:39:21,440 Speaker 14: I think it's not only not good for the country, 800 00:39:21,480 --> 00:39:23,360 Speaker 14: it's not good for the Pentagon. It's not good for 801 00:39:23,480 --> 00:39:27,920 Speaker 14: mister Hegseith and his leadership and for what they're trying 802 00:39:27,920 --> 00:39:30,799 Speaker 14: to communicate about the war efforts. So I really hope 803 00:39:30,800 --> 00:39:34,600 Speaker 14: that they revisit these policies and begin to allow more 804 00:39:35,040 --> 00:39:38,160 Speaker 14: briefings to occur and more media to be in the 805 00:39:38,200 --> 00:39:40,200 Speaker 14: briefing room for them, and to have the press back 806 00:39:40,200 --> 00:39:43,399 Speaker 14: in the building I think is important. Look, when you're 807 00:39:43,400 --> 00:39:46,080 Speaker 14: talking about issues of life and death, war and peace, 808 00:39:46,400 --> 00:39:49,640 Speaker 14: when you're talking about the US military and the billions 809 00:39:49,640 --> 00:39:53,160 Speaker 14: of dollars the American people are spending on their national defense, 810 00:39:53,239 --> 00:39:57,120 Speaker 14: and literally millions of sons and daughters who are in uniform, 811 00:39:57,840 --> 00:40:00,680 Speaker 14: the Pentagon has an obligation privilege. 812 00:40:00,719 --> 00:40:01,919 Speaker 1: It's not an opportunity. 813 00:40:02,040 --> 00:40:05,560 Speaker 14: It's an obligation to explain what they're doing with those 814 00:40:05,600 --> 00:40:08,640 Speaker 14: tax dollars and with those young men and women in uniform, 815 00:40:08,800 --> 00:40:12,200 Speaker 14: and how they're using those resources to keep the country safe. 816 00:40:12,960 --> 00:40:15,600 Speaker 14: It's an absolutely sacred obligation. And I always looked at 817 00:40:15,600 --> 00:40:17,760 Speaker 14: it that way from the podium, so did Secretary Hegel 818 00:40:17,800 --> 00:40:20,080 Speaker 14: when I worked for him, Secretary Austin when I worked 819 00:40:20,120 --> 00:40:22,040 Speaker 14: for him, that we had an obligation to get up 820 00:40:22,040 --> 00:40:24,480 Speaker 14: there and explain ourselves. The other thing I would say 821 00:40:24,480 --> 00:40:27,720 Speaker 14: about access to the press and having the Pentagon Press 822 00:40:28,120 --> 00:40:30,880 Speaker 14: there with you all day long, and they were with 823 00:40:30,960 --> 00:40:31,840 Speaker 14: me all day long. 824 00:40:31,719 --> 00:40:33,960 Speaker 1: Is it makes you a better spokesman. It makes you 825 00:40:34,040 --> 00:40:34,600 Speaker 1: a better. 826 00:40:34,400 --> 00:40:37,320 Speaker 14: Policy leader because you get to hear what they're hearing 827 00:40:37,320 --> 00:40:40,120 Speaker 14: from their sources. You get to understand what stories they're 828 00:40:40,160 --> 00:40:42,600 Speaker 14: working on. You get an opportunity to maybe shape their 829 00:40:42,640 --> 00:40:46,200 Speaker 14: thinking about those stories. And I think you also quite 830 00:40:46,200 --> 00:40:49,080 Speaker 14: critically get a chance to make better policy, because there's 831 00:40:49,120 --> 00:40:52,400 Speaker 14: nothing better for policy than to throw it open to 832 00:40:52,480 --> 00:40:55,640 Speaker 14: the scrutiny of an independent press every day and let 833 00:40:55,680 --> 00:40:57,919 Speaker 14: them poke holes in it, let them ask the tough 834 00:40:58,000 --> 00:41:00,160 Speaker 14: questions you can ask, say if you're a why and 835 00:41:00,200 --> 00:41:02,840 Speaker 14: you're humble, as secretary of Hegel and Austin were, you'll 836 00:41:02,920 --> 00:41:04,320 Speaker 14: change your mind from time to time. 837 00:41:05,440 --> 00:41:07,920 Speaker 7: Spoken by someone who's been there. Admiral, it's great to 838 00:41:07,920 --> 00:41:09,759 Speaker 7: see you. We'd like to stay in touch with you 839 00:41:10,320 --> 00:41:13,320 Speaker 7: as this entire story progresses. John Kirby, retired rear admiral, 840 00:41:13,360 --> 00:41:16,960 Speaker 7: former White House National Security Comms advisor, and a fascinating 841 00:41:17,000 --> 00:41:19,120 Speaker 7: conversation you're only going to hear today on Bloomberg. 842 00:41:21,520 --> 00:41:23,960 Speaker 5: Thanks for listening to the Balance of Power podcast. 843 00:41:24,600 --> 00:41:27,719 Speaker 7: Make sure to subscribe if you haven't already, at Apple, Spotify, 844 00:41:27,800 --> 00:41:30,399 Speaker 7: or wherever you get your podcasts, and you can find 845 00:41:30,440 --> 00:41:33,239 Speaker 7: us live every weekday from Washington, DC at New Time 846 00:41:33,320 --> 00:41:35,440 Speaker 7: Eastern at Bloomberg dot com.