WEBVTT - White House Senior Counselor for Trade & Manufacturing Talks US Dealing With an Economic Emergency

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>The White House vound to a pale after a federal

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<v Speaker 2>court ruled against President Donald Trump's Liberation Day tariffs, joining

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<v Speaker 2>us now to discuss the seeing a White House Trade

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<v Speaker 2>advisor Peter Navara Dot Navara, Welcome back to the program Sir.

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<v Speaker 2>First of all, I think we've got to get into

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<v Speaker 2>the ruling overnight. Have you spoken to the President and

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<v Speaker 2>ultimately what's this reaction to what we heard.

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<v Speaker 1>Haven't spoken to the president yet, but they've spoken to

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<v Speaker 1>people who have spoken to the President. Lord, We're in

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<v Speaker 1>a situation now.

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<v Speaker 3>Big picture here is i IPO.

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<v Speaker 1>We were using the International Emergency Economic Powers Act. There's

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<v Speaker 1>no question that there's an economic emergency with respect of

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<v Speaker 1>both uses.

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<v Speaker 3>That we had.

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<v Speaker 1>One is we are in a world where China has

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<v Speaker 1>killed over a million Americans with fatanyl poison, and we

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<v Speaker 1>took this step to stop that. We will continue to

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<v Speaker 1>press on that. At the same time, we invoke that

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<v Speaker 1>rule to stop what has been twenty million illegal abling

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<v Speaker 1>and streaming into our country, driving down wages, taking jobs away.

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<v Speaker 1>That's an economic emergency. On top of that, the world

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<v Speaker 1>continues to steal about trillion dollars a year and is

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<v Speaker 1>measured by the trade deficit, and that's an economic emergency

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<v Speaker 1>because it's transferring our wealth abroad. So we think we

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<v Speaker 1>have a strong case. Yes, we will immediately appeal and

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<v Speaker 1>try to stay the ruling. But at the same time,

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<v Speaker 1>the court, interestingly enough, basically said we were right, just

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<v Speaker 1>use different rules and laws. So nothing has really changed

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<v Speaker 1>here in that sense. We're still as we speak, having

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<v Speaker 1>countries call us and tell us they want a deal.

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<v Speaker 1>So these deals are going to happen. So that's kind

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<v Speaker 1>of where we're at. And it's troublesome here because if

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<v Speaker 1>you look broadly at the pattern, we've got courts in

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<v Speaker 1>this country who are basically engaged in attacks on the

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<v Speaker 1>American people. The President ran on stopping the fentanyl poison,

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<v Speaker 1>stopping international trade unfair practices from stealing our factories and jobs,

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<v Speaker 1>and courts keep getting in the way of that. The

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<v Speaker 1>court's getting the way of our trying to deal with

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<v Speaker 1>the border issues. Now they're getting in the way of

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<v Speaker 1>our trying to deal with the fentanyl crisis. And that's

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<v Speaker 1>where we stand here. And I think part of what's

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<v Speaker 1>going to be important about this ruling demonstrates yet again

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<v Speaker 1>to the American people that the judiciary in this country

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<v Speaker 1>has been weaponized ways which are contrary to their interests.

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<v Speaker 2>Well, Pety, you would have heard a lot of people

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<v Speaker 2>come on this program and ultimately say, you still have

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<v Speaker 2>tons of options, and you've alluded to one of them.

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<v Speaker 2>You will, of course appeal, but could you describe what

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<v Speaker 2>you might do in the interim, the way you might

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<v Speaker 2>pursue your ultimate objective anyway, with the tools you have

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<v Speaker 2>still available to you.

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<v Speaker 1>I'm gonna let Jamison Greer, the USTR, inform you on that,

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<v Speaker 1>and you'll be hearing from him soon on that. But look,

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<v Speaker 1>any trade lawyer knows there's just a number of different

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<v Speaker 1>options we can take. If you look at the kind

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<v Speaker 1>of things we've already done, it kind of give you

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<v Speaker 1>a roadmap on that. There's all sorts of numbers out there.

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<v Speaker 1>There's one twenty two, there's three oho one, there's two

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<v Speaker 1>thirty two, there's three, three eight.

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<v Speaker 3>There's all sorts of things we can do well within

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<v Speaker 3>the law.

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<v Speaker 1>But look, we think that what we've done already is

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<v Speaker 1>perfectly ap So that's why the appeal will take case.

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<v Speaker 1>But you know, it's like interesting enough, I was scheduled

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<v Speaker 1>to come on the program today to talk about the

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<v Speaker 1>bond market and the Big Beautiful tax bill. But there

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<v Speaker 1>is a there is a bridge to that, and if

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<v Speaker 1>I may, we have a situation where the bond market

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<v Speaker 1>we've seen like a fifty to fifty basis point increase

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<v Speaker 1>in yields in the ten year.

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<v Speaker 3>Since April second.

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<v Speaker 1>And a lot of the hysteria around the Big Beautiful

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<v Speaker 1>tax bill centers on the Congressional Budget Office scoring that

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<v Speaker 1>bill in a way which says there's going to be

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<v Speaker 1>a three point seven trillion dollar addition to America's national

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<v Speaker 1>debt over the next ten years, and so of course

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<v Speaker 1>you got to finance that, and that drives interest rates

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<v Speaker 1>up and heads explode, when in fact, if you do

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<v Speaker 1>the math properly and you like look at his the

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<v Speaker 1>history of the CBO forecast, you actually see about a

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<v Speaker 1>five trillion dollar swing to a two trillion dollar surplus

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<v Speaker 1>from the bill. And I'd like to get you walk.

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<v Speaker 3>You through the map there.

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<v Speaker 1>It's like the CBO, the Congressional Budget Office historically has

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<v Speaker 1>been very bad at estimating impacts of tax bills. In

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<v Speaker 1>the twenty seventeen tax cut that President Trump did.

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<v Speaker 3>They got that totally wrong.

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<v Speaker 1>They underestimated the GDP growth by a full percentage point.

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<v Speaker 1>And what that does if they make that same mistake here,

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<v Speaker 1>which they have done, will you add that that's about

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<v Speaker 1>two trillion dollars of additional revenue because you got greater

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<v Speaker 1>economic activity.

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<v Speaker 4>And then, Peter, you also have the revenue from the tariffs,

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<v Speaker 4>which I saw your opinion piece in the Hill.

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<v Speaker 3>I don't want to get.

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<v Speaker 4>Back to the tar I just want to get back

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<v Speaker 4>to the tariff because you don't have that revenue.

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<v Speaker 3>Well, that's another two trillion if you.

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<v Speaker 4>Don't have the authority to use it, though, But can

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<v Speaker 4>I just ask you mentioned j Ambassador Greer. We're going

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<v Speaker 4>to hear from him soon. Are we going to hear

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<v Speaker 4>from USTR about the bridge potentially? What John was talking about.

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<v Speaker 4>If you can't use AEBA potentially, are you going to

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<v Speaker 4>come out the administration say we're going to use one

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<v Speaker 4>twenty two in the interim?

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<v Speaker 1>Well, the court did in some sense tell us to

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<v Speaker 1>do that, which is interesting. But look, here's the thing

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<v Speaker 1>we Fennyl I just people need to wrap their heads

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<v Speaker 1>around the fact that every day here in America people

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<v Speaker 1>die because communists. China puts fifty gallon barrel, your fifty

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<v Speaker 1>gallon drums full of these chemicals that come over to

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<v Speaker 1>the Mexican cartels and then are made not just into fentanyl.

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<v Speaker 1>They use the fentanyl to spike heroin, de spike meth amphetamines,

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<v Speaker 1>to spike ecstasy, and they're eating putting it in prescription

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<v Speaker 1>drugs like xanax and valium, and people are dying. It's

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<v Speaker 1>been over a million people, a million Americans, and it's

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<v Speaker 1>an economic emergency because a lot of those people are

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<v Speaker 1>prime age working force here in America. So this kind

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<v Speaker 1>of court ruling the judge, I mean, look, the lead

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<v Speaker 1>court said.

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<v Speaker 4>If the ruling said Peter, and we've been talking about this,

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<v Speaker 4>page thirty four to thirty five. They say, basically, you

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<v Speaker 4>are in your right if you use section one twenty two.

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<v Speaker 4>Why didn't you guys do that from the beginning?

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<v Speaker 1>Well, Section one twenty two only gives you one hundred

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<v Speaker 1>and fifty days.

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<v Speaker 3>So there's your answer right there.

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<v Speaker 4>So are you section one twenty two if you use

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<v Speaker 4>this now for one hundred years, got to be a

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<v Speaker 4>bridge to three oh one or a bridge to two

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<v Speaker 4>thirty two?

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<v Speaker 3>What are you thinking?

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<v Speaker 4>More long term?

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<v Speaker 3>You can be the strategist on that. But those are

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<v Speaker 3>the kinds of thoughts.

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<v Speaker 1>And look, look, if anybody thinks this caught the administration

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<v Speaker 1>buyers and price, think again, okay, because you could see

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<v Speaker 1>in the oral arguments where those judges were going, and

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<v Speaker 1>the lead judging this, I mean, the problem with that court.

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<v Speaker 3>It's such an.

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<v Speaker 1>Obscure court, but it's consistently been globalist pro importer.

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<v Speaker 3>Giving us bad rules.

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<v Speaker 1>The lead judge there ruled against the two thirty two's

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<v Speaker 1>originally and had to get overturned by the appeals court.

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<v Speaker 1>So that gives you an idea of the bias against

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<v Speaker 1>the president's tariff policy right on that court. But I

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<v Speaker 1>think the big picture here is we've got a very

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<v Speaker 1>strong case with AIPA, but the court basically tells us

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<v Speaker 1>if we lose that we just do some other things.

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<v Speaker 1>So nothing's really changed. I want to say this to

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<v Speaker 1>the world, you're cheating us. We're coming after you deal

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<v Speaker 1>and let's make this right, because ultimately what's at stake

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<v Speaker 1>here here is the global international environment getting in in

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<v Speaker 1>a way where it's fair to America, and there thereby,

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<v Speaker 1>if it's fair to America and we westructure this thing

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<v Speaker 1>in a way we'll have just more stability in terms

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<v Speaker 1>of financial flows and capital and everything like that.

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<v Speaker 3>Dunton Varra hidly out of balance.

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<v Speaker 2>Now we've got to run, but it's quite to catch

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<v Speaker 2>up these and we look forward to singing the next step.

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<v Speaker 2>So just got to tell you one thing. You're not

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<v Speaker 2>allowed to hire on Marie. She's with us so right.

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<v Speaker 2>The sty in White House tried advice of paid a

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<v Speaker 2>Navio paid it. Thank you, sir, Dunleavada on the Trite

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<v Speaker 2>story