1 00:00:02,040 --> 00:00:06,560 Speaker 1: Now from our nation's capital. This is Bloomberg Sound On. 2 00:00:07,400 --> 00:00:10,760 Speaker 1: There is so much speculation right now about the Department 3 00:00:10,800 --> 00:00:13,960 Speaker 1: of Justice, and it's under a haze of questions. Why 4 00:00:14,000 --> 00:00:16,720 Speaker 1: does his Department of Justice cheat people? Different Some people 5 00:00:16,720 --> 00:00:18,960 Speaker 1: have sort of wondered if he should have appointed a 6 00:00:19,040 --> 00:00:21,040 Speaker 1: special council. I think he did just the right the 7 00:00:21,079 --> 00:00:26,200 Speaker 1: Bloomberg sound On Politics, Policy and Perspective from DC's top names. 8 00:00:26,720 --> 00:00:31,040 Speaker 1: So we have received Speaker McCarthy's kind invitation, and the 9 00:00:31,080 --> 00:00:34,639 Speaker 1: President has accepted it, uh and looks forward to delivering 10 00:00:34,640 --> 00:00:36,879 Speaker 1: the State of the Union. And I'm sure the President 11 00:00:36,920 --> 00:00:40,199 Speaker 1: will get an earful on on what our leief and 12 00:00:40,320 --> 00:00:44,800 Speaker 1: our desires are. Bloomberg Sound On with Joe Matthew on 13 00:00:45,000 --> 00:00:50,320 Speaker 1: Bloomberg Radio. The US Treasury invokes extraordinary measures, warning it 14 00:00:50,360 --> 00:00:52,720 Speaker 1: will run out of money by June. Welcome to the 15 00:00:52,800 --> 00:00:56,760 Speaker 1: fastest hour in politics. As Secretary Janet Yellen prepares to 16 00:00:56,800 --> 00:00:59,200 Speaker 1: hit the debt ceiling all over again, and after Jamie 17 00:00:59,240 --> 00:01:02,400 Speaker 1: Diamond points a recession as the central case this year, 18 00:01:02,760 --> 00:01:06,120 Speaker 1: we will talk possible outcomes with the economist Danny Blanchflower 19 00:01:06,440 --> 00:01:09,840 Speaker 1: at Dartmouth College. In this House, Republicans demand information on 20 00:01:09,880 --> 00:01:12,600 Speaker 1: the classified documents tied to President Biden. We sit down 21 00:01:12,680 --> 00:01:15,640 Speaker 1: with Donald Air, former Deputy U S. Attorney General, to 22 00:01:15,680 --> 00:01:18,880 Speaker 1: consider the Justice Department's next moves. Voters in New York 23 00:01:18,959 --> 00:01:23,399 Speaker 1: launched the Where's George Santos campaign as the freshman lawmaker 24 00:01:23,480 --> 00:01:26,160 Speaker 1: refuses calls to resign. We're gonna cover all these stories 25 00:01:26,480 --> 00:01:29,760 Speaker 1: with insights from our signature panel Bloomberg Politics contributors Rick 26 00:01:29,840 --> 00:01:32,640 Speaker 1: Davis and Jeannie Chanzano. They'll be here for the hour. 27 00:01:33,360 --> 00:01:36,880 Speaker 1: Yellen says us to take extraordinary steps to avert a default. 28 00:01:36,959 --> 00:01:40,120 Speaker 1: Last time we heard that was August of one. Here 29 00:01:40,160 --> 00:01:42,760 Speaker 1: we are again approaching the debt ceiling, although it's gonna 30 00:01:42,800 --> 00:01:44,880 Speaker 1: take a while, likely the second half of the year. 31 00:01:45,319 --> 00:01:49,120 Speaker 1: They're talking September most likely, when that's a real event. 32 00:01:49,960 --> 00:01:53,400 Speaker 1: But Yelling today says the measures will begin January nineteen 33 00:01:53,520 --> 00:01:57,080 Speaker 1: to avoid breaching the debt limit, all the while urging 34 00:01:57,160 --> 00:02:00,440 Speaker 1: lawmakers to boost the ceiling to avert a deva stating 35 00:02:00,960 --> 00:02:05,800 Speaker 1: payments defaults. You know this came up in the White 36 00:02:05,800 --> 00:02:08,919 Speaker 1: House briefing today because this idea of negotiating around the 37 00:02:08,960 --> 00:02:12,240 Speaker 1: debt ceiling has just already been very controversial on Capitol 38 00:02:12,320 --> 00:02:15,680 Speaker 1: Hill and in fact, even held up the speakership of 39 00:02:15,800 --> 00:02:19,200 Speaker 1: Kevin McCarthy, who has agreed to cut spending before he 40 00:02:19,200 --> 00:02:23,240 Speaker 1: makes any agreement to raise the debt ceiling. Karine Jehan Pierre, 41 00:02:23,240 --> 00:02:25,359 Speaker 1: the Press secretary at the White House, though, says we're 42 00:02:25,400 --> 00:02:29,359 Speaker 1: not negotiating over this. In the past, we have seen this. 43 00:02:29,840 --> 00:02:34,880 Speaker 1: We have seen both Republicans and Democrats come together to 44 00:02:34,960 --> 00:02:36,959 Speaker 1: deal with this issue. It is a it is one 45 00:02:36,960 --> 00:02:40,120 Speaker 1: of the basic items that Congress has to deal with, 46 00:02:40,240 --> 00:02:42,800 Speaker 1: and it should be done without conditions. So there is 47 00:02:42,840 --> 00:02:46,920 Speaker 1: going to be UH, there's gonna be no negotiation over it. 48 00:02:47,000 --> 00:02:49,560 Speaker 1: This is something that must get done, which could be 49 00:02:49,600 --> 00:02:53,280 Speaker 1: a problem. The Treasury about seventy eight billion dollars away 50 00:02:53,280 --> 00:02:56,440 Speaker 1: from exhausting its borrowing authority as of the eleventh of January, 51 00:02:56,440 --> 00:02:58,640 Speaker 1: and some fascinating notes you can find on the terminal 52 00:02:59,000 --> 00:03:02,280 Speaker 1: Alex Harris put us together, UH and this is great work. 53 00:03:02,639 --> 00:03:06,880 Speaker 1: As Yelling identified, the department would reach the limit January, 54 00:03:07,520 --> 00:03:13,200 Speaker 1: which is the date strategists had identified. UH analysts estimate 55 00:03:13,240 --> 00:03:15,800 Speaker 1: the government has until August or September until it can 56 00:03:15,800 --> 00:03:19,040 Speaker 1: no longer continue paying its obligations. So we're doing this again. 57 00:03:19,760 --> 00:03:21,760 Speaker 1: And I suspect we'll spend the rest of the year 58 00:03:22,600 --> 00:03:25,280 Speaker 1: arguing about it. Not that we want to argue with 59 00:03:25,360 --> 00:03:28,639 Speaker 1: Danny Blancheflower. He joins us with Insights, professor of Economics 60 00:03:28,720 --> 00:03:33,440 Speaker 1: at Dartmouth College and Fishing extraordinary. Danny, great to have 61 00:03:33,480 --> 00:03:37,120 Speaker 1: you here. I really appreciate you joining this program. Uh yeah, God, 62 00:03:37,280 --> 00:03:39,160 Speaker 1: you just got some beauties there online. I'll have to 63 00:03:39,200 --> 00:03:41,600 Speaker 1: point people to it later. But how worried are you 64 00:03:41,640 --> 00:03:43,440 Speaker 1: about this? Is this just you know, we're going through 65 00:03:43,440 --> 00:03:46,119 Speaker 1: the motions here, extraordinary measures. They'll stretch out. The cash 66 00:03:46,120 --> 00:03:48,800 Speaker 1: will be fine until September, but you know, waiting till 67 00:03:48,800 --> 00:03:50,840 Speaker 1: the last minute could be the problem. How how worried 68 00:03:50,840 --> 00:03:53,040 Speaker 1: should we be about it? Things? Well, I think we 69 00:03:53,080 --> 00:03:55,800 Speaker 1: should be concerned about it. I mean, Janet Yelling is right, 70 00:03:55,880 --> 00:04:00,800 Speaker 1: the ability of the treasure, the sort of delay is strong. 71 00:04:00,840 --> 00:04:02,600 Speaker 1: I mean, the big deal is that they can defer 72 00:04:02,760 --> 00:04:07,600 Speaker 1: making retirement payments for federal employees until later, so that 73 00:04:07,640 --> 00:04:10,320 Speaker 1: gives them a bit of a room to maneuver. But 74 00:04:10,440 --> 00:04:12,920 Speaker 1: I think the the in a sense, the best analogy 75 00:04:13,000 --> 00:04:15,600 Speaker 1: to this is, look what happened in the UK when 76 00:04:15,600 --> 00:04:19,320 Speaker 1: the Trust government started to do crazy things. And excuse 77 00:04:19,400 --> 00:04:21,680 Speaker 1: my French, as they say, in the end, they ended 78 00:04:21,760 --> 00:04:24,880 Speaker 1: up generating what was called a moron premium, which is 79 00:04:24,920 --> 00:04:28,520 Speaker 1: actually the cost of a government doing something stupid. So 80 00:04:28,640 --> 00:04:33,120 Speaker 1: the US government has never defaulted or even shown likelihood 81 00:04:33,120 --> 00:04:36,719 Speaker 1: of defaulting. And I think yelling is absolutely right. The 82 00:04:36,839 --> 00:04:39,520 Speaker 1: very fact that you think that this is this might 83 00:04:39,640 --> 00:04:42,599 Speaker 1: happen in a sense raises the long run cost of 84 00:04:42,640 --> 00:04:46,680 Speaker 1: borring and the credibility of the United States and LLC. 85 00:04:47,279 --> 00:04:50,120 Speaker 1: So I think this is kind of nuts. The only 86 00:04:50,160 --> 00:04:53,320 Speaker 1: issue is is it just politics or really really take 87 00:04:53,440 --> 00:04:56,440 Speaker 1: us to the edge, And hopefully the answer is they 88 00:04:56,480 --> 00:04:58,839 Speaker 1: won't do that and a deal will be struck. But 89 00:04:58,920 --> 00:05:00,599 Speaker 1: the other thing to say is we are in we 90 00:05:00,960 --> 00:05:04,920 Speaker 1: we economic position with the Fed rays rates. We're hoping 91 00:05:04,960 --> 00:05:07,240 Speaker 1: for a soft landing. But the idea that you would 92 00:05:07,320 --> 00:05:11,599 Speaker 1: cut spending in the midst of a week economy also 93 00:05:11,640 --> 00:05:15,120 Speaker 1: makes no sense. So here we go, well, yes, uh, 94 00:05:15,160 --> 00:05:17,960 Speaker 1: here we go again, and in politicians will all the 95 00:05:18,000 --> 00:05:22,480 Speaker 1: while Danny be trying to redefine, uh, exactly what the 96 00:05:22,520 --> 00:05:26,120 Speaker 1: debt limit is. And this has already begun between Republicans 97 00:05:26,120 --> 00:05:29,799 Speaker 1: and Democrats. It's it's frequently referred to as a credit card. 98 00:05:30,279 --> 00:05:32,839 Speaker 1: The question is did you did you buy something already? 99 00:05:32,880 --> 00:05:35,520 Speaker 1: Are you asking for money to buy something? Yet? Listen 100 00:05:35,520 --> 00:05:39,640 Speaker 1: to Steve Scalise, the majority leader in the House, Republican leader, 101 00:05:40,160 --> 00:05:42,920 Speaker 1: it's like a credit card limit. And families back home 102 00:05:43,000 --> 00:05:44,760 Speaker 1: have if they have credit cards, they have a limit 103 00:05:44,800 --> 00:05:47,160 Speaker 1: on that credit card. And if they hit their limit 104 00:05:47,240 --> 00:05:50,360 Speaker 1: or they're very close to it, which we are, it 105 00:05:50,400 --> 00:05:53,080 Speaker 1: means you've spent more money than you have You've you've 106 00:05:53,080 --> 00:05:56,080 Speaker 1: spent more money than your your credit card has allowed 107 00:05:56,120 --> 00:05:58,320 Speaker 1: you to spend. And if you're going to ask for 108 00:05:58,360 --> 00:06:00,560 Speaker 1: an increase in the limit, at some point in time, 109 00:06:00,600 --> 00:06:02,039 Speaker 1: you've got to sit out and say, why are we 110 00:06:02,120 --> 00:06:04,359 Speaker 1: hitting the limit? Why are we maxing out the credit card? 111 00:06:04,880 --> 00:06:07,680 Speaker 1: Because this is the nation's credit card. And I suspect 112 00:06:07,680 --> 00:06:10,080 Speaker 1: that you agree with that. Anybody would right like if 113 00:06:10,080 --> 00:06:13,159 Speaker 1: we're if we're spending like drunken sailors, we need to 114 00:06:13,320 --> 00:06:16,520 Speaker 1: establish maybe a new routine. But raising the debt limit 115 00:06:16,600 --> 00:06:19,440 Speaker 1: is to pay for money that's already been spent. Correct, Well, 116 00:06:19,520 --> 00:06:22,080 Speaker 1: I know, well I wouldn't. I wouldn't actually agree with 117 00:06:22,120 --> 00:06:24,920 Speaker 1: that at all. Um. This is the analogy that an 118 00:06:24,960 --> 00:06:28,520 Speaker 1: economy is like a household is simply not true that 119 00:06:28,760 --> 00:06:32,080 Speaker 1: the federal government is perfectly capable of borrowing money. There 120 00:06:32,160 --> 00:06:34,800 Speaker 1: is no limit to there is no analogy of whatsoever 121 00:06:35,800 --> 00:06:39,960 Speaker 1: credit because the federal government can simply borrow and continue 122 00:06:39,960 --> 00:06:42,960 Speaker 1: to do so cheap please, So that makes absolutely no sense. 123 00:06:43,080 --> 00:06:45,880 Speaker 1: Every single word of that was completely wrong. He would 124 00:06:45,880 --> 00:06:50,000 Speaker 1: have failed my economics too, cloud macroeconomics for non economists. 125 00:06:50,040 --> 00:06:52,280 Speaker 1: I could have told you that. Yeah, I could have 126 00:06:52,320 --> 00:06:55,279 Speaker 1: told you that. But then again, but but you understand 127 00:06:55,320 --> 00:06:57,640 Speaker 1: where I'm going. I under appreciate that you don't. You 128 00:06:57,880 --> 00:07:01,640 Speaker 1: you reject the entire comparison. But the fact is, politicians 129 00:07:01,720 --> 00:07:03,599 Speaker 1: frequently when they don't want to raise the debt ceiling, 130 00:07:03,680 --> 00:07:06,000 Speaker 1: act like we're acting we're trying to get money for 131 00:07:06,080 --> 00:07:09,080 Speaker 1: something that hasn't already been obligated. But we're actually paying 132 00:07:09,160 --> 00:07:13,080 Speaker 1: debt here, Well, we're paying debt. We're playing for obligations, 133 00:07:13,480 --> 00:07:15,840 Speaker 1: we're paying to borrow things. But I think what is 134 00:07:15,880 --> 00:07:19,160 Speaker 1: always missed here is that there's two sides to this 135 00:07:19,240 --> 00:07:23,120 Speaker 1: balance sheet. What are we borrowing money for? Are we 136 00:07:23,200 --> 00:07:26,120 Speaker 1: borrowing to go onto a giant jamboree and have a 137 00:07:26,160 --> 00:07:29,120 Speaker 1: wild party? And the blow we think about think about 138 00:07:29,120 --> 00:07:31,720 Speaker 1: a firm. He said to a firm, any firm on 139 00:07:31,760 --> 00:07:34,040 Speaker 1: bloomber You say, was it would it be a good 140 00:07:34,040 --> 00:07:36,160 Speaker 1: idea for this firm to borrow in? The answer is, well, 141 00:07:36,160 --> 00:07:39,200 Speaker 1: it depends borrowing. For are they borrowing to invest in 142 00:07:39,200 --> 00:07:42,400 Speaker 1: the future? Are they borrowing to put things into infrastructure 143 00:07:42,560 --> 00:07:45,200 Speaker 1: to make the economy grow more in the future. So 144 00:07:45,280 --> 00:07:48,320 Speaker 1: the conversation makes no sense. It depends upon you know, 145 00:07:48,360 --> 00:07:50,680 Speaker 1: the price of borrowing. Is the cost of borrowing low? 146 00:07:51,080 --> 00:07:53,680 Speaker 1: And are you borrowing to spend all things that provide 147 00:07:53,680 --> 00:07:56,040 Speaker 1: you with a higher rate of But the idea that 148 00:07:56,080 --> 00:07:59,760 Speaker 1: there is anything like a credit card, it's just assinine, 149 00:08:00,160 --> 00:08:03,640 Speaker 1: total and utter nonsense. This is exactly why I wanted 150 00:08:03,680 --> 00:08:07,320 Speaker 1: you to come on to that. So let me this 151 00:08:07,360 --> 00:08:09,560 Speaker 1: is beautiful. You're gonna have something to think about. At 152 00:08:09,640 --> 00:08:12,520 Speaker 1: least I will, okay, Jamie Diamond speaks. Of course, the 153 00:08:12,560 --> 00:08:16,400 Speaker 1: market listens. The big bank started reporting today, JP Morgan 154 00:08:16,480 --> 00:08:18,760 Speaker 1: among them. And I want to bring you back to 155 00:08:18,840 --> 00:08:21,640 Speaker 1: when he testified before Congress at the end of September. 156 00:08:21,720 --> 00:08:24,840 Speaker 1: This is Jamie Diamond talking about the brutal headwinds that 157 00:08:24,880 --> 00:08:27,600 Speaker 1: were coming. I think there's a chance, not any big chance, 158 00:08:27,600 --> 00:08:30,280 Speaker 1: a small chance of the soft landing there's a chance 159 00:08:30,680 --> 00:08:33,960 Speaker 1: of a mild recession, a chance for a harder recession, 160 00:08:34,320 --> 00:08:36,880 Speaker 1: and because of the war in Ukraine, I think there 161 00:08:36,960 --> 00:08:39,760 Speaker 1: and the uncertainy that causes in global energy supply and 162 00:08:39,800 --> 00:08:42,480 Speaker 1: food supply, there's a chance could be worse, and I 163 00:08:42,480 --> 00:08:44,760 Speaker 1: think policy makers should be prepared for the worst so 164 00:08:44,840 --> 00:08:46,800 Speaker 1: we take the right actions if and when that happens 165 00:08:47,040 --> 00:08:49,480 Speaker 1: is around that time. He referred to the coming hurricane 166 00:08:49,920 --> 00:08:52,400 Speaker 1: today on the call, he said that we still do 167 00:08:52,480 --> 00:08:55,400 Speaker 1: not know the ultimate effect of the headwinds coming. But 168 00:08:55,480 --> 00:08:59,319 Speaker 1: he did refer to, uh, the possibility of a recession 169 00:08:59,360 --> 00:09:03,600 Speaker 1: as the cent all case right now, whatever you do, 170 00:09:03,679 --> 00:09:07,040 Speaker 1: But he does he not know I concern you well. 171 00:09:07,040 --> 00:09:10,079 Speaker 1: Obviously the possibility of recessions concerned me. And I've been 172 00:09:10,120 --> 00:09:13,840 Speaker 1: suggesting based upon the main data that predicts recession, which 173 00:09:13,880 --> 00:09:16,800 Speaker 1: is consumer confidence that the recession is coming. But I 174 00:09:16,840 --> 00:09:18,280 Speaker 1: think the good way to think of this and I 175 00:09:18,320 --> 00:09:21,160 Speaker 1: think he's completely right. Actually the central case is much 176 00:09:21,520 --> 00:09:24,200 Speaker 1: much worse recession than the than the FED particularly has 177 00:09:24,240 --> 00:09:26,960 Speaker 1: been saying. The logic I think is that if you 178 00:09:27,000 --> 00:09:30,960 Speaker 1: think of inflation, inflation is plummeting like a stone. It's 179 00:09:30,960 --> 00:09:34,040 Speaker 1: going to plummet by point nine or one hundred basis 180 00:09:34,040 --> 00:09:36,760 Speaker 1: points a month for the next six months of that 181 00:09:36,920 --> 00:09:40,440 Speaker 1: is all before any of the rate rises by the 182 00:09:40,440 --> 00:09:43,840 Speaker 1: Fed have actually had any effect. And so that so 183 00:09:44,000 --> 00:09:46,800 Speaker 1: then once and by June, if you follow my logic, 184 00:09:47,040 --> 00:09:49,280 Speaker 1: by June, you're going to have a CPI of around 185 00:09:49,320 --> 00:09:53,040 Speaker 1: one and then and then the Fed interest rate rises 186 00:09:53,040 --> 00:09:55,560 Speaker 1: are going to kick in. So I think Diamond is 187 00:09:55,600 --> 00:09:58,800 Speaker 1: completely right. The Fed's got it totally wrong. And the 188 00:09:58,840 --> 00:10:01,000 Speaker 1: problem we're going to see us ink and the markets 189 00:10:01,000 --> 00:10:03,040 Speaker 1: have probably got it wrong. We're going to see very 190 00:10:03,040 --> 00:10:06,480 Speaker 1: swift handbrake U turns. As Diamond is right, we start 191 00:10:06,520 --> 00:10:09,760 Speaker 1: to see bad data the economy heading into recession, added 192 00:10:09,800 --> 00:10:12,600 Speaker 1: to by the idea that we may cup spending at 193 00:10:12,600 --> 00:10:14,760 Speaker 1: the federal level and default on the debt. So we've 194 00:10:14,760 --> 00:10:16,760 Speaker 1: gone around the full circle. But I think Diamond's right. 195 00:10:17,000 --> 00:10:20,880 Speaker 1: I think Scales was completely wrong. Wow, we're fascinating the 196 00:10:20,920 --> 00:10:23,920 Speaker 1: headline I'm looking at with these banks reporting on the 197 00:10:24,000 --> 00:10:28,880 Speaker 1: terminal banks see consumers piling on debt, bolstering their bottom lines. 198 00:10:28,920 --> 00:10:30,920 Speaker 1: How worried are you as we spend all the money 199 00:10:30,920 --> 00:10:33,719 Speaker 1: we saved during COVID, We're gonna have a household debt 200 00:10:33,800 --> 00:10:37,320 Speaker 1: crisis as we head into that recession. Well, I would 201 00:10:37,320 --> 00:10:40,280 Speaker 1: have thought so. And obviously if with the rise and 202 00:10:40,360 --> 00:10:43,040 Speaker 1: interest rates really yet to have a big impact. What 203 00:10:43,080 --> 00:10:46,200 Speaker 1: we're seeing is that the first impact is people having 204 00:10:46,200 --> 00:10:49,920 Speaker 1: to take on debt, and obviously that can can't go 205 00:10:49,960 --> 00:10:52,360 Speaker 1: on forever. And then you start to see default, You 206 00:10:52,440 --> 00:10:54,760 Speaker 1: start to see people struggling to pay their mortgages, you 207 00:10:54,800 --> 00:10:58,000 Speaker 1: start the credit tob card defaults and bankruptcies, and those 208 00:10:58,040 --> 00:11:00,200 Speaker 1: are the kinds of data. I think that that that 209 00:11:00,320 --> 00:11:03,880 Speaker 1: Diamond is warning against, and I'm very worried about that people. 210 00:11:04,240 --> 00:11:06,880 Speaker 1: I mean, the story for six months or so ago 211 00:11:07,240 --> 00:11:10,600 Speaker 1: was consumers were saying, this is looking really bad. I'm 212 00:11:10,600 --> 00:11:14,360 Speaker 1: really worried about what's coming. So they haven't really stopped 213 00:11:14,360 --> 00:11:17,040 Speaker 1: spending yet, so what's the implication of this. Suddenly they 214 00:11:17,040 --> 00:11:19,800 Speaker 1: stopped spending and that slows the economy, and that makes 215 00:11:19,800 --> 00:11:23,000 Speaker 1: the recession as bad as Diamonds worried about that. This 216 00:11:23,000 --> 00:11:27,000 Speaker 1: this all sort of piles him together, so you're you're 217 00:11:27,040 --> 00:11:29,680 Speaker 1: not expecting a soft landing. It sounds like, is thisn't 218 00:11:30,000 --> 00:11:34,960 Speaker 1: a long, shallow recession or a deep dive? Well, I see, Well, 219 00:11:35,000 --> 00:11:37,040 Speaker 1: the yeah, the danger is there's a deep and long 220 00:11:37,160 --> 00:11:40,240 Speaker 1: lasting recession. I mean, that's the danger. I mean, obviously 221 00:11:40,280 --> 00:11:42,520 Speaker 1: it's done pretty well, but it's a lot of the 222 00:11:42,559 --> 00:11:46,160 Speaker 1: logic that we're hearing is based upon no historical precedent 223 00:11:46,520 --> 00:11:48,839 Speaker 1: and essentially wishful thinking. And we're starting to see a 224 00:11:48,840 --> 00:11:51,640 Speaker 1: lot of commenting is coming out saying, hang on, fed, 225 00:11:51,720 --> 00:11:54,600 Speaker 1: you've gone far too far here. What you you're all 226 00:11:54,640 --> 00:11:57,560 Speaker 1: together saying always going to be fine? But what if 227 00:11:57,559 --> 00:11:59,920 Speaker 1: it isn't? What if the scenarios that Jamie Diamond and 228 00:12:00,040 --> 00:12:03,559 Speaker 1: others are laying out happening. What's your what's your back strategy? 229 00:12:03,720 --> 00:12:06,679 Speaker 1: What are you gonna do? Is this is soft landing 230 00:12:06,720 --> 00:12:09,600 Speaker 1: you'd hope for turns out to be particularly nasty. And 231 00:12:09,600 --> 00:12:12,840 Speaker 1: the indicator suggesting that that they've got it wrong is 232 00:12:12,840 --> 00:12:17,080 Speaker 1: that is that inflation is falling much faster than they've 233 00:12:17,080 --> 00:12:18,520 Speaker 1: been saying. And it keeps saying, oh, we're going to 234 00:12:18,600 --> 00:12:22,360 Speaker 1: raise rates, but with recession plummeting, why are you raising rates? 235 00:12:22,400 --> 00:12:24,880 Speaker 1: What makes no sense? So they're going to start cutting 236 00:12:24,880 --> 00:12:27,840 Speaker 1: next year? I think so, and it will be too late, 237 00:12:28,720 --> 00:12:33,520 Speaker 1: I think so. Do you ice fish this time of year? No? No, no, no. 238 00:12:33,640 --> 00:12:35,320 Speaker 1: What I do is the opposite to that. I go 239 00:12:35,440 --> 00:12:39,760 Speaker 1: to somewhere warm with Florida and I go I'm a snot. 240 00:12:40,000 --> 00:12:43,360 Speaker 1: I like to go fish to snot. Wow, you can 241 00:12:43,400 --> 00:12:46,079 Speaker 1: look at my website to see my pictures. Listen, you 242 00:12:46,160 --> 00:12:48,800 Speaker 1: got it. You need to everyone check his website. It's 243 00:12:48,920 --> 00:12:52,240 Speaker 1: it's fascinating. These things are like they're bigger than I am. 244 00:12:54,160 --> 00:12:55,959 Speaker 1: That's a big fish. I know what the weather is 245 00:12:56,000 --> 00:12:57,439 Speaker 1: in New Hampshire though this time of year, I'm in 246 00:12:57,480 --> 00:12:59,839 Speaker 1: New England board, which is why I asked Florida. Now, 247 00:13:00,080 --> 00:13:02,600 Speaker 1: most those guys out they sit out on the ice 248 00:13:02,600 --> 00:13:04,520 Speaker 1: and eat cold hot dogs. It's a hard they could 249 00:13:04,559 --> 00:13:06,800 Speaker 1: never do that, Danny. I want to meet you in person. 250 00:13:06,880 --> 00:13:10,800 Speaker 1: Sometimes have fun done, Danny bland Flower, Professor of Economics. 251 00:13:10,840 --> 00:13:15,400 Speaker 1: That well, Dartmouth College is just not there at the moment, Snook. 252 00:13:15,760 --> 00:13:17,839 Speaker 1: Let's assemble the panel for their take on this. Rick 253 00:13:17,920 --> 00:13:22,040 Speaker 1: Davis and Jennie Chancey no Bloomberg Politics contributors. We could 254 00:13:22,080 --> 00:13:24,800 Speaker 1: talk to Danny all day, but I want your insights here, Genie. 255 00:13:24,840 --> 00:13:29,160 Speaker 1: The White House knows everything we know about this. They're 256 00:13:29,160 --> 00:13:33,000 Speaker 1: talking about the economic plan working. They seem confident, at 257 00:13:33,040 --> 00:13:35,480 Speaker 1: least publicly in a soft landing. But they have to 258 00:13:35,520 --> 00:13:38,040 Speaker 1: be having conversations like the one we just had inside 259 00:13:38,080 --> 00:13:41,680 Speaker 1: the West Wing. You hope they are, and you hope 260 00:13:41,720 --> 00:13:45,240 Speaker 1: that they are really circumspect and very very careful this 261 00:13:45,280 --> 00:13:47,400 Speaker 1: time around. It wasn't that long ago we were all 262 00:13:47,440 --> 00:13:50,679 Speaker 1: talking about the fact that they kept denying, you know, 263 00:13:50,960 --> 00:13:53,520 Speaker 1: that so much of what was going on, and then 264 00:13:53,559 --> 00:13:55,640 Speaker 1: they had to, you know, eat their words. So at 265 00:13:55,679 --> 00:13:58,040 Speaker 1: this point they have to be very careful. And the 266 00:13:58,120 --> 00:14:00,440 Speaker 1: line they should be using, and I hope I heard 267 00:14:00,440 --> 00:14:03,200 Speaker 1: it yesterday they should continue is we're moving in the 268 00:14:03,320 --> 00:14:05,520 Speaker 1: right direction, but we're not out of the woods yet, 269 00:14:05,720 --> 00:14:09,240 Speaker 1: because six point five inflation is not a good number. 270 00:14:09,480 --> 00:14:12,000 Speaker 1: It's three times more than the FED says we should 271 00:14:12,040 --> 00:14:14,720 Speaker 1: be at to start with. And of course people are 272 00:14:14,800 --> 00:14:17,120 Speaker 1: still feeling an awful lot of pain in the economy, 273 00:14:17,200 --> 00:14:19,240 Speaker 1: so they have to be very careful with their messaging. 274 00:14:19,560 --> 00:14:22,520 Speaker 1: And that is not Joe Biden's strongest suits, so they've 275 00:14:22,520 --> 00:14:25,160 Speaker 1: got to keep him under wraps. And then this is 276 00:14:25,200 --> 00:14:27,800 Speaker 1: why they defer to the FED, right Rick, this is 277 00:14:27,840 --> 00:14:30,320 Speaker 1: the whole independent Fed. We don't comment on that because 278 00:14:30,360 --> 00:14:33,600 Speaker 1: they don't want to be responsible for what's about to happen. Yeah, 279 00:14:33,680 --> 00:14:36,520 Speaker 1: they certainly want somebody to take some of the shared 280 00:14:36,560 --> 00:14:38,600 Speaker 1: blame if it does. They know that they're gonna get 281 00:14:38,640 --> 00:14:43,960 Speaker 1: hit by Republicans in Congress and governors and others who 282 00:14:44,000 --> 00:14:47,440 Speaker 1: are going to be unhappy with the outcome. If if 283 00:14:47,520 --> 00:14:50,200 Speaker 1: Jamie Diamond has his way, and I'm sure he would 284 00:14:50,200 --> 00:14:52,840 Speaker 1: prefer to have a soft landing, but uh, as you 285 00:14:52,960 --> 00:14:56,200 Speaker 1: just described in your last interview, Uh, nobody really knows. 286 00:14:56,240 --> 00:14:58,760 Speaker 1: And the potential as still exists, you know, have a 287 00:14:58,760 --> 00:15:02,520 Speaker 1: pretty bad outcome on re and so um, yeah, Biden 288 00:15:02,520 --> 00:15:06,240 Speaker 1: administration wants the Fed to take the responsibility for this. 289 00:15:06,440 --> 00:15:10,800 Speaker 1: It is primarily their responsibility. Uh and uh and and 290 00:15:10,800 --> 00:15:13,240 Speaker 1: they're gonna kind of dodge it. Uh. This is why 291 00:15:13,280 --> 00:15:15,360 Speaker 1: they never talk about it. You know when you interview 292 00:15:15,960 --> 00:15:19,480 Speaker 1: uh people on the White House staff regarding this, they 293 00:15:19,520 --> 00:15:23,160 Speaker 1: never talk about inflation. So it's it's just something that 294 00:15:23,440 --> 00:15:26,160 Speaker 1: is what they've gotten used to and and whether it's 295 00:15:26,240 --> 00:15:29,600 Speaker 1: right or wrong, that's their line and they're sticking to it. Well, 296 00:15:29,640 --> 00:15:33,560 Speaker 1: so that means the central theme of the presidential campaign 297 00:15:34,200 --> 00:15:36,240 Speaker 1: at that point. It's hard to project and know what 298 00:15:36,320 --> 00:15:39,200 Speaker 1: that will feel like, Genie, But it doesn't feel good. 299 00:15:39,480 --> 00:15:41,440 Speaker 1: It's all anyone's gonna be talking about if we end 300 00:15:41,480 --> 00:15:44,680 Speaker 1: up in a recession, certainly a deep one, it's going 301 00:15:44,720 --> 00:15:47,960 Speaker 1: to be about rebuilding the American economy. And Joe Biden 302 00:15:48,000 --> 00:15:49,720 Speaker 1: is going to be on the ropes in that conversation 303 00:15:49,840 --> 00:15:53,600 Speaker 1: if he's running against Donald Trump. Yes, but Joe Biden, also, 304 00:15:53,680 --> 00:15:56,480 Speaker 1: we can't forget, has a really good foil in the 305 00:15:56,520 --> 00:15:59,400 Speaker 1: Republicans in the House. I mean, if you just think 306 00:15:59,440 --> 00:16:02,200 Speaker 1: about to day, we heard Kevin McCarthy saying they're not 307 00:16:02,240 --> 00:16:04,840 Speaker 1: going to cut Social Security, yet he has promised to 308 00:16:04,960 --> 00:16:08,520 Speaker 1: either freeze spending or have automatic cuts. That is a 309 00:16:08,560 --> 00:16:11,680 Speaker 1: political gift to the Democrats. Not necessarily the economy, but 310 00:16:11,800 --> 00:16:14,760 Speaker 1: Joe Biden running because we talk about the cuts to 311 00:16:15,200 --> 00:16:19,240 Speaker 1: you know, potentially defend spending ten percent, that's enormous, But 312 00:16:19,360 --> 00:16:22,760 Speaker 1: what about the cuts to discretionary spending. Are the Republicans 313 00:16:22,760 --> 00:16:25,040 Speaker 1: gonna follow Rick Scott down the road where they say 314 00:16:25,040 --> 00:16:28,320 Speaker 1: they're cutting Social Security and Medicare. That's a political gift 315 00:16:28,360 --> 00:16:31,040 Speaker 1: to Joe Biden if they try to go in that direction, 316 00:16:31,040 --> 00:16:32,560 Speaker 1: and I think the White House is going to use 317 00:16:32,600 --> 00:16:35,400 Speaker 1: that as best they can politically. Rick Davis and Jimmy 318 00:16:35,480 --> 00:16:38,320 Speaker 1: Chanze know our signature panel in place for the Friday edition. 319 00:16:38,360 --> 00:16:41,400 Speaker 1: As we think big thoughts here following an absolutely crazy week, 320 00:16:41,840 --> 00:16:44,960 Speaker 1: we'll keep unpacking everything we've learned over the last five 321 00:16:45,080 --> 00:16:48,400 Speaker 1: days and coming up the Biden documents. Will get to that, 322 00:16:48,880 --> 00:16:51,760 Speaker 1: and to sit down conversation with Donald Air, former US 323 00:16:51,840 --> 00:16:54,880 Speaker 1: Deputy Attorney General, on the fastest hour in politics. This 324 00:16:54,920 --> 00:17:02,200 Speaker 1: is Bloomberg is Bloomberg, so no with Joe Matthew on 325 00:17:02,400 --> 00:17:08,040 Speaker 1: bloom Bird Radio. Update on the Biden documents case. Here 326 00:17:08,040 --> 00:17:12,120 Speaker 1: you might have heard. Veteran lawyer Bob Bauer is representing 327 00:17:12,560 --> 00:17:16,199 Speaker 1: Joe Biden personal lawyer on the classified documents investigation. He 328 00:17:16,240 --> 00:17:18,840 Speaker 1: served as White House counsel to former President Obama and 329 00:17:18,880 --> 00:17:22,800 Speaker 1: he advised Biden during the twenty campaign, which answers some 330 00:17:22,880 --> 00:17:27,240 Speaker 1: of the questions asked during the news briefing yesterday. Glad 331 00:17:27,280 --> 00:17:29,280 Speaker 1: to say we have an opportunity to talk about this 332 00:17:29,359 --> 00:17:32,440 Speaker 1: whole situation, this whole case, with a real expert, a 333 00:17:32,520 --> 00:17:36,320 Speaker 1: voice of experience. Donald Air joins US former US Deputy 334 00:17:36,359 --> 00:17:39,720 Speaker 1: Attorney General. Donald Welcome back to Bloomberg. Thank you. It's 335 00:17:39,720 --> 00:17:42,359 Speaker 1: great to see in person. We spoke at length about 336 00:17:42,359 --> 00:17:44,919 Speaker 1: the Trump documents when that story first broke, the FBI 337 00:17:45,040 --> 00:17:48,439 Speaker 1: went tomorrow lago all hell breaks loose. How are you 338 00:17:48,520 --> 00:17:52,080 Speaker 1: looking at Joe Biden's case? There are similarities, but Donald, 339 00:17:52,080 --> 00:17:54,800 Speaker 1: there are also some major differences, right well, I think 340 00:17:55,040 --> 00:17:58,199 Speaker 1: I think the fact that this comes up and as 341 00:17:58,280 --> 00:18:04,399 Speaker 1: easily described as Joe by and had had classified documents too, 342 00:18:04,880 --> 00:18:07,680 Speaker 1: is a source of real confusion, and I think it's 343 00:18:07,720 --> 00:18:10,520 Speaker 1: a confusion for the public and understanding this. And so 344 00:18:10,560 --> 00:18:14,879 Speaker 1: I think for that reason, Merrick Garland did just the 345 00:18:15,000 --> 00:18:17,439 Speaker 1: right thing. Some people have sort of wondered if he 346 00:18:17,440 --> 00:18:19,880 Speaker 1: should have appointed a special counsel. I think he did 347 00:18:19,920 --> 00:18:22,720 Speaker 1: just the right thing because I think it's very important 348 00:18:23,200 --> 00:18:26,480 Speaker 1: on on big important cases for the people of the 349 00:18:26,560 --> 00:18:29,120 Speaker 1: country to be able to look at what's being done 350 00:18:29,119 --> 00:18:32,440 Speaker 1: and feel as though things are being handled in a fair, 351 00:18:32,560 --> 00:18:35,639 Speaker 1: even handed and non political way. And so he brings 352 00:18:35,680 --> 00:18:40,679 Speaker 1: in a highly qualified, very experienced prosecutor who is a 353 00:18:40,720 --> 00:18:43,600 Speaker 1: Trump appointee as a U. S attorney, and he says, here, 354 00:18:43,960 --> 00:18:45,680 Speaker 1: I need you to do this, and I you to 355 00:18:45,760 --> 00:18:48,199 Speaker 1: look at this. So that's exactly the right thing, and 356 00:18:48,240 --> 00:18:50,760 Speaker 1: I think it was the right thing with regard to 357 00:18:50,760 --> 00:18:55,040 Speaker 1: the Trump documents too. Um so good did that happened. 358 00:18:55,160 --> 00:18:58,840 Speaker 1: But at the same time, you have to look carefully 359 00:18:58,880 --> 00:19:02,840 Speaker 1: at what do we know now about the situation, And 360 00:19:02,880 --> 00:19:06,520 Speaker 1: the answer when you ask that question is that this 361 00:19:06,600 --> 00:19:09,119 Speaker 1: is a situation that, on its face, from what we 362 00:19:09,200 --> 00:19:14,359 Speaker 1: know now, does not look anything like the situation that 363 00:19:14,440 --> 00:19:17,119 Speaker 1: we know about Trump beyond the fact that there are 364 00:19:17,200 --> 00:19:21,399 Speaker 1: classified documents found. And the big issue is the issue 365 00:19:21,440 --> 00:19:26,359 Speaker 1: of intent with regard to concealment, with regard to UM 366 00:19:26,400 --> 00:19:30,320 Speaker 1: holding the documents, resisting that the return of them anything 367 00:19:30,359 --> 00:19:34,119 Speaker 1: that would indicate some purpose. And the reason why is 368 00:19:34,440 --> 00:19:38,560 Speaker 1: the criminal statutes that are relevant UM make that intent 369 00:19:38,720 --> 00:19:42,120 Speaker 1: the critical element. So when you come to that, there's 370 00:19:42,200 --> 00:19:44,600 Speaker 1: nothing on these facts so far that we know of 371 00:19:44,720 --> 00:19:49,160 Speaker 1: that suggests anything other than an inadvertent possession of them 372 00:19:49,520 --> 00:19:53,600 Speaker 1: and and an immediate insistence on returning them as soon 373 00:19:53,680 --> 00:19:56,000 Speaker 1: as they were found. So the fact that they were 374 00:19:56,040 --> 00:19:59,640 Speaker 1: handed over immediately upon their discovery is important to you, 375 00:20:00,119 --> 00:20:03,680 Speaker 1: not the fact that they were sitting around since potentially, well, 376 00:20:03,680 --> 00:20:06,440 Speaker 1: that's not good. There's no question that that's a bad thing, 377 00:20:06,600 --> 00:20:09,560 Speaker 1: that's inappropriate. It was not a proper thing to do, 378 00:20:09,880 --> 00:20:12,159 Speaker 1: and I think we all have to recognize that, and 379 00:20:12,240 --> 00:20:15,680 Speaker 1: that's why appointing a special council is the right thing 380 00:20:15,760 --> 00:20:21,280 Speaker 1: to do. But when prosecutors make decisions about prosecuting cases 381 00:20:21,760 --> 00:20:26,800 Speaker 1: involving these documents, there are a great many um circumstances 382 00:20:26,840 --> 00:20:30,080 Speaker 1: where there is this process somehow or other. The documents 383 00:20:30,080 --> 00:20:32,800 Speaker 1: are out there. And the thing that that's critical when 384 00:20:32,800 --> 00:20:36,080 Speaker 1: you read the various statutes, the espionage Statute, the statute 385 00:20:36,080 --> 00:20:41,360 Speaker 1: relating to obstruction, other statutes, um, the issue that's focused 386 00:20:41,400 --> 00:20:46,200 Speaker 1: on is intentional either concealment, obstruction of the effort to 387 00:20:46,240 --> 00:20:50,640 Speaker 1: get them back um, intentional action to prevent the return 388 00:20:50,680 --> 00:20:52,800 Speaker 1: of the document. Instruction is a real part of the 389 00:20:52,840 --> 00:20:55,840 Speaker 1: Trump case. That's the point, right that they were under 390 00:20:55,880 --> 00:20:58,560 Speaker 1: subpoena and yet they still were not handed absolutely, and 391 00:20:58,600 --> 00:21:01,359 Speaker 1: we'll see where that goes. That's it's got its own 392 00:21:01,560 --> 00:21:04,959 Speaker 1: special counsel and and that's rolling ahead. But there's been 393 00:21:04,960 --> 00:21:08,440 Speaker 1: an awful lot in the public record that's indicative of 394 00:21:08,600 --> 00:21:12,919 Speaker 1: an active effort over an extended period to resist the 395 00:21:12,960 --> 00:21:16,679 Speaker 1: return of classified documents. And that's the key element. If 396 00:21:16,720 --> 00:21:19,800 Speaker 1: indeed the evidence supports that, that's the thing that makes 397 00:21:19,880 --> 00:21:22,440 Speaker 1: this a plausible criminal case. The White House seemed to 398 00:21:22,480 --> 00:21:25,080 Speaker 1: step in it a little bit by not revealing everything 399 00:21:25,119 --> 00:21:27,480 Speaker 1: at once, and there were some tough questions for not 400 00:21:27,480 --> 00:21:29,840 Speaker 1: only the President but the Press secretary yesterday. Does it 401 00:21:30,000 --> 00:21:32,880 Speaker 1: matter from a legal standpoint that the White House did 402 00:21:32,880 --> 00:21:35,840 Speaker 1: not reveal everything it knew when the first batch came 403 00:21:35,880 --> 00:21:38,080 Speaker 1: to light? Well, I think, I think, I think what 404 00:21:38,280 --> 00:21:40,199 Speaker 1: needs to be known, and that's part of why the 405 00:21:40,240 --> 00:21:42,800 Speaker 1: special counsels there And what he'll do is, well, why 406 00:21:42,880 --> 00:21:46,880 Speaker 1: is that what happened? UM? And I don't know specifically why, 407 00:21:46,960 --> 00:21:50,440 Speaker 1: but there's a good plausible explanation, which is, hey, look, 408 00:21:50,440 --> 00:21:53,280 Speaker 1: if you find some of these documents, and what I've read, 409 00:21:53,960 --> 00:21:56,600 Speaker 1: I'm not sure it's right, but I've read the archivist 410 00:21:57,000 --> 00:21:59,879 Speaker 1: UM may well have said, hey, you know, we figured 411 00:22:00,000 --> 00:22:03,159 Speaker 1: out that when there's some documents somewhere, there might be 412 00:22:03,200 --> 00:22:05,840 Speaker 1: more documents somewhere, So why don't you go and conduct 413 00:22:05,920 --> 00:22:09,760 Speaker 1: a thorough investigation. UM. And so my guess is that's 414 00:22:09,800 --> 00:22:12,879 Speaker 1: what occurred. And so once you found these documents, it 415 00:22:12,960 --> 00:22:15,080 Speaker 1: was like, hey, we better turn the place inside out 416 00:22:15,160 --> 00:22:18,920 Speaker 1: and look at everywhere they could be. UM. I agree 417 00:22:18,960 --> 00:22:22,480 Speaker 1: with your point that from an optics point of view, 418 00:22:22,680 --> 00:22:26,600 Speaker 1: even though it maybe one event that triggered broad searches 419 00:22:26,640 --> 00:22:29,520 Speaker 1: that produced a few more documents, So it's really one 420 00:22:29,560 --> 00:22:32,440 Speaker 1: occasion that that is, but it would have been far 421 00:22:32,480 --> 00:22:34,880 Speaker 1: better if they could have just done it was announced 422 00:22:34,880 --> 00:22:38,760 Speaker 1: it at once and said, yes, Joe Biden had improperly 423 00:22:39,080 --> 00:22:41,040 Speaker 1: a bunch of documents that he shouldn't have had, and 424 00:22:41,320 --> 00:22:43,919 Speaker 1: we gave them all back. Marrick Garland indicated though, that 425 00:22:43,920 --> 00:22:46,240 Speaker 1: on December twentieth they learned about a second match, and 426 00:22:46,280 --> 00:22:48,320 Speaker 1: I think that's what got reporters asking the questions that 427 00:22:48,320 --> 00:22:50,840 Speaker 1: they still can't get an answer to right now. That's true, 428 00:22:50,920 --> 00:22:53,080 Speaker 1: and then the only thing is, well, how did they 429 00:22:53,119 --> 00:22:55,520 Speaker 1: discover those and if they discovered them, because once they 430 00:22:55,520 --> 00:22:57,600 Speaker 1: found the first ones, they searched a lot more. It's 431 00:22:57,640 --> 00:22:59,480 Speaker 1: all kind of part of the same thing. But you're right, 432 00:22:59,480 --> 00:23:02,440 Speaker 1: it's announced on two different about two different occasions, and 433 00:23:02,720 --> 00:23:06,120 Speaker 1: nothing's been made clear about that at this point. How important, 434 00:23:06,160 --> 00:23:10,760 Speaker 1: if at all, are the contents of these documents versus 435 00:23:10,800 --> 00:23:12,960 Speaker 1: the way they were handled, Well, I think it could 436 00:23:13,000 --> 00:23:15,239 Speaker 1: depend on I mean, I think I think obviously if 437 00:23:15,240 --> 00:23:18,639 Speaker 1: they were levels of classifications, the levels of classification, and 438 00:23:18,680 --> 00:23:22,359 Speaker 1: then you know what what they are and how sensitive 439 00:23:22,400 --> 00:23:25,760 Speaker 1: they are, and how unreasonable was it to have them 440 00:23:25,760 --> 00:23:28,800 Speaker 1: be anywhere other than in a locked place in the government, 441 00:23:28,840 --> 00:23:31,600 Speaker 1: you know, in a skiff or somewhere like that. Um, 442 00:23:31,640 --> 00:23:33,159 Speaker 1: you know, and you don't know that till you know 443 00:23:33,200 --> 00:23:35,720 Speaker 1: what they are. I mean, if they're the nuclear secrets, 444 00:23:35,760 --> 00:23:37,560 Speaker 1: on the one hand, that's a that's one thing. And 445 00:23:37,560 --> 00:23:40,760 Speaker 1: if there are some some low level classified documents, that's 446 00:23:40,760 --> 00:23:44,000 Speaker 1: another thing. And obviously that's one element that the Special 447 00:23:44,040 --> 00:23:46,880 Speaker 1: Council needs to look at and think about what significance 448 00:23:46,920 --> 00:23:51,520 Speaker 1: it is. Republicans beginning with Kevin McCarthy, are asking where's 449 00:23:51,560 --> 00:23:55,080 Speaker 1: the raid? Why no photograph of the documents all over 450 00:23:55,119 --> 00:23:59,199 Speaker 1: the floor, or talk about the delineation there. Obviously the 451 00:23:59,280 --> 00:24:02,800 Speaker 1: FBI was not involved in this. Is that The simple answer, well, 452 00:24:02,840 --> 00:24:04,879 Speaker 1: there there, there there. There would never have been a 453 00:24:04,960 --> 00:24:07,520 Speaker 1: raid or or a search. There never would have been 454 00:24:07,520 --> 00:24:09,720 Speaker 1: a search warrant. So they didn't seek a search warrant 455 00:24:09,760 --> 00:24:13,200 Speaker 1: for Donald Trump for you know, more well over a year. 456 00:24:13,680 --> 00:24:17,520 Speaker 1: And that was after efforts, repeated efforts, you know, interactions 457 00:24:17,560 --> 00:24:20,320 Speaker 1: and going to Florida and trying to get the documents 458 00:24:20,400 --> 00:24:23,240 Speaker 1: back and getting a getting as signed affidavit saying we've 459 00:24:23,240 --> 00:24:25,359 Speaker 1: turned everything over. And then it turns out they hadn't 460 00:24:25,400 --> 00:24:27,879 Speaker 1: turned everything over. I mean all of this stuff. You 461 00:24:27,960 --> 00:24:30,280 Speaker 1: never get around to doing a search warrant for this 462 00:24:30,359 --> 00:24:33,560 Speaker 1: stuff on a former high official of the government until 463 00:24:33,640 --> 00:24:36,440 Speaker 1: you've got a lot of stuff that looks incredibly fishy. 464 00:24:36,720 --> 00:24:38,800 Speaker 1: That's not what we have here. I mean, nobody ever 465 00:24:38,920 --> 00:24:41,359 Speaker 1: would have gone looking for a for a search warrant 466 00:24:41,359 --> 00:24:43,560 Speaker 1: on this based on the record we know about, because 467 00:24:43,560 --> 00:24:47,639 Speaker 1: they were turned over when they were discovered in this case. Uh, 468 00:24:47,880 --> 00:24:50,000 Speaker 1: but that's why, because the FBI was there, they would 469 00:24:50,080 --> 00:24:52,600 Speaker 1: lay out items on the floor and photograph them for 470 00:24:52,640 --> 00:24:55,600 Speaker 1: the sake of You tell me, well, I think that's 471 00:24:55,720 --> 00:24:58,639 Speaker 1: that's not an unusual practice to make a record of 472 00:24:58,680 --> 00:25:00,840 Speaker 1: what they found at the price where they found and 473 00:25:00,960 --> 00:25:04,160 Speaker 1: rather than only of course they do create a manual 474 00:25:04,240 --> 00:25:06,439 Speaker 1: record of what they got and and and and you know, 475 00:25:06,480 --> 00:25:08,840 Speaker 1: and that's they're in writing. But it's I think not 476 00:25:08,920 --> 00:25:11,199 Speaker 1: unusual to take photographs when you do us, not at 477 00:25:11,200 --> 00:25:14,720 Speaker 1: all unusual. It's it's it's routine to take photographs of well, 478 00:25:14,720 --> 00:25:16,600 Speaker 1: what did we find and where did we find it? 479 00:25:16,640 --> 00:25:18,800 Speaker 1: And so I think it's an informal way to make 480 00:25:18,840 --> 00:25:21,720 Speaker 1: a record. I think that's you know, hype that people 481 00:25:21,800 --> 00:25:25,320 Speaker 1: have taken and tried to make sound like police stay tactics. 482 00:25:25,400 --> 00:25:28,000 Speaker 1: It's not that po last. It wouldn't have been impressive 483 00:25:28,040 --> 00:25:31,280 Speaker 1: if there weren't so darn many classified documents that had 484 00:25:31,320 --> 00:25:33,840 Speaker 1: been found. And that's not that that's not the FBI's fault, 485 00:25:34,640 --> 00:25:37,600 Speaker 1: but the Time magazine mixed in. It's just it's something 486 00:25:37,960 --> 00:25:40,160 Speaker 1: to think about. I wouldn't want to be Merrick Garland 487 00:25:40,240 --> 00:25:41,760 Speaker 1: right now if you want to talk about some of 488 00:25:41,800 --> 00:25:44,480 Speaker 1: the hardest jobs in Washington. But of course he's moved 489 00:25:44,520 --> 00:25:49,359 Speaker 1: this off his plate with these two uh Special Council appointments. 490 00:25:49,920 --> 00:25:52,200 Speaker 1: How much time do you give them to come back 491 00:25:52,280 --> 00:25:54,360 Speaker 1: with their finals. I think you have to give them 492 00:25:54,359 --> 00:25:57,200 Speaker 1: all the time they want to take. I think you don't. 493 00:25:57,240 --> 00:25:59,800 Speaker 1: I think one thing Merrick Garland knows very very well, 494 00:26:00,160 --> 00:26:02,879 Speaker 1: and it's it's shown by you know, his leaving in 495 00:26:02,960 --> 00:26:08,080 Speaker 1: place um investigations from from the Trump administration and not 496 00:26:08,280 --> 00:26:10,800 Speaker 1: interfering with them. I think he's going to give them 497 00:26:10,800 --> 00:26:13,960 Speaker 1: the time they need. I think my guess is I 498 00:26:14,000 --> 00:26:16,080 Speaker 1: know I don't. I know a little about both of 499 00:26:16,080 --> 00:26:19,199 Speaker 1: those people. They're diligent, hard working, and they understand this 500 00:26:19,320 --> 00:26:22,960 Speaker 1: is highly pressing stuff. So they're going to move along 501 00:26:23,080 --> 00:26:25,400 Speaker 1: quite quickly. But Marrek's not going to be sitting here 502 00:26:25,440 --> 00:26:27,800 Speaker 1: saying okay, come on, get on with this. We need 503 00:26:27,840 --> 00:26:29,719 Speaker 1: to have an answer. That's not going to happen. They 504 00:26:29,800 --> 00:26:33,280 Speaker 1: are in charge of their own investigations. That independence has 505 00:26:33,320 --> 00:26:35,679 Speaker 1: been noted. Who makes the decision on whether to indict? 506 00:26:35,760 --> 00:26:38,920 Speaker 1: Is that Mary Garland? Well, I think under the regulation 507 00:26:39,400 --> 00:26:43,719 Speaker 1: there is the opportunity for Merrick Garland to you know, 508 00:26:44,000 --> 00:26:47,720 Speaker 1: take a recommendation and accept it or override it. I 509 00:26:47,800 --> 00:26:52,600 Speaker 1: would suggest that the high likelihood, it's more than a 510 00:26:52,680 --> 00:26:56,040 Speaker 1: high likelihood. I would say it's an extraordinarily high likelihood 511 00:26:56,480 --> 00:27:02,480 Speaker 1: that Merrick Garland, barring some incredible and enormously unlikely error 512 00:27:02,560 --> 00:27:05,600 Speaker 1: that he sees in what one of these people has done, 513 00:27:05,600 --> 00:27:08,680 Speaker 1: which I think is about a zero probability, he's gonna 514 00:27:08,880 --> 00:27:13,560 Speaker 1: very likely accept their recommendation regardless what it is. Um 515 00:27:13,640 --> 00:27:17,080 Speaker 1: he has the power, it's true um to to say no, 516 00:27:17,240 --> 00:27:19,400 Speaker 1: we're not going to do this. But I think it's 517 00:27:19,400 --> 00:27:23,640 Speaker 1: a very effective statute if it's handled in the right way. 518 00:27:23,800 --> 00:27:26,240 Speaker 1: By saying, look, we need an independent person to make 519 00:27:26,280 --> 00:27:29,240 Speaker 1: this judgment. Okay, we've got their report, we've got what 520 00:27:29,280 --> 00:27:31,960 Speaker 1: they think needs to be done. And if you accept 521 00:27:32,000 --> 00:27:34,840 Speaker 1: that from a person who's not in any way suspect 522 00:27:34,920 --> 00:27:38,040 Speaker 1: or biased, you've done a pretty good job of convincing 523 00:27:38,080 --> 00:27:41,480 Speaker 1: reasonable people that you're managing the Justice Department in in 524 00:27:41,520 --> 00:27:45,000 Speaker 1: a political way, and that's really important. Well, I'll tell 525 00:27:45,040 --> 00:27:46,639 Speaker 1: you what, I hope we can stay in touch with 526 00:27:46,640 --> 00:27:48,160 Speaker 1: you throughout this year, because we're gonna have some things 527 00:27:48,200 --> 00:27:50,520 Speaker 1: to talk about. Donald Air, What a great pleasure to 528 00:27:50,560 --> 00:27:52,680 Speaker 1: have you with us in studio, the former deputy US 529 00:27:53,080 --> 00:27:56,760 Speaker 1: Deputy Attorney General and former Principal Deputy Solicitor General the 530 00:27:56,840 --> 00:27:59,680 Speaker 1: United States now at Georgetown Law School. Wonderful to have you, Donald, 531 00:27:59,680 --> 00:28:04,200 Speaker 1: Thank you, thank you. And now Merrick Garland is hearing 532 00:28:04,440 --> 00:28:08,640 Speaker 1: from Republicans in the House. A letter out today from 533 00:28:08,680 --> 00:28:12,560 Speaker 1: Congressman Jim Jordans, now the chair of the House Judiciary Committee, 534 00:28:12,600 --> 00:28:15,119 Speaker 1: a letter to the Attorney General demanding information on his 535 00:28:15,200 --> 00:28:19,359 Speaker 1: handling of Joe Biden's classified document case and the appointment 536 00:28:19,359 --> 00:28:23,000 Speaker 1: of a special counsel. The House Judiciary actually tweeted the letter. 537 00:28:23,040 --> 00:28:26,480 Speaker 1: It's two pages, three pages, you can read. It says 538 00:28:26,480 --> 00:28:30,400 Speaker 1: people deserve transparency and accountability from our most senior executive 539 00:28:30,400 --> 00:28:35,200 Speaker 1: branch law enforcement officials. Please produce the following, And they're 540 00:28:35,200 --> 00:28:38,440 Speaker 1: asking for a couple of things. Here details about communications 541 00:28:38,480 --> 00:28:40,840 Speaker 1: between d o J, the FBI, the White House regarding 542 00:28:40,840 --> 00:28:46,320 Speaker 1: the discovery of the documents, where and when. But of 543 00:28:46,360 --> 00:28:50,280 Speaker 1: course the Department of Justice has little obligation and is 544 00:28:50,320 --> 00:28:53,920 Speaker 1: not likely to respond with very much, if at all. 545 00:28:54,680 --> 00:28:57,240 Speaker 1: I'm Joe Matthew in Washington. Thanks for being with us 546 00:28:57,240 --> 00:29:00,520 Speaker 1: on Bloomberg Sound On, the fastest hour in politics. Reassemble 547 00:29:00,600 --> 00:29:03,720 Speaker 1: the panel next, Rick Davis, G. D. Schanzana with us 548 00:29:03,760 --> 00:29:06,120 Speaker 1: on a Friday. Thanks for being here. This is Bloomberg. 549 00:29:09,600 --> 00:29:15,040 Speaker 1: This is Bloomberg Sound On with Joe Matthew on Bloomberg Radio. 550 00:29:17,000 --> 00:29:21,360 Speaker 1: We're circling February seven on our calendars. That's a Tuesday night. 551 00:29:21,400 --> 00:29:26,400 Speaker 1: It'll be Joe Biden prime Time, the political super Bowl, 552 00:29:26,560 --> 00:29:29,760 Speaker 1: that is the State of the Union. Indeed, the invitation 553 00:29:29,880 --> 00:29:33,000 Speaker 1: finally showed up. Here a press secretary at the White House, 554 00:29:33,560 --> 00:29:36,920 Speaker 1: Karine Jean Pierre, answering a question. In fact, I suspect 555 00:29:37,000 --> 00:29:39,280 Speaker 1: she was going to announce this, and with reporters knowing 556 00:29:39,280 --> 00:29:42,400 Speaker 1: that Speaker McCarthy had sent the note to the White House. Listen, 557 00:29:42,960 --> 00:29:47,320 Speaker 1: So we have received Speaker McCarthy's kind invitation, and the 558 00:29:47,360 --> 00:29:50,920 Speaker 1: President has accepted it UH and looks forward to delivering 559 00:29:50,920 --> 00:29:55,760 Speaker 1: the State of the Union address on Tuesday February. So 560 00:29:55,880 --> 00:30:03,400 Speaker 1: we have, god, I'm so sorry, on Tuesday February seventh, UH, 561 00:30:03,440 --> 00:30:06,520 Speaker 1: the first big opportunity here right to address Congress since 562 00:30:06,560 --> 00:30:09,960 Speaker 1: Republicans took control of the House earlier this year. We 563 00:30:10,000 --> 00:30:14,200 Speaker 1: reassemble our signature panel. Rick Davis is here and Jeannie Schanzino. Uh. 564 00:30:14,400 --> 00:30:16,880 Speaker 1: We were all together that night as I uh as 565 00:30:16,920 --> 00:30:18,840 Speaker 1: I will always remember, We'll always have the State of 566 00:30:18,880 --> 00:30:22,720 Speaker 1: the Union. And at that point, the big story was 567 00:30:22,760 --> 00:30:27,280 Speaker 1: the still relatively new war in Ukraine, UH and the 568 00:30:27,400 --> 00:30:31,840 Speaker 1: sanctions that on Russia that actually was bringing some support 569 00:30:31,920 --> 00:30:34,800 Speaker 1: to President Joe Biden. We're in a very different world 570 00:30:34,840 --> 00:30:37,280 Speaker 1: of fast forward a year, Rick Davis, how do you 571 00:30:37,320 --> 00:30:40,560 Speaker 1: describe the landscape now, like where are the issues when 572 00:30:40,560 --> 00:30:43,320 Speaker 1: they're sitting down to craft this speech that they need 573 00:30:43,360 --> 00:30:46,480 Speaker 1: to get to in a in a new divided Congress. Well, 574 00:30:46,520 --> 00:30:49,160 Speaker 1: you have this sort of balancing act that you have 575 00:30:49,240 --> 00:30:53,960 Speaker 1: to create between the real need to start articulating a 576 00:30:54,160 --> 00:30:57,640 Speaker 1: reason why Joe Biden would want to seek another term 577 00:30:57,680 --> 00:30:59,840 Speaker 1: of office? Right, So why do you deserve that what 578 00:31:00,120 --> 00:31:03,040 Speaker 1: your vision be, and at the same time address the 579 00:31:03,360 --> 00:31:08,680 Speaker 1: many needs both domestic and abroad, UH that challenge this administration. 580 00:31:08,800 --> 00:31:10,960 Speaker 1: So it's and and the two of those are in 581 00:31:11,080 --> 00:31:15,000 Speaker 1: conflict many times. UM And. So I think the way 582 00:31:15,040 --> 00:31:18,720 Speaker 1: you would look at the Ukraine War from the perspective 583 00:31:18,840 --> 00:31:21,959 Speaker 1: of what's happened in the last um, you know, twelve 584 00:31:22,000 --> 00:31:24,360 Speaker 1: months is one thing. The way you want to talk 585 00:31:24,400 --> 00:31:26,880 Speaker 1: about it as a candidate for president maybe in another. 586 00:31:27,320 --> 00:31:30,600 Speaker 1: Certainly the economy is going to be the number one 587 00:31:30,640 --> 00:31:33,920 Speaker 1: item that will tug at that because obviously what the 588 00:31:33,960 --> 00:31:36,520 Speaker 1: president will want to do on the economy as a 589 00:31:36,680 --> 00:31:43,000 Speaker 1: candidate is to um not address the pressure on on 590 00:31:43,200 --> 00:31:46,480 Speaker 1: families around inflation. UH. And what he's doing about it, 591 00:31:46,800 --> 00:31:49,320 Speaker 1: he's he and as a president, he's going to talk 592 00:31:49,360 --> 00:31:52,920 Speaker 1: about how that's the Federal Reserve job, because that's exactly 593 00:31:52,960 --> 00:31:55,120 Speaker 1: his line for the last six months and I can't 594 00:31:55,120 --> 00:31:57,680 Speaker 1: imagine that changing. So when you look at how he 595 00:31:57,720 --> 00:32:01,560 Speaker 1: will approach that, UH in a in a state of 596 00:32:01,600 --> 00:32:03,600 Speaker 1: the Union for the first time, in a divided Congress, 597 00:32:03,600 --> 00:32:06,880 Speaker 1: and potentially as a candidate for president, UH, it's really 598 00:32:06,880 --> 00:32:10,760 Speaker 1: going to be interesting to see how he emphasizes, uh, 599 00:32:10,800 --> 00:32:14,160 Speaker 1: the issues that are pressing the United States in the world. 600 00:32:14,280 --> 00:32:17,720 Speaker 1: He's gonna have Kevin McCarthy sitting behind him, Genie. How 601 00:32:17,720 --> 00:32:21,959 Speaker 1: does this new Republican majority in the House impact the 602 00:32:22,000 --> 00:32:25,160 Speaker 1: contours of the speech. Who's he talking to? Well, he's 603 00:32:25,160 --> 00:32:28,840 Speaker 1: going to be talking to the American public first and foremost, um, 604 00:32:28,960 --> 00:32:31,840 Speaker 1: And you know, he is going to take a victory lap. 605 00:32:31,880 --> 00:32:35,680 Speaker 1: I think everybody objectively can agree he had many more 606 00:32:35,800 --> 00:32:39,560 Speaker 1: legislative successes last year than any of us imagined. And 607 00:32:39,680 --> 00:32:41,840 Speaker 1: he had quite a good number of successes on the 608 00:32:41,880 --> 00:32:44,760 Speaker 1: foreign policy stage as well. So he's going to take 609 00:32:44,800 --> 00:32:47,560 Speaker 1: a victory lap for some of those, and he's going 610 00:32:47,600 --> 00:32:50,000 Speaker 1: to talk about how what they were able to achieve, 611 00:32:50,400 --> 00:32:54,160 Speaker 1: everything from the Inflation Reduction Act, two Chips to gun control, 612 00:32:54,480 --> 00:32:56,760 Speaker 1: how all of those have benefited and will continue to 613 00:32:56,800 --> 00:32:59,400 Speaker 1: benefit the American public. And that's going to help him 614 00:32:59,400 --> 00:33:02,320 Speaker 1: set hist ages Rick was talking about for his run, 615 00:33:02,360 --> 00:33:04,600 Speaker 1: should he choose to run, And then he's going to 616 00:33:04,720 --> 00:33:06,760 Speaker 1: have to address how he's going to work with a 617 00:33:06,800 --> 00:33:10,240 Speaker 1: new Republican House. And you know, I think number one 618 00:33:10,240 --> 00:33:13,000 Speaker 1: on the agenda is something we were just talking about, 619 00:33:13,080 --> 00:33:15,440 Speaker 1: which is the debt ceiling, and I think he's going 620 00:33:15,520 --> 00:33:18,800 Speaker 1: to use the opportunity to stress their commitment again to 621 00:33:18,960 --> 00:33:22,640 Speaker 1: social security and Medicare and keeping those funded, which goes 622 00:33:22,680 --> 00:33:26,080 Speaker 1: hand in hand with his, you know, potential run for 623 00:33:26,120 --> 00:33:28,640 Speaker 1: the presidency again. And I also think he's going to 624 00:33:28,760 --> 00:33:31,480 Speaker 1: talk a good deal about how he is strengthened commitments 625 00:33:31,520 --> 00:33:34,840 Speaker 1: abroad and things like he was doing today talking about 626 00:33:34,960 --> 00:33:38,040 Speaker 1: chips and semiconductors with the Prime Minister of Japan, the 627 00:33:38,080 --> 00:33:42,240 Speaker 1: Netherlands Prime minister coming tuesday. Those are very important for 628 00:33:42,280 --> 00:33:45,600 Speaker 1: the American public and for the world and for our 629 00:33:45,640 --> 00:33:48,000 Speaker 1: economy and our security. So I think he'll address those 630 00:33:48,000 --> 00:33:52,040 Speaker 1: in the context of democracy and saving democracy at home 631 00:33:52,080 --> 00:33:55,479 Speaker 1: and abroad. Well, he's got another speech to make sooner. 632 00:33:55,600 --> 00:33:57,840 Speaker 1: It's actually going to be this weekend. He's on his 633 00:33:57,880 --> 00:34:00,680 Speaker 1: way to Atlanta, Atlanta George Joe, where he will be 634 00:34:00,720 --> 00:34:04,080 Speaker 1: at Ebenezer Baptist Church. Interestingly, that's where we were reporting 635 00:34:04,120 --> 00:34:08,399 Speaker 1: on the Senate runoff. That's where Senator Warnock preaches. He's 636 00:34:08,480 --> 00:34:12,040 Speaker 1: the pastor there. UH. Keisha Lance Bottoms showed up in 637 00:34:12,040 --> 00:34:14,640 Speaker 1: the White House briefing room today, the former mayor of Atlanta, 638 00:34:15,239 --> 00:34:17,520 Speaker 1: UH now an advisor in the White House. He's the 639 00:34:18,360 --> 00:34:21,920 Speaker 1: head of White House Public Engagement, the director and talked 640 00:34:21,960 --> 00:34:25,359 Speaker 1: about voting reform, among other issues that they are hoping 641 00:34:25,400 --> 00:34:28,480 Speaker 1: to hear about on this trip to Atlanta. Listen, He's 642 00:34:28,560 --> 00:34:33,319 Speaker 1: asked for Congress to codify the John Lewis Voting Rights 643 00:34:33,320 --> 00:34:36,759 Speaker 1: to Act and also the additional Voting Rights Act that's 644 00:34:36,800 --> 00:34:40,359 Speaker 1: pending before Congress sets a Freedom to Vote Act. So 645 00:34:40,400 --> 00:34:44,839 Speaker 1: the President has been very clear that voting, the right 646 00:34:44,920 --> 00:34:48,360 Speaker 1: to vote, the access to vote is a core a 647 00:34:48,440 --> 00:34:51,680 Speaker 1: component of our democracy, and he's going to continue to 648 00:34:51,719 --> 00:34:54,080 Speaker 1: push for that. But of course we're in a different 649 00:34:54,120 --> 00:34:58,160 Speaker 1: world now with a Republican lad House. Uh. Genie Keisha 650 00:34:58,239 --> 00:35:00,040 Speaker 1: Lance Bottoms went on to say that the President's to 651 00:35:00,160 --> 00:35:02,560 Speaker 1: get an earful I don't think she meant that in 652 00:35:02,840 --> 00:35:06,400 Speaker 1: a in a sort of confrontational way, but that he 653 00:35:06,480 --> 00:35:07,839 Speaker 1: was going to be hearing from a lot of people 654 00:35:07,840 --> 00:35:10,280 Speaker 1: about things that they are still hoping he can accomplish 655 00:35:10,360 --> 00:35:12,920 Speaker 1: on this trip to Atlanta. Is this going to be 656 00:35:12,960 --> 00:35:15,120 Speaker 1: an easy trip for him? What's this speech going to 657 00:35:15,200 --> 00:35:17,640 Speaker 1: be like? Yeah, And I think one of the reporters, 658 00:35:17,640 --> 00:35:20,400 Speaker 1: I can't remember who, you mentioned that last time he 659 00:35:20,440 --> 00:35:23,720 Speaker 1: went to Atlanta, many civil rights groups, voting rights groups, 660 00:35:23,760 --> 00:35:26,799 Speaker 1: folks skipped the speech because they really have felt all 661 00:35:26,840 --> 00:35:30,600 Speaker 1: along that the President has not taken action enough on 662 00:35:30,719 --> 00:35:32,920 Speaker 1: that issue. And I do think that's an issue he's 663 00:35:32,920 --> 00:35:35,359 Speaker 1: going to have to address. And I think he may 664 00:35:35,440 --> 00:35:38,120 Speaker 1: have to promise or talk about ways that he can 665 00:35:38,160 --> 00:35:42,520 Speaker 1: act unilaterally via executive order in others, if Congress isn't 666 00:35:42,560 --> 00:35:44,600 Speaker 1: going to act, which we know it is not, because 667 00:35:44,640 --> 00:35:47,560 Speaker 1: this is something the base feels strongly about. We've got 668 00:35:47,600 --> 00:35:50,120 Speaker 1: some big decisions in this regard coming from the Supreme 669 00:35:50,160 --> 00:35:52,640 Speaker 1: Court in the not so distance future, and he's going 670 00:35:52,680 --> 00:35:54,880 Speaker 1: to have to address that. And I think he probably 671 00:35:54,960 --> 00:35:58,040 Speaker 1: starts on Monday with this speech in Atlanta. Rick Davis, 672 00:35:58,040 --> 00:36:01,040 Speaker 1: what kind of an earful is the president in for? Well, 673 00:36:01,080 --> 00:36:04,080 Speaker 1: I think you know you foretold it. Uh, there are 674 00:36:04,120 --> 00:36:08,360 Speaker 1: a lot of constituency groups, especially in the Southern States, 675 00:36:08,360 --> 00:36:11,480 Speaker 1: that have been racked with civil rights problems over history, 676 00:36:12,280 --> 00:36:15,160 Speaker 1: who would love to see this administration speak out more 677 00:36:15,400 --> 00:36:18,719 Speaker 1: on voting rights. UM. You know, it's kind of interesting 678 00:36:18,760 --> 00:36:21,840 Speaker 1: because uh, you know, you've had record turnout in the 679 00:36:21,920 --> 00:36:26,880 Speaker 1: Southern States. Um, before and after some of these Republican 680 00:36:26,960 --> 00:36:30,840 Speaker 1: initiatives went into effect. In one so, um, there's a 681 00:36:30,880 --> 00:36:35,440 Speaker 1: little cause and effect imbalance by some of the some 682 00:36:35,560 --> 00:36:38,359 Speaker 1: of the folks articulating the need for change, and he's 683 00:36:38,480 --> 00:36:41,280 Speaker 1: and he's saddled now with a with a Republican House, 684 00:36:41,320 --> 00:36:45,319 Speaker 1: which means the likelihood of anything related to voting rights 685 00:36:45,400 --> 00:36:47,560 Speaker 1: is is going to get bogged down in Congress. So 686 00:36:47,600 --> 00:36:50,279 Speaker 1: that I mean that Electoral Account Act, was it, right, Rick? 687 00:36:50,320 --> 00:36:52,640 Speaker 1: I mean, that was the deal going into the end 688 00:36:52,640 --> 00:36:53,960 Speaker 1: of the year. That was as close as they were 689 00:36:53,960 --> 00:36:55,920 Speaker 1: going to get. Yeah, that was probably the best you 690 00:36:55,920 --> 00:36:57,960 Speaker 1: could think that would get done at the beginning of 691 00:36:58,000 --> 00:37:00,239 Speaker 1: the year. And and it did get done, which, you know, 692 00:37:00,320 --> 00:37:03,799 Speaker 1: kudos to the Congress and administration for fixing that. But 693 00:37:03,880 --> 00:37:06,760 Speaker 1: the reality is there's also very little appetite on Capitol 694 00:37:06,840 --> 00:37:10,839 Speaker 1: Hill for this right that that was yesterday's problem. There 695 00:37:10,840 --> 00:37:13,960 Speaker 1: are many other big issues facing Congress, and I'd be 696 00:37:14,000 --> 00:37:16,839 Speaker 1: surprised even if Democrats want to tea this up. Rick 697 00:37:16,920 --> 00:37:19,800 Speaker 1: Davis and G. D. Schanzano straight ahead with some final thoughts. 698 00:37:19,840 --> 00:37:24,160 Speaker 1: As voters in New York launched the Where's George Santos campaigning? 699 00:37:25,680 --> 00:37:29,279 Speaker 1: Is this humor? Or are they doxing the freshman congressman? 700 00:37:29,280 --> 00:37:33,320 Speaker 1: We'll talk about it next Life from Washington. This is Bloomberg. 701 00:37:36,920 --> 00:37:42,360 Speaker 1: This is Bloomberg, So No with Joe Matthew on Bloomberg Radio. 702 00:37:44,320 --> 00:37:46,640 Speaker 1: Sound On. It has brought to you by Innovation Refunds. 703 00:37:46,680 --> 00:37:51,200 Speaker 1: This is your daily reminder. Your daily reminder from Innovation Refunds. 704 00:37:51,200 --> 00:37:53,000 Speaker 1: If you're looking for ways to grow your business, get 705 00:37:53,040 --> 00:37:55,040 Speaker 1: back the money that you may be eligible to receive 706 00:37:55,600 --> 00:37:58,080 Speaker 1: for the employee Retention credits. Sign up now before it's 707 00:37:58,120 --> 00:38:01,080 Speaker 1: too late. See if your business qualified for e r 708 00:38:01,120 --> 00:38:05,640 Speaker 1: C assistance at get Refunds dot com. So George Santos 709 00:38:05,719 --> 00:38:08,560 Speaker 1: has another day in paradise, running away from people. He 710 00:38:08,600 --> 00:38:11,040 Speaker 1: did tell lawmaker or reporters. I should say to have 711 00:38:11,120 --> 00:38:13,399 Speaker 1: a good weekend when he was running to his car. 712 00:38:14,560 --> 00:38:18,200 Speaker 1: All the while, voters in the third Congressional District of 713 00:38:18,280 --> 00:38:23,520 Speaker 1: New York are launching a new campaign. Uh Democratic voters, 714 00:38:23,560 --> 00:38:28,879 Speaker 1: I should say, it's called Where's George Santos? Get ready 715 00:38:28,920 --> 00:38:31,720 Speaker 1: for the signs and apparently a lot of social media posts. 716 00:38:31,960 --> 00:38:37,279 Speaker 1: Democratic Legislator John Laughazan says Santos is in hiding. He's 717 00:38:37,320 --> 00:38:41,759 Speaker 1: a NASA County lawmaker. Listen, if George Santos won't come 718 00:38:41,800 --> 00:38:44,200 Speaker 1: to us, then we'll come to him. You don't get 719 00:38:44,239 --> 00:38:49,680 Speaker 1: away with being the biggest fraud in modern American political history. 720 00:38:49,719 --> 00:38:52,200 Speaker 1: All right, let's bring in Rick Davis and Jennie Chanzano 721 00:38:52,719 --> 00:38:55,759 Speaker 1: because they have helped us, uh, walk through all of 722 00:38:55,760 --> 00:38:59,120 Speaker 1: this so far. This campaign encourages people who see the 723 00:38:59,160 --> 00:39:03,520 Speaker 1: congressman in public to take a picture of them posted 724 00:39:03,520 --> 00:39:05,759 Speaker 1: on social media. They had a big rally in front 725 00:39:05,800 --> 00:39:08,839 Speaker 1: of his office today or where it's supposed to be 726 00:39:08,920 --> 00:39:12,960 Speaker 1: in Douglas Town. Uh, this is a good idea, Rick, 727 00:39:13,080 --> 00:39:15,360 Speaker 1: Or are they they gonna actually put this guy in 728 00:39:15,440 --> 00:39:19,600 Speaker 1: some danger here? Now? It's highly entertaining politics. I mean, 729 00:39:19,760 --> 00:39:22,279 Speaker 1: you know, look, I mean I've produced a number of 730 00:39:22,320 --> 00:39:25,040 Speaker 1: ads where you know, bloodhounds are searching all over town 731 00:39:25,120 --> 00:39:27,680 Speaker 1: for the candidate I'm running against, you know, or or 732 00:39:27,680 --> 00:39:30,160 Speaker 1: where's the guy? You know? So this is pretty tried 733 00:39:30,200 --> 00:39:32,919 Speaker 1: and true politics. Um, and he is hiding. He's hiding 734 00:39:32,960 --> 00:39:35,600 Speaker 1: from the press in Washington, He's hiding from his voters 735 00:39:35,640 --> 00:39:38,520 Speaker 1: in his district. And and and these guys are smart. 736 00:39:38,560 --> 00:39:41,640 Speaker 1: They're gonna make it as painful as possible. They're actually 737 00:39:41,680 --> 00:39:44,800 Speaker 1: doing the Republican's job for them, because you know, Republican 738 00:39:44,880 --> 00:39:48,240 Speaker 1: officials in his his you know states, I've already almost 739 00:39:48,320 --> 00:39:53,960 Speaker 1: Union UNIONNAT unanimously, uh, you know, have called for his resignation. 740 00:39:54,320 --> 00:39:56,680 Speaker 1: The Democrats are just gonna haunt him. If I were them, 741 00:39:56,680 --> 00:39:59,239 Speaker 1: I'd get a bunch of bloodhounds and I'd post themselves 742 00:39:59,280 --> 00:40:01,920 Speaker 1: outside inside. I mean, you know, you could make this 743 00:40:02,000 --> 00:40:04,919 Speaker 1: into a wonderful circus and and every now and then 744 00:40:05,239 --> 00:40:07,759 Speaker 1: politics needs to be a circus. Well, it is a 745 00:40:07,800 --> 00:40:11,880 Speaker 1: circus here, Jennie. Apparently that office is vacant still. I mean, 746 00:40:11,920 --> 00:40:15,800 Speaker 1: does he dare set up an office in the local districts? Yeah? 747 00:40:15,880 --> 00:40:17,759 Speaker 1: You know, do you think he really meant that he 748 00:40:17,800 --> 00:40:20,960 Speaker 1: hopes the reporters have a good weekend there? Um, it's 749 00:40:21,000 --> 00:40:23,799 Speaker 1: hard to believe. Yeah. Apparently they had to change the 750 00:40:23,920 --> 00:40:26,080 Speaker 1: name on the sign on the office. It was still 751 00:40:26,120 --> 00:40:29,160 Speaker 1: for Tom Swazzy, who was his predecessor. So they have 752 00:40:29,239 --> 00:40:31,640 Speaker 1: a lot of work to do. And you know, it's 753 00:40:31,719 --> 00:40:36,359 Speaker 1: not just Democrats. Republicans are already you know, lining up. 754 00:40:36,400 --> 00:40:39,800 Speaker 1: There's now seven in Congress. We had um Paul Ryan 755 00:40:39,920 --> 00:40:42,239 Speaker 1: come out today and say he's got to go. So 756 00:40:42,280 --> 00:40:46,080 Speaker 1: the pressure is on. And it's not just on George Santos, 757 00:40:46,160 --> 00:40:49,600 Speaker 1: it is on Kevin McCarthy. This has overshadowed to a 758 00:40:49,640 --> 00:40:53,040 Speaker 1: certain extent his first week, which was already chaotic enough. 759 00:40:53,200 --> 00:40:55,600 Speaker 1: So the question is how long can he keep this up? 760 00:40:55,640 --> 00:40:58,440 Speaker 1: How long does he want to just stick with this guy? Well, 761 00:40:58,480 --> 00:41:01,279 Speaker 1: I believe I think two years is the answer, isn't it? 762 00:41:01,320 --> 00:41:04,280 Speaker 1: I don't know, Rick. If this goes to a special election, 763 00:41:04,719 --> 00:41:07,480 Speaker 1: it is believed that's a district won by Joe Biden. 764 00:41:07,520 --> 00:41:10,800 Speaker 1: It's believed that that could very well go to a Democrat. 765 00:41:11,400 --> 00:41:15,360 Speaker 1: Kevin McCarthy loses and really badly needed vote. He's just 766 00:41:15,400 --> 00:41:18,600 Speaker 1: not gonna let that happen, is he? Yeah? I mean, look, 767 00:41:18,640 --> 00:41:21,560 Speaker 1: I mean obviously that's not a good outcome for Kevin McCarthy. 768 00:41:21,680 --> 00:41:24,279 Speaker 1: Um and and and in a Republican and win in 769 00:41:24,360 --> 00:41:29,200 Speaker 1: that district. If uh, George Santos uh resigns and chooses 770 00:41:29,239 --> 00:41:32,799 Speaker 1: not to to participate in politics anymore, which you would 771 00:41:32,800 --> 00:41:36,760 Speaker 1: assume a resignation would trigger. But that's totally up to Santos. 772 00:41:36,800 --> 00:41:39,439 Speaker 1: I mean, like, the reality is, the Speaker has very 773 00:41:39,480 --> 00:41:42,760 Speaker 1: little he can do other than to make George Santos 774 00:41:42,840 --> 00:41:46,640 Speaker 1: his life miserable inside of Congress. He can't expel him, uh, 775 00:41:46,680 --> 00:41:49,520 Speaker 1: and so uh it's really up to George Santos, And 776 00:41:49,520 --> 00:41:52,200 Speaker 1: at some point is Kevin McCarthy's gonna wish Santos would 777 00:41:52,200 --> 00:41:55,000 Speaker 1: make up his mind and actually decided to go home. 778 00:41:55,120 --> 00:41:58,240 Speaker 1: But um uh, this is gonna play out for quite 779 00:41:58,239 --> 00:42:00,880 Speaker 1: some time because you have to. In this case. It 780 00:42:00,960 --> 00:42:03,680 Speaker 1: may be the only truth that come out of George 781 00:42:03,680 --> 00:42:07,160 Speaker 1: Samsos's mouth, which is he refuses timbers On, Well, there 782 00:42:07,200 --> 00:42:09,360 Speaker 1: it is. He's got a week off, all right, Jenny 783 00:42:09,400 --> 00:42:11,200 Speaker 1: House out of session next week. Take a picture of 784 00:42:11,280 --> 00:42:14,560 Speaker 1: him for us. We see him in New York. I 785 00:42:14,600 --> 00:42:17,120 Speaker 1: hope you have a long weekend. I'll meet you back 786 00:42:17,160 --> 00:42:19,919 Speaker 1: here Tuesday with the best panel in the business. I'm 787 00:42:19,960 --> 00:42:21,840 Speaker 1: Joe Matthew and this is Bloomberg.