1 00:00:00,080 --> 00:00:10,080 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,119 --> 00:00:13,880 Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at 3 00:00:13,920 --> 00:00:17,119 Speaker 1: noon and five pm Eastern on Apple, Cocklay and Android 4 00:00:17,160 --> 00:00:20,560 Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever 5 00:00:20,600 --> 00:00:23,760 Speaker 1: you get your podcasts, or watch us live on YouTube. 6 00:00:25,320 --> 00:00:27,480 Speaker 2: Here in Washington, a lot of attention is fixed on 7 00:00:27,520 --> 00:00:30,720 Speaker 2: what's taking place in the Senate today, or more specifically 8 00:00:30,720 --> 00:00:32,959 Speaker 2: the Dirks and Senate Office Building, where the Senate Armed 9 00:00:32,960 --> 00:00:37,120 Speaker 2: Services Committee is currently and still underway, holding the confirmation 10 00:00:37,240 --> 00:00:40,680 Speaker 2: hearing for the Defense Secretary designate Pete Hegseth, who, of 11 00:00:40,720 --> 00:00:43,519 Speaker 2: course has been tapped by President elect Donald Trump to 12 00:00:43,640 --> 00:00:47,120 Speaker 2: lead the Pentagon, an organization with more than three million 13 00:00:47,120 --> 00:00:49,920 Speaker 2: people reporting up and through it, and it's been a 14 00:00:49,960 --> 00:00:53,440 Speaker 2: little contentious at times, perhaps no surprise. He's faced very 15 00:00:53,440 --> 00:00:56,800 Speaker 2: difficult questions from Democrats in regard to a number of issues. 16 00:00:56,800 --> 00:00:59,680 Speaker 2: But he also began the hearing by pleading his own case. 17 00:00:59,720 --> 00:01:01,040 Speaker 2: Here's part of his opening statement. 18 00:01:02,480 --> 00:01:04,200 Speaker 3: Now, it is true and has been acknowledged, that I 19 00:01:04,200 --> 00:01:07,040 Speaker 3: don't have a similar biography to defense secretaries of the 20 00:01:07,120 --> 00:01:10,840 Speaker 3: last thirty years. But as President Trump also told me, 21 00:01:10,959 --> 00:01:14,760 Speaker 3: we've repeatedly placed people atop the pentagon with supposedly the 22 00:01:14,840 --> 00:01:19,360 Speaker 3: right credentials, whether they are retire generals, academics, or defense 23 00:01:19,440 --> 00:01:25,120 Speaker 3: contractor executives. And where has it gotten us, he believes, 24 00:01:25,120 --> 00:01:28,279 Speaker 3: and I humbly agree that it's time to give someone 25 00:01:28,319 --> 00:01:29,119 Speaker 3: with dust on. 26 00:01:29,160 --> 00:01:30,400 Speaker 4: His boots the helm. 27 00:01:31,160 --> 00:01:34,559 Speaker 3: A change agent, someone with no vested interest in certain 28 00:01:34,600 --> 00:01:40,480 Speaker 3: companies or specific programs or approved narratives. My only special 29 00:01:40,720 --> 00:01:46,600 Speaker 3: interest is the warfighter, deterring wars and if called upon, 30 00:01:46,760 --> 00:01:50,880 Speaker 3: winning wars. By ensuring our warriors never enter a fair fight, 31 00:01:51,680 --> 00:01:55,880 Speaker 3: we let them win and we bring them home. Like 32 00:01:55,960 --> 00:01:59,360 Speaker 3: many of my generation, I've been there. I've led troops 33 00:01:59,400 --> 00:02:02,400 Speaker 3: in combat. I've been on patrol for days. I've pulled 34 00:02:02,400 --> 00:02:07,240 Speaker 3: a trigger down range, heard bullets whiz by, flexcuffed insurgents, 35 00:02:07,280 --> 00:02:12,000 Speaker 3: called in close air support, led metavacsed dodged IEDs, pulled 36 00:02:12,040 --> 00:02:18,320 Speaker 3: out dead bodies, and knelt before a battlefield cross. This 37 00:02:18,760 --> 00:02:24,400 Speaker 3: is not academic for me. This is my life. I 38 00:02:24,520 --> 00:02:27,520 Speaker 3: led then and I will lead now. 39 00:02:29,800 --> 00:02:33,160 Speaker 5: Pete Hegseth, speaking before the Senate Armed Services Committee in 40 00:02:33,200 --> 00:02:36,440 Speaker 5: prepared remarks, That's how it started, not only trying to 41 00:02:36,440 --> 00:02:40,079 Speaker 5: make the case for his nomination and confirmation, of course, 42 00:02:40,080 --> 00:02:41,440 Speaker 5: but also trying to get ahead of some of the 43 00:02:41,440 --> 00:02:43,400 Speaker 5: more difficult questions that he might be asked. And he's 44 00:02:43,400 --> 00:02:45,720 Speaker 5: been asked all of them, and we've got more to go. 45 00:02:45,800 --> 00:02:48,400 Speaker 5: Here joining us a voice of experience who spent a 46 00:02:48,440 --> 00:02:51,360 Speaker 5: lot of time with this committee and in rooms like these, 47 00:02:51,960 --> 00:02:55,040 Speaker 5: Retired Marine Corps Major General Arnold Prenar, a former staff 48 00:02:55,080 --> 00:02:58,480 Speaker 5: director the Senate Armed Services Committee, the author of IF Confirmed, 49 00:02:58,480 --> 00:03:01,080 Speaker 5: an insider's view of the Senate comfort process with a 50 00:03:01,080 --> 00:03:03,560 Speaker 5: perfect voice for today. General to spend some time, and 51 00:03:03,600 --> 00:03:06,679 Speaker 5: we welcome you back to Bloomberg TV and Radio. As 52 00:03:06,680 --> 00:03:08,919 Speaker 5: I mentioned, you've been in this room before. How's he doing. 53 00:03:10,400 --> 00:03:10,560 Speaker 3: Well? 54 00:03:10,560 --> 00:03:13,079 Speaker 6: I think he's doing extremely well. I was very impressed 55 00:03:13,080 --> 00:03:16,840 Speaker 6: with his opening statement. As you mentioned, I've been involved 56 00:03:16,880 --> 00:03:20,000 Speaker 6: in the confirmation process for over twelve Secretary of Defense, 57 00:03:20,040 --> 00:03:22,200 Speaker 6: going all the way back to the Ford administration, both 58 00:03:22,240 --> 00:03:24,760 Speaker 6: when I was on the committee the staff director of 59 00:03:24,800 --> 00:03:28,480 Speaker 6: the committee and then helping various nominees since leaving government 60 00:03:28,520 --> 00:03:31,320 Speaker 6: on a pro bono basis, and so most of our 61 00:03:31,360 --> 00:03:35,160 Speaker 6: Secretaries of Defense get face tough questionings. But he certainly 62 00:03:35,360 --> 00:03:38,280 Speaker 6: had a very strong opening statement. I've reviewed all of 63 00:03:38,280 --> 00:03:42,280 Speaker 6: his advanced policy questions. I've listened very carefully to the hearing, 64 00:03:42,560 --> 00:03:44,120 Speaker 6: and he's doing exceedingly well. 65 00:03:43,920 --> 00:03:44,640 Speaker 7: In my judgment. 66 00:03:46,600 --> 00:03:49,200 Speaker 2: Well and for many of the questions he is facing, 67 00:03:49,200 --> 00:03:51,480 Speaker 2: at least the ones posed by Democrats, he's kind of 68 00:03:51,520 --> 00:03:54,440 Speaker 2: doing so for the first time. As multiple Democratic senators 69 00:03:54,440 --> 00:03:57,160 Speaker 2: have pointed out, Sir that Hegsath declined to meet with 70 00:03:57,200 --> 00:03:59,040 Speaker 2: them in advance of this hearing, even though he was 71 00:03:59,080 --> 00:04:03,160 Speaker 2: taking meetings with essentially all of the Republicans on this committee. 72 00:04:03,160 --> 00:04:05,080 Speaker 2: Do you think that that was a mistake or was 73 00:04:05,080 --> 00:04:07,680 Speaker 2: it unnecessary in this case when he wasn't likely to 74 00:04:07,680 --> 00:04:09,680 Speaker 2: be able to rely on Democratic votes anyway. 75 00:04:11,400 --> 00:04:14,840 Speaker 6: Well, typically the tradition is that nominees, and not just 76 00:04:14,840 --> 00:04:17,320 Speaker 6: for the Secretary of Defense, all our defense nominees, of 77 00:04:17,360 --> 00:04:19,719 Speaker 6: which they're sixty five in the Department of the Fence. 78 00:04:19,800 --> 00:04:22,039 Speaker 6: So he's going to have a very strong team with 79 00:04:22,120 --> 00:04:24,599 Speaker 6: him if he's confirmed, and I believe he will be confirmed, 80 00:04:26,200 --> 00:04:29,360 Speaker 6: And typically they try to meet with everybody, but everybody's sidentials. 81 00:04:29,360 --> 00:04:32,919 Speaker 6: I don't have any inside information other than what I 82 00:04:33,080 --> 00:04:34,359 Speaker 6: just heard into hearing today. 83 00:04:35,120 --> 00:04:37,560 Speaker 7: I know nominees try to meet with everybody. 84 00:04:37,640 --> 00:04:39,680 Speaker 6: I know for a fact, that a number of the 85 00:04:39,720 --> 00:04:44,159 Speaker 6: other nominees, the Secretary of the Navy, the Secretary of 86 00:04:44,200 --> 00:04:46,880 Speaker 6: the Army nominee. They're meeting with both sides of the isle. 87 00:04:46,920 --> 00:04:50,480 Speaker 6: So I don't know what really happened here. It's unfortunate 88 00:04:50,560 --> 00:04:52,160 Speaker 6: if he didn't have a chance to meet with some 89 00:04:52,200 --> 00:04:56,880 Speaker 6: of them. But on the other hand, it's not unusual. 90 00:04:57,000 --> 00:04:58,320 Speaker 6: Its schedules don't match up. 91 00:04:59,520 --> 00:04:59,880 Speaker 4: Yeah, they do. 92 00:05:00,000 --> 00:05:01,400 Speaker 5: You all seem to be going out of their way 93 00:05:01,400 --> 00:05:03,320 Speaker 5: to say the same thing on that front. But general, 94 00:05:03,320 --> 00:05:05,680 Speaker 5: we'd love for you to bring us behind the scenes 95 00:05:05,680 --> 00:05:07,840 Speaker 5: a bit and into the process. We hear a lot 96 00:05:07,880 --> 00:05:11,599 Speaker 5: about mock hearings and murder boards. What goes into preparing 97 00:05:11,640 --> 00:05:14,000 Speaker 5: someone like Pete Hegseth for a moment like this? 98 00:05:14,080 --> 00:05:15,600 Speaker 4: How much time do you spend with them? 99 00:05:16,200 --> 00:05:18,280 Speaker 5: How ugly does it get when you start looking at 100 00:05:18,320 --> 00:05:20,240 Speaker 5: their record and try to give them a sense of 101 00:05:20,279 --> 00:05:21,240 Speaker 5: the tough questions they're. 102 00:05:21,080 --> 00:05:21,480 Speaker 4: Going to get. 103 00:05:22,839 --> 00:05:25,320 Speaker 6: Well, you know, I go back and most of the 104 00:05:25,360 --> 00:05:27,800 Speaker 6: sectips that I've been involved with, going all the way 105 00:05:27,800 --> 00:05:31,560 Speaker 6: back to Harold Brown in the card administration, cat Weinberger, 106 00:05:31,600 --> 00:05:36,200 Speaker 6: Don Rumsfeld Les Aspin all got tough questions. So there's 107 00:05:36,240 --> 00:05:39,640 Speaker 6: nothing unusual about that number two. It does take a 108 00:05:39,640 --> 00:05:43,159 Speaker 6: tremendous amount of preparation. Some of the previous secretaries of 109 00:05:43,200 --> 00:05:45,640 Speaker 6: the fits that didn't prepare well did not do well 110 00:05:46,040 --> 00:05:49,160 Speaker 6: in their confirmation hearing, and frankly they suffered from that 111 00:05:49,240 --> 00:05:52,760 Speaker 6: when they became even though they got confirmed, you know, 112 00:05:52,800 --> 00:05:55,880 Speaker 6: they did not have a good impression in the confirmation 113 00:05:55,960 --> 00:05:58,919 Speaker 6: HEREA So I would assume, and I can tell from 114 00:05:58,960 --> 00:06:01,719 Speaker 6: just the way he's answering the questions. I can tell 115 00:06:02,320 --> 00:06:05,880 Speaker 6: from all the material supporting material that's been provided to 116 00:06:05,920 --> 00:06:09,080 Speaker 6: the committee. I can tell by reading his extensive advanced 117 00:06:09,080 --> 00:06:12,200 Speaker 6: policy questions. They have done a tremendous amount of preparation 118 00:06:12,279 --> 00:06:14,560 Speaker 6: to get him ready for this hearing. But that's appropriate. 119 00:06:14,600 --> 00:06:16,960 Speaker 6: You need to do that. As some people have said 120 00:06:16,960 --> 00:06:19,960 Speaker 6: that the FITICS departments the largest most complex organization in 121 00:06:19,960 --> 00:06:22,400 Speaker 6: the world, and it's all about war fighting, and so 122 00:06:23,400 --> 00:06:26,279 Speaker 6: I would think that obviously they spend a tremendous amount 123 00:06:26,320 --> 00:06:29,640 Speaker 6: of time with him getting him ready, and it shows 124 00:06:29,640 --> 00:06:30,560 Speaker 6: he's doing a good job. 125 00:06:32,400 --> 00:06:34,839 Speaker 2: So you think general that he's doing a good job 126 00:06:34,880 --> 00:06:37,560 Speaker 2: and arguing that he is in fact qualified to do 127 00:06:37,920 --> 00:06:40,039 Speaker 2: this job even though he, as has been raised in 128 00:06:40,040 --> 00:06:42,840 Speaker 2: the hearing, he hasn't managed an organization bigger than hundreds 129 00:06:42,839 --> 00:06:45,960 Speaker 2: of people, let alone millions, that he actually hasn't led 130 00:06:46,000 --> 00:06:49,000 Speaker 2: an organizational audit, let alone one that could number in 131 00:06:49,080 --> 00:06:51,160 Speaker 2: the hundreds of billions of dollars. I mean, is your 132 00:06:51,160 --> 00:06:54,560 Speaker 2: takeaway from this hearing that Pete Hegseth is firmly qualified 133 00:06:54,600 --> 00:06:55,359 Speaker 2: for this position. 134 00:06:57,400 --> 00:07:00,280 Speaker 6: He's qualified in terms of the things that the secondary 135 00:07:00,320 --> 00:07:02,600 Speaker 6: defense is involved in, and they are in Title ten. 136 00:07:02,800 --> 00:07:05,640 Speaker 6: Somebody brought up one of the requirements, their requirements in 137 00:07:05,720 --> 00:07:08,440 Speaker 6: Title ten, the US Code that creates the Department of 138 00:07:08,480 --> 00:07:10,680 Speaker 6: Defense and the Secretary of Defense, and he's. 139 00:07:10,560 --> 00:07:12,600 Speaker 7: He brought out the three things that I think are 140 00:07:12,640 --> 00:07:13,239 Speaker 7: most important. 141 00:07:13,320 --> 00:07:16,800 Speaker 6: He's focused on improving deterres because those of us that 142 00:07:16,840 --> 00:07:19,280 Speaker 6: have been in combat like him, like myself and others 143 00:07:19,320 --> 00:07:21,440 Speaker 6: I've been wounded in combat and been to more than 144 00:07:21,480 --> 00:07:23,480 Speaker 6: one more, you wanted deter wards. You don't want to 145 00:07:23,480 --> 00:07:25,800 Speaker 6: have to engage your wars, and you want to focus 146 00:07:25,840 --> 00:07:28,560 Speaker 6: on war fighting and lethality. That's the role of the 147 00:07:28,600 --> 00:07:31,080 Speaker 6: Secretary of Defense. He's going to have their sixty five 148 00:07:31,160 --> 00:07:34,760 Speaker 6: confirmed people. They've already named a very strong team to 149 00:07:34,800 --> 00:07:37,400 Speaker 6: be in there with him. John Faling to be Secretary 150 00:07:37,400 --> 00:07:39,760 Speaker 6: of the Navy, Dan Driscol to be Secretary of the Army, 151 00:07:40,040 --> 00:07:43,600 Speaker 6: Brince Kobe a real expert on policy, Mike Duffy a 152 00:07:43,720 --> 00:07:48,400 Speaker 6: very tremendous expert in the acquisition area, and the deputy 153 00:07:48,400 --> 00:07:52,200 Speaker 6: fin Berg a very very successful businessman. And the number 154 00:07:52,240 --> 00:07:55,480 Speaker 6: two person is the chief operating officer. So the notion 155 00:07:55,600 --> 00:07:58,120 Speaker 6: that somehow the Secretary of Defense is got to run 156 00:07:58,120 --> 00:08:01,720 Speaker 6: the Pentagon all by themselves. And you've got the service chiefs, 157 00:08:01,760 --> 00:08:03,600 Speaker 6: you got the Joint chiefs, you got the war fighting 158 00:08:03,600 --> 00:08:04,520 Speaker 6: Combatant commander. 159 00:08:04,640 --> 00:08:07,880 Speaker 7: So in my judgment, it takes that kind of a team. 160 00:08:08,360 --> 00:08:10,880 Speaker 6: And the names that I've seen so far, because I 161 00:08:10,920 --> 00:08:13,480 Speaker 6: know most of them have worked with them over the years, 162 00:08:13,720 --> 00:08:15,880 Speaker 6: very experienced, It is going to be a very strong team. 163 00:08:17,000 --> 00:08:19,520 Speaker 4: General. We all remember John Tower in nineteen eighty nine. 164 00:08:19,560 --> 00:08:21,560 Speaker 5: I don't know if you have any personal anecdotes from 165 00:08:21,560 --> 00:08:24,200 Speaker 5: that experience or any first hand stories, but can you 166 00:08:24,400 --> 00:08:26,560 Speaker 5: speak to our audience about how rare it would be 167 00:08:27,080 --> 00:08:29,200 Speaker 5: for a nominee like this to go down in a 168 00:08:29,280 --> 00:08:30,240 Speaker 5: vote and committee or. 169 00:08:30,240 --> 00:08:30,760 Speaker 4: On the floor. 170 00:08:31,880 --> 00:08:35,520 Speaker 6: Well, in history, the only one that has not been 171 00:08:35,559 --> 00:08:38,520 Speaker 6: approved was John Tower, and that was a. 172 00:08:38,520 --> 00:08:40,280 Speaker 7: Very sad day. He was a great chairman of the 173 00:08:40,280 --> 00:08:41,760 Speaker 7: Senate Armed Services Committee. 174 00:08:41,880 --> 00:08:44,360 Speaker 6: The full expectation was that he would be confirmed, but 175 00:08:44,400 --> 00:08:47,480 Speaker 6: there were issues that came up during the confirmation process, 176 00:08:47,559 --> 00:08:51,199 Speaker 6: particularly as it relates to the FBI report that. 177 00:08:53,440 --> 00:08:54,640 Speaker 7: Him not being approved. 178 00:08:54,640 --> 00:08:57,200 Speaker 6: But the committee and the Congress turned around in the 179 00:08:57,240 --> 00:09:00,880 Speaker 6: Senate very quickly and put Dick Cheney in very quickly 180 00:09:01,600 --> 00:09:06,760 Speaker 6: after John Towers nomination was not approved. And so I think, frankly, 181 00:09:07,000 --> 00:09:09,439 Speaker 6: the Senate deserves to give Pete headsp an upper down 182 00:09:09,520 --> 00:09:12,080 Speaker 6: vote on day one. He's the only other civilian in 183 00:09:12,120 --> 00:09:14,120 Speaker 6: the war fighting chain to come in from the Commander 184 00:09:14,120 --> 00:09:17,240 Speaker 6: in chief to the combatant commands. We need a Secretary 185 00:09:17,280 --> 00:09:20,679 Speaker 6: of Defense on there on day one, and he should 186 00:09:20,679 --> 00:09:22,720 Speaker 6: get an upper down vote, which has been the president 187 00:09:22,720 --> 00:09:25,240 Speaker 6: for secretaries of the Defense. And people that want to 188 00:09:25,280 --> 00:09:27,240 Speaker 6: vote for him can vote for him. People that want 189 00:09:27,240 --> 00:09:29,800 Speaker 6: to vote a gist him vote against him. And you know, 190 00:09:29,880 --> 00:09:32,600 Speaker 6: a majority vote rules, and if he gets a majority vote, 191 00:09:32,760 --> 00:09:34,640 Speaker 6: then he will be eligible to be sworn in and 192 00:09:34,760 --> 00:09:35,920 Speaker 6: appointed day one. 193 00:09:36,000 --> 00:09:39,120 Speaker 7: But he deserves an upper down vote on January twentieth. 194 00:09:39,320 --> 00:09:42,440 Speaker 6: That's been the plan in the president going all the 195 00:09:42,440 --> 00:09:46,000 Speaker 6: way back to Democrat and Republican presidents that on a 196 00:09:46,040 --> 00:09:49,000 Speaker 6: new president that has a new Secretary of Defense gets 197 00:09:49,040 --> 00:09:49,760 Speaker 6: an upper down. 198 00:09:49,679 --> 00:09:51,280 Speaker 7: Vote on day one, and I hope that will be 199 00:09:51,320 --> 00:09:51,720 Speaker 7: the case. 200 00:09:53,400 --> 00:09:56,880 Speaker 2: Well, and assuming he is confirmed ultimately to lead this position, talk, 201 00:09:56,920 --> 00:09:59,760 Speaker 2: if you will, general about what exactly he's going to 202 00:10:00,320 --> 00:10:02,160 Speaker 2: if we've heard in this hearing a lot of kind 203 00:10:02,160 --> 00:10:05,560 Speaker 2: of bureaucratical challenges, if you will, about the acquisition process, 204 00:10:05,600 --> 00:10:08,600 Speaker 2: about an audit for the DoD. But then there's also 205 00:10:08,679 --> 00:10:11,280 Speaker 2: the very real challenges in multiple theaters around the world 206 00:10:11,320 --> 00:10:14,200 Speaker 2: where there are live conflicts or the threat of conflicts. 207 00:10:14,240 --> 00:10:16,559 Speaker 2: How is he going to be able to navigate both 208 00:10:16,600 --> 00:10:18,640 Speaker 2: those internal and external questions. 209 00:10:19,720 --> 00:10:22,319 Speaker 6: Look, he's inheriting the same challenges that's the last two 210 00:10:22,360 --> 00:10:24,199 Speaker 6: or three presidents have had. We live in a world 211 00:10:24,200 --> 00:10:26,320 Speaker 6: that's more dangerous and unstable than the peak of the 212 00:10:26,320 --> 00:10:30,360 Speaker 6: Cold War. We don't have the right strategy for dealing 213 00:10:30,400 --> 00:10:33,760 Speaker 6: with the threats that we face from Russia, China, Iran, 214 00:10:33,920 --> 00:10:36,880 Speaker 6: North Korea in global terrorism. We need to get back 215 00:10:36,920 --> 00:10:39,960 Speaker 6: to basically being able to deter and if deterred spails 216 00:10:40,200 --> 00:10:42,200 Speaker 6: to fight and win two major theater awards on a 217 00:10:42,240 --> 00:10:45,160 Speaker 6: near simultaneous basis. We're not getting the bang for the 218 00:10:45,200 --> 00:10:47,000 Speaker 6: buck we should for the dollars we spend in the 219 00:10:47,040 --> 00:10:49,840 Speaker 6: Pentagon in constant dollars, and we're spending more than the 220 00:10:49,840 --> 00:10:52,280 Speaker 6: peak of the Reagan build up, and the forces fifty 221 00:10:52,280 --> 00:10:55,000 Speaker 6: percent smaller. One of the things he brought out today 222 00:10:55,040 --> 00:10:56,600 Speaker 6: is we need to get people, you. 223 00:10:56,559 --> 00:10:58,880 Speaker 7: Know, into the combat arms, and we have over. 224 00:10:58,800 --> 00:11:02,840 Speaker 6: Three hundred thousand active duty military serving in inherently non 225 00:11:02,880 --> 00:11:05,160 Speaker 6: governmental jobs are serving in the rear with the gear. 226 00:11:05,480 --> 00:11:10,240 Speaker 6: The overhead in the Pentagon is massive. The requirements process 227 00:11:10,360 --> 00:11:14,000 Speaker 6: needs performed, the acquisition process needs performed. We spend over 228 00:11:14,040 --> 00:11:16,200 Speaker 6: four hundred and twenty billion dollars a year in the 229 00:11:16,240 --> 00:11:19,520 Speaker 6: Pentagon on goods and services, supplies and equipment, and about 230 00:11:19,559 --> 00:11:21,719 Speaker 6: the only thing you can say about that output it's 231 00:11:21,800 --> 00:11:24,440 Speaker 6: been more, take longer, get less. And these problems are 232 00:11:24,440 --> 00:11:26,959 Speaker 6: well known. He's gonna with his team going to have 233 00:11:27,000 --> 00:11:28,960 Speaker 6: to tackle every single one of these. If you want 234 00:11:29,000 --> 00:11:32,000 Speaker 6: to improve the Turrens, the Turrens is really important. You 235 00:11:32,120 --> 00:11:34,720 Speaker 6: need to have the military capability. It has to be 236 00:11:34,840 --> 00:11:37,360 Speaker 6: credible and your adversaries have to believe that you're going 237 00:11:37,400 --> 00:11:40,320 Speaker 6: to use it. So he's going to inherit some significant 238 00:11:40,400 --> 00:11:42,480 Speaker 6: challenges in all of these areas. 239 00:11:43,880 --> 00:11:46,120 Speaker 5: We're spending some time on Bloomberg TV and Radio with 240 00:11:46,160 --> 00:11:48,920 Speaker 5: retired Marine Corps General Arnold Pernaro, who literally wrote the 241 00:11:48,960 --> 00:11:51,560 Speaker 5: book on Senate confirmations. General, I want to ask you 242 00:11:51,920 --> 00:11:55,760 Speaker 5: about some criticism that we've heard from Democratic members of 243 00:11:55,760 --> 00:11:59,120 Speaker 5: the committee about the FBI background check into Pete Hegseth. 244 00:11:59,160 --> 00:12:01,559 Speaker 5: There are multiple words here that the FBI did not 245 00:12:01,760 --> 00:12:05,520 Speaker 5: interview Hegseth's ex wives or the woman who actually accused 246 00:12:05,559 --> 00:12:08,160 Speaker 5: him of sexual assaults in twenty seventeen. 247 00:12:08,559 --> 00:12:09,679 Speaker 4: How unusual is that? 248 00:12:09,720 --> 00:12:12,960 Speaker 5: Would that have been writing on a request from a 249 00:12:12,960 --> 00:12:16,600 Speaker 5: committee leadership to look into that and interview those women, 250 00:12:17,000 --> 00:12:19,840 Speaker 5: or is this a problem for the FBI to have 251 00:12:19,880 --> 00:12:21,560 Speaker 5: not been as comprehensive as it should be. 252 00:12:22,679 --> 00:12:25,600 Speaker 6: First of all, I want to applaud the new leadership 253 00:12:25,600 --> 00:12:28,360 Speaker 6: in the Senate, the Leader Thun and others. It says, look, 254 00:12:28,400 --> 00:12:31,680 Speaker 6: we're going to require the same kind of FBI fulfill 255 00:12:31,800 --> 00:12:35,600 Speaker 6: investigations for the Trump nominees that has been required in 256 00:12:35,760 --> 00:12:40,600 Speaker 6: every single previous president Democratic, Republican. And so that request 257 00:12:40,640 --> 00:12:43,280 Speaker 6: doesn't come from the committees, it doesn't come from the Senate, 258 00:12:43,559 --> 00:12:46,880 Speaker 6: it comes from the White House. Council's office, in this case, 259 00:12:46,920 --> 00:12:49,760 Speaker 6: the Transition Council, because their White House Council for Trump 260 00:12:49,760 --> 00:12:52,240 Speaker 6: has not been set up till January twentifth, and so 261 00:12:52,360 --> 00:12:54,760 Speaker 6: they had the FBI go out and do what's called 262 00:12:54,760 --> 00:12:58,560 Speaker 6: a full field investigation of potential nominees, and then that 263 00:12:58,760 --> 00:13:01,920 Speaker 6: material is provided to the chairman and ranking member on 264 00:13:01,960 --> 00:13:04,120 Speaker 6: the Center of Armed Services Committee, and it's at the 265 00:13:04,200 --> 00:13:06,800 Speaker 6: chairman's discretion, as it was when my boss was chairman 266 00:13:06,880 --> 00:13:09,880 Speaker 6: for eight years, as to who else might get access 267 00:13:09,920 --> 00:13:12,400 Speaker 6: to that. One of the things you have to understand, 268 00:13:12,840 --> 00:13:15,600 Speaker 6: it's not like an Inspector General report. It's not like 269 00:13:15,720 --> 00:13:18,640 Speaker 6: a Article thirty two in the military, where there's an 270 00:13:18,679 --> 00:13:22,360 Speaker 6: investigation their findings and their recommendations and they come to 271 00:13:22,440 --> 00:13:25,160 Speaker 6: a conclusion and they say, well, this person is right 272 00:13:25,240 --> 00:13:26,280 Speaker 6: and this person is wrong. 273 00:13:26,720 --> 00:13:27,640 Speaker 7: It's just raw. 274 00:13:27,520 --> 00:13:30,880 Speaker 6: Investigatory files and they can be very misleading, and so 275 00:13:31,360 --> 00:13:35,559 Speaker 6: the FBI reports have to be treated with great deference 276 00:13:35,600 --> 00:13:38,319 Speaker 6: in terms of what they can then used for. One 277 00:13:38,320 --> 00:13:41,160 Speaker 6: of the things that I felt and people know that 278 00:13:41,360 --> 00:13:43,760 Speaker 6: was very unfair in the Power thing is that there 279 00:13:43,800 --> 00:13:45,599 Speaker 6: were a lot of things that got leaked out of 280 00:13:45,640 --> 00:13:49,480 Speaker 6: the FBI report that weren't corroborated, and it was very damaging. 281 00:13:49,840 --> 00:13:53,920 Speaker 6: And so I think the approach that Chairman Wicctor is 282 00:13:53,960 --> 00:13:57,440 Speaker 6: taking in terms of restricting the FBI report is appropriate. 283 00:13:57,920 --> 00:13:59,920 Speaker 6: In terms of what's in it, none of us are 284 00:14:00,040 --> 00:14:01,640 Speaker 6: ever going to know because it's not going to be 285 00:14:01,640 --> 00:14:05,240 Speaker 6: made available publicly, and certainly you have to rely on 286 00:14:05,280 --> 00:14:08,600 Speaker 6: the investigatory skills of the FBI that they did a 287 00:14:08,640 --> 00:14:09,679 Speaker 6: thorough investigation. 288 00:14:09,960 --> 00:14:11,559 Speaker 7: And so typically what. 289 00:14:11,600 --> 00:14:16,280 Speaker 6: Happens is if the Council believes there's disqualifying information in 290 00:14:16,600 --> 00:14:20,440 Speaker 6: an FBI full fill investigation, they'll notify the President and 291 00:14:20,480 --> 00:14:22,520 Speaker 6: the President will have to decide whether he still wants 292 00:14:22,520 --> 00:14:25,120 Speaker 6: to go forward or not. The fact that the report 293 00:14:25,240 --> 00:14:28,080 Speaker 6: was provided to the Chairman and ranking member, the fact 294 00:14:28,120 --> 00:14:31,800 Speaker 6: that things are going forward, I just I don't have 295 00:14:31,920 --> 00:14:34,680 Speaker 6: firsthand knowledge. I certainly don't have access to it. I 296 00:14:34,720 --> 00:14:38,120 Speaker 6: don't have any leaked information. My work and assumption would 297 00:14:38,120 --> 00:14:42,200 Speaker 6: be there's nothing in that report that's disqualifying because the 298 00:14:42,200 --> 00:14:43,440 Speaker 6: proceedings are going forward. 299 00:14:45,280 --> 00:14:47,400 Speaker 2: All right, General, thank you so much for joining us 300 00:14:47,440 --> 00:14:49,960 Speaker 2: on Balance of Power today. That's retired Marine Corps General 301 00:14:50,040 --> 00:14:52,600 Speaker 2: Ernold Panaro, who is Joe mentioned is also the author 302 00:14:52,600 --> 00:14:56,480 Speaker 2: of if confirmed. An insider's view of the Senate confirmation process. 303 00:14:58,640 --> 00:15:01,680 Speaker 1: You're listening to the Blue Work Balance of Power podcast. 304 00:15:01,920 --> 00:15:05,080 Speaker 1: Catch us live weekdays at noon and five pm Eastern 305 00:15:05,200 --> 00:15:08,640 Speaker 1: on Apple Cockley and Android Auto with the Bloomberg Business app. 306 00:15:08,680 --> 00:15:11,680 Speaker 1: You can also listen live on Amazon Alexa from our 307 00:15:11,720 --> 00:15:16,119 Speaker 1: flagship New York station Just Say Alexa played Bloomberg eleven. 308 00:15:15,960 --> 00:15:20,400 Speaker 5: Thirty confirmation hearing for Pete Haggseth get underway here. Actually, 309 00:15:20,400 --> 00:15:22,440 Speaker 5: it's soon to draw to a close. It started at 310 00:15:22,480 --> 00:15:24,960 Speaker 5: nine pint thirty this morning the Dirks and Senate Office Building. 311 00:15:25,000 --> 00:15:28,760 Speaker 5: Twenty seven senators have an opportunity to ask Pete Hegseth. 312 00:15:28,840 --> 00:15:33,040 Speaker 5: In some cases very difficult questions, Kaylee. We've heard about 313 00:15:33,040 --> 00:15:36,840 Speaker 5: his history with alcohol, allegations of sexual assault, to which 314 00:15:36,880 --> 00:15:40,640 Speaker 5: he maintains his innocence, some emotional testimony from the likes 315 00:15:40,640 --> 00:15:44,920 Speaker 5: of Tammy Duckworth, some very difficult questions from Elizabeth Warren. 316 00:15:45,360 --> 00:15:48,520 Speaker 5: Lockstep support though from Republicans in the room, and many 317 00:15:48,560 --> 00:15:50,120 Speaker 5: expect him to be confirmed. 318 00:15:49,800 --> 00:15:52,720 Speaker 2: Well, and interestingly as well, the one Republican many were 319 00:15:52,800 --> 00:15:55,000 Speaker 2: keeping an eye on, as Senator Joni ERNs from Iowa, 320 00:15:55,040 --> 00:15:58,200 Speaker 2: who's a combat veteran and sexual assault survivor herself, and 321 00:15:58,280 --> 00:16:02,840 Speaker 2: even their report seemed friendlier than maybe you would have anticipated. 322 00:16:02,880 --> 00:16:05,120 Speaker 2: She noted that they have met multiple times in private 323 00:16:05,160 --> 00:16:08,640 Speaker 2: and had what she described as very frank conversations, and 324 00:16:08,640 --> 00:16:11,400 Speaker 2: she just reiterated on some of the points that I 325 00:16:11,400 --> 00:16:13,840 Speaker 2: guess they had discussed in private that she wanted to 326 00:16:13,920 --> 00:16:16,560 Speaker 2: raise again today in the hearing. But she was going 327 00:16:16,600 --> 00:16:19,680 Speaker 2: to be potentially the lynchpin vote on knowing only three 328 00:16:19,720 --> 00:16:21,920 Speaker 2: Republican votes can be afford to be lost for handy. 329 00:16:21,760 --> 00:16:23,400 Speaker 4: One lot of time, she was the one to watch. 330 00:16:23,560 --> 00:16:25,520 Speaker 5: But after their meeting she seemed to back off, and 331 00:16:25,560 --> 00:16:29,480 Speaker 5: by the way, a deliberate pressure campaign from the Magaworld 332 00:16:29,520 --> 00:16:32,480 Speaker 5: against Joni Ernst that seemed to change her narrative, as 333 00:16:32,520 --> 00:16:36,200 Speaker 5: did her meeting with Pete Hagseeth behind closed doors. To 334 00:16:36,240 --> 00:16:38,800 Speaker 5: your point, Kaylee, she actually left time on the clock, 335 00:16:38,840 --> 00:16:41,600 Speaker 5: which says a lot about the point she was trying 336 00:16:41,600 --> 00:16:41,880 Speaker 5: to make. 337 00:16:42,000 --> 00:16:43,640 Speaker 2: Yeah, so let's get into all of this now and 338 00:16:43,680 --> 00:16:46,920 Speaker 2: turn to our political panel today. Genie Shanzino is with us, who, 339 00:16:46,960 --> 00:16:49,040 Speaker 2: of course is a senior Democracy Fellow at the Center 340 00:16:49,080 --> 00:16:50,760 Speaker 2: for the Study of the Presidency in Congress and a 341 00:16:50,800 --> 00:16:56,160 Speaker 2: democratic strategist alongside Republican strategist Ashley Davis. Welcome to you both, Genie. 342 00:16:56,200 --> 00:16:59,080 Speaker 2: Just to begin with you, obviously Democrats had coordinated their 343 00:16:59,160 --> 00:17:02,520 Speaker 2: questioning here, much of it was incredibly intense. Is that 344 00:17:02,680 --> 00:17:05,600 Speaker 2: they went after heg Seth on both character and qualifications 345 00:17:05,920 --> 00:17:09,000 Speaker 2: for this job. But is anyone's mind really changing because 346 00:17:09,000 --> 00:17:09,679 Speaker 2: of this Q and A. 347 00:17:11,720 --> 00:17:13,280 Speaker 8: I don't think we see that yet. 348 00:17:13,720 --> 00:17:16,360 Speaker 9: Could it happen, sure, but I don't think that there 349 00:17:16,359 --> 00:17:19,199 Speaker 9: has been a misstep of the degree or sort of 350 00:17:19,240 --> 00:17:23,160 Speaker 9: a surprise that would elicit changes on the Republican side. 351 00:17:23,200 --> 00:17:25,119 Speaker 9: And you know, part of that, I think is the 352 00:17:25,160 --> 00:17:28,480 Speaker 9: pressure campaign that you were both just talking about. There 353 00:17:28,480 --> 00:17:32,640 Speaker 9: has been an organized pressure campaign from the right to 354 00:17:32,640 --> 00:17:36,000 Speaker 9: support heg Seth and also to take on any Republicans 355 00:17:36,000 --> 00:17:38,800 Speaker 9: who would stray offline. So I think so far no 356 00:17:38,960 --> 00:17:41,760 Speaker 9: mind's changed. But I do think Democrats are doing what 357 00:17:41,800 --> 00:17:44,879 Speaker 9: they need to do and wanted to do. They are 358 00:17:44,920 --> 00:17:47,439 Speaker 9: getting their points out. And you know, I would just 359 00:17:47,520 --> 00:17:50,720 Speaker 9: add two things surprise me. One that he didn't meet 360 00:17:50,760 --> 00:17:52,800 Speaker 9: with them in advance or even try to set up 361 00:17:52,800 --> 00:17:54,840 Speaker 9: a meeting if you believe what the senators are saying. 362 00:17:55,080 --> 00:17:57,080 Speaker 9: And number two that We're only going to go one 363 00:17:57,200 --> 00:17:59,280 Speaker 9: round on this. It is typical to go more than 364 00:17:59,320 --> 00:18:02,280 Speaker 9: one round. I think we need as the American public 365 00:18:02,320 --> 00:18:04,199 Speaker 9: to hear more from him, but we're only going to 366 00:18:04,200 --> 00:18:07,119 Speaker 9: get one round seven inch eat, which is pretty short. 367 00:18:08,320 --> 00:18:11,000 Speaker 5: Yeah, one round indeed, And I just want to go 368 00:18:11,119 --> 00:18:15,080 Speaker 5: back to the moment between Pete Hegseth and Joni Ernst 369 00:18:15,119 --> 00:18:19,440 Speaker 5: that Kaylee mentioned here the senator from Iowa with questions 370 00:18:19,440 --> 00:18:23,240 Speaker 5: specifically about women serving in combat, will. 371 00:18:23,080 --> 00:18:27,240 Speaker 9: You support women continuing to have the opportunity to serve 372 00:18:27,440 --> 00:18:28,880 Speaker 9: in combat roles? 373 00:18:30,080 --> 00:18:32,719 Speaker 4: Senator, First of all, thank you for your service. 374 00:18:32,760 --> 00:18:36,320 Speaker 3: As we discussed extensively as well my privilege, and my 375 00:18:36,400 --> 00:18:40,680 Speaker 3: answer is yes, exactly the way that you caveated it. Yes, 376 00:18:40,800 --> 00:18:44,040 Speaker 3: women will have access to ground combat roles combat rows, 377 00:18:44,320 --> 00:18:48,880 Speaker 3: given the standards remain high, and we'll have a review 378 00:18:49,119 --> 00:18:52,920 Speaker 3: to ensure the standards have not been eroded in any 379 00:18:53,000 --> 00:18:55,280 Speaker 3: one of these cases. That'll be part of one of 380 00:18:55,320 --> 00:18:57,320 Speaker 3: the first things we do with the Pentagon is reviewing 381 00:18:57,359 --> 00:19:01,920 Speaker 3: that in a gender neutral way. The standards ensuring readiness 382 00:19:02,400 --> 00:19:05,960 Speaker 3: and meritocracy is front and center. But absolutely, it would 383 00:19:06,000 --> 00:19:09,800 Speaker 3: be the privilege of a lifetime to if confirmed to 384 00:19:09,840 --> 00:19:12,520 Speaker 3: be the Secretary of Defense for all men and women 385 00:19:12,560 --> 00:19:15,400 Speaker 3: in uniform who fight so heroic, they have so many 386 00:19:15,400 --> 00:19:18,160 Speaker 3: other options, they decide to put their right hand up 387 00:19:18,680 --> 00:19:20,840 Speaker 3: for our country, and it would be an honor to 388 00:19:20,880 --> 00:19:22,399 Speaker 3: have a chance to lead them. 389 00:19:22,880 --> 00:19:23,000 Speaker 6: All. 390 00:19:23,080 --> 00:19:26,320 Speaker 5: Right, let's bring Republican strategist Ashley Davis back into the conversation. 391 00:19:26,440 --> 00:19:28,680 Speaker 5: If that's as tough as it gets from a Republican 392 00:19:28,720 --> 00:19:29,160 Speaker 5: on the panel. 393 00:19:29,200 --> 00:19:29,960 Speaker 4: Are we all done here? 394 00:19:31,200 --> 00:19:31,720 Speaker 6: Pretty much? 395 00:19:31,720 --> 00:19:34,160 Speaker 10: But I still want to As I was talking about earlier, 396 00:19:34,200 --> 00:19:36,720 Speaker 10: I do think we need to watch John Curtis, especially 397 00:19:36,720 --> 00:19:40,239 Speaker 10: who came out just a few hours ago saying that 398 00:19:40,320 --> 00:19:42,240 Speaker 10: he needs to take another look at him, as well 399 00:19:42,280 --> 00:19:44,600 Speaker 10: as Tulsa Gabbert. So I do think that there's that 400 00:19:44,760 --> 00:19:47,400 Speaker 10: plus the three that we've always talked about in regards 401 00:19:47,440 --> 00:19:54,480 Speaker 10: to Susan Collins, Lisa Murkowski, and also Mitch McConnell. 402 00:19:55,080 --> 00:19:58,640 Speaker 4: Is why Mitch McConnell, just because Mitch. 403 00:19:58,440 --> 00:20:00,639 Speaker 10: Has always had a little bit of a thorn in 404 00:20:00,880 --> 00:20:04,520 Speaker 10: President Trump's side, And I also think that he takes 405 00:20:04,600 --> 00:20:07,959 Speaker 10: the stance of the United States in the world, especially 406 00:20:07,960 --> 00:20:11,600 Speaker 10: in regards to the military, very very seriously. He is 407 00:20:11,600 --> 00:20:14,119 Speaker 10: not up for re election anymore, he's not running and 408 00:20:14,160 --> 00:20:16,600 Speaker 10: he's not the majority leader, so he has the ability 409 00:20:16,760 --> 00:20:20,280 Speaker 10: to vote against someone if he needs to. I'm not 410 00:20:20,320 --> 00:20:24,400 Speaker 10: saying he will, he just has those those chains have. 411 00:20:24,400 --> 00:20:25,760 Speaker 4: Been broken and so to speak. 412 00:20:25,800 --> 00:20:27,680 Speaker 10: But John Curtis, I think is something early watch. 413 00:20:27,720 --> 00:20:28,840 Speaker 6: I agree. 414 00:20:28,880 --> 00:20:31,760 Speaker 10: I don't think that anyone's mind has been changed today. 415 00:20:31,800 --> 00:20:35,200 Speaker 10: Nothing new came out. Obviously, I thought Tammy Duckberts was 416 00:20:35,200 --> 00:20:37,800 Speaker 10: probably the strongest on the Democrat side in regards to 417 00:20:37,840 --> 00:20:41,320 Speaker 10: her personal history. But I just don't think And obviously 418 00:20:41,800 --> 00:20:45,160 Speaker 10: Senator earned Questions teed him up to answer the question 419 00:20:45,200 --> 00:20:47,760 Speaker 10: that was very important, which was about obviously women in 420 00:20:47,800 --> 00:20:48,400 Speaker 10: the military. 421 00:20:48,760 --> 00:20:51,000 Speaker 2: As you make the point that Senator Curtis has expressed 422 00:20:51,000 --> 00:20:53,800 Speaker 2: concerns not just about Hexeth but Toulci Gabbard as well. 423 00:20:53,840 --> 00:20:55,960 Speaker 2: Do you see a relationship here where the better this 424 00:20:56,040 --> 00:20:59,119 Speaker 2: process goes for him, the greater threat that it doesn't 425 00:20:59,119 --> 00:21:02,000 Speaker 2: go so well for her, because that could potentially open 426 00:21:02,000 --> 00:21:04,560 Speaker 2: the door for if Republicans are exercising one pass I'm 427 00:21:04,560 --> 00:21:07,680 Speaker 2: shooting down nominee, it might become her instead of him. 428 00:21:08,520 --> 00:21:11,119 Speaker 10: It could be and you know, will there'll be a 429 00:21:11,520 --> 00:21:15,199 Speaker 10: sacrificial lamb so to speak. I mean Obviously RFK is 430 00:21:15,280 --> 00:21:18,000 Speaker 10: still a concern. I mean the question here and obviously 431 00:21:18,040 --> 00:21:20,680 Speaker 10: cash Bettel as well, But the main questionnaire is some 432 00:21:20,760 --> 00:21:24,080 Speaker 10: of those FBI background checks that are still happening. So 433 00:21:24,240 --> 00:21:26,840 Speaker 10: there's obviously a lot of different conversations out there about 434 00:21:26,880 --> 00:21:30,639 Speaker 10: Tulsa Gabbert from what I understand, with her ability to 435 00:21:30,720 --> 00:21:36,080 Speaker 10: get her clearances continue to be extended and confirmed that 436 00:21:36,160 --> 00:21:39,719 Speaker 10: I don't know what is there that's not classified that 437 00:21:39,920 --> 00:21:43,440 Speaker 10: us as the general public don't know. So I think 438 00:21:43,520 --> 00:21:46,359 Speaker 10: that she probably is someone that could be a sacrificial 439 00:21:46,440 --> 00:21:48,960 Speaker 10: lamb as well as I still think that RFK has 440 00:21:49,000 --> 00:21:50,800 Speaker 10: an uproad pill battle. 441 00:21:51,200 --> 00:21:54,560 Speaker 5: Yeah, he has to still have a lot of meetings 442 00:21:55,000 --> 00:21:56,960 Speaker 5: for us to get a better sense of that. Genny, 443 00:21:57,000 --> 00:21:59,639 Speaker 5: I know where we are on Pete Hegseth not meeting 444 00:21:59,760 --> 00:22:01,800 Speaker 5: with Democrats here. I wonder where you are on the 445 00:22:01,840 --> 00:22:04,480 Speaker 5: background check. We talked to General Punaro about this earlier 446 00:22:04,480 --> 00:22:06,919 Speaker 5: in the hour that many Democrats on the panel have 447 00:22:07,000 --> 00:22:11,240 Speaker 5: complained that the FBI did not interviews ex wives or 448 00:22:11,280 --> 00:22:14,720 Speaker 5: the woman who accused him of sexual assaults in California 449 00:22:15,080 --> 00:22:17,719 Speaker 5: in twenty seventeen. Those apparently would have needed to be 450 00:22:17,760 --> 00:22:21,199 Speaker 5: requested by White House counsel either way, do they have 451 00:22:21,200 --> 00:22:22,640 Speaker 5: a full picture of the man? 452 00:22:24,080 --> 00:22:25,840 Speaker 9: Well, from what they're saying, they don't. 453 00:22:26,400 --> 00:22:26,680 Speaker 7: You know. 454 00:22:27,200 --> 00:22:30,320 Speaker 9: They are also complaining about the late timing in which, 455 00:22:30,480 --> 00:22:33,320 Speaker 9: you know, these reports are being given to the Senate, 456 00:22:34,000 --> 00:22:36,280 Speaker 9: and they don't feel like they're getting a full rundown. 457 00:22:36,320 --> 00:22:39,439 Speaker 9: There was also reporting that his previous wife, one of 458 00:22:39,440 --> 00:22:42,400 Speaker 9: his ex wives breached out to the FBI and didn't 459 00:22:42,440 --> 00:22:45,600 Speaker 9: get a call back. You know, I think that that 460 00:22:45,800 --> 00:22:48,960 Speaker 9: is worth thinking about. But I think the reality here 461 00:22:49,520 --> 00:22:53,800 Speaker 9: is that not only do we need more time with 462 00:22:54,000 --> 00:22:57,600 Speaker 9: Pete Hegseth, I think as a American public, I think 463 00:22:57,680 --> 00:23:01,200 Speaker 9: there's also an awful lot of conversation hasn't been had. 464 00:23:01,640 --> 00:23:05,119 Speaker 9: I mean, we've heard an awful lot about audits, internal challenges, 465 00:23:05,119 --> 00:23:09,040 Speaker 9: and the DoD about his issues involving women and other things. 466 00:23:09,440 --> 00:23:13,960 Speaker 9: But how about issues involving the security of the United States. 467 00:23:14,240 --> 00:23:17,119 Speaker 9: How about the fact we're losing the race with China, 468 00:23:17,200 --> 00:23:20,560 Speaker 9: in particular when it comes to how we're going to 469 00:23:20,600 --> 00:23:23,960 Speaker 9: be a twenty first century fighting machine. All of these 470 00:23:24,000 --> 00:23:26,119 Speaker 9: things have sort of gone by the wayside when you 471 00:23:26,160 --> 00:23:29,640 Speaker 9: give senators seven minutes each, So to me, I think 472 00:23:29,760 --> 00:23:33,800 Speaker 9: Republicans could do better in terms of giving their members 473 00:23:33,960 --> 00:23:37,760 Speaker 9: more time to have more robust conversations with all of 474 00:23:37,800 --> 00:23:40,600 Speaker 9: these nominees. I understand they want to do this fast, 475 00:23:40,920 --> 00:23:43,000 Speaker 9: but this is the last time we get to hear 476 00:23:43,040 --> 00:23:45,040 Speaker 9: this kind of back and forth, and I think we 477 00:23:45,200 --> 00:23:48,399 Speaker 9: deserve more, so that you abandoning that practice, to me 478 00:23:48,960 --> 00:23:52,720 Speaker 9: is really problematic, Ashley. 479 00:23:53,600 --> 00:23:55,800 Speaker 10: There's two things that I just want to addressed. So 480 00:23:55,920 --> 00:23:59,920 Speaker 10: the FBI background checks after a huge slate of kinins 481 00:24:00,000 --> 00:24:03,480 Speaker 10: secretaries like this, they always, at least under my experience 482 00:24:03,560 --> 00:24:06,360 Speaker 10: on the Bush administration, they do come up last minute. Obviously, 483 00:24:06,400 --> 00:24:09,160 Speaker 10: the same thing I know happened under the Biden administration. 484 00:24:10,640 --> 00:24:12,320 Speaker 10: The thing that I really want to get into here 485 00:24:12,440 --> 00:24:18,320 Speaker 10: quickly is going through numerous FBI checks and at various levels. 486 00:24:19,080 --> 00:24:21,119 Speaker 10: The point is not to call the ex wife. The 487 00:24:21,200 --> 00:24:24,359 Speaker 10: point is to call, you know, the ex roommate or 488 00:24:24,400 --> 00:24:26,760 Speaker 10: the neighbor that you had when you were twenty five 489 00:24:26,840 --> 00:24:31,000 Speaker 10: years old. The FBI's role is to get to the 490 00:24:31,000 --> 00:24:33,960 Speaker 10: third layer, the fourth layer, not the public information. So 491 00:24:34,040 --> 00:24:37,040 Speaker 10: it doesn't bother me as much that he didn't talk 492 00:24:37,080 --> 00:24:39,359 Speaker 10: to the ex wife. They didn't talk to the ex wife. 493 00:24:39,359 --> 00:24:43,639 Speaker 10: It's more and by the way, it's not common that 494 00:24:43,800 --> 00:24:46,560 Speaker 10: FBI backgrounds are given to every single person on the committee, 495 00:24:46,720 --> 00:24:48,280 Speaker 10: So that is not something that in. 496 00:24:48,240 --> 00:24:50,359 Speaker 4: This case, it was the chair and ranking member, right, correct, 497 00:24:50,400 --> 00:24:51,439 Speaker 4: which is very normous. 498 00:24:51,800 --> 00:24:56,720 Speaker 10: Yes, But so I just I remember f when I 499 00:24:56,760 --> 00:24:59,040 Speaker 10: went through my own personal background checks. I remember like 500 00:24:59,080 --> 00:25:01,879 Speaker 10: a random person in college that I barely knew was 501 00:25:02,720 --> 00:25:05,120 Speaker 10: but not like my college roommate, you know. So it's 502 00:25:05,200 --> 00:25:08,960 Speaker 10: like that's what they do. Yeah, so it doesn't bother 503 00:25:09,040 --> 00:25:09,600 Speaker 10: me as much. 504 00:25:09,720 --> 00:25:13,359 Speaker 5: Well important knowing that this has been a point of controversy, 505 00:25:13,400 --> 00:25:18,040 Speaker 5: and I suspect we'll be for all of these confirmation hearings, Kaylee, 506 00:25:18,080 --> 00:25:19,760 Speaker 5: Donald Trump didn't want any of them to have FBI 507 00:25:19,800 --> 00:25:20,760 Speaker 5: background checks at one. 508 00:25:20,720 --> 00:25:24,040 Speaker 2: Point, well, yeah, they weren't signing those typical transition documents 509 00:25:24,080 --> 00:25:26,600 Speaker 2: in order to speed this process along just quickly. Here though, 510 00:25:26,640 --> 00:25:28,680 Speaker 2: on the President elect Genie, it was pointed out by 511 00:25:28,680 --> 00:25:31,919 Speaker 2: Senator Gary Peters during the course of his questioning that 512 00:25:31,960 --> 00:25:36,000 Speaker 2: there were five either confirmed or acting secretaries of Defense 513 00:25:36,200 --> 00:25:38,960 Speaker 2: in the first Trump administration. Even if Pete Hegseith is 514 00:25:39,000 --> 00:25:41,639 Speaker 2: able to get the votes and be confirmed, should we 515 00:25:41,680 --> 00:25:43,880 Speaker 2: have more confidence this time around that he'll be able 516 00:25:43,880 --> 00:25:45,399 Speaker 2: to stick in that job? 517 00:25:46,600 --> 00:25:49,080 Speaker 9: Oh, I don't know. You know, Donald Trump likes to 518 00:25:49,200 --> 00:25:52,240 Speaker 9: fire people. We've seen that he's done it on TV, 519 00:25:52,480 --> 00:25:55,360 Speaker 9: so you know, I'm not sure they'll stick. But that's 520 00:25:55,400 --> 00:25:56,679 Speaker 9: the president's prerogative. 521 00:25:56,760 --> 00:25:57,359 Speaker 8: So we could. 522 00:25:57,600 --> 00:25:59,640 Speaker 9: Pete hegg Seth, if he's confirmed, could be the first 523 00:25:59,720 --> 00:26:00,600 Speaker 9: of few. 524 00:26:02,000 --> 00:26:05,080 Speaker 4: Boy, well, I guess we'll see about that. Genie, Thank 525 00:26:05,119 --> 00:26:05,520 Speaker 4: you so much. 526 00:26:05,560 --> 00:26:08,560 Speaker 5: Genie Shanzano Ashley Davis with us here at the table 527 00:26:08,640 --> 00:26:09,360 Speaker 5: in Washington. 528 00:26:09,760 --> 00:26:09,879 Speaker 6: Uh. 529 00:26:10,040 --> 00:26:13,199 Speaker 5: I can't imagine going through the process, the full FBI 530 00:26:13,280 --> 00:26:14,000 Speaker 5: background check. 531 00:26:14,080 --> 00:26:17,560 Speaker 2: When she said random people from college, I write, yeah, Shook. 532 00:26:17,960 --> 00:26:19,280 Speaker 2: That proposition is terry. 533 00:26:19,320 --> 00:26:20,399 Speaker 10: It's why you don't lie. 534 00:26:20,600 --> 00:26:22,840 Speaker 4: You do say you have. 535 00:26:22,760 --> 00:26:24,640 Speaker 5: To warn all your family and friends though right hey, 536 00:26:24,640 --> 00:26:25,879 Speaker 5: you might be getting a phone call. 537 00:26:26,040 --> 00:26:27,639 Speaker 10: That's what I did, and none of them got the 538 00:26:27,680 --> 00:26:29,959 Speaker 10: phone calls. It was the third layer that got the 539 00:26:29,960 --> 00:26:31,160 Speaker 10: phone calls. 540 00:26:31,160 --> 00:26:32,399 Speaker 2: One people. 541 00:26:32,840 --> 00:26:35,119 Speaker 4: Yes, at every stage. What a great panel. 542 00:26:38,440 --> 00:26:41,920 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch 543 00:26:42,000 --> 00:26:45,000 Speaker 1: us live weekdays at noon and five pm Eastern on 544 00:26:45,160 --> 00:26:48,400 Speaker 1: Alma Cocklay and Android Auto with the Bloomberg Business App. 545 00:26:48,560 --> 00:26:51,840 Speaker 1: Listen on demand wherever you get your podcasts, or watch 546 00:26:51,880 --> 00:26:53,439 Speaker 1: us live on YouTube. 547 00:26:54,640 --> 00:26:55,440 Speaker 4: Watch you Wall Street. 548 00:26:55,480 --> 00:26:58,720 Speaker 5: As we cover politics, they frequently cross over. It's a 549 00:26:58,720 --> 00:27:00,399 Speaker 5: little bit different today or though they're has been a 550 00:27:00,440 --> 00:27:05,919 Speaker 5: conversation about defense contracting, the dB and of course, reforming 551 00:27:06,040 --> 00:27:09,600 Speaker 5: procurement at the Pentagon as part of Pete Hegseth's wide 552 00:27:09,680 --> 00:27:13,520 Speaker 5: ranging conversation before the Senate Armed Services Committee. That hearing 553 00:27:13,680 --> 00:27:16,720 Speaker 5: is still underway but just about to conclude, with twenty 554 00:27:16,840 --> 00:27:20,480 Speaker 5: seven senators each taking their time to ask questions of 555 00:27:20,520 --> 00:27:24,119 Speaker 5: Donald Trump's nominee to run the Defense Department, Kaylee. At 556 00:27:24,119 --> 00:27:28,000 Speaker 5: times it has been about cultural issues some of the 557 00:27:28,040 --> 00:27:31,080 Speaker 5: allegations that have surrounded Hegseth, including his personal behavior when 558 00:27:31,080 --> 00:27:34,640 Speaker 5: it comes to women, when it comes to alcohol DEI, 559 00:27:34,880 --> 00:27:38,960 Speaker 5: women in combat, but also just the hard brass tax 560 00:27:39,000 --> 00:27:43,240 Speaker 5: of managing a massive bureaucracy, the massive budget that you'd 561 00:27:43,280 --> 00:27:46,680 Speaker 5: be in control of managing people, which has experienced that 562 00:27:46,720 --> 00:27:48,920 Speaker 5: he does not have, though he seems to convince a 563 00:27:48,960 --> 00:27:50,560 Speaker 5: lot of Republicans that he can do the job. 564 00:27:51,119 --> 00:27:53,440 Speaker 2: Yeah, it's interesting. We've heard a lot of numbers throughout 565 00:27:53,480 --> 00:27:55,800 Speaker 2: the course of this hearing, the idea that the Pentagon, 566 00:27:55,840 --> 00:27:58,000 Speaker 2: the Department of Defense, does have three million people, that 567 00:27:58,040 --> 00:27:59,960 Speaker 2: has a budget of eight hundred and fifty billion dollar. 568 00:28:00,280 --> 00:28:02,360 Speaker 2: These are really big figures that we're working with. We've 569 00:28:02,400 --> 00:28:05,120 Speaker 2: also heard over the course of this hearing, including from 570 00:28:05,119 --> 00:28:07,840 Speaker 2: Senator Jony Earts, for example, and from Headseth himself, about 571 00:28:07,880 --> 00:28:11,000 Speaker 2: a desire to get some of those figures down, specifically 572 00:28:11,520 --> 00:28:14,760 Speaker 2: on the dollar figure side. As we talk about the 573 00:28:14,800 --> 00:28:18,280 Speaker 2: auditing process at the Pentagon, or perhaps the lack thereof. 574 00:28:18,280 --> 00:28:22,040 Speaker 2: It's those kind of internal substantive issues that we want 575 00:28:22,080 --> 00:28:24,240 Speaker 2: to get into now with our next guest, doctor Anya 576 00:28:24,280 --> 00:28:26,720 Speaker 2: Manuel is joining us. She's co founder of the strategic 577 00:28:26,760 --> 00:28:30,680 Speaker 2: consulting firm Rice Hadley Gates and Manual also executive director 578 00:28:30,960 --> 00:28:34,119 Speaker 2: of the Aspen Strategy Group. Welcome to balance a power Anya, 579 00:28:34,200 --> 00:28:36,200 Speaker 2: Good to have you here on Bloomberg TV and Radio. 580 00:28:36,280 --> 00:28:39,880 Speaker 2: And we consider the kind of size and scale of 581 00:28:39,920 --> 00:28:43,560 Speaker 2: that internal DoD challenge that peak Headseth is making the 582 00:28:43,560 --> 00:28:46,640 Speaker 2: case he is able to take on here if he 583 00:28:46,680 --> 00:28:50,880 Speaker 2: is indeed confirmed to be the next Secretary of Defense, 584 00:28:51,040 --> 00:28:53,440 Speaker 2: Just how hard is it going to be to actually 585 00:28:53,480 --> 00:28:55,800 Speaker 2: execute and then the period of just four years. 586 00:28:57,280 --> 00:29:00,160 Speaker 8: Yeah, happy to be with you, Kaylee, Thanks for having 587 00:29:00,160 --> 00:29:03,160 Speaker 8: me on. You stated all the numbers. This is an 588 00:29:03,400 --> 00:29:06,400 Speaker 8: enormous department to run the biggest department that the US 589 00:29:06,480 --> 00:29:12,480 Speaker 8: government has, so real experience running large bureaucracies is important. 590 00:29:12,560 --> 00:29:15,760 Speaker 8: Let me give you two points. One the outside challenges 591 00:29:16,160 --> 00:29:20,120 Speaker 8: that the United States faces. This is really a more 592 00:29:20,200 --> 00:29:24,080 Speaker 8: dangerous period we haven't faced since frankly, between the two 593 00:29:24,200 --> 00:29:28,040 Speaker 8: World Wars. Great powers are acting badly. You're dealing with 594 00:29:28,080 --> 00:29:31,680 Speaker 8: a rising China that needs to be managed. You're dealing 595 00:29:31,680 --> 00:29:40,400 Speaker 8: with a Russia that is continuing to pommel Ukraine unjustly. 596 00:29:40,960 --> 00:29:43,800 Speaker 8: You have Iran, which is currently on its back foot 597 00:29:43,840 --> 00:29:47,480 Speaker 8: but can always cause trouble. So there are enormous geopolitical 598 00:29:47,560 --> 00:29:50,240 Speaker 8: challenges that the next Secretary of Defense will have to 599 00:29:50,280 --> 00:29:54,280 Speaker 8: face without getting US substantially involved in any of these 600 00:29:54,320 --> 00:29:58,320 Speaker 8: wars as we currently are not on the internal side. 601 00:29:58,400 --> 00:30:00,880 Speaker 8: You said a lot in a It's come up in 602 00:30:00,920 --> 00:30:04,520 Speaker 8: the hearing. This is an enormous budget. One of the 603 00:30:04,560 --> 00:30:07,280 Speaker 8: big things that will have to happen is the procurement 604 00:30:07,400 --> 00:30:09,959 Speaker 8: of the Pentagon will need to be reformed. We are 605 00:30:10,000 --> 00:30:12,920 Speaker 8: not currently buying the weapons that we need for the 606 00:30:12,960 --> 00:30:16,160 Speaker 8: wars of the twenty first century. That alone is one 607 00:30:16,240 --> 00:30:19,800 Speaker 8: hundred and forty two billion dollar budget. Very very important, 608 00:30:20,160 --> 00:30:23,320 Speaker 8: and in my experience working with a Pentagon and with others. 609 00:30:23,680 --> 00:30:26,800 Speaker 8: You need to bring the people of an organization along 610 00:30:26,840 --> 00:30:29,560 Speaker 8: if you're going to make real change inside an organization. 611 00:30:30,040 --> 00:30:33,040 Speaker 8: If you just do it by fiat from above, they'll 612 00:30:33,080 --> 00:30:34,520 Speaker 8: fight you every step of the way. 613 00:30:35,600 --> 00:30:39,200 Speaker 5: Let's put a finer point on reforming procurement here, because 614 00:30:39,640 --> 00:30:43,320 Speaker 5: Joe Biden just named the next two aircraft carriers for 615 00:30:43,360 --> 00:30:45,680 Speaker 5: Bill Clinton and for George W. 616 00:30:45,840 --> 00:30:46,400 Speaker 4: Bush. 617 00:30:46,840 --> 00:30:49,120 Speaker 5: Is that in itself part of the reform that needs 618 00:30:49,160 --> 00:30:51,640 Speaker 5: to happen. We keep hearing from Elon Musk. It should 619 00:30:51,680 --> 00:30:54,400 Speaker 5: be all unmanned, it should be drones from now on. 620 00:30:54,520 --> 00:30:58,680 Speaker 5: But we have massive and very expensive weapons programs that 621 00:30:58,760 --> 00:31:00,440 Speaker 5: are set to continue on for years. 622 00:31:00,440 --> 00:31:01,640 Speaker 4: So where does the reform begin? 623 00:31:02,760 --> 00:31:06,520 Speaker 8: Yeah, we do. There's lots of opinions on how you reform. 624 00:31:06,680 --> 00:31:10,320 Speaker 8: It's been tried multiple times. I think the Biden administration 625 00:31:10,480 --> 00:31:13,720 Speaker 8: deserves some credit for doing things like the Replicator program, 626 00:31:13,760 --> 00:31:19,160 Speaker 8: which is getting drones and unmanned vehicles much faster into 627 00:31:19,280 --> 00:31:23,080 Speaker 8: our system. But these are still small things. You can't 628 00:31:23,120 --> 00:31:27,240 Speaker 8: just scrap the large weapon systems wholeheartedly, but you can 629 00:31:27,440 --> 00:31:30,480 Speaker 8: start trimming some of them, cutting the ones that are 630 00:31:30,560 --> 00:31:32,960 Speaker 8: likely to be sitting ducks. There's going to be a 631 00:31:33,080 --> 00:31:34,920 Speaker 8: huge I don't want to get into the details of this, 632 00:31:34,960 --> 00:31:37,040 Speaker 8: because they're going to be huge debates on what do 633 00:31:37,080 --> 00:31:39,080 Speaker 8: you cut, what do you not cut. Every time you 634 00:31:39,120 --> 00:31:43,320 Speaker 8: try to cut any big procurement weapon system, people crawl 635 00:31:43,320 --> 00:31:45,959 Speaker 8: out of the woodwork because those are good jobs in 636 00:31:46,000 --> 00:31:48,880 Speaker 8: America in certain districts, and so you need to have 637 00:31:48,920 --> 00:31:51,560 Speaker 8: a good relationship with the US Congress to do some 638 00:31:51,640 --> 00:31:53,959 Speaker 8: of those things. I would say one of the most 639 00:31:54,040 --> 00:31:57,200 Speaker 8: effective secretaries of Defense we have had is my own 640 00:31:57,520 --> 00:32:02,040 Speaker 8: current business partner, Bob Gates. He cut billions in over 641 00:32:02,080 --> 00:32:04,840 Speaker 8: ten years from the Pentagon budget, and he did it 642 00:32:04,920 --> 00:32:08,680 Speaker 8: without ruffling too many of the feathers. 643 00:32:10,400 --> 00:32:10,600 Speaker 7: Well. 644 00:32:10,640 --> 00:32:13,840 Speaker 2: Obviously, as we consider the budget and what exactly it 645 00:32:13,880 --> 00:32:16,280 Speaker 2: pays for, a lot of that is heading into the 646 00:32:16,320 --> 00:32:18,920 Speaker 2: defense industrial base, which you were just speaking to. Obviously, 647 00:32:18,960 --> 00:32:20,600 Speaker 2: a lot of this is made in the US, and 648 00:32:20,640 --> 00:32:23,200 Speaker 2: this has come to the four of conversation in regard 649 00:32:23,320 --> 00:32:26,600 Speaker 2: to the supply of ammunition and other weapons systems for Ukraine. 650 00:32:26,640 --> 00:32:28,640 Speaker 2: It was argued that really is an investment in the 651 00:32:28,680 --> 00:32:31,440 Speaker 2: defense industrial base here at home, even though we're sending 652 00:32:31,520 --> 00:32:34,720 Speaker 2: it elsewhere. How much progress really has been made when 653 00:32:34,760 --> 00:32:37,560 Speaker 2: it comes though to the dib Anya versus what actually 654 00:32:37,600 --> 00:32:40,000 Speaker 2: needs to be done to fortify the US's ability to 655 00:32:40,000 --> 00:32:42,800 Speaker 2: continue providing for its own defense and the defense of 656 00:32:42,840 --> 00:32:43,520 Speaker 2: its allies. 657 00:32:44,440 --> 00:32:47,560 Speaker 8: Yeah, very good question. Hard to quantify it. Boy, if 658 00:32:47,600 --> 00:32:51,160 Speaker 8: we started at zero, we're now maybe thirty forty percent 659 00:32:51,200 --> 00:32:54,160 Speaker 8: of the way there. But more has to happen. What's 660 00:32:54,200 --> 00:32:59,000 Speaker 8: always very difficult is to tell companies to ramp up 661 00:32:59,080 --> 00:33:04,360 Speaker 8: production without having very clear contracts going far into the 662 00:33:04,400 --> 00:33:06,520 Speaker 8: future about how that will be used. And that's going 663 00:33:06,600 --> 00:33:10,080 Speaker 8: to continue to be a problem, and the next administration 664 00:33:10,160 --> 00:33:12,360 Speaker 8: will have to continue to wrestle with it. I would 665 00:33:12,360 --> 00:33:15,000 Speaker 8: say the Biden administration has made a really pretty good start. 666 00:33:15,040 --> 00:33:22,800 Speaker 5: Here are senators asking any of the right questions today. 667 00:33:22,880 --> 00:33:27,280 Speaker 8: I have only watched part of the hearings. I do 668 00:33:27,360 --> 00:33:29,920 Speaker 8: hear a lot of substance, a lot of what you 669 00:33:30,000 --> 00:33:33,840 Speaker 8: said in your preview. This is a large organization, three 670 00:33:33,920 --> 00:33:36,560 Speaker 8: million people. It needs to be run well. You can't 671 00:33:36,600 --> 00:33:39,880 Speaker 8: just break the system in order to rebuild it. You 672 00:33:40,000 --> 00:33:43,600 Speaker 8: have to really manage it from within. And by the way, 673 00:33:43,960 --> 00:33:46,760 Speaker 8: the Department is doing a lot of really important tasks 674 00:33:46,840 --> 00:33:49,400 Speaker 8: right now, and you can't take your eye off that ball. 675 00:33:49,520 --> 00:33:51,480 Speaker 8: So I do think some of the questions that have 676 00:33:51,520 --> 00:33:55,040 Speaker 8: been asked about Indo Pacific security, how we continue our 677 00:33:55,080 --> 00:33:57,560 Speaker 8: work with our allies in the Indo Pacific, which I 678 00:33:57,560 --> 00:34:00,480 Speaker 8: think is one of the great strength of what the 679 00:34:00,480 --> 00:34:05,400 Speaker 8: Biden administration did, really rebuilding those alliances with Japan, with Korea, 680 00:34:05,480 --> 00:34:09,359 Speaker 8: with the Philippines, with Australia, with India. Those are all 681 00:34:09,480 --> 00:34:12,000 Speaker 8: very important and I do hope the next Secretary of 682 00:34:12,000 --> 00:34:13,400 Speaker 8: Defense keeps those going. 683 00:34:14,680 --> 00:34:14,839 Speaker 6: Well. 684 00:34:14,880 --> 00:34:16,960 Speaker 2: Of course, Pete Hegseth would like it to be him. 685 00:34:17,000 --> 00:34:19,280 Speaker 2: We are looking here on Bloomberg TV and on YouTube 686 00:34:19,320 --> 00:34:22,279 Speaker 2: at a live shot of the hearing room which has 687 00:34:22,480 --> 00:34:25,640 Speaker 2: just of course concluded the hearing itself, and Pete Hegseth, 688 00:34:25,640 --> 00:34:27,960 Speaker 2: along with his wife by his side, are now sharing 689 00:34:28,040 --> 00:34:31,839 Speaker 2: hubs with a few members inside the room. Anya. Some 690 00:34:31,920 --> 00:34:34,040 Speaker 2: of what we heard from Pete Hegseth today in regard 691 00:34:34,080 --> 00:34:36,239 Speaker 2: to the operations of the Pentagon, and especially when he 692 00:34:36,360 --> 00:34:39,680 Speaker 2: was under questioned from senators on his views around things 693 00:34:39,719 --> 00:34:43,279 Speaker 2: like DEI or women in combat, was this notion that 694 00:34:43,360 --> 00:34:46,399 Speaker 2: some of these initiatives that we have seen in recent years, 695 00:34:46,400 --> 00:34:49,880 Speaker 2: whether it is allowing more equal gender opportunity or keeping 696 00:34:50,160 --> 00:34:52,680 Speaker 2: diversity equity and inclusion in mind that it was slowing 697 00:34:52,719 --> 00:34:56,440 Speaker 2: down the Pentagon or somehow making the Department of Defense 698 00:34:56,840 --> 00:34:59,239 Speaker 2: less able to be the most lethal fighting force in 699 00:34:59,280 --> 00:35:01,960 Speaker 2: the world. Is there any real truth in that statement 700 00:35:02,000 --> 00:35:04,400 Speaker 2: that these other initiatives that were described in this hearing 701 00:35:04,960 --> 00:35:09,000 Speaker 2: as being politically oriented issues are actually affecting the defense 702 00:35:09,040 --> 00:35:10,720 Speaker 2: capability of the United States. 703 00:35:12,200 --> 00:35:15,000 Speaker 8: I don't have the in depth knowledge to evaluate whether 704 00:35:15,040 --> 00:35:20,360 Speaker 8: that's been harmful or helpful or neither. When I interact 705 00:35:20,680 --> 00:35:24,839 Speaker 8: with as an outsider, with our troops around the world, 706 00:35:24,920 --> 00:35:27,799 Speaker 8: with our military leaders around the world, I find them 707 00:35:28,000 --> 00:35:32,680 Speaker 8: engaged and strong and smart and practical, and I think 708 00:35:33,640 --> 00:35:38,200 Speaker 8: our military leaders are doing an extraordinary job managing a 709 00:35:38,560 --> 00:35:41,680 Speaker 8: really complex to geopolitical environment. And I just want to 710 00:35:41,800 --> 00:35:44,960 Speaker 8: get back to that because if you look at the 711 00:35:45,080 --> 00:35:47,759 Speaker 8: challenges we're facing now. We talk briefly about the Indo 712 00:35:47,800 --> 00:35:51,560 Speaker 8: Pacific the Ukraine War. Even if President Trump would like 713 00:35:51,600 --> 00:35:55,120 Speaker 8: it to end on day one of his presidency, that's unlikely. 714 00:35:55,160 --> 00:35:58,000 Speaker 8: You need to bring that conflict to a managed conclusion, 715 00:35:58,400 --> 00:36:01,759 Speaker 8: and that involves working well with our allies. I know 716 00:36:01,880 --> 00:36:05,000 Speaker 8: that the Supreme Allied Commander we currently have in Europe 717 00:36:05,040 --> 00:36:07,960 Speaker 8: has done a great job with that, so that continues. 718 00:36:08,200 --> 00:36:12,200 Speaker 8: What's going on in the Middle East is ending, but 719 00:36:12,480 --> 00:36:16,040 Speaker 8: very slowly. You need to continue to manage Hezbollah, you 720 00:36:16,080 --> 00:36:18,600 Speaker 8: need to manage the conflict in Gaza with Israel. So 721 00:36:19,640 --> 00:36:23,920 Speaker 8: supporting our military to the best of our ability is 722 00:36:23,960 --> 00:36:26,319 Speaker 8: going to be a very important thing, both for the 723 00:36:26,360 --> 00:36:29,239 Speaker 8: Congress and for the new civilians in the administration. 724 00:36:30,480 --> 00:36:32,960 Speaker 5: There's been a lot of talk about same day confirmations 725 00:36:33,040 --> 00:36:36,799 Speaker 5: or day one confirmations. I should say, will Pete Hegseth 726 00:36:37,520 --> 00:36:41,319 Speaker 5: be among them, assuming that Democrats play along or Republicans 727 00:36:41,440 --> 00:36:45,040 Speaker 5: have the vote on January twentieth confirmed to be the 728 00:36:45,040 --> 00:36:46,760 Speaker 5: next secretary. 729 00:36:47,320 --> 00:36:49,840 Speaker 8: I can't speculate to that. You'll have to continue to 730 00:36:49,880 --> 00:36:53,399 Speaker 8: hear the hearings well. 731 00:36:53,400 --> 00:36:57,200 Speaker 2: When we consider though the urgency senators may feel, or 732 00:36:57,200 --> 00:37:00,200 Speaker 2: that the President may feel in making sure that these 733 00:37:00,360 --> 00:37:03,000 Speaker 2: and him and other nominees are confirmed quickly, it does 734 00:37:03,040 --> 00:37:04,799 Speaker 2: speak to some of the very things that you were 735 00:37:04,840 --> 00:37:06,680 Speaker 2: just discussing with us, this notion that we are at 736 00:37:06,719 --> 00:37:11,920 Speaker 2: a very tense time geopolitically in many parts of the world. 737 00:37:12,000 --> 00:37:15,640 Speaker 2: There has been a lot of conversation, including just yesterday 738 00:37:15,640 --> 00:37:18,480 Speaker 2: here at Bloomberg when the outgoing US National Security Advisor 739 00:37:18,600 --> 00:37:21,400 Speaker 2: Jake Sullivan joined our colleague about this notion that the 740 00:37:21,400 --> 00:37:24,000 Speaker 2: Biden administration initially came in wanting to be able to 741 00:37:24,040 --> 00:37:27,040 Speaker 2: focus on the Indo Pacific, on the threat from China, 742 00:37:27,160 --> 00:37:30,799 Speaker 2: and got instead sidelined by the events in the Middle East. 743 00:37:30,800 --> 00:37:33,160 Speaker 2: How do you see the kind of balance between these 744 00:37:33,160 --> 00:37:37,080 Speaker 2: different theaters heading into this next administration over the course 745 00:37:37,080 --> 00:37:39,440 Speaker 2: of the next four years, especially if there is some 746 00:37:39,520 --> 00:37:42,640 Speaker 2: kind of at least temporary resolution between Israel and Hamas 747 00:37:42,680 --> 00:37:44,160 Speaker 2: that all sides are fighting for right now. 748 00:37:45,080 --> 00:37:47,879 Speaker 8: Yeah, the Middle East just draws people back in over 749 00:37:47,920 --> 00:37:52,320 Speaker 8: and over again, and as much as repeated US administrations 750 00:37:52,360 --> 00:37:55,839 Speaker 8: have wanted to wash their hands of it and walk away, unfortunately, 751 00:37:55,880 --> 00:37:59,920 Speaker 8: we need to be engaged. That doesn't mean directly involve 752 00:38:00,080 --> 00:38:02,040 Speaker 8: in war, but we need to be engaged in the 753 00:38:02,040 --> 00:38:04,560 Speaker 8: world to prevent wars, to keep us from having to 754 00:38:04,600 --> 00:38:09,200 Speaker 8: be directly involved, because the international geopolitical system hates a vacuum, 755 00:38:09,480 --> 00:38:12,319 Speaker 8: and every time there's a vacuum, it's filled, frankly by 756 00:38:12,320 --> 00:38:16,839 Speaker 8: the bad guys. Like you saw Russia filling in in Syria. 757 00:38:17,800 --> 00:38:24,160 Speaker 8: You've seen Russia invade Ukraine, You've seen an increasingly belligerent China. 758 00:38:24,239 --> 00:38:26,719 Speaker 8: That we need to be watching. So we don't have 759 00:38:26,840 --> 00:38:31,120 Speaker 8: the leisure as leaders in the United States to turn 760 00:38:31,160 --> 00:38:34,239 Speaker 8: away from any of these very important conflicts. We need 761 00:38:34,280 --> 00:38:35,840 Speaker 8: to be engaged in all of them. And if you 762 00:38:36,000 --> 00:38:38,960 Speaker 8: talk to our friends and partners around the world, they 763 00:38:39,040 --> 00:38:40,840 Speaker 8: want us to continue to be engaged. 764 00:38:42,640 --> 00:38:45,920 Speaker 5: All right, Doctor anyat Manuel Co Federal, the strategic consulting 765 00:38:45,920 --> 00:38:48,560 Speaker 5: firm Rice Headley Gates Manual, we thank you so much, 766 00:38:52,239 --> 00:38:55,440 Speaker 5: thanks for listening to the Balance of Power podcast. Make 767 00:38:55,440 --> 00:38:58,400 Speaker 5: sure to subscribe if you haven't already an Apple, Spotify, 768 00:38:58,480 --> 00:39:01,080 Speaker 5: or wherever you get your podcasts, and you can find 769 00:39:01,120 --> 00:39:03,920 Speaker 5: us live every weekday from Washington, d C. At noontime 770 00:39:04,040 --> 00:39:06,200 Speaker 5: Eastern at Bloomberg dot com.