WEBVTT - Bloomberg Surveillance: Gary Cohn on Inflation, Tax Cuts 0:00:00.040 --> 0:00:02.200 With us around the table on place to say Gary 0:00:02.240 --> 0:00:03.080 Cowed morning. 0:00:02.800 --> 0:00:04.080 Gary, Good morning, John. Thanks. 0:00:04.080 --> 0:00:06.720 I reflecting on our conversations we used to have many 0:00:06.800 --> 0:00:08.800 years ago when you were in front of the White 0:00:08.800 --> 0:00:11.960 House and you use this term the threes, Are we 0:00:12.000 --> 0:00:13.680 going back to the threes? Is that what you think 0:00:13.680 --> 0:00:14.280 we're going back to? 0:00:15.120 --> 0:00:17.000 It feels like we're going back to the threes, you know, 0:00:17.160 --> 0:00:19.400 in the threes. For those that don't remember me standing 0:00:19.400 --> 0:00:20.800 in front of the White House talking about the threes, 0:00:21.000 --> 0:00:24.440 I was talking about three percent GDP, three percent unemployment 0:00:24.640 --> 0:00:27.080 and three percent wage growth. That was sort of the 0:00:27.120 --> 0:00:30.080 sweet spot that we were trying to achieve at the time, 0:00:30.400 --> 0:00:33.280 and we thought that was a really good solid place 0:00:33.440 --> 0:00:35.800 for the United States economy to be, and that was 0:00:35.800 --> 0:00:37.200 sort of the goal. That was sort of the middle 0:00:37.200 --> 0:00:39.159 of the target that we were trying to hit, you know, 0:00:39.280 --> 0:00:42.040 month after month, as we were talking on those fridays 0:00:42.159 --> 0:00:43.520 after we released job data. 0:00:43.680 --> 0:00:45.400 What I've noticed from you is that we seem to 0:00:45.440 --> 0:00:46.880 have forgotten what normalists. 0:00:47.000 --> 0:00:49.080 Well, we totally forgot what You've. 0:00:48.920 --> 0:00:51.120 Been around for a long time. You've seen many cycles 0:00:51.440 --> 0:00:52.200 what is normal. 0:00:52.440 --> 0:00:56.160 So this is a campaign I'm on in many respects 0:00:56.160 --> 0:00:57.640 that we have forgot what normalists. 0:00:58.040 --> 0:01:00.040 So to go back to what normal. 0:00:59.800 --> 0:01:02.400 Is have to go back to the post two thousand 0:01:02.440 --> 0:01:05.559 and eight financial crisis, because since two thousand and eight, 0:01:06.240 --> 0:01:09.760 you know, the FED has been the overwhelming dominant feature 0:01:10.160 --> 0:01:12.920 of financial markets. So prior to two thousand and eight, 0:01:12.959 --> 0:01:15.440 you know, FED meetings were important, but we didn't live 0:01:15.480 --> 0:01:17.520 in die off FED meetings. In fact, I'm old enough 0:01:17.520 --> 0:01:20.400 to remember when money supply was what drove markets. Now 0:01:20.440 --> 0:01:23.080 I'm really dating myself on money supply there. But then 0:01:23.160 --> 0:01:25.800 we get to two thousand and eight and the FED 0:01:25.880 --> 0:01:28.960 goes into the whole policy of zero interest rates and 0:01:29.959 --> 0:01:33.919 quantitative easy, followed by many other central banks around the world. 0:01:34.000 --> 0:01:35.959 And as the FED goes into the zero interest rate 0:01:35.959 --> 0:01:38.639 policy and they continue to build a bigger and bigger 0:01:38.720 --> 0:01:42.920 balance sheet, they become the dominant factor in financial markets. 0:01:43.000 --> 0:01:44.720 Not just in the fixed think of markets, not just 0:01:44.760 --> 0:01:47.680 in the rate markets. But when you literally have zero 0:01:47.840 --> 0:01:51.480 rates in return, you're literally forcing people out into the 0:01:51.560 --> 0:01:55.320 risk spectrum. So you bring many, many other asset classes 0:01:55.320 --> 0:01:58.440 that have historically not been appealing to people, You bring 0:01:58.480 --> 0:02:01.600 them into play. Because the search for return, the search 0:02:01.680 --> 0:02:04.600 for yield, you go farther out on the respector so, 0:02:04.640 --> 0:02:07.320 we lived through the two thousand and eighth period all 0:02:07.360 --> 0:02:09.760 the way up to basically, I would say COVID with 0:02:09.840 --> 0:02:13.200 this zero interest rate policy. People looking for alternative assets, 0:02:13.320 --> 0:02:16.679 looking for yield, searching for it in unusual places. 0:02:17.120 --> 0:02:19.680 We come into the COVID period. 0:02:19.800 --> 0:02:22.040 And sort of the Fed stays in their zero interest 0:02:22.080 --> 0:02:24.280 rate policy because they have no idea, really what's happening. 0:02:24.480 --> 0:02:26.400 I'm not sure that that's a mistake. You know, when 0:02:26.400 --> 0:02:28.640 you don't know what's happening, don't make a change. And 0:02:28.680 --> 0:02:31.560 then all of a sudden, we get into the we'll 0:02:31.560 --> 0:02:35.480 call it the Biden administration, and we've gone through five 0:02:35.560 --> 0:02:38.639 stimulus packages in the United States, and all of a sudden, 0:02:38.680 --> 0:02:42.200 we've got us consumers with the best balance sheet they've 0:02:42.200 --> 0:02:46.520 had in their life, enormous amount of disposable income, the 0:02:46.600 --> 0:02:49.200 ability to finally go out and spend it after not 0:02:49.360 --> 0:02:51.880 having the ability for almost two years to spend anything 0:02:51.919 --> 0:02:53.919 that Like I said, you can't buy it at the 0:02:53.960 --> 0:02:56.720 grocery store, FedEx or UPS or the United States Mail 0:02:56.720 --> 0:02:59.320 Service can't deliver to you can't buy it. We now 0:02:59.360 --> 0:03:01.400 have the ability to go out and spend that money 0:03:01.480 --> 0:03:03.480 and lo and behold, we end up in a highly 0:03:03.520 --> 0:03:08.160 inflationary cycle. So the FED goes from this zero interest 0:03:08.200 --> 0:03:11.680 rate trying to drive economic growth, trying to drive inflation. 0:03:12.720 --> 0:03:15.320 And I always remind my best friends, you know, if 0:03:15.320 --> 0:03:18.440 you would have picked up any newspaper prior to two thousand, 0:03:18.639 --> 0:03:20.720 in that two thousand and eight to two thousand and 0:03:20.919 --> 0:03:23.359 twenty period, the FED headline would have been can the 0:03:23.400 --> 0:03:24.800 Fed ever create inflation again? 0:03:25.360 --> 0:03:26.320 So now we're back in. 0:03:26.240 --> 0:03:29.840 This highly inflated period, and the FED goes from you know, 0:03:29.960 --> 0:03:32.640 quantitative ease and to quantitative tightening, to zero interust rate 0:03:32.680 --> 0:03:35.520 policies to fifty basis points sort of month in and 0:03:35.640 --> 0:03:40.160 month out. So we have been through this fifteen plus 0:03:40.240 --> 0:03:43.800 year cycle of what I would call abnormal. On top 0:03:43.840 --> 0:03:46.360 of that, we end up with this inverted yield curve. 0:03:46.400 --> 0:03:49.920 Because everyone's convinced the Fed's raising rates. The FED has 0:03:49.960 --> 0:03:53.000 to slow down the economy. We have to see job degradation, 0:03:53.600 --> 0:03:56.440 so we have to go into recession. I think the 0:03:56.480 --> 0:03:59.360 missing component there was how strong personal balance sheets were. 0:04:00.080 --> 0:04:01.119 Don't go into recession. 0:04:01.680 --> 0:04:03.880 We still have an inverted yield curve, which I don't 0:04:03.880 --> 0:04:04.680 think is normal. 0:04:05.160 --> 0:04:07.040 So I think now for. 0:04:07.040 --> 0:04:10.200 The first time, in this fifteen year period, we're getting 0:04:10.240 --> 0:04:13.520 to position where we're starting, and we're just at the 0:04:13.640 --> 0:04:17.040 very beginning of heading back towards normal and what normal 0:04:17.120 --> 0:04:19.839 would be, and so reminding people a little bit what 0:04:19.880 --> 0:04:22.240 normal looks like. It's going back to the three three three. 0:04:22.640 --> 0:04:25.640 But historically we have a positively shaped yield curve in 0:04:25.640 --> 0:04:29.040 the United States, we have a risk premium historically. If 0:04:29.080 --> 0:04:32.080 you look at ten year yields, the ten year average 0:04:32.200 --> 0:04:34.440 yield in the United States, you can either put in 0:04:34.480 --> 0:04:36.440 the vulgar fed or you can take out the vulgar fed. 0:04:36.880 --> 0:04:40.200 With the vulgar fed, it's it's it's four point six 0:04:40.200 --> 0:04:42.400 percent without its four point three percent. 0:04:42.680 --> 0:04:44.320 If you put aside all of this right, if you 0:04:44.360 --> 0:04:47.479 take a look at the FED and say, okay, it's 0:04:47.480 --> 0:04:49.960 on the back table, you start to look at the economy. 0:04:50.040 --> 0:04:50.880 It looks pretty good. 0:04:51.000 --> 0:04:52.080 It doesn't look like we're going. 0:04:51.960 --> 0:04:54.279 Into recession a great. Why do people feel so bad? 0:04:55.480 --> 0:05:00.120 Here's why people feel bad. Like the inflation number or 0:05:00.120 --> 0:05:03.200 the inflation data is the most peculiar data we have 0:05:03.279 --> 0:05:06.600 in the United States. We count inflation either month over 0:05:06.680 --> 0:05:09.760 month or year over year. We don't zero baseline it 0:05:09.800 --> 0:05:13.640 anywhere and so when we talk about inflation, we say 0:05:13.760 --> 0:05:16.320 how much inflation do we have over last month? And 0:05:16.320 --> 0:05:18.120 if we had inflation month over month, it means what 0:05:18.160 --> 0:05:19.920 you paid last month this year and what you're paying 0:05:19.960 --> 0:05:22.560 this month is higher. If we have inflation year over year, 0:05:22.760 --> 0:05:27.200 same thing. So we've seen the compounding effect of a 0:05:27.360 --> 0:05:29.480 three percent inflation year, a nine percent in place year, 0:05:29.480 --> 0:05:31.800 a three percent all that adds up to twenty plus percent. 0:05:32.279 --> 0:05:35.360 So when you're a consumer today, you're a hard working consumer. Today, 0:05:35.920 --> 0:05:39.480 your basket of groceries is twenty plus percent more than 0:05:39.520 --> 0:05:41.400 you think it should be worth and what it was 0:05:41.480 --> 0:05:45.240 worth two years ago. So the compounding effect of inflation, 0:05:45.360 --> 0:05:48.200 because we don't have a zero baseline basket, is really 0:05:48.200 --> 0:05:51.719 what's affecting people's mentality. The second part of the equation 0:05:51.880 --> 0:05:55.400 is people are working harder. They're working more jobs to 0:05:55.440 --> 0:05:57.640 be able to buy what they want to buy. The 0:05:57.760 --> 0:06:00.000 savings from the pandemic is gone. 0:06:00.120 --> 0:06:00.880 It's not all gone. 0:06:00.920 --> 0:06:02.400 There's still a lot of it sitting in treasury and 0:06:02.440 --> 0:06:02.920 money market. 0:06:03.160 --> 0:06:04.160 But if you look at the. 0:06:04.040 --> 0:06:08.440 Financial position of many Americans that went from high consumer 0:06:08.480 --> 0:06:11.880 debt going into the pandemic, then they went from consumer 0:06:11.920 --> 0:06:14.000 debt being wiped out. They went to high savings right 0:06:14.080 --> 0:06:16.360 because they were sort of forced in. They've actually spent 0:06:16.400 --> 0:06:18.120 all that money back. They're back the way they started. 0:06:18.120 --> 0:06:20.719 They're back at consumer debt. So they do care a 0:06:20.760 --> 0:06:23.760 lot about the inflation and they care about their purchasing power. 0:06:24.000 --> 0:06:28.440 And we are talking about wages today exceeding inflation, but 0:06:28.480 --> 0:06:30.720 that's on a sort of spot market basis. We haven't 0:06:30.720 --> 0:06:32.360 talked about it over a one year or a. 0:06:32.279 --> 0:06:33.040 Two year basis. 0:06:33.160 --> 0:06:35.000 You know, I got to say, I wonder how messy 0:06:35.040 --> 0:06:37.000 the data is as well. And if you were still 0:06:37.000 --> 0:06:40.480 the head of the Economic Council advising the president, how 0:06:40.480 --> 0:06:43.719 would you communicate the idea that we're seeing churn, massive 0:06:43.800 --> 0:06:49.360 churn in response to technological advancement. Something about eBay laying 0:06:49.400 --> 0:06:51.520 off nine percent of its staff because it needs to 0:06:51.720 --> 0:06:54.440 upgrade certain things, or SAP in Germany. You're seeing this 0:06:54.520 --> 0:06:57.480 again and again. How much is that featuring into the 0:06:57.520 --> 0:06:58.559 messiness of the data. 0:06:59.160 --> 0:07:01.080 You know, we always have mess with data, you know, 0:07:01.279 --> 0:07:05.000 we're always we never really get totally totally clean data. 0:07:05.160 --> 0:07:07.520 You know, we could talk about all the revisions to 0:07:07.600 --> 0:07:10.440 the unemployment data. You know, it's a survey data, and 0:07:10.480 --> 0:07:12.960 then they go, they go and revise the data from 0:07:12.960 --> 0:07:15.320 a month and two months ago, and sometimes the revisions 0:07:15.320 --> 0:07:16.000 are bigger. 0:07:15.760 --> 0:07:18.840 Than the actual data. But we of course fixate. 0:07:18.520 --> 0:07:20.880 On the data on that Friday, and then a month 0:07:20.960 --> 0:07:24.080 later we say, oh, that data was completely wrong. So 0:07:25.040 --> 0:07:27.440 if you're in the world of looking for the clean, 0:07:27.520 --> 0:07:31.720 pure answer, our economic data doesn't give you really clean, 0:07:31.840 --> 0:07:34.120 pure answers on a real time basis. If you look 0:07:34.160 --> 0:07:36.119 at the data over a cycle and over a period, 0:07:36.200 --> 0:07:38.760 it gets very clean over time. I think you've got 0:07:38.760 --> 0:07:40.800 to look at the data on a longer period of trend. 0:07:41.000 --> 0:07:42.560 That's why a lot of people like like I look 0:07:42.600 --> 0:07:43.400 at the Jultry report. 0:07:43.520 --> 0:07:45.920 I think jolts is really interesting to me because it 0:07:45.960 --> 0:07:49.560 shows job openings, amount of people looking. 0:07:49.600 --> 0:07:50.560 But like what's in there. 0:07:50.560 --> 0:07:53.080 There's some really interesting numbers in there. It shows you 0:07:53.080 --> 0:07:55.640 how many people quit their job. Quits to me is 0:07:55.680 --> 0:07:58.680 like one of the important numbers. People only quit their 0:07:58.760 --> 0:08:01.520 job when they feel like there's a better job out there, 0:08:01.880 --> 0:08:04.880 So it's a pure measure of what people's psychology on 0:08:04.960 --> 0:08:07.560 the market is. When the quit rate goes up, it 0:08:07.680 --> 0:08:10.680 means I believe I can get a better job, better paying, 0:08:10.920 --> 0:08:12.000 better quality of life. 0:08:12.080 --> 0:08:13.240 And I'm not worried about quitting. 0:08:13.280 --> 0:08:15.480 When the quick rate goes down, people are saying, Okay, 0:08:15.520 --> 0:08:17.840 the job market's not very good. I should be happy 0:08:17.840 --> 0:08:19.160 with the job I have. I don't love it, but 0:08:19.200 --> 0:08:20.720 I should be happy happy with the job I have. 0:08:21.040 --> 0:08:22.200 So there's data out there. 0:08:22.200 --> 0:08:24.160 If you put it all together, I think you can 0:08:24.200 --> 0:08:26.040 create a pretty clean picture for yourself. 0:08:26.120 --> 0:08:29.600 Unlike this administration. Gary would actually communicate Ramo that would 0:08:29.600 --> 0:08:31.120 be the answer to that, but we won't get into 0:08:31.160 --> 0:08:33.800 that now. With us around a table for some final thoughts, 0:08:33.960 --> 0:08:35.800 Gary cond Gary, I know you don't want to talk 0:08:35.800 --> 0:08:37.400 about a horse Rice. We won't do that, But I 0:08:37.400 --> 0:08:40.080 do want to talk about policy. Sure, tax cuts, Tarrists. 0:08:40.200 --> 0:08:42.480 Let's start with tax cuts. Haven't you been talked about 0:08:42.520 --> 0:08:44.280 You and I caught up yesterday, and I have to say, 0:08:44.559 --> 0:08:46.559 I haven't talked about the tax cuts and all the 0:08:46.600 --> 0:08:48.240 money that starts to come back into the country for 0:08:48.240 --> 0:08:50.440 the best part of six years or something like that. 0:08:50.480 --> 0:08:53.640 How relevant are yesterday's tax cuts to today's economy. 0:08:53.800 --> 0:08:56.840 Well, the twenty seventeen tax cuts, and I think they're 0:08:57.440 --> 0:09:00.560 really important. So this is back on the theme of normalization. 0:09:01.280 --> 0:09:04.559 So since we really got the tax cuts through that 0:09:04.600 --> 0:09:08.640 were signed December twenty second of twenty seventeen. We sort 0:09:08.679 --> 0:09:12.760 of had eighteen nineteen. We had two normalized years. Eighteen 0:09:12.840 --> 0:09:15.719 was sort of an implementation year, and we saw some 0:09:15.800 --> 0:09:17.320 really amazing things start happening. 0:09:17.320 --> 0:09:19.840 We saw real repatriation. 0:09:19.480 --> 0:09:22.680 Of foreign overseas money, so trillion and a half dollars 0:09:22.800 --> 0:09:25.400 come back in the United States because in the old 0:09:25.440 --> 0:09:28.520 tax system, corporations because leave their money offshore and they 0:09:28.520 --> 0:09:30.640 didn't have to pay US taxes, so they brought it back. 0:09:30.840 --> 0:09:33.640 We deemed that money to have brought back, so we 0:09:33.720 --> 0:09:34.439 taxed it. 0:09:34.440 --> 0:09:35.400 It got brought back. 0:09:36.000 --> 0:09:38.000 I think when you see what's going on as the 0:09:38.040 --> 0:09:40.800 manufacturing boom in the United States right now, which started 0:09:40.960 --> 0:09:43.280 in that period of time, a lot of that has 0:09:43.320 --> 0:09:46.560 to do with this repatriated money. Historically, when companies couldn't 0:09:46.559 --> 0:09:49.040 bring their money back, they had to invest it overseas. 0:09:49.240 --> 0:09:52.640 They built manufacturing overseas, they invested in property, plant and equipment. 0:09:52.920 --> 0:09:55.280 Now that they're being tax no matter whether they bring 0:09:55.320 --> 0:09:57.440 it back or not, they're bringing it back, they're paying 0:09:57.480 --> 0:09:58.160 the tax. 0:09:57.920 --> 0:09:58.720 And they're investing. 0:09:58.960 --> 0:10:02.640 So you've seen the creation of manufacturing in the United States. 0:10:02.720 --> 0:10:05.959 This started in twenty eighteen and nineteen as companies started 0:10:06.000 --> 0:10:11.040 bringing back their repatriated money. You've also seen the growth 0:10:11.040 --> 0:10:13.120 that we've seen in consumption. You've seen the growth in the. 0:10:13.040 --> 0:10:15.240 Middle class is ability to spend money. 0:10:15.360 --> 0:10:19.480 Hard working individuals got a real tax cut, and that's 0:10:19.520 --> 0:10:22.839 why I think people have missed the economic picture of 0:10:22.840 --> 0:10:26.360 the United States so badly. Everyone calling for this recession 0:10:26.480 --> 0:10:28.800 over the last year and a half, I don't think 0:10:28.840 --> 0:10:33.920 they understood the additional consumptive powers that the tax cuts created. 0:10:34.480 --> 0:10:39.120 We put real additional disposable income into people's pockets, and 0:10:39.160 --> 0:10:41.520 we did it on purpose. We made some very conscientious 0:10:41.520 --> 0:10:46.520 decisions to make sure that we were delivering real taxable 0:10:46.640 --> 0:10:51.000 returns or less tax to the hardest working individuals in America. 0:10:51.080 --> 0:10:53.000 And it takes time for that to feed through the system. 0:10:53.080 --> 0:10:55.760 It doesn't happen year one and then we go through COVID, 0:10:55.840 --> 0:11:00.880 So you get all these unnatural, dominous and now we're 0:11:00.880 --> 0:11:03.880 back that what I say is more normal behavior. People 0:11:03.920 --> 0:11:07.320 are understanding what their taxable income is. You know, we're 0:11:07.360 --> 0:11:10.120 some of the programs that we put in twenty seventeen 0:11:10.160 --> 0:11:12.680 have expired, and I'm happy to say that we're seeing 0:11:12.760 --> 0:11:15.959 some bipartisan legislation to reinstate some of those programs. 0:11:16.000 --> 0:11:18.719 There's a bill going through the House right now to. 0:11:18.720 --> 0:11:22.400 Reinstate some of the child tax credits along with accelerated 0:11:22.440 --> 0:11:25.640 appreciation and the write off of R and D credits. 0:11:25.679 --> 0:11:28.120 We think both sides of that equation they were in 0:11:28.160 --> 0:11:29.040 the original tax bill. 0:11:29.040 --> 0:11:30.120 We think they're both important. 0:11:30.440 --> 0:11:32.520 You know, you're taking care of both sides of the equation. 0:11:32.600 --> 0:11:34.960 We have to take care of hard working families with children, 0:11:35.080 --> 0:11:37.640 and we have to incentivize companies to continue to do 0:11:37.760 --> 0:11:39.560 R and D and continue to invest in the country. 0:11:39.559 --> 0:11:41.959 There are those individual tax Customer twenty seventeen are set 0:11:41.960 --> 0:11:42.679 to be expired. 0:11:43.360 --> 0:11:47.080 As you say, that helps individuals and taxes. 0:11:46.640 --> 0:11:49.320 But if you have a ten percent tariff wall around 0:11:49.360 --> 0:11:52.000 the United States, it's a massive tax on consumers. 0:11:52.840 --> 0:11:53.200 It is. 0:11:53.320 --> 0:11:57.200 So Look, the tariff wall is something that needs to 0:11:57.200 --> 0:12:01.040 be discussed. I know it's a potential. It's being discussed 0:12:01.040 --> 0:12:04.480 out there, and it's an idea. It's something that's being 0:12:04.559 --> 0:12:07.080 used to potentially pay for the. 0:12:06.960 --> 0:12:08.920 Future tax plan. When it negated. 0:12:09.559 --> 0:12:12.920 It's like, I think we shouldn't get too far ahead 0:12:12.920 --> 0:12:15.839 of ourselves right now. As you said, the personal side 0:12:15.840 --> 0:12:19.960 of the tax reform package terminates in twenty twenty five, 0:12:20.600 --> 0:12:23.400 there will be enormous amount of discussion to what happens 0:12:23.440 --> 0:12:26.720 between now and twenty twenty five. It will be important 0:12:26.760 --> 0:12:28.960 to what the makeup of Congress looks like, to what 0:12:29.000 --> 0:12:31.240 you are able to do, what you're not willing to do. 0:12:31.679 --> 0:12:34.560 Are you going to be able to do this through reconciliation? 0:12:34.760 --> 0:12:36.600 Are you going to be able to do through normal order? 0:12:36.640 --> 0:12:37.599 Are you going to be able to do with a 0:12:37.640 --> 0:12:41.160 simple majority? To do that, that means the Republicans would 0:12:41.200 --> 0:12:43.080 have to control the House, the Senate, in the White House, 0:12:43.320 --> 0:12:45.960 if you've got to split Congress, or maybe the Democrats 0:12:45.960 --> 0:12:49.400 control all three. If you're doing it through reconciliation, you're 0:12:49.400 --> 0:12:51.000 going to be able to do it through one set 0:12:51.080 --> 0:12:51.760 of policies. 0:12:51.800 --> 0:12:52.720 If you do it through. 0:12:52.559 --> 0:12:54.920 Regular order, you're going to have to have a much 0:12:54.960 --> 0:12:58.800 more of a compromise on what goes on here. So 0:12:59.120 --> 0:13:01.840 I think that the ideas that are being talked about 0:13:01.960 --> 0:13:05.400 right now are concepts. And this is what's interesting about 0:13:05.400 --> 0:13:07.160 the electro process in the United States, And I think 0:13:07.160 --> 0:13:08.400 this is why it's important. 0:13:08.559 --> 0:13:10.280 This is a time where where. 0:13:10.080 --> 0:13:14.000 Potential candidates and incumbents and we actually have a couple 0:13:14.000 --> 0:13:16.880 of incumbents running. They get to tell us about their 0:13:16.920 --> 0:13:19.560 ideas of how they want to run the government. 0:13:19.920 --> 0:13:21.000 And these are ideas. 0:13:21.160 --> 0:13:23.000 If you look at the history, there are concepts, and 0:13:23.000 --> 0:13:25.880 they're starting places, they're not necessarily ending places. 0:13:26.080 --> 0:13:28.319 Premos go thoughts, I know when Lass go thoughts. 0:13:28.400 --> 0:13:30.360 Oh no, I just to me the idea. So many 0:13:30.400 --> 0:13:32.520 people have come on and said, we're taking it seriously. 0:13:32.559 --> 0:13:35.120 If Trump says something, we're starting seriously. And Gary Cone 0:13:35.160 --> 0:13:35.720 is saying. 0:13:35.520 --> 0:13:36.199 Eh, maybe not. 0:13:36.360 --> 0:13:38.520 You know, you got to look at the whole process. Unfortunately, 0:13:38.520 --> 0:13:39.880 we're out of time, but we'll have to get you 0:13:39.920 --> 0:13:40.679 back to talk about that. 0:13:40.880 --> 0:13:43.040 Gary's going to see you. Thanks Morna, Thank you, sir 0:13:43.120 --> 0:13:43.600 Gary Khan.