Speaker 1: Good morning, Colorado Springs, Colorado. Thank you for listening on Applecarplay,
Speaker 1: Android Auto. When you're a young cherub and you go
Speaker 1: to Colorado College, you study physics, which is what David
Speaker 1: Malpass did joining as a former president of the World Bank.
Speaker 1: Iconic at bear Sterns years ago. David Malpast darkens the
Speaker 1: door this morning. Casey has yet to concede. In Pennsylvania. Tuberville,
Speaker 1: the football coach, dragged you into the Senate.
Speaker 2: He said, we need Senate testimony from.
Speaker 1: David Malpass on you know, global economics and all that.
Speaker 1: You're one of the few people I know that's actually
Speaker 1: been in the trenches in the United States Senate. Do
Speaker 1: you see with this new administration, David, with your affiliation
Speaker 1: with the Republicans, do you see a suddenness rapid movement
Speaker 1: between the executive and the legislative branch?
Speaker 3: Or will it be slower and more iterative? And that's
Speaker 3: a great question and issue. I think it'll be pretty
Speaker 3: fast because there really is a mandate from the country
Speaker 3: to bring change.
Speaker 2: Then, how do you see a mandate?
Speaker 1: I've got Vice President Harrison narrow it down to fifty forty.
Speaker 1: It's something like two hundred and thirty eight thousand votes
Speaker 1: and three swing states. I got a guy in a
Speaker 1: San Joaquin Valley right now, Republican winning by under.
Speaker 2: Three hundred votes.
Speaker 1: If the Democrats take west of Fresno, it's one more
Speaker 1: Democrat in the House.
Speaker 4: It's not a mandate, David, I beg to differ. So
Speaker 4: it means all seven of the swing states were one.
Speaker 4: And if you look at all the demographics, in other words,
Speaker 4: each but if you parse it by age, if you
Speaker 4: parsh it by skills, you get people wanting change. And
Speaker 4: so that means the Senate is going to come let's
Speaker 4: come to your question. There's a turnover, a very important
Speaker 4: turnover of the majority leader, and you know, the staff
Speaker 4: on all the committees turns over, and so there will
Speaker 4: be people whose lifeblood is not regulating, and so that
Speaker 4: means a big change in how the Senate operates. Of course,
Speaker 4: it's the deliberative body, and it will take time to
Speaker 4: get some stuff done. But I'd imagine there's going to
Speaker 4: be a tax movement on the tax front very quickly,
Speaker 4: of course, on energy and on on on trade where
Speaker 4: the system is broken. So you'll see all of that moving,
Speaker 4: you know, month by month pretty rapidly.
Speaker 5: What do you think of some of the president's cabinet
Speaker 5: nominations to date?
Speaker 2: What is it?
Speaker 5: What have you kind of sensed?
Speaker 4: He's well, I think they're great. But what you see
Speaker 4: is him wanting change, change, change, And so that to
Speaker 4: me is the signal coming out of each area. Put
Speaker 4: strong people in that want change. Look at the energy
Speaker 4: pick so Chris, Chris right, Bergham are really strong, Lee Zelden,
Speaker 4: and these are these are the energy side that can
Speaker 4: make you know, if you think about how do you
Speaker 4: make America strong again? And this is peace through strength?
Speaker 4: Where do you get the strength from production? How do
Speaker 4: you do that? You get the energy sector going so
Speaker 4: that you can build all the other things that go
Speaker 4: into an economy.
Speaker 1: Yeah, but we're like, aren't we like the number one
Speaker 1: energy power in the world now bigger than Saudi Arabia.
Speaker 2: There's an oversupply.
Speaker 1: McGlone says, a barrel of oil is going to twelve
Speaker 1: bucks a barrel.
Speaker 4: I'm kidding, well, stranger, you remember when to ten dollars
Speaker 4: a barrel in the year two nineteen ninety nine and
Speaker 4: two thousand, when the dollar was super strong, overly strong.
Speaker 4: So I don't know that we want it that low,
Speaker 4: but it would be good if it comes down. And
Speaker 4: the bigger thing is the US could be doing so
Speaker 4: much more. You just named parts of the world that
Speaker 4: are plentifully supplied, but there are huge parts of the
Speaker 4: world that don't have enough energy. And think of the
Speaker 4: craziness that we've got because of the lack of pipelines.
Speaker 4: We've got the energy. The LNG goes through the Panama Canal.
Speaker 4: Such a wasteful use of the water. You know, Panama
Speaker 4: Canal is driven by free flowing water that comes from rain,
Speaker 4: and you wash the ships down both sides of the canal,
Speaker 4: and you're doing it to get LNG to Asia from
Speaker 4: the unit from the east coast.
Speaker 2: Build the harbor overlooking they're already San Francisco Giants Stadium.
Speaker 4: That there needs to be some way to get energy
Speaker 4: onto the west coast of either the US or Canada.
Speaker 4: They're building one into Mexico, But how does that really
Speaker 4: help the US if you have to go down through
Speaker 4: Mexico to get your energy out of the out of
Speaker 4: the hymns, it's too much geography.
Speaker 2: With David milpensins, I'll save the conversation.
Speaker 5: Speaking of down in that part of the world. The
Speaker 5: G twenty is just finishing up down in Rio here.
Speaker 5: How do you think President elect Trump views the entities
Speaker 5: organizations like the G twenty and that try to think
Speaker 5: about things on a global basis. How do you think
Speaker 5: he anticipates engaging.
Speaker 4: I don't know how he thinks about it, but it
Speaker 4: should be clear to everyone that that the globalism isn't working.
Speaker 4: This is the giant conferences. Think of that ten literally
Speaker 4: tens of thousands of people. I've had to go to
Speaker 4: these conferences. We recently saw the one in Baku. Think
Speaker 4: of the absurdity of having the climate conference in Baku, Azerbaijan,
Speaker 4: which is the conduit for Russian oil coming under the
Speaker 4: sanctions out into the rest of the world.
Speaker 2: So you've got this and.
Speaker 4: Literally it's ten thousand people from that are all trying
Speaker 4: to get government contracts. So it's a climate industrial complex,
Speaker 4: just like the military industrial complex that's so expensive. You
Speaker 4: need to have strong defense for the US, but you
Speaker 4: need to have it in a way that's competitive in
Speaker 4: the world.
Speaker 1: Dato malpess with the former president of the World Bank.
Speaker 1: I'm thrilled that he could join us this morning.
Speaker 2: We welcome all of you on.
Speaker 1: Your commute across nation and of course on YouTube subscribe
Speaker 1: to Bloomberg Podcast. I have literally on the desk at home,
Speaker 1: No Trade is Free. I'm going to read it cover
Speaker 1: to cover just to get an understanding of Lightheiser economics.
Speaker 1: You're at Colorado College lecturing EC one O two macroeconomics.
Speaker 1: David Malpass discussed the efficacy of tariffs.
Speaker 4: The system is broken in the world. It was set
Speaker 4: up at a time before China was the number.
Speaker 2: Two world power.
Speaker 4: You had a concept in the sixties and seventies that
Speaker 4: somehow there could be kumbaya that everybody could cover together.
Speaker 4: Everyone formed a deal, and everybody lower.
Speaker 2: Vice President Harris would agree with you.
Speaker 4: And it's completely broken down because you have this giantly
Speaker 4: aggressive commercial power that's not playing by the rules on
Speaker 4: intellectual property, on their overcapacity of manufactured goods.
Speaker 2: So it's a it's a.
Speaker 4: You know, taking away marks from the rest of it.
Speaker 2: Do we need tariffs?
Speaker 1: Did are gradual and marginal or do we need the
Speaker 1: jump condition that the President elect talks about a magnitude
Speaker 1: of tariffs that haven't seen in generations.
Speaker 4: You need to get the world's attention that what they're
Speaker 4: doing is broken. I don't know if you saw, but
Speaker 4: President she was in South America last week and he
Speaker 4: was making the case to all the other world leaders
Speaker 4: to go gradual. And so China is kind of bidding
Speaker 4: for time. They're saying, oh, this is gonna you know,
Speaker 4: we're moving in your direction. And so whether the rest
Speaker 4: of the world buys that, and you know, China often
Speaker 4: pays for it with contracts, with gifts, gifts that can
Speaker 4: be shared in families, and so how do you stop
Speaker 4: that and really get onto a new wavelength with China
Speaker 4: and with the rest of the world.
Speaker 5: In fairness, should the US approach to China be one
Speaker 5: of engagement or one of you know, just trying to
Speaker 5: really step back from China.
Speaker 2: How do you think the approach would be?
Speaker 4: I think there has so for too many years now,
Speaker 4: China's been getting what it wants. I saw that in
Speaker 4: the World conferences. They really are winning on the on
Speaker 4: the soft power. And so you have to take that
Speaker 4: back because the US has all the all the ability
Speaker 4: to do this, it just has been choosing not to
Speaker 4: do it. You know, we've been trying to get peace
Speaker 4: through weakness, and so if you switch to peace through strength,
Speaker 4: China is going to change its side of the of
Speaker 4: the discussion as well. They're not. I mean, they've followed
Speaker 4: very closely what's going on in the US, and we'll
Speaker 4: be responding to it. So then you've got to say, Okay,
Speaker 4: we've got a bunch of problems. Here's our list of problems.
Speaker 4: You're producing too much steal with too much coal, with
Speaker 4: and claiming and then pushing climate agenda through the Paris
Speaker 4: Agreement that you're not complying with. We don't like that
Speaker 4: intellectual property you're stealing. You've never let down on stealing
Speaker 4: the intellectual property.
Speaker 1: David, I got one final question, with great respect Tom
Speaker 1: Nichols the Death of Expertise Profound book. I interviewed him
Speaker 1: when it came out. We're trying to get mister Nichols
Speaker 1: on again to talk about it. This is an administration.
Speaker 1: David Malpass has the best English skills of anyone I've
Speaker 1: ever known on Wall Street. You and John Writing were
Speaker 1: prodigious in your economic output for Alan Schwartz at Bear Sterns,
Speaker 1: your physics Colorado collegey You're the real deal on a
Speaker 1: conservative tone. Some of these people have zero expertise. What
Speaker 1: would you say to the President elect right now, if
Speaker 1: these people are pushed aside by Senator.
Speaker 2: Well, I don't think that'll happen.
Speaker 4: But what I think what the president can see is
Speaker 4: that he's clearly on the He's got a powerful path
Speaker 4: that's taxes, energy, that's making Why is he running.
Speaker 1: Then from expertise because there are conservatives like you that
Speaker 1: have their head screwed.
Speaker 4: On a problem is expertise often has meant your inside
Speaker 4: the belt Way with their models, and so if we
Speaker 4: really have to have an upheaval where you shake it
Speaker 4: up with people that have views from outside, I got to.
Speaker 2: Make some news today.
Speaker 1: Have you been called by the president by Susan Are
Speaker 1: you going to serve within the Trump administration?
Speaker 2: Come on news? Okay.
Speaker 1: David Malpass, thank you so much. Formerly with the World Bank,
Speaker 1: and of course running within public office within New York
Speaker 1: State for the Senate.
Speaker 2: I believe it was Did I do that? Okay? You
Speaker 2: have to pick up truck and everything right winter all
Speaker 2: around you survived, Okay.
Speaker 4: It's a great state.
Speaker 2: David Malpass, thank you.