1 00:00:00,360 --> 00:00:03,600 Speaker 1: Live from this budget thing is going to do nothing. 2 00:00:03,760 --> 00:00:06,440 Speaker 1: Space Forces. I still think it's interesting President Trump not 3 00:00:06,559 --> 00:00:10,760 Speaker 1: playing his cards yet. Headlines Policy and politics colliding, sound 4 00:00:10,800 --> 00:00:15,280 Speaker 1: on with Kevin's related the Insiders, the influencers, the insides. 5 00:00:15,400 --> 00:00:17,680 Speaker 1: I would rather see a congressional solution. It's part of 6 00:00:17,680 --> 00:00:20,840 Speaker 1: my DNA. The Senate map in looks a lot different 7 00:00:20,840 --> 00:00:23,640 Speaker 1: than it looked in. You really have a divide within 8 00:00:23,840 --> 00:00:26,439 Speaker 1: Team Trump. The President has to do exactly what people 9 00:00:26,440 --> 00:00:28,960 Speaker 1: seven here to do, which is to get it done. 10 00:00:28,520 --> 00:00:33,320 Speaker 1: He's sound on with Kevin's he related on Bloomberg one 11 00:00:33,479 --> 00:00:36,280 Speaker 1: and one oh five point seven a m h D two, Baltimore. 12 00:00:38,920 --> 00:00:43,320 Speaker 1: Another dramatic day on Capitol Hill the Squad. The Squad 13 00:00:43,440 --> 00:00:48,680 Speaker 1: looks to expand Freshman Congresswoman Alexandria Acasio Cortez and co. 14 00:00:49,479 --> 00:00:53,320 Speaker 1: Continuing their back and forth with President Trump. I'll bring 15 00:00:53,360 --> 00:00:55,200 Speaker 1: you the latest on whether or not it's having any 16 00:00:55,280 --> 00:00:59,960 Speaker 1: policy implications on Capitol Hill. Speaking of Capitol Hill, I'm 17 00:01:00,040 --> 00:01:04,560 Speaker 1: broadcasting live from inside of the House Financial Services Committee room. 18 00:01:04,600 --> 00:01:07,520 Speaker 1: Just within the last hour facebook Day two of its 19 00:01:07,520 --> 00:01:12,480 Speaker 1: hearings regarding its new digital currency, Libra has finally concluded, 20 00:01:12,520 --> 00:01:15,720 Speaker 1: and I'm standing right next to the chairwoman of that committee, 21 00:01:15,760 --> 00:01:18,679 Speaker 1: Maxine Water, is a Democrat from California. Chairwoman, thank you 22 00:01:18,680 --> 00:01:21,679 Speaker 1: for making the time. What did you make of the 23 00:01:21,760 --> 00:01:25,600 Speaker 1: testimony from David Marcus, the chief of Facebook is overseeing 24 00:01:25,840 --> 00:01:30,880 Speaker 1: this digital currency platform. David Marcus came here today at 25 00:01:30,880 --> 00:01:34,640 Speaker 1: our request UH to tell us what Libra is, and 26 00:01:34,680 --> 00:01:37,600 Speaker 1: what Calibre is, and what they're planning, and why they're 27 00:01:37,600 --> 00:01:40,600 Speaker 1: in Switzerland, all of those questions that we asked him. 28 00:01:41,040 --> 00:01:43,800 Speaker 1: I think that he skirted some of the most significant 29 00:01:43,880 --> 00:01:47,560 Speaker 1: questions I had asked far more term because we knew 30 00:01:47,600 --> 00:01:50,280 Speaker 1: nothing about what they were doing and how they were 31 00:01:50,320 --> 00:01:53,280 Speaker 1: doing it, and so he did not answer the question. 32 00:01:53,320 --> 00:01:56,520 Speaker 1: He tried to skirt that by talking about how they 33 00:01:56,520 --> 00:01:59,080 Speaker 1: were going to take time, how they were going to 34 00:01:59,120 --> 00:02:02,720 Speaker 1: give consideration into all of the questions, etcetera, and ensure 35 00:02:02,800 --> 00:02:05,360 Speaker 1: that they would not harm consumers. But it was not 36 00:02:05,440 --> 00:02:09,160 Speaker 1: good enough. Not only did he UH skirt the question 37 00:02:09,200 --> 00:02:13,799 Speaker 1: about the moratorm, we specifically ask about regulation and what 38 00:02:13,919 --> 00:02:18,359 Speaker 1: regulators do he think should oversee them, and I specifically 39 00:02:18,400 --> 00:02:22,280 Speaker 1: asked about f stock, and so he did not answer that. 40 00:02:22,320 --> 00:02:24,560 Speaker 1: He skirted that. Earlier this week, I was at the 41 00:02:24,560 --> 00:02:28,280 Speaker 1: White House attending that press briefing with Treasury Secretary Stephen Venusian, 42 00:02:28,320 --> 00:02:30,239 Speaker 1: and you might be surprised to hear this, but there's 43 00:02:30,240 --> 00:02:32,720 Speaker 1: actually seems to be some agreement at least in the 44 00:02:32,720 --> 00:02:36,720 Speaker 1: skepticism that the White House has that you have with 45 00:02:36,800 --> 00:02:41,080 Speaker 1: these digital currencies. You mentioned Treasury Secretary mentioned finn send 46 00:02:42,040 --> 00:02:45,040 Speaker 1: which regulator will be taking the lead on these digital 47 00:02:45,080 --> 00:02:48,920 Speaker 1: currencies at this time, we don't know which regulator will 48 00:02:49,120 --> 00:02:52,680 Speaker 1: as I understand that the fans have an advisory committee. Uh, 49 00:02:52,720 --> 00:02:55,800 Speaker 1: there may be an advisory committee over at the fintech 50 00:02:55,880 --> 00:02:59,600 Speaker 1: I don't know. However, one of the things that we 51 00:02:59,680 --> 00:03:03,639 Speaker 1: have to know and understand is what is it? Is it? 52 00:03:03,800 --> 00:03:06,760 Speaker 1: What is it? What is it? Do they? Is it 53 00:03:06,840 --> 00:03:10,680 Speaker 1: a payment system? What do they do? And how do 54 00:03:10,760 --> 00:03:14,240 Speaker 1: they do it? And so you can't even decide what 55 00:03:14,480 --> 00:03:19,079 Speaker 1: regulator would oversee them without understanding what it really is. 56 00:03:19,320 --> 00:03:21,320 Speaker 1: So what's the next step? And that is truly the 57 00:03:21,400 --> 00:03:23,720 Speaker 1: number one question that I get when when when reporting 58 00:03:23,720 --> 00:03:26,040 Speaker 1: on this is people don't even know what these digital 59 00:03:26,040 --> 00:03:28,880 Speaker 1: currencies are or how they will use them. So you, 60 00:03:28,960 --> 00:03:31,639 Speaker 1: as the chairwoman of this committee, what is the next 61 00:03:31,680 --> 00:03:34,760 Speaker 1: step in this process? Well, as you know We've got 62 00:03:34,800 --> 00:03:37,520 Speaker 1: a lot of investigation to do. We're going to have 63 00:03:37,560 --> 00:03:40,800 Speaker 1: more hearings. We're going to talk with all of the 64 00:03:40,880 --> 00:03:44,760 Speaker 1: experts out there who know a lot about cryptocurrency and 65 00:03:44,800 --> 00:03:47,200 Speaker 1: can tell us about the history of bit calm and 66 00:03:47,280 --> 00:03:50,480 Speaker 1: blockchain and how it's all worked, and so we're going 67 00:03:50,560 --> 00:03:52,520 Speaker 1: to be learning an awful lot. We're going to have 68 00:03:52,640 --> 00:03:56,000 Speaker 1: more hearings. And it was requested today by one of 69 00:03:56,000 --> 00:03:58,440 Speaker 1: our members that we get Mrs Huckelberg here, and you 70 00:03:58,480 --> 00:04:00,160 Speaker 1: agree with that, you think you should come, salute he 71 00:04:00,160 --> 00:04:02,360 Speaker 1: should be here. So you're calling on Mark Zuckerberg to 72 00:04:02,400 --> 00:04:04,800 Speaker 1: come and to talk about Libra and caliber. That's one 73 00:04:04,840 --> 00:04:06,760 Speaker 1: of the things we have to do. This is a 74 00:04:06,760 --> 00:04:10,040 Speaker 1: big idea that's born out of Facebook. If he's big 75 00:04:10,160 --> 00:04:13,480 Speaker 1: enough to create an idea that is global in nature, 76 00:04:13,640 --> 00:04:15,200 Speaker 1: then he should be big enough to come and talk 77 00:04:15,240 --> 00:04:18,200 Speaker 1: to us about it. Yesterday, when David Marcus testified in 78 00:04:18,200 --> 00:04:20,280 Speaker 1: the Senate, I put this question to the chairman of 79 00:04:20,279 --> 00:04:23,880 Speaker 1: that Committee of Republicans, Chairman Crapo, I said, would you 80 00:04:24,040 --> 00:04:27,000 Speaker 1: use Libra? And he said that he doesn't even use Facebook. 81 00:04:27,080 --> 00:04:32,040 Speaker 1: So same question to you, Madam chairwoman, would you use Facebook? Libra? 82 00:04:33,080 --> 00:04:35,839 Speaker 1: All I know is the faith that I have in 83 00:04:35,920 --> 00:04:39,800 Speaker 1: the American dollar. I love the American dollar. I am 84 00:04:39,839 --> 00:04:44,600 Speaker 1: concerned about Libra competing with our dollar, and so I 85 00:04:44,680 --> 00:04:48,360 Speaker 1: am not concerned at all about whether or not I'm 86 00:04:48,360 --> 00:04:51,000 Speaker 1: going to use Libra as if today. No, I don't 87 00:04:51,000 --> 00:04:52,640 Speaker 1: know what it is, I don't know how it works, 88 00:04:52,880 --> 00:04:56,720 Speaker 1: and so I'm satisfied with the American dollar and I'm very, 89 00:04:56,880 --> 00:05:00,360 Speaker 1: very concerned about any currency that will compete with it 90 00:05:00,480 --> 00:05:03,160 Speaker 1: in the way that they talk about cryptocurrency doing. Chairwoman, 91 00:05:03,200 --> 00:05:05,039 Speaker 1: this is just one of the many important issues that 92 00:05:05,080 --> 00:05:08,200 Speaker 1: you're working on Facebook, Libra, the debt ceiling. But I 93 00:05:08,240 --> 00:05:11,279 Speaker 1: have to ask you about this rhetoric coming from the 94 00:05:11,320 --> 00:05:14,159 Speaker 1: White House in the past week that has dominated the 95 00:05:14,279 --> 00:05:18,119 Speaker 1: national discussion with particularly as it pertains to a member 96 00:05:18,160 --> 00:05:21,360 Speaker 1: of the Financial Services Committee Alexandria Costio Cortez and others 97 00:05:21,360 --> 00:05:24,440 Speaker 1: like Ellen Omar. Can you give us an update on 98 00:05:24,440 --> 00:05:29,200 Speaker 1: where the Democratic Caucus stands tonight on the state of 99 00:05:29,200 --> 00:05:33,000 Speaker 1: that rhetorical back and forth. For lack of a better work, 100 00:05:33,160 --> 00:05:37,839 Speaker 1: I'm sorry, I cannot. I cannot because I'm not surprised. 101 00:05:38,560 --> 00:05:41,520 Speaker 1: I'm not shocked. As a matter of fact, don't forget it. 102 00:05:41,560 --> 00:05:43,960 Speaker 1: Was two years ago that I asked for his impeachment. 103 00:05:44,200 --> 00:05:48,080 Speaker 1: I started talking about this president not being worthy, that 104 00:05:48,200 --> 00:05:52,839 Speaker 1: this president being dangerous, that this president had colluded with Russia, 105 00:05:53,160 --> 00:05:56,640 Speaker 1: this president had been involved with the obstruction of justice 106 00:05:56,720 --> 00:06:00,000 Speaker 1: right before our very eyes. So I had deemed him 107 00:06:00,320 --> 00:06:04,280 Speaker 1: to be not only unworthy, but someone that we had 108 00:06:04,320 --> 00:06:08,599 Speaker 1: to move quickly to do what the Constitution mandates for us. 109 00:06:08,800 --> 00:06:11,760 Speaker 1: And that is when you have someone with this kind 110 00:06:11,760 --> 00:06:15,120 Speaker 1: of description who have acted in the way that he's acted, 111 00:06:15,360 --> 00:06:20,320 Speaker 1: that the United States Congress should be involved in impeachment. 112 00:06:20,640 --> 00:06:23,560 Speaker 1: Maxine Waters, Chairwoman of the House Financial Services Committee, I 113 00:06:23,600 --> 00:06:26,680 Speaker 1: appreciate you coming on Bloomberg Television and Bloomberg Radio. This 114 00:06:27,160 --> 00:06:31,920 Speaker 1: is Sound On with Kevin serial on Bloomberg and one 115 00:06:31,920 --> 00:06:34,400 Speaker 1: oh five point seven of m h D two Baltimore. 116 00:06:37,120 --> 00:06:40,480 Speaker 1: I'm Kevin Cirelli, chief Washington correspondent for Bloomberg Television and 117 00:06:40,520 --> 00:06:44,320 Speaker 1: Bloomberg Radio. I'm inside of the House Financial Services Committee 118 00:06:44,320 --> 00:06:47,040 Speaker 1: hearing room, or just within the last hour, a hearing 119 00:06:47,120 --> 00:06:51,640 Speaker 1: concluded with Facebook as it prepares to launch its new 120 00:06:51,680 --> 00:06:56,320 Speaker 1: digital currency, Libra. I just interviewed the chairwoman of the committee, 121 00:06:56,320 --> 00:06:59,440 Speaker 1: Maxine Waters, and she gave us the lay of the 122 00:06:59,520 --> 00:07:02,440 Speaker 1: land and terms of where she hopes to go with 123 00:07:02,480 --> 00:07:07,680 Speaker 1: the regulatory questions surrounding big tech and surrounding digital currencies 124 00:07:07,720 --> 00:07:11,440 Speaker 1: in the future. But tonight she also has double duty 125 00:07:11,480 --> 00:07:15,440 Speaker 1: because just as we speak on the House floor, they 126 00:07:15,440 --> 00:07:19,880 Speaker 1: are considering a vote over whether to consider articles of 127 00:07:19,920 --> 00:07:24,520 Speaker 1: impeachment against President Trump. It comes following the latest rhetoric 128 00:07:24,560 --> 00:07:27,400 Speaker 1: coming from the White House, as he has tweeted and 129 00:07:27,640 --> 00:07:30,760 Speaker 1: given new rhetorical attacks against the squad as they are 130 00:07:30,760 --> 00:07:36,040 Speaker 1: calling themselves for congressional freshman let of course, by Congresswoman 131 00:07:36,080 --> 00:07:40,240 Speaker 1: Alexandria Accascio Cortez, a Democrat from New York. Here with 132 00:07:40,280 --> 00:07:42,840 Speaker 1: me for the hour is Alexander Bolton. He is an 133 00:07:42,840 --> 00:07:46,600 Speaker 1: all star Ace congressional reporter. He was on Capitol Hill 134 00:07:46,920 --> 00:07:49,840 Speaker 1: following all of the lawmakers around today and he seated 135 00:07:49,880 --> 00:07:54,120 Speaker 1: next to me. And I'm struck, alex by whether or 136 00:07:54,160 --> 00:07:57,960 Speaker 1: not this what they're considering with regards to impeachment. Is 137 00:07:58,000 --> 00:08:04,600 Speaker 1: this just political theater or do they actually have the votes? Um? 138 00:08:04,640 --> 00:08:07,240 Speaker 1: I think it's basically a temperature taking within the House 139 00:08:07,240 --> 00:08:10,720 Speaker 1: Democratic Caucus to see, you know, where the members are. 140 00:08:10,800 --> 00:08:13,480 Speaker 1: I mean, things have evolved so much just in the 141 00:08:13,560 --> 00:08:18,040 Speaker 1: last few days, and although Trump's tweets over the weekend 142 00:08:18,560 --> 00:08:21,320 Speaker 1: directing the so called squad to go back to their 143 00:08:22,000 --> 00:08:24,120 Speaker 1: to where they came from, the countries they came from, 144 00:08:24,160 --> 00:08:26,520 Speaker 1: even though all four of them are U S citizens, 145 00:08:26,520 --> 00:08:29,240 Speaker 1: even though three of them were born in the United States, 146 00:08:29,240 --> 00:08:32,920 Speaker 1: I think that has unified the Democratic caucus that only 147 00:08:33,320 --> 00:08:37,240 Speaker 1: last week was bitterly fighting amongst themselves on a range 148 00:08:37,280 --> 00:08:42,360 Speaker 1: of issues. And so by Trump making such a incendiary 149 00:08:42,440 --> 00:08:45,600 Speaker 1: statement over the weekend unifying the Democrats, I think he 150 00:08:45,720 --> 00:08:51,280 Speaker 1: kind of um creates more support within that caucus for impeachment. 151 00:08:51,360 --> 00:08:54,520 Speaker 1: And I think some of the uh most liberal members, 152 00:08:54,760 --> 00:08:57,560 Speaker 1: those members of the squad you mentioned, um, they now 153 00:08:57,640 --> 00:09:01,800 Speaker 1: have more support and more solid already from fellow Democrats 154 00:09:01,920 --> 00:09:06,080 Speaker 1: because they were the target of Trump's what Democrats called 155 00:09:06,160 --> 00:09:09,520 Speaker 1: racist tweets. Alex Boalton's here, he is a senior congressional 156 00:09:09,559 --> 00:09:12,920 Speaker 1: reporter for The Hill newspaper. We're talking about what has 157 00:09:12,960 --> 00:09:15,480 Speaker 1: happened and this it's really captured the attention of the 158 00:09:15,600 --> 00:09:18,560 Speaker 1: entire country and there and it's really ignited a debate 159 00:09:19,000 --> 00:09:22,480 Speaker 1: over racial rhetoric in the country. Alex, you talked about 160 00:09:22,679 --> 00:09:25,040 Speaker 1: how this is unified Democrats and it's something we've talked 161 00:09:25,080 --> 00:09:28,079 Speaker 1: about all week, which is that Democrats were not necessarily 162 00:09:28,120 --> 00:09:33,040 Speaker 1: fully united. The squad was having differences with Speaker Nancy Pelosi. 163 00:09:33,080 --> 00:09:36,520 Speaker 1: But to your point, Alex, Speaker Nancy Pelosi said on 164 00:09:36,559 --> 00:09:40,400 Speaker 1: Wednesday that this had a unifying effect. Take a listen 165 00:09:40,400 --> 00:09:42,079 Speaker 1: to what Speaker of the House Nancy Pelosi had to 166 00:09:42,080 --> 00:09:44,800 Speaker 1: say earlier today. We were offended that he spoke in 167 00:09:44,800 --> 00:09:47,320 Speaker 1: such a way about members of Congress, but we're offended 168 00:09:47,600 --> 00:09:50,040 Speaker 1: that he says that about people across the country all 169 00:09:50,040 --> 00:09:52,480 Speaker 1: the time, go back where you came from, and that 170 00:09:54,120 --> 00:10:00,000 Speaker 1: by its definition, those words are racism. So Speaker Pelosi, 171 00:10:00,040 --> 00:10:04,040 Speaker 1: he's saying that those were racist remarks coming from President Trump. 172 00:10:04,080 --> 00:10:07,679 Speaker 1: But Senator John Kennedy, a Republican from Louisiana, speaking on 173 00:10:08,320 --> 00:10:11,800 Speaker 1: Fox News on Tuesday night, he disagreed. Take a listen 174 00:10:11,840 --> 00:10:14,760 Speaker 1: to Senator Kennedy. I'm not apologizing. I do think their 175 00:10:14,760 --> 00:10:18,679 Speaker 1: whack jobs. I don't mean any disrespect, but they maybe 176 00:10:18,760 --> 00:10:20,319 Speaker 1: they think I'm a whack job, but I think their 177 00:10:20,360 --> 00:10:27,200 Speaker 1: whack jobs. So it's it's become a partisan difference. Alex Bolton, 178 00:10:27,320 --> 00:10:31,000 Speaker 1: congressional reporter for The Hill, is any of this having 179 00:10:31,040 --> 00:10:34,880 Speaker 1: any impact on substantial policy debates, something like, oh, I 180 00:10:34,880 --> 00:10:37,880 Speaker 1: don't know the deficit, the debt, the debt limit, the 181 00:10:37,920 --> 00:10:40,160 Speaker 1: debt ceiling. You know they've got to get something done 182 00:10:40,160 --> 00:10:43,840 Speaker 1: on that. Well. You know, it's funny that you have 183 00:10:44,080 --> 00:10:48,040 Speaker 1: the these very kind of personal tax going back and forth, 184 00:10:48,120 --> 00:10:51,120 Speaker 1: yet business is still proceeding a pace dark to a 185 00:10:51,240 --> 00:10:55,160 Speaker 1: senior Democratic staffer yesterday who said, it's got this, it's 186 00:10:55,200 --> 00:10:59,600 Speaker 1: so crazy here. Uh. At the same time that you know, 187 00:11:00,000 --> 00:11:03,000 Speaker 1: Oci is calling Trump racist, and then her words are 188 00:11:03,040 --> 00:11:06,120 Speaker 1: being taken down on the on the House floor, something 189 00:11:06,160 --> 00:11:08,640 Speaker 1: we haven't seen in years when it happened to Tip O'Neil. 190 00:11:09,040 --> 00:11:11,240 Speaker 1: Her words are being taken down She's getting reprimand on 191 00:11:11,280 --> 00:11:15,040 Speaker 1: the House floor for uh, you know, speaking personally against 192 00:11:15,040 --> 00:11:16,720 Speaker 1: the president. I want to I want to touch on that, 193 00:11:16,760 --> 00:11:18,240 Speaker 1: and I'm not to interrupt you, but to just give 194 00:11:18,280 --> 00:11:20,640 Speaker 1: more context because last night was fascinating. I mean, it 195 00:11:20,679 --> 00:11:23,000 Speaker 1: was happening in real time and it was difficult to 196 00:11:23,080 --> 00:11:26,040 Speaker 1: keep track of. But there was a parliamentary rule that 197 00:11:26,160 --> 00:11:30,040 Speaker 1: says you can't call the president racist and republican. I 198 00:11:30,080 --> 00:11:34,280 Speaker 1: believe it was Collins. Congressman Collins said, your your in 199 00:11:34,360 --> 00:11:39,920 Speaker 1: violation of parliamentary rules of order because you called the 200 00:11:40,240 --> 00:11:42,920 Speaker 1: president racist. So there was this whole like procedural debate 201 00:11:42,960 --> 00:11:45,160 Speaker 1: that happened on the House floor and you mentioned tip O'Neil. 202 00:11:45,160 --> 00:11:47,440 Speaker 1: I didn't know this. So tip O'Neil, do you do 203 00:11:47,440 --> 00:11:50,480 Speaker 1: you know offhand what that violation was. I don't know. 204 00:11:50,600 --> 00:11:53,720 Speaker 1: I just I just saw some traffic on it yesterday 205 00:11:53,720 --> 00:11:57,600 Speaker 1: about you know, in his words were taken down for 206 00:11:57,600 --> 00:12:00,760 Speaker 1: for saying something, you know, directly against someone else. I mean, 207 00:12:00,760 --> 00:12:03,360 Speaker 1: there's a general rule, you know in Congress that you 208 00:12:03,400 --> 00:12:05,600 Speaker 1: address your comments to the chair and you don't attack 209 00:12:05,679 --> 00:12:09,440 Speaker 1: someone's motives or their character, and so that's out the window. 210 00:12:09,679 --> 00:12:11,880 Speaker 1: But but to your point, business is still being done 211 00:12:11,880 --> 00:12:15,240 Speaker 1: as usual when you've got Speaker Pelosi talking to Treasury 212 00:12:15,240 --> 00:12:18,760 Speaker 1: Secretary Stephen Venusian the same day that all of this 213 00:12:18,960 --> 00:12:23,000 Speaker 1: is going down negotiating. Well, I think it's interesting, you know, 214 00:12:23,040 --> 00:12:24,960 Speaker 1: the rule hasn't gone out the window, and so for 215 00:12:25,040 --> 00:12:27,280 Speaker 1: the place to work, you do have to keep things civil, 216 00:12:27,280 --> 00:12:32,000 Speaker 1: and you can't attack people's characters and you can't attack 217 00:12:32,080 --> 00:12:34,360 Speaker 1: you know, who they are, to their faces directly. So 218 00:12:34,400 --> 00:12:36,720 Speaker 1: I think that's why that rule is in place, and 219 00:12:36,760 --> 00:12:38,320 Speaker 1: I think, you know, this is just a reminder that 220 00:12:38,679 --> 00:12:40,520 Speaker 1: when you call someone a racist, it's a it's a 221 00:12:40,559 --> 00:12:44,880 Speaker 1: pretty serious charge. But regardless, be that as it may, 222 00:12:45,040 --> 00:12:47,720 Speaker 1: despite the chaos and this drama on the House floor, 223 00:12:47,800 --> 00:12:52,200 Speaker 1: you still have Pelosi negotiating with Trump's emissary at Treasury Secretary, 224 00:12:52,200 --> 00:12:55,319 Speaker 1: Steven Nuchin on a caps deal, and they're very close. 225 00:12:55,360 --> 00:12:57,600 Speaker 1: And so, as I was saying, talked to a senior 226 00:12:57,679 --> 00:13:00,240 Speaker 1: Democratic leadership aide yesterday, you said, wow, what a crazy week. 227 00:13:00,679 --> 00:13:03,679 Speaker 1: Despite all this, you know, back and forth German drawing 228 00:13:03,720 --> 00:13:06,760 Speaker 1: over Pelosi calling Tromple racist, She's still on the cusp 229 00:13:06,800 --> 00:13:09,800 Speaker 1: of a deal, a budget deal with the president. That 230 00:13:09,840 --> 00:13:12,920 Speaker 1: to me is that that's fascinating because it the debate 231 00:13:13,000 --> 00:13:17,360 Speaker 1: over rhetoric, the racial rhetoric is is just so intense. 232 00:13:17,440 --> 00:13:19,000 Speaker 1: I mean, and you know this from being up here, 233 00:13:19,080 --> 00:13:21,840 Speaker 1: it is it is palpable in the halls of Congress, 234 00:13:21,920 --> 00:13:24,520 Speaker 1: just that tension. And yet to your point, business is 235 00:13:24,559 --> 00:13:28,680 Speaker 1: still being done as usual and tweets are still coming 236 00:13:28,840 --> 00:13:31,920 Speaker 1: as usual. I do want to play what Senator Kamala Harris, 237 00:13:31,920 --> 00:13:34,760 Speaker 1: a Democrat from California, what she had to say about 238 00:13:34,760 --> 00:13:37,760 Speaker 1: the President's rhetoric. Take a listen to the Democratic presidential 239 00:13:37,760 --> 00:13:43,200 Speaker 1: candidate Kamala Harris here she is he's a coward. He's 240 00:13:43,240 --> 00:13:50,240 Speaker 1: a coward, and he's a bully, and he has an embarrassment. 241 00:13:52,880 --> 00:13:57,000 Speaker 1: That was Democratic presidential candidate Senator Kamala Harris, a Democrat 242 00:13:57,080 --> 00:14:01,439 Speaker 1: from California, speaking earlier, uh at the Women of Color 243 00:14:01,559 --> 00:14:06,600 Speaker 1: round Table in Davenport, Iowa. You're listening to Sound On 244 00:14:06,760 --> 00:14:11,000 Speaker 1: with Kevin Surreally on Bloomberg one and one oh five 245 00:14:11,040 --> 00:14:16,480 Speaker 1: point seven f M h D two, Baltimore. I'm Kevin Curreli, 246 00:14:16,600 --> 00:14:19,720 Speaker 1: chief Washington correspondent for Bloomberg Television and Bloomberg Radio, and 247 00:14:19,760 --> 00:14:22,080 Speaker 1: tonight I'm coming at you live from inside of the 248 00:14:22,120 --> 00:14:25,720 Speaker 1: House Financial Services Committee hearing room. Were Earlier this afternoon, 249 00:14:25,800 --> 00:14:31,240 Speaker 1: David Marcus, Facebook's chief digital currency guru, testified before the 250 00:14:31,280 --> 00:14:35,440 Speaker 1: House Financial Services Committee, let of course by Chairwoman Maxine Water. 251 00:14:35,600 --> 00:14:40,640 Speaker 1: She was very critical, fairy, critical and skeptical, skeptical of Facebook, 252 00:14:40,720 --> 00:14:43,880 Speaker 1: Libra and digital currencies as a whole. Raising a host 253 00:14:43,920 --> 00:14:48,440 Speaker 1: of different concerns are pertaining to privacy regulations, all of that, 254 00:14:48,600 --> 00:14:51,160 Speaker 1: and that's why I'm so thrilled to have here sitting 255 00:14:51,240 --> 00:14:53,320 Speaker 1: next to me. He was at the hearing all day. 256 00:14:53,360 --> 00:14:55,320 Speaker 1: He was at the Facebook hearing yesterday in the Senate. 257 00:14:55,600 --> 00:14:59,760 Speaker 1: William Cunningham. He's an economist at Creative Investment Research. He's 258 00:14:59,800 --> 00:15:03,760 Speaker 1: a blockchain guru, knows all of blockchain. So I'll start there. 259 00:15:04,320 --> 00:15:06,920 Speaker 1: First of all, how did Facebook do? From how would 260 00:15:06,960 --> 00:15:10,000 Speaker 1: your grade Facebook's performance in the Senate and the House today? 261 00:15:10,200 --> 00:15:13,880 Speaker 1: I give them a D plus C minus brutal. Yeah, well, 262 00:15:13,920 --> 00:15:16,040 Speaker 1: they should have been better prepared. They should have known 263 00:15:16,120 --> 00:15:18,360 Speaker 1: what was going to come at them and been able 264 00:15:18,400 --> 00:15:22,200 Speaker 1: to more effectively explain to the members both in the 265 00:15:22,200 --> 00:15:24,680 Speaker 1: Senate side and the House side, what they were doing. 266 00:15:24,960 --> 00:15:27,800 Speaker 1: Why they're not competing with the U. S. Dollar, but 267 00:15:28,000 --> 00:15:31,000 Speaker 1: rather they are seeking to maximize profits for their company. 268 00:15:31,040 --> 00:15:32,200 Speaker 1: All right, I want to I want to take it 269 00:15:32,200 --> 00:15:34,280 Speaker 1: there because the one of the final points that Chairwoman 270 00:15:34,360 --> 00:15:37,880 Speaker 1: Waters raised in my interview with her, but also during 271 00:15:37,920 --> 00:15:41,440 Speaker 1: the hearing, was the security of the U. S. Dollar. 272 00:15:41,960 --> 00:15:45,640 Speaker 1: You say that that Facebook Libra, which is their digital currency, 273 00:15:45,680 --> 00:15:48,640 Speaker 1: and that other digital currencies like it, are not going 274 00:15:48,680 --> 00:15:51,880 Speaker 1: to put at risk the US dollar. Why Well, basically, 275 00:15:51,880 --> 00:15:55,680 Speaker 1: because the technology is so compelling that this technology to 276 00:15:55,720 --> 00:15:58,960 Speaker 1: make payments will be used. It will either be used 277 00:15:59,000 --> 00:16:02,800 Speaker 1: by company and institutions that are friendly to US interests, 278 00:16:02,800 --> 00:16:05,920 Speaker 1: and I would include Facebook in that category, or it 279 00:16:06,000 --> 00:16:09,560 Speaker 1: will be used by institutions and entities that are unfriendly 280 00:16:09,760 --> 00:16:12,600 Speaker 1: to US interests. So I've got to put them in 281 00:16:12,600 --> 00:16:16,040 Speaker 1: the category of not being a threat at this moment, 282 00:16:16,160 --> 00:16:19,400 Speaker 1: at this minute with respect to the dominance of the 283 00:16:19,520 --> 00:16:22,160 Speaker 1: US dollar. All right, I'm gonna ask you not a 284 00:16:22,200 --> 00:16:24,320 Speaker 1: trick question, but I'm gonna ask you a little bit 285 00:16:24,360 --> 00:16:27,160 Speaker 1: of a you know, a different question. You said that 286 00:16:27,200 --> 00:16:31,280 Speaker 1: you graded Facebook D plus C minus and on on 287 00:16:31,320 --> 00:16:33,200 Speaker 1: how they did? How do you think lawmakers did? And 288 00:16:33,200 --> 00:16:36,440 Speaker 1: I'm not talking democrats of Republicans, I'm talking collectively, how 289 00:16:36,440 --> 00:16:39,200 Speaker 1: did lawmakers? Did lawmakers on both sides of the aisle 290 00:16:39,320 --> 00:16:43,240 Speaker 1: do their job during these two days of hearings? Do 291 00:16:43,280 --> 00:16:45,800 Speaker 1: you think they did their job? Oh that's a tough question. No, 292 00:16:45,960 --> 00:16:47,920 Speaker 1: they didn't do their job. I would give them a 293 00:16:48,040 --> 00:16:51,360 Speaker 1: d uh, mainly because of their lack of understanding as 294 00:16:51,400 --> 00:16:55,200 Speaker 1: to what currency cryptocurrency is, the lack of understanding of 295 00:16:55,240 --> 00:16:58,200 Speaker 1: the technology, how compelling it is, and how it is 296 00:16:58,240 --> 00:17:00,880 Speaker 1: going to be used. If you think about the millennial 297 00:17:00,920 --> 00:17:03,680 Speaker 1: generation twenty thirty years from now, they're gonna be using 298 00:17:03,720 --> 00:17:06,440 Speaker 1: something like a digital currency. It may not be this one, 299 00:17:06,640 --> 00:17:09,679 Speaker 1: but but not to understand that and not to be 300 00:17:09,760 --> 00:17:12,960 Speaker 1: able to factor that into your questions and your approach 301 00:17:13,280 --> 00:17:17,800 Speaker 1: to this issue is it's damning. It really is. They 302 00:17:17,840 --> 00:17:21,399 Speaker 1: should have been better prepared from the standpoint of understanding. 303 00:17:21,520 --> 00:17:23,640 Speaker 1: But at this point, this is what I just find 304 00:17:23,640 --> 00:17:28,600 Speaker 1: as a reporter, really incredulous. It's been like a year. 305 00:17:28,640 --> 00:17:30,600 Speaker 1: I mean, it's I don't I don't have off the 306 00:17:30,600 --> 00:17:32,560 Speaker 1: top of my head. The first date that Mark Zuckerberg 307 00:17:32,600 --> 00:17:35,840 Speaker 1: testified following it was but it was after the data 308 00:17:35,880 --> 00:17:39,800 Speaker 1: privisation concerns following the election cycle. But when he came 309 00:17:39,840 --> 00:17:42,960 Speaker 1: to Capitol Hill, I mean, really that was the critique 310 00:17:43,000 --> 00:17:44,800 Speaker 1: of the media as well of ball makers, which was 311 00:17:44,840 --> 00:17:47,960 Speaker 1: they on either side, is that they didn't really seem 312 00:17:48,000 --> 00:17:51,239 Speaker 1: fully prepared or briefed or whatever on these hearings. And 313 00:17:51,280 --> 00:17:53,400 Speaker 1: now it's like, is it is this seriously happening all 314 00:17:53,400 --> 00:17:55,720 Speaker 1: over again? You know, I think there's a handful of 315 00:17:55,720 --> 00:17:58,680 Speaker 1: them on both sides who fully understand, but it is 316 00:17:58,760 --> 00:18:02,320 Speaker 1: quite alarming that they're not, that they're not really when 317 00:18:02,320 --> 00:18:04,879 Speaker 1: they're mispronouncing it. I mean, you know, I don't know, 318 00:18:05,040 --> 00:18:09,119 Speaker 1: so from your perspective. What's next here in terms of 319 00:18:09,119 --> 00:18:11,640 Speaker 1: how this goes, because Chairwoman Waters said she wants Mark 320 00:18:11,720 --> 00:18:15,600 Speaker 1: Zuckerberg to testify directly to this committee. I think they're 321 00:18:15,600 --> 00:18:17,200 Speaker 1: going to try to get in the way. I think 322 00:18:17,240 --> 00:18:21,280 Speaker 1: they will be unsuccessful. Once again, the technology is so compelling. 323 00:18:21,320 --> 00:18:23,320 Speaker 1: You can do so much more with it than you 324 00:18:23,359 --> 00:18:25,840 Speaker 1: can do with paper money. If you've got a phone, 325 00:18:25,880 --> 00:18:28,240 Speaker 1: if you've got electricity, that it is going to come 326 00:18:28,240 --> 00:18:30,480 Speaker 1: to dominate. So I think they will try to step 327 00:18:30,520 --> 00:18:32,560 Speaker 1: in the way. I think they're gonna be unsuccessful. I 328 00:18:32,600 --> 00:18:36,200 Speaker 1: think what you're gonna see our guerrilla efforts to utilize 329 00:18:36,359 --> 00:18:39,480 Speaker 1: this type of technology in a way that's not necessarily 330 00:18:39,840 --> 00:18:44,120 Speaker 1: as friendly to US interests as Facebook might be. So 331 00:18:44,440 --> 00:18:48,200 Speaker 1: it's going to continue. There's if they can't get approval 332 00:18:48,320 --> 00:18:51,439 Speaker 1: in the US, they'll get approval in Switzerland. If they 333 00:18:51,440 --> 00:18:54,080 Speaker 1: can't get approval in Switzerland, they'll get approval in Thailand. 334 00:18:54,080 --> 00:18:55,919 Speaker 1: If they can't go to Thailand, they'll go to Kenya. 335 00:18:56,160 --> 00:18:59,760 Speaker 1: The technology is simply that great that it allows you 336 00:18:59,800 --> 00:19:03,320 Speaker 1: to move around. And remember we're talking about huge global 337 00:19:03,400 --> 00:19:09,760 Speaker 1: companies with no necessary loyalty to any regional government. But 338 00:19:09,840 --> 00:19:12,840 Speaker 1: they should should I agree with. Wait, so do you 339 00:19:12,840 --> 00:19:15,560 Speaker 1: think Facebook from your you as you knowing this? I mean, 340 00:19:15,560 --> 00:19:18,560 Speaker 1: do you think Facebook today and yesterday in the Senate, 341 00:19:19,640 --> 00:19:24,520 Speaker 1: uh express that gratitude for being an American company? I 342 00:19:24,560 --> 00:19:27,359 Speaker 1: think they said they made the set, they made noises 343 00:19:27,800 --> 00:19:30,639 Speaker 1: that would lead you to believe that they are grateful. 344 00:19:30,880 --> 00:19:34,400 Speaker 1: They did not make those noises mean anything. And they 345 00:19:34,440 --> 00:19:36,720 Speaker 1: also did not This is why I gave them a D. 346 00:19:36,960 --> 00:19:40,040 Speaker 1: They also did not have a strategy to reinforce to 347 00:19:40,200 --> 00:19:43,920 Speaker 1: make that that you know, that gratitude real, you know, 348 00:19:44,400 --> 00:19:46,280 Speaker 1: And here's what they could have done. They could have said, 349 00:19:46,320 --> 00:19:49,000 Speaker 1: you know what, you're absolutely right, We're not going to 350 00:19:49,040 --> 00:19:53,000 Speaker 1: register this currency in Switzerland. We're gonna do the currency here. 351 00:19:53,600 --> 00:19:56,240 Speaker 1: You know, it's funny you say that lawmakers get a D, 352 00:19:56,960 --> 00:20:00,240 Speaker 1: Facebook gets a D plus. You said, do you us 353 00:20:00,640 --> 00:20:03,280 Speaker 1: it's like watching a bad football game. I mean, you 354 00:20:03,359 --> 00:20:07,480 Speaker 1: expect it's Congress. It's Congress, you know, it's the the 355 00:20:07,800 --> 00:20:13,040 Speaker 1: lawmakers representing the people, and it's Facebook, a titan Us company, 356 00:20:13,119 --> 00:20:15,080 Speaker 1: and you expect, like you're gonna get like a super 357 00:20:15,119 --> 00:20:18,440 Speaker 1: Bowl of Philadelphia Eagles and New England Patriots type of 358 00:20:18,440 --> 00:20:20,560 Speaker 1: super Bowl. What we got today wasn't even like the 359 00:20:20,560 --> 00:20:23,520 Speaker 1: freshman high school team. It was like it was abominable. 360 00:20:23,680 --> 00:20:26,000 Speaker 1: I mean, but listen. I talked to Congressman french Hill. 361 00:20:26,040 --> 00:20:29,240 Speaker 1: He's a Republican from Arkansas. He is in the banking industry, 362 00:20:29,240 --> 00:20:30,960 Speaker 1: so he's like, I mean, I don't think he'll be 363 00:20:30,960 --> 00:20:33,359 Speaker 1: offended when I say this. He's nerdy when it comes 364 00:20:33,359 --> 00:20:34,920 Speaker 1: to this stuff. He knows a thing or two about 365 00:20:34,920 --> 00:20:36,920 Speaker 1: the stuff. Whether you agree with them or disagree, I'll 366 00:20:37,000 --> 00:20:40,480 Speaker 1: let you decide. But I interviewed about his perspective on 367 00:20:40,520 --> 00:20:42,040 Speaker 1: the hearing, and take a listen to what he told 368 00:20:42,040 --> 00:20:45,720 Speaker 1: me earlier today on Bloomberg Television. Well, it's early. I 369 00:20:45,720 --> 00:20:49,160 Speaker 1: think the Mr Marcus's main point was, this is an idea, 370 00:20:49,880 --> 00:20:52,480 Speaker 1: we're still thinking about it. We'll take no step to 371 00:20:52,520 --> 00:20:55,040 Speaker 1: bring Libra to the public until we've answered all the 372 00:20:55,160 --> 00:20:59,160 Speaker 1: questions in all the jurisdictions where we're gonna operate. Right now, 373 00:20:59,200 --> 00:21:04,000 Speaker 1: digital currency, they're largely seen as an investment tool. How 374 00:21:04,080 --> 00:21:08,080 Speaker 1: would it impact America, the average American consumer in the 375 00:21:08,119 --> 00:21:10,520 Speaker 1: short term and the long term once it does come 376 00:21:10,560 --> 00:21:14,360 Speaker 1: to fruition. Well, I think Libra, for example, biggest impact 377 00:21:14,400 --> 00:21:18,160 Speaker 1: globally would be P two P peer to p transfers 378 00:21:18,160 --> 00:21:22,359 Speaker 1: something you see Western Union doing remittances between countries. I 379 00:21:22,480 --> 00:21:26,120 Speaker 1: see that as a principal issue. But for investors and 380 00:21:26,200 --> 00:21:29,359 Speaker 1: for business people B two B or C two B, 381 00:21:30,040 --> 00:21:32,120 Speaker 1: I see it as a way to do an international 382 00:21:32,160 --> 00:21:36,680 Speaker 1: transaction at lower cost for making a large purchase, or 383 00:21:36,720 --> 00:21:39,560 Speaker 1: whether you're in the commodities markets or the investment markets. 384 00:21:39,920 --> 00:21:42,919 Speaker 1: The key for us in Congress is will this money 385 00:21:42,920 --> 00:21:46,400 Speaker 1: transfer business be fully licensed and will it be fully 386 00:21:46,480 --> 00:21:49,440 Speaker 1: appropriate from a k y C Know your customer rules 387 00:21:49,520 --> 00:21:52,800 Speaker 1: under the money laundering laws. So yesterday when David Markets 388 00:21:52,800 --> 00:21:56,080 Speaker 1: testified in the Senate, Republicans, uh, just like here in 389 00:21:56,080 --> 00:21:58,680 Speaker 1: the House Financial Services Committee, we're saying, this is the reality, 390 00:21:58,720 --> 00:22:02,760 Speaker 1: this technology isn't come It's here Democrats are arguing that 391 00:22:02,800 --> 00:22:05,639 Speaker 1: this shouldn't even really exists, or that there needs to 392 00:22:05,640 --> 00:22:09,920 Speaker 1: be much more stringent regulations. Is there any agreement or 393 00:22:10,000 --> 00:22:14,439 Speaker 1: consensus in the regulatory foundation or framework between Republicans and 394 00:22:14,480 --> 00:22:16,920 Speaker 1: Democrats or are are there just no one's on the 395 00:22:16,960 --> 00:22:20,040 Speaker 1: same page. Well, I don't think American legislators want to 396 00:22:20,080 --> 00:22:24,160 Speaker 1: stifle innovation, but I think the issue that Facebook being 397 00:22:24,200 --> 00:22:29,159 Speaker 1: the face of LIBRA in America has tainted it so 398 00:22:29,200 --> 00:22:31,920 Speaker 1: I think the Facebook angle is what has caused people 399 00:22:31,960 --> 00:22:34,880 Speaker 1: to ask a bunch of extra questions. If this word 400 00:22:34,960 --> 00:22:38,119 Speaker 1: JP Morgan proposing this or general Electric, it might have 401 00:22:38,160 --> 00:22:42,040 Speaker 1: gotten a different, more reticent viewpoint. Because of Facebook's issues 402 00:22:42,119 --> 00:22:45,400 Speaker 1: recently on Capitol Hill and with the American public, it's 403 00:22:45,400 --> 00:22:48,480 Speaker 1: caused I think, more scrutinous. Do you trust Facebook to 404 00:22:48,560 --> 00:22:51,400 Speaker 1: be the to to to really be the driver of 405 00:22:51,440 --> 00:22:55,280 Speaker 1: this type of technology as as it moves forward? Well, 406 00:22:55,320 --> 00:22:59,080 Speaker 1: Facebook's an innovative company. Facebook's job and all of its 407 00:22:59,080 --> 00:23:02,720 Speaker 1: partners that may have to a hundred multinational partners in Libra, 408 00:23:03,480 --> 00:23:07,560 Speaker 1: is to convince jurisdictions in Europe in the US principally 409 00:23:08,000 --> 00:23:10,040 Speaker 1: that they have a safe and sound product that will 410 00:23:10,080 --> 00:23:13,280 Speaker 1: benefit consumers and be done in context with the antimunder 411 00:23:13,359 --> 00:23:17,800 Speaker 1: laundering laws and our safety about money transfer generally. I've 412 00:23:17,840 --> 00:23:19,879 Speaker 1: got two more questions for you. The first is what 413 00:23:20,040 --> 00:23:24,600 Speaker 1: is the timetable? Is there a timetable uh about any 414 00:23:24,640 --> 00:23:29,119 Speaker 1: type of regulatory action to be taken on this type 415 00:23:29,119 --> 00:23:32,920 Speaker 1: of technology? Well, I think Secretary Manuchin and the FED 416 00:23:33,000 --> 00:23:36,080 Speaker 1: Chairman J Pal both have said they want to see 417 00:23:36,119 --> 00:23:39,080 Speaker 1: the details, and I believe Mr Marcus is outlining to 418 00:23:39,119 --> 00:23:41,760 Speaker 1: both the House and Senate. You'll have those details over 419 00:23:41,800 --> 00:23:44,600 Speaker 1: the next few months leading up to a launch in 420 00:23:45,480 --> 00:23:49,000 Speaker 1: or shortly after, but only if they get everything right 421 00:23:49,080 --> 00:23:51,199 Speaker 1: all right. And then the last question is we we 422 00:23:51,280 --> 00:23:55,600 Speaker 1: talked about precisely what digital currencies are, but I want 423 00:23:55,640 --> 00:23:59,600 Speaker 1: to even just dig even deeper. For your constituent and 424 00:23:59,680 --> 00:24:04,960 Speaker 1: your district in Arkansas, how will they use Libra, for example, 425 00:24:05,480 --> 00:24:09,000 Speaker 1: to make a purchase in the future. I think it 426 00:24:09,000 --> 00:24:13,359 Speaker 1: could lower transaction costs in the commodity markets, for agricultural commodities. 427 00:24:13,680 --> 00:24:16,760 Speaker 1: I think it could lower the cost of families sending 428 00:24:16,880 --> 00:24:20,600 Speaker 1: Monday home to a third country. Uh. The third or 429 00:24:20,640 --> 00:24:25,040 Speaker 1: fourth largest part of Mexican g d P is American remittances. 430 00:24:25,960 --> 00:24:29,560 Speaker 1: The hunger of the Honduran g d P is remittance 431 00:24:29,640 --> 00:24:33,399 Speaker 1: revenue from the United States. So for family connections in 432 00:24:33,440 --> 00:24:35,399 Speaker 1: the third world that have immigrant families here in the 433 00:24:35,480 --> 00:24:37,240 Speaker 1: United States, it would be a big issue. I think 434 00:24:37,280 --> 00:24:42,560 Speaker 1: that lower costs. That was Congressman uh french Hill, Republican 435 00:24:42,600 --> 00:24:45,840 Speaker 1: from Arkansas, speaking earlier today to me on Bloomberg Television 436 00:24:45,840 --> 00:24:49,800 Speaker 1: of Bloomberg Radio. This is sound on with Kevin's really 437 00:24:50,200 --> 00:24:53,879 Speaker 1: on Bloomberg and one oh five point seven f m 438 00:24:53,960 --> 00:24:59,960 Speaker 1: h D two, Baltimore. I'm Kevin CURRELLI Chief Washington, corresponding 439 00:25:00,000 --> 00:25:04,360 Speaker 1: it for Bloomberg Television and Bloomberg Radio. I'm broadcasting live 440 00:25:04,400 --> 00:25:07,120 Speaker 1: tonight from inside of the House Financial Services Committee hearing 441 00:25:07,160 --> 00:25:10,440 Speaker 1: room inside of the Rayburn Building on Capitol Hill. Why 442 00:25:10,520 --> 00:25:14,720 Speaker 1: because Facebook, Facebook had Day two today of hearings regarding 443 00:25:15,080 --> 00:25:18,560 Speaker 1: digital currency. It's digital currency that it wants to launch, 444 00:25:19,000 --> 00:25:22,960 Speaker 1: Libra Facebook Libra, which will be part of Calibra, which 445 00:25:23,000 --> 00:25:25,840 Speaker 1: is the wallet of Facebook. It hasn't launched, and they 446 00:25:25,840 --> 00:25:28,120 Speaker 1: say they will not launch it, according to David Marcus, 447 00:25:28,160 --> 00:25:31,800 Speaker 1: the chief digital currency guru at Facebook. They say they're 448 00:25:31,800 --> 00:25:33,399 Speaker 1: not going to launch it until they get all the 449 00:25:33,480 --> 00:25:35,680 Speaker 1: questions and there's a lot of them, folks, all the 450 00:25:35,760 --> 00:25:39,400 Speaker 1: questions answered by the regulators, by the lawmakers. Anyway, we're 451 00:25:39,400 --> 00:25:42,640 Speaker 1: talking about that huge story for big tech, the fangstocks 452 00:25:42,680 --> 00:25:46,560 Speaker 1: and whatnot. We're also following the rhetorical debate that is 453 00:25:46,600 --> 00:25:50,960 Speaker 1: continuing to intensify, swirling around the halls of Congress today 454 00:25:51,040 --> 00:25:54,000 Speaker 1: and continuing at the White House. I'm joined by two 455 00:25:54,080 --> 00:25:58,040 Speaker 1: political insider all stars. Alexander Bolton. He has a senior 456 00:25:58,320 --> 00:26:01,960 Speaker 1: Congressional reporter for The Hill NewSpace Paper, and also Bill Cunningham. 457 00:26:02,000 --> 00:26:06,919 Speaker 1: He is an investor at Creative Enterprise Creative Investment Research. 458 00:26:06,960 --> 00:26:10,359 Speaker 1: I apologize, Bill, I apologize for that. And just in 459 00:26:10,440 --> 00:26:13,439 Speaker 1: the break, we got uh some breaking news that the 460 00:26:13,520 --> 00:26:18,560 Speaker 1: House blocked a Democratic member's bid to impeach President Donald 461 00:26:18,600 --> 00:26:23,919 Speaker 1: Trump amid resistance from Speaker Nancy Pelosi and other Democratic leaders. 462 00:26:23,960 --> 00:26:27,840 Speaker 1: It was a three hundred and thirty two to vote 463 00:26:28,600 --> 00:26:31,440 Speaker 1: just within the last out half hour. Really, the House 464 00:26:31,440 --> 00:26:35,800 Speaker 1: refusing to advance Texas Democrat Al Green's impeachment resolution, citing 465 00:26:35,840 --> 00:26:39,240 Speaker 1: the president's tweets against four freshman House Democrats, all women 466 00:26:39,280 --> 00:26:43,200 Speaker 1: of color, and other comments denounced as racists. I'm reading 467 00:26:43,200 --> 00:26:45,760 Speaker 1: from the Bloomberg terminal by my colleagues Billy House and 468 00:26:45,920 --> 00:26:49,640 Speaker 1: Eric Wasson, So Alex Bolton, Congressional reporter for The Hill. 469 00:26:50,760 --> 00:26:53,960 Speaker 1: Speaker Pelosi, despite the events of the past five days, 470 00:26:53,960 --> 00:26:56,760 Speaker 1: still doesn't want to is still saying no to impeachment. 471 00:26:56,800 --> 00:27:00,560 Speaker 1: Why well, she has said earlier than us here that 472 00:27:01,040 --> 00:27:04,600 Speaker 1: impeachment isn't worth it, it's too divisive to the country. 473 00:27:05,040 --> 00:27:07,919 Speaker 1: But also she says that, and she notes the or 474 00:27:07,920 --> 00:27:10,560 Speaker 1: recognizes the polical reality that for impeachment to work, it 475 00:27:10,600 --> 00:27:13,399 Speaker 1: has to be bipartisan. I mean, maybe you can squeak 476 00:27:13,400 --> 00:27:15,480 Speaker 1: it through the House, which is controlled by the Democrats 477 00:27:15,640 --> 00:27:18,160 Speaker 1: with simple majority rule, but in the Senate you need 478 00:27:18,200 --> 00:27:21,160 Speaker 1: two thirds of the Senate to convict. And already center 479 00:27:21,160 --> 00:27:23,600 Speaker 1: Republicans have made it clear that they will quickly quash 480 00:27:23,720 --> 00:27:26,520 Speaker 1: any articles of impeachment. There won't be much of a trial. 481 00:27:26,640 --> 00:27:29,320 Speaker 1: It will last maybe only a couple of hours. I mean, 482 00:27:29,359 --> 00:27:32,800 Speaker 1: they have the control of the floor. So this isn't 483 00:27:32,880 --> 00:27:36,080 Speaker 1: going anywhere. And so she realizes that it's going to 484 00:27:36,080 --> 00:27:38,919 Speaker 1: divide the country and it's not going to result in anything. 485 00:27:38,960 --> 00:27:42,360 Speaker 1: And so what she said in her press conference reporters, 486 00:27:42,520 --> 00:27:46,360 Speaker 1: she said, there are six House committees right now conducting investigations, 487 00:27:46,359 --> 00:27:49,199 Speaker 1: and that's what the serious effort is. She called and 488 00:27:49,240 --> 00:27:52,000 Speaker 1: she said, with all due respect to al Green, the 489 00:27:52,040 --> 00:27:55,520 Speaker 1: sponsor of the article's impeachment, what the serious effort is 490 00:27:55,520 --> 00:27:59,200 Speaker 1: is the work by the committees to look at obstruction 491 00:27:59,200 --> 00:28:03,720 Speaker 1: of justice, abuse of power, and other potential crimes that 492 00:28:03,840 --> 00:28:06,560 Speaker 1: could then serve as the basis particles impeachment. Bottom line, 493 00:28:06,680 --> 00:28:09,120 Speaker 1: Pelosi doesn't think the Democrats have enough to go that 494 00:28:09,200 --> 00:28:12,960 Speaker 1: route of impeachment. Can she continue Alex Balton, senior congressional 495 00:28:13,000 --> 00:28:16,639 Speaker 1: reporter for The Hill Newspaper. Can Speaker Pelosi continue to 496 00:28:16,720 --> 00:28:20,840 Speaker 1: get away from this debate that exists within the Democratic 497 00:28:20,880 --> 00:28:22,760 Speaker 1: Party because just last week, as you know, I mean 498 00:28:22,760 --> 00:28:25,240 Speaker 1: we talked to the same people. Last week, AOC was 499 00:28:25,280 --> 00:28:28,919 Speaker 1: criticizing Speaker Pelosi. And that's the that's the rub around 500 00:28:28,920 --> 00:28:32,560 Speaker 1: town is that the squad, the squad feels that Speaker 501 00:28:32,560 --> 00:28:36,000 Speaker 1: Pelosi isn't being as aggressive as they would like to 502 00:28:36,040 --> 00:28:38,719 Speaker 1: see on the issue of impeachment. So can she continue this, 503 00:28:39,120 --> 00:28:42,520 Speaker 1: especially now that the squad has been elevated and their 504 00:28:42,640 --> 00:28:46,560 Speaker 1: their megaphone has been amplified. Well, you know, these are 505 00:28:46,600 --> 00:28:48,440 Speaker 1: a lot of freshman members. They don't have a lot 506 00:28:48,440 --> 00:28:52,480 Speaker 1: of experience, and you know, forgive the analogy, but Pelosi 507 00:28:52,560 --> 00:28:55,000 Speaker 1: is kind of like the mom and the kids are 508 00:28:55,040 --> 00:28:58,280 Speaker 1: crying out for They want to have popsicles for dinner, 509 00:28:58,760 --> 00:29:01,240 Speaker 1: they want to eat you know, vocolet for lunch. I mean, 510 00:29:01,360 --> 00:29:03,440 Speaker 1: they want to go to bed at whatever time they 511 00:29:03,440 --> 00:29:05,720 Speaker 1: want to. I mean, they want what feels good now. 512 00:29:06,240 --> 00:29:09,440 Speaker 1: I think Pelosi recognizes that what feels good now isn't 513 00:29:09,440 --> 00:29:11,520 Speaker 1: necessarily what's good for the party on election day, and 514 00:29:11,520 --> 00:29:12,960 Speaker 1: so she has a little bit of a longer view, 515 00:29:13,320 --> 00:29:16,240 Speaker 1: and she realizes that if you go down the root 516 00:29:16,280 --> 00:29:19,360 Speaker 1: of impeachment now, there's not a whole heck of a lot. 517 00:29:19,400 --> 00:29:21,920 Speaker 1: I mean, yes, some argue that the Model report has 518 00:29:22,000 --> 00:29:24,920 Speaker 1: enough grounds, but but the public polls don't show that. 519 00:29:25,320 --> 00:29:28,360 Speaker 1: She thinks if the committees dig into his financial records 520 00:29:28,360 --> 00:29:30,960 Speaker 1: and some other and other areas, that potentially you can 521 00:29:31,040 --> 00:29:36,240 Speaker 1: develop that overwhelming consensus, bipartisan consensus, that would be necessary 522 00:29:36,280 --> 00:29:38,320 Speaker 1: to actually get anywhere with impeachment. But that's what's so 523 00:29:38,360 --> 00:29:41,800 Speaker 1: fascinating about the debate tonight, which is that they weren't 524 00:29:41,840 --> 00:29:44,360 Speaker 1: even talking about the Mullet report. They weren't talking about 525 00:29:44,680 --> 00:29:48,840 Speaker 1: financial disclosures and taxes and whatnot. They were talking about 526 00:29:48,880 --> 00:29:51,520 Speaker 1: the past four days. So is this is this the 527 00:29:51,520 --> 00:29:54,120 Speaker 1: new normal that every time there is a Twitter temper 528 00:29:54,160 --> 00:29:57,600 Speaker 1: tantrum for lack of a better phrase, that the squad 529 00:29:57,640 --> 00:30:00,120 Speaker 1: is going to say impeach and Pelosi is gonna say no. 530 00:30:01,560 --> 00:30:03,880 Speaker 1: Um yeah, I mean, we'll probably see this happen over 531 00:30:03,880 --> 00:30:05,640 Speaker 1: and over again. But on the other hand, you know, 532 00:30:05,760 --> 00:30:08,640 Speaker 1: I think the Democrats, you know, Al Green, you know, 533 00:30:08,640 --> 00:30:10,840 Speaker 1: pretty much got slapped down on the floor just now. 534 00:30:10,880 --> 00:30:12,720 Speaker 1: I mean, three thirty two to ninety five, that's a 535 00:30:12,720 --> 00:30:15,480 Speaker 1: pretty overwhelming vote. Do other people want to go that path? 536 00:30:15,600 --> 00:30:17,640 Speaker 1: I think we've I think Pelosi. This is a big 537 00:30:17,720 --> 00:30:20,920 Speaker 1: victory for Pelosi. She kept her caucus behind her. And 538 00:30:21,000 --> 00:30:23,160 Speaker 1: so you know, you're gonna do a lot better than 539 00:30:23,200 --> 00:30:24,720 Speaker 1: what al Green came up with if you're going to 540 00:30:24,840 --> 00:30:27,000 Speaker 1: get anywhere with articles of impeachment. All right, and this 541 00:30:27,080 --> 00:30:29,680 Speaker 1: is this is going to continue. Uh, this is going 542 00:30:29,720 --> 00:30:32,960 Speaker 1: to continue because I'm I'm reading a Bloomberg News story 543 00:30:33,040 --> 00:30:36,440 Speaker 1: from Justin Sink. Just within the last half hour, President 544 00:30:36,480 --> 00:30:43,040 Speaker 1: Trump escalating the conflict with the squad, referencing UH Congresswoman 545 00:30:43,360 --> 00:30:46,960 Speaker 1: Ellen Omar saying, quote, there's a lot of talk about 546 00:30:47,000 --> 00:30:49,840 Speaker 1: the fact that she was married to her brother. I 547 00:30:49,920 --> 00:30:52,400 Speaker 1: know nothing about it. I hear she was married to 548 00:30:52,440 --> 00:30:55,240 Speaker 1: her brother. End quote. That was what President Trump said 549 00:30:55,280 --> 00:30:59,880 Speaker 1: tonight within the past hour. Omar, I'm reading from the 550 00:31:00,000 --> 00:31:03,040 Speaker 1: Inberg terminal. Now. Omar was elected in two thousand and eighteen. 551 00:31:03,280 --> 00:31:06,440 Speaker 1: She issued a statement during her congressional campaign calling those 552 00:31:06,520 --> 00:31:09,800 Speaker 1: rumors quote absolutely false and ridiculous, and she went on 553 00:31:09,840 --> 00:31:13,040 Speaker 1: to say that they were absurd and defensive. Her office 554 00:31:13,040 --> 00:31:16,760 Speaker 1: didn't immediately respond to a request for comment on Wednesday night. 555 00:31:16,840 --> 00:31:19,320 Speaker 1: All Right, I'm also joined switching gears. Now we've got 556 00:31:19,320 --> 00:31:21,959 Speaker 1: about less than two minutes left by Bill Cunningham. He's 557 00:31:21,960 --> 00:31:24,800 Speaker 1: an economist. So the other big story today was, of 558 00:31:24,800 --> 00:31:27,720 Speaker 1: course cryptocurrency, digital currency. What's next in the next, in 559 00:31:27,720 --> 00:31:30,480 Speaker 1: the in the short term, these Facebook folks, the big 560 00:31:30,480 --> 00:31:32,600 Speaker 1: tech folks, they're gonna stick around on Capitol Hill this week. 561 00:31:32,640 --> 00:31:35,480 Speaker 1: They're gonna be meeting with lawmakers privately. What's their message 562 00:31:35,480 --> 00:31:37,760 Speaker 1: to to their to the lawmakers. Well, they've got to 563 00:31:37,800 --> 00:31:40,560 Speaker 1: sharpen their messaging around the social return and the social 564 00:31:40,600 --> 00:31:46,720 Speaker 1: benefit of of their approach. Remember, Sotoshi created cryptocurrency, you 565 00:31:46,840 --> 00:31:49,600 Speaker 1: lost like no one knows to stoci is the guy 566 00:31:49,600 --> 00:31:51,960 Speaker 1: who found a bitcoin. But what's next? Keep it simple 567 00:31:51,960 --> 00:31:54,880 Speaker 1: for me, all right. So what's next is the legislators 568 00:31:54,880 --> 00:31:57,160 Speaker 1: who are gonna try to use f s o C, 569 00:31:57,480 --> 00:32:01,520 Speaker 1: which is the Financial Stability First Sight Council f SOCK 570 00:32:01,720 --> 00:32:05,960 Speaker 1: f SOCK to review this proposal. Now that's the big 571 00:32:06,000 --> 00:32:08,840 Speaker 1: tool that they have to be able to put pressure 572 00:32:09,240 --> 00:32:15,120 Speaker 1: on Facebook. Uh. It's a regulatory agency that's responsible for 573 00:32:15,160 --> 00:32:17,719 Speaker 1: the stability of the financial system, all right, So it's 574 00:32:17,760 --> 00:32:19,960 Speaker 1: the regulators, and respectfully, I don't think it's just gonna 575 00:32:20,000 --> 00:32:21,360 Speaker 1: be f sock I think that they're going to be 576 00:32:21,360 --> 00:32:24,120 Speaker 1: looking at the Consumer Financial Protection Bureau. They're gonna be 577 00:32:24,120 --> 00:32:26,040 Speaker 1: looking at finn Sen, which is a part of the 578 00:32:26,080 --> 00:32:29,440 Speaker 1: Treasury arm That's what Treasury Secretary Monution said earlier. And 579 00:32:29,440 --> 00:32:31,800 Speaker 1: don't forget about the FED. The Fed also has a 580 00:32:31,880 --> 00:32:33,440 Speaker 1: role to play here, which I guess you would argue 581 00:32:33,440 --> 00:32:35,280 Speaker 1: as f Socksville, not to get too wonkey in the 582 00:32:35,280 --> 00:32:38,080 Speaker 1: alphabet soup. We covered it all. We covered it all, 583 00:32:38,120 --> 00:32:40,680 Speaker 1: Bill Conny Camp, thank you, Alex Bolton, thank you both 584 00:32:40,760 --> 00:32:43,000 Speaker 1: of your first times. I believe on the program. That's 585 00:32:43,040 --> 00:32:45,280 Speaker 1: it for me. I want to thank Christine Rata, our 586 00:32:45,320 --> 00:32:47,440 Speaker 1: team in New York, as well as David Suckerman and 587 00:32:47,480 --> 00:32:51,600 Speaker 1: our esteemed cameraman Harvey Hurricane Harvey, for all of their 588 00:32:51,640 --> 00:32:54,680 Speaker 1: help in coordinating this. I'm Kevin Sirelli, broadcasting live from 589 00:32:54,680 --> 00:32:58,080 Speaker 1: inside of Rayburn's House Financial Services Committee hearing Room. You're 590 00:32:58,120 --> 00:33:03,000 Speaker 1: listening to Bloomberg two