1 00:00:01,680 --> 00:00:06,200 Speaker 1: Now from our nation's capital. This is Bloomberg Sound on 2 00:00:06,960 --> 00:00:09,800 Speaker 1: the year over year headline number at nine point one 3 00:00:09,920 --> 00:00:13,400 Speaker 1: per cent. CPI data is already out of date because 4 00:00:13,600 --> 00:00:16,400 Speaker 1: energy prices have come down. When you're hearing there is 5 00:00:16,440 --> 00:00:18,400 Speaker 1: sort of like a Wizard of Oz. Don't look behind 6 00:00:18,400 --> 00:00:22,600 Speaker 1: the curtain. Bloomberg Sound on Politics, Policy and Perspective from 7 00:00:22,720 --> 00:00:27,240 Speaker 1: DC's top name. Say, Israel and the United States continue 8 00:00:27,280 --> 00:00:30,080 Speaker 1: to grow and prosper together for the benefit of the 9 00:00:30,280 --> 00:00:32,840 Speaker 1: entire world. If the US pulls out of the Middle East, 10 00:00:32,920 --> 00:00:35,440 Speaker 1: China and Russia move in, and that's a big spot 11 00:00:35,520 --> 00:00:40,200 Speaker 1: to fill. Bloomberg Sound On with Joe Matthew on Bloomberg Radio. 12 00:00:41,520 --> 00:00:45,080 Speaker 1: The CPI hits hard in Washington. Welcome to the fastest 13 00:00:45,080 --> 00:00:48,920 Speaker 1: hour in politics, as today's inflation report feeds both sides 14 00:00:49,000 --> 00:00:52,600 Speaker 1: of the argument over spending and whether the Biden economic 15 00:00:52,640 --> 00:00:55,720 Speaker 1: agenda has a future. We'll talk about it with Miya McGuinness, 16 00:00:56,200 --> 00:00:59,840 Speaker 1: president of the Committee for a Responsible Federal Budget. President 17 00:01:00,040 --> 00:01:02,680 Speaker 1: Hiden touches down in Israel, a trip aimed at shoring 18 00:01:02,760 --> 00:01:06,880 Speaker 1: up relationships and oil. Will discuss it with CIA officer 19 00:01:06,959 --> 00:01:11,240 Speaker 1: turned Congresswoman Abigail Spanburger, Democrat from Virginia who serves on 20 00:01:11,280 --> 00:01:14,560 Speaker 1: the House Foreign Affairs Committee. Analysis from our signature panel 21 00:01:14,560 --> 00:01:18,280 Speaker 1: Bloomberg Politics contributors Jeanie Chanzano and Rick Davis are with us. 22 00:01:18,760 --> 00:01:22,120 Speaker 1: The CPI certainly landed hard this morning in Washington. Reactions 23 00:01:22,160 --> 00:01:25,759 Speaker 1: swift from both ends of Pennsylvania avenue. A statement this 24 00:01:25,800 --> 00:01:30,200 Speaker 1: morning from the President called it unacceptably high and reminded, 25 00:01:30,280 --> 00:01:33,399 Speaker 1: as we heard from the Press Secretary yesterday, it does 26 00:01:33,440 --> 00:01:35,959 Speaker 1: not reflect the full impact of the last month of 27 00:01:36,120 --> 00:01:41,280 Speaker 1: lower gas prices. Same argument on Capitol Hill, as Democrats 28 00:01:41,480 --> 00:01:45,160 Speaker 1: use this as an argument for the reconciliation bill that 29 00:01:45,240 --> 00:01:49,400 Speaker 1: we have been talking about here, the drug price components, 30 00:01:49,640 --> 00:01:53,640 Speaker 1: lower deficit spending, Republicans using the same argument for why 31 00:01:53,720 --> 00:01:57,160 Speaker 1: that shouldn't happen. And that's where we begin with Mia McGuinness, 32 00:01:57,400 --> 00:02:00,080 Speaker 1: president of the Committee for a Responsible Federal Budge it 33 00:02:00,600 --> 00:02:03,360 Speaker 1: with us now on Bloomberg's sound on Maya. Welcome back, 34 00:02:03,760 --> 00:02:05,920 Speaker 1: Thank you, it's great to be back with you. Well, 35 00:02:05,960 --> 00:02:08,000 Speaker 1: now that you've seen today's CPI and you've had a 36 00:02:08,040 --> 00:02:10,320 Speaker 1: minute to digest this, what does it mean for the 37 00:02:10,360 --> 00:02:14,840 Speaker 1: Democratic agenda in Washington. We've been talking about another reconciliation 38 00:02:14,880 --> 00:02:18,160 Speaker 1: bill lately. Does this mean the store is closed for 39 00:02:18,200 --> 00:02:22,400 Speaker 1: the rest of summer, Well, I mean it's it is. 40 00:02:22,480 --> 00:02:25,160 Speaker 1: It is bad news all around, but it is bad 41 00:02:25,200 --> 00:02:28,120 Speaker 1: news that actually might be good news for the Reconciliation 42 00:02:28,200 --> 00:02:31,680 Speaker 1: Bill if we follow the policies that make sense. And 43 00:02:31,720 --> 00:02:34,720 Speaker 1: that's a big ift, because things are not always sensible 44 00:02:35,000 --> 00:02:38,399 Speaker 1: in d C these days. But um, the Reconciliation Bill, 45 00:02:38,440 --> 00:02:40,919 Speaker 1: as people know, has changed massively from what it used 46 00:02:40,919 --> 00:02:44,320 Speaker 1: to be, which was a huge kind of budget busting 47 00:02:44,400 --> 00:02:46,840 Speaker 1: many many trillions, even more than it was advertised, with 48 00:02:46,919 --> 00:02:49,040 Speaker 1: some gimmicks in it, and it was something that kind 49 00:02:49,040 --> 00:02:52,840 Speaker 1: of imploded on its own weight. But the new version 50 00:02:52,880 --> 00:02:55,079 Speaker 1: of it, everything that we're hearing is really a very 51 00:02:55,120 --> 00:02:59,000 Speaker 1: different structure, which is more modest in its size. About 52 00:02:59,040 --> 00:03:01,600 Speaker 1: a trillion dollars we're reading, and half of that would 53 00:03:01,600 --> 00:03:03,919 Speaker 1: go to deficit reduction. And I guess what I would 54 00:03:03,919 --> 00:03:05,880 Speaker 1: point out is from what we're hearing, is that the 55 00:03:05,919 --> 00:03:09,600 Speaker 1: deficit reduction portions of that bill, the parts that would 56 00:03:09,600 --> 00:03:14,320 Speaker 1: focus on healthcare savings, um and uh, the fact that 57 00:03:14,360 --> 00:03:17,480 Speaker 1: it would have higher revenues, those things are some of 58 00:03:17,520 --> 00:03:21,280 Speaker 1: the most important things for the fiscal policies run by 59 00:03:21,280 --> 00:03:25,040 Speaker 1: the federal government that would actually push against inflation. So 60 00:03:25,480 --> 00:03:28,160 Speaker 1: the point would be inflation is really bad. It's not 61 00:03:28,200 --> 00:03:31,640 Speaker 1: going away anytime soon. Uh. The more that that we 62 00:03:31,680 --> 00:03:33,919 Speaker 1: can do at the federal level to help the FED 63 00:03:34,000 --> 00:03:36,480 Speaker 1: where the heavy lifting is better, it's going to be. 64 00:03:36,640 --> 00:03:39,080 Speaker 1: So I think that gives a lot of economic justifications 65 00:03:39,120 --> 00:03:42,480 Speaker 1: for the structure. It sounds like reconciliation maybe. Well, that's fascinating. 66 00:03:42,480 --> 00:03:44,920 Speaker 1: I've been calling it, build back better light. The White 67 00:03:44,920 --> 00:03:46,960 Speaker 1: House says exactly what you just said, that this is 68 00:03:46,960 --> 00:03:49,840 Speaker 1: actually what we need now to bring prices lower, to 69 00:03:49,880 --> 00:03:54,320 Speaker 1: bring the deficit lower. Republicans say you're spending money like 70 00:03:54,400 --> 00:03:57,080 Speaker 1: drunken sailors. I mean, we even saw Mitch McConnell throw 71 00:03:57,120 --> 00:04:00,560 Speaker 1: down is the gauntlet on the China Competitiveness Bill over this. 72 00:04:00,640 --> 00:04:03,720 Speaker 1: But my I was taken by Senator Joe mansion statement 73 00:04:04,080 --> 00:04:06,160 Speaker 1: on the CPI report today. He talked about the pain 74 00:04:06,200 --> 00:04:09,160 Speaker 1: facing families in West Virginia, but he ended with this line, 75 00:04:09,680 --> 00:04:13,400 Speaker 1: no matter what spending aspirations some in Congress may have, 76 00:04:14,160 --> 00:04:16,719 Speaker 1: it is clear to anyone who visits a grocery store 77 00:04:16,800 --> 00:04:20,039 Speaker 1: or a gas station that we cannot add any more 78 00:04:20,120 --> 00:04:23,440 Speaker 1: fuel to this inflation fire. Does that sound like someone 79 00:04:23,480 --> 00:04:27,040 Speaker 1: about to vote yes for a trillion dollar bill? So 80 00:04:28,000 --> 00:04:30,960 Speaker 1: I think actually it could from what the bill and listen, 81 00:04:31,120 --> 00:04:32,600 Speaker 1: we don't know what the bill is going to be. 82 00:04:32,880 --> 00:04:36,240 Speaker 1: But what Joe Mansion has basically single handedly done is 83 00:04:36,520 --> 00:04:40,159 Speaker 1: changed this bill from a huge deficit increasing bill to 84 00:04:40,279 --> 00:04:43,400 Speaker 1: something that would have deficit savings bring the deficit down 85 00:04:43,440 --> 00:04:46,640 Speaker 1: by about half a trillion dollars. So absolutely that would 86 00:04:46,680 --> 00:04:49,080 Speaker 1: be the opposite of throwing fuel on the fire. Now, 87 00:04:49,360 --> 00:04:51,440 Speaker 1: they're still going to be spending a lot of money, 88 00:04:51,440 --> 00:04:53,520 Speaker 1: and one could say, well, they should spend less and 89 00:04:53,560 --> 00:04:57,400 Speaker 1: save more through more deficit reduction. But from the new structure, 90 00:04:57,640 --> 00:05:00,599 Speaker 1: the build back better light as you're saying, um, now 91 00:05:00,640 --> 00:05:03,000 Speaker 1: that it has deficit reduction in in it instead of 92 00:05:03,000 --> 00:05:06,320 Speaker 1: a lot of borrowing. It's consistent with fighting the price 93 00:05:06,440 --> 00:05:08,200 Speaker 1: rises that he's seeing in West Virginia and we're seeing 94 00:05:08,240 --> 00:05:11,080 Speaker 1: all over the country. So again, I think it does 95 00:05:11,200 --> 00:05:15,479 Speaker 1: make sense that if everybody kind of follows the reasoning 96 00:05:15,640 --> 00:05:17,680 Speaker 1: rather than looking at it from a political angle, which 97 00:05:17,720 --> 00:05:19,120 Speaker 1: is probably how most people are looking at it. But 98 00:05:19,200 --> 00:05:21,720 Speaker 1: if they think about the economic effects, this would be 99 00:05:21,960 --> 00:05:26,599 Speaker 1: pro fighting inflation, and you want to do every single 100 00:05:26,640 --> 00:05:29,000 Speaker 1: thing you can grow in that direction right now? All right, 101 00:05:29,040 --> 00:05:31,120 Speaker 1: So this is a very positive take from miamc ginness. 102 00:05:31,120 --> 00:05:34,280 Speaker 1: Now let's let's just usually very pessimist. Well, I don't know, 103 00:05:34,320 --> 00:05:36,960 Speaker 1: but it looks this is why we wanted to talk 104 00:05:36,960 --> 00:05:39,279 Speaker 1: to you. And let's so let's just extrapolate this little bit. 105 00:05:39,360 --> 00:05:43,799 Speaker 1: Let's assume this reconciliation bill moves forward. I already mentioned 106 00:05:43,800 --> 00:05:45,760 Speaker 1: Mitch McConnell on this, So I guess my question is 107 00:05:45,800 --> 00:05:48,640 Speaker 1: can you have both? Can Democrats get this done? And 108 00:05:48,720 --> 00:05:52,080 Speaker 1: could there still be a bipartisan China Competes bill you 109 00:05:52,160 --> 00:05:55,680 Speaker 1: seek of the Chip Act and the rest. Yeah, and 110 00:05:55,800 --> 00:05:58,400 Speaker 1: that that is a tough political question because as we 111 00:05:58,440 --> 00:06:00,719 Speaker 1: get closer to the election, it becomes more difficult for 112 00:06:00,760 --> 00:06:03,960 Speaker 1: all policymakers who really want in a bipartisan way to 113 00:06:04,000 --> 00:06:08,440 Speaker 1: get that work done, to come together. But boy, am 114 00:06:08,440 --> 00:06:11,360 Speaker 1: I feeling optimistic compared to normal. I think you could 115 00:06:11,360 --> 00:06:13,760 Speaker 1: see both of those happen. I think you could see 116 00:06:13,760 --> 00:06:17,240 Speaker 1: the Reconciliation bill and I think you could see something bipartisan, 117 00:06:17,560 --> 00:06:19,279 Speaker 1: or you could take some of those policies and see 118 00:06:19,320 --> 00:06:21,719 Speaker 1: which of them could fit into the reconciliation bill and 119 00:06:21,760 --> 00:06:26,279 Speaker 1: get something done that way. Um. All of that said, listen, 120 00:06:26,320 --> 00:06:29,599 Speaker 1: the calendar short between now and the election. Um. People 121 00:06:29,600 --> 00:06:33,400 Speaker 1: are much folk more focused on their elections right now 122 00:06:33,480 --> 00:06:35,800 Speaker 1: than doing policy. And I know there's a very high 123 00:06:35,920 --> 00:06:39,479 Speaker 1: level frustration on the Hill about policymakers who care about 124 00:06:39,520 --> 00:06:43,400 Speaker 1: all of these ideas feeling like they are there's just 125 00:06:43,480 --> 00:06:47,280 Speaker 1: no avenue to move forward. So I wouldn't bet on both, 126 00:06:47,279 --> 00:06:49,599 Speaker 1: but I think it's possible. Well, I'm gonna throw another 127 00:06:49,839 --> 00:06:52,480 Speaker 1: iron on the fire here, and that's a defense spending 128 00:06:52,520 --> 00:06:56,000 Speaker 1: The House taking up the National Defense Authorization Act this week, 129 00:06:56,040 --> 00:06:58,960 Speaker 1: and we're in a very different world than we were 130 00:06:58,960 --> 00:07:02,159 Speaker 1: when the request was made my due to inflation and 131 00:07:02,320 --> 00:07:05,080 Speaker 1: the billions of dollars and weapons we've been sending to Ukraine. 132 00:07:05,080 --> 00:07:07,760 Speaker 1: The House version is just over eight hundred billion dollars 133 00:07:07,800 --> 00:07:10,120 Speaker 1: at least at the stage. Is that number going to 134 00:07:10,200 --> 00:07:11,840 Speaker 1: end up being a lot higher? Will there be an 135 00:07:11,840 --> 00:07:15,640 Speaker 1: appetite for more? Uh? It probably is. And here's where 136 00:07:15,680 --> 00:07:18,640 Speaker 1: my my optimism ends. So when it comes to the appropriations, 137 00:07:18,920 --> 00:07:20,680 Speaker 1: I think we're going to see and this is normal 138 00:07:20,720 --> 00:07:23,960 Speaker 1: for the appropriations process, but more so now is that 139 00:07:24,160 --> 00:07:25,720 Speaker 1: there's going to be a pushing up of the price 140 00:07:25,800 --> 00:07:27,960 Speaker 1: tag on the defense side. There are a lot of 141 00:07:28,080 --> 00:07:30,400 Speaker 1: arguments for that, but it's not clear how many more 142 00:07:30,440 --> 00:07:32,400 Speaker 1: dollars we actually need. A lot of time, this is 143 00:07:32,640 --> 00:07:35,240 Speaker 1: mercy signaling, showing how you want to spend more on 144 00:07:35,280 --> 00:07:37,720 Speaker 1: the things that you think are important priorities. There will 145 00:07:37,760 --> 00:07:39,960 Speaker 1: be a struggle over that, and it may well be 146 00:07:40,040 --> 00:07:42,840 Speaker 1: met by that. They then agree to actually bump up 147 00:07:42,840 --> 00:07:46,880 Speaker 1: to spending on the non defense domestic discretionary area of 148 00:07:46,920 --> 00:07:48,960 Speaker 1: the budget. Also, this is the deal we often see, 149 00:07:48,960 --> 00:07:51,760 Speaker 1: which is will spend more in our area, you spend 150 00:07:51,800 --> 00:07:54,520 Speaker 1: more in your area. The problem with all of this 151 00:07:54,600 --> 00:07:56,800 Speaker 1: is none of this will be paid for, none of 152 00:07:56,840 --> 00:08:00,680 Speaker 1: it will be offset, and therefore that means it's war borrowing. 153 00:08:01,040 --> 00:08:03,880 Speaker 1: That goes back to the inflation story in the wrong direction. 154 00:08:03,960 --> 00:08:05,960 Speaker 1: Every dollar we borrow is going to put more money 155 00:08:06,000 --> 00:08:08,200 Speaker 1: into the economy rather than paying for it, and that's 156 00:08:08,200 --> 00:08:11,400 Speaker 1: going to be inflationary, So more deficit spending. We've got 157 00:08:11,440 --> 00:08:13,360 Speaker 1: a lot of stuff to buy. It was not just 158 00:08:13,560 --> 00:08:15,800 Speaker 1: Ukraine in the cost of this proxy war, but we 159 00:08:15,840 --> 00:08:20,840 Speaker 1: have to we have to refill our own inventories. There's 160 00:08:20,880 --> 00:08:22,920 Speaker 1: plenty of things we have to spend money on, and 161 00:08:22,960 --> 00:08:25,840 Speaker 1: it's not that you can't spend money that you have 162 00:08:25,960 --> 00:08:27,640 Speaker 1: to pay for the things that you want to spend 163 00:08:27,640 --> 00:08:30,720 Speaker 1: money on. And occasionally picking and choosing would also be 164 00:08:30,760 --> 00:08:33,440 Speaker 1: an excellent part of budgeting. We don't do that very often. 165 00:08:33,760 --> 00:08:35,719 Speaker 1: Everybody should keep in mind we don't even have a 166 00:08:35,760 --> 00:08:38,360 Speaker 1: budget in place this year. We are just about to 167 00:08:38,440 --> 00:08:40,880 Speaker 1: hit the point where we are three months late in 168 00:08:40,960 --> 00:08:43,480 Speaker 1: Congress coming up with a budget, and they're not even 169 00:08:43,520 --> 00:08:46,200 Speaker 1: lifting a finger to try to pass one. So that's 170 00:08:46,240 --> 00:08:48,880 Speaker 1: that's a big part of this problem as well. Mia Beginness. 171 00:08:48,880 --> 00:08:51,400 Speaker 1: I haven't asked you about the Federal Reserve yet. People 172 00:08:51,440 --> 00:08:53,640 Speaker 1: came out of the CPI report today and said a 173 00:08:53,760 --> 00:08:58,040 Speaker 1: hundred basis points and I can't really imagine it even 174 00:08:58,080 --> 00:09:00,360 Speaker 1: if I saw it. I'm not sure how that would feel. 175 00:09:00,840 --> 00:09:03,880 Speaker 1: But I wonder how concerned you are about the trajectory here. 176 00:09:03,920 --> 00:09:05,960 Speaker 1: The Federal Reserve is the first to say that it 177 00:09:06,040 --> 00:09:10,840 Speaker 1: cannot impact oil prices, energy at large, or food prices. 178 00:09:10,880 --> 00:09:13,560 Speaker 1: That's why they look at the core. But those are 179 00:09:13,559 --> 00:09:17,280 Speaker 1: the two very things that are driving inflation to these 180 00:09:17,360 --> 00:09:21,360 Speaker 1: historic levels. So while the Fed is hiking interest rates, 181 00:09:21,559 --> 00:09:24,200 Speaker 1: it is not solving those two problems, but appears to 182 00:09:24,200 --> 00:09:26,320 Speaker 1: be sending us into a recession. Is that how you 183 00:09:26,320 --> 00:09:29,360 Speaker 1: see it? Well, I think a jury is still out 184 00:09:29,360 --> 00:09:31,440 Speaker 1: and whether that whether we will be in a recession, 185 00:09:31,440 --> 00:09:34,600 Speaker 1: but I think it's certainly likely given the conditions without questions, 186 00:09:34,679 --> 00:09:37,080 Speaker 1: is I think the FED, I mean, I I don't 187 00:09:37,080 --> 00:09:39,720 Speaker 1: think we're gonna see a hundred based points without some 188 00:09:40,760 --> 00:09:42,559 Speaker 1: guidance that's going to happen ahead of time. So I 189 00:09:42,600 --> 00:09:45,280 Speaker 1: still at seventy. I mean we're going to see aggressive 190 00:09:45,320 --> 00:09:47,600 Speaker 1: rate hikes and that certainly means that it's more likely 191 00:09:47,640 --> 00:09:49,800 Speaker 1: that we go into a recession. And it is very 192 00:09:49,840 --> 00:09:52,440 Speaker 1: difficult to control somebody specific parts of the economy where 193 00:09:52,480 --> 00:09:54,800 Speaker 1: the big problems are. And that has to do with 194 00:09:54,880 --> 00:09:57,360 Speaker 1: the fact that all of this is brought on by 195 00:09:57,800 --> 00:10:01,680 Speaker 1: both the demand side supply side right by flooding the 196 00:10:01,720 --> 00:10:05,440 Speaker 1: economy with too much in the last um COVID spending bill, 197 00:10:05,559 --> 00:10:08,040 Speaker 1: which which led to inflation, and then all the supply 198 00:10:08,320 --> 00:10:11,920 Speaker 1: chain problems that we've had since. So the best tools 199 00:10:11,960 --> 00:10:14,679 Speaker 1: we have are from the FED. The tools that can 200 00:10:14,760 --> 00:10:18,839 Speaker 1: help them are borrowing less and bringing our deficits down. 201 00:10:19,320 --> 00:10:21,320 Speaker 1: But the problem is we are in a situation that 202 00:10:21,360 --> 00:10:25,120 Speaker 1: we don't have complete control. We are too interdependent as 203 00:10:25,160 --> 00:10:28,319 Speaker 1: a global economy as things have gotten out of control, 204 00:10:28,360 --> 00:10:30,320 Speaker 1: and this is going to be tough to weather. It 205 00:10:30,400 --> 00:10:32,520 Speaker 1: is going to be a bumpy road. Well, that's why 206 00:10:32,520 --> 00:10:34,120 Speaker 1: you wonder if the Fed wants to drive us maybe 207 00:10:34,120 --> 00:10:36,480 Speaker 1: not necessarily a new more recession, but but certainly to 208 00:10:36,600 --> 00:10:39,880 Speaker 1: such low growth that demands for things like oil and 209 00:10:39,960 --> 00:10:43,440 Speaker 1: food start to come down. That's a pretty tough scenario 210 00:10:43,480 --> 00:10:46,000 Speaker 1: to be in, isn't it. That's a pretty tough scenario. 211 00:10:46,000 --> 00:10:47,360 Speaker 1: I mean, one of the worst things about having to 212 00:10:47,440 --> 00:10:49,800 Speaker 1: fight the situation we're in is that there's people who 213 00:10:49,840 --> 00:10:54,320 Speaker 1: are undergoing real hardship from the economic conditions. And the 214 00:10:54,440 --> 00:10:56,560 Speaker 1: true answer about what we do to fight it is 215 00:10:56,600 --> 00:10:59,439 Speaker 1: we ask people to spend by less of those things. 216 00:10:59,559 --> 00:11:01,839 Speaker 1: That's right, spend less money. We actually need people to 217 00:11:01,880 --> 00:11:05,080 Speaker 1: be saving more money. But when gas and food and 218 00:11:05,120 --> 00:11:07,680 Speaker 1: rent are eating up more of your pocketbook, that's a 219 00:11:07,800 --> 00:11:12,160 Speaker 1: really tough ask. And so um, this, this is this 220 00:11:12,200 --> 00:11:14,640 Speaker 1: is why you want to not get in a situation 221 00:11:14,640 --> 00:11:17,600 Speaker 1: in the first place. You're here, miam A Guinness. Great 222 00:11:17,600 --> 00:11:19,160 Speaker 1: to talk with your President of the Committee for a 223 00:11:19,160 --> 00:11:22,240 Speaker 1: Responsible Federal Budget. Thanks for your time and insights today 224 00:11:22,240 --> 00:11:26,320 Speaker 1: on Bloomberg. Thanks so much. We assemble the panel next 225 00:11:26,360 --> 00:11:29,160 Speaker 1: for their take. Rick Davis Jennie Chanzano on the fastest 226 00:11:29,200 --> 00:11:38,280 Speaker 1: hour in politics. I'm Joe Matthew. This is Bloomberg. This 227 00:11:38,800 --> 00:11:44,200 Speaker 1: is Bloomberg Sound on on Bloomberg Radio. It's always a 228 00:11:44,200 --> 00:11:47,440 Speaker 1: fun time in Washington when political opponents use the same 229 00:11:47,559 --> 00:11:51,120 Speaker 1: argument for different ends. Democrats say we need a spending 230 00:11:51,160 --> 00:11:55,640 Speaker 1: bill right now because of inflation. Republicans say we can't 231 00:11:55,679 --> 00:12:00,559 Speaker 1: afford a spending bill because of inflation. Listen to New 232 00:12:00,640 --> 00:12:04,120 Speaker 1: York Congressman HAACKEM Jeffreys. This is democratic leadership. He he 233 00:12:04,240 --> 00:12:08,080 Speaker 1: leads the House Democratic Caucus. Our focus really is is 234 00:12:08,400 --> 00:12:12,880 Speaker 1: to make America as affordable as it can be for 235 00:12:12,960 --> 00:12:17,760 Speaker 1: American families and everyday Americans. And we've taken legislative step 236 00:12:17,800 --> 00:12:21,200 Speaker 1: after legislative step to do that. So I hope that 237 00:12:21,200 --> 00:12:25,079 Speaker 1: whatever comes out of the Senate is focused on lowering 238 00:12:25,480 --> 00:12:29,840 Speaker 1: costs for everyday Americans consistent with what we've done in now. 239 00:12:30,360 --> 00:12:34,160 Speaker 1: But that wouldn't work according to Republicans like Congressman Bill 240 00:12:34,360 --> 00:12:37,840 Speaker 1: Kazinga of Michigan, talking today on Capitol Hill. Heap serves 241 00:12:37,880 --> 00:12:41,160 Speaker 1: on the House Financial Services Committee. We are we are 242 00:12:41,360 --> 00:12:44,040 Speaker 1: on this committee on Financial Services. Have been talking about 243 00:12:44,120 --> 00:12:46,400 Speaker 1: this for well over a year, trying to reign in 244 00:12:46,440 --> 00:12:50,680 Speaker 1: the federal reserve, trying to reign in Congress's appetite for spending, 245 00:12:51,280 --> 00:12:54,280 Speaker 1: knowing that that is fueling this and if we don't 246 00:12:54,320 --> 00:12:57,080 Speaker 1: do so soon, we are going to be even worse trouble. 247 00:12:57,559 --> 00:13:00,280 Speaker 1: Let's assemble the panel for their take. Bloomberg po takes 248 00:13:00,320 --> 00:13:04,640 Speaker 1: contributors Jeannie Shenzano and Rick Davis. I'm not going to 249 00:13:04,720 --> 00:13:06,880 Speaker 1: try to turn you guys into economists here. We're curious, 250 00:13:06,960 --> 00:13:10,240 Speaker 1: of course, about policy and political outcomes. Does this a 251 00:13:10,320 --> 00:13:12,600 Speaker 1: genie mean? As I asked Miami Guinness, and by the 252 00:13:12,600 --> 00:13:15,440 Speaker 1: way I was, I was taken by her optimism on 253 00:13:15,520 --> 00:13:18,560 Speaker 1: the future of a reconciliation bill. Does this make it 254 00:13:18,640 --> 00:13:22,040 Speaker 1: less likely or does it shut it down? Well, I 255 00:13:22,080 --> 00:13:24,080 Speaker 1: too was taken by it, and I am here to 256 00:13:24,160 --> 00:13:26,400 Speaker 1: balance that out with a bit of pessimism. So I 257 00:13:26,440 --> 00:13:29,640 Speaker 1: will balance may out in that because I agree with Maya. 258 00:13:29,760 --> 00:13:33,160 Speaker 1: If they followed what makes sense from a policy perspective 259 00:13:33,160 --> 00:13:36,160 Speaker 1: and an economic perspective, they would go through with this 260 00:13:36,280 --> 00:13:39,240 Speaker 1: skinny bill as you've been talking about. But the reality 261 00:13:39,360 --> 00:13:43,040 Speaker 1: is about politics, and you rightly said the thing that 262 00:13:43,080 --> 00:13:45,440 Speaker 1: we're all thinking, what does Joe have to say about it? 263 00:13:45,480 --> 00:13:48,320 Speaker 1: And that is Joe Mansion. And he was very very clear. 264 00:13:48,520 --> 00:13:52,080 Speaker 1: How did you interpret the statement? I interpreted the statement 265 00:13:52,160 --> 00:13:55,160 Speaker 1: as putting the brakes on this discussion. And let's not 266 00:13:55,200 --> 00:13:58,480 Speaker 1: forget Joe mansion is to start with, what about Kristen cinema? 267 00:13:58,520 --> 00:14:00,720 Speaker 1: You're just playing people from the house. What about people 268 00:14:00,720 --> 00:14:03,120 Speaker 1: in the house. They have so little room to maneuver 269 00:14:03,200 --> 00:14:05,599 Speaker 1: in this And oh, by the way, Senator Schumer is 270 00:14:05,720 --> 00:14:07,880 Speaker 1: laid up in New York City with COVID while we're 271 00:14:07,920 --> 00:14:10,240 Speaker 1: trying to do all this. I mean, it is such 272 00:14:10,280 --> 00:14:12,600 Speaker 1: a difficult position to be in. So yes, from a 273 00:14:12,600 --> 00:14:16,520 Speaker 1: policy perspective, I agree with Maya. But from a politics perspective, 274 00:14:16,800 --> 00:14:19,280 Speaker 1: the amount of spending their talking about, when you're talking 275 00:14:19,280 --> 00:14:23,080 Speaker 1: about inflation at a forty year high, very difficult for me. 276 00:14:23,160 --> 00:14:25,360 Speaker 1: Imagine you're not going to lose a couple of Democrats 277 00:14:25,400 --> 00:14:27,920 Speaker 1: here there, and that's enough to kill this thing. Ricky 278 00:14:27,960 --> 00:14:30,320 Speaker 1: ends the statement again, Joe Mansion. No matter what spending 279 00:14:30,360 --> 00:14:32,760 Speaker 1: aspirations some in Congress may have, it's clear to anyone 280 00:14:32,760 --> 00:14:35,800 Speaker 1: who visits a grocery store or gas station that we 281 00:14:35,880 --> 00:14:38,720 Speaker 1: cannot add any more fuel to this inflation fire. What 282 00:14:38,760 --> 00:14:42,440 Speaker 1: does that say to you? Well, I think he's aligning, Um, 283 00:14:42,600 --> 00:14:45,480 Speaker 1: what what ma was saying that people need to do, 284 00:14:45,520 --> 00:14:48,080 Speaker 1: which is actually spend less money, with what he wants 285 00:14:48,120 --> 00:14:50,640 Speaker 1: to do in government, which is actually spend less money. 286 00:14:50,720 --> 00:14:53,000 Speaker 1: And so how can you ask the American public to 287 00:14:53,040 --> 00:14:55,360 Speaker 1: do something that you're not willing to do yourself. Does 288 00:14:55,400 --> 00:14:57,240 Speaker 1: that make a call for the legislation that he's been 289 00:14:57,240 --> 00:15:00,440 Speaker 1: talking about with Chuck Schumer though, to have deficit reduction, 290 00:15:00,480 --> 00:15:02,760 Speaker 1: to have lower drug prices. Was that an argument for 291 00:15:02,840 --> 00:15:04,480 Speaker 1: it or against it? I guess is my question? Well, 292 00:15:04,480 --> 00:15:06,240 Speaker 1: as long as he raises revenue, and of course he 293 00:15:06,360 --> 00:15:09,040 Speaker 1: you know, he has a plan to raise taxes potentially 294 00:15:09,080 --> 00:15:12,000 Speaker 1: to to pay for that. And that's my McGinniss point. Look, 295 00:15:12,160 --> 00:15:14,240 Speaker 1: you don't want to just you know, write blank checks 296 00:15:14,280 --> 00:15:16,520 Speaker 1: from the federal reserve to pay for government. You want 297 00:15:16,520 --> 00:15:19,600 Speaker 1: to actually take it out of existing funds and and 298 00:15:19,640 --> 00:15:22,520 Speaker 1: so or raise new revenue. I can't imagine it's a 299 00:15:22,520 --> 00:15:26,640 Speaker 1: good idea to start taxing people right before a ripe 300 00:15:26,680 --> 00:15:28,960 Speaker 1: for an election, and and and it's not like they 301 00:15:28,960 --> 00:15:31,040 Speaker 1: haven't spent a lot of money already. I mean, I'm 302 00:15:31,080 --> 00:15:33,280 Speaker 1: sensitive to the need to fix some of these problems 303 00:15:33,280 --> 00:15:35,720 Speaker 1: that government has, but this has been a big check 304 00:15:35,760 --> 00:15:37,880 Speaker 1: writing Congress, and I'm sure they're starting to feel a 305 00:15:37,920 --> 00:15:40,840 Speaker 1: pinch if you're a Democrat right now, Jennie, And and 306 00:15:40,880 --> 00:15:43,440 Speaker 1: that's the side of the aisle you're coming from. How 307 00:15:43,480 --> 00:15:46,800 Speaker 1: important is this versus getting this a bipart is an 308 00:15:46,840 --> 00:15:49,440 Speaker 1: effort done on the China Competes bill, getting the chip 309 00:15:49,440 --> 00:15:52,080 Speaker 1: back passed, which we've been told for well a year 310 00:15:52,120 --> 00:15:54,440 Speaker 1: now that that was a way to lower inflation to 311 00:15:54,480 --> 00:15:58,480 Speaker 1: start making semiconductors here in the US. It's critically important, 312 00:15:58,480 --> 00:16:00,280 Speaker 1: and I have to say, on a pause of no, 313 00:16:00,560 --> 00:16:04,080 Speaker 1: I think Secretary of Commerce Gina Romando has been so 314 00:16:04,200 --> 00:16:06,960 Speaker 1: on top of this and pushing for the bill, and 315 00:16:07,000 --> 00:16:09,400 Speaker 1: I think they are right, as is Chuck Schumer, to 316 00:16:09,440 --> 00:16:12,000 Speaker 1: talk about it from the perspective of national security. I 317 00:16:12,000 --> 00:16:14,440 Speaker 1: think that's the way to keep some of those Republicans 318 00:16:14,440 --> 00:16:17,000 Speaker 1: who may be tempted to drop off this thing. But 319 00:16:17,320 --> 00:16:20,280 Speaker 1: it is still going to be difficult at fifty two 320 00:16:20,520 --> 00:16:23,200 Speaker 1: to get that done. But I do think on that point, 321 00:16:23,760 --> 00:16:25,960 Speaker 1: Gina Romando is sort of leaving the charge for the 322 00:16:26,000 --> 00:16:29,600 Speaker 1: Cabinet and the administration. And you know, my bet would 323 00:16:29,600 --> 00:16:31,600 Speaker 1: be if they can get something, it would be on 324 00:16:31,640 --> 00:16:34,080 Speaker 1: the Chips bill because you're more likely to be able 325 00:16:34,160 --> 00:16:36,680 Speaker 1: to make the choice. Though that's what Democrats might be facing. 326 00:16:36,720 --> 00:16:38,400 Speaker 1: You might have to choose between the two. And I 327 00:16:38,440 --> 00:16:41,000 Speaker 1: have to admit the conversation with Gina Romando hasn't changed 328 00:16:41,000 --> 00:16:43,560 Speaker 1: a lot in the last six months. No, it hasn't. 329 00:16:43,600 --> 00:16:45,880 Speaker 1: And you know, if they're if they have to choose, 330 00:16:45,920 --> 00:16:47,760 Speaker 1: I think this is where the difficulty is because I 331 00:16:47,760 --> 00:16:50,520 Speaker 1: think many Democrats want to go with that reconciliation. They 332 00:16:50,560 --> 00:16:52,920 Speaker 1: want both, but if they have to choose, they're probably 333 00:16:52,920 --> 00:16:55,120 Speaker 1: going to go reconciliation, and that's going to leave the 334 00:16:55,160 --> 00:16:58,600 Speaker 1: American public probably with neither. Joe Biden wants that prescription 335 00:16:58,680 --> 00:17:01,320 Speaker 1: drug plan. He wants to say he lowered the deficit. Rick, 336 00:17:01,400 --> 00:17:03,160 Speaker 1: That's is that better for him than saying we're going 337 00:17:03,200 --> 00:17:07,240 Speaker 1: to start investing in computer chips here in places like Ohio. Yeah. 338 00:17:07,280 --> 00:17:09,520 Speaker 1: I don't think it's a binary decision. I mean, like, 339 00:17:09,600 --> 00:17:12,040 Speaker 1: the House could take up the Senate bill on the 340 00:17:12,119 --> 00:17:15,080 Speaker 1: Chips Act fifty two billion dollars and pass it tomorrow 341 00:17:15,119 --> 00:17:16,520 Speaker 1: and he could be signing it on the day he 342 00:17:16,560 --> 00:17:24,040 Speaker 1: gets back, that's how easy that is, and then reconciliation exactly. Well, 343 00:17:24,040 --> 00:17:26,480 Speaker 1: so how come he doesn't. Someone's got to say that though, 344 00:17:26,880 --> 00:17:29,040 Speaker 1: you know, beyond Rick Davis on this program, I mean, 345 00:17:29,040 --> 00:17:31,000 Speaker 1: you've got a couple of House members who are arguing, oh, 346 00:17:31,000 --> 00:17:32,639 Speaker 1: I've got some things I want to change. Well, that 347 00:17:32,680 --> 00:17:35,080 Speaker 1: blows the whole deal. So just suck it up. It 348 00:17:35,119 --> 00:17:38,520 Speaker 1: was a bipartisan bill. Republicans and Democrats pass that in 349 00:17:38,560 --> 00:17:41,479 Speaker 1: the Senate and that in the House. Would be nuts 350 00:17:41,520 --> 00:17:44,000 Speaker 1: not to take that up tomorrow and pass it. One thing, 351 00:17:44,040 --> 00:17:47,120 Speaker 1: it sounds like you agree, both of you with miamc Ginnison, though, 352 00:17:47,160 --> 00:17:49,480 Speaker 1: is the store is not closed. More things could in 353 00:17:49,560 --> 00:17:52,840 Speaker 1: fact come from this Congress before the end of summer. 354 00:17:54,040 --> 00:17:56,640 Speaker 1: Our signature panel, Rick Davis, Jeannie Chanzan will be back 355 00:17:56,720 --> 00:17:59,359 Speaker 1: there with us for the hour. As we turned next 356 00:18:00,040 --> 00:18:03,680 Speaker 1: to the trip abroad, President Biden has landed. We'll be 357 00:18:03,760 --> 00:18:07,280 Speaker 1: joined ahead by Congresswoman Abigail Spanberg where the Foreign Affairs Committee, 358 00:18:07,320 --> 00:18:11,480 Speaker 1: This is Bloomberdon. President Biden's trip to the Middle East 359 00:18:11,600 --> 00:18:15,400 Speaker 1: gets underway with all the pomp and circumstance you would expect. 360 00:18:20,600 --> 00:18:24,480 Speaker 1: Here we go. They gave him the treatment the red carpet, 361 00:18:24,560 --> 00:18:29,000 Speaker 1: the color guard, the band, of course, the leadership with 362 00:18:29,080 --> 00:18:33,080 Speaker 1: him there on the tar match Air Force One park 363 00:18:33,200 --> 00:18:36,359 Speaker 1: behind them. They did a nice ceremony in what looked 364 00:18:36,400 --> 00:18:40,560 Speaker 1: like very hot sun, and the President spoke into the 365 00:18:40,600 --> 00:18:45,200 Speaker 1: sun standing outdoors there about the relationship here between our 366 00:18:45,280 --> 00:18:49,920 Speaker 1: two nations series now Israel and the United States continue 367 00:18:49,960 --> 00:18:53,879 Speaker 1: to grow and prosper together for the benefit of the 368 00:18:54,119 --> 00:18:57,000 Speaker 1: entire world. Went on to say that he supports a 369 00:18:57,040 --> 00:18:59,520 Speaker 1: two state solution, knowing that that's not in the offing 370 00:18:59,560 --> 00:19:01,919 Speaker 1: on this trip, and of course he's not spending the 371 00:19:01,960 --> 00:19:05,400 Speaker 1: whole time in Israel. He will go to the West Bank, 372 00:19:05,440 --> 00:19:09,600 Speaker 1: and then he's onto Saudi Arabia. That's going to be 373 00:19:09,640 --> 00:19:11,760 Speaker 1: the big one on Friday. As we've discussed, the meeting 374 00:19:11,760 --> 00:19:14,399 Speaker 1: with MBS, the ask for oil and so forth. But 375 00:19:15,280 --> 00:19:18,679 Speaker 1: security has become a big part of this conversation, at 376 00:19:18,760 --> 00:19:20,960 Speaker 1: least around this trip, whether you believe that's why he's 377 00:19:21,000 --> 00:19:25,800 Speaker 1: going or not. Diplomacy, and you could see security through 378 00:19:26,600 --> 00:19:29,160 Speaker 1: the guys of energy here, right. We talk about energy 379 00:19:29,240 --> 00:19:32,359 Speaker 1: security all the time, So is that more of what 380 00:19:32,400 --> 00:19:34,480 Speaker 1: we're talking about in these statements. The op ed from 381 00:19:34,480 --> 00:19:37,280 Speaker 1: the President's statements from the White House. Jake Sullivan were 382 00:19:37,280 --> 00:19:41,240 Speaker 1: there for security. This is where we begin the conversation. 383 00:19:41,280 --> 00:19:44,320 Speaker 1: I'm curious to hear what the congresswoman has to say. 384 00:19:44,560 --> 00:19:48,760 Speaker 1: Abigail Spanburger, of course, democrat from Virginia, service on the 385 00:19:48,800 --> 00:19:52,960 Speaker 1: House Foreign Affairs Committee and is with us now for 386 00:19:53,080 --> 00:19:55,920 Speaker 1: more on this. Congresswoman, welcome back. Thank you so much 387 00:19:55,920 --> 00:19:58,000 Speaker 1: for having me join you. Much has been said about 388 00:19:58,000 --> 00:20:00,359 Speaker 1: the president's trip to the Middle East here, and as 389 00:20:00,400 --> 00:20:02,280 Speaker 1: a member of the House Foreign Affairs Committee and a 390 00:20:02,280 --> 00:20:04,840 Speaker 1: former CIA officer, I know you have a unique view 391 00:20:05,359 --> 00:20:07,520 Speaker 1: on that part of the world. The President says this 392 00:20:07,560 --> 00:20:10,879 Speaker 1: trip is about security. His critics say it's about getting 393 00:20:10,880 --> 00:20:14,360 Speaker 1: more oil. But are they the same thing. I think 394 00:20:14,359 --> 00:20:17,639 Speaker 1: that's a complicated question. I think that one could make 395 00:20:17,640 --> 00:20:20,480 Speaker 1: an argument either way. Notably, what's important is when the 396 00:20:20,480 --> 00:20:23,200 Speaker 1: President is traveling throughout the Middle East, or in Saudi 397 00:20:23,240 --> 00:20:28,240 Speaker 1: Arabia specifically, he has to He must advocate for American values. 398 00:20:28,280 --> 00:20:31,600 Speaker 1: He must raise the issue of Jamal Kashok's murder. He 399 00:20:31,760 --> 00:20:36,959 Speaker 1: must continue to ensure that we have strong expectations of 400 00:20:37,000 --> 00:20:40,280 Speaker 1: what our Saudi partners are or are not bringing to 401 00:20:40,280 --> 00:20:44,200 Speaker 1: the table, whether they are or are not. Um meeting 402 00:20:44,240 --> 00:20:47,840 Speaker 1: the expectations that we have in terms of the values 403 00:20:47,880 --> 00:20:53,199 Speaker 1: that they UM are abiding. Notably, as a former CIA officer, 404 00:20:53,320 --> 00:20:56,000 Speaker 1: I know that they have been important partner partners in 405 00:20:56,080 --> 00:21:00,520 Speaker 1: our counter terrorism work throughout the Middle East and beyond. UH. 406 00:21:00,560 --> 00:21:04,399 Speaker 1: And so, certainly, when we're saying it's about national security, yes, 407 00:21:04,480 --> 00:21:08,280 Speaker 1: it's about ensuring that LEE continue to have a strong voice, 408 00:21:08,359 --> 00:21:10,639 Speaker 1: a strong relationship with the Saudis, but one where we 409 00:21:10,680 --> 00:21:17,639 Speaker 1: do demand UH certain expectations of behavior and UH engagement 410 00:21:17,640 --> 00:21:19,920 Speaker 1: on the world stage. Well, what deliverables are you looking 411 00:21:19,920 --> 00:21:23,040 Speaker 1: for in terms of energy and diplomacy of bringing the Saudis, 412 00:21:23,080 --> 00:21:25,320 Speaker 1: for instance, into the Abraham Accords. Is that the kind 413 00:21:25,320 --> 00:21:28,159 Speaker 1: of announcement that Americans should look forward to at the 414 00:21:28,240 --> 00:21:31,159 Speaker 1: end of the week. UH. So, I think that that 415 00:21:31,200 --> 00:21:33,480 Speaker 1: would be an extraordinary announcement if that's one that is 416 00:21:33,520 --> 00:21:37,000 Speaker 1: able to be made. UH. Certainly, the Abraham Accord has 417 00:21:37,200 --> 00:21:40,600 Speaker 1: done so much for the normalization of some relationships within 418 00:21:40,640 --> 00:21:43,119 Speaker 1: the Middle East. It's they have been an important step 419 00:21:43,160 --> 00:21:47,080 Speaker 1: forward for the safety and security of our friends and allies, 420 00:21:47,160 --> 00:21:50,800 Speaker 1: the Israelis within the region. And it's also been important 421 00:21:50,800 --> 00:21:55,040 Speaker 1: from an economic standpoint, bringing economic engagement and with it 422 00:21:55,520 --> 00:22:01,679 Speaker 1: UH certain expectations for um UH democratic values to some 423 00:22:01,880 --> 00:22:05,320 Speaker 1: area some countries within the region. So if if we 424 00:22:05,400 --> 00:22:07,880 Speaker 1: do see movement towards that sort of agreement, I think 425 00:22:07,880 --> 00:22:11,400 Speaker 1: that would be an extraordinary. President Biden today made clear 426 00:22:11,440 --> 00:22:13,680 Speaker 1: he supports a two state solution. Some of the first 427 00:22:13,680 --> 00:22:16,240 Speaker 1: words out of his mouth as he arrived on the tarmac, 428 00:22:16,320 --> 00:22:19,640 Speaker 1: do you congresswoman as well? I absolutely support a two 429 00:22:19,640 --> 00:22:23,480 Speaker 1: state solution. He also indicated that that's a long way off. 430 00:22:23,560 --> 00:22:25,199 Speaker 1: Is there any point in talking about it as he 431 00:22:25,240 --> 00:22:28,240 Speaker 1: prepares to sit down with the Saudis. No, I think 432 00:22:28,240 --> 00:22:31,560 Speaker 1: it's important to continue to demonstrate and be very clear 433 00:22:31,720 --> 00:22:35,000 Speaker 1: in what one's goals are. We may view that we 434 00:22:35,080 --> 00:22:38,439 Speaker 1: are many paces away from a two state solution, but 435 00:22:39,400 --> 00:22:43,000 Speaker 1: it doesn't remove the necessity that we continue to advocate 436 00:22:43,040 --> 00:22:45,760 Speaker 1: for a two state solution, that we continue to demonstrate 437 00:22:46,480 --> 00:22:49,720 Speaker 1: through our discussions, through our policy, through the priority objectives, 438 00:22:49,760 --> 00:22:52,160 Speaker 1: and through our discussions with anyone in the region, being 439 00:22:52,320 --> 00:22:55,560 Speaker 1: Israelis or otherwise, that a two state solution is one 440 00:22:55,600 --> 00:22:59,240 Speaker 1: that we continue to advocate for as a country. President 441 00:22:59,240 --> 00:23:01,600 Speaker 1: made some news this more ring in an interview conducted 442 00:23:01,640 --> 00:23:04,159 Speaker 1: by Israeli media, saying that he's committed to keeping the 443 00:23:04,160 --> 00:23:08,680 Speaker 1: Iranian Revolutionary Guard on the list of foreign terror organizations, 444 00:23:08,760 --> 00:23:12,480 Speaker 1: even if it means no Iranian nuclear deal. Do you 445 00:23:12,520 --> 00:23:16,480 Speaker 1: support that? As he right on that absolutely, we should 446 00:23:16,560 --> 00:23:19,600 Speaker 1: not be removing the i r g C from the 447 00:23:19,680 --> 00:23:23,280 Speaker 1: Terror Watch or the Terror listent in agreement with him 448 00:23:23,280 --> 00:23:25,800 Speaker 1: on that. It's interesting some of the lines that are 449 00:23:25,800 --> 00:23:28,560 Speaker 1: being drawn right now as he prepares to talk with MBS. 450 00:23:28,640 --> 00:23:32,480 Speaker 1: We understand that Vladimir Putin, for instance, is headed to Iran. 451 00:23:32,680 --> 00:23:35,280 Speaker 1: Iran is going to be providing Russia with drones for 452 00:23:35,440 --> 00:23:40,400 Speaker 1: use in Ukraine. Are we entering a world order where 453 00:23:40,440 --> 00:23:43,800 Speaker 1: we've got this sort of axis and maybe you see 454 00:23:43,800 --> 00:23:46,640 Speaker 1: it already in place between Iran and Russia, and then 455 00:23:46,640 --> 00:23:50,000 Speaker 1: you'll have Israel, the United States, Saudi Arabia on the 456 00:23:50,040 --> 00:23:54,080 Speaker 1: other side. I think we are seeing uh an alignment 457 00:23:54,359 --> 00:23:57,000 Speaker 1: of countries, and I think that this is incredibly important, 458 00:23:57,000 --> 00:23:59,760 Speaker 1: whether or not we, you know, want to call it 459 00:23:59,480 --> 00:24:02,080 Speaker 1: with some level of finality, this is a new world order. 460 00:24:02,200 --> 00:24:05,800 Speaker 1: I think it's most appropriator, or perhaps a kind of 461 00:24:06,400 --> 00:24:09,240 Speaker 1: most beneficial for the way that we interpret the threats 462 00:24:09,240 --> 00:24:12,440 Speaker 1: that exist or the partnerships that exists. For us to 463 00:24:12,520 --> 00:24:15,560 Speaker 1: recognize that we are seeing an orienting of certain countries 464 00:24:15,600 --> 00:24:19,680 Speaker 1: towards others. Um and. This is exactly why US global 465 00:24:19,760 --> 00:24:23,080 Speaker 1: leadership is important. This is why our strengthened relationships with 466 00:24:23,160 --> 00:24:29,560 Speaker 1: NATO are important. This is why UM US recognizing the 467 00:24:29,600 --> 00:24:34,040 Speaker 1: importance of moving away from dependence on UH, the oil 468 00:24:34,119 --> 00:24:39,240 Speaker 1: produced in in in certain UH you know, petrol driven 469 00:24:39,440 --> 00:24:42,879 Speaker 1: regimes is important. Um And, so I think that we 470 00:24:42,880 --> 00:24:46,600 Speaker 1: should always be very clear on who's aligning themselves with 471 00:24:46,640 --> 00:24:49,080 Speaker 1: whom on the world stage. Um And. This is also 472 00:24:49,200 --> 00:24:51,680 Speaker 1: a reason why the United States that needs to continue 473 00:24:52,480 --> 00:24:58,159 Speaker 1: galvanizing support for organizations such as NATO, while the United 474 00:24:58,200 --> 00:25:00,800 Speaker 1: States needs to look within our own in hemisphere for 475 00:25:00,920 --> 00:25:05,040 Speaker 1: greater partnerships economic and political, so that we can continue 476 00:25:05,960 --> 00:25:09,560 Speaker 1: to ensure that that we are aligned very very clearly 477 00:25:10,040 --> 00:25:13,600 Speaker 1: with democratic nations the worldwide UH and then in fact 478 00:25:13,680 --> 00:25:15,560 Speaker 1: that's the club that other countries want to be a 479 00:25:15,600 --> 00:25:19,000 Speaker 1: part of. More broadly, Congresswoman, when we look at this 480 00:25:19,040 --> 00:25:22,560 Speaker 1: trip and the conversation that preceded it, including the president's 481 00:25:22,560 --> 00:25:25,639 Speaker 1: op ed, the idea of him asking for more oil, 482 00:25:25,680 --> 00:25:28,840 Speaker 1: the concerns that some have with what he might be 483 00:25:28,920 --> 00:25:31,800 Speaker 1: able to do here to help lower gas prices or 484 00:25:31,880 --> 00:25:34,879 Speaker 1: expectations simply too high to be able to make this 485 00:25:34,960 --> 00:25:38,600 Speaker 1: a success. I think that it's important to have clear 486 00:25:38,680 --> 00:25:41,359 Speaker 1: goals and and even if they are kind of a 487 00:25:41,400 --> 00:25:47,720 Speaker 1: starting point for expectations or negotiations, I think that's that's fair. Certainly. 488 00:25:47,760 --> 00:25:50,399 Speaker 1: I have long held, as have many members of Congress, 489 00:25:50,440 --> 00:25:54,679 Speaker 1: great concern about Saudi engagement within Yemen UM and the 490 00:25:54,760 --> 00:25:58,520 Speaker 1: ongoing atrocities that we see occurring there. So I do 491 00:25:58,600 --> 00:26:01,440 Speaker 1: hope and expect that the President will again make clear 492 00:26:02,040 --> 00:26:04,960 Speaker 1: UH to his Saudi counterparts, to anyone that he may 493 00:26:05,200 --> 00:26:09,200 Speaker 1: meet with the expectations that the United States holds UH 494 00:26:09,240 --> 00:26:13,639 Speaker 1: for Saudi Ribby to be a responsible UM UH you know, 495 00:26:13,960 --> 00:26:16,080 Speaker 1: actor on the world stage in terms of how it 496 00:26:16,160 --> 00:26:19,639 Speaker 1: is that they choose to engage economically, so not locking 497 00:26:19,680 --> 00:26:25,080 Speaker 1: down UM oil production that is important to global markets, 498 00:26:25,080 --> 00:26:30,879 Speaker 1: and also importantly not UH continuing UH to support UH 499 00:26:31,480 --> 00:26:35,600 Speaker 1: international UM atrocities as as the like those that we've 500 00:26:35,600 --> 00:26:38,320 Speaker 1: seen in Yemen. Do you expect to see gas prices 501 00:26:38,359 --> 00:26:41,240 Speaker 1: drop as a result of this trip UM? I think 502 00:26:41,240 --> 00:26:44,520 Speaker 1: that's a couple of steps ahead of what I'm willing 503 00:26:44,560 --> 00:26:46,679 Speaker 1: to declare as an eventuality. I do think that in 504 00:26:46,720 --> 00:26:49,400 Speaker 1: the House. You know, we've passed good legislation, the Lower 505 00:26:49,440 --> 00:26:52,480 Speaker 1: Food and Fuel Costs Act. Uh. Certainly we are taking 506 00:26:52,480 --> 00:26:54,800 Speaker 1: it all of above approach at trying to bring down 507 00:26:54,800 --> 00:26:58,240 Speaker 1: the cost of gas UM and certainly directionally we've seen 508 00:26:58,320 --> 00:27:02,280 Speaker 1: some progress. Uh though given uh the inflation numbers that 509 00:27:02,320 --> 00:27:06,520 Speaker 1: Americans continue to experience, that's that's not yet anywhere close 510 00:27:07,160 --> 00:27:10,320 Speaker 1: to being a point of celebration. But UM, I appreciate 511 00:27:10,400 --> 00:27:13,119 Speaker 1: that the administration continues to be focused on this issue. 512 00:27:13,160 --> 00:27:16,200 Speaker 1: And certainly, I think as evidenced by our recent votes 513 00:27:16,840 --> 00:27:21,960 Speaker 1: UM supporting biofuel, supporting us in all um and UH 514 00:27:22,000 --> 00:27:23,639 Speaker 1: the bills that we've put forth in the House and 515 00:27:23,720 --> 00:27:27,520 Speaker 1: pass in the House with bipartisan support. We're also working 516 00:27:27,520 --> 00:27:30,280 Speaker 1: in tandem to to take strong steps forward. And with 517 00:27:30,359 --> 00:27:32,840 Speaker 1: all of that said, gosh knows we're hearing about inflation 518 00:27:32,880 --> 00:27:35,639 Speaker 1: every day, Congressman, when you're preparing for mid term elections. 519 00:27:36,160 --> 00:27:39,320 Speaker 1: Is the president an asset or a liability? Considering the 520 00:27:39,400 --> 00:27:42,399 Speaker 1: environment that we're in for a Democrat running for re election? 521 00:27:43,280 --> 00:27:46,600 Speaker 1: So you know, in my rates, I have a record. 522 00:27:46,640 --> 00:27:51,080 Speaker 1: I've been in office now for almost two terms. I 523 00:27:51,160 --> 00:27:55,639 Speaker 1: have worked uh aggressively on issues that matter to the 524 00:27:55,640 --> 00:27:58,760 Speaker 1: people I represent, be it related to agriculture issues and 525 00:27:59,560 --> 00:28:03,040 Speaker 1: UH monopolistic behavior within the meat processing industry, lowering the 526 00:28:03,080 --> 00:28:07,440 Speaker 1: cost of prescription drugs, focus on veterans issues, toxic exposures, 527 00:28:07,960 --> 00:28:11,080 Speaker 1: UH infrastructure of course, which is a major and important 528 00:28:11,119 --> 00:28:14,679 Speaker 1: issue within my district. UM. And so I am out 529 00:28:14,840 --> 00:28:18,320 Speaker 1: on the campaign trail making sure that my constituents, current 530 00:28:18,359 --> 00:28:21,760 Speaker 1: and future recognize what it is that I've done. I'm 531 00:28:21,800 --> 00:28:23,800 Speaker 1: meeting people, making sure that they know who I am, 532 00:28:23,800 --> 00:28:25,480 Speaker 1: what my background is, what it is that I bring 533 00:28:25,800 --> 00:28:28,240 Speaker 1: to my work on Capitol Hill end in the district, 534 00:28:28,280 --> 00:28:31,040 Speaker 1: and why I'm asking to be re elected to continue 535 00:28:31,040 --> 00:28:33,240 Speaker 1: that service. Would you bring Joe Biden with you though 536 00:28:34,320 --> 00:28:36,840 Speaker 1: along the campaign trail, as you know, at this point, 537 00:28:36,880 --> 00:28:39,760 Speaker 1: I'm I'm out there meeting people individually. UM. You know, 538 00:28:39,840 --> 00:28:42,880 Speaker 1: I was very happy to invite the President to come 539 00:28:42,920 --> 00:28:46,000 Speaker 1: to my district to meet my instituents, to talk about 540 00:28:46,000 --> 00:28:51,440 Speaker 1: prescription drug prices, UM, to give my constitution, my constituency 541 00:28:51,520 --> 00:28:54,480 Speaker 1: opportunity to speak directly to the leader of the free 542 00:28:54,480 --> 00:28:56,640 Speaker 1: world and say, this is what the cost of insulin 543 00:28:56,680 --> 00:28:59,240 Speaker 1: means to me, this is what the cost of my 544 00:28:59,240 --> 00:29:02,120 Speaker 1: prescription drug means to my family. UM. And that's the 545 00:29:02,160 --> 00:29:05,000 Speaker 1: type of advocacy that I will always do. And that's 546 00:29:05,080 --> 00:29:08,080 Speaker 1: you know, outside of politics, that's just policy making sure 547 00:29:08,120 --> 00:29:10,880 Speaker 1: that if I have the chance, uh to give any 548 00:29:10,920 --> 00:29:13,920 Speaker 1: constituent the ability to speak with the leader of the 549 00:29:13,920 --> 00:29:15,920 Speaker 1: free world, that I'm going to do that. Um. And 550 00:29:15,960 --> 00:29:18,560 Speaker 1: on the campaign trail, I'm I'm run around making sure 551 00:29:18,560 --> 00:29:21,160 Speaker 1: people know who I am, how to vote, when to vote, 552 00:29:21,240 --> 00:29:23,120 Speaker 1: and why they should vote for me. That was an 553 00:29:23,160 --> 00:29:25,720 Speaker 1: incredibly effective answer. I don't know how you did that, 554 00:29:25,760 --> 00:29:27,440 Speaker 1: but I'm still going to be thinking about it later. 555 00:29:27,440 --> 00:29:30,680 Speaker 1: Congresswoman Abigail Spanburger, thank you for being with us once 556 00:29:30,720 --> 00:29:33,040 Speaker 1: again on Bloomberg. Thank you for having me. I really 557 00:29:33,080 --> 00:29:36,840 Speaker 1: appreciate it. We'll reassemble the panel next n Chanzano and 558 00:29:36,920 --> 00:29:39,000 Speaker 1: Rick Davis their take on the trip here, the way 559 00:29:39,040 --> 00:29:42,280 Speaker 1: it's starting, and what we should expect later on this week. 560 00:29:42,520 --> 00:29:44,560 Speaker 1: Thanks for being with us here on Bloomberg. Sound on 561 00:29:44,600 --> 00:29:47,120 Speaker 1: as we reassemble the panel here and picking up where 562 00:29:47,120 --> 00:29:50,360 Speaker 1: we left off with Congresswoman Spanburger here, the President on 563 00:29:50,400 --> 00:29:53,600 Speaker 1: the tarmac, on the red carpet reaches for the two 564 00:29:53,600 --> 00:29:56,200 Speaker 1: state solution, and you'll have to listen to the language 565 00:29:56,200 --> 00:29:59,120 Speaker 1: that he used because he's not expecting this obviously to 566 00:29:59,160 --> 00:30:02,240 Speaker 1: take place tomorrow, but it is part of the conversation 567 00:30:02,280 --> 00:30:06,920 Speaker 1: on this trip. Here's the President Biden. Greater face, greatest stability, 568 00:30:07,680 --> 00:30:12,120 Speaker 1: greater connection. It's critical. It's critical, if I might add, 569 00:30:12,120 --> 00:30:17,680 Speaker 1: for all the people of the region, which is why 570 00:30:17,960 --> 00:30:22,960 Speaker 1: we'll be we'll discuss my continued support, even though I 571 00:30:23,000 --> 00:30:25,360 Speaker 1: know it's not in air term and two state solution 572 00:30:26,680 --> 00:30:28,760 Speaker 1: that remains. It might be the best way to ensure 573 00:30:28,800 --> 00:30:32,920 Speaker 1: the future of equal measure of freedom, prosperity and democracy 574 00:30:33,080 --> 00:30:36,880 Speaker 1: for Israelis and Palestinians. A life sounds a day from 575 00:30:36,920 --> 00:30:39,720 Speaker 1: the arrival ceremony and hell aviv Rick Davis and Jeanne 576 00:30:39,800 --> 00:30:44,479 Speaker 1: Chanzano or with this Bloomberg Politics contributors, Rick, is it 577 00:30:44,520 --> 00:30:47,760 Speaker 1: important for him to restate this as he begins talks. 578 00:30:47,800 --> 00:30:49,880 Speaker 1: He had just arrived, of course at this point, and 579 00:30:50,760 --> 00:30:52,920 Speaker 1: you've talked a little bit about the idea of bringing 580 00:30:52,960 --> 00:30:55,720 Speaker 1: Saudi Arabia, for instance, into the Abraham Accords. Is that 581 00:30:55,800 --> 00:30:58,760 Speaker 1: the way to get there? Look, I think that um, 582 00:30:58,960 --> 00:31:02,479 Speaker 1: the Palestinians had hard slog during the Trump administration. You know, 583 00:31:02,560 --> 00:31:06,680 Speaker 1: the two state solution was dead within his administration, and 584 00:31:06,880 --> 00:31:09,480 Speaker 1: so I think that that Biden was under a lot 585 00:31:09,480 --> 00:31:11,600 Speaker 1: of pressure to sort of get that back on the 586 00:31:11,640 --> 00:31:16,360 Speaker 1: table officially as president, and uh, it's been a constant 587 00:31:16,440 --> 00:31:22,120 Speaker 1: within the Democratic parties, um, you know, uh policy reviews 588 00:31:22,200 --> 00:31:24,479 Speaker 1: for the region. So he did what he had to do, 589 00:31:24,520 --> 00:31:26,320 Speaker 1: but he was not going to get into the slippery 590 00:31:26,320 --> 00:31:27,840 Speaker 1: slope of being the guy who's going to try and 591 00:31:27,840 --> 00:31:29,760 Speaker 1: deliver it. He had eight years that he watched it 592 00:31:29,800 --> 00:31:33,000 Speaker 1: happen in the Obama administration and he made no progress 593 00:31:33,040 --> 00:31:34,880 Speaker 1: on it. And I'm sure he does not want to 594 00:31:34,880 --> 00:31:37,720 Speaker 1: attach his wagon to that policy that sting. He went 595 00:31:37,760 --> 00:31:40,200 Speaker 1: out of his way to say, uh that, you know, 596 00:31:40,360 --> 00:31:43,080 Speaker 1: even though it's not in the near turn Genie. I 597 00:31:43,080 --> 00:31:44,760 Speaker 1: don't know if that was in the speech or now, 598 00:31:44,800 --> 00:31:47,320 Speaker 1: but he certainly said it. He did and and and 599 00:31:47,360 --> 00:31:50,000 Speaker 1: typical Joe Biden. And he's absolutely right. While he has 600 00:31:50,080 --> 00:31:52,280 Speaker 1: long supported it, and I give him credit for raising 601 00:31:52,320 --> 00:31:55,560 Speaker 1: it as soon as he gets there. Well, typical that 602 00:31:55,600 --> 00:31:57,600 Speaker 1: he says, you know, he talks about the elephant in 603 00:31:57,640 --> 00:31:59,640 Speaker 1: the room. There's no support for that on the ground. 604 00:31:59,720 --> 00:32:01,680 Speaker 1: That's the reality there. But I give him credit for 605 00:32:01,800 --> 00:32:04,480 Speaker 1: raising that, um, you know, as soon as he landed, 606 00:32:04,480 --> 00:32:07,040 Speaker 1: and I thought he did a very warm greeting with 607 00:32:07,080 --> 00:32:10,400 Speaker 1: the Israeli officials. He talked about this bone deep relationship 608 00:32:10,480 --> 00:32:13,880 Speaker 1: with Israel, and he made certain, unlike some of his predecessors, 609 00:32:13,880 --> 00:32:16,360 Speaker 1: that Israel was his first stop. It's his tenth visit 610 00:32:16,400 --> 00:32:19,640 Speaker 1: to the Middle East, but his first as president. Then 611 00:32:19,680 --> 00:32:21,760 Speaker 1: it's onto the West Bank, Rick, is it going to 612 00:32:21,840 --> 00:32:25,920 Speaker 1: be Will there be similar energy when he gets there? Yeah? Look, 613 00:32:25,960 --> 00:32:28,200 Speaker 1: I mean it'll be more negative energy, right, because the 614 00:32:28,240 --> 00:32:31,120 Speaker 1: Palestinians are gonna be looking for, you know, all kinds 615 00:32:31,120 --> 00:32:33,840 Speaker 1: of promises to make about you know, limiting the settlements 616 00:32:33,880 --> 00:32:36,040 Speaker 1: and and and that kind of thing, and trying to 617 00:32:36,080 --> 00:32:39,840 Speaker 1: get engaged in this administration open up, uh, you know, 618 00:32:40,080 --> 00:32:42,479 Speaker 1: various kinds of access points for them that have been 619 00:32:42,520 --> 00:32:45,080 Speaker 1: close since Trump. So yeah, it's gonna be a different 620 00:32:45,120 --> 00:32:48,120 Speaker 1: kind of conversation, but one worth having. Uh. And I 621 00:32:48,120 --> 00:32:51,280 Speaker 1: think for the purpose of his balance of his trip, 622 00:32:51,440 --> 00:32:54,520 Speaker 1: it is helpful to have that conversation with the Palestinian 623 00:32:54,600 --> 00:32:58,120 Speaker 1: leaders before he gets to Saudi Arabia. We'll tell you 624 00:32:58,280 --> 00:33:02,360 Speaker 1: we're talking about handshakes and body language already. This trip 625 00:33:02,480 --> 00:33:05,600 Speaker 1: is hours old, uh, Genie and Rick, I don't know 626 00:33:05,640 --> 00:33:09,440 Speaker 1: if you saw this whole handshake controversy here, we'll call 627 00:33:09,520 --> 00:33:13,040 Speaker 1: it handshake gate or fist bump gate or something. But 628 00:33:13,400 --> 00:33:16,920 Speaker 1: the President was not supposed to shake hands with the 629 00:33:16,960 --> 00:33:19,000 Speaker 1: other foreign leaders on this trip. It was said to 630 00:33:19,040 --> 00:33:21,440 Speaker 1: be a COVID precaution. He was going to be fist bumping, 631 00:33:21,440 --> 00:33:23,680 Speaker 1: and the idea was, you know, that way, he's not 632 00:33:23,720 --> 00:33:26,280 Speaker 1: holding hands or seen shaking hands with nbs. At the 633 00:33:26,360 --> 00:33:29,720 Speaker 1: end of the week, he he did fist bump Prime 634 00:33:29,760 --> 00:33:32,080 Speaker 1: Minister Lepide as he landed. But then he gives that 635 00:33:32,160 --> 00:33:35,160 Speaker 1: Benjamin Netan Yahoo a big old handshake because they've known 636 00:33:35,200 --> 00:33:37,680 Speaker 1: each other for a long time. Jeannie, I know this 637 00:33:37,720 --> 00:33:39,560 Speaker 1: isn't the most important stuff in the world, but now 638 00:33:39,560 --> 00:33:41,680 Speaker 1: he's got to shake hands when he gets to Jettah. Right, 639 00:33:42,560 --> 00:33:44,680 Speaker 1: this is the thing I've been watching, so I hope 640 00:33:44,720 --> 00:33:47,200 Speaker 1: it's important. You know. It was. I thought just a 641 00:33:47,360 --> 00:33:49,680 Speaker 1: classic when the White House announced that he would not 642 00:33:49,720 --> 00:33:52,520 Speaker 1: be handshaking because of COVID and the variants. And the 643 00:33:52,640 --> 00:33:55,360 Speaker 1: minute he got off, You're right, he fist bumps and 644 00:33:55,360 --> 00:33:57,760 Speaker 1: then he handshakes. I don't know if he forgot or 645 00:33:57,800 --> 00:34:00,400 Speaker 1: he got so excited by seeing some of these officials 646 00:34:00,440 --> 00:34:02,560 Speaker 1: that you know he shook hands. We know he likes 647 00:34:02,600 --> 00:34:05,200 Speaker 1: to rub shoulders and all kinds of things, so he's, 648 00:34:05,240 --> 00:34:07,200 Speaker 1: you know, a touchy guy. So maybe it was hard, 649 00:34:07,240 --> 00:34:10,080 Speaker 1: but there it goes. And now he has no reason 650 00:34:10,239 --> 00:34:13,640 Speaker 1: not to shake MBS his hand, and so it's going 651 00:34:13,680 --> 00:34:16,520 Speaker 1: to be fascinating to see on Friday. He's just invited 652 00:34:16,520 --> 00:34:18,640 Speaker 1: the press to watch this. Is he or is he 653 00:34:18,760 --> 00:34:21,440 Speaker 1: not going to be holding hands with MBS when he 654 00:34:21,480 --> 00:34:24,840 Speaker 1: gets there, and it's a it's or not, Rick, What 655 00:34:24,880 --> 00:34:26,880 Speaker 1: do you think? Yeah, I think it's much at two 656 00:34:26,920 --> 00:34:30,880 Speaker 1: about nothing. I mean, the initial greeting with MBS probably 657 00:34:30,880 --> 00:34:33,319 Speaker 1: won't even be on camera. My bet would be they 658 00:34:33,840 --> 00:34:36,439 Speaker 1: do it inside a palace somewhere and uh, and there'll 659 00:34:36,480 --> 00:34:39,640 Speaker 1: be a public display of the two of them. But uh, 660 00:34:39,680 --> 00:34:41,640 Speaker 1: I think it's much to do about nothing. He is 661 00:34:41,680 --> 00:34:44,719 Speaker 1: gonna go break bread with MBS. He's gonna get all 662 00:34:44,719 --> 00:34:47,560 Speaker 1: the positives and all the negatives related to that, regardless 663 00:34:47,560 --> 00:34:50,320 Speaker 1: of the bear hug or fist pump or shake hands. 664 00:34:50,480 --> 00:34:53,359 Speaker 1: I asked you guys both about deliverables yesterday. I don't 665 00:34:53,360 --> 00:34:55,160 Speaker 1: know if you feel the same way about it right now, 666 00:34:55,200 --> 00:34:59,000 Speaker 1: But does he need to have Jake Sullivan suggested he 667 00:34:59,080 --> 00:35:03,600 Speaker 1: will have a relatively specific statement to make on what 668 00:35:03,680 --> 00:35:06,239 Speaker 1: he has secured on this trip. When it comes to oil, Genie, 669 00:35:06,280 --> 00:35:08,960 Speaker 1: are we talking about you know, three million barrels a day? 670 00:35:09,000 --> 00:35:11,640 Speaker 1: What what kind of a message, what kind of a 671 00:35:11,719 --> 00:35:14,120 Speaker 1: statement has to come from this trip? Well, I mean, 672 00:35:14,120 --> 00:35:16,160 Speaker 1: I mean what they're hoping to see is that they 673 00:35:16,200 --> 00:35:18,920 Speaker 1: get something that allows them to see a decrease in 674 00:35:18,960 --> 00:35:21,600 Speaker 1: those prices, and a lot of experts saying that's not 675 00:35:21,640 --> 00:35:24,200 Speaker 1: going to happen, which is why it's your can't over promise. 676 00:35:24,920 --> 00:35:27,480 Speaker 1: You should not be over promising. And there are positive 677 00:35:27,560 --> 00:35:31,280 Speaker 1: deliverables from this trip, things about travel, things about regional 678 00:35:31,280 --> 00:35:35,279 Speaker 1: air defense, you know, the funding of Palestinian hospitals, the visit. 679 00:35:35,480 --> 00:35:37,879 Speaker 1: There are positives to talk about. You know, if they 680 00:35:37,880 --> 00:35:41,120 Speaker 1: can guarantee the oil prices, that's a great thing. Many 681 00:35:41,160 --> 00:35:43,440 Speaker 1: experts say that's going to be hard to get that 682 00:35:43,560 --> 00:35:46,000 Speaker 1: win there. In that case, it's a disappointment. Right. Does 683 00:35:46,000 --> 00:35:48,800 Speaker 1: he need to be specific, as Jake Sullivan has suggested, 684 00:35:48,920 --> 00:35:51,319 Speaker 1: he will be. Yeah. I think he wants to be right. 685 00:35:51,400 --> 00:35:53,399 Speaker 1: He wants to put something on the table that will 686 00:35:53,480 --> 00:35:57,040 Speaker 1: say that this trip was worth the cost, that he 687 00:35:57,120 --> 00:35:59,920 Speaker 1: had to take to sort of backtrack on the relationship 688 00:36:00,080 --> 00:36:03,839 Speaker 1: that he has said. You know, uh, saudis a pariah state, 689 00:36:03,960 --> 00:36:06,279 Speaker 1: So what is the trade. The trade is gonna be 690 00:36:06,440 --> 00:36:09,279 Speaker 1: lower gas prices, and and I think that's got to 691 00:36:09,360 --> 00:36:12,720 Speaker 1: be out there. No doubt NBS is gonna be willing 692 00:36:12,760 --> 00:36:15,920 Speaker 1: to participate in this. He's he's part of the beneficiary 693 00:36:15,960 --> 00:36:18,000 Speaker 1: of this visit, and I'm sure he'll go out and 694 00:36:18,000 --> 00:36:20,360 Speaker 1: say we're gonna work with O pick or lower gas prices, 695 00:36:20,360 --> 00:36:22,400 Speaker 1: that we know this is good for the global economy, 696 00:36:22,440 --> 00:36:24,520 Speaker 1: and we're gonna work with these guys. So that to 697 00:36:24,600 --> 00:36:28,440 Speaker 1: me is a message to the market. It looks like 698 00:36:28,440 --> 00:36:31,879 Speaker 1: we're gonna get our final January six committee hearing next week. 699 00:36:31,880 --> 00:36:35,359 Speaker 1: The reports now UH that the prime time event set 700 00:36:35,400 --> 00:36:38,520 Speaker 1: for Thursday of this week will happen next Thursday. We 701 00:36:38,560 --> 00:36:41,440 Speaker 1: still don't know exactly who's going to testify or how 702 00:36:41,440 --> 00:36:42,880 Speaker 1: they're going to wrap up this whole thing. But I 703 00:36:42,920 --> 00:36:44,440 Speaker 1: want to ask both of you. Got a comment that 704 00:36:44,520 --> 00:36:48,200 Speaker 1: was dropped yesterday on cable news, because it's just I 705 00:36:48,840 --> 00:36:51,680 Speaker 1: have to know what we're talking about here, and you know, 706 00:36:51,719 --> 00:36:56,320 Speaker 1: I could use your help. John Bolton on CNN talking 707 00:36:56,480 --> 00:37:01,200 Speaker 1: after yesterday's hearing about the idea of a carefully planned 708 00:37:01,360 --> 00:37:05,680 Speaker 1: coup data. He's talking to Jake Tapper. Apparently he would 709 00:37:05,760 --> 00:37:08,640 Speaker 1: know a lot about this. Listen, with all due respect, 710 00:37:09,040 --> 00:37:12,560 Speaker 1: one doesn't have to be brilliant to attempt a coup. 711 00:37:13,200 --> 00:37:15,760 Speaker 1: I disagree with that as somebody who has helped planned 712 00:37:15,800 --> 00:37:18,920 Speaker 1: coup data a lot, not here, but you know other places. 713 00:37:19,520 --> 00:37:21,319 Speaker 1: It takes a lot of work. And that's not what 714 00:37:21,360 --> 00:37:24,120 Speaker 1: he did. It was just stumbling around from one idea 715 00:37:24,200 --> 00:37:28,400 Speaker 1: to another. Ultimately he did unleash the rioters at the Capitol. 716 00:37:28,440 --> 00:37:32,479 Speaker 1: As to that, there's no doubt. Okay, I'm sorry, back 717 00:37:32,520 --> 00:37:35,799 Speaker 1: the tape up. Rick Davis, do you know anything about this? 718 00:37:35,800 --> 00:37:39,120 Speaker 1: Where was he helping to plan a coup data? This 719 00:37:39,200 --> 00:37:42,920 Speaker 1: is the former National Security Advisor. Yeah, I mean the 720 00:37:42,960 --> 00:37:45,960 Speaker 1: only one that I'm really familiar with is venez Awaye. 721 00:37:46,600 --> 00:37:48,520 Speaker 1: How well, look how well that worked out. Does that 722 00:37:48,520 --> 00:37:50,560 Speaker 1: mean the United States was getting involved in that in 723 00:37:50,600 --> 00:37:53,000 Speaker 1: a way we didn't know about or is he a 724 00:37:53,080 --> 00:37:56,480 Speaker 1: row of agent? I think we telegraph that Murduro had 725 00:37:56,520 --> 00:38:02,600 Speaker 1: to go, and we immediately endorse the presidency of somebody else, 726 00:38:02,640 --> 00:38:05,920 Speaker 1: and and and by almost definition, you know, we we 727 00:38:05,920 --> 00:38:09,480 Speaker 1: were participants in fomenting a coup. But if if John 728 00:38:09,520 --> 00:38:11,680 Speaker 1: Bolton is holding that up as a great success or 729 00:38:11,719 --> 00:38:14,959 Speaker 1: a difference, and then then January six, I would say 730 00:38:14,960 --> 00:38:18,520 Speaker 1: that he may want to find a different coup. Okay, 731 00:38:18,760 --> 00:38:22,359 Speaker 1: ever helped the plan a coup genie? I have not. 732 00:38:22,400 --> 00:38:25,400 Speaker 1: But I loved this because John Bolton was like indignant 733 00:38:25,480 --> 00:38:28,520 Speaker 1: at the fact that he was, you know, defending you know, 734 00:38:28,800 --> 00:38:31,640 Speaker 1: coup people all over the world that they are brilliant 735 00:38:31,719 --> 00:38:33,560 Speaker 1: and if you know, he won't have it, that they 736 00:38:33,560 --> 00:38:36,040 Speaker 1: will be insulted as if they could be engaging in 737 00:38:36,120 --> 00:38:38,920 Speaker 1: coups and not be brilliant. I mean it was you know, 738 00:38:39,040 --> 00:38:41,800 Speaker 1: I couldn't quite grab my head around it. And and 739 00:38:41,800 --> 00:38:43,680 Speaker 1: and one a thing for John Bolton to come out 740 00:38:43,719 --> 00:38:46,880 Speaker 1: and defend. I mean, I'm assuming you took him at 741 00:38:46,880 --> 00:38:50,080 Speaker 1: his word. Uh rick people, You know, this is why 742 00:38:50,120 --> 00:38:52,239 Speaker 1: people wonder about Washington, is you know, is he out 743 00:38:52,239 --> 00:38:54,840 Speaker 1: there working as a contractor. He was speaking in in 744 00:38:54,960 --> 00:38:57,080 Speaker 1: plural at first. You know, he's he's he's done this 745 00:38:57,120 --> 00:39:00,640 Speaker 1: type of thing before. Yeah, this is why people scratch 746 00:39:00,680 --> 00:39:04,040 Speaker 1: their head about Washington, like, who are these folks unelected? 747 00:39:04,280 --> 00:39:08,399 Speaker 1: You know, um, what are they doing with our taxpayers 748 00:39:08,480 --> 00:39:11,360 Speaker 1: dollars and uh, and it's a fair question to ask. 749 00:39:11,400 --> 00:39:14,120 Speaker 1: I think you know, John Bolton's got some splaining to 750 00:39:14,160 --> 00:39:18,000 Speaker 1: do here. Yeah. Well, I'd say it's all in the book, 751 00:39:18,040 --> 00:39:20,359 Speaker 1: but I don't think that was in the book. How 752 00:39:20,360 --> 00:39:23,480 Speaker 1: about next week? If this happens Thursday, Jennie, how do 753 00:39:23,560 --> 00:39:29,360 Speaker 1: they close this without it seeming like a fade to black? 754 00:39:29,640 --> 00:39:32,320 Speaker 1: Some of the most dramatic testimony was in the beginning 755 00:39:32,360 --> 00:39:35,400 Speaker 1: of this process. Many argued they did not connect a 756 00:39:35,400 --> 00:39:37,319 Speaker 1: lot of the dots yesterday that they were hoping to 757 00:39:37,400 --> 00:39:39,719 Speaker 1: with the Proud Boys and the oath keepers. What are 758 00:39:39,760 --> 00:39:43,080 Speaker 1: we in for? What's the final message next week? Well? 759 00:39:43,120 --> 00:39:45,399 Speaker 1: I think it is a danger. And I've heard from 760 00:39:45,440 --> 00:39:48,560 Speaker 1: several people since the hearing yesterday that they thought there 761 00:39:48,640 --> 00:39:51,799 Speaker 1: was a little bit too much of grandstanding um on 762 00:39:51,880 --> 00:39:54,520 Speaker 1: the part of some of the congress men and women, 763 00:39:54,760 --> 00:39:56,680 Speaker 1: and we need a little bit of less of that 764 00:39:56,719 --> 00:39:59,440 Speaker 1: and a little bit more of testimony. So I think 765 00:39:59,480 --> 00:40:01,640 Speaker 1: the big key is going to be do they put 766 00:40:01,680 --> 00:40:04,360 Speaker 1: out that testimony by sipolony? I think they will, But 767 00:40:04,400 --> 00:40:07,920 Speaker 1: do they have any other testimony to drop? And better yet, 768 00:40:08,040 --> 00:40:11,239 Speaker 1: live witnesses? And to your point, can they connect the 769 00:40:11,280 --> 00:40:16,160 Speaker 1: Trump administration to this, you know, effort to to overturn 770 00:40:16,280 --> 00:40:19,000 Speaker 1: the election. And you know, some people don't feel they 771 00:40:19,000 --> 00:40:21,880 Speaker 1: did a terrific job doing that yesterday. I think they 772 00:40:21,880 --> 00:40:24,520 Speaker 1: did a fairly good job. But they need to certainly 773 00:40:24,600 --> 00:40:27,440 Speaker 1: have new testimony on Thursday. They're going after that hundred 774 00:40:27,480 --> 00:40:31,000 Speaker 1: and eighty seven minutes rick that it took for for 775 00:40:31,080 --> 00:40:33,600 Speaker 1: President Trump to tell people to leave, to tell the 776 00:40:33,680 --> 00:40:36,919 Speaker 1: rioters to leave the capital. Uh, do we need new 777 00:40:37,000 --> 00:40:40,239 Speaker 1: footage or is this more about repackaging everything that we've 778 00:40:40,239 --> 00:40:44,160 Speaker 1: seen so far into some full smash video that the 779 00:40:44,200 --> 00:40:48,319 Speaker 1: former president of ABC News is helping them produce right now. Yeah, 780 00:40:48,400 --> 00:40:51,600 Speaker 1: I just I'm assuming that what they're looking for is 781 00:40:51,640 --> 00:40:55,000 Speaker 1: a smoking gun in that one eight seven minutes that 782 00:40:55,120 --> 00:40:58,799 Speaker 1: has him telling somebody, uh that they need to get 783 00:40:58,880 --> 00:41:01,640 Speaker 1: up there and bust into the place. And so they 784 00:41:01,640 --> 00:41:04,239 Speaker 1: need to have something new, Yeah, because that's that is 785 00:41:04,320 --> 00:41:07,000 Speaker 1: when the riot is happening, and and and the reason 786 00:41:07,120 --> 00:41:10,479 Speaker 1: why isn't he asking them to leave? Well, maybe maybe 787 00:41:10,560 --> 00:41:13,080 Speaker 1: the expectation is that they've got him on the record 788 00:41:13,960 --> 00:41:16,879 Speaker 1: or somebody willing to testify the fact that they were 789 00:41:16,920 --> 00:41:18,759 Speaker 1: talking to him during that period of time and he 790 00:41:18,840 --> 00:41:21,839 Speaker 1: was given the ghost sign and if they have that 791 00:41:21,840 --> 00:41:25,719 Speaker 1: that is a smoking gun, well this is gonna be 792 00:41:25,840 --> 00:41:29,040 Speaker 1: We're understanding, at least according to reports. Next Thursday will 793 00:41:29,080 --> 00:41:31,239 Speaker 1: let you know when it's actually formally scheduled, and who 794 00:41:31,280 --> 00:41:35,560 Speaker 1: knows if we'll no one advance witnesses, other information and 795 00:41:35,600 --> 00:41:39,160 Speaker 1: so forth. We will get more views, though apparently at 796 00:41:39,160 --> 00:41:42,400 Speaker 1: the Capitol Riot and the part of this documentary and 797 00:41:42,400 --> 00:41:45,680 Speaker 1: in the video tape that he's provided, Rick Davis thinks 798 00:41:45,719 --> 00:41:49,120 Speaker 1: it's always Jennie Chanzino, our signature panel on Bloomberg's sound on. 799 00:41:49,800 --> 00:41:52,040 Speaker 1: Always a pleasure to spend time talking about some of 800 00:41:52,080 --> 00:41:54,239 Speaker 1: the most important issues in our lives. That's what we 801 00:41:54,280 --> 00:41:56,600 Speaker 1: do every day here on the fastest hour in politics. 802 00:41:56,640 --> 00:42:00,200 Speaker 1: Subscribe to the podcast. If you got here late, be 803 00:42:00,239 --> 00:42:03,799 Speaker 1: ready for you every evening. I'm Joe Matthew will see 804 00:42:03,800 --> 00:42:05,360 Speaker 1: you back here tomorrow. This is Bloomberg