WEBVTT - Bloomberg Surveillance TV: August 27th, 2025

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along

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<v Speaker 2>with Lisa Bromwitz and Amrie hortert join us each day

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<v Speaker 2>for insight from the best in markets, economics, and geopolitics

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<v Speaker 2>from our global headquarters in New York City. We are

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<v Speaker 2>Eachwar percent out of Cornell right in the following. The

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<v Speaker 2>President has now declared open war on the US institutional framework,

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<v Speaker 2>which underpins the dollars dominance in global finance, as well

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<v Speaker 2>as other aspects of US financial supremacy. Each war joins

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<v Speaker 2>us now for more. Each one, Welcome back to the

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<v Speaker 2>program sir. Let's just take your line of thinking. If

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<v Speaker 2>we have declared open war on US institutions, where are

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<v Speaker 2>you seeing signs of damage?

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<v Speaker 3>So, if one thinks about, what are the key elements

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<v Speaker 3>of the institutional framework that, as I mentioned, have underpinned

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<v Speaker 3>the dollars supremacy and foreign investors trust, particularly in the

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<v Speaker 3>US financial system. It includes a system of checks and

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<v Speaker 3>balances that is institutionalized, the rule of law, and most importantly,

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<v Speaker 3>an independent central bank. Each of these elements of the

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<v Speaker 3>US institutional framework, you know, took some things during the

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<v Speaker 3>first wrong term, but during the second term, Trump is

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<v Speaker 3>really taking a hatchet to each of them. None of

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<v Speaker 3>the checks and balances, either from Congress or to some extent,

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<v Speaker 3>from the judicial system, seem to be working very well.

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<v Speaker 3>The fedce independence is really crucial, and if you emphasize

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<v Speaker 3>there is operational independence. You know, no central bank can

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<v Speaker 3>be ultimately free of political influence, because after all, it

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<v Speaker 3>has to serve the welfare of the people. But in

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<v Speaker 3>the operational decision making, you know, all evidence seems to

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<v Speaker 3>suggest that leaving the central bank alone to do its

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<v Speaker 3>job is that I think makes it most effective and credible,

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<v Speaker 3>and that's what Trump is attacking.

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<v Speaker 4>The FED said that they would abide by what the

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<v Speaker 4>court decides. I read that statement to the President live

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<v Speaker 4>in the cabinet room, and it came out and asked him,

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<v Speaker 4>would you abide by the courts? And he says, yes,

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<v Speaker 4>of course he will. So if the court decides that

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<v Speaker 4>Lisa Cook can stay. Is the damage already done or

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<v Speaker 4>do you think that Ben just bolsters the view in

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<v Speaker 4>America that we do have independent institutions.

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<v Speaker 3>Well, at the moment, I think a great deal of

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<v Speaker 3>damage has already been done, because Trump is very clear

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<v Speaker 3>that he wants to bend every institution in the US,

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<v Speaker 3>including a statutorily independent one like the Federal Reserve, to

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<v Speaker 3>his will in terms of policy making and the broader

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<v Speaker 3>elements of policy that need to line up with his desires.

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<v Speaker 3>And that's not quite You know what has helped America

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<v Speaker 3>maintain it's financial supremacy. It's a sense that everybody, including

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<v Speaker 3>the government, has to play by the rules. You know,

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<v Speaker 3>we may not like the rules, but whether you're a

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<v Speaker 3>domestic investor or foreign investor, or the very government that

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<v Speaker 3>sets the rules, you have to play by the rules.

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<v Speaker 3>And that is the element that Trump is attacking now.

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<v Speaker 3>Even a system where you have the rules very clearly

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<v Speaker 3>laid out, ultimately it is norms that matter, because you

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<v Speaker 3>cannot really write a rule that covers every eventuality, every

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<v Speaker 3>circumstance of the world. And those norms are certainly being shattered.

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<v Speaker 3>And this is I think the real concern because even

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<v Speaker 3>if Lisa Cook does stay on the board, a certain

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<v Speaker 3>red line has been crossed and has made it very

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<v Speaker 3>clear that it is loyalty to him and his policies

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<v Speaker 3>that matter is much more than technical competence, even in

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<v Speaker 3>an institution that is supposed to be largely run in

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<v Speaker 3>technocratic grounds.

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<v Speaker 4>What does happen though, if, as the DOJ said last week,

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<v Speaker 4>they're potentially going to investigate this, what happens if Governor

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<v Speaker 4>Cook is convicted of mortgage fraud? Does she belong there?

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<v Speaker 3>So this is a really ugly matter, and it is

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<v Speaker 3>going to get uglier because we are seeing that these

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<v Speaker 3>allegations seem to be swelling up without much of the

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<v Speaker 3>evidence being presented, And of course, once the evidence comes out,

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<v Speaker 3>things will become a lot clearer what the intentions were,

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<v Speaker 3>what the motives were, and, as your colleague pointed out,

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<v Speaker 3>the definition of causes very important here. Trump has argued

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<v Speaker 3>that Lisa Quick is one of the overseers of the

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<v Speaker 3>mortgage market and therefore any malfeasans or even the notion

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<v Speaker 3>of malfeasance there is enough to be considered cause for

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<v Speaker 3>firing her. But the question here is whether the real

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<v Speaker 3>cause should be in terms of her incompetence when it

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<v Speaker 3>comes to monetary policy issues, or some much deeper issue

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<v Speaker 3>of malfeasance, which certainly has not been established yet, but

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<v Speaker 3>whatever it is, it has certainly put the Fed on

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<v Speaker 3>notice that every one of its voting members it's going

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<v Speaker 3>to be subject to very careful scrutiny, which perhaps is

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<v Speaker 3>not by itself a bad thing, but in a potentially

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<v Speaker 3>very ugly way, being held to standards that certainly deviate

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<v Speaker 3>from the past.

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<v Speaker 2>Each way, I agree that this moment is ugly. I

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<v Speaker 2>would also suggest in the same way that you have

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<v Speaker 2>it's very difficult to discuss because we have hearing about

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<v Speaker 2>the allegations, but no formal legal investigation has been opened.

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<v Speaker 2>At the same time, Governor Kirk hasn't exactly denied anything

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<v Speaker 2>that's been alleged, which makes it equally as complicated each

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<v Speaker 2>wa I'm trying to understand how different this moment is

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<v Speaker 2>to a moment we had a number of years ago

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<v Speaker 2>of a financial disclosures of Federal Reserve officials who later

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<v Speaker 2>resigned themselves because it became a distraction for the institution.

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<v Speaker 2>Why do you believe this moment is different?

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<v Speaker 3>I think Lisa Cook is making a very important stand

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<v Speaker 3>because without the evidence being clearly revealed, and in the

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<v Speaker 3>case of the other federal officials, there were allegations initially,

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<v Speaker 3>but ultimately they resigned when the evidence did come out.

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<v Speaker 3>So at this stage we do not have any clear evidence. Yet,

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<v Speaker 3>we have a bunch of allegations by one Trump administration official,

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<v Speaker 3>and these have largely been intermediated through the platform x

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<v Speaker 3>So I think the real issue is whether there will

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<v Speaker 3>be a process that is enow to take its course.

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<v Speaker 3>So rather than firing on the basis of this allegation,

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<v Speaker 3>if it were if it was a situation where the

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<v Speaker 3>evidence was clearly laid out so we could all see it,

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<v Speaker 3>and then the ramifications were teased out, and then the

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<v Speaker 3>president took action, it will be a very different thing.

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<v Speaker 3>And of course the context is very important here. Trump

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<v Speaker 3>has been attacking the FED. He's already made comments about

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<v Speaker 3>Lisa Cook not having done what he thinks she and

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<v Speaker 3>other members of the FED board should have done, which

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<v Speaker 3>is to cut interest rates quite aggressively. So there seems

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<v Speaker 3>to be a mix of these allegations plus what he

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<v Speaker 3>considers malfeasance in terms of not following his policy wishes,

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<v Speaker 3>So I think that's one of the reasons why Lisa

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<v Speaker 3>Cook might be making a standard. Of course, we're still

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<v Speaker 3>agree and see how the evidence bleaves.

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<v Speaker 2>Old stay with us. More Bloomberg surveillance coming up after this.

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<v Speaker 2>The former Trump White House trade official Kate Colloquwitz right

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<v Speaker 2>in the following they expanded terrifs further weaken the prospects

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<v Speaker 2>for a near term US India trade deal, with bilateral

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<v Speaker 2>talks stored. Kate joined us now for more, Kate, welcome

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<v Speaker 2>back to the program. I think we have to start

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<v Speaker 2>from the very top blurring the lines between economics and

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<v Speaker 2>national security objectives. Can you just build on that and

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<v Speaker 2>why India is so important right now?

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<v Speaker 5>Yeah, the situation with India is at a place I

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<v Speaker 5>think none of us predicted early in the president's term.

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<v Speaker 5>You know, they had risen out of the gate really

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<v Speaker 5>as one of the first countries with which we expected

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<v Speaker 5>a trade deal. But these national security issues, particularly the

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<v Speaker 5>ongoing situation with Russia and Ukraine, have really elevated them

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<v Speaker 5>as a problem in the President's mind. And now we

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<v Speaker 5>see terror us reaching the levels of China almost the

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<v Speaker 5>highest of any country at present.

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<v Speaker 2>Okay, as you know, China still buys Russian energy, the

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<v Speaker 2>Europeans still buy Russian gas. Does consistency mats a here?

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<v Speaker 1>Well?

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<v Speaker 5>Apparently not. The President has made clear, of course, that

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<v Speaker 5>he'll go after some of these other nations with this

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<v Speaker 5>new executive order that targets buyers of Russian oil. But

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<v Speaker 5>it's very clear only one country has received the additional penalties,

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<v Speaker 5>and that's India. So hard to say that there's consistency here.

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<v Speaker 4>So where do the talks stand now we know that

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<v Speaker 4>they're basically on hold. How quickly could these two trading

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<v Speaker 4>partners coalesce and get you an agreement?

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<v Speaker 5>Well, as we've seen with other previously stuck agreements. I mean,

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<v Speaker 5>I think anything can happen if you get the two

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<v Speaker 5>leaders together. What we've seen so far, however, is that

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<v Speaker 5>India's Prime Minister, because he has his own domestic political challenges,

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<v Speaker 5>of course, is somewhat reluctant to get on the phone

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<v Speaker 5>with President Trump. As you all know, that can be

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<v Speaker 5>quite uncertain as to what the President can ask when

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<v Speaker 5>he gets on the phone with you. But I think

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<v Speaker 5>it could get unstuck if the two men get together

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<v Speaker 5>and find a pathway forward. That's what We've seen happen

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<v Speaker 5>with President Trump, and I think it could happen here

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<v Speaker 5>with India.

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<v Speaker 4>Is it going to potentially hurt India's chances given the

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<v Speaker 4>fact that Prime Minister Modi is set to have a

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<v Speaker 4>meeting and meet Shijipan in the next couple of days.

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<v Speaker 5>Well, I think that Prime Minister Modi is trying to

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<v Speaker 5>flex a little bit here and show that he has

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<v Speaker 5>other options. I'm not sure it will impact President Trump's

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<v Speaker 5>view of this. I think this still has to be

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<v Speaker 5>an issue resolved between the United States and India, and

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<v Speaker 5>it doesn't matter if the Indians bring the Chinese alongside.

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<v Speaker 5>It is hard to ignore, however, that the highest tariff

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<v Speaker 5>rates at present really are on countries aligned with China,

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<v Speaker 5>and that's China, India, and Brazil, a group of nations

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<v Speaker 5>the President has repeatedly targeted.

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<v Speaker 4>When it comes to the exemptions, though this is really

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<v Speaker 4>key the likes of Apple, which put a lot of

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<v Speaker 4>time and effort into moving their supply chain out of

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<v Speaker 4>China into India. Do you think that exemption stays.

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<v Speaker 5>Well, that exemption is not really related to India so

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<v Speaker 5>much as it is to the President's impending action on

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<v Speaker 5>semiconductors and their derivatives like the products Apple makes, So

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<v Speaker 5>that exception is really in place only until the President

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<v Speaker 5>makes that move on semi conductors, which you know the

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<v Speaker 5>White House has said is imminent. But you raise a

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<v Speaker 5>very important point, which is in the first president and

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<v Speaker 5>President Trump's first administration, a lot of companies moved from

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<v Speaker 5>China and they moved to India. So you know, we

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<v Speaker 5>could see some very dramatic consequences for those that have

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<v Speaker 5>done their manufacturing there.

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<v Speaker 2>I'm Marie just to build on some of that. Mexico

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<v Speaker 2>Canada Okay, next year, how crucial are those negotiations going

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<v Speaker 2>to be?

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<v Speaker 3>They're really important.

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<v Speaker 5>The US Mexico Canada Agreement, of course, is coming up

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<v Speaker 5>under review. This was an agreement renegotiated by the first

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<v Speaker 5>Trump administration. It's an agreement he's called the greatest trade

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<v Speaker 5>deal ever negotiated. But the truth is the North American

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<v Speaker 5>supply chain for American manufacturers is critical. It is crucial

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<v Speaker 5>in this global competition with China, with India, and I

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<v Speaker 5>think it will be very important to see that reshort

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<v Speaker 5>essentially and restabilized well.

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<v Speaker 4>When it comes to the goods that are going between

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<v Speaker 4>these borders ninety percent or USMCA compliance. They're also getting

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<v Speaker 4>this exemption when it comes to the tariff rates. What

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<v Speaker 4>does the Trump administration want to see build upon their

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<v Speaker 4>USMCA that they themselves struck when it comes to renegotiating

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<v Speaker 4>that exact trade deal.

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<v Speaker 5>Well, I think what we've seen in a number of

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<v Speaker 5>the trade frameworks is what we're going to see in

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<v Speaker 5>the USMCA negotiations, and that's to get rid of what

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<v Speaker 5>we consider transhipt goods. And again, this is to ensure

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<v Speaker 5>that Chinese inputs, Chinese goods are not somehow making their

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<v Speaker 5>way into the United States through our North American partners.

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<v Speaker 5>So when the USMCA was renegotiated, we did see tightened

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<v Speaker 5>rules to ensure that all cars that benefit from USMCA

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<v Speaker 5>are almost entirely North American content, about seventy five percent.

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<v Speaker 5>I think the President will push Mexico and Canada for

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<v Speaker 5>similar commitments on a range of goods to ensure that

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<v Speaker 5>anything benefiting from this duty free treatment is actually a

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<v Speaker 5>product of North America.

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<v Speaker 2>Okay, we're still trying to figure out if some of

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<v Speaker 2>these tariffs actually stand up to legal screen today and

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<v Speaker 2>in the cabinet meeting yesterday, the Treasury Secretary talked about

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<v Speaker 2>customs revenue of north of five hundred billion dollars a year.

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<v Speaker 2>These tariffs and the revenue they're generating now too big

0:12:31.840 --> 0:12:32.520
<v Speaker 2>to strike down.

0:12:34.200 --> 0:12:36.760
<v Speaker 5>Well, it's a great question. I think we are nearing that,

0:12:36.880 --> 0:12:39.840
<v Speaker 5>and certainly the president's rhetoric, the president of his cabinet

0:12:40.080 --> 0:12:43.560
<v Speaker 5>really justifying the value of this tear least tariffs and

0:12:43.600 --> 0:12:46.280
<v Speaker 5>what they're doing for the deficit in the United States

0:12:46.840 --> 0:12:49.280
<v Speaker 5>indicate that by and large they are here to stay.

0:12:49.760 --> 0:12:53.040
<v Speaker 5>We have action after action piling up which threatened to

0:12:53.120 --> 0:12:54.960
<v Speaker 5>raise the tariff level. I think it's going to be

0:12:55.080 --> 0:12:59.120
<v Speaker 5>very challenging in a wholesale fashion to see these tariffs

0:12:59.160 --> 0:12:59.600
<v Speaker 5>coming down.

0:12:59.640 --> 0:13:04.559
<v Speaker 2>Any stay with US multilindex. Savannah's coming up off to

0:13:04.679 --> 0:13:15.439
<v Speaker 2>this in New York City, Max Show the form of

0:13:15.520 --> 0:13:17.559
<v Speaker 2>Chief of Staff to the FULMA Vice President Mike Pench

0:13:17.640 --> 0:13:18.400
<v Speaker 2>joins us now for more.

0:13:18.400 --> 0:13:20.000
<v Speaker 1>Mont, good morning, good morning, thanks for having me.

0:13:20.120 --> 0:13:22.320
<v Speaker 2>Thank you for big ka a much more interventionist White

0:13:22.320 --> 0:13:24.640
<v Speaker 2>House over the past week and maybe the last number

0:13:24.640 --> 0:13:26.480
<v Speaker 2>of months as well. Can you just weigh in how

0:13:26.480 --> 0:13:27.640
<v Speaker 2>are you framing things in the moment?

0:13:27.960 --> 0:13:30.719
<v Speaker 1>Well, on this pretty good topic, I actually think there

0:13:30.840 --> 0:13:34.640
<v Speaker 1>is probably broader support among a lot of small government

0:13:34.679 --> 0:13:37.560
<v Speaker 1>people who say, you know what, the notion of a

0:13:37.800 --> 0:13:40.880
<v Speaker 1>FED truly being independent was a nice notion, went before

0:13:40.880 --> 0:13:44.240
<v Speaker 1>it had seven trillion dollars of assets on his books,

0:13:44.679 --> 0:13:46.880
<v Speaker 1>and so you have a lot of unlikely people with

0:13:46.960 --> 0:13:50.720
<v Speaker 1>fourteen year terms have enormous influence over the economy. Having

0:13:50.800 --> 0:13:53.080
<v Speaker 1>said that, I think there's probably a desire also that

0:13:53.480 --> 0:13:55.920
<v Speaker 1>if there was actually effort to change it, it'd be

0:13:55.960 --> 0:13:59.040
<v Speaker 1>more above board than coming up with sort of these

0:13:59.080 --> 0:14:02.600
<v Speaker 1>fraudulent charge is against the board governor because there's probably

0:14:02.640 --> 0:14:06.040
<v Speaker 1>plenty political pointees indministration of multiple mortgages too, and said

0:14:06.080 --> 0:14:08.640
<v Speaker 1>they're both their primary residents. So I'm sure there's a

0:14:08.640 --> 0:14:10.720
<v Speaker 1>double standard here, and I wish there is a more

0:14:10.960 --> 0:14:13.760
<v Speaker 1>intellectual appeal about the Fed's role as a postcon with

0:14:13.760 --> 0:14:14.480
<v Speaker 1>bogus chargers.

0:14:14.480 --> 0:14:15.880
<v Speaker 2>I just want to pick up on the language a

0:14:15.920 --> 0:14:18.640
<v Speaker 2>difference between challenges of fraud and fortullent challenges. Which one

0:14:18.679 --> 0:14:19.280
<v Speaker 2>do you think it is?

0:14:20.160 --> 0:14:22.480
<v Speaker 1>I think these are bogus charges. I mean, what makes

0:14:22.520 --> 0:14:25.440
<v Speaker 1>you believe that, Well, I don't know how many how

0:14:25.440 --> 0:14:27.000
<v Speaker 1>many homes she has or if she listed both as

0:14:27.000 --> 0:14:28.680
<v Speaker 1>private resident, is that really a reason you're going to

0:14:28.760 --> 0:14:32.560
<v Speaker 1>remove somebody as a board governor. And again I believe

0:14:32.600 --> 0:14:34.600
<v Speaker 1>there's probably plenty of people indministration who have done the

0:14:34.640 --> 0:14:35.760
<v Speaker 1>same on their mortgage file.

0:14:35.840 --> 0:14:36.000
<v Speaker 3>Well.

0:14:36.040 --> 0:14:38.720
<v Speaker 4>Lots of reporting over this summer about Ken Paxton, who's

0:14:38.720 --> 0:14:41.120
<v Speaker 4>the Attorney General of Texas who's running to be the senator.

0:14:41.200 --> 0:14:43.680
<v Speaker 4>Good point, And do you think is litmus test now

0:14:43.680 --> 0:14:45.320
<v Speaker 4>for the president? He's going to decide whether or not

0:14:45.320 --> 0:14:47.560
<v Speaker 4>he's going to back Ken pax then, because he has

0:14:47.800 --> 0:14:49.840
<v Speaker 4>three residences listen as a primary more.

0:14:49.960 --> 0:14:52.200
<v Speaker 1>You know Emory, he's very flexible in these things. I

0:14:52.240 --> 0:14:54.560
<v Speaker 1>think this is this is more about his effort to

0:14:54.600 --> 0:14:57.880
<v Speaker 1>exert control over the FED because I think they're concerned

0:14:57.920 --> 0:15:01.320
<v Speaker 1>that their trade agenda is causing great weakness in the

0:15:01.360 --> 0:15:04.480
<v Speaker 1>labor market and they want rates lower. And to be fair,

0:15:04.520 --> 0:15:06.800
<v Speaker 1>this is what the President has always wanted, his lower rates.

0:15:06.840 --> 0:15:09.400
<v Speaker 1>Even when he had the option to appoint Jerome Powell

0:15:09.560 --> 0:15:12.680
<v Speaker 1>in the first administration, there were three options between Kevin Warsh,

0:15:12.720 --> 0:15:16.200
<v Speaker 1>John Taylor, and Jerome Powell, and the President asked who's

0:15:16.200 --> 0:15:18.120
<v Speaker 1>going to make rades lower? And that's one of the

0:15:18.120 --> 0:15:20.840
<v Speaker 1>ironies is that he chose the person who Steve Nichen

0:15:20.840 --> 0:15:23.080
<v Speaker 1>told him is going to keep rates lower, but obviously

0:15:23.080 --> 0:15:23.920
<v Speaker 1>he wants even lower.

0:15:23.920 --> 0:15:26.600
<v Speaker 4>They are now, how difficult is next week going to be?

0:15:26.680 --> 0:15:29.160
<v Speaker 4>If the Senate Banking Committee begins their hearing of Steve

0:15:29.240 --> 0:15:31.160
<v Speaker 4>Myron and you look at some of the Republicans on

0:15:31.200 --> 0:15:33.320
<v Speaker 4>that committee. Are we going to see pushback not just

0:15:33.320 --> 0:15:35.880
<v Speaker 4>from the likes of Elizabeth Warren but also like Tom

0:15:35.920 --> 0:15:36.280
<v Speaker 4>tell Us.

0:15:36.800 --> 0:15:38.760
<v Speaker 1>We haven't seen it yet, Henry. He said, I'm not

0:15:38.800 --> 0:15:41.120
<v Speaker 1>so confident that it's going to be significant pushback on

0:15:41.520 --> 0:15:44.280
<v Speaker 1>his appointment. And I look, again, I think this is

0:15:44.320 --> 0:15:46.640
<v Speaker 1>about effort, exert control, want to have a majority so

0:15:46.680 --> 0:15:49.440
<v Speaker 1>he can lower rates faster. But again, I think it's

0:15:49.480 --> 0:15:52.520
<v Speaker 1>reflective of a concern about where the labor market's going.

0:15:52.680 --> 0:15:54.960
<v Speaker 2>I remember Stephen Mall nominates it for a seat on

0:15:55.000 --> 0:15:58.240
<v Speaker 2>the Federal sev the Senate was Republican at the time,

0:15:58.600 --> 0:16:00.680
<v Speaker 2>and he didn't make it, and that was what's the

0:16:00.720 --> 0:16:03.440
<v Speaker 2>difference between that first time for the president and this

0:16:03.640 --> 0:16:04.000
<v Speaker 2>second thing?

0:16:04.120 --> 0:16:05.680
<v Speaker 1>Yeah, yeah, great question, because I think this is much

0:16:05.680 --> 0:16:07.440
<v Speaker 1>broader than the Reserve. I think it's about all of

0:16:07.440 --> 0:16:09.480
<v Speaker 1>his nominations. I think that you know, you go to

0:16:10.320 --> 0:16:12.640
<v Speaker 1>his cabinet and I think it'd be hard to envision

0:16:12.680 --> 0:16:15.720
<v Speaker 1>that RFK would have gotten confirmed in a previous Republican

0:16:15.760 --> 0:16:19.520
<v Speaker 1>controlled Senate. I think this is basically a reflection that

0:16:19.560 --> 0:16:22.960
<v Speaker 1>Republicans are very worried about the president primary. He has

0:16:23.040 --> 0:16:26.120
<v Speaker 1>shown his ability to engage in primaries and exert that control,

0:16:26.320 --> 0:16:28.720
<v Speaker 1>and there's just an enormous fear factor, and he's using

0:16:28.760 --> 0:16:31.280
<v Speaker 1>that with great leverage amongst Senate Republicans.

0:16:31.280 --> 0:16:32.680
<v Speaker 2>Has the Ponzi changed.

0:16:32.640 --> 0:16:35.040
<v Speaker 1>The Party's absolutely changed. I mean, I think the party

0:16:35.080 --> 0:16:38.280
<v Speaker 1>has certainly become far more populous. I think you know,

0:16:38.320 --> 0:16:42.480
<v Speaker 1>when you see basically the federal government looking to seize

0:16:42.520 --> 0:16:45.640
<v Speaker 1>means of production and the biggest cheerleaders are Elizabeth Warren

0:16:45.680 --> 0:16:49.040
<v Speaker 1>and Bernie Sanders, and there's not a Republican speaking out

0:16:49.080 --> 0:16:52.120
<v Speaker 1>about the government taking over ten percent of intel. On

0:16:52.160 --> 0:16:54.960
<v Speaker 1>the heels of saying, you know, in selling we have

0:16:55.000 --> 0:16:57.520
<v Speaker 1>export controls, we don't want to sell these chips to China. Oh,

0:16:57.560 --> 0:16:59.120
<v Speaker 1>but if you allow us to take fifteen percent of

0:16:59.120 --> 0:17:01.840
<v Speaker 1>the profits of a video, it's okay. And on the

0:17:01.880 --> 0:17:04.200
<v Speaker 1>heels of saying we're gonna take golden shares of Nippon

0:17:04.280 --> 0:17:07.920
<v Speaker 1>Steel a US steel, It's like this is clearly moving

0:17:07.960 --> 0:17:10.879
<v Speaker 1>a direction where the populism and the progressive merge, and

0:17:10.920 --> 0:17:14.400
<v Speaker 1>there's been total silence among center Republicans and centered Republicans.

0:17:15.000 --> 0:17:18.680
<v Speaker 4>With their silence, you say, potentially though, they're interested in

0:17:18.720 --> 0:17:21.600
<v Speaker 4>revamping the Federal Reserve because they're in favor of small government.

0:17:21.760 --> 0:17:24.080
<v Speaker 4>Nothing you just listed in terms of taking shares of

0:17:24.119 --> 0:17:26.400
<v Speaker 4>companies is small government, he Marie.

0:17:27.040 --> 0:17:28.760
<v Speaker 1>That's I think one of the shocking parts is that

0:17:28.840 --> 0:17:31.639
<v Speaker 1>I do believe that the first Trump administration was predominantly

0:17:31.640 --> 0:17:35.600
<v Speaker 1>small government, was deregulatory, it reduced taxes, and I feel

0:17:35.600 --> 0:17:38.160
<v Speaker 1>like the second administration is exerted its influence in all

0:17:38.200 --> 0:17:41.040
<v Speaker 1>sectors of the economy and looking to exert its muscle.

0:17:41.040 --> 0:17:44.080
<v Speaker 1>And I think it's a very different agenda.

0:17:43.440 --> 0:17:45.520
<v Speaker 4>To be more constructive on what they're doing in terms of,

0:17:45.560 --> 0:17:48.160
<v Speaker 4>say intel, There's been a lot of criticism that they're

0:17:48.200 --> 0:17:51.080
<v Speaker 4>mirroring what China does, or this is state capitalism like

0:17:51.119 --> 0:17:54.440
<v Speaker 4>Europeans did in the nineteen sixties. What do you actually

0:17:54.440 --> 0:17:56.959
<v Speaker 4>think Trump is thinking? Is this about building a sovereign

0:17:57.000 --> 0:17:59.200
<v Speaker 4>well fun what is actually the strategy?

0:17:59.640 --> 0:18:02.160
<v Speaker 1>I think could he kind of rejected the Sovereign Wealth

0:18:02.160 --> 0:18:04.320
<v Speaker 1>Fund the other day, But I do think it's concerning,

0:18:04.800 --> 0:18:09.639
<v Speaker 1>you know, the trajectory there is basically Saudi Arabia, China, Iran, Russia.

0:18:09.680 --> 0:18:11.840
<v Speaker 1>Those are the ones with sovereign wealth funds. I certainly

0:18:11.880 --> 0:18:13.960
<v Speaker 1>hope that's not where we're going. I do think it's

0:18:13.960 --> 0:18:16.360
<v Speaker 1>more for in his mind simply about leverage and where

0:18:16.400 --> 0:18:19.600
<v Speaker 1>he can have leverage. But again, the base of it

0:18:19.680 --> 0:18:21.760
<v Speaker 1>was two weeks before he more or lessened s ANUWAYD

0:18:21.760 --> 0:18:25.480
<v Speaker 1>the Intel CEOs and Chinese spy and then basically allowing

0:18:25.800 --> 0:18:28.480
<v Speaker 1>to basically saying, Okay, well, we're not so worried about

0:18:28.480 --> 0:18:29.879
<v Speaker 1>the national security and more as long as we can

0:18:29.920 --> 0:18:32.760
<v Speaker 1>have ten percent. It's like, what's the justification. I feel

0:18:32.800 --> 0:18:35.520
<v Speaker 1>like when you do this, you crowd out private investors.

0:18:35.520 --> 0:18:36.960
<v Speaker 1>I don't think this would be good for either side.

0:18:37.000 --> 0:18:39.919
<v Speaker 1>I think you can see Intel shock. Intel stock probably

0:18:39.920 --> 0:18:42.399
<v Speaker 1>declined because what private investor wants to engage and they

0:18:42.400 --> 0:18:43.960
<v Speaker 1>feel like the federal government can just come in and

0:18:43.960 --> 0:18:45.399
<v Speaker 1>take ten percent or more.

0:18:46.600 --> 0:18:50.120
<v Speaker 2>This is the Bloomberg Survendments podcast, bringing you the best

0:18:50.200 --> 0:18:53.520
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0:18:53.560 --> 0:18:56.520
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0:18:56.640 --> 0:19:00.400
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0:19:00.560 --> 0:19:02.760
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0:19:02.800 --> 0:19:05.200
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0:19:09.240 --> 0:19:09.760
<v Speaker 1>Mm hmm