WEBVTT - The Legal Basis for Retaking the Panama Canal, plus No Taxes on Tips is Happening 0:00:01.320 --> 0:00:04.439 Welcome in his verdict with Senator Ted Cruz, Ben Ferguson 0:00:04.559 --> 0:00:07.560 with you and Senator I never thought i'd say there 0:00:07.640 --> 0:00:09.960 was a whole lot of action today in the Senate 0:00:10.440 --> 0:00:13.720 when it comes to the Panama Canal. But that is 0:00:13.840 --> 0:00:16.520 exactly what happened. Is we're learning a lot more about 0:00:16.560 --> 0:00:19.560 the corruption there that should shock a lot of Americans. 0:00:20.400 --> 0:00:23.200 Well, today I chaired a hearing in the Senate Commerce 0:00:23.200 --> 0:00:27.040 Committee on the Panama Canal. And listen, Donald Trump has 0:00:27.240 --> 0:00:30.319 raised this issue. It is a very significant issue. I 0:00:30.360 --> 0:00:32.040 got to say. When he raised it, a lot of 0:00:32.040 --> 0:00:34.360 people in the media, a lot of Democrats dismissed it, 0:00:34.440 --> 0:00:37.600 thought it was crazy talk. But I actually think it 0:00:37.680 --> 0:00:40.520 is a very serious point. We've talked about this before 0:00:40.560 --> 0:00:44.160 on the podcast, but today I chaired a hearing on 0:00:44.200 --> 0:00:48.239 the Panama Canal, and in particular on the conduct that 0:00:48.280 --> 0:00:53.360 Panama has committed potentially in violation of the treaty. So 0:00:54.320 --> 0:00:59.200 the United States built that canal. Over thirty thousand lives 0:00:59.600 --> 0:01:04.640 were lost in the construction of that canal. Over fifteen 0:01:05.240 --> 0:01:10.560 billion dollars in today's dollars were spent by America, by 0:01:10.600 --> 0:01:15.440 American taxpayers, in building that canal. And Jimmy Carter sadly 0:01:15.560 --> 0:01:18.480 gave it away, gave it to Panama. It was indefensible. 0:01:18.520 --> 0:01:20.720 I remember I was a little kid. You were not 0:01:20.840 --> 0:01:24.920 even been a sparkle in your daddy's eyeball when this happened. 0:01:25.440 --> 0:01:27.919 But I remember it well, and I remember being pissed. 0:01:27.959 --> 0:01:30.320 And by the way, this was one of the major 0:01:30.400 --> 0:01:34.200 issues that got Ronald Reagan elected in nineteen eighty because 0:01:34.319 --> 0:01:39.080 Jimmy Carter gave this away. Well, Donald Trump has rightly 0:01:39.160 --> 0:01:43.280 raised this, and in particular when Jimmy Carter gave it away. 0:01:43.400 --> 0:01:47.560 Panama agreed to a very specific treaty, a treaty to 0:01:47.720 --> 0:01:52.480 keep the Panama Canal neutral and to charge America fair 0:01:52.520 --> 0:01:55.960 and equitable rates. And the hearing we had today was 0:01:56.120 --> 0:02:01.760 testimony from numerous experts that Panama is in violation of 0:02:01.800 --> 0:02:05.360 that treaty. That number one, that they have seeded enormous 0:02:05.400 --> 0:02:09.280 control to China over the canal, and this is the 0:02:09.320 --> 0:02:12.640 point President Trump has made that is really quite powerful. 0:02:12.880 --> 0:02:16.560 And number two, that they are charging exorbitant rates to 0:02:16.720 --> 0:02:19.840 American shippers, to commercial shippers, and to the US Navy. 0:02:20.360 --> 0:02:22.440 And so that hearing we're going to break down today. 0:02:22.480 --> 0:02:26.440 We also we saw this weekend, President Trump went and 0:02:26.480 --> 0:02:30.519 did a major event pressing his policy for no taxes 0:02:30.560 --> 0:02:33.840 on tips. This is a policy we're going to get enacted. 0:02:33.919 --> 0:02:36.640 I am the author of the legislation in the Senate 0:02:36.680 --> 0:02:39.639 to get this done, and I believe we're going to 0:02:39.720 --> 0:02:40.560 get this done this year. 0:02:40.600 --> 0:02:41.840 We're going to break that down as well. 0:02:42.560 --> 0:02:44.520 I want to take a moment real quick and talk 0:02:44.560 --> 0:02:47.360 to you about January the twenty seventh. You may not 0:02:47.560 --> 0:02:51.840 have realized, but the twenty seventh was International Holocaust Remembrance 0:02:51.919 --> 0:02:55.000 Day Day to remember the great evil of the Holocaust, 0:02:55.040 --> 0:02:58.480 when millions of Jews were slaughtered during the Nazis reign 0:02:58.480 --> 0:03:02.920 of terror. Today, unfortunately, the rise in global anti Semitism 0:03:03.000 --> 0:03:06.480 and the constant attacks on Israel are showing us that 0:03:06.560 --> 0:03:09.200 it's more important than ever to remember the atrocities of 0:03:09.240 --> 0:03:12.960 the Holocaust to ensure that it never happens again. And 0:03:13.000 --> 0:03:16.519 that's why I'm proud to stand with the International Fellowship 0:03:16.600 --> 0:03:21.600 of Christians and Jews. They do incredible work by providing food, shelter, 0:03:21.720 --> 0:03:24.480 and safety to Jews in Israel and around the world, 0:03:24.600 --> 0:03:28.799 including those remaining Holocaust survivors. Your donation today will help 0:03:28.840 --> 0:03:32.919 provide food water, medicine, and not only basic necessities of 0:03:32.919 --> 0:03:36.480 the Jewish community, but also things like bomb shelters and 0:03:37.280 --> 0:03:41.120 armored ambulances that they need in Israel right now. And 0:03:41.200 --> 0:03:43.320 through your gift, you will stand with the Jewish people 0:03:43.400 --> 0:03:47.440 and against this growing anti Semitism and hatred. So to 0:03:47.520 --> 0:03:50.520 give to show your support to the Jewish people, you 0:03:50.560 --> 0:03:58.240 can visit SUPPORTIFCJ dot org. That's one word, support IFCJ 0:03:58.440 --> 0:04:00.920 dot org. You can also call and give them a 0:04:00.920 --> 0:04:06.160 donation eighty eight for eight eight IFCJ that's eight eight 0:04:06.240 --> 0:04:11.360 eight four eight eight IFCJ eighty eight four eight eight 0:04:11.760 --> 0:04:17.440 four three two five or support IFCJ dot org. All right, 0:04:17.520 --> 0:04:21.559 so Senator, let's go back in history and really dive 0:04:21.640 --> 0:04:26.200 into how all this got started. And you mentioned in 0:04:26.240 --> 0:04:29.640 the intro there America built the Panama Canal and then 0:04:29.680 --> 0:04:32.440 it was given away. So let's talk about the building. 0:04:32.800 --> 0:04:36.040 Let's talk about the price, Let's talk about the cost 0:04:36.839 --> 0:04:39.320 and including people that literally gave their lives building this 0:04:39.400 --> 0:04:42.440 incredible thing, why it was built, and then let's get 0:04:42.480 --> 0:04:43.960 to why we gave it away. 0:04:44.800 --> 0:04:48.040 Listen, it was a massive investment from the United States. 0:04:48.040 --> 0:04:52.120 It was an extraordinary endeavor. Teddy Roosevelt had the vision 0:04:52.200 --> 0:04:54.320 to build the Panama Canal. Look, it used to be 0:04:54.960 --> 0:04:58.000 that's traverse from the Atlantic to the Pacific Ocean. You 0:04:58.040 --> 0:05:01.760 had to go all the way south below South America, 0:05:01.760 --> 0:05:05.160 and that took enormous time. It was enormously costly, and 0:05:05.200 --> 0:05:10.240 America said, we can construct a canal through Panama. We 0:05:10.279 --> 0:05:15.480 can cut that journey dramatically shorter. It was a major investment, 0:05:15.960 --> 0:05:18.840 and as I said, over thirty thousand lives were lost 0:05:19.000 --> 0:05:23.320 building that canal. It was not a small investment. Fifteen 0:05:23.839 --> 0:05:28.240 billion dollars. And listen, before we get started, I want 0:05:28.279 --> 0:05:32.400 to just just take a musical moment to reflect, So 0:05:32.520 --> 0:05:45.240 give a listen. That's what we're talking about today. 0:05:45.680 --> 0:05:48.200 So I love that you played the song there, and 0:05:48.240 --> 0:05:53.440 you guys actually talked about possibly playing that today in Congress, 0:05:53.480 --> 0:05:55.440 which made me laugh at the hearing as well. 0:05:56.160 --> 0:05:58.880 Well, that's true, and so let's start. So we opened 0:05:58.920 --> 0:05:59.360 the hearing. 0:05:59.800 --> 0:06:03.320 By the way, the Senate Commerce Committee of which I'm chairman, 0:06:03.360 --> 0:06:07.520 has explicit jurisdiction over the Panama Canal because it is 0:06:07.760 --> 0:06:11.159 enormously important for American commerce, and so that's why we 0:06:11.240 --> 0:06:14.120 started with this major hearing. So give a listen. This 0:06:14.200 --> 0:06:17.760 is my opening statement as we open the hearing. We're 0:06:17.800 --> 0:06:23.000 here today to examine a monument to American ingenuity, the 0:06:23.040 --> 0:06:26.719 Panama Canal. Senator Moreno down there suggested we open the 0:06:26.720 --> 0:06:31.479 hearing by playing Van Halen and Panama. We may not 0:06:31.600 --> 0:06:37.640 do that, but between the American construction of the Panama Canal, 0:06:38.680 --> 0:06:42.440 the French effort to build an Isthmus Canal an America's 0:06:42.480 --> 0:06:48.160 triumphant completion of that canal, the major infrastructure projects across 0:06:48.200 --> 0:06:53.080 Panama cost more than thirty five thousand lives. For the 0:06:53.080 --> 0:06:56.480 final decade of work on the Panama Canal, the United 0:06:56.480 --> 0:07:01.840 States spent nearly four hundred million dollars equivalent to more 0:07:01.880 --> 0:07:03.480 than fifteen billion today. 0:07:03.880 --> 0:07:05.280 The Panama Canal. 0:07:05.080 --> 0:07:10.760 Proved a truly invaluable asset, sparing both cargo ships and 0:07:10.880 --> 0:07:15.040 warships the long journey around South America. When President Carter 0:07:15.560 --> 0:07:19.320 gave it away to Panama, Americans were puzzled, confused, and 0:07:19.360 --> 0:07:24.360 many outraged. With the passage of time, many have lost 0:07:24.440 --> 0:07:29.040 sight of the canal's importance, both to national security and 0:07:29.080 --> 0:07:35.400 to the US economy. Not President Trump, when he demanded 0:07:35.440 --> 0:07:39.680 fair treatment for American ships and goods. Many in the 0:07:39.720 --> 0:07:44.080 media scoffed. But the Panama Canal was not just given away. 0:07:45.240 --> 0:07:49.200 President Carter struck a bargain, He made a treaty, and 0:07:49.280 --> 0:07:52.680 President Trump is making a serious and substantive argument that 0:07:52.680 --> 0:07:56.560 that treaty is being violated right now. This committee has 0:07:56.640 --> 0:07:59.440 jurisdiction under the Senate rules over the Panama Canal and 0:07:59.480 --> 0:08:03.160 today will examine evidence of potential violations. 0:08:04.160 --> 0:08:06.240 Resident Trump has highlighted two key issues. 0:08:06.840 --> 0:08:10.880 Number one, the danger of China exploiting or blocking passage 0:08:10.920 --> 0:08:15.200 through the canal, and number two, the exorbitant costs for transit. 0:08:16.480 --> 0:08:19.440 Chinese companies are right now building a bridge across the 0:08:19.480 --> 0:08:23.560 canal at a slow pace so as to take nearly 0:08:23.680 --> 0:08:29.240 a decade, and Chinese companies control container points ports at 0:08:29.280 --> 0:08:34.240 either end. The partially completed bridge gives China the ability 0:08:34.280 --> 0:08:38.520 to block the canal without warning, and the ports give 0:08:38.640 --> 0:08:42.160 China ready observation post to take to time that action. 0:08:43.400 --> 0:08:50.040 This situation, I believe poses acute risks to US national security. Meanwhile, 0:08:50.080 --> 0:08:54.720 the high fees for canal transit disproportionately affect Americans because 0:08:54.840 --> 0:08:59.800 US cargo accounts for nearly three quarters of canal transits. 0:09:00.080 --> 0:09:03.920 Navy vessels pay additional fees that apply only to worships. 0:09:05.040 --> 0:09:10.840 Canal profits regularly exceed three billion dollars. This money comes 0:09:10.880 --> 0:09:14.319 from both American taxpayers and consumers in the form of 0:09:14.360 --> 0:09:19.160 higher costs for goods. American tourists aboard cruises, particularly those 0:09:19.160 --> 0:09:22.920 in the Caribbean Sea, are essentially captive to any fees 0:09:23.000 --> 0:09:27.079 Panama chooses to levy or canal transits, and they have 0:09:27.160 --> 0:09:31.520 pair paid unfair prices for fuel bunkering at terminals in 0:09:31.600 --> 0:09:36.319 Panama as a result of government granted monopoly. Panama's government 0:09:36.360 --> 0:09:39.920 relies on these exploitative fees. Nearly one tenth of its 0:09:39.960 --> 0:09:44.720 budget is paid for with canal profit, as those fees 0:09:44.800 --> 0:09:48.439 cascade through the American economy and the federal fisk. The 0:09:48.520 --> 0:09:52.320 Chinese Communist Party advances its global economic contests against the 0:09:52.400 --> 0:09:56.480 United States and takes a militaristic interest in the canal. 0:09:57.880 --> 0:10:00.320 While President Trump is rightly focused on the these key 0:10:00.400 --> 0:10:04.520 issues their additional problems. In the last two years, the 0:10:04.520 --> 0:10:08.520 Canal Authority generated record revenue even while transits were depressed 0:10:09.040 --> 0:10:12.160 by drought conditions, and the only comfort to delayed and 0:10:12.200 --> 0:10:15.680 overcharge ships is that Panama may invest in more fresh. 0:10:15.520 --> 0:10:16.840 Water reserves in the future. 0:10:18.080 --> 0:10:20.760 Even as it takes advantage of the global maritime system, 0:10:21.480 --> 0:10:24.800 Panama has emerged as a bad actor. Panama has for 0:10:24.960 --> 0:10:29.920 years flagged dozens of vessels in the Iranian ghost Fleet, 0:10:30.880 --> 0:10:34.800 which brought Iran tens of billions of dollars in oil 0:10:34.880 --> 0:10:39.960 profits to fund terror across the world, and Chinese companies 0:10:39.960 --> 0:10:44.679 have won contracts, often without fair competition, as the infamous 0:10:44.720 --> 0:10:49.040 Belton Road initiative has come to Panama. China often engages 0:10:49.120 --> 0:10:53.360 in debt trap diplomacy to enable economic and political coercion 0:10:54.280 --> 0:10:58.000 in Panama. It also seems to have exploited simple corruption. 0:10:59.080 --> 0:11:02.480 So center you will get these warnings and they're like 0:11:03.000 --> 0:11:09.520 multiple red flags here Iran and China and this bridge, 0:11:10.200 --> 0:11:14.199 and basically the highest bidder can get whatever the hell 0:11:14.240 --> 0:11:17.079 they want, no matter how shady they are from Panama 0:11:17.120 --> 0:11:19.280 and the Panama Canal Am I wrong. 0:11:19.800 --> 0:11:20.160 You're not. 0:11:20.320 --> 0:11:22.760 And there were several striking things in the hearing. Number One, 0:11:22.800 --> 0:11:26.400 we had a series of witnesses from the Federal Maritime Commission, 0:11:26.720 --> 0:11:30.720 and we had an international law professor who testified about 0:11:30.760 --> 0:11:34.960 the neutrality treaty, and they testified about a number of things. 0:11:35.040 --> 0:11:37.360 Number One, there's a treaty that governs this. So this 0:11:37.480 --> 0:11:40.840 is not simply Donald Trump raising an issue. Gosh, we 0:11:40.880 --> 0:11:45.200 want the Panama Canal. Panama made a commitment when Jimmy 0:11:45.240 --> 0:11:48.440 Carter gave this away, and they made a commitment number one, 0:11:48.520 --> 0:11:51.520 that the Panama Canal would remain neutral, that it would 0:11:51.600 --> 0:11:55.440 not allow another foreign power to have control over it, 0:11:55.480 --> 0:11:58.679 to have military access to it. And number two, they 0:11:58.760 --> 0:12:03.959 made a commitment that entreaty that they would charge fair 0:12:04.040 --> 0:12:08.640 and equitable fees. Now, on the first point, we heard 0:12:09.000 --> 0:12:13.640 an enormous amount of testimony that Panama has made a 0:12:13.880 --> 0:12:18.160 massive pivot towards China. Listen, China is engaged in something 0:12:18.200 --> 0:12:21.720 called the Belton Road Initiative where they're investing in ports 0:12:21.720 --> 0:12:24.520 and infrastructure all over the world, and they're spending billions 0:12:24.520 --> 0:12:27.480 and billions of dollars trying to gain power over the 0:12:27.600 --> 0:12:31.400 United States. And the Panama Canal is critical to US 0:12:31.559 --> 0:12:35.280 national security and to our economy. So on both ends 0:12:35.280 --> 0:12:38.240 of the Panama Canal, on the Pacific side and on 0:12:38.320 --> 0:12:44.800 the Atlantic side, China controls. Chinese corporations control massive ports 0:12:44.800 --> 0:12:48.120 that are right there that give them access and give 0:12:48.160 --> 0:12:52.040 them the ability to observe all traffic going through the 0:12:52.040 --> 0:12:56.839 canal and potentially to shut down all traffic going through 0:12:56.880 --> 0:13:00.240 the canal. As I mentioned also in my opening, theyreuilding 0:13:00.280 --> 0:13:04.080 a bridge across the canal. They are spending over a 0:13:04.280 --> 0:13:08.080 decade building that bridge. That bridge gives them the capacity 0:13:08.080 --> 0:13:11.520 to number one, to engage in surveillance of every ship 0:13:11.559 --> 0:13:16.120 going through the canal. But number two, if listen, we 0:13:16.200 --> 0:13:18.760 get to a time in the future where we're in 0:13:18.960 --> 0:13:22.800 serious conflict with China, let's say a military conflict. Let's 0:13:22.800 --> 0:13:26.840 say they invade Taiwan and we are suddenly at risk 0:13:26.880 --> 0:13:32.000 of a shooting war. China has the capacity to shut 0:13:32.280 --> 0:13:35.360 down the Panama Canal, to use that bridge, to use 0:13:35.400 --> 0:13:38.720 the ports on both ends. It ends to say we 0:13:38.800 --> 0:13:42.080 will annow allow no transit through that canal. That would 0:13:42.160 --> 0:13:46.520 be enormously harmful to the United States, and the point 0:13:46.559 --> 0:13:50.120 that was made in the hearing that is directly contrary 0:13:50.960 --> 0:13:56.720 to the Treaty Panama sign. Secondly, Panama makes roughly three 0:13:57.480 --> 0:14:03.000 billion dollars in fees from transit across the Panama Canal. 0:14:03.640 --> 0:14:07.640 Seventy five percent of those transits are American ships, so 0:14:07.679 --> 0:14:12.480 they are either American cargo ships, commercial ships going across, 0:14:13.040 --> 0:14:16.560 or there are American military ships the US Navy going across. 0:14:16.600 --> 0:14:22.120 But either way, Panama is making billions. And the testimony 0:14:22.160 --> 0:14:24.920 we heard in the hearing today is that on both 0:14:24.960 --> 0:14:30.280 of those grounds there is a strong argument that Panama 0:14:30.600 --> 0:14:33.800 is in violation of the treaty. Now, what's interesting, ben 0:14:34.240 --> 0:14:40.600 I asked the international law professor was testifying. I said, Okay, 0:14:40.680 --> 0:14:45.160 if Panama is in violation of the treaty, number one, 0:14:45.400 --> 0:14:49.440 how is that determined? And number two, what is the remedy. 0:14:50.040 --> 0:14:52.880 On the question of how is that determined? The testimony 0:14:52.880 --> 0:14:56.600 we got today is the professor said, well, under the 0:14:56.680 --> 0:15:01.240 terms of the treaty, each party determines unilaterally whether the 0:15:01.280 --> 0:15:04.480 other is in violation, which means the United States has 0:15:04.520 --> 0:15:08.760 the ability to determine President Trump and this administration can 0:15:08.800 --> 0:15:14.360 determine Panama is in violation. That is decisive. And then secondly, 0:15:14.400 --> 0:15:18.600 the remedy. Initially, when I asked the remedy, what the 0:15:18.600 --> 0:15:24.120 professor testified is that the remedy contemplated in the treaty 0:15:24.320 --> 0:15:28.440 was direct military action by the United States to reassert 0:15:28.480 --> 0:15:31.960 its control. I also asked, okay, if they're in violation 0:15:32.080 --> 0:15:36.040 of the treaty, is there a potential to assert that 0:15:36.080 --> 0:15:38.800 the treaty is null and void and the United States 0:15:38.840 --> 0:15:43.640 will reassert control on that question, he went back and forth, 0:15:43.720 --> 0:15:48.440 But I will say that testimony I think gave enormous 0:15:48.800 --> 0:15:51.640 heft to the points President Trump has been making. 0:15:52.200 --> 0:15:54.400 So you look at this and you say, all right, 0:15:55.160 --> 0:15:58.800 what are the options now for President Trump and then 0:15:59.560 --> 0:16:02.840 for Congress because we can't get it back right there, 0:16:02.920 --> 0:16:04.880 I've seen it. I'd be like, we just take this 0:16:04.960 --> 0:16:08.400 thing back. We built it. I don't think it's that simple. 0:16:08.480 --> 0:16:10.800 Is that a fair fair point to make? Starting off? 0:16:11.320 --> 0:16:13.760 You know, it's interesting you and I did a podcast 0:16:14.040 --> 0:16:18.359 early on when President Trump was talking about Canada, Panama, 0:16:18.440 --> 0:16:22.200 and Greenland, and I put them on a spectrum. I said, Canada, 0:16:22.720 --> 0:16:25.880 it ain't going to become the fifty first state. Their 0:16:26.280 --> 0:16:31.360 President Trump is just trolling Canada. He's messing with Trudeau. 0:16:31.480 --> 0:16:35.640 And by the way, his trolling of Trudeau probably cost 0:16:35.760 --> 0:16:39.440 him being Prime minister. I mean, it was perhaps the 0:16:39.480 --> 0:16:41.760 most epic troll in history. 0:16:43.120 --> 0:16:44.400 Greenland, on the other. 0:16:44.240 --> 0:16:48.080 Hand, as we discussed at length on this podcast, I 0:16:48.120 --> 0:16:51.680 think there's a very serious argument that it is in 0:16:51.720 --> 0:16:56.000 the United States's interest to try to acquire Greenland, to 0:16:56.080 --> 0:16:58.920 try to acquire a number one for national security reasons 0:16:58.960 --> 0:17:03.440 because Greenland has a critical geographic location in the Arctic. 0:17:04.119 --> 0:17:07.040 If God forbid, we had a military conflict with Russia 0:17:07.160 --> 0:17:11.360 or China, any ICBMs and any military attack would likely 0:17:11.400 --> 0:17:15.800 come over the Arctic. Greenland is precisely situated to be 0:17:15.840 --> 0:17:20.320 able to intercept and combat that. But also Greenland has 0:17:20.760 --> 0:17:25.720 vast natural resources, in particular rarest minerals and critical minerals, 0:17:26.119 --> 0:17:28.240 and so I think it is very much at our 0:17:28.280 --> 0:17:30.720 interest to pursue Greenland. 0:17:30.760 --> 0:17:31.680 Now, I will. 0:17:31.440 --> 0:17:34.720 Say a little over a week ago, I had a 0:17:34.720 --> 0:17:40.200 long conversation with the Danish ambassador. So Greenland is controlled 0:17:40.240 --> 0:17:44.520 by Denmark, and the Danish ambassador was quite distressed because 0:17:44.560 --> 0:17:46.960 I've been very vocal, including on this podcast, and so 0:17:47.040 --> 0:17:49.600 I got a call from the Danish ambassador, what are 0:17:49.640 --> 0:17:53.840 you saying on Verdict, which is is an interesting did. 0:17:53.880 --> 0:17:56.920 Your response was do go listen to it? 0:17:56.920 --> 0:17:57.560 It's up there. 0:17:58.960 --> 0:18:02.400 I did have a good life. And the Danish ambassador 0:18:02.440 --> 0:18:04.800 is like, why are you attacking us? And I said, listen, 0:18:04.880 --> 0:18:08.959 let me be clear, you're a friend, you're an ally. 0:18:10.000 --> 0:18:14.160 I'm not remotely proposing military action against Denmark or Greenland. 0:18:15.040 --> 0:18:19.680 But friends and allies can have real conversations, and I 0:18:19.720 --> 0:18:22.840 think it is very much in our interest to acquire Greenland. 0:18:22.840 --> 0:18:25.760 And the ambassador said it's not for sale, and I said, well, 0:18:25.760 --> 0:18:29.480 everything's for sale, and we're at least going to have 0:18:29.480 --> 0:18:31.760 a conversation, because I think it is both in our 0:18:31.800 --> 0:18:34.560 interest and your interest to have that conversation, and so 0:18:34.640 --> 0:18:37.480 that we had a very direct, I think of very 0:18:37.520 --> 0:18:40.879 positive conversations, and I expect over the next four years 0:18:41.720 --> 0:18:44.399 the Trump administration is going to press that discussion. 0:18:45.000 --> 0:18:45.280 Now. 0:18:45.359 --> 0:18:47.960 At the time you and I did that podcast, I 0:18:48.119 --> 0:18:51.720 viewed the Panamac Canal as somewhere in the middle. I 0:18:51.760 --> 0:18:53.439 said at the time, I said, we're not going to 0:18:53.440 --> 0:18:58.040 get it back, but I think the president is negotiating 0:18:58.119 --> 0:19:03.560 over priced, negotiating to lower the prices of transit. Now 0:19:03.680 --> 0:19:06.440 I think that's still true. I think the worst case 0:19:06.560 --> 0:19:10.000 outcome of this discussion is we end up with a 0:19:10.160 --> 0:19:14.560 very significant reduction in the cost the price for American 0:19:14.600 --> 0:19:18.159 ships to transit the Panama Canal, both commercial ships and 0:19:18.359 --> 0:19:21.480 US Navy ships. That's a very good outcome. I also 0:19:21.640 --> 0:19:24.399 think it is very likely we will see a significant 0:19:24.440 --> 0:19:30.320 diminution in China's control and influence over the Panama Canal. 0:19:30.880 --> 0:19:34.480 That is a massive benefit. But I got to say, 0:19:34.520 --> 0:19:37.520 after this hearing today, I've moved. I actually think the 0:19:37.560 --> 0:19:43.879 treaty arguments here are quite serious. And I get Panama 0:19:43.960 --> 0:19:49.000 would be horrified to give up the canal because they 0:19:49.000 --> 0:19:52.239 were given a gigantic gift from Jimmy Carter at the 0:19:52.280 --> 0:19:55.440 expense of the United States of America. But I think 0:19:55.480 --> 0:19:58.360 the arguments that Panama is violating the treaty and has 0:19:58.400 --> 0:20:01.320 forfeited its right to the canal, I think those arguments 0:20:01.359 --> 0:20:04.920 are very serious, and I expect the administration to pursue 0:20:04.920 --> 0:20:06.040 them seriously. 0:20:07.200 --> 0:20:10.120 Let's talk about also the contraband in essence is going 0:20:10.160 --> 0:20:13.480 through there Iran and China really getting a grand deal, 0:20:13.520 --> 0:20:15.560 but also the idea that we don't know what's going 0:20:15.640 --> 0:20:18.840 through there on those ships. How concerned are you about that? 0:20:19.040 --> 0:20:24.000 And could this also bring that into perspective where Panama says, hey, 0:20:24.040 --> 0:20:27.040 we can't do this right now, we're under too much 0:20:27.080 --> 0:20:27.840 of a spotlight. 0:20:28.119 --> 0:20:31.400 Well, look, that is a very real problem. So for example, 0:20:31.440 --> 0:20:36.320 Panama has flagged multiple ships from Iran from their ghost fleet, 0:20:36.359 --> 0:20:40.320 the ghost fleet that they're using to transit oil and 0:20:41.280 --> 0:20:43.120 Iran Iran. 0:20:42.920 --> 0:20:44.440 Have a definition, by the way, I have a ghost 0:20:44.440 --> 0:20:46.359 fleet for people that don't understand what that means. 0:20:46.800 --> 0:20:52.040 So there were in law massive sanctions on Iran selling 0:20:52.040 --> 0:20:56.520 oil under Joe Biden. He essentially refused to enforce those sanctions, 0:20:57.000 --> 0:20:59.720 and so Iran used a ghost fleet to get a 0:20:59.800 --> 0:21:01.000 round down those sanctions. 0:21:01.000 --> 0:21:02.200 It was ships. 0:21:02.240 --> 0:21:06.240 That that were operating under under foreign flags that that 0:21:06.359 --> 0:21:10.240 that were basically hiding from the sanctions regime. By the way, 0:21:10.280 --> 0:21:12.840 I think that's one of the most significant things the 0:21:12.880 --> 0:21:17.480 Trump administration is going to do is reimpose those sanctions 0:21:17.520 --> 0:21:20.920 on Iran and cut off their revenue. Joe Biden, the 0:21:20.960 --> 0:21:25.640 Democrats basically gave one hundred billion dollars to the Ayatola 0:21:25.680 --> 0:21:29.080 who's chanting death to America and death to Israel. And 0:21:29.119 --> 0:21:32.240 I believe that that has ended on January twentieth, and 0:21:32.320 --> 0:21:36.240 it should end. Panama was complicit in that that they 0:21:36.280 --> 0:21:39.000 were part of that endeavor. And by the way, Panama 0:21:39.080 --> 0:21:42.120 also made it made a very deliberate decision to pivot 0:21:42.520 --> 0:21:47.240 towards China. So, for example, several years ago, Panama severed 0:21:47.320 --> 0:21:54.280 diplomatic relationships with Taiwan and instead embraced China and they 0:21:54.320 --> 0:21:58.240 did so at the same time that China was making 0:21:58.359 --> 0:22:02.199 massive investments in the ports on both ends of the canal. 0:22:02.800 --> 0:22:05.880 And understand the way China does this, The Chinese government 0:22:06.960 --> 0:22:12.120 subsidizes those investments so that no American company can outbid them. 0:22:12.160 --> 0:22:16.239 Because the Chinese government is essentially subsidizing them. They're not 0:22:16.320 --> 0:22:19.160 doing it for economic purposes. They're not doing it because 0:22:19.160 --> 0:22:22.760 it makes business sense. They're doing it for strategic purposes 0:22:22.840 --> 0:22:26.520 because China wants to control the Panama Canal. Now I 0:22:26.600 --> 0:22:29.080 get why the Chinese communist government wants to do that, 0:22:30.040 --> 0:22:34.240 but Panama letting them do that is I believe in 0:22:34.320 --> 0:22:36.919 direct violation of the treaty and that that's what the 0:22:36.920 --> 0:22:37.960 hearing was about today. 0:22:38.840 --> 0:22:42.280 Final question on this moving forward? How quick will there 0:22:42.320 --> 0:22:44.040 be movement on this issue? 0:22:44.600 --> 0:22:49.560 Look, I don't know. I think this hearing was important today, 0:22:50.080 --> 0:22:52.800 and I'll tell you what I thought was most significant. 0:22:52.920 --> 0:22:55.200 So I called the hearing, and as a chairman, I 0:22:55.240 --> 0:22:57.760 can call a hearing on any topic I want. 0:22:58.960 --> 0:23:01.120 I didn't know how the day Democrats would react. 0:23:01.240 --> 0:23:03.320 I didn't know if the Democrats would show up the 0:23:03.359 --> 0:23:07.960 hearing and begin screaming and saying Trump is a lunatic 0:23:08.000 --> 0:23:10.320 and how Darry do this. I didn't know what they 0:23:10.320 --> 0:23:14.560 would say. The most interesting thing about the hearing today 0:23:14.680 --> 0:23:18.919 is the Democrats. Almost every Democrat echoed the points that 0:23:18.960 --> 0:23:21.120 you and I have been making that China has far 0:23:21.160 --> 0:23:25.240 too much influence over the Panama Canal and also the 0:23:25.280 --> 0:23:29.840 Panama Canal is charging excessive fees. I'm not sure what 0:23:29.880 --> 0:23:32.040 that means, but it surprised me. 0:23:32.720 --> 0:23:33.960 We did not have. 0:23:34.480 --> 0:23:39.560 I sort of anticipated some long Democrat speeches about how 0:23:39.640 --> 0:23:43.159 Trump is a crazy man. We didn't get any of that, 0:23:43.320 --> 0:23:46.520 and I think that was a very interesting particularly the 0:23:46.640 --> 0:23:51.560 Chinese influence on the Panama Canal. There was very significant 0:23:51.600 --> 0:23:54.879 bipartisan agreement. I think that's a very promising sign. 0:23:55.119 --> 0:23:57.240 All right, Well, then we got to use that bipartisan 0:23:57.359 --> 0:24:00.280 sign to move into topic number two, and that is yep. 0:24:00.560 --> 0:24:06.119 Donald Trump was a big proponent of taxes going away 0:24:06.359 --> 0:24:10.959 on tips. Now, this is a very big issue in 0:24:11.000 --> 0:24:14.399 the campaign. 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