1 00:00:00,080 --> 00:00:06,720 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:11,640 --> 00:00:15,440 Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along 3 00:00:15,480 --> 00:00:18,680 Speaker 2: with Lisa Bromwitz and Amrie Hordern. Join us each day 4 00:00:18,720 --> 00:00:22,280 Speaker 2: for insight from the best in markets, economics, and geopolitics 5 00:00:22,400 --> 00:00:24,880 Speaker 2: from our global headquarters in New York City. We are 6 00:00:24,920 --> 00:00:27,680 Speaker 2: live on Bloomberg Television weekday mornings from six to nine 7 00:00:27,720 --> 00:00:31,280 Speaker 2: am Eastern. Subscribe to the podcast on Apple, Spotify or 8 00:00:31,320 --> 00:00:33,919 Speaker 2: anywhere else you listen, and as always on the Bloomberg 9 00:00:34,000 --> 00:00:37,160 Speaker 2: Terminal and the Bloomberg Business app. So here's the laces 10 00:00:37,240 --> 00:00:40,320 Speaker 2: this morning, economic impacts of the Iran war mounting, with 11 00:00:40,440 --> 00:00:43,479 Speaker 2: average gasoline prices in the US nearing four dollars per 12 00:00:43,520 --> 00:00:46,199 Speaker 2: gallon globe was central banks weighing potential rate hikes with 13 00:00:46,240 --> 00:00:48,920 Speaker 2: inflation not expected to fall to target levels. Joining us 14 00:00:48,960 --> 00:00:52,360 Speaker 2: now to discuss Francis Donald of RBC. Francis, can we 15 00:00:52,400 --> 00:00:55,279 Speaker 2: just begin with your outlook, your base case before this 16 00:00:55,360 --> 00:00:57,480 Speaker 2: war and whether it's changed it to all looking out 17 00:00:57,640 --> 00:00:59,960 Speaker 2: twelve months beast. 18 00:00:59,800 --> 00:01:02,640 Speaker 3: Key before this war was something that looked a lot 19 00:01:02,720 --> 00:01:07,080 Speaker 3: like stagflation, like growth that was slightly below comfort level 20 00:01:07,080 --> 00:01:10,920 Speaker 3: and inflation that was slightly above comfort level, importantly driven 21 00:01:10,959 --> 00:01:15,560 Speaker 3: by services inflation. Our outlook now is vibe stagflation medium, 22 00:01:15,840 --> 00:01:19,960 Speaker 3: so more weighing on growth and more upside to inflation. 23 00:01:20,040 --> 00:01:21,800 Speaker 4: Now, these are not massive figures. 24 00:01:21,840 --> 00:01:26,560 Speaker 3: We're looking at three plus ish inflation, still high ones 25 00:01:26,760 --> 00:01:29,720 Speaker 3: on growth, but it's not as comfortable as we would 26 00:01:29,720 --> 00:01:33,920 Speaker 3: have liked. It certainly negates the tailwind coming from government spending, 27 00:01:34,240 --> 00:01:36,280 Speaker 3: and inflation is probably going to. 28 00:01:36,319 --> 00:01:37,440 Speaker 4: Lap itself again. 29 00:01:37,560 --> 00:01:40,360 Speaker 3: I suspect next March we'll be celebrating the six year 30 00:01:40,400 --> 00:01:44,480 Speaker 3: anniversary of inflation above that two percent target. So same 31 00:01:44,560 --> 00:01:47,480 Speaker 3: directions and the wrong directions for this economy. 32 00:01:47,560 --> 00:01:50,480 Speaker 2: Let's go with your medium grade stagflation, Francis. If we 33 00:01:50,520 --> 00:01:53,720 Speaker 2: get medium grade stagflation, how does this fed A reserve respond? 34 00:01:53,760 --> 00:01:54,760 Speaker 2: How much space do they have? 35 00:01:55,920 --> 00:01:56,920 Speaker 4: They don't have space. 36 00:01:57,240 --> 00:02:00,680 Speaker 3: Monetary policy is not the right tool for what ails. 37 00:02:00,400 --> 00:02:03,240 Speaker 4: The US economy. And let's be clear, the US economy 38 00:02:03,320 --> 00:02:05,040 Speaker 4: is not close to a recession. 39 00:02:05,160 --> 00:02:08,079 Speaker 3: The unemployment rate is going to stay very low for 40 00:02:08,160 --> 00:02:11,800 Speaker 3: supply side reasons lack of workers in the American economy 41 00:02:11,919 --> 00:02:15,360 Speaker 3: rather than lack of demand going forward, and there's nothing 42 00:02:15,360 --> 00:02:17,480 Speaker 3: the Federal Reserve can do. They can hiker cut all 43 00:02:17,520 --> 00:02:19,160 Speaker 3: they want, it's not going to open the straight of 44 00:02:19,160 --> 00:02:22,800 Speaker 3: horror moves. We are once again in a supply shock 45 00:02:22,840 --> 00:02:26,400 Speaker 3: that limits the abilities of central banks to deal with 46 00:02:26,440 --> 00:02:30,120 Speaker 3: what needs help in the US economy or any economy 47 00:02:30,160 --> 00:02:32,600 Speaker 3: across the world. This is why we are increasingly leaning 48 00:02:32,600 --> 00:02:35,919 Speaker 3: on fiscal policy. This is why government spending gets bigger 49 00:02:35,960 --> 00:02:36,359 Speaker 3: and bigger. 50 00:02:36,360 --> 00:02:38,320 Speaker 4: This is why the long end starts to rise. 51 00:02:38,760 --> 00:02:41,640 Speaker 3: It's the same type of shock, of a different flavor. 52 00:02:41,840 --> 00:02:45,560 Speaker 5: Unfortunately, So we're talking about the fiscal lever and a 53 00:02:45,560 --> 00:02:47,400 Speaker 5: lot of people are looking at that and wondering are 54 00:02:47,400 --> 00:02:49,440 Speaker 5: we really going to fit the bill for it. Yesterday 55 00:02:49,440 --> 00:02:51,800 Speaker 5: we saw a pretty messy two year bond auction. Today 56 00:02:51,840 --> 00:02:54,640 Speaker 5: we've got five year Tomorrow, we have seven year notes 57 00:02:54,680 --> 00:02:57,079 Speaker 5: being sold by the US Treasury. How much are you 58 00:02:57,160 --> 00:03:01,680 Speaker 5: getting concerned about buying government debt at these levels given 59 00:03:01,720 --> 00:03:04,040 Speaker 5: the concern about how much that fiscal lever will be 60 00:03:04,080 --> 00:03:04,440 Speaker 5: pulled on. 61 00:03:05,720 --> 00:03:09,080 Speaker 3: Well, what I'm concerned about is more long run with 62 00:03:09,440 --> 00:03:12,520 Speaker 3: US fiscal position, which is we have rising pressures on 63 00:03:12,600 --> 00:03:17,760 Speaker 3: social security coming through. Interest costs are also rising, Defense costs. 64 00:03:17,440 --> 00:03:18,639 Speaker 4: Are high, and again this. 65 00:03:18,600 --> 00:03:21,280 Speaker 3: Is not a uniquely US situation. We see this in 66 00:03:21,320 --> 00:03:25,760 Speaker 3: developed markets across the entire world, So leaving or having 67 00:03:25,800 --> 00:03:29,640 Speaker 3: to rely on the fiscal lever necessitates big government and 68 00:03:29,720 --> 00:03:32,480 Speaker 3: big government becoming the new norm going forward. 69 00:03:32,720 --> 00:03:35,160 Speaker 4: And again it's not just a US issue, it's a 70 00:03:35,240 --> 00:03:36,800 Speaker 4: new global macro factor. 71 00:03:37,040 --> 00:03:39,680 Speaker 3: We've just switched our minds away from monetary policy being 72 00:03:39,680 --> 00:03:43,400 Speaker 3: a cyclical driver towards governments and fiscal being the cyclical driver. 73 00:03:43,760 --> 00:03:47,320 Speaker 3: The problem is that fiscal levers or governments tend to 74 00:03:47,360 --> 00:03:51,680 Speaker 3: be more politically motivated, so your cycle becomes more attached 75 00:03:51,720 --> 00:03:53,960 Speaker 3: to the political cycle as opposed. 76 00:03:53,600 --> 00:03:54,760 Speaker 4: To the economic one. 77 00:03:54,960 --> 00:03:57,840 Speaker 5: How much does your outlook change should this conflict go 78 00:03:57,920 --> 00:04:00,280 Speaker 5: on in the Middle East for a longer period of time. 79 00:04:00,600 --> 00:04:03,240 Speaker 5: In other words, you're talking about stagflation, like going to 80 00:04:03,280 --> 00:04:06,240 Speaker 5: stagflation medium. The rest of the world is talking about 81 00:04:06,440 --> 00:04:10,200 Speaker 5: runaway growth or recession, and there's nothing in between, depending 82 00:04:10,240 --> 00:04:12,560 Speaker 5: on whether there's de escalation or not. How do you 83 00:04:12,640 --> 00:04:16,760 Speaker 5: look at an ongoing prolonged enclosure of the Strait up 84 00:04:16,760 --> 00:04:23,080 Speaker 5: removes and conflict in Iran as pressuring stiflation media. 85 00:04:21,880 --> 00:04:25,040 Speaker 3: It's very uneven, and this is one of the challenges 86 00:04:25,080 --> 00:04:26,719 Speaker 3: with the shock of this magnitude. 87 00:04:26,760 --> 00:04:30,000 Speaker 4: Of course, we have net exporters of energy, so the. 88 00:04:30,000 --> 00:04:33,280 Speaker 3: United States Canada where GDP doesn't get impacted on the. 89 00:04:33,200 --> 00:04:35,160 Speaker 4: Top line to the same amount. And then you have 90 00:04:35,279 --> 00:04:36,320 Speaker 4: net importers. 91 00:04:36,560 --> 00:04:39,640 Speaker 3: Your net exporters, like the United States or Canada, for example, 92 00:04:39,839 --> 00:04:43,679 Speaker 3: they're dealing with predominantly a price shock. That's one type 93 00:04:43,680 --> 00:04:46,320 Speaker 3: of shock. But your net importers, well, they're dealing with 94 00:04:46,360 --> 00:04:50,040 Speaker 3: a price shock and a supply shock that's a whole 95 00:04:50,080 --> 00:04:52,599 Speaker 3: different ballgame than just an inflationary element. 96 00:04:52,640 --> 00:04:54,640 Speaker 4: That's being on top of what the US and. 97 00:04:54,680 --> 00:04:58,520 Speaker 3: Canada are currently facing underneath the surface. We also know 98 00:04:58,560 --> 00:05:02,719 Speaker 3: it's an incredibly uneven thought uneven shocked for consumers. So 99 00:05:02,839 --> 00:05:06,200 Speaker 3: on average, Americans, for example, spend less than two percent 100 00:05:06,279 --> 00:05:08,920 Speaker 3: of all of what they spend on gasoline, but it's 101 00:05:08,960 --> 00:05:11,880 Speaker 3: more near four percent for the bottom half of Americans. 102 00:05:12,160 --> 00:05:14,240 Speaker 3: And so what concerns me more is we've talked a 103 00:05:14,279 --> 00:05:16,440 Speaker 3: lot about things like case shapes, We've talked a lot 104 00:05:16,440 --> 00:05:18,760 Speaker 3: about the US separating from the rest of the world. 105 00:05:18,839 --> 00:05:20,880 Speaker 3: The longer this shock goes on, of course, it's going 106 00:05:20,920 --> 00:05:23,440 Speaker 3: to change forecast numbers, but there's something a little more 107 00:05:23,480 --> 00:05:26,520 Speaker 3: nefarious happening under the surface. We should be mindful of 108 00:05:26,520 --> 00:05:29,600 Speaker 3: what that divergence underneath the forecast is going to do 109 00:05:30,240 --> 00:05:33,280 Speaker 3: both to households but also to their sentiment, shocks, how 110 00:05:33,440 --> 00:05:36,400 Speaker 3: they vote, their big implications to these shops that are 111 00:05:36,520 --> 00:05:39,320 Speaker 3: very that create these divergences. 112 00:05:39,279 --> 00:05:42,719 Speaker 2: Stay with US, multile Impex. Savana's coming up off to this. 113 00:05:52,000 --> 00:05:54,800 Speaker 1: What we have is this administration potentially looking for this 114 00:05:54,920 --> 00:05:58,280 Speaker 1: diplomatic off ramp and the Associated press saying that via 115 00:05:58,360 --> 00:06:02,000 Speaker 1: Pakistani officials, the Iranians have received this plan, but it's 116 00:06:02,040 --> 00:06:04,200 Speaker 1: really unclear, and you hear that from the President even 117 00:06:04,279 --> 00:06:07,240 Speaker 1: yesterday saying we're unclear of who is running the country. 118 00:06:07,240 --> 00:06:11,760 Speaker 1: So it's unclear Jonathan, who exactly in Washington is talking 119 00:06:11,800 --> 00:06:14,920 Speaker 1: to who exactly in Tehran. And amidst all of this, 120 00:06:15,400 --> 00:06:18,159 Speaker 1: we still have the straight of her moves effectively shut, 121 00:06:18,279 --> 00:06:23,120 Speaker 1: especially for Western allies, as the Iranians continue to control 122 00:06:23,320 --> 00:06:25,800 Speaker 1: that key waterway. And that is the focus of this 123 00:06:25,839 --> 00:06:30,080 Speaker 1: morning's conversation with Ryan Peterson of Flexport, of course, the 124 00:06:30,120 --> 00:06:33,240 Speaker 1: global logistics company. He is here in Washington, DC. He's 125 00:06:33,279 --> 00:06:35,279 Speaker 1: a friend of the show, and I want to begin 126 00:06:35,320 --> 00:06:37,839 Speaker 1: with a trip you made to the White House this week. 127 00:06:38,040 --> 00:06:40,200 Speaker 1: You have been in discussions with this administration. What are 128 00:06:40,200 --> 00:06:42,799 Speaker 1: they telling you about what is going on in terms 129 00:06:42,800 --> 00:06:47,640 Speaker 1: of cargoes and shipping throughout these key waterways. 130 00:06:47,880 --> 00:06:50,040 Speaker 6: Yeah, thanks for having me on. Well, so actually a 131 00:06:50,040 --> 00:06:51,880 Speaker 6: lot of our conversations are about Terriss, but I did 132 00:06:51,960 --> 00:06:55,320 Speaker 6: get a little bit of insight into what's happening, especially 133 00:06:55,760 --> 00:07:00,680 Speaker 6: with jet fuel. With the accessibility of fuel on the 134 00:07:00,680 --> 00:07:03,839 Speaker 6: West Coast and in Alaska, that's been a major concern 135 00:07:03,880 --> 00:07:07,039 Speaker 6: for the administration to make sure that these areas get fuel. 136 00:07:07,080 --> 00:07:09,800 Speaker 6: And as you know, California shut down a lot of 137 00:07:09,800 --> 00:07:14,000 Speaker 6: our refineries in California where I live, and so there's 138 00:07:14,000 --> 00:07:16,240 Speaker 6: a real risk there because they don't have enough connectivity 139 00:07:16,280 --> 00:07:20,280 Speaker 6: to the rest of America's energy infrastructure. So they waved 140 00:07:20,280 --> 00:07:22,280 Speaker 6: the Jones Act. So the Jones Act is this act 141 00:07:22,320 --> 00:07:25,520 Speaker 6: that says that for domestic ocean freight. So if you 142 00:07:25,560 --> 00:07:30,200 Speaker 6: want to ship oil or refined products from Texas other 143 00:07:30,200 --> 00:07:33,280 Speaker 6: parts of the United States to California, or especially to Alaska, 144 00:07:33,320 --> 00:07:37,040 Speaker 6: because Anchorage is such an important air freight airport, you 145 00:07:37,080 --> 00:07:40,080 Speaker 6: can't do it on a foreign ship. That's what the 146 00:07:40,160 --> 00:07:43,520 Speaker 6: Jones Act said. So the President waved the Jones Act 147 00:07:43,640 --> 00:07:46,080 Speaker 6: to allow for these regions to get jet fuel from 148 00:07:46,120 --> 00:07:49,520 Speaker 6: other parts of our country on non US made ships, 149 00:07:49,560 --> 00:07:51,760 Speaker 6: which I think was a vital There was a real 150 00:07:51,800 --> 00:07:55,000 Speaker 6: fear that Anchorage Airport wouldn't have air freight, and a 151 00:07:55,040 --> 00:07:56,880 Speaker 6: lot of people don't know this, but Anchorage is probably 152 00:07:56,920 --> 00:08:00,320 Speaker 6: the most important cargo airport in the United States, as 153 00:08:00,680 --> 00:08:04,080 Speaker 6: cargo planes flying from Asia to the United States have 154 00:08:04,160 --> 00:08:05,680 Speaker 6: to stop in Anchorage to refuel. 155 00:08:06,040 --> 00:08:08,880 Speaker 1: What are companies your clients telling you right now, do 156 00:08:08,920 --> 00:08:11,120 Speaker 1: they feel like some of the pressure is easing or 157 00:08:11,160 --> 00:08:12,600 Speaker 1: things getting even more challenging. 158 00:08:12,720 --> 00:08:14,520 Speaker 6: There's something I'm getting more and more challenging. I mean, 159 00:08:14,560 --> 00:08:16,720 Speaker 6: the price of the price of air freight, especially has 160 00:08:16,760 --> 00:08:18,960 Speaker 6: gone through the roof. If you're shipping from Asia to 161 00:08:18,960 --> 00:08:22,160 Speaker 6: the United States, we're seeing prices have doubled since the 162 00:08:22,160 --> 00:08:24,480 Speaker 6: beginning of the month, since the start of the conflict. 163 00:08:25,320 --> 00:08:28,360 Speaker 6: Even that's carried over to the Asia to US trade lanes, 164 00:08:28,360 --> 00:08:32,160 Speaker 6: where air freight prices have gone up a lot around well, 165 00:08:32,800 --> 00:08:35,440 Speaker 6: initially it was around sixty percent. It's kind of stabilized 166 00:08:35,440 --> 00:08:37,800 Speaker 6: a little bit, but more like across all of the lanes, 167 00:08:37,880 --> 00:08:40,520 Speaker 6: Asia to US is up about twenty five percent. So 168 00:08:41,920 --> 00:08:43,920 Speaker 6: obviously you're going to hear about that, complaints about that, 169 00:08:44,000 --> 00:08:46,760 Speaker 6: but Actually the bigger problem is it's just available capacity. 170 00:08:46,920 --> 00:08:49,920 Speaker 6: Twenty percent of all the capacity an air cargo. It's 171 00:08:49,920 --> 00:08:53,080 Speaker 6: actually eighteen percent of the air cargo capacity in the 172 00:08:53,120 --> 00:08:55,680 Speaker 6: world is operated by Middle Eastern airlines. 173 00:08:55,559 --> 00:08:56,480 Speaker 2: So that's been caught off. 174 00:08:56,679 --> 00:08:59,760 Speaker 6: Yeah, I think Emirates, think Katar Airways at the HOD. 175 00:09:00,240 --> 00:09:04,480 Speaker 6: That probably includes SAD, the Saudi Airline, So that's a 176 00:09:04,520 --> 00:09:07,120 Speaker 6: lot of capacity. It's effectively removed from the market. They've 177 00:09:07,120 --> 00:09:09,680 Speaker 6: been operating limited flights. They've been trying to restore, but 178 00:09:09,720 --> 00:09:11,560 Speaker 6: every time they come back, there's like another attack at 179 00:09:11,559 --> 00:09:14,199 Speaker 6: the airport and they drop it again. So that's actually 180 00:09:14,240 --> 00:09:16,880 Speaker 6: made it very difficult to get air freight moving at all. 181 00:09:16,960 --> 00:09:19,000 Speaker 6: In some cases, there's just not enough capacity. 182 00:09:19,200 --> 00:09:21,280 Speaker 1: I want to briefly end on the point you made 183 00:09:21,320 --> 00:09:23,760 Speaker 1: about most of your conversation with the White Houses about tariffs, 184 00:09:23,800 --> 00:09:24,720 Speaker 1: about what exactly. 185 00:09:25,200 --> 00:09:28,600 Speaker 6: Yeah, well, we've been seeing a lot of tariff fraud. 186 00:09:29,840 --> 00:09:32,800 Speaker 6: The United States allows foreign companies to import goods into 187 00:09:32,840 --> 00:09:36,480 Speaker 6: the US without having any nexus any like a think 188 00:09:36,520 --> 00:09:38,679 Speaker 6: of an entity or an LLC or anything like that. 189 00:09:38,720 --> 00:09:40,679 Speaker 6: You can just foreign companies can just import into the 190 00:09:40,800 --> 00:09:43,960 Speaker 6: United States. I mean, so we've observed at Flexport a 191 00:09:44,000 --> 00:09:47,440 Speaker 6: huge percentage of trade has flipped to where the Chinese 192 00:09:47,440 --> 00:09:51,240 Speaker 6: companies are importing it with Chinese freight forwarders and under 193 00:09:51,320 --> 00:09:54,760 Speaker 6: declaring the commercial invoice value, effectively cheating on their terrafts. 194 00:09:54,760 --> 00:09:56,720 Speaker 6: So we've been calling attention to this and partnering with 195 00:09:56,760 --> 00:10:02,480 Speaker 6: them on how they might enforce this, and so that 196 00:10:02,840 --> 00:10:05,240 Speaker 6: was a big agenda point for me, is sharing what 197 00:10:05,240 --> 00:10:07,200 Speaker 6: we're seeing in the data how this is happening, but 198 00:10:07,280 --> 00:10:10,079 Speaker 6: also trying to learn what's going to happen with tariff refunds. 199 00:10:11,400 --> 00:10:14,200 Speaker 6: And as you know, the Supreme Court overturned the AIPA tariffs. 200 00:10:14,240 --> 00:10:16,559 Speaker 6: Is one hundred and sixty six billion dollars that companies 201 00:10:16,559 --> 00:10:21,080 Speaker 6: are owed and CBP has said publicly that only six 202 00:10:21,120 --> 00:10:24,360 Speaker 6: percent of companies have registered their bank account with the 203 00:10:24,400 --> 00:10:26,880 Speaker 6: government to receive these refunds. So that's something that flex 204 00:10:26,880 --> 00:10:28,600 Speaker 6: Sport has been all over trying to help companies get 205 00:10:28,600 --> 00:10:31,160 Speaker 6: their refunds back when when that process starts. 206 00:10:31,400 --> 00:10:34,079 Speaker 2: Stay with US multil index to fan it's coming up 207 00:10:34,400 --> 00:10:34,880 Speaker 2: off to this. 208 00:10:44,080 --> 00:10:46,679 Speaker 1: The Iranians are saying that these talks are illogical, and 209 00:10:46,760 --> 00:10:49,319 Speaker 1: a man that sits really at the center the intersection 210 00:10:49,400 --> 00:10:52,480 Speaker 1: of all of this has experienced now in prior experience, 211 00:10:52,679 --> 00:10:57,560 Speaker 1: whether it's geopolitics, financial markets, are actually a decorated combat veteran. 212 00:10:57,679 --> 00:11:01,920 Speaker 1: I am joined now by Senator David mccormy from Pennsylvania. Senator, 213 00:11:02,000 --> 00:11:04,040 Speaker 1: thank you so much for joining me, and good morning 214 00:11:04,040 --> 00:11:04,360 Speaker 1: to you. 215 00:11:05,120 --> 00:11:05,720 Speaker 7: Good morning. 216 00:11:07,120 --> 00:11:08,920 Speaker 1: So I'm not sure if you just saw the news, 217 00:11:08,960 --> 00:11:13,000 Speaker 1: but Iran has saying that these ceasefire talks are non 218 00:11:13,000 --> 00:11:16,160 Speaker 1: existed and they're calling what the US is calling for 219 00:11:16,559 --> 00:11:20,280 Speaker 1: as elogical. What is your understanding right now at the 220 00:11:20,280 --> 00:11:23,240 Speaker 1: White House is putting forward? You sit on the Senate 221 00:11:23,280 --> 00:11:27,040 Speaker 1: Foreign Relations Committee? Is the President buying time? Is this 222 00:11:27,120 --> 00:11:28,840 Speaker 1: diplomacy or is this a distraction? 223 00:11:30,000 --> 00:11:32,680 Speaker 7: Well, I wouldn't put much stock into what the Iranian 224 00:11:32,760 --> 00:11:35,480 Speaker 7: spokesman say. Think about this way. If you're the person 225 00:11:35,520 --> 00:11:38,640 Speaker 7: that's trying to negotiate some sort of endgame and you've 226 00:11:38,640 --> 00:11:43,439 Speaker 7: got a bunch of radicals as part of the constellation 227 00:11:43,520 --> 00:11:46,760 Speaker 7: of forces in Iran, you're certainly not going to present 228 00:11:46,840 --> 00:11:50,320 Speaker 7: yourself as the voice of reason. So a lot of 229 00:11:50,320 --> 00:11:52,600 Speaker 7: what's happening I think in the public domain shouldn't give 230 00:11:52,640 --> 00:11:55,360 Speaker 7: us too much insight into what's happening behind the scenes. 231 00:11:55,400 --> 00:11:58,400 Speaker 7: I think, stepping back bottom line, if you would have 232 00:11:58,400 --> 00:12:01,480 Speaker 7: said on the first day of common operations, where will 233 00:12:01,520 --> 00:12:04,360 Speaker 7: we be twenty twenty one days, twenty two days into this. 234 00:12:04,840 --> 00:12:08,280 Speaker 7: I think from a military perspective, we've made enormous progress. 235 00:12:08,400 --> 00:12:13,200 Speaker 7: We still have work to do, but we've eliminated ballistic missiles, drones, 236 00:12:13,520 --> 00:12:18,280 Speaker 7: manufacturing capability the Navy, and those are the goals that 237 00:12:18,320 --> 00:12:21,079 Speaker 7: President Trump set out, along with making sure Ron can 238 00:12:21,080 --> 00:12:24,240 Speaker 7: never get a nuclear weapon. So question one for America, 239 00:12:24,280 --> 00:12:26,280 Speaker 7: I think is where are we relative to those goals. 240 00:12:26,360 --> 00:12:27,920 Speaker 7: I think we've made a lot of progress, but we've 241 00:12:27,920 --> 00:12:31,240 Speaker 7: got to finish that job. And then second, we've got 242 00:12:31,240 --> 00:12:34,880 Speaker 7: to make sure we secure the Straits of Hormuz, and 243 00:12:34,920 --> 00:12:39,040 Speaker 7: I think there's multiple ways to try to lessen the 244 00:12:39,040 --> 00:12:42,040 Speaker 7: blow of an oil markets. One, the administration is doing 245 00:12:42,080 --> 00:12:44,240 Speaker 7: a lot of things to make sure there's adequate supply, 246 00:12:44,800 --> 00:12:46,840 Speaker 7: but inevitably we're going to have to be able to 247 00:12:47,040 --> 00:12:49,679 Speaker 7: show the markets and show the world that we can 248 00:12:49,720 --> 00:12:53,120 Speaker 7: put ships through the straits, and that's going to require 249 00:12:53,160 --> 00:12:56,440 Speaker 7: some combination of our allies working together with our military 250 00:12:56,480 --> 00:13:00,200 Speaker 7: to eliminate that threat. Once those two things happen, I 251 00:13:00,200 --> 00:13:03,120 Speaker 7: think we have a much more stable, secure situation, and 252 00:13:03,600 --> 00:13:05,480 Speaker 7: I think well, you know, we're on a path to 253 00:13:05,520 --> 00:13:07,679 Speaker 7: being able to look back and saying we've achieved the 254 00:13:07,720 --> 00:13:09,680 Speaker 7: objectives there, but obviously there's more. 255 00:13:09,520 --> 00:13:09,960 Speaker 6: Work to do. 256 00:13:11,000 --> 00:13:14,360 Speaker 1: We could that happen through this fifteen point plan the 257 00:13:14,400 --> 00:13:19,400 Speaker 1: administration has given the Iranians via Pakistani officials. 258 00:13:20,120 --> 00:13:22,400 Speaker 7: Yeah, I think it could. I mean, you know, the 259 00:13:23,040 --> 00:13:25,280 Speaker 7: most important goal of the United States, and it was 260 00:13:25,480 --> 00:13:28,560 Speaker 7: the goal from day one. This was a regime that 261 00:13:28,840 --> 00:13:32,319 Speaker 7: was underwriting to terrorist organizations around the world. It had 262 00:13:32,360 --> 00:13:34,720 Speaker 7: more American blood on its hands than any other country. 263 00:13:34,720 --> 00:13:37,720 Speaker 7: It was building up an enormous ballistic missile capability. To 264 00:13:37,760 --> 00:13:40,800 Speaker 7: think Iran was formidable today, imagine three years from now. 265 00:13:41,240 --> 00:13:43,320 Speaker 7: It had called America the Great Satan that I wanted 266 00:13:43,320 --> 00:13:45,160 Speaker 7: to destroy, and it was committed to a new groar weapon. 267 00:13:45,360 --> 00:13:50,080 Speaker 7: That was an unsustainable position. We had to eliminate that threat. 268 00:13:50,640 --> 00:13:54,520 Speaker 7: If that threat is eliminated and the Iranian regime, whatever 269 00:13:54,559 --> 00:13:57,480 Speaker 7: form it takes, is committed to not rebuilding nuclear weapons 270 00:13:57,480 --> 00:14:01,720 Speaker 7: and not restarting its ballistic missile that's the basis for 271 00:14:01,840 --> 00:14:04,920 Speaker 7: a negotiation. You know. The straits of hormous This is 272 00:14:06,080 --> 00:14:08,360 Speaker 7: I laugh when when I hear people saying, maybe they 273 00:14:08,360 --> 00:14:11,000 Speaker 7: didn't think of that. I mean, this has been the 274 00:14:11,040 --> 00:14:14,600 Speaker 7: strategic question for decades. When I deployed to the golf 275 00:14:14,640 --> 00:14:19,280 Speaker 7: in nineteen ninety, this was a primary consideration. Oil prices 276 00:14:19,400 --> 00:14:22,560 Speaker 7: were over one hundred dollars in today's dollars, and in 277 00:14:22,600 --> 00:14:25,160 Speaker 7: the financial crisis when I was the undersect for the Treasury, 278 00:14:25,720 --> 00:14:30,120 Speaker 7: oil prices hit two hundred dollars in today's prices. So 279 00:14:30,840 --> 00:14:33,920 Speaker 7: creating stability in the Straits and making sure it's secure 280 00:14:34,360 --> 00:14:37,240 Speaker 7: is a critical geopolitical objectives, and we're going to have 281 00:14:37,320 --> 00:14:40,800 Speaker 7: to We can't leave this situation until we're sure the 282 00:14:40,800 --> 00:14:44,560 Speaker 7: Straits are going to be secure, and certainly Iran is 283 00:14:44,560 --> 00:14:48,920 Speaker 7: a military threat is going to be dramatically diminished, which 284 00:14:49,040 --> 00:14:49,520 Speaker 7: was the goal. 285 00:14:50,560 --> 00:14:54,040 Speaker 1: I want to pick up on your pass your old division. 286 00:14:54,160 --> 00:14:57,840 Speaker 1: The eighty second Airborne is being deployed two thousand troops. 287 00:14:58,200 --> 00:15:00,880 Speaker 1: Is it your understanding that those SERVE members, along with 288 00:15:00,920 --> 00:15:04,240 Speaker 1: the two Marine Expeditionary units will be used to secure 289 00:15:04,280 --> 00:15:04,960 Speaker 1: the straight. 290 00:15:07,400 --> 00:15:09,360 Speaker 7: I think the President's doing exactly what he should do, 291 00:15:09,400 --> 00:15:15,200 Speaker 7: which is he's creating maximum optionality. Those forces in the 292 00:15:15,240 --> 00:15:18,680 Speaker 7: region relatively small numbers five or six thousand in total. 293 00:15:19,040 --> 00:15:21,040 Speaker 7: Once the eighty second gets there, they just give him 294 00:15:21,080 --> 00:15:25,040 Speaker 7: lots of optionality. There's all sorts of potential ways that 295 00:15:25,120 --> 00:15:28,840 Speaker 7: you might use the combination of air power, naval power, 296 00:15:29,080 --> 00:15:32,320 Speaker 7: and ground troops to secure the Straits. So I think 297 00:15:32,320 --> 00:15:35,800 Speaker 7: the president's smart to create options, and he's made the 298 00:15:35,840 --> 00:15:38,120 Speaker 7: objectives clear, which is, we got to get rid of 299 00:15:38,120 --> 00:15:42,320 Speaker 7: this military capacity to kill Americans, threaten our allies, and 300 00:15:42,840 --> 00:15:45,480 Speaker 7: we've got to have the straits secure and open to 301 00:15:45,520 --> 00:15:48,880 Speaker 7: global commerce. Those two things are critical. I also want 302 00:15:48,920 --> 00:15:50,880 Speaker 7: to make a point that if you look at this 303 00:15:50,960 --> 00:15:54,120 Speaker 7: situation compared to those past situations two thousand and eight 304 00:15:54,160 --> 00:15:57,520 Speaker 7: that I mentioned or nineteen ninety, what's different is the 305 00:15:57,600 --> 00:16:01,120 Speaker 7: commitment to energy dominance that we have here in America, 306 00:16:01,160 --> 00:16:02,880 Speaker 7: and I give President Trump a lot of credit for that. 307 00:16:02,920 --> 00:16:06,040 Speaker 7: We're a net exporter. We are well on the way 308 00:16:06,080 --> 00:16:09,520 Speaker 7: to building enormous capacity based on the steps that President 309 00:16:09,560 --> 00:16:12,800 Speaker 7: has taken. So we are more isolated from the shock 310 00:16:13,200 --> 00:16:15,080 Speaker 7: associated with what's going on in the Middle East than 311 00:16:15,080 --> 00:16:17,920 Speaker 7: we've ever been in the past. And others China and 312 00:16:17,920 --> 00:16:21,320 Speaker 7: Europe and others are not as isolated because they haven't 313 00:16:21,320 --> 00:16:24,080 Speaker 7: had that kind of capability and leadership that we have 314 00:16:24,120 --> 00:16:24,920 Speaker 7: in the United States. 315 00:16:26,160 --> 00:16:29,200 Speaker 1: Of course, your former job. Our audience knows you very well. 316 00:16:29,240 --> 00:16:32,640 Speaker 1: You ran Bridgewater Associates, this massive hedge fund. I just 317 00:16:32,640 --> 00:16:34,360 Speaker 1: would also love to get your take in terms of 318 00:16:34,360 --> 00:16:39,080 Speaker 1: what's going on with financial markets. Energy prices have been whipsawing. 319 00:16:39,160 --> 00:16:42,400 Speaker 1: We're seeing trading ranges you would normally see in a year, 320 00:16:42,600 --> 00:16:46,800 Speaker 1: even two years, that are happening within moments, especially most 321 00:16:46,880 --> 00:16:51,960 Speaker 1: recently regarding what's happening in the oil futures moment. Do 322 00:16:52,000 --> 00:16:55,440 Speaker 1: you understand exactly what is going on in terms of 323 00:16:55,640 --> 00:16:58,840 Speaker 1: the financial markets. Do you think they're too paying too 324 00:16:58,840 --> 00:17:02,320 Speaker 1: close attention to potentially what Trump says and not exactly 325 00:17:02,400 --> 00:17:02,960 Speaker 1: what he's doing. 326 00:17:04,600 --> 00:17:07,440 Speaker 7: Well, listen, I wouldn't be one to want to stand 327 00:17:07,480 --> 00:17:09,960 Speaker 7: here and try to predict markets, but I do think 328 00:17:10,400 --> 00:17:13,800 Speaker 7: if you look through this moment, so look weeks months 329 00:17:13,840 --> 00:17:16,359 Speaker 7: ahead and don't get caught up in the day to 330 00:17:16,440 --> 00:17:19,480 Speaker 7: day whip sawing, I think you can see a path 331 00:17:19,640 --> 00:17:24,320 Speaker 7: to a circumstance where energy markets more broadly and American 332 00:17:24,359 --> 00:17:27,520 Speaker 7: interests more specifically are in much better, a much better 333 00:17:27,560 --> 00:17:29,840 Speaker 7: situation than they were before the President took action in 334 00:17:29,920 --> 00:17:33,480 Speaker 7: Venezuela and in Iran. So imagine a world where Iran 335 00:17:33,560 --> 00:17:36,600 Speaker 7: no longer has the capacity to threaten the straits. The 336 00:17:36,640 --> 00:17:39,840 Speaker 7: straits are open, and so we have that constant supply 337 00:17:39,960 --> 00:17:43,200 Speaker 7: that goes through there with security. Thirty percent of the 338 00:17:43,200 --> 00:17:46,439 Speaker 7: oil reserves in the world are in Venezuela and Iran, 339 00:17:46,920 --> 00:17:50,600 Speaker 7: and those certainly Venezuela, but hopefully Iran will be much 340 00:17:50,640 --> 00:17:55,480 Speaker 7: more amendable pro Western when the dust settles. I'm not 341 00:17:55,480 --> 00:17:57,440 Speaker 7: trying to be too pollyannish here, but if you think 342 00:17:57,480 --> 00:18:00,600 Speaker 7: through the path of what we might see in three months, 343 00:18:00,640 --> 00:18:03,639 Speaker 7: six months, I think it's a much more stable world. 344 00:18:04,000 --> 00:18:06,159 Speaker 7: I think it's a much more stable Middle East. I 345 00:18:06,200 --> 00:18:08,479 Speaker 7: think the Straits of Hormouse are more secure than they 346 00:18:08,480 --> 00:18:11,959 Speaker 7: were before this started. And I think global oil markets 347 00:18:11,960 --> 00:18:15,600 Speaker 7: and global energy markets are much more stable. And again, 348 00:18:15,640 --> 00:18:17,880 Speaker 7: I want to come back to this. This happens within 349 00:18:17,920 --> 00:18:22,760 Speaker 7: the context of America Energy and Pennsylvania Energy. We're the 350 00:18:22,840 --> 00:18:26,159 Speaker 7: second largest energy producer in America. We're the fourth largest 351 00:18:26,200 --> 00:18:30,280 Speaker 7: natural gas reserves in the world. We're unlocking that potential. 352 00:18:30,359 --> 00:18:32,720 Speaker 7: So I would imagine again when the dust settles, that 353 00:18:32,840 --> 00:18:37,680 Speaker 7: Europe will be a much bigger buyer and recipient of 354 00:18:37,920 --> 00:18:41,320 Speaker 7: American energy because they've now seen some of the uncertainty 355 00:18:41,359 --> 00:18:44,000 Speaker 7: that goes with having Russia as a supplier, the Middle 356 00:18:44,040 --> 00:18:47,400 Speaker 7: East as a supplier, So I think specifically. 357 00:18:48,160 --> 00:18:50,520 Speaker 1: Says that are just specifically on the oil futures market, 358 00:18:50,520 --> 00:18:53,639 Speaker 1: there was a massive trade just minutes before the President's 359 00:18:53,640 --> 00:18:56,320 Speaker 1: truth came out, and we've had guests on this program, 360 00:18:56,359 --> 00:18:59,200 Speaker 1: some of your former colleagues in your old world saying 361 00:18:59,200 --> 00:19:02,320 Speaker 1: that is highly suspicious. At minimum, didn't want to go 362 00:19:02,359 --> 00:19:05,480 Speaker 1: far to say it's manipulation, but are you concern that 363 00:19:05,520 --> 00:19:09,080 Speaker 1: there has been manipulation when it comes to some of 364 00:19:09,119 --> 00:19:11,760 Speaker 1: the posts or statements we're seeing from the White House 365 00:19:11,800 --> 00:19:15,800 Speaker 1: and massive trades taken just before those moments. 366 00:19:17,119 --> 00:19:21,400 Speaker 7: Well, in general, without going specific to that, in general, 367 00:19:22,000 --> 00:19:26,639 Speaker 7: I'm concerned about the fact that information can be leaked 368 00:19:26,640 --> 00:19:29,800 Speaker 7: in a way out of the government or two public 369 00:19:29,800 --> 00:19:32,280 Speaker 7: officials in a way that people benefit from, whether it's 370 00:19:32,280 --> 00:19:35,040 Speaker 7: public officials or otherwise. I just cosponsored a piece of 371 00:19:35,119 --> 00:19:38,639 Speaker 7: legislation to eliminate the ability of members of Congress to 372 00:19:38,680 --> 00:19:41,720 Speaker 7: trade equities. Not because I think there's massive fraud going 373 00:19:41,760 --> 00:19:44,560 Speaker 7: on or something like that, but because even the perception 374 00:19:45,359 --> 00:19:49,679 Speaker 7: of people benefiting from insider information that resides within the 375 00:19:49,720 --> 00:19:54,200 Speaker 7: government I think is extremely problematic. So I can't comment 376 00:19:54,200 --> 00:19:56,120 Speaker 7: on the specifics of those trades, but what I will 377 00:19:56,119 --> 00:19:58,040 Speaker 7: comment on is I think there's a clear set of 378 00:19:58,080 --> 00:20:01,159 Speaker 7: rules and laws thatverybody needs to adhere to if you're 379 00:20:01,200 --> 00:20:03,280 Speaker 7: in public life. And then second, we also need to 380 00:20:03,280 --> 00:20:05,600 Speaker 7: worry about the perceptions associated with that and take the 381 00:20:05,640 --> 00:20:07,919 Speaker 7: extra mile to make sure that the public can be 382 00:20:07,960 --> 00:20:11,960 Speaker 7: confident that public officials are acting solely in the interest 383 00:20:12,040 --> 00:20:12,600 Speaker 7: of the public. 384 00:20:13,680 --> 00:20:14,959 Speaker 1: We hear a lot, and I've been hearing a lot 385 00:20:15,000 --> 00:20:17,840 Speaker 1: how the physical market is so different right now than 386 00:20:17,880 --> 00:20:20,159 Speaker 1: the paper market when it comes to energy. You mentioned 387 00:20:20,160 --> 00:20:22,400 Speaker 1: what is going on in terms of how America really 388 00:20:22,440 --> 00:20:24,040 Speaker 1: is a net ex border now, so we are a 389 00:20:24,040 --> 00:20:26,560 Speaker 1: little bit more insulated from this. But still, I'm sure 390 00:20:26,560 --> 00:20:29,960 Speaker 1: you've heard from constituents prices are going up, Gasoline is 391 00:20:30,000 --> 00:20:33,359 Speaker 1: a hair away from four dollars a gallon. How is 392 00:20:33,480 --> 00:20:35,320 Speaker 1: Congress set to address this? 393 00:20:36,160 --> 00:20:38,800 Speaker 7: Yeah, I'm glad you mentioned that. I should have mentioned 394 00:20:38,800 --> 00:20:43,120 Speaker 7: that that's a huge issue that's happening on the ground. 395 00:20:43,160 --> 00:20:46,679 Speaker 7: In Pennsylvania. The gallon of gas is about sixty cents 396 00:20:46,720 --> 00:20:50,720 Speaker 7: more than it was before this started. And if you're 397 00:20:50,720 --> 00:20:53,920 Speaker 7: a working family, the meeting income in Pennsylvany is about 398 00:20:53,920 --> 00:20:56,600 Speaker 7: fifty two thousand dollars a year. If you're a working family, 399 00:20:56,640 --> 00:21:03,000 Speaker 7: this pushs real pressure on you. We've made enormous progress 400 00:21:03,040 --> 00:21:06,199 Speaker 7: since the President took office on bringing down the rate 401 00:21:06,240 --> 00:21:08,560 Speaker 7: of inflation to about two point five it was on 402 00:21:08,640 --> 00:21:12,640 Speaker 7: average five during the Bide administration twenty two percent total, 403 00:21:13,119 --> 00:21:17,840 Speaker 7: and wages up, so wages are greater than inflation. But 404 00:21:18,880 --> 00:21:23,800 Speaker 7: people are still feeling pressures from housing costs, from healthcare 405 00:21:23,840 --> 00:21:26,520 Speaker 7: cost and from energy prices, and so there's a number 406 00:21:26,560 --> 00:21:29,160 Speaker 7: of things we're trying to do. The President just sat 407 00:21:29,200 --> 00:21:33,080 Speaker 7: down with a number of the governors from the PGM 408 00:21:33,160 --> 00:21:36,200 Speaker 7: states in the Northeast to try to bring down electricity prices. 409 00:21:36,720 --> 00:21:39,800 Speaker 7: These deals that are being done with the hyperscalers for 410 00:21:39,840 --> 00:21:42,760 Speaker 7: the big data centers. We're a big recipient of that investment. 411 00:21:43,119 --> 00:21:46,520 Speaker 7: They're now being done with a covenant that essentially ensures 412 00:21:46,560 --> 00:21:50,000 Speaker 7: that they bring energy that exceeds what their demand's going 413 00:21:50,000 --> 00:21:52,159 Speaker 7: to be, so it doesn't raise energy prices for folks. 414 00:21:52,520 --> 00:21:55,439 Speaker 7: So there's a number of things underway permitting reform to 415 00:21:55,520 --> 00:21:57,960 Speaker 7: bring down the price of energy. But in the near term, 416 00:21:58,400 --> 00:21:59,959 Speaker 7: I take your point, and it's a very real one. 417 00:22:00,119 --> 00:22:02,720 Speaker 7: People are feeling this pressure, and that's I think one 418 00:22:02,720 --> 00:22:05,159 Speaker 7: of the reasons we hope to get this thing wrapped 419 00:22:05,240 --> 00:22:07,639 Speaker 7: up in the coming weeks so we could have that 420 00:22:07,720 --> 00:22:10,159 Speaker 7: stability and get these price increases behind us and go 421 00:22:10,240 --> 00:22:10,800 Speaker 7: back to normal. 422 00:22:12,359 --> 00:22:14,639 Speaker 1: And some of our viewers, of course, might be and 423 00:22:14,680 --> 00:22:16,200 Speaker 1: I just want to end on this might be going 424 00:22:16,200 --> 00:22:19,320 Speaker 1: to the airport today and I'm sure you've seen the line, 425 00:22:19,440 --> 00:22:22,000 Speaker 1: some of them up to five hours long. What is 426 00:22:22,040 --> 00:22:25,439 Speaker 1: going on with funding DHS. You know, there's lots of 427 00:22:25,480 --> 00:22:29,399 Speaker 1: reporting that there is this GOP bill potentially where we 428 00:22:29,440 --> 00:22:33,280 Speaker 1: could fund DHS, but it wouldn't go to ICE enforcement. 429 00:22:33,320 --> 00:22:34,439 Speaker 1: Would you be a yes on that? 430 00:22:35,600 --> 00:22:38,639 Speaker 7: Well, you know, listen, and I hope you help me 431 00:22:38,800 --> 00:22:40,600 Speaker 7: be back to my programmer. You can you can test 432 00:22:40,640 --> 00:22:42,439 Speaker 7: this sometime down the road if this ever happens. But 433 00:22:42,480 --> 00:22:44,760 Speaker 7: whether I'm a Republican or Democrat in the majority of 434 00:22:44,760 --> 00:22:48,320 Speaker 7: the minority, I will never vote to defund the government 435 00:22:48,400 --> 00:22:51,240 Speaker 7: or not fund the government. This is a it's a 436 00:22:51,280 --> 00:22:54,000 Speaker 7: real disgrace, and this is the second time it happened. 437 00:22:54,200 --> 00:22:56,680 Speaker 7: And what happens is people, the Democrats are trying to 438 00:22:56,760 --> 00:22:59,240 Speaker 7: use this as political leverage to get reforms in ICE 439 00:22:59,760 --> 00:23:01,679 Speaker 7: and the people that are suffering. Are the members of 440 00:23:01,760 --> 00:23:05,960 Speaker 7: TSA or the Coastguard, the Secret Service SISA, which is 441 00:23:06,600 --> 00:23:10,960 Speaker 7: which is the Homeland Security Cyber Office. The bottom line 442 00:23:10,960 --> 00:23:14,480 Speaker 7: here is this is creating additional risk for Americans because 443 00:23:14,480 --> 00:23:16,520 Speaker 7: the threat levels up based on what's going on in 444 00:23:16,520 --> 00:23:19,600 Speaker 7: the Middle East. It's a huge burden on those TSA agents. 445 00:23:19,640 --> 00:23:22,119 Speaker 7: We've got to call in rate in Philadelphia about twenty 446 00:23:22,119 --> 00:23:24,520 Speaker 7: five percent, So twenty five percent of people aren't coming 447 00:23:24,560 --> 00:23:27,280 Speaker 7: to work. They have to go earn money elsewhere, and 448 00:23:27,320 --> 00:23:29,639 Speaker 7: it's a huge burden. I flew on Monday. It was 449 00:23:29,680 --> 00:23:31,760 Speaker 7: a disaster. I had flights canceled. I said on the 450 00:23:31,840 --> 00:23:34,320 Speaker 7: runway it was a six hour trip that took us. 451 00:23:34,400 --> 00:23:35,440 Speaker 1: It sounds like you're a yes. 452 00:23:37,000 --> 00:23:39,560 Speaker 7: I am a yes. Sounds like you're cost We've got 453 00:23:39,600 --> 00:23:44,200 Speaker 7: to fund the government, absolutely, We've got to fund homeland security. 454 00:23:43,560 --> 00:23:47,080 Speaker 7: They reforms that the Democrats are talking about, many of 455 00:23:47,119 --> 00:23:50,359 Speaker 7: them were already in the bill body cams, money for 456 00:23:50,520 --> 00:23:53,800 Speaker 7: de escalation training. The President already put forward a set 457 00:23:53,840 --> 00:23:57,360 Speaker 7: of performs. This is political theater. This is not good policy, 458 00:23:57,400 --> 00:23:58,960 Speaker 7: and we got to get behind us. I think the 459 00:23:59,000 --> 00:24:02,200 Speaker 7: American people are right incredibly frustrated, as am. 460 00:24:02,080 --> 00:24:06,439 Speaker 2: I this is the Bloomberg Surveillance podcast, bringing you the 461 00:24:06,480 --> 00:24:09,760 Speaker 2: best in markets, economics, a gio politics. You can watch 462 00:24:09,760 --> 00:24:12,520 Speaker 2: the show live on Bloomberg TV weekday mornings from six 463 00:24:12,560 --> 00:24:16,960 Speaker 2: am to nine am Eastern. Subscribe to the podcast on Apple, Spotify, 464 00:24:17,119 --> 00:24:19,320 Speaker 2: or anywhere else you listen, and as always, on the 465 00:24:19,359 --> 00:24:21,760 Speaker 2: Bloomberg Terminal and the Bloomberg Business app.