1 00:00:02,520 --> 00:00:10,119 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,119 --> 00:00:13,880 Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at 3 00:00:13,920 --> 00:00:17,520 Speaker 1: noon and five pm Eastern on Almacarclay and Android Auto 4 00:00:17,520 --> 00:00:20,680 Speaker 1: with the Bloomberg Business App. Listen on demand wherever you 5 00:00:20,720 --> 00:00:23,760 Speaker 1: get your podcasts, or watch us live on YouTube. 6 00:00:25,000 --> 00:00:25,840 Speaker 2: Good to see you. 7 00:00:25,840 --> 00:00:27,880 Speaker 3: On the Wednesday edition of Balance of Power here on 8 00:00:27,920 --> 00:00:31,240 Speaker 3: Bloomberg Radio. On your satellite radio, we're always on channel 9 00:00:31,280 --> 00:00:33,040 Speaker 3: one twenty one, and of course you can watch us 10 00:00:33,040 --> 00:00:36,840 Speaker 3: on YouTube right now search Bloomberg Business News Live as well. 11 00:00:36,880 --> 00:00:40,280 Speaker 3: Bloomberg Originals carrying the program, which is why you can't 12 00:00:40,360 --> 00:00:43,120 Speaker 3: hide from us here. We're talking about something that will 13 00:00:43,120 --> 00:00:45,920 Speaker 3: sound very familiar to you. The government is shut down 14 00:00:45,960 --> 00:00:48,240 Speaker 3: and now we're counting up to twenty two days. 15 00:00:48,720 --> 00:00:50,320 Speaker 2: We have no resolution in sight. 16 00:00:50,720 --> 00:00:52,880 Speaker 3: We're going to go through the whole process again today 17 00:00:52,920 --> 00:00:56,000 Speaker 3: by voting knowing that the bill is going to fail. 18 00:00:56,360 --> 00:00:57,200 Speaker 2: If you're playing. 19 00:00:56,960 --> 00:00:59,280 Speaker 3: Along on your home game, this would be the twelfth 20 00:00:59,320 --> 00:01:03,160 Speaker 3: swing at the ball at some point today, and again 21 00:01:03,280 --> 00:01:05,840 Speaker 3: the result is going to be the same. House is 22 00:01:05,880 --> 00:01:08,520 Speaker 3: not in session. A lot of lawmakers are in town though, 23 00:01:08,560 --> 00:01:09,880 Speaker 3: as we're going to prove to you over the course 24 00:01:09,920 --> 00:01:12,759 Speaker 3: of this broadcast. Well, here's Speaker Mike Johnson from earlier 25 00:01:12,760 --> 00:01:13,240 Speaker 3: this morning. 26 00:01:14,319 --> 00:01:18,560 Speaker 4: Republicans cannot and will not solve it in a backroom deal. 27 00:01:19,080 --> 00:01:21,680 Speaker 4: Chuck Schumer has been suggesting that four leaders should go 28 00:01:21,760 --> 00:01:23,760 Speaker 4: into a smoke filled backroom like they used to do 29 00:01:23,800 --> 00:01:26,920 Speaker 4: in the old days and create this solution. It's not 30 00:01:27,000 --> 00:01:30,120 Speaker 4: a possible thing to do. It was never appropriate. It's 31 00:01:30,160 --> 00:01:34,000 Speaker 4: not possible to put on a continuing resolution because it's 32 00:01:34,040 --> 00:01:35,200 Speaker 4: such a complex issue. 33 00:01:36,480 --> 00:01:38,720 Speaker 3: If it means getting the government back open, we might 34 00:01:38,840 --> 00:01:41,800 Speaker 3: just take the smoke filled room. Kevin Brady knows a 35 00:01:41,840 --> 00:01:45,360 Speaker 3: little bit about this stuff. He's survived more shutdowns than 36 00:01:45,480 --> 00:01:48,760 Speaker 3: most of us even know about. Former Republican congressman from Texas, 37 00:01:48,760 --> 00:01:52,600 Speaker 3: of course, who chaired the important House Ways and Means Committee. 38 00:01:52,600 --> 00:01:55,720 Speaker 3: He's now spokesperson for the Alliance for Competitive Taxation and 39 00:01:55,760 --> 00:01:56,200 Speaker 3: with us. 40 00:01:56,080 --> 00:01:58,320 Speaker 2: Here in our Washington Bureau. Mister chairman, it's great to 41 00:01:58,320 --> 00:01:58,520 Speaker 2: see you. 42 00:01:58,560 --> 00:02:00,840 Speaker 3: Good to see it. Welcome Asterberg. You must be just 43 00:02:00,840 --> 00:02:03,400 Speaker 3: shaking your head watching this. This is the reason I'm guessing, 44 00:02:03,480 --> 00:02:05,920 Speaker 3: in part why you're not here. I want to go 45 00:02:06,000 --> 00:02:08,360 Speaker 3: through the anatomy of a shutdown with you. Because you 46 00:02:08,600 --> 00:02:11,040 Speaker 3: obviously know this is going to resolve at some point. 47 00:02:11,120 --> 00:02:14,119 Speaker 3: But everyone's banging their head together saying it's different this time. 48 00:02:14,320 --> 00:02:18,000 Speaker 5: You know, I don't know. It feels different back home. 49 00:02:18,280 --> 00:02:20,560 Speaker 5: I'll tell you. It doesn't feel as urgent, you know 50 00:02:20,600 --> 00:02:20,919 Speaker 5: what I mean. 51 00:02:21,600 --> 00:02:24,120 Speaker 6: People seem to be more calm about I think the 52 00:02:24,160 --> 00:02:26,520 Speaker 6: government has tried to offset a lot of things that 53 00:02:26,560 --> 00:02:29,320 Speaker 6: bother people in daily lives, so it doesn't impact them 54 00:02:29,600 --> 00:02:33,480 Speaker 6: so much, and so that that's very odd to me. 55 00:02:33,840 --> 00:02:37,560 Speaker 6: I think the dynamics of the shutdown are very traditional. 56 00:02:38,000 --> 00:02:40,320 Speaker 6: The party of the power, the party out of power, 57 00:02:40,360 --> 00:02:43,680 Speaker 6: has to show their fighting yep, for their political base. Shutdown, 58 00:02:44,040 --> 00:02:47,480 Speaker 6: while not smart, is right there and an opportunity, and 59 00:02:47,560 --> 00:02:51,640 Speaker 6: so all those dynamics are working. This big surprise obviously 60 00:02:51,680 --> 00:02:55,360 Speaker 6: our Republicans, you know, who just offered a seven week 61 00:02:55,840 --> 00:02:59,320 Speaker 6: you know, let's give ourselves some time for appropriators and 62 00:02:59,360 --> 00:03:02,079 Speaker 6: for the healthcare folks who work through these Affordable Care 63 00:03:02,120 --> 00:03:06,519 Speaker 6: Act premiums, and so yeah, I just wondered, what the 64 00:03:06,600 --> 00:03:08,000 Speaker 6: heck I'm sorry about that. 65 00:03:08,440 --> 00:03:11,079 Speaker 5: I think ironically. 66 00:03:11,720 --> 00:03:15,160 Speaker 6: The speaker kind of reference it takes serious negotiations because 67 00:03:15,520 --> 00:03:18,200 Speaker 6: the goals are to fund the government fully for the 68 00:03:18,240 --> 00:03:22,520 Speaker 6: next year. Job one there in the original settle was 69 00:03:22,600 --> 00:03:25,680 Speaker 6: by seven weeks for everyone to get to the table. Second, 70 00:03:25,680 --> 00:03:30,080 Speaker 6: obviously high power for the Democrats are ACA premiums. You know, 71 00:03:30,160 --> 00:03:33,160 Speaker 6: I think there's acknowledgment although Republicans have never voted for 72 00:03:33,240 --> 00:03:36,600 Speaker 6: it and never voted for the covid era premiums, that 73 00:03:36,760 --> 00:03:39,960 Speaker 6: something has to be done. So I think there's serious 74 00:03:40,000 --> 00:03:42,800 Speaker 6: negotiators in the wings. Yes, you're ready to sit down. 75 00:03:42,880 --> 00:03:47,480 Speaker 6: So I really think, ironically, had the Democrats accepted the 76 00:03:47,480 --> 00:03:50,680 Speaker 6: original seven weeks, they'd be in those serious negotiations. 77 00:03:50,880 --> 00:03:52,200 Speaker 5: Politics interfered with that. 78 00:03:52,440 --> 00:03:56,480 Speaker 6: I think the sooner they can find that excuse to 79 00:03:56,960 --> 00:04:00,720 Speaker 6: buy both parties some more times, it sounds like November 80 00:04:00,720 --> 00:04:04,080 Speaker 6: twenty first. You know, they'll need a little more time beyond. 81 00:04:03,760 --> 00:04:05,360 Speaker 5: That, that's for sure, get this done. 82 00:04:05,440 --> 00:04:08,560 Speaker 3: So about November first, is that what shakes this loose? 83 00:04:08,640 --> 00:04:11,480 Speaker 3: The snap benefits expiring the open enrollment beginning? 84 00:04:11,600 --> 00:04:15,640 Speaker 6: Yes, perhaps, you know, if there's no light at the 85 00:04:15,720 --> 00:04:19,719 Speaker 6: end of the tunnel, Yeah, you can. You can go 86 00:04:19,880 --> 00:04:22,239 Speaker 6: back retroactively on a lot of these things at presence 87 00:04:22,520 --> 00:04:24,680 Speaker 6: finding money in different pockets. 88 00:04:24,680 --> 00:04:26,520 Speaker 2: Why it feels less urgent, I think so too. I 89 00:04:26,560 --> 00:04:27,760 Speaker 2: think the troops right. 90 00:04:27,680 --> 00:04:30,520 Speaker 3: Now, you've got federal law enforcement. Obviously, you've got a 91 00:04:30,520 --> 00:04:32,920 Speaker 3: lot of fur load workers. But it's taken a couple 92 00:04:33,000 --> 00:04:34,440 Speaker 3: of pain points off the table. 93 00:04:34,560 --> 00:04:35,240 Speaker 5: Yeah, it really has. 94 00:04:35,240 --> 00:04:38,240 Speaker 6: And normally those show up very quickly and you can't 95 00:04:38,279 --> 00:04:42,039 Speaker 6: predict what that pain point will be. Sometimes it's the parks, 96 00:04:42,440 --> 00:04:45,440 Speaker 6: you know, today it feels a little like air travel. 97 00:04:45,400 --> 00:04:46,880 Speaker 5: Sure, you know, is a little more. 98 00:04:47,200 --> 00:04:48,679 Speaker 2: You get into town all right, where you're delayed. 99 00:04:48,680 --> 00:04:51,760 Speaker 6: You know, I've been traveling a lot, thankfully. I actually 100 00:04:52,240 --> 00:04:54,400 Speaker 6: snuck on a train today in New York. 101 00:04:54,720 --> 00:04:56,880 Speaker 2: It's got a good ram track. I'm guessing Yeah, in 102 00:04:57,240 --> 00:04:58,120 Speaker 2: a strange way. 103 00:04:58,040 --> 00:04:58,480 Speaker 5: No doubt. 104 00:04:58,600 --> 00:05:02,320 Speaker 6: But yeah, there's there will be pain points that start 105 00:05:02,360 --> 00:05:03,000 Speaker 6: to emerge. 106 00:05:03,480 --> 00:05:05,680 Speaker 3: So what do you think of the calculation to keep 107 00:05:05,720 --> 00:05:08,279 Speaker 3: the house out? And it's interesting because you're probably seeing 108 00:05:08,360 --> 00:05:11,479 Speaker 3: lots of Republican members, a lot of them are in town, 109 00:05:11,720 --> 00:05:14,160 Speaker 3: just not in session. And the speaker says, we did 110 00:05:14,200 --> 00:05:16,680 Speaker 3: our work, and that is a point that a lot 111 00:05:16,720 --> 00:05:19,359 Speaker 3: of people understand. But twenty two days later, do we 112 00:05:19,400 --> 00:05:20,440 Speaker 3: need a different approach? 113 00:05:20,600 --> 00:05:20,840 Speaker 7: Yeah? 114 00:05:21,000 --> 00:05:24,400 Speaker 6: So I don't know, to be honest, they did their job, 115 00:05:24,520 --> 00:05:28,440 Speaker 6: they went back home. They I know Republicans in Texas. 116 00:05:28,440 --> 00:05:31,320 Speaker 6: But others they're working their districts, they're out there doing it. 117 00:05:31,400 --> 00:05:33,760 Speaker 6: But I think they're just antsy, you know, to. 118 00:05:33,680 --> 00:05:34,320 Speaker 5: Get a solution. 119 00:05:34,480 --> 00:05:36,600 Speaker 6: So coming back to Washington and see if there's any 120 00:05:36,640 --> 00:05:39,160 Speaker 6: way they can be of help. What I do know 121 00:05:39,279 --> 00:05:42,080 Speaker 6: usually is if you bring everyone back and the government 122 00:05:42,160 --> 00:05:45,760 Speaker 6: shut down, it's just press from eight in the morning 123 00:05:45,839 --> 00:05:47,560 Speaker 6: till ten at night, you know what I mean. 124 00:05:47,680 --> 00:05:50,479 Speaker 5: And that's kind of the whole purpose of it. I 125 00:05:50,520 --> 00:05:54,200 Speaker 5: don't know that that solves many things, to be honest. 126 00:05:54,279 --> 00:05:56,760 Speaker 3: You think about the stages of grief, there's sort of 127 00:05:56,800 --> 00:06:00,320 Speaker 3: like the stages of politics and a shutdown. We got 128 00:06:00,320 --> 00:06:02,719 Speaker 3: through the denial of the sadness of the gangor or whatever. 129 00:06:03,440 --> 00:06:05,920 Speaker 3: How does this unravel? Because you've been behind the scenes 130 00:06:05,920 --> 00:06:08,360 Speaker 3: for some well, the longest shut down in American history 131 00:06:08,400 --> 00:06:11,839 Speaker 3: actually in the first Trump administration, you talked about people 132 00:06:11,839 --> 00:06:13,880 Speaker 3: in the wings. Does it start with that small chatter 133 00:06:13,960 --> 00:06:15,640 Speaker 3: and then you have to convince the leaders to get 134 00:06:15,640 --> 00:06:16,320 Speaker 3: people in a room? 135 00:06:16,360 --> 00:06:19,120 Speaker 5: How will this No, it's really kind of the opposite 136 00:06:19,120 --> 00:06:19,599 Speaker 5: to leaders. 137 00:06:20,279 --> 00:06:24,200 Speaker 6: Find the folks, like the appropriators, the key appropriators, get 138 00:06:24,200 --> 00:06:25,880 Speaker 6: them in a room, have those conversations. 139 00:06:25,880 --> 00:06:27,880 Speaker 5: But going communicating with your. 140 00:06:27,720 --> 00:06:30,279 Speaker 6: Conference, you know, I mean, you've got to be lockstep 141 00:06:30,360 --> 00:06:31,240 Speaker 6: with where they're at. 142 00:06:31,440 --> 00:06:35,159 Speaker 5: I think that's key. You pull the healthcare folks. 143 00:06:35,680 --> 00:06:39,279 Speaker 6: And each party has its wings that will be in 144 00:06:39,360 --> 00:06:42,560 Speaker 6: this near zero majority. Have to be part of that conversation, 145 00:06:42,800 --> 00:06:45,080 Speaker 6: you know what I mean, whether you're Freedom Caucus or 146 00:06:45,120 --> 00:06:48,320 Speaker 6: the most progressive, you're going to be part of this conversation. 147 00:06:48,480 --> 00:06:53,960 Speaker 6: So obviously leadership is key people wanting to get to 148 00:06:54,000 --> 00:06:58,480 Speaker 6: a solution. I think two things will drive the appropriations process. One, 149 00:06:59,000 --> 00:07:01,919 Speaker 6: we are in a we're in a dangerous world, rebuilding 150 00:07:01,920 --> 00:07:03,799 Speaker 6: our defense, our weapons systems. 151 00:07:03,880 --> 00:07:05,240 Speaker 5: You just talked about it a minute ago. 152 00:07:05,600 --> 00:07:08,440 Speaker 6: You know what about all the backlog of ships and 153 00:07:08,560 --> 00:07:10,760 Speaker 6: weapons that we need going to be key to We 154 00:07:10,800 --> 00:07:13,480 Speaker 6: live in the deficit world. You know, our government is 155 00:07:14,080 --> 00:07:16,920 Speaker 6: forty percent bigger than it was just a few years ago, 156 00:07:16,960 --> 00:07:21,080 Speaker 6: and it was big then, and so we Republicans have 157 00:07:21,200 --> 00:07:24,600 Speaker 6: already shown they want to take steps side direction. It'll 158 00:07:24,600 --> 00:07:28,120 Speaker 6: be a hard battle, but I think that that element is. 159 00:07:28,120 --> 00:07:29,040 Speaker 5: Part of the conversation. 160 00:07:29,200 --> 00:07:32,400 Speaker 6: With these ACA premiums, you know, if those are going 161 00:07:32,440 --> 00:07:35,480 Speaker 6: to be reformed, if there's going to be some Republican 162 00:07:35,520 --> 00:07:39,160 Speaker 6: health care priorities in there, but it costs. I think 163 00:07:39,200 --> 00:07:41,840 Speaker 6: that's going to have to be subtracted, you know, from 164 00:07:41,880 --> 00:07:43,960 Speaker 6: the existing budget. I mean, it kind of makes sense. 165 00:07:44,280 --> 00:07:47,080 Speaker 6: You've got to sort of be more responsible there. So 166 00:07:47,320 --> 00:07:51,800 Speaker 6: I think the sooner Democrats can find a way to 167 00:07:53,040 --> 00:07:56,840 Speaker 6: temporarily extend the government. I think the sooner the serious 168 00:07:56,840 --> 00:07:57,760 Speaker 6: negotiations occur. 169 00:07:57,920 --> 00:07:59,640 Speaker 2: How did we know Kevin Brady would walk in and 170 00:07:59,680 --> 00:07:59,960 Speaker 2: solve it? 171 00:08:00,080 --> 00:08:02,520 Speaker 5: Soul things I think there are. 172 00:08:04,120 --> 00:08:08,160 Speaker 3: Well, So here's the question that's now making everyone's head 173 00:08:08,160 --> 00:08:11,000 Speaker 3: explode in Washington. And when we ask lawmakers, they say 174 00:08:11,080 --> 00:08:13,880 Speaker 3: right now that the idea is blowing people's minds, and 175 00:08:13,920 --> 00:08:17,600 Speaker 3: that's a year long cr John Thune went there at 176 00:08:17,720 --> 00:08:22,360 Speaker 3: least uh I tacitly will say the other day. White 177 00:08:22,400 --> 00:08:24,280 Speaker 3: House was suggesting it a couple of months ago. You 178 00:08:24,320 --> 00:08:26,120 Speaker 3: talk about Pentagon hawks. 179 00:08:26,480 --> 00:08:28,440 Speaker 2: They won't want any part of that. But is that 180 00:08:28,480 --> 00:08:30,320 Speaker 2: a potential solution, I hope not. 181 00:08:30,880 --> 00:08:33,360 Speaker 5: I think Leader Thune has a great sense here. 182 00:08:33,440 --> 00:08:37,600 Speaker 6: His point is, if this just keeps dragging on in appropriators, 183 00:08:37,600 --> 00:08:40,640 Speaker 6: if they'd never get agreement, that is not every two months. 184 00:08:40,679 --> 00:08:42,960 Speaker 6: Oh yeah, so you've got to go to that. But 185 00:08:43,000 --> 00:08:45,400 Speaker 6: that is the worst case scenario. 186 00:08:44,920 --> 00:08:46,840 Speaker 2: Because you made it as a cut, right is that why? 187 00:08:47,120 --> 00:08:49,840 Speaker 6: Well, some seat is cut, some seat is extending the 188 00:08:50,200 --> 00:08:52,560 Speaker 6: inside of the government. And if you recalled, there was a 189 00:08:52,559 --> 00:08:55,760 Speaker 6: period where I think we did CRS for four years 190 00:08:55,920 --> 00:08:59,439 Speaker 6: literally working off a budget that outdated. Behind that, I 191 00:08:59,440 --> 00:09:02,559 Speaker 6: don't think any anyone wants to go there, certainly right 192 00:09:02,600 --> 00:09:05,080 Speaker 6: now when the world is changing by the hour. Yeah, 193 00:09:05,200 --> 00:09:09,560 Speaker 6: it feels like so. I hope not, but it's a reality. 194 00:09:09,600 --> 00:09:12,920 Speaker 3: What's the chance this goes to a new record or 195 00:09:12,960 --> 00:09:16,440 Speaker 3: we're talking about this over Turkey on Thanksgiving or even 196 00:09:16,440 --> 00:09:17,880 Speaker 3: the end of the year, mister chairman. 197 00:09:18,320 --> 00:09:23,200 Speaker 6: Yeah, you know, part of the theater of a shutdown 198 00:09:23,640 --> 00:09:26,120 Speaker 6: is being able to claim you've won. Whether you do 199 00:09:26,320 --> 00:09:30,200 Speaker 6: or not, almost no one does in these I think 200 00:09:30,320 --> 00:09:34,040 Speaker 6: every party is zero for everything on this, But some 201 00:09:35,480 --> 00:09:38,080 Speaker 6: want to set a new record for a shutdown saying 202 00:09:38,280 --> 00:09:39,240 Speaker 6: this is how we're fighting. 203 00:09:40,320 --> 00:09:42,560 Speaker 5: That just hurts a lot of people. I'm hopeful that's 204 00:09:42,559 --> 00:09:43,040 Speaker 5: not the case. 205 00:09:43,080 --> 00:09:46,840 Speaker 3: It feels dangerous. You're obviously talking about taxes. We spent 206 00:09:46,960 --> 00:09:48,760 Speaker 3: a lot of time over the summer talking about the 207 00:09:48,760 --> 00:09:50,880 Speaker 3: twenty seventeen tax cuts having been extended. 208 00:09:51,280 --> 00:09:54,800 Speaker 2: You're looking at. 209 00:09:53,679 --> 00:09:56,920 Speaker 3: Redrawing or rewriting the USMCA right now as part of 210 00:09:56,920 --> 00:09:59,400 Speaker 3: your portfolio. How does a shutdown like this in a 211 00:09:59,520 --> 00:10:02,280 Speaker 3: Romanium mom complicate all of this work? 212 00:10:02,360 --> 00:10:04,280 Speaker 5: Yeah, none of it helps us. 213 00:10:04,360 --> 00:10:08,960 Speaker 6: Mexico Canada agreement the President modernized in twenty twenty is 214 00:10:09,000 --> 00:10:12,680 Speaker 6: the most consequential trade agreement on the planet for the 215 00:10:12,760 --> 00:10:17,280 Speaker 6: three countries. It's a reason we've survived global recessions better. 216 00:10:17,600 --> 00:10:21,280 Speaker 6: We're more competitive against China, more affordable, and for the 217 00:10:21,400 --> 00:10:26,040 Speaker 6: US this agreement is crucial because Mexico and Canada together 218 00:10:27,080 --> 00:10:28,760 Speaker 6: are our best customers. 219 00:10:29,120 --> 00:10:30,040 Speaker 5: They buy five. 220 00:10:29,840 --> 00:10:33,520 Speaker 6: Times more than any other country of Made in America goods. Secondly, 221 00:10:33,720 --> 00:10:37,760 Speaker 6: there are biggest investors now in US manufacturing, US technology 222 00:10:37,920 --> 00:10:41,520 Speaker 6: and their best suppliers, so it's crucial we preserve and 223 00:10:41,600 --> 00:10:42,559 Speaker 6: extend this agreement. 224 00:10:42,600 --> 00:10:44,880 Speaker 2: Well, I appreciate that. It's great to have you back 225 00:10:44,880 --> 00:10:45,120 Speaker 2: with us. 226 00:10:45,160 --> 00:10:47,080 Speaker 3: Let's get to see you the conversation because that's going 227 00:10:47,120 --> 00:10:49,080 Speaker 3: to be one that gets a lot of talk coming 228 00:10:49,160 --> 00:10:52,160 Speaker 3: up in the months ahead. Kevin Brady, former Republican Congressman, 229 00:10:52,240 --> 00:10:54,640 Speaker 3: former Chairman House Ways and means from the great State 230 00:10:54,640 --> 00:10:56,079 Speaker 3: of Texas with us here, stay with. 231 00:10:56,120 --> 00:10:58,320 Speaker 2: Us on balance of power. We'll have much more coming 232 00:10:58,400 --> 00:10:59,119 Speaker 2: up after. 233 00:10:58,880 --> 00:11:06,360 Speaker 1: This you're listening to the Bloomberg Balance of Power podcast. 234 00:11:06,600 --> 00:11:09,720 Speaker 1: Catch us live weekdays at noon and five pm Eastern 235 00:11:09,880 --> 00:11:13,319 Speaker 1: on Apple Cockway and Android Auto with the Bloomberg Business App. 236 00:11:13,360 --> 00:11:16,360 Speaker 1: You can also listen live on Amazon Alexa from our 237 00:11:16,400 --> 00:11:17,720 Speaker 1: flagship New York station. 238 00:11:18,240 --> 00:11:20,920 Speaker 2: Just say Alexa play Bloomberg eleven thirty. 239 00:11:22,360 --> 00:11:25,400 Speaker 8: We're joined now by Congressman Jason Smith. He's a Republican 240 00:11:25,559 --> 00:11:29,720 Speaker 8: representing Missouri's eighth congressional district and chairman of the Houseways 241 00:11:29,760 --> 00:11:32,360 Speaker 8: and Means Committee. Congressman, thanks so much for joining, and 242 00:11:32,400 --> 00:11:34,720 Speaker 8: it's good to see you. I want to ask about 243 00:11:34,720 --> 00:11:37,840 Speaker 8: these recent comments from Senate Majority Leader John Thune, who 244 00:11:37,880 --> 00:11:40,079 Speaker 8: says it might be time to start thinking about having 245 00:11:40,120 --> 00:11:43,079 Speaker 8: the House come back into session because this stop gap 246 00:11:43,120 --> 00:11:45,520 Speaker 8: bill that they are voting on would only fund the 247 00:11:45,559 --> 00:11:49,520 Speaker 8: government until November twenty first. Is a November twenty first 248 00:11:49,520 --> 00:11:53,480 Speaker 8: stop gap still viable at this point, Well. 249 00:11:53,360 --> 00:11:57,160 Speaker 9: It's hard to predict the actions of the Democrats because 250 00:11:57,200 --> 00:12:01,640 Speaker 9: right now they've been stalling a very basic, clean continuation 251 00:12:01,720 --> 00:12:03,960 Speaker 9: of funding. What we need to see in the House 252 00:12:03,960 --> 00:12:06,600 Speaker 9: of Representatives for the Senate to send us some kind 253 00:12:06,640 --> 00:12:09,600 Speaker 9: of funding bill. They need to figure out what they 254 00:12:09,640 --> 00:12:13,560 Speaker 9: can pass in that side of the building. Unfortunately, because 255 00:12:13,600 --> 00:12:18,920 Speaker 9: of the filibuster, you have Democrats that's preventing a vote. 256 00:12:18,960 --> 00:12:21,920 Speaker 9: If they would just allow a vote on the continuing 257 00:12:22,000 --> 00:12:25,840 Speaker 9: Resolution that they have voted for numerous times in the past, 258 00:12:26,360 --> 00:12:28,480 Speaker 9: we would be able to open government. We'd be able 259 00:12:28,480 --> 00:12:32,880 Speaker 9: to fund government. Chuck Schumer voted for a continuing resolution 260 00:12:33,240 --> 00:12:37,080 Speaker 9: just like this thirteen times when Biden was president, in 261 00:12:37,080 --> 00:12:39,480 Speaker 9: fact as recent as this past March. 262 00:12:40,840 --> 00:12:43,800 Speaker 3: Well, I know that you've been very consistent in your 263 00:12:43,920 --> 00:12:45,880 Speaker 3: views on this, mister chairman, and it's good to have 264 00:12:45,920 --> 00:12:49,360 Speaker 3: you back on Bloomberg. You probably heard the conversation we 265 00:12:49,360 --> 00:12:52,040 Speaker 3: were just having, and it's causing some heads to explode 266 00:12:52,040 --> 00:12:55,720 Speaker 3: here in Washington. The idea of a full year CR 267 00:12:55,920 --> 00:12:58,040 Speaker 3: being the only way out of this, is that a 268 00:12:58,080 --> 00:12:59,920 Speaker 3: non starter for you? And what does it tell us 269 00:13:00,679 --> 00:13:04,040 Speaker 3: about where we stand on Capitol Hill. 270 00:13:04,200 --> 00:13:08,600 Speaker 9: So I've been hearing this conversation from Senators, from House 271 00:13:08,679 --> 00:13:11,400 Speaker 9: members that a CR not just for a year, but 272 00:13:11,440 --> 00:13:15,800 Speaker 9: to December first of next year. This has been conversations 273 00:13:15,800 --> 00:13:19,120 Speaker 9: that I've been hearing in Washington, DC. And we just 274 00:13:19,200 --> 00:13:22,120 Speaker 9: need to make sure that government is open and serving 275 00:13:22,280 --> 00:13:25,640 Speaker 9: the American people and we need to make sure that 276 00:13:26,000 --> 00:13:29,600 Speaker 9: government is not at risk of political games, which we're 277 00:13:29,600 --> 00:13:33,240 Speaker 9: seeing played right now by the House and Senate Democrats. 278 00:13:34,840 --> 00:13:38,199 Speaker 8: So just for clarity, Congressman, is that something that's really 279 00:13:38,240 --> 00:13:38,760 Speaker 8: on the table. 280 00:13:38,800 --> 00:13:40,679 Speaker 10: Would you be where do you fall. 281 00:13:40,600 --> 00:13:45,880 Speaker 8: On this idea of a longer term government funding bill. 282 00:13:46,040 --> 00:13:50,840 Speaker 9: I strongly support a longer, longer term continued resolution. I 283 00:13:50,880 --> 00:13:55,120 Speaker 9: would support that until December first. I think that that 284 00:13:55,280 --> 00:13:59,240 Speaker 9: would allow more stability for our economy, stability for the 285 00:13:59,240 --> 00:13:59,920 Speaker 9: American people. 286 00:14:00,080 --> 00:14:03,040 Speaker 11: The fact that we had the width of the. 287 00:14:03,000 --> 00:14:07,400 Speaker 9: House Democrats just recently say on TV that, yes, people 288 00:14:07,440 --> 00:14:10,280 Speaker 9: are hurting in the shutdown, but this is our leverage. 289 00:14:10,600 --> 00:14:14,319 Speaker 9: It is unfortunate that people believe making the American folks 290 00:14:14,480 --> 00:14:15,959 Speaker 9: hurt as leverage. 291 00:14:16,120 --> 00:14:17,160 Speaker 11: That's unacceptable. 292 00:14:17,400 --> 00:14:21,080 Speaker 9: That is why I would support a longer term continued resolution. 293 00:14:22,080 --> 00:14:25,240 Speaker 3: Are we talking December first, weeks from now or December first, 294 00:14:25,280 --> 00:14:26,880 Speaker 3: twenty twenty six, mister Chairman. 295 00:14:27,880 --> 00:14:30,680 Speaker 9: December twenty first, twenty twenty six is what I've been 296 00:14:30,800 --> 00:14:34,680 Speaker 9: hearing up here as a suggestion as an opportunity of 297 00:14:35,480 --> 00:14:39,400 Speaker 9: a continuing resolutions. As we know, we're operating under a 298 00:14:39,520 --> 00:14:43,320 Speaker 9: year long resolution from last year. We're looking at what 299 00:14:43,440 --> 00:14:45,880 Speaker 9: was appropriated when Biden was president. 300 00:14:46,880 --> 00:14:49,680 Speaker 3: Yeah, that's which is one of the ironies of this 301 00:14:50,040 --> 00:14:52,680 Speaker 3: whole debate that now Republicans are urging Democrats to vote 302 00:14:52,680 --> 00:14:56,600 Speaker 3: for Joe Biden's budget plan. Would that still allow for 303 00:14:56,640 --> 00:14:59,840 Speaker 3: a debate over Obamacare subsidies? Is that something that you 304 00:15:00,160 --> 00:15:04,440 Speaker 3: interested in for your constituents as open enrollment is set 305 00:15:04,480 --> 00:15:04,840 Speaker 3: to begin. 306 00:15:06,320 --> 00:15:09,080 Speaker 9: Well, first, let me let me just respond to the 307 00:15:09,120 --> 00:15:14,000 Speaker 9: fact that Republicans, if they completely had their way, they 308 00:15:14,040 --> 00:15:17,600 Speaker 9: would actually want to reduce the amount of funding from 309 00:15:17,720 --> 00:15:20,880 Speaker 9: Biden levels. But that's not how it's able to work 310 00:15:20,960 --> 00:15:22,720 Speaker 9: up here with the niety Bold rule over in the 311 00:15:22,800 --> 00:15:25,320 Speaker 9: United States Senate, and so that was our issue in 312 00:15:25,360 --> 00:15:29,160 Speaker 9: regards to the subsidies for insurance companies. 313 00:15:29,360 --> 00:15:31,280 Speaker 11: This is something that we've been. 314 00:15:31,120 --> 00:15:34,680 Speaker 9: Willing to discuss throughout this whole time, and it's something 315 00:15:34,720 --> 00:15:38,040 Speaker 9: that needs a lot of discussion because access to healthcare 316 00:15:38,600 --> 00:15:42,240 Speaker 9: is essential for Americans. We need to make sure that 317 00:15:42,320 --> 00:15:46,359 Speaker 9: we're talking about access for all Americans, not just twenty 318 00:15:46,400 --> 00:15:53,200 Speaker 9: four million Americans, but three hundred and forty seven million Americans. 319 00:15:53,280 --> 00:15:56,080 Speaker 8: Well, Cenate majority leader John Thune has floated that there 320 00:15:56,080 --> 00:15:58,320 Speaker 8: could be an up and down vote once the government 321 00:15:58,440 --> 00:16:02,000 Speaker 8: reopens on a one year extension of these expiring Affordable 322 00:16:02,000 --> 00:16:05,280 Speaker 8: Care Act premium subsidies, but Democrats say that they don't 323 00:16:05,280 --> 00:16:07,480 Speaker 8: want to get on board with that because there's no 324 00:16:07,600 --> 00:16:10,320 Speaker 8: guarantee that such a vote would happen in the House. 325 00:16:10,480 --> 00:16:12,640 Speaker 8: Do you think that this is something that House Speaker 326 00:16:12,680 --> 00:16:14,880 Speaker 8: Mike Johnson should bring to the floor so there is 327 00:16:14,920 --> 00:16:18,240 Speaker 8: at least this debate on perhaps structural changes or some 328 00:16:18,280 --> 00:16:20,080 Speaker 8: sort of extension down the road. 329 00:16:21,240 --> 00:16:24,520 Speaker 9: I would not be support of a one year extension 330 00:16:24,880 --> 00:16:29,680 Speaker 9: period without reforms. There has to be reforms the corruption 331 00:16:29,800 --> 00:16:33,360 Speaker 9: that's within the program. There's twenty four million people that 332 00:16:33,400 --> 00:16:37,080 Speaker 9: are on the Obamacare exchanges, half of them last year, 333 00:16:37,240 --> 00:16:41,600 Speaker 9: that's twelve million didn't even file a claim. Why did 334 00:16:41,600 --> 00:16:43,920 Speaker 9: those twelve million not file a claim. I'm sure it's 335 00:16:43,960 --> 00:16:46,200 Speaker 9: because they didn't even know that they were on the exchanges. 336 00:16:46,240 --> 00:16:50,240 Speaker 9: But guess what those insurance companies, they received the subsidized 337 00:16:50,280 --> 00:16:53,360 Speaker 9: premiums for it, even though they didn't even provide the 338 00:16:53,400 --> 00:16:55,880 Speaker 9: health care for it. These are the simple kind of 339 00:16:55,920 --> 00:16:59,080 Speaker 9: reforms that need to be addressed and need to be explained. 340 00:16:59,280 --> 00:17:03,560 Speaker 9: We also shouldn't be subsidizing premiums for people who make 341 00:17:03,640 --> 00:17:06,760 Speaker 9: more than four hundred percent of the federal poverty level 342 00:17:07,040 --> 00:17:08,960 Speaker 9: people who make six hundred. 343 00:17:08,600 --> 00:17:11,320 Speaker 11: Thousand dollars a year. I don't think Americans are good 344 00:17:11,320 --> 00:17:11,680 Speaker 11: with that. 345 00:17:12,720 --> 00:17:13,439 Speaker 2: Well, i'll tell you what. 346 00:17:13,480 --> 00:17:16,639 Speaker 3: I appreciate this conversation because it's more detailed than just 347 00:17:16,680 --> 00:17:19,080 Speaker 3: about any that we've heard. It's time to start getting 348 00:17:19,080 --> 00:17:22,680 Speaker 3: down to this debate. Congressman, I'm wondering what should be 349 00:17:22,760 --> 00:17:25,960 Speaker 3: the timeline. Do you want to go down the road 350 00:17:25,960 --> 00:17:30,760 Speaker 3: of permanently extending subsidies with those callers on them as 351 00:17:30,760 --> 00:17:34,280 Speaker 3: Democrats have suggested, make it permanent or should these be 352 00:17:34,400 --> 00:17:35,840 Speaker 3: sunset after a year or more. 353 00:17:37,200 --> 00:17:39,440 Speaker 9: You know, everything has to be looked at and has 354 00:17:39,480 --> 00:17:41,200 Speaker 9: to be on the table. I don't want to set 355 00:17:41,240 --> 00:17:45,600 Speaker 9: any limits pros and coms and negotiate an agreement in 356 00:17:45,640 --> 00:17:47,240 Speaker 9: the press. But what we need to do is have 357 00:17:47,320 --> 00:17:51,040 Speaker 9: Republicans and Democrats come together and figure out what is 358 00:17:51,160 --> 00:17:56,040 Speaker 9: best to creating more access to healthcare for all Americans, 359 00:17:56,119 --> 00:17:59,439 Speaker 9: not just people on exchanges, but all Americans. There's one 360 00:17:59,520 --> 00:18:03,720 Speaker 9: hundred and seventy four million Americans that are an employee 361 00:18:03,760 --> 00:18:07,800 Speaker 9: health insurance, but that employee health insurance is quite expensive, 362 00:18:07,880 --> 00:18:09,679 Speaker 9: so we need to look at all different ways to 363 00:18:09,680 --> 00:18:11,040 Speaker 9: help lower the cost of health care. 364 00:18:13,119 --> 00:18:15,840 Speaker 8: Congressman, I also want to ask you about something else 365 00:18:15,880 --> 00:18:18,920 Speaker 8: that the government shutdown has impacted, which is economic aid 366 00:18:19,040 --> 00:18:21,800 Speaker 8: for farmers. Now, the Trump administration says that it is 367 00:18:21,840 --> 00:18:26,159 Speaker 8: planning to unveil three billion dollars worth of such economic 368 00:18:26,240 --> 00:18:30,080 Speaker 8: assistance tomorrow. Actually, I've learned that Missouri, your state, is 369 00:18:30,119 --> 00:18:34,600 Speaker 8: one of the top three soybean producing states in the country. 370 00:18:35,119 --> 00:18:38,159 Speaker 8: I'm wondering how you are looking ahead to this meeting 371 00:18:38,359 --> 00:18:42,240 Speaker 8: between potential meeting between President Trump and Chinese President Jijiping. 372 00:18:42,320 --> 00:18:44,879 Speaker 8: What's going to happen if China does not agree to 373 00:18:45,160 --> 00:18:49,400 Speaker 8: purchase agreements for our US farmers, particularly related to soybeans. 374 00:18:50,680 --> 00:18:53,240 Speaker 9: Let me tell you what the Chinese have done to 375 00:18:53,520 --> 00:18:59,640 Speaker 9: US soybean farmers alone has been atrocious. Typically, in the 376 00:18:59,680 --> 00:19:04,320 Speaker 9: average year, China purchases somewhere between twelve to fifteen billion 377 00:19:04,440 --> 00:19:08,400 Speaker 9: dollars worth of soybeans a year from the United States. 378 00:19:08,640 --> 00:19:12,560 Speaker 9: They have not purchased one dollar this year, and so 379 00:19:12,720 --> 00:19:14,159 Speaker 9: that better beyond the table. 380 00:19:14,240 --> 00:19:16,000 Speaker 11: That has to be something that's being. 381 00:19:15,880 --> 00:19:21,640 Speaker 9: Discussed because that is drastically affecting the commodity prices here 382 00:19:21,680 --> 00:19:22,560 Speaker 9: in the United States. 383 00:19:22,600 --> 00:19:24,840 Speaker 11: I represent Southeast Missouri. 384 00:19:25,000 --> 00:19:28,399 Speaker 9: We have more soybean farmers in Southeast Missouri than the 385 00:19:28,560 --> 00:19:32,879 Speaker 9: entire state of Missouri, and these folks are facing some. 386 00:19:33,040 --> 00:19:34,760 Speaker 11: Dire dire situations. 387 00:19:34,800 --> 00:19:37,560 Speaker 9: I am glad that the President has said that he's 388 00:19:37,600 --> 00:19:40,640 Speaker 9: going to take care of the farmers. It's extremely important 389 00:19:40,680 --> 00:19:42,680 Speaker 9: that he does that. But we need to make sure 390 00:19:42,720 --> 00:19:46,160 Speaker 9: that China opens up their markets if they want us 391 00:19:46,160 --> 00:19:47,400 Speaker 9: to purchase their products. 392 00:19:48,359 --> 00:19:51,680 Speaker 3: It does seem punitive at this point, Congressman, we only 393 00:19:51,720 --> 00:19:52,800 Speaker 3: have thirty seconds left. 394 00:19:52,840 --> 00:19:53,639 Speaker 2: Is that how you see it? 395 00:19:55,200 --> 00:19:58,399 Speaker 9: Well, what the Chinese have done is clearly punitive. It 396 00:19:58,440 --> 00:20:01,439 Speaker 9: was for a punitive measure, much like how they've been 397 00:20:01,480 --> 00:20:05,040 Speaker 9: restricting critical minerals and rare earth to try to be 398 00:20:05,119 --> 00:20:09,000 Speaker 9: punitive to the world that is unstable. That's why there's 399 00:20:09,000 --> 00:20:12,679 Speaker 9: so many concerns about trading with the Chinese. 400 00:20:13,000 --> 00:20:14,640 Speaker 11: Hopefully they'll be able to get. 401 00:20:14,480 --> 00:20:17,720 Speaker 9: To a common ground in their meeting. 402 00:20:18,840 --> 00:20:20,200 Speaker 2: Really fascinating conversation. 403 00:20:20,560 --> 00:20:24,159 Speaker 3: Congressman Jason Smith, Republican, Missouri chairs the House Ways and 404 00:20:24,200 --> 00:20:27,320 Speaker 3: Means Committee and has been knee deep in this shutdown. Congressman, 405 00:20:27,400 --> 00:20:30,359 Speaker 3: thank you. It's great to have your insights here on Bloomberg. 406 00:20:30,480 --> 00:20:32,640 Speaker 3: Stay with us on balance of Power. We'll have much 407 00:20:32,640 --> 00:20:33,840 Speaker 3: more coming up after this. 408 00:20:38,160 --> 00:20:41,640 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. 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Just say Alexa Play Bloomberg eleven thirty. 413 00:20:57,160 --> 00:20:58,040 Speaker 10: I'm Tyler Kendall. 414 00:20:58,040 --> 00:21:01,679 Speaker 8: You're in Washington alongside Joe Matthew, and we just had 415 00:21:01,720 --> 00:21:05,000 Speaker 8: some news from our interview that just happened moments ago 416 00:21:05,160 --> 00:21:07,280 Speaker 8: with Jason Smith, of course, the chair of the House 417 00:21:07,320 --> 00:21:12,439 Speaker 8: Ways and Means Committee, the chairman telling Joe and me 418 00:21:12,560 --> 00:21:15,960 Speaker 8: here that lawmakers are now weighing a stopgap bill that 419 00:21:16,000 --> 00:21:19,679 Speaker 8: would fund the government through December of twenty twenty six. 420 00:21:19,880 --> 00:21:22,639 Speaker 8: This would be controversial, to say the least. We know 421 00:21:23,080 --> 00:21:25,800 Speaker 8: that it is something that Senate Majority Leader John Thune 422 00:21:25,840 --> 00:21:30,479 Speaker 8: has previously indicated that could be difficult for Republicans in 423 00:21:30,520 --> 00:21:33,239 Speaker 8: the Senate. So Joe, it's really raising some questions here 424 00:21:33,280 --> 00:21:35,080 Speaker 8: about where these negotiations are heading. 425 00:21:35,200 --> 00:21:37,720 Speaker 3: Yeah, we floated this idea to the panel yesterday, and 426 00:21:37,720 --> 00:21:40,160 Speaker 3: we're going to have Rick and Jeannie with us momentarily 427 00:21:40,240 --> 00:21:43,400 Speaker 3: here because you're right. John Thune suggested that this may 428 00:21:43,600 --> 00:21:45,480 Speaker 3: be the only way out, and it's something that the 429 00:21:45,480 --> 00:21:48,560 Speaker 3: White House before the shutdown had floated. 430 00:21:48,800 --> 00:21:50,840 Speaker 2: You know what, just rip off the band aid, we'll 431 00:21:50,840 --> 00:21:52,120 Speaker 2: do a year long CR and. 432 00:21:52,040 --> 00:21:54,760 Speaker 3: We don't have to talk about shutdowns for a while. 433 00:21:54,960 --> 00:21:57,639 Speaker 3: To hear the Chair of the Ways and Means Committee 434 00:21:57,680 --> 00:22:01,640 Speaker 3: extend this through December of twenty twenty six was unexpected, 435 00:22:01,800 --> 00:22:06,400 Speaker 3: and I'm not sure if he's speaking for the Republican Conference. 436 00:22:06,800 --> 00:22:09,560 Speaker 3: He's clearly not going to be controversial at the White House. 437 00:22:09,840 --> 00:22:11,760 Speaker 3: But Speaker Johnson may not love this. 438 00:22:11,760 --> 00:22:14,320 Speaker 8: Idea, right and a lot of Senate Republicans don't love 439 00:22:14,359 --> 00:22:16,440 Speaker 8: it either. We heard from Susan Collins, of course, a 440 00:22:16,520 --> 00:22:19,360 Speaker 8: top appropriator in the Senate, just yesterday, saying that she's 441 00:22:19,480 --> 00:22:21,000 Speaker 8: adamantly opposed to a. 442 00:22:20,960 --> 00:22:22,280 Speaker 10: Long term CR. 443 00:22:22,400 --> 00:22:25,000 Speaker 8: So that is raising questions about the viability, but certainly 444 00:22:25,320 --> 00:22:26,560 Speaker 8: news here on Downson power. 445 00:22:26,600 --> 00:22:29,080 Speaker 3: Of course, the Freedom Caucus will throw up as soon 446 00:22:29,119 --> 00:22:31,280 Speaker 3: as this gets their way as well. So let's find 447 00:22:31,320 --> 00:22:33,600 Speaker 3: out what the panel thinks, because indeed we may be 448 00:22:33,680 --> 00:22:35,760 Speaker 3: heading for a very different scenario than we were talking 449 00:22:35,840 --> 00:22:38,720 Speaker 3: about just a couple of days ago. Bloomberg Politics contributors 450 00:22:38,760 --> 00:22:41,600 Speaker 3: Genie Schanzano and Rick Davis are with us right now. 451 00:22:41,680 --> 00:22:45,560 Speaker 3: Jeanie is our Democratic analyst and democracy visiting fellow at 452 00:22:45,560 --> 00:22:48,879 Speaker 3: Harbor Kennedy School's Ash Center. Rick our Republican strategist partner 453 00:22:48,880 --> 00:22:52,320 Speaker 3: at Stone Court Capital. Jeannie, did Jason Smith just tell 454 00:22:52,400 --> 00:22:53,640 Speaker 3: us how this movie ends? 455 00:22:55,440 --> 00:22:59,160 Speaker 7: He very well may have. I mean that was just fascinating. 456 00:22:59,760 --> 00:23:03,240 Speaker 7: Of course, what are we talking about. We're talking about 457 00:23:03,359 --> 00:23:05,960 Speaker 7: Joe Biden still living in Washington, d C. 458 00:23:06,200 --> 00:23:06,919 Speaker 10: We're just going to. 459 00:23:06,960 --> 00:23:11,320 Speaker 7: Continue with the Biden budget. I mean, it's utterly stunning 460 00:23:11,800 --> 00:23:16,359 Speaker 7: and hard to explain given a Republican leadership that came 461 00:23:16,400 --> 00:23:19,879 Speaker 7: in under Mike Johnson and Thune promising. 462 00:23:19,400 --> 00:23:20,840 Speaker 10: A return to regular order. 463 00:23:20,920 --> 00:23:23,840 Speaker 7: Well that's gone right away, and here we go, We're 464 00:23:23,880 --> 00:23:27,240 Speaker 7: going to re up Joe Biden's budget. I think that 465 00:23:27,400 --> 00:23:30,879 Speaker 7: is just stunning, and I can't imagine appropriators around DC 466 00:23:31,160 --> 00:23:32,720 Speaker 7: are excited to hear this. 467 00:23:32,840 --> 00:23:35,600 Speaker 2: Maybe how it ends, but boy, it is big. 468 00:23:35,440 --> 00:23:37,320 Speaker 7: News to hear him say that to you guys. 469 00:23:38,720 --> 00:23:40,240 Speaker 10: So, Rick, what's your reaction here? 470 00:23:40,320 --> 00:23:43,200 Speaker 8: How would these Republicans that are in favor of this 471 00:23:43,359 --> 00:23:46,280 Speaker 8: long term potential solution pitch it to the rest of 472 00:23:46,320 --> 00:23:46,760 Speaker 8: the party. 473 00:23:48,280 --> 00:23:50,360 Speaker 12: Yeah, I mean, I'm not sure, you know, I would 474 00:23:50,480 --> 00:23:53,480 Speaker 12: use the term in favor of Tyler. I mean, I 475 00:23:53,480 --> 00:23:56,439 Speaker 12: think even the Chairman indicated it's like a desperate effort 476 00:23:56,480 --> 00:23:59,640 Speaker 12: to fund the government at this stage, and I think 477 00:23:59,640 --> 00:24:01,080 Speaker 12: it's going to be a hard sell in the United 478 00:24:01,080 --> 00:24:03,560 Speaker 12: States Senate. I mean, as you pointed out, Susan Collins, 479 00:24:03,600 --> 00:24:06,520 Speaker 12: who's been working very diligently as the chairman of the 480 00:24:06,560 --> 00:24:12,360 Speaker 12: Appropriations Committee to craft a bipartisan budget which was well. 481 00:24:12,160 --> 00:24:13,320 Speaker 2: On its way to getting done. 482 00:24:13,359 --> 00:24:16,840 Speaker 12: I mean, the reason that the cr is only originally 483 00:24:17,520 --> 00:24:20,280 Speaker 12: sixty days is because everyone thought in that period of 484 00:24:20,280 --> 00:24:23,960 Speaker 12: time we could actually finish up these appropriations bills, actually 485 00:24:24,000 --> 00:24:26,960 Speaker 12: doing something that Congress hasn't done a long time, which 486 00:24:27,000 --> 00:24:30,800 Speaker 12: is pass a budget, a budget that Donald Trump approves of. 487 00:24:31,960 --> 00:24:34,640 Speaker 12: This is the real question is to like, why did 488 00:24:34,680 --> 00:24:38,800 Speaker 12: we take such a big step backwards in order to 489 00:24:38,880 --> 00:24:41,639 Speaker 12: just sort of kick the can on government funding. I 490 00:24:41,680 --> 00:24:44,480 Speaker 12: don't know a single Republican in the Senate who wants 491 00:24:44,520 --> 00:24:47,040 Speaker 12: to vote for Joe Biden's budget again. They've done it 492 00:24:47,080 --> 00:24:48,800 Speaker 12: three times now, they don't want to do it again, 493 00:24:49,400 --> 00:24:53,480 Speaker 12: and they've got the ability to pass these appropriations bills, 494 00:24:53,480 --> 00:24:55,960 Speaker 12: certainly before year end, and there's going to be a 495 00:24:56,000 --> 00:24:58,159 Speaker 12: real push against this. I mean, this is not the 496 00:24:58,240 --> 00:25:00,840 Speaker 12: funding that these guys want. And by the way, it 497 00:25:01,000 --> 00:25:06,640 Speaker 12: still doesn't fix the insurance subsidies for the ACA. I mean, 498 00:25:06,680 --> 00:25:11,119 Speaker 12: that's going to be laying around stinking up Congress until 499 00:25:11,160 --> 00:25:14,080 Speaker 12: it's fixed. And so you know, all of a sudden, 500 00:25:14,160 --> 00:25:18,240 Speaker 12: there's this like real traffic jam in Congress to get 501 00:25:18,240 --> 00:25:20,359 Speaker 12: these things done in a way that isn't just kicking 502 00:25:20,400 --> 00:25:25,080 Speaker 12: the can. Maybe okay with Donald Trump, but I'm as 503 00:25:25,440 --> 00:25:29,600 Speaker 12: a staunch fiscal conservative, the idea that we just keep 504 00:25:29,760 --> 00:25:34,879 Speaker 12: funding democratic budgets after winning a presidential campaign is just 505 00:25:35,080 --> 00:25:36,080 Speaker 12: reverse thinking. 506 00:25:37,200 --> 00:25:39,960 Speaker 3: Well, it's interesting because you're you're both saying some of 507 00:25:39,960 --> 00:25:43,000 Speaker 3: the same things here, Genie, what's Chuck Schumer going to 508 00:25:43,080 --> 00:25:43,880 Speaker 3: say about all this? 509 00:25:45,200 --> 00:25:48,159 Speaker 7: You know, to Briak's point, since this doesn't address what 510 00:25:48,440 --> 00:25:51,320 Speaker 7: the Democrats are raised to bring the shut down to 511 00:25:51,359 --> 00:25:54,320 Speaker 7: begin with, in terms of the subsidies, I don't see 512 00:25:54,400 --> 00:25:57,560 Speaker 7: how it moves through the Democrats that they need to 513 00:25:57,600 --> 00:25:59,640 Speaker 7: get it through the Senate, so. 514 00:25:59,720 --> 00:26:03,120 Speaker 2: That be a problem. But I do think, as. 515 00:26:02,960 --> 00:26:07,159 Speaker 7: You just imagine trying to explain to anybody on the street. 516 00:26:07,600 --> 00:26:10,239 Speaker 7: Wait a minute, We've been through all of this and 517 00:26:10,320 --> 00:26:13,879 Speaker 7: you're simply going to try to re up what you 518 00:26:14,040 --> 00:26:17,359 Speaker 7: did under Joe Biden. Why did we even elect you? 519 00:26:17,440 --> 00:26:19,600 Speaker 7: I mean, I can't imagine this is a sell for 520 00:26:20,000 --> 00:26:22,600 Speaker 7: the Republican base or the Democratic base. 521 00:26:22,880 --> 00:26:23,119 Speaker 11: You know. 522 00:26:23,760 --> 00:26:27,120 Speaker 7: I have empathy for these leaders in Congress and these 523 00:26:27,240 --> 00:26:30,119 Speaker 7: chairs of these committees. They desperately want to reopen this 524 00:26:30,160 --> 00:26:32,760 Speaker 7: government and get this thing done. I just can't see 525 00:26:32,760 --> 00:26:37,199 Speaker 7: this as a winning message to either members or to 526 00:26:37,240 --> 00:26:38,160 Speaker 7: their constituents. 527 00:26:40,400 --> 00:26:43,520 Speaker 8: Well, from domestic to foreign policy issues. We also want 528 00:26:43,560 --> 00:26:45,400 Speaker 8: to ask you both about some other news of day 529 00:26:45,480 --> 00:26:48,800 Speaker 8: happening here in Washington. The NATO Secretary General Mark Rutta 530 00:26:48,880 --> 00:26:51,639 Speaker 8: at the White House meeting with President Trump later this 531 00:26:51,760 --> 00:26:56,120 Speaker 8: afternoon behind closed doors. His meeting here to the US 532 00:26:56,200 --> 00:26:59,439 Speaker 8: coming after we had the Ukrainian President Vladimir Zelenski at 533 00:26:59,480 --> 00:27:02,439 Speaker 8: the White House on Friday, and we heard from President 534 00:27:02,520 --> 00:27:07,000 Speaker 8: Trump yesterday speaking about the potential future of a meeting 535 00:27:07,160 --> 00:27:11,560 Speaker 8: between him and Russian President of Vladimir Putin, now downplaying 536 00:27:11,800 --> 00:27:12,879 Speaker 8: that that's going to happen. 537 00:27:14,200 --> 00:27:16,800 Speaker 13: No, No, I don't want to have a wasted meeting. 538 00:27:16,880 --> 00:27:18,600 Speaker 13: I don't want to have a wasted time. So I'll 539 00:27:18,600 --> 00:27:23,919 Speaker 13: see what happens. But we did all of these great deals, 540 00:27:23,960 --> 00:27:27,480 Speaker 13: great piece seals. There are all pieces agreements, solid agreements, 541 00:27:27,520 --> 00:27:29,800 Speaker 13: every one of them. This one, and I said, go 542 00:27:29,880 --> 00:27:33,879 Speaker 13: to the line, go to the line of battle, on 543 00:27:34,080 --> 00:27:37,359 Speaker 13: the battlefield lines, and you pull back and you go home. 544 00:27:37,400 --> 00:27:40,880 Speaker 13: And everybody takes some time off because you have two 545 00:27:40,880 --> 00:27:42,280 Speaker 13: countries that are killing each other. 546 00:27:44,560 --> 00:27:48,240 Speaker 8: President Trump, they're saying he doesn't want a wasted meeting 547 00:27:48,920 --> 00:27:51,719 Speaker 8: in his terms, Rick, where do we stand on this? 548 00:27:51,920 --> 00:27:56,600 Speaker 8: How is the dynamic being informed today with the latest 549 00:27:56,720 --> 00:27:59,160 Speaker 8: on the war in Russia as we have this NATO 550 00:27:59,200 --> 00:28:03,200 Speaker 8: Secretary General Mark Rutta considered to be a close ally 551 00:28:03,880 --> 00:28:07,800 Speaker 8: relatively a friendly relationship between himself and President Trump. 552 00:28:09,240 --> 00:28:12,639 Speaker 12: Yeah, I think does have a close relationship with Trump. 553 00:28:12,680 --> 00:28:16,960 Speaker 12: He's come to the fire Brigade before for Zelenski. After 554 00:28:17,000 --> 00:28:23,280 Speaker 12: that horrific meeting in August in the White House, he 555 00:28:23,359 --> 00:28:29,520 Speaker 12: intervened and I think has been a really positive contributor 556 00:28:29,600 --> 00:28:33,760 Speaker 12: to trying to get some continuity to the US position 557 00:28:34,040 --> 00:28:39,440 Speaker 12: on the Ukrainian defense of their country. And so anytime 558 00:28:39,480 --> 00:28:43,440 Speaker 12: he's there, things seemed to come out pretty well. And 559 00:28:44,000 --> 00:28:47,280 Speaker 12: at least this time you don't also see the Prime 560 00:28:47,320 --> 00:28:50,320 Speaker 12: Minister of the UK and the President of France joining, 561 00:28:50,360 --> 00:28:53,920 Speaker 12: because that was the other fire brigade last time that 562 00:28:53,960 --> 00:28:54,640 Speaker 12: this went down. 563 00:28:55,480 --> 00:28:58,320 Speaker 2: So I think that I think that this is an opportunity. 564 00:28:58,360 --> 00:29:01,520 Speaker 12: As you point out, Trump has flip flopped on this 565 00:29:01,640 --> 00:29:06,640 Speaker 12: position of having a meeting in Hungary with Putin, primarily 566 00:29:06,720 --> 00:29:10,480 Speaker 12: I think based on reporting because of the comments that Lavrov, 567 00:29:10,960 --> 00:29:15,000 Speaker 12: his top foreign policy person in Moscow, said, which is 568 00:29:15,040 --> 00:29:17,800 Speaker 12: they're still stuck on this root causes have to be addressed, 569 00:29:17,800 --> 00:29:20,680 Speaker 12: which means they've made no progress whatsoever. And I think 570 00:29:20,760 --> 00:29:22,840 Speaker 12: the White House did the right thing by saying, Okay, 571 00:29:22,840 --> 00:29:25,560 Speaker 12: if that's the case, forget about it. You're not in 572 00:29:25,600 --> 00:29:28,160 Speaker 12: the position of wanting to make peace. Hopefully they can 573 00:29:28,200 --> 00:29:32,360 Speaker 12: get back on track some of the weapons deals that 574 00:29:32,400 --> 00:29:36,000 Speaker 12: they had talked about, including a conversation around tomahawks, which 575 00:29:36,000 --> 00:29:38,880 Speaker 12: I know Rudd is going to be probably bringing up 576 00:29:39,200 --> 00:29:41,400 Speaker 12: in his conversations. 577 00:29:40,720 --> 00:29:41,480 Speaker 2: With Donald Trump. 578 00:29:41,520 --> 00:29:44,720 Speaker 12: So I think this pendulum swings back and forth on 579 00:29:44,760 --> 00:29:50,000 Speaker 12: a daily basis. The lack of continuity is everybody's head spinning. 580 00:29:50,360 --> 00:29:53,920 Speaker 12: And in the meantime, today was a very violent day 581 00:29:55,000 --> 00:29:57,760 Speaker 12: in the war between Russia and Ukraine on both. 582 00:29:57,600 --> 00:30:04,680 Speaker 3: Sideslip Russian missile end drone strikes against Ukraine as the 583 00:30:04,680 --> 00:30:08,000 Speaker 3: President waits for the Secretary General, Genie. If it is 584 00:30:08,040 --> 00:30:11,400 Speaker 3: true that the President tends to follow the opinions of 585 00:30:11,440 --> 00:30:14,120 Speaker 3: who he last spoke with or is impressed by the 586 00:30:14,160 --> 00:30:16,840 Speaker 3: most recent conversation that he had on this, are we 587 00:30:16,880 --> 00:30:18,880 Speaker 3: going to get a post on truth Social this evening 588 00:30:19,320 --> 00:30:22,280 Speaker 3: saying that Ukraine once again can retake all of the 589 00:30:22,360 --> 00:30:24,680 Speaker 3: land that has been occupied by Russia. 590 00:30:26,320 --> 00:30:27,160 Speaker 2: Well, we do know. 591 00:30:27,080 --> 00:30:31,040 Speaker 7: That the Secretary General speaks trumpion, so there is that, 592 00:30:31,680 --> 00:30:35,200 Speaker 7: and apparently Putin does as well, the one who seems 593 00:30:35,240 --> 00:30:38,040 Speaker 7: to have more difficulty as a Lensky because all reports 594 00:30:38,080 --> 00:30:40,520 Speaker 7: out of that meeting they had the other day it 595 00:30:40,680 --> 00:30:43,680 Speaker 7: was a pretty stark meeting, and that is why we 596 00:30:43,760 --> 00:30:47,320 Speaker 7: are seeing the Secretary General make this trip today. I 597 00:30:47,360 --> 00:30:50,920 Speaker 7: think it is possible we may see a truth Social 598 00:30:51,000 --> 00:30:54,480 Speaker 7: post that those tomahawks may be sold, but I think 599 00:30:54,520 --> 00:30:57,120 Speaker 7: in the end there is very little sense that that 600 00:30:57,240 --> 00:30:59,960 Speaker 7: is going to make a huge difference on the grid. 601 00:31:00,760 --> 00:31:03,800 Speaker 7: And I think what we are seeing is that Donald 602 00:31:03,920 --> 00:31:09,680 Speaker 7: Trump and Vladimir Putin are continuing to have these conversations 603 00:31:09,680 --> 00:31:14,640 Speaker 7: they're important conversations, but that Vladimir Putin is not moving, 604 00:31:15,000 --> 00:31:17,760 Speaker 7: he is not changing from where he started when this 605 00:31:17,920 --> 00:31:21,200 Speaker 7: war started. And so I think Donald Trump canceling that 606 00:31:21,280 --> 00:31:24,840 Speaker 7: meeting was a recognition that this is an immovable feast 607 00:31:24,880 --> 00:31:27,440 Speaker 7: at this point, and he is sort of throwing up 608 00:31:27,440 --> 00:31:30,280 Speaker 7: his hands once again and saying, not much we can 609 00:31:30,360 --> 00:31:32,440 Speaker 7: do here, and I'm not going to waste my time, 610 00:31:32,800 --> 00:31:35,360 Speaker 7: which doesn't bode well for what is going on in 611 00:31:35,480 --> 00:31:40,520 Speaker 7: Kiev and in Ukraine. And given the outsized the population 612 00:31:40,640 --> 00:31:43,000 Speaker 7: that Russia has it it's losing a lot of fighters, 613 00:31:43,040 --> 00:31:46,280 Speaker 7: but much bigger than Ukraine. It desperately needs the support 614 00:31:46,320 --> 00:31:48,959 Speaker 7: of the United States and NATO if they are going 615 00:31:49,000 --> 00:31:52,120 Speaker 7: to make any headway, and I'm not convinced they will. 616 00:31:52,200 --> 00:31:54,720 Speaker 7: And in the meantime, Lindsey Graham and the other senators 617 00:31:54,760 --> 00:31:58,480 Speaker 7: who want these sanctions, they are still waiting to hear 618 00:31:58,560 --> 00:32:01,719 Speaker 7: from the president. He hasn't even approved those, and that 619 00:32:01,880 --> 00:32:05,240 Speaker 7: is what eighty bipartisan senators supporting those. 620 00:32:06,880 --> 00:32:10,120 Speaker 8: All right, A fascinating conversation today with our political panel, 621 00:32:10,120 --> 00:32:14,000 Speaker 8: both Bloomberg Politics contributors Rick Davis and Jeanie Schanzino. Thank 622 00:32:14,040 --> 00:32:16,440 Speaker 8: you both so much. As always, and Joe, much to 623 00:32:16,520 --> 00:32:19,719 Speaker 8: Genie's points, she brings up Congress. The NATO Secretary General 624 00:32:19,760 --> 00:32:23,280 Speaker 8: also paying a visit to leaders on Capitol Hill. Today, 625 00:32:23,360 --> 00:32:26,120 Speaker 8: the Senate Foreign Relations Committee poised to pass three bills 626 00:32:26,160 --> 00:32:29,160 Speaker 8: that would ramp up the pressure on Russia, including some 627 00:32:29,160 --> 00:32:33,280 Speaker 8: additional economic penalties. But of course that doesn't mean that 628 00:32:33,320 --> 00:32:34,720 Speaker 8: it would be enacted quite. 629 00:32:34,520 --> 00:32:36,880 Speaker 3: Sure, right, We've also got breaking news from the Pentagon, 630 00:32:36,960 --> 00:32:40,800 Speaker 3: the Secretary of Defense Pete Hegseth confirming earlier reports that 631 00:32:40,840 --> 00:32:44,200 Speaker 3: the United States has hit another alleged drug boat. This 632 00:32:44,240 --> 00:32:47,640 Speaker 3: would be the eighth strike killed two individuals on the vessel. 633 00:32:47,720 --> 00:32:50,040 Speaker 3: CBS News reporting so the Pacific coast. 634 00:32:50,480 --> 00:32:53,000 Speaker 2: This is Bloomberg. Thanks for listening to the Balance of 635 00:32:53,080 --> 00:32:54,000 Speaker 2: Power podcast. 636 00:32:54,640 --> 00:32:58,280 Speaker 3: Make sure to subscribe if you haven't already an Apple, Spotify. 637 00:32:57,840 --> 00:32:59,400 Speaker 2: Or wherever you get your podcasts. 638 00:33:00,040 --> 00:33:02,560 Speaker 3: You can find us live every weekday from Washington, DC 639 00:33:02,720 --> 00:33:05,880 Speaker 3: at noontime Eastern at Bloomberg dot com.