1 00:00:02,000 --> 00:00:06,520 Speaker 1: Now from our nation's capital. This is Bloomberg Sound on 2 00:00:07,480 --> 00:00:11,920 Speaker 1: the economy has created five hundred seventeen thousand jobs just 3 00:00:12,039 --> 00:00:14,520 Speaker 1: last month, more than half a million jobs in just 4 00:00:14,560 --> 00:00:17,880 Speaker 1: a month of January. The unemployment rate falls to three 5 00:00:17,880 --> 00:00:21,400 Speaker 1: point Oh my goodness something. I'll take this job to 6 00:00:21,560 --> 00:00:25,800 Speaker 1: point for any day toly Bloomberg Sound On Politics, Policy 7 00:00:25,800 --> 00:00:29,600 Speaker 1: and Perspective from DC's top name. The United States government 8 00:00:30,040 --> 00:00:33,960 Speaker 1: has detected and is tracking a high altitude surveillance balloon 9 00:00:34,240 --> 00:00:36,839 Speaker 1: that is over the continental United States right now. We 10 00:00:36,920 --> 00:00:40,199 Speaker 1: hope that's both the sides will handle this matter in 11 00:00:40,280 --> 00:00:44,320 Speaker 1: a cool headed manner. Bloomberg Sound On with Joe Matthew 12 00:00:44,720 --> 00:00:48,800 Speaker 1: on Bloomberg Radio. The job report blows the doors off, 13 00:00:48,840 --> 00:00:51,440 Speaker 1: but will it mean more pain later? Welcome to the 14 00:00:51,479 --> 00:00:54,080 Speaker 1: fastest hour in politics, as we consider the good and 15 00:00:54,160 --> 00:00:57,600 Speaker 1: bad in today's data, with views from former Labor Secretary, 16 00:00:57,680 --> 00:01:01,080 Speaker 1: former d NC each Year, Tom Perez, an economist, Douglas 17 00:01:01,080 --> 00:01:04,600 Speaker 1: Holtz ecan president of the American Action Forum. So what's 18 00:01:04,600 --> 00:01:07,000 Speaker 1: the deal with the balloon and why won't the U 19 00:01:07,120 --> 00:01:09,319 Speaker 1: S shoot it down? We'll have the latest from Bloomberg 20 00:01:09,360 --> 00:01:13,560 Speaker 1: Pentagon reporter Tony Capacho and as the Secretary of State 21 00:01:13,600 --> 00:01:15,920 Speaker 1: cancels his trip to China because of all this. Will 22 00:01:15,920 --> 00:01:18,760 Speaker 1: have insights from Craig Singleton at the Foundation for the 23 00:01:18,800 --> 00:01:23,119 Speaker 1: Defense of Democracies, analysis from our panel Bloomberg Politics contributor 24 00:01:23,160 --> 00:01:27,080 Speaker 1: Republican strategist Rick Davis back today along with Democratic strategist 25 00:01:27,200 --> 00:01:30,440 Speaker 1: John L. Bombard of Rock Solutions. So it's quite the 26 00:01:30,480 --> 00:01:33,040 Speaker 1: shock wave at eight thirty this morning when the job's 27 00:01:33,120 --> 00:01:35,440 Speaker 1: data hit will pick up right there where Denise left 28 00:01:35,440 --> 00:01:39,880 Speaker 1: off five seventeen thousand, more than twice expectations. Nobody could believe. 29 00:01:39,920 --> 00:01:42,880 Speaker 1: It is really, actually pretty funny listening to this unfold 30 00:01:42,880 --> 00:01:45,920 Speaker 1: live on TV and radio here at Bloomberg. The White 31 00:01:45,959 --> 00:01:48,440 Speaker 1: House was quick to add remarks to the President's schedule 32 00:01:48,520 --> 00:01:52,240 Speaker 1: here he is the strongest job growth in history, the 33 00:01:52,280 --> 00:01:57,080 Speaker 1: lowest unemployment rate in fifty four years, Manufacturing rebounding and 34 00:01:57,240 --> 00:02:01,840 Speaker 1: faster rate than in the last forty years, Inflation coming down, 35 00:02:02,720 --> 00:02:06,080 Speaker 1: real racist, real wages going up, but moderately going up, 36 00:02:06,160 --> 00:02:09,200 Speaker 1: not going through the roof. The economy growing in a 37 00:02:09,240 --> 00:02:12,840 Speaker 1: solid clip. But simply I would argue that Biden economic 38 00:02:12,880 --> 00:02:15,520 Speaker 1: plan is working. Feeling pretty good, and you know, it 39 00:02:15,560 --> 00:02:17,919 Speaker 1: was a good day for labor Secretary Marty Walsh. He 40 00:02:18,000 --> 00:02:20,880 Speaker 1: spoke with Bloomberg this morning after the data hit. Listen. 41 00:02:21,160 --> 00:02:22,560 Speaker 1: You know it was a great report. I mean when 42 00:02:22,600 --> 00:02:25,280 Speaker 1: you look at areas of that, I think a really 43 00:02:25,320 --> 00:02:29,799 Speaker 1: important business grew, healthcare grew, education grew, and we saw 44 00:02:29,919 --> 00:02:33,880 Speaker 1: in strong steady growth and construction he al. This makes 45 00:02:33,919 --> 00:02:38,120 Speaker 1: me feel little. And that's where we begin with Tom Perez, 46 00:02:38,160 --> 00:02:40,920 Speaker 1: the former Labor Secretary, with us as we try to 47 00:02:40,960 --> 00:02:45,280 Speaker 1: explore both sides of this. The good news of explosive 48 00:02:45,400 --> 00:02:48,720 Speaker 1: job growth, you can't deny that, particularly if you've been 49 00:02:48,760 --> 00:02:52,200 Speaker 1: out of work. But what comes after as the FED 50 00:02:52,280 --> 00:02:55,480 Speaker 1: tries to tackle inflation could be a very different story. 51 00:02:55,720 --> 00:02:59,000 Speaker 1: Tom Perez, welcome back to Bloomberg. It's always great to 52 00:02:59,000 --> 00:03:01,400 Speaker 1: be with you when you listen. Appreciate it. You look, 53 00:03:01,400 --> 00:03:03,079 Speaker 1: you've been around this stuff for a long time. How 54 00:03:03,120 --> 00:03:05,880 Speaker 1: can estimates be this far off this job's report today? 55 00:03:05,960 --> 00:03:08,280 Speaker 1: Or or should I ask you? What does it indicate 56 00:03:08,280 --> 00:03:11,959 Speaker 1: when estimates are this far off? Well? I mean I 57 00:03:11,960 --> 00:03:15,399 Speaker 1: I always struggle when I see the well a DT 58 00:03:16,080 --> 00:03:19,520 Speaker 1: has this recommendation and this and that. The only recommendation 59 00:03:19,639 --> 00:03:21,840 Speaker 1: that we should be looking at is the one that 60 00:03:21,880 --> 00:03:24,000 Speaker 1: comes out the first body of the month, because that's 61 00:03:24,000 --> 00:03:28,480 Speaker 1: not speculation. That's what the very professional people at the 62 00:03:28,480 --> 00:03:32,040 Speaker 1: Bureau Labor Statistics are putting together. And I think what 63 00:03:32,480 --> 00:03:35,280 Speaker 1: we see in this report is just more evidence that 64 00:03:35,600 --> 00:03:39,080 Speaker 1: we have a really resilient job market. I mean, we 65 00:03:39,080 --> 00:03:42,880 Speaker 1: we have the lowest unemployment rate now since nineteen sixty nine. 66 00:03:43,720 --> 00:03:46,280 Speaker 1: The two best years for job growth are the last 67 00:03:46,280 --> 00:03:51,320 Speaker 1: two years. The Uh, we've we've more than offset the 68 00:03:51,400 --> 00:03:53,720 Speaker 1: loss during the pandemic, and the private sector still have 69 00:03:53,840 --> 00:03:56,400 Speaker 1: some work to do with the public sector. But what's 70 00:03:56,400 --> 00:04:03,320 Speaker 1: remarkable to me is we're seeing wage decelerating without sacrificing 71 00:04:04,040 --> 00:04:08,000 Speaker 1: lower unemployment and a strong labor market. So I'm sure 72 00:04:08,080 --> 00:04:10,520 Speaker 1: you've had discussion on this show, and I think I've 73 00:04:10,520 --> 00:04:12,800 Speaker 1: had them with you about are we entering the world 74 00:04:12,880 --> 00:04:16,360 Speaker 1: of stagflation, you know, where you have high employment, high unemployment, 75 00:04:16,680 --> 00:04:18,800 Speaker 1: and high inflation. The answer to that is, hell, no, 76 00:04:19,760 --> 00:04:24,160 Speaker 1: that's not happening. Uh. This is a historically low unemployment rate. 77 00:04:24,200 --> 00:04:27,760 Speaker 1: And I always dig deeper in these data points because 78 00:04:28,120 --> 00:04:32,120 Speaker 1: you look at the annual unemployment rate for people with 79 00:04:32,160 --> 00:04:35,320 Speaker 1: a high school degree has dropped five points in the 80 00:04:35,360 --> 00:04:39,160 Speaker 1: past two years. We're at near record lows for African Americans, 81 00:04:39,279 --> 00:04:44,040 Speaker 1: for Latino So this is very very broad based growth. 82 00:04:44,360 --> 00:04:46,599 Speaker 1: There are two ways that people are looking at this. 83 00:04:46,760 --> 00:04:51,600 Speaker 1: More jobs great, right. Moderating wage is also good. But others, 84 00:04:51,640 --> 00:04:53,520 Speaker 1: usually on wall streets, say, look, as long as this 85 00:04:53,640 --> 00:04:56,000 Speaker 1: job market keeps running hot and hotter than we think, 86 00:04:56,560 --> 00:04:59,120 Speaker 1: the more the Fed needs to hike rates, the more 87 00:04:59,160 --> 00:05:01,040 Speaker 1: likely a recession is later in the year. And then 88 00:05:01,080 --> 00:05:03,320 Speaker 1: that does snap back around on main Street. And it 89 00:05:03,360 --> 00:05:06,760 Speaker 1: seems like both can't be true. Well, I think what 90 00:05:07,040 --> 00:05:10,320 Speaker 1: I hope the THUD will be looking at is wage 91 00:05:10,320 --> 00:05:18,000 Speaker 1: growth is decelerating and inflation is decelerating even faster now. 92 00:05:18,040 --> 00:05:21,000 Speaker 1: It's not where they want it to be. But these 93 00:05:21,040 --> 00:05:24,520 Speaker 1: are really important markers to watch. And the other lesson, 94 00:05:24,760 --> 00:05:27,040 Speaker 1: I think that's really important to learn. And I talk 95 00:05:27,080 --> 00:05:30,440 Speaker 1: about this a lot. When I was working with the 96 00:05:30,480 --> 00:05:33,640 Speaker 1: Obama team and we were climbing out of the Great Recession. 97 00:05:33,960 --> 00:05:39,559 Speaker 1: My critique of what happened there was our stimulus wasn't enough, 98 00:05:40,320 --> 00:05:42,960 Speaker 1: and and what happened the thing that kept me up 99 00:05:43,000 --> 00:05:45,760 Speaker 1: the most at night, Joe, when I was Labor Secretary 100 00:05:45,880 --> 00:05:49,440 Speaker 1: was the plight of the long term unemployed. Because the 101 00:05:49,480 --> 00:05:55,840 Speaker 1: recession was still prolonged. You had year old folks with 102 00:05:56,120 --> 00:05:58,280 Speaker 1: less than a college degree, and even some with a 103 00:05:58,360 --> 00:06:01,640 Speaker 1: college degree who've been laid off two years. It's really 104 00:06:01,680 --> 00:06:04,120 Speaker 1: hard to climb back in the workforce when you've got 105 00:06:04,160 --> 00:06:07,960 Speaker 1: that big hole in your resume. And and the reason 106 00:06:08,080 --> 00:06:12,200 Speaker 1: that happened is because the stimulus Bill back at OH nine, 107 00:06:12,279 --> 00:06:16,039 Speaker 1: the Recovery Act was as large as the politics of 108 00:06:16,080 --> 00:06:20,080 Speaker 1: the moment would permit. So I don't begrudge anyone, uh 109 00:06:20,120 --> 00:06:22,760 Speaker 1: in that moment because I remember it well. But it 110 00:06:22,839 --> 00:06:25,120 Speaker 1: wasn't enough to meet the moment. So are you answering 111 00:06:25,120 --> 00:06:28,520 Speaker 1: critics without without inviting them who say the Cares Act, 112 00:06:28,600 --> 00:06:32,320 Speaker 1: for instance, and then the American Rescue the legislation sparked 113 00:06:32,560 --> 00:06:35,520 Speaker 1: the inflation that we're trying to combat now, No, I mean, 114 00:06:35,560 --> 00:06:38,440 Speaker 1: the thing to understand is so much of the inflation 115 00:06:38,880 --> 00:06:44,440 Speaker 1: that we're trying to combat is the function of global forces, 116 00:06:44,920 --> 00:06:49,920 Speaker 1: you know, the pandemic, a war, supply chain disruption. Wage 117 00:06:49,920 --> 00:06:55,920 Speaker 1: growth is decelerating, and again, uh, we're doing that without 118 00:06:56,040 --> 00:07:00,799 Speaker 1: sacrificing low unemployment and a strong labor market. We're gonna 119 00:07:00,839 --> 00:07:04,599 Speaker 1: see more activity in the housing market because I think 120 00:07:04,880 --> 00:07:08,560 Speaker 1: the housing market is you know, it's more challenging than 121 00:07:08,640 --> 00:07:11,080 Speaker 1: it was six months ago, and I think it's going 122 00:07:11,120 --> 00:07:14,400 Speaker 1: to be more challenging a few months from now. Uh. 123 00:07:14,440 --> 00:07:17,440 Speaker 1: And so there are already these pressures, and my fear 124 00:07:17,520 --> 00:07:21,000 Speaker 1: is that if the FED over confidence states, people will 125 00:07:21,240 --> 00:07:25,240 Speaker 1: needlessly suffer. And we have to understand that. I'm not 126 00:07:25,360 --> 00:07:29,520 Speaker 1: sure there's a historical moment that we can look at 127 00:07:29,560 --> 00:07:33,040 Speaker 1: that is that actually meets this moment. And what do 128 00:07:33,080 --> 00:07:36,520 Speaker 1: I mean by that? We are in the beginning phases 129 00:07:36,560 --> 00:07:43,000 Speaker 1: of unprecedented infrastructure investments, unprecedented since Dwight D. Eisenhower was president, 130 00:07:43,400 --> 00:07:48,840 Speaker 1: unprecedented investments in combating climate change, unprecedent investments in bringing 131 00:07:48,920 --> 00:07:51,920 Speaker 1: jobs home through the chip TAC. You don't sound like 132 00:07:51,920 --> 00:07:56,880 Speaker 1: somebody I'm not. I'm worried about a job shortage, a 133 00:07:56,960 --> 00:08:01,040 Speaker 1: labor shortage. I'm worried about um skills mismatch. And what 134 00:08:01,120 --> 00:08:04,160 Speaker 1: we have to do is we have to invest in 135 00:08:04,920 --> 00:08:09,800 Speaker 1: making sure that we are training people for these middle 136 00:08:09,840 --> 00:08:14,000 Speaker 1: class jobs of today and tomorrow. We've got incredible opportunities, 137 00:08:14,160 --> 00:08:19,240 Speaker 1: and there's bipartisan consensus that we need to make these 138 00:08:19,280 --> 00:08:22,760 Speaker 1: investments in infrastructure because we've got roads and bridges so old. 139 00:08:23,040 --> 00:08:25,120 Speaker 1: If they were people, you know they'd be on medicare 140 00:08:27,120 --> 00:08:29,080 Speaker 1: great to have Tom Perez and the view from the 141 00:08:29,120 --> 00:08:31,560 Speaker 1: former Labor Secretary of the former chair of the Democratic 142 00:08:31,640 --> 00:08:34,760 Speaker 1: National Committee. As we add the voice of Douglas Holtz Ecan, 143 00:08:35,600 --> 00:08:37,959 Speaker 1: this is not a complete conversation. I feel like until 144 00:08:38,000 --> 00:08:40,800 Speaker 1: we hear from both the president of the American Action 145 00:08:40,880 --> 00:08:44,120 Speaker 1: for and former Council of Economic Advisor's chief economist, had 146 00:08:44,160 --> 00:08:47,120 Speaker 1: the ear of the President and was director of the 147 00:08:47,120 --> 00:08:50,560 Speaker 1: Congressional Budget Office. Uh. Doug, it's great to have you 148 00:08:50,600 --> 00:08:52,800 Speaker 1: back here. The markets have been convinced the Fed won 149 00:08:52,840 --> 00:08:56,600 Speaker 1: the war on inflation. We've had this crazy January rally, Uh. 150 00:08:56,720 --> 00:08:59,400 Speaker 1: J Powell. They thought would be cutting rates by the 151 00:08:59,520 --> 00:09:03,120 Speaker 1: end of the year. Does this report prove them wrong? Well, 152 00:09:03,160 --> 00:09:06,959 Speaker 1: I certainly thought that the market got ahead of itself. Um, 153 00:09:07,080 --> 00:09:09,679 Speaker 1: if you go back to March of last year, J. 154 00:09:09,840 --> 00:09:12,360 Speaker 1: Powell rolled out this strategy in a speech and said, 155 00:09:12,800 --> 00:09:14,079 Speaker 1: you know, we think we can get back to the 156 00:09:14,120 --> 00:09:18,640 Speaker 1: two percent target by and that says this is a 157 00:09:18,760 --> 00:09:22,480 Speaker 1: challenge that takes years, not months, and there was no 158 00:09:22,559 --> 00:09:25,840 Speaker 1: reason to believe that they were ever going to reverse 159 00:09:25,920 --> 00:09:30,000 Speaker 1: course in three I think that was way premature. We've 160 00:09:30,000 --> 00:09:32,280 Speaker 1: gotten a lot of help from the top line. On 161 00:09:32,320 --> 00:09:35,680 Speaker 1: the top line from energy prices coming down. Um, you know, 162 00:09:35,960 --> 00:09:38,000 Speaker 1: we've seen some spike and eggs and other food prices. 163 00:09:38,320 --> 00:09:40,080 Speaker 1: If you strip out that and go to the core 164 00:09:40,200 --> 00:09:42,360 Speaker 1: and then just take out take out shelter, which is 165 00:09:42,760 --> 00:09:46,360 Speaker 1: got a big lag in it, we've made essentially a 166 00:09:46,400 --> 00:09:51,160 Speaker 1: half a point in progress since last August. It's not 167 00:09:51,240 --> 00:09:56,080 Speaker 1: a dramatic deceleration inflation. So the proof is in lower inflation. 168 00:09:56,440 --> 00:09:58,160 Speaker 1: Getting the four was never gonna be hard. Getting the 169 00:09:58,200 --> 00:10:00,880 Speaker 1: two is a lot of work. So we've got a 170 00:10:00,880 --> 00:10:04,240 Speaker 1: market celebrating slowing wage growth. You need to see wage 171 00:10:04,280 --> 00:10:07,320 Speaker 1: declines before you got to see the end of this, 172 00:10:07,400 --> 00:10:10,080 Speaker 1: right question. You gotta see inflation go to two. That's 173 00:10:10,960 --> 00:10:14,559 Speaker 1: whatever your your view of the chain of events is 174 00:10:15,400 --> 00:10:17,800 Speaker 1: is up to you. But we're not there. We're not 175 00:10:17,840 --> 00:10:20,520 Speaker 1: even close. So that's that's our point number one. Point 176 00:10:20,640 --> 00:10:25,280 Speaker 1: number two is that, Um, you know, the durable inflation 177 00:10:25,440 --> 00:10:27,360 Speaker 1: and the hot labor market are the flip side of 178 00:10:27,360 --> 00:10:30,600 Speaker 1: the shape coin. We've got the inflation because we overstimulated. 179 00:10:30,679 --> 00:10:33,599 Speaker 1: That's how we got this amazing job market. You're not 180 00:10:33,640 --> 00:10:35,400 Speaker 1: going to get rid of one and not the other 181 00:10:35,520 --> 00:10:37,800 Speaker 1: so so looking at the labor market makes a lot 182 00:10:37,800 --> 00:10:41,840 Speaker 1: of sense to me. Not today report. I think you know, 183 00:10:41,880 --> 00:10:44,240 Speaker 1: as I said before, it needs to be taken seriously 184 00:10:44,320 --> 00:10:46,240 Speaker 1: but not literally. There are a lot of reasons to 185 00:10:46,240 --> 00:10:49,720 Speaker 1: believe these numbers have some weather effects in them. The seasons, 186 00:10:49,720 --> 00:10:52,560 Speaker 1: as is always tough. In January, there's a strike, I mean, 187 00:10:52,800 --> 00:10:54,920 Speaker 1: so put it all aside, and what do you have. 188 00:10:54,960 --> 00:10:59,400 Speaker 1: You have a strong labor market again, some nice out 189 00:10:59,480 --> 00:11:02,240 Speaker 1: work on this plot sideward particiation ticktop a little bit, 190 00:11:02,480 --> 00:11:04,840 Speaker 1: but it's not dramatically different than what we've seen in 191 00:11:04,880 --> 00:11:08,360 Speaker 1: recent months. So there's no dratic evidence that that has 192 00:11:08,360 --> 00:11:11,000 Speaker 1: altered the course of the economy. Did this change your 193 00:11:11,040 --> 00:11:15,120 Speaker 1: view on a possible recession, Doug No, I think you 194 00:11:15,160 --> 00:11:17,880 Speaker 1: know we're still looking at a high probability that at 195 00:11:17,880 --> 00:11:21,080 Speaker 1: the end of three we've got a downturn. I don't 196 00:11:21,120 --> 00:11:26,640 Speaker 1: see anything about today's report the changes The Feds need 197 00:11:26,760 --> 00:11:29,360 Speaker 1: to go higher. The pace of which they do it 198 00:11:29,440 --> 00:11:32,840 Speaker 1: is up to them, and that they are by by 199 00:11:33,000 --> 00:11:36,760 Speaker 1: setting the target on actual inflation being demonstree lower for 200 00:11:36,760 --> 00:11:40,120 Speaker 1: a sustained period, They're doing a backward looking test and 201 00:11:40,160 --> 00:11:43,000 Speaker 1: that that just sets you up for overtightening. I think 202 00:11:43,000 --> 00:11:45,480 Speaker 1: that's the big risk to be overtightening. So this kind 203 00:11:45,520 --> 00:11:48,640 Speaker 1: of increases the chance of a recession. Right, we're celebrating 204 00:11:48,679 --> 00:11:50,440 Speaker 1: this today, but it could mean more pain on the 205 00:11:50,440 --> 00:11:54,079 Speaker 1: other end. That's what I think. I mean. Look, they 206 00:11:54,080 --> 00:11:56,280 Speaker 1: have said repeatedly again, I think all if you was 207 00:11:56,320 --> 00:11:58,400 Speaker 1: listened to the chairman to take on his word, it 208 00:11:58,480 --> 00:12:00,920 Speaker 1: is a bigger mistake to ease premium truly than to 209 00:12:01,000 --> 00:12:03,240 Speaker 1: do too much. That the odds of them doing to 210 00:12:03,280 --> 00:12:05,120 Speaker 1: much a pretty high, and they talk like that, that's 211 00:12:05,120 --> 00:12:08,800 Speaker 1: what you get. I asked Tom Ferez about the just 212 00:12:08,880 --> 00:12:12,440 Speaker 1: these this ridiculous difference between the gap between the number 213 00:12:12,440 --> 00:12:14,880 Speaker 1: and the estimates here you answered that a little bit. 214 00:12:14,920 --> 00:12:17,440 Speaker 1: You suggested how noisy things can be, and we're in 215 00:12:17,520 --> 00:12:19,800 Speaker 1: fact in the month of January. But does it also 216 00:12:19,840 --> 00:12:22,920 Speaker 1: indicate something about this economy when when the forecasts have 217 00:12:23,000 --> 00:12:28,120 Speaker 1: just been so consistently off. I think there are some 218 00:12:28,160 --> 00:12:32,360 Speaker 1: pieces that are difficult. So we know that China, for example, 219 00:12:32,360 --> 00:12:35,800 Speaker 1: has an outsized role in the pace of global growth 220 00:12:35,880 --> 00:12:38,839 Speaker 1: and has an outside role on global oil prices, and 221 00:12:38,920 --> 00:12:41,920 Speaker 1: thus um the FEDS need to react to those in 222 00:12:41,960 --> 00:12:45,079 Speaker 1: the top line inflation numbers. Do we have any idea 223 00:12:45,559 --> 00:12:48,079 Speaker 1: the state and trajectory to the Chinese economy. We do not. 224 00:12:48,720 --> 00:12:51,160 Speaker 1: You know, you believe the numbers. We really don't know 225 00:12:51,200 --> 00:12:55,360 Speaker 1: what's up to with this new COVID strategy. So yeah, 226 00:12:55,480 --> 00:12:57,440 Speaker 1: that's a really hard situation to be in. There's no 227 00:12:57,520 --> 00:13:01,319 Speaker 1: question about it. We have a land war Europe that 228 00:13:01,520 --> 00:13:04,640 Speaker 1: may add to the uncertainties. The set is using tools 229 00:13:04,720 --> 00:13:07,360 Speaker 1: which have always been uncertain, long and variable lags and 230 00:13:07,400 --> 00:13:11,160 Speaker 1: interest rates, plus portfolio tightening that they have never done before. 231 00:13:11,559 --> 00:13:14,760 Speaker 1: So the amount of uncertainty that's at his president is 232 00:13:14,880 --> 00:13:17,640 Speaker 1: enormous and and we all have toe a little bit 233 00:13:17,640 --> 00:13:19,240 Speaker 1: modest about our ability to see how it's going to 234 00:13:19,320 --> 00:13:24,000 Speaker 1: play out. Um, I just think given the metrics they're 235 00:13:24,000 --> 00:13:27,760 Speaker 1: looking at and the kinds of errors they're willing to make, 236 00:13:27,880 --> 00:13:30,640 Speaker 1: the odds of them uh ady of in a recession 237 00:13:30,720 --> 00:13:33,640 Speaker 1: or higher than than their odds of them not. I'm 238 00:13:33,679 --> 00:13:36,560 Speaker 1: really glad you joined us, Douglas Saltzek and American Action 239 00:13:36,679 --> 00:13:40,520 Speaker 1: Forum former of course, White House economist former director cbo 240 00:13:40,679 --> 00:13:43,760 Speaker 1: as we assembled our panel for the good and the 241 00:13:43,800 --> 00:13:46,120 Speaker 1: bad on this Rick Davis is back today. I'm glad 242 00:13:46,160 --> 00:13:50,160 Speaker 1: to say Republican Strategists, Bloomberg Politics contributor, joined by John 243 00:13:50,240 --> 00:13:53,960 Speaker 1: la Bombard, Senior VP at Rock Solutions, former communications director 244 00:13:54,000 --> 00:13:57,560 Speaker 1: for Senator Kirston Cinema. Great to have everybody here on 245 00:13:57,600 --> 00:14:00,560 Speaker 1: a Friday. Uh, Rick boy, you know, I guess you 246 00:14:00,640 --> 00:14:02,680 Speaker 1: take that victory lap now while you can as this 247 00:14:02,720 --> 00:14:06,080 Speaker 1: White House because the President could be apologizing for an 248 00:14:06,120 --> 00:14:09,240 Speaker 1: economic downturn in a year. What do you think, Well, 249 00:14:09,240 --> 00:14:11,920 Speaker 1: it just reminds me what a buzzkiller you know, Doug 250 00:14:11,920 --> 00:14:14,960 Speaker 1: Holtzman is. I mean, he was our advisor, top economic 251 00:14:15,000 --> 00:14:17,559 Speaker 1: advisor for the McCain campaign. A way, he hasn't changed 252 00:14:17,600 --> 00:14:19,760 Speaker 1: a bit, right, he can find a storm cloud on 253 00:14:19,760 --> 00:14:22,520 Speaker 1: the horizon. So you've had these briefings before. Oh yeah, no, 254 00:14:22,640 --> 00:14:24,680 Speaker 1: but he's usually right. So this is a guy to 255 00:14:25,080 --> 00:14:28,480 Speaker 1: listen to. Unfortunately, Um yeah, look, I mean Biden has 256 00:14:28,520 --> 00:14:32,120 Speaker 1: to take all this is good news. He's not gonna 257 00:14:32,120 --> 00:14:34,800 Speaker 1: look too far down the horizon himself. He doesn't. He 258 00:14:34,880 --> 00:14:38,320 Speaker 1: doesn't want to shake off any bad news right away. 259 00:14:38,400 --> 00:14:41,160 Speaker 1: So and it's a run up to the to the 260 00:14:41,200 --> 00:14:43,520 Speaker 1: State of the Union. So he's gonna he's gonna use 261 00:14:43,520 --> 00:14:45,480 Speaker 1: this as just a momentum builder to go in there 262 00:14:45,480 --> 00:14:48,080 Speaker 1: and say, wow, I'm quite a magician. I've been able 263 00:14:48,080 --> 00:14:49,760 Speaker 1: to find a way to not let us go into 264 00:14:49,800 --> 00:14:54,760 Speaker 1: a recession and make progress on cutting down inflation. So yeah, 265 00:14:54,800 --> 00:14:57,240 Speaker 1: this was this was exactly what he would have wanted. 266 00:14:57,840 --> 00:15:01,200 Speaker 1: And frankly even more so, uh going into you know 267 00:15:01,280 --> 00:15:04,200 Speaker 1: next week's big State of the Union. Well, that's right, 268 00:15:04,280 --> 00:15:07,520 Speaker 1: and there's a lot to celebrate here, John. Obviously the 269 00:15:07,560 --> 00:15:09,960 Speaker 1: President is not going to come out and apologize for 270 00:15:09,960 --> 00:15:14,320 Speaker 1: for overwhelming job growth. But how does this administration position 271 00:15:14,360 --> 00:15:18,160 Speaker 1: itself for what could be much more difficult times a 272 00:15:18,240 --> 00:15:21,920 Speaker 1: year from now maybe sooner. Is it just staying independent 273 00:15:21,960 --> 00:15:23,760 Speaker 1: from the Fed and saying, hey, look we weren't the 274 00:15:23,760 --> 00:15:27,600 Speaker 1: one hiking rates. Yeah, sure, I think that's part of it. 275 00:15:27,720 --> 00:15:31,320 Speaker 1: And and look, we're exactly right. The President is going 276 00:15:31,360 --> 00:15:33,600 Speaker 1: to take a victory lap on this. It would be 277 00:15:33,840 --> 00:15:38,320 Speaker 1: probably some form of political malpractice if he didn't. I 278 00:15:38,440 --> 00:15:41,400 Speaker 1: agree with your previous guest as well from American Action 279 00:15:41,480 --> 00:15:44,040 Speaker 1: that we we should all be a little bit humble 280 00:15:44,200 --> 00:15:47,680 Speaker 1: and a little bit um recognizing that a lot of 281 00:15:47,720 --> 00:15:51,160 Speaker 1: predictions have been really off. So if that's the landscape 282 00:15:51,200 --> 00:15:55,160 Speaker 1: in which this administration is working, yeah, I think it's 283 00:15:55,240 --> 00:15:58,720 Speaker 1: right to be cognizant that the FEDS actions may continue 284 00:15:58,720 --> 00:16:01,240 Speaker 1: to have an impact on this. But the President's got 285 00:16:01,280 --> 00:16:05,240 Speaker 1: some great details to dive into here, um as as 286 00:16:05,280 --> 00:16:08,240 Speaker 1: Democratic leaders do as well. It's not just the job numbers. 287 00:16:08,240 --> 00:16:11,280 Speaker 1: There were some really interesting cross tabs in there, and 288 00:16:11,320 --> 00:16:14,720 Speaker 1: the leisure and hospitality industry that I think he could 289 00:16:14,800 --> 00:16:19,000 Speaker 1: make a compelling case that the last four years of 290 00:16:19,080 --> 00:16:23,600 Speaker 1: trying to rebuild after the pandemic have yielded some good dividends, 291 00:16:23,680 --> 00:16:26,400 Speaker 1: even as we all know, they also yielded perhaps some 292 00:16:26,480 --> 00:16:30,400 Speaker 1: inflationary pressure on the economy. So without knowing what's around 293 00:16:30,400 --> 00:16:32,480 Speaker 1: the turn, I think he has to and I think 294 00:16:32,480 --> 00:16:36,680 Speaker 1: he will take credit. That's the first wing from our panel. 295 00:16:36,680 --> 00:16:39,320 Speaker 1: They'll be back with more because so far it's been 296 00:16:39,360 --> 00:16:41,320 Speaker 1: a balloon free zone, but we're going to end that 297 00:16:41,440 --> 00:16:45,720 Speaker 1: as the balloon makes its way across the continental United States. 298 00:16:45,760 --> 00:16:48,280 Speaker 1: What a day? Are you kidding me? Rick Davis, John 299 00:16:48,360 --> 00:16:51,160 Speaker 1: le Bombard next with the Chinese spy balloon on the 300 00:16:51,200 --> 00:16:55,320 Speaker 1: fastest hour in politics. This is Bloomberg. While we won't 301 00:16:55,360 --> 00:16:58,160 Speaker 1: get into specifics in regards to the exact location, I 302 00:16:58,200 --> 00:17:01,520 Speaker 1: can tell you that the balloon continues to move eastward 303 00:17:01,880 --> 00:17:12,200 Speaker 1: and is currently over the center of the continental United States. Again, 304 00:17:12,280 --> 00:17:14,639 Speaker 1: we currently assess that the balloon does not present a 305 00:17:14,680 --> 00:17:17,360 Speaker 1: military or physical threat to people on the ground at 306 00:17:17,359 --> 00:17:19,680 Speaker 1: this time. I am in favor of shooting it down. 307 00:17:19,760 --> 00:17:23,160 Speaker 1: I understand a concern over debris, but that doesn't really 308 00:17:23,200 --> 00:17:26,119 Speaker 1: pass the smell test. The tiny side is gathering in 309 00:17:26,280 --> 00:17:30,159 Speaker 1: very fine effect. We hope that's both sides will and 310 00:17:30,320 --> 00:17:36,160 Speaker 1: though this matter in a cool headed manner, just keep 311 00:17:36,200 --> 00:17:40,360 Speaker 1: it cool, a cool headed manner. It's the idea from 312 00:17:40,400 --> 00:17:44,040 Speaker 1: Beijing as they float a spy balloon across the country. 313 00:17:44,080 --> 00:17:46,639 Speaker 1: I mean, you wouldn't believe it in a movie. This 314 00:17:46,720 --> 00:17:49,120 Speaker 1: has got to be the open on Saturday Night Live, right, 315 00:17:49,640 --> 00:17:52,000 Speaker 1: because you know the balloon boy is going to come 316 00:17:52,000 --> 00:17:53,760 Speaker 1: out of that thing, or at least Matt Miller told 317 00:17:53,760 --> 00:17:56,680 Speaker 1: me that was the case. My god, what a day 318 00:17:56,720 --> 00:18:01,760 Speaker 1: we've had with this. That's the attention. The focus of 319 00:18:01,800 --> 00:18:05,720 Speaker 1: the nation is trained on what the heck is floating over, 320 00:18:05,800 --> 00:18:08,399 Speaker 1: not even Montana any longer. Look, if you've been at 321 00:18:08,440 --> 00:18:10,120 Speaker 1: work all day, I'm gonna bring you up the date 322 00:18:10,160 --> 00:18:13,080 Speaker 1: on this because it has been a doozy. They did 323 00:18:13,119 --> 00:18:16,920 Speaker 1: hold a briefing at the Pentagon. The Brigadier General pat Ryder, 324 00:18:17,000 --> 00:18:19,879 Speaker 1: spokesman for the Pentagon, right here with the latest Listen. 325 00:18:20,440 --> 00:18:23,520 Speaker 1: We know that it's a surveillance balloon, uh, and I'm 326 00:18:23,520 --> 00:18:25,520 Speaker 1: not gonna be able to be more specific than that. 327 00:18:26,200 --> 00:18:29,119 Speaker 1: We do know that the balloon has violated US airspace 328 00:18:29,160 --> 00:18:32,880 Speaker 1: and international law, which is unacceptable. And so we've conveyed 329 00:18:32,920 --> 00:18:36,920 Speaker 1: this directly to the PRC at multiple levels. Uh. And 330 00:18:37,040 --> 00:18:40,000 Speaker 1: in terms of specific locations, I'm not going to be 331 00:18:40,000 --> 00:18:42,280 Speaker 1: able to go into specific locations again other than to 332 00:18:42,320 --> 00:18:45,119 Speaker 1: say it's moving eastward at this time. Moving eastward, he 333 00:18:45,160 --> 00:18:47,879 Speaker 1: now says, somewhere in the middle of the continental United States. 334 00:18:47,960 --> 00:18:50,280 Speaker 1: The thing is commercial cameras can see it. That's why 335 00:18:50,280 --> 00:18:53,719 Speaker 1: it's been on TV all day. It's like the UFO 336 00:18:53,880 --> 00:18:58,120 Speaker 1: hanging over New York, right and the movie Karine. John Pierre, 337 00:18:58,160 --> 00:19:00,680 Speaker 1: the White House Press Secretary, h held the gaggal on 338 00:19:00,760 --> 00:19:04,200 Speaker 1: Air Force One with reporters earlier today. The latest here 339 00:19:04,240 --> 00:19:06,680 Speaker 1: from the White House. The President was briefed on this 340 00:19:07,000 --> 00:19:10,080 Speaker 1: on Tuesday. He was he has been continued to receive 341 00:19:10,119 --> 00:19:13,560 Speaker 1: regular briefings and updates from the National Security Team. I 342 00:19:13,600 --> 00:19:16,680 Speaker 1: just want to reiterate what the Pentagon said earlier today, 343 00:19:17,040 --> 00:19:21,480 Speaker 1: my counterpart, Uh, we've detected and is tracking a high 344 00:19:21,600 --> 00:19:25,320 Speaker 1: altitude surveillance balloon that is over the continental United States. Yeah, 345 00:19:25,359 --> 00:19:29,840 Speaker 1: sixty thou feet above the United States. Right, surveillance balloon, 346 00:19:29,920 --> 00:19:34,280 Speaker 1: spy balloon that the Chinese said was a civilian weather 347 00:19:34,320 --> 00:19:37,520 Speaker 1: balloon or something that went of course. Uh Mounting is 348 00:19:37,560 --> 00:19:40,639 Speaker 1: spokesperson with the Chinese Ministry of Foreign Affairs here, speaking 349 00:19:40,640 --> 00:19:44,040 Speaker 1: through a translator. We are gathering and verifying the fact. 350 00:19:44,480 --> 00:19:47,960 Speaker 1: I would like to stress that before it becomes clear 351 00:19:48,000 --> 00:19:51,720 Speaker 1: what happened, and a deliberate speculation we're hyping up will 352 00:19:51,760 --> 00:19:57,560 Speaker 1: not help handling the matter. Okay, but the Secretary of 353 00:19:57,600 --> 00:20:00,159 Speaker 1: States still not coming, and there are questions. It is 354 00:20:00,200 --> 00:20:03,399 Speaker 1: about whether this is a coincidence. As Tony Lincoln was 355 00:20:03,400 --> 00:20:06,600 Speaker 1: on his way to China this weekend, he held a 356 00:20:06,640 --> 00:20:09,400 Speaker 1: news conference earlier today. Listen. I spoke this morning with 357 00:20:09,760 --> 00:20:13,359 Speaker 1: Director of the CCP Central Foreign Affairs Office Wonghi to 358 00:20:13,440 --> 00:20:17,399 Speaker 1: convey that in light of China's unacceptable action, I am 359 00:20:17,440 --> 00:20:21,280 Speaker 1: postponing my plan travel this weekend to China. So here 360 00:20:21,320 --> 00:20:24,280 Speaker 1: we are with not a lot of idea exactly how 361 00:20:24,280 --> 00:20:26,280 Speaker 1: this is gonna end. Are they gonna try to shoot 362 00:20:26,280 --> 00:20:28,320 Speaker 1: it down at some point they tried. They decided not to, 363 00:20:28,440 --> 00:20:31,360 Speaker 1: of course, because they thought, you know, this thing would 364 00:20:31,400 --> 00:20:33,520 Speaker 1: break up and fall on houses and people, even though 365 00:20:33,520 --> 00:20:35,840 Speaker 1: it was over Montana. Maybe they can get it over 366 00:20:35,920 --> 00:20:38,080 Speaker 1: the ocean. Maybe they can blow this thing off. Course, 367 00:20:38,200 --> 00:20:41,159 Speaker 1: I don't know. Tony Capacio knows more than I do. 368 00:20:41,240 --> 00:20:47,359 Speaker 1: He was in the Pentagon briefing earlier today, Bloomberg Pentagon reporter. Uh, Tony, 369 00:20:47,400 --> 00:20:49,520 Speaker 1: it's great to have you back. What the heck is 370 00:20:49,560 --> 00:20:54,440 Speaker 1: this thing? Well, I think by the weekend or maybe 371 00:20:54,560 --> 00:20:57,160 Speaker 1: mond Tuesday, it will be off the US. I think 372 00:20:57,160 --> 00:20:59,560 Speaker 1: he'll be over the Atlantic Ocean by then, and then 373 00:20:59,600 --> 00:21:02,040 Speaker 1: the spec ilition will begin. Should the Navy try to 374 00:21:02,800 --> 00:21:04,600 Speaker 1: try to recover it if it falls in the ocean. 375 00:21:04,640 --> 00:21:09,080 Speaker 1: But right now they're monitoring it. They don't, as you say, 376 00:21:09,160 --> 00:21:11,399 Speaker 1: they don't see a threat. And today I thought he 377 00:21:11,440 --> 00:21:14,320 Speaker 1: made a decent case. I didn't realize that the payload, 378 00:21:14,520 --> 00:21:18,320 Speaker 1: the sensors on this thing, we're heavy enough that that 379 00:21:18,359 --> 00:21:21,600 Speaker 1: was a concern. State that fell that could have hurt somebody. 380 00:21:21,600 --> 00:21:27,240 Speaker 1: It's not the balloon itself. That was a useful metric. Well, 381 00:21:27,280 --> 00:21:29,640 Speaker 1: so there might be as you know, an action plan 382 00:21:29,760 --> 00:21:31,520 Speaker 1: here to your point, maybe they can capture it and 383 00:21:31,800 --> 00:21:33,440 Speaker 1: take a look at it. But what would happen if 384 00:21:33,440 --> 00:21:36,720 Speaker 1: the tables were turned here? I mean, Pat Rder made 385 00:21:36,720 --> 00:21:39,200 Speaker 1: it clear this is a violation of airspace. That there's 386 00:21:39,320 --> 00:21:42,520 Speaker 1: this is completely unacceptable. Our balloon has been shot down 387 00:21:42,520 --> 00:21:47,439 Speaker 1: by now right, there's a balloon over China. Probably, I 388 00:21:47,440 --> 00:21:49,080 Speaker 1: mean where I think we're our country is a little 389 00:21:49,080 --> 00:21:50,800 Speaker 1: bit more our military is a little bit more strained 390 00:21:50,840 --> 00:21:53,040 Speaker 1: than that. I mean, the Dow would have dropped a 391 00:21:53,040 --> 00:21:54,959 Speaker 1: lot more than one percent today if this thing had 392 00:21:55,000 --> 00:21:57,159 Speaker 1: been shot down. You know that it would have been 393 00:21:57,160 --> 00:21:59,760 Speaker 1: a panic that we're going to war with China. So 394 00:21:59,800 --> 00:22:02,159 Speaker 1: I thought the military did a good responsible job and 395 00:22:02,920 --> 00:22:06,000 Speaker 1: assessing not to do it. That would have been a major, 396 00:22:06,160 --> 00:22:11,240 Speaker 1: major destabilizing event. It's crazy, You've got a great sense 397 00:22:11,280 --> 00:22:14,520 Speaker 1: of humor. Tony U asked UH spokesman if it was 398 00:22:14,560 --> 00:22:16,840 Speaker 1: the man on the moon or if that was the 399 00:22:16,880 --> 00:22:19,639 Speaker 1: actual balloon we were seeing in all these photographs. He 400 00:22:19,680 --> 00:22:21,760 Speaker 1: didn't even want to confirm that. I mean, getting an 401 00:22:21,800 --> 00:22:26,199 Speaker 1: answer is pretty difficult at the moment, getting an on 402 00:22:26,320 --> 00:22:29,480 Speaker 1: camera on the retreat answer. I was trying to be funny. Yeah, 403 00:22:29,520 --> 00:22:33,600 Speaker 1: I guess I was. It's a little more difficult, but 404 00:22:34,440 --> 00:22:37,880 Speaker 1: they're trying to be somewhat transparent. They're signaling that they 405 00:22:37,880 --> 00:22:39,639 Speaker 1: feel that this is while it's a maneuver, it's a 406 00:22:39,680 --> 00:22:43,480 Speaker 1: maneuvering set, a maneuvering balloon under the control of the TRC. 407 00:22:43,680 --> 00:22:46,320 Speaker 1: It's not like on its own course. It's not like 408 00:22:46,359 --> 00:22:49,760 Speaker 1: on a GPS free program. Of course, the course it's 409 00:22:49,840 --> 00:22:56,520 Speaker 1: taking so suggest it's being controlled overseas. Boy, okay, well, 410 00:22:56,560 --> 00:22:59,480 Speaker 1: obviously they're going to have to keep tabs on this. Yeah. 411 00:22:59,760 --> 00:23:01,760 Speaker 1: Is it going to Florida? Is that where the track 412 00:23:01,880 --> 00:23:04,160 Speaker 1: is pointing? You know, I thought I thought there would 413 00:23:04,160 --> 00:23:06,439 Speaker 1: be a GPS track over Marrol Lago, but that's not 414 00:23:06,480 --> 00:23:10,200 Speaker 1: the Well, you know, I'm just thinking Rhonda Santis calls 415 00:23:10,240 --> 00:23:12,199 Speaker 1: up the National Guard. He's gonna handle this at some 416 00:23:12,240 --> 00:23:14,000 Speaker 1: point by the time it gets down there, I don't know. 417 00:23:14,080 --> 00:23:15,920 Speaker 1: I don't think the National Guard of Florida has a 418 00:23:16,000 --> 00:23:20,000 Speaker 1: sid a weapons that can reach that high. It's actually, 419 00:23:20,040 --> 00:23:22,440 Speaker 1: that's a great point you make, Tony. We supposedly sent 420 00:23:23,040 --> 00:23:25,280 Speaker 1: not supposedly the Pentagon says we sent an F twenty 421 00:23:25,280 --> 00:23:26,679 Speaker 1: two or a couple of them up there. Can they 422 00:23:26,680 --> 00:23:28,919 Speaker 1: even fly that high? Were they circling this this this 423 00:23:28,960 --> 00:23:32,040 Speaker 1: balloon looking at it, I don't think they were circling, 424 00:23:32,080 --> 00:23:35,080 Speaker 1: but they couldn't fly that high in short duration. Yeah, 425 00:23:35,320 --> 00:23:38,320 Speaker 1: I mean you also have up we have drones that 426 00:23:38,359 --> 00:23:42,240 Speaker 1: can go that high too. It's eleven miles up. They'll 427 00:23:42,280 --> 00:23:44,199 Speaker 1: have something called a global Hawk that can get up 428 00:23:44,200 --> 00:23:46,520 Speaker 1: there too. But the rest assured if he can see 429 00:23:46,520 --> 00:23:49,760 Speaker 1: this on the ground through a telescope, the multibillion dollar 430 00:23:49,880 --> 00:23:54,800 Speaker 1: Pentagon has a way to track this thing. Yeah, and 431 00:23:54,960 --> 00:23:57,439 Speaker 1: I think I'm thinking by Monday, Tuesday, this will be 432 00:23:57,480 --> 00:24:00,040 Speaker 1: over you, over the ocean, out of US airspace, and 433 00:24:00,040 --> 00:24:01,720 Speaker 1: and we'll see what the blowback is going to be. 434 00:24:02,000 --> 00:24:04,440 Speaker 1: You were called show two thousand and one. April two 435 00:24:04,440 --> 00:24:07,760 Speaker 1: thousand and one, an e P three US reconstance polant 436 00:24:07,800 --> 00:24:09,920 Speaker 1: was brought down by the Chinese and there was a 437 00:24:10,000 --> 00:24:14,080 Speaker 1: standoff for many, many days. We forget this because nine 438 00:24:14,119 --> 00:24:19,439 Speaker 1: eleven subsumed it. But relations resumed after tensions abated, And 439 00:24:19,480 --> 00:24:21,159 Speaker 1: I think that's going to be the case. Or this 440 00:24:21,240 --> 00:24:23,719 Speaker 1: is a lot different than taking down a US biplane 441 00:24:23,720 --> 00:24:26,879 Speaker 1: and Overhanan Island. I think you know, they're invading our 442 00:24:26,920 --> 00:24:29,720 Speaker 1: airspace but no, no, no, no, nothing's been fired. So 443 00:24:30,760 --> 00:24:33,840 Speaker 1: great reporting today, Tony. Glad to have you. Tony Capacio, 444 00:24:33,840 --> 00:24:36,560 Speaker 1: are kind of gone reporter here at Bloomberg, straight off 445 00:24:36,560 --> 00:24:40,080 Speaker 1: the briefing. That's the real stuff. That's his latest as 446 00:24:40,119 --> 00:24:41,720 Speaker 1: we get and I suspect it will be a working 447 00:24:41,720 --> 00:24:45,119 Speaker 1: weekend for Tony Craig Singleton with US now on the 448 00:24:45,119 --> 00:24:50,200 Speaker 1: diplomatic side. As you heard, Tony Blinkin's canceled the trip. Uh, 449 00:24:50,359 --> 00:24:52,800 Speaker 1: and that's a pretty big deal. A senior China fellow 450 00:24:52,840 --> 00:24:55,359 Speaker 1: at the Foundation for the Defense of Democracies. Is this 451 00:24:55,520 --> 00:24:58,440 Speaker 1: just an interruption here, Craig, or is this a major 452 00:24:58,480 --> 00:25:01,960 Speaker 1: international event? Thanks Joe, It's been a weird day. I 453 00:25:01,960 --> 00:25:04,600 Speaker 1: think we'll I'll talk about how we survived the balloon game. Um. 454 00:25:05,480 --> 00:25:08,159 Speaker 1: I mean, I think that the administration was justified in 455 00:25:08,800 --> 00:25:11,960 Speaker 1: certainly canceling this trip, and it will be very hard pressed, 456 00:25:12,560 --> 00:25:15,760 Speaker 1: I think to reschedule it. Um. That is, until trying 457 00:25:15,760 --> 00:25:19,000 Speaker 1: to provide some more convincing and fulsome explanation regarding these 458 00:25:19,240 --> 00:25:22,720 Speaker 1: latest espionage allegations. This is not a weather balloon. This 459 00:25:22,800 --> 00:25:25,920 Speaker 1: is a long range or connaissance vehicle, and Secretary State 460 00:25:25,960 --> 00:25:28,640 Speaker 1: Lincoln confirmed that today in his remarks, I would say 461 00:25:28,640 --> 00:25:32,520 Speaker 1: that generally expectations were low um that Lincoln's trip was 462 00:25:32,560 --> 00:25:35,880 Speaker 1: going to result in any major diplomatic deliverables, and at 463 00:25:35,920 --> 00:25:39,360 Speaker 1: this point a meaningful reset between the two superpowers appears 464 00:25:39,400 --> 00:25:41,879 Speaker 1: all but off the table, all but off the table 465 00:25:42,680 --> 00:25:45,360 Speaker 1: because of this, we mean, so then are should are 466 00:25:45,359 --> 00:25:47,440 Speaker 1: we led to believe? Then this is not a coincidence 467 00:25:47,440 --> 00:25:50,960 Speaker 1: they sent this thing over in the days before a 468 00:25:51,080 --> 00:25:54,760 Speaker 1: very important visit by our Secretary of State. I mean, 469 00:25:54,760 --> 00:25:56,720 Speaker 1: there are those that argue that the White House should 470 00:25:56,720 --> 00:25:59,520 Speaker 1: not let this one incident derail ongoing efforts to put 471 00:25:59,520 --> 00:26:02,520 Speaker 1: a so called floor in the relationships, But I think 472 00:26:02,560 --> 00:26:04,600 Speaker 1: those commentators are sort of missing the point, right. This 473 00:26:04,680 --> 00:26:07,800 Speaker 1: incident is not a one off. It's broadly consistent with 474 00:26:07,880 --> 00:26:10,840 Speaker 1: China's increasing belligerence over the last few months, and this 475 00:26:11,000 --> 00:26:14,119 Speaker 1: latest crisis I think further calls into question the sincerity 476 00:26:14,119 --> 00:26:17,560 Speaker 1: of China's professed desire to improve the relationships at the 477 00:26:17,560 --> 00:26:20,159 Speaker 1: time when Washington was more or less offering a diplomatic 478 00:26:20,200 --> 00:26:23,440 Speaker 1: off rance overall. Like I said, I think the administration 479 00:26:23,520 --> 00:26:26,240 Speaker 1: was justified in postponing the trip, and the onus is 480 00:26:26,240 --> 00:26:28,879 Speaker 1: now in China to explain its actions and ultimately rain 481 00:26:29,000 --> 00:26:32,280 Speaker 1: in it's problematic irresponsible behavior, and after that the two 482 00:26:32,320 --> 00:26:35,760 Speaker 1: sides can potentially sit down, so long as that eventual 483 00:26:35,920 --> 00:26:39,479 Speaker 1: engagement is consistent with the principles of strict reciprocity, and 484 00:26:39,560 --> 00:26:42,080 Speaker 1: of course it should be in the u s national interests. 485 00:26:42,640 --> 00:26:44,639 Speaker 1: It's just I think it's surreal for for all of 486 00:26:44,720 --> 00:26:46,840 Speaker 1: us because it's still here. We're talking about this in 487 00:26:46,920 --> 00:26:50,399 Speaker 1: real time now. Karine Jehan Pierre said on Air Force 488 00:26:50,480 --> 00:26:53,800 Speaker 1: One Craig that the President was briefed about this on Tuesday, 489 00:26:54,560 --> 00:26:57,600 Speaker 1: so he's known about it for several days. Uh, here 490 00:26:57,640 --> 00:26:59,520 Speaker 1: we are learning about this. I guess it was last 491 00:26:59,600 --> 00:27:01,280 Speaker 1: night for a day morning for a lot of people, 492 00:27:01,760 --> 00:27:03,520 Speaker 1: but they watched this come all the way down the 493 00:27:03,560 --> 00:27:06,359 Speaker 1: coast of Canada, so the administration has been aware of 494 00:27:06,359 --> 00:27:09,000 Speaker 1: this for quite some time. Yeah. I mean you can 495 00:27:09,040 --> 00:27:11,879 Speaker 1: go online and there are so called Santa trackers for 496 00:27:11,920 --> 00:27:14,639 Speaker 1: this thing, and you can see it buzz across Alaska, 497 00:27:14,800 --> 00:27:17,760 Speaker 1: and I mean you could draw inferences of how it's 498 00:27:17,760 --> 00:27:21,600 Speaker 1: deligned directly towards our Minuteman I c b MS in 499 00:27:21,640 --> 00:27:24,080 Speaker 1: Montana and we're it's sort of going from there. Um. 500 00:27:24,080 --> 00:27:26,320 Speaker 1: But I do think that it's a little misguided to 501 00:27:26,359 --> 00:27:28,520 Speaker 1: think that this issue is just going to blow over, 502 00:27:28,880 --> 00:27:33,480 Speaker 1: you know, pun intended um, the domestic uproar involving this provocation, 503 00:27:33,600 --> 00:27:36,520 Speaker 1: I don't think it's it's likely to subside anytime soon. 504 00:27:36,880 --> 00:27:39,320 Speaker 1: There are a few issues that unite Democrats and Republicans 505 00:27:39,320 --> 00:27:42,760 Speaker 1: more than counter during China. UM and whether this and 506 00:27:42,800 --> 00:27:44,960 Speaker 1: that's that's regardless of whether this thing is shot down 507 00:27:44,960 --> 00:27:48,240 Speaker 1: tomorrow or simply drift out of airspace. And that's because 508 00:27:48,680 --> 00:27:51,480 Speaker 1: UM Congress won't almost certainly hold hearings on this issue. 509 00:27:51,600 --> 00:27:54,159 Speaker 1: It's going to extend the stories shelf life, and I 510 00:27:54,160 --> 00:27:56,200 Speaker 1: think we're gonna be asking a lot of questions about, 511 00:27:56,320 --> 00:27:58,240 Speaker 1: you know, what does this look like and how do 512 00:27:58,320 --> 00:28:00,840 Speaker 1: we reasonably engage with Beijing and they continue to take 513 00:28:00,880 --> 00:28:03,399 Speaker 1: these sort of provocative actions. Would we have taken a 514 00:28:03,400 --> 00:28:05,320 Speaker 1: shot at this if we could have, Craig, and I 515 00:28:05,400 --> 00:28:07,720 Speaker 1: ask you that, knowing that the trip was still scheduled, 516 00:28:07,720 --> 00:28:09,520 Speaker 1: they're thinking about this, you know, do we shoot it 517 00:28:09,560 --> 00:28:12,840 Speaker 1: down or are they really just waiting for an opportunity 518 00:28:12,880 --> 00:28:14,760 Speaker 1: for this to get over the water here and and 519 00:28:14,800 --> 00:28:16,520 Speaker 1: sort of capture it and take a look at what 520 00:28:16,560 --> 00:28:19,159 Speaker 1: the heck was was on the balloon. I mean, I 521 00:28:19,200 --> 00:28:21,919 Speaker 1: think that some of the concerns about uh, you know, 522 00:28:21,960 --> 00:28:25,400 Speaker 1: where this thing falls and the velocity of which it falls, 523 00:28:25,480 --> 00:28:28,560 Speaker 1: and the payload which is about the size of three overall, 524 00:28:28,680 --> 00:28:31,040 Speaker 1: the whole thing is about three school buses, I mean, 525 00:28:31,040 --> 00:28:34,360 Speaker 1: those are not insignificant concerns, right, but there is potential 526 00:28:34,480 --> 00:28:37,679 Speaker 1: value in attempting to recover part of this payload and 527 00:28:37,680 --> 00:28:40,760 Speaker 1: to exploit it and potentially to expose that this was 528 00:28:40,840 --> 00:28:44,280 Speaker 1: not a civilian weather balloon, which is how the sort 529 00:28:44,280 --> 00:28:47,000 Speaker 1: of the narrative that China is attempting to sort of 530 00:28:47,040 --> 00:28:50,280 Speaker 1: promote here. It is very clearly a surveillance asset. M 531 00:28:50,360 --> 00:28:53,680 Speaker 1: We assess that the US government with very high confidence, 532 00:28:53,920 --> 00:28:56,440 Speaker 1: and there could be some potential I think in recovering 533 00:28:56,480 --> 00:29:00,120 Speaker 1: the balloon at least reinforcing the story to all as 534 00:29:00,120 --> 00:29:03,080 Speaker 1: and partners around the world. Look, this is what's happening. 535 00:29:03,240 --> 00:29:06,120 Speaker 1: You can't dismiss anything, um, you know, sort of be 536 00:29:06,320 --> 00:29:09,520 Speaker 1: cognizant of your domain awareness, in your territorial integrity, and 537 00:29:09,760 --> 00:29:12,040 Speaker 1: can call China out when they sort of engage in 538 00:29:12,720 --> 00:29:16,480 Speaker 1: just really shortsighted behavior for which they should short of 539 00:29:16,560 --> 00:29:18,960 Speaker 1: they should be sort of held to account you mentioned 540 00:29:18,960 --> 00:29:21,280 Speaker 1: something important, Craig, and that this isn't the first time 541 00:29:21,320 --> 00:29:24,040 Speaker 1: it's happened. UH. The Pentagon will not give us any 542 00:29:24,080 --> 00:29:26,600 Speaker 1: information on where or when, but apparently it's been more 543 00:29:26,640 --> 00:29:28,680 Speaker 1: than once. We don't know if it was over the 544 00:29:28,680 --> 00:29:34,520 Speaker 1: continental US or over a territory, but they have violated 545 00:29:34,520 --> 00:29:39,400 Speaker 1: our airspace with these types of surveillance. I don't know 546 00:29:39,520 --> 00:29:41,760 Speaker 1: balloons or aircraft or what he was referring to. We 547 00:29:41,760 --> 00:29:45,840 Speaker 1: couldn't get details on it. So how unusual is this, 548 00:29:45,880 --> 00:29:49,200 Speaker 1: How how much of a problem is today and compared 549 00:29:49,240 --> 00:29:52,200 Speaker 1: to the pattern that we've apparently seen, I mean Chinese 550 00:29:52,200 --> 00:29:54,920 Speaker 1: surveillance balloons have been sighted on numerous occasions over the 551 00:29:55,000 --> 00:29:57,640 Speaker 1: last five years in different parts of the Pacific, including 552 00:29:57,680 --> 00:30:01,920 Speaker 1: near sensitive US military installations in Hawaii. So in today's 553 00:30:01,960 --> 00:30:04,640 Speaker 1: era of sort of a new great power competition, these 554 00:30:04,640 --> 00:30:07,840 Speaker 1: sort of inflatables, and they're called high altitude inflatables. You know, 555 00:30:07,920 --> 00:30:10,760 Speaker 1: they can serve as low cost platforms to collect intelligence, 556 00:30:10,880 --> 00:30:14,560 Speaker 1: enhance existing networks. Some can even be used reportedly to 557 00:30:14,680 --> 00:30:19,480 Speaker 1: detect hypersonic missiles. And just last year UM, the long 558 00:30:19,600 --> 00:30:24,160 Speaker 1: range rocket Bergs of the People's Liberation Army UH launched 559 00:30:24,160 --> 00:30:27,200 Speaker 1: a series of high altitude balloons over Taiwan, ostensibly for 560 00:30:27,360 --> 00:30:31,000 Speaker 1: intelligence collection purposes, and so there is a recent precedent 561 00:30:31,040 --> 00:30:34,000 Speaker 1: for this type of Chinese collection activity. You know, however 562 00:30:34,120 --> 00:30:37,640 Speaker 1: rudimentary it may appear at first. Blush Craig Singleton. Great 563 00:30:37,680 --> 00:30:39,880 Speaker 1: to have you, senior China fellow at the Foundation for 564 00:30:39,880 --> 00:30:42,880 Speaker 1: the Defense of Democracies, with a lot of information there 565 00:30:43,120 --> 00:30:45,680 Speaker 1: actually to consider for our panel. Rick Davis is back 566 00:30:46,000 --> 00:30:48,640 Speaker 1: and John the Bombard. You wouldn't think we'd be talking 567 00:30:48,680 --> 00:30:52,560 Speaker 1: about this, guys, but we are. And John is the 568 00:30:52,600 --> 00:30:55,680 Speaker 1: administration planet right so far, because the first question everyone 569 00:30:55,800 --> 00:30:59,360 Speaker 1: is asking is, uh, why don't we shoot this thing down? 570 00:30:59,400 --> 00:31:02,640 Speaker 1: Listen to Worstman Mike Gallagher, just as an example here 571 00:31:03,480 --> 00:31:06,600 Speaker 1: from earlier today. This is a Republican from Wisconsin who 572 00:31:06,680 --> 00:31:10,040 Speaker 1: chairs the newly formed House Select Committee on China. I 573 00:31:10,040 --> 00:31:12,520 Speaker 1: am in favor of shooting it down. I understand a 574 00:31:12,600 --> 00:31:15,840 Speaker 1: concern over debris, but that doesn't really pass the smell 575 00:31:15,920 --> 00:31:18,600 Speaker 1: test with me. I mean, they tracked this thing for 576 00:31:18,640 --> 00:31:21,440 Speaker 1: a long time, allegedly from the Aleutian Islands, all the 577 00:31:21,480 --> 00:31:26,400 Speaker 1: way over sparsely populated parts of Canada, over sparsely populated Montana. 578 00:31:26,440 --> 00:31:28,960 Speaker 1: I think we had plenty of options. John, Were we 579 00:31:29,080 --> 00:31:34,040 Speaker 1: simply trying to avoid an international catastrophe? Yeah, this is 580 00:31:34,160 --> 00:31:39,280 Speaker 1: just wild. I mean a weather balloon, everyone's favorite explanation 581 00:31:39,400 --> 00:31:42,680 Speaker 1: for an aerial phenomenon. Um. No, I have to say, Look, 582 00:31:42,720 --> 00:31:45,960 Speaker 1: I have deep respect for Congressman Gallagher, and he makes 583 00:31:45,960 --> 00:31:49,400 Speaker 1: some good points, but I really trust the administration on 584 00:31:49,440 --> 00:31:53,320 Speaker 1: this and and your previous guests, Craig, who I just 585 00:31:53,360 --> 00:31:56,760 Speaker 1: thought he made some incredible points about. Look, maybe we 586 00:31:56,760 --> 00:31:59,480 Speaker 1: can look backwards and we'll figure out more details in 587 00:31:59,520 --> 00:32:02,360 Speaker 1: the days ahead about how long and with what detail 588 00:32:02,400 --> 00:32:06,080 Speaker 1: the administration was tracking this. But it's now over American soil. 589 00:32:06,200 --> 00:32:09,840 Speaker 1: And if it's got a payload that weighs something approaching 590 00:32:09,880 --> 00:32:13,200 Speaker 1: three school buses, I'm sorry. But if i'm the president 591 00:32:13,600 --> 00:32:17,240 Speaker 1: and his team and he's got some good advisers giving 592 00:32:17,320 --> 00:32:20,760 Speaker 1: him this input here about the cost benefit analysis, I 593 00:32:20,800 --> 00:32:23,800 Speaker 1: don't think we want something that weighs three school busses 594 00:32:23,800 --> 00:32:27,160 Speaker 1: to be landing on an American community. So and and 595 00:32:27,280 --> 00:32:30,120 Speaker 1: I like this idea that Craig floated, that there may 596 00:32:30,160 --> 00:32:33,160 Speaker 1: be some value here to try to recover some part 597 00:32:33,160 --> 00:32:36,000 Speaker 1: of this payload. At the end of the day, Congressman 598 00:32:36,040 --> 00:32:39,160 Speaker 1: Gallagher is part of the Select Committee that demonstrates one 599 00:32:39,320 --> 00:32:42,200 Speaker 1: thing as it relates to Congress, which is that standing 600 00:32:42,280 --> 00:32:46,240 Speaker 1: up to China and their aggression and their belligerents is 601 00:32:46,280 --> 00:32:50,600 Speaker 1: a bipartisan value. Um. And I think this ultimately will 602 00:32:50,680 --> 00:32:55,040 Speaker 1: probably give the administration an upper hand in these negotiations. Well, okay, 603 00:32:55,200 --> 00:32:58,280 Speaker 1: that's a that's nice to hear, because Rick, the more 604 00:32:58,320 --> 00:33:01,600 Speaker 1: time that goes by, the more ridiculou this the administration 605 00:33:01,640 --> 00:33:03,280 Speaker 1: could look to a lot of people. In fact, we're 606 00:33:03,360 --> 00:33:04,840 Speaker 1: I mean, you could just go on Twitter and read 607 00:33:04,840 --> 00:33:08,120 Speaker 1: about this. Just shoot the damn thing down. They say, yeah, 608 00:33:08,280 --> 00:33:11,640 Speaker 1: pop it. I mean it's a balloon. Uh. You know, look, 609 00:33:11,680 --> 00:33:14,720 Speaker 1: I mean all these are you know, very cautious, you know, 610 00:33:14,800 --> 00:33:18,760 Speaker 1: diplomatically generated. Um. You know, but when you really think 611 00:33:18,800 --> 00:33:21,240 Speaker 1: about it, I mean, they're violating our airspace, they are 612 00:33:21,320 --> 00:33:27,000 Speaker 1: invading our country intelligence gathering devices, and there's absolutely no 613 00:33:27,040 --> 00:33:29,720 Speaker 1: reason that that should be allowed to freely fly over 614 00:33:29,960 --> 00:33:35,560 Speaker 1: the continental United States. Well okay, um, that said, Rick, 615 00:33:35,680 --> 00:33:38,160 Speaker 1: you don't want to hurt anybody. And maybe there is 616 00:33:38,160 --> 00:33:40,800 Speaker 1: a plan if General Milly briefed the President on this 617 00:33:41,360 --> 00:33:43,640 Speaker 1: and said, look, let's get this over the ocean or something, 618 00:33:43,680 --> 00:33:46,960 Speaker 1: we want to capture it and actually retain this hardware 619 00:33:46,960 --> 00:33:48,840 Speaker 1: to see what what in the world they were floating 620 00:33:48,880 --> 00:33:51,560 Speaker 1: over the country. They they'll end up looking pretty smart, 621 00:33:51,560 --> 00:33:53,560 Speaker 1: won't they. Well, I mean, you've got just as good 622 00:33:53,560 --> 00:33:56,040 Speaker 1: a chance of capturing it, you know, over the over 623 00:33:56,120 --> 00:33:57,600 Speaker 1: the land and you do to see you know, you 624 00:33:58,560 --> 00:34:01,400 Speaker 1: let's something free fall from sixty thousand feet and it's 625 00:34:01,400 --> 00:34:04,240 Speaker 1: not just gonna plunge into the ocean unharmed. I mean, 626 00:34:04,240 --> 00:34:06,440 Speaker 1: it's gonna be obliverraated just the same way as if 627 00:34:06,440 --> 00:34:08,960 Speaker 1: it hit a mountain. So, Um, with all due respect, 628 00:34:09,000 --> 00:34:11,000 Speaker 1: we probably know everything there is to know about what's 629 00:34:11,040 --> 00:34:13,080 Speaker 1: on that balloon right now, which is why it hasn't 630 00:34:13,120 --> 00:34:15,840 Speaker 1: been shot down, because if it had been anything, you know, 631 00:34:15,880 --> 00:34:18,279 Speaker 1: of real value to us, Um, we wouldn't have let 632 00:34:18,320 --> 00:34:21,040 Speaker 1: it just scan the horizon and go look over our 633 00:34:21,120 --> 00:34:24,440 Speaker 1: nuclear sights and report back to Beijing what they're seeing. 634 00:34:25,000 --> 00:34:27,280 Speaker 1: I would also say, the other thing that is notable 635 00:34:27,320 --> 00:34:29,120 Speaker 1: about this, there's been a lot of studies around this, 636 00:34:29,239 --> 00:34:31,800 Speaker 1: and and the Fence Department has a lot of history 637 00:34:31,840 --> 00:34:35,040 Speaker 1: around the concerns of having these kinds of balloons carrying 638 00:34:35,600 --> 00:34:38,880 Speaker 1: you know, weapons of mass destruction, nuclear weapons over Uh, 639 00:34:39,200 --> 00:34:42,360 Speaker 1: the United States and exploding and causing massive e m 640 00:34:42,440 --> 00:34:45,680 Speaker 1: P impact when, in other words, one balloon at that 641 00:34:45,760 --> 00:34:48,839 Speaker 1: level two miles up, five miles up could actually knock 642 00:34:48,840 --> 00:34:50,799 Speaker 1: out most of the grid in the United States. So 643 00:34:50,840 --> 00:34:53,200 Speaker 1: why do we want them to be able to experiment 644 00:34:53,239 --> 00:34:56,520 Speaker 1: around with the collection of data over our country as 645 00:34:56,560 --> 00:34:58,480 Speaker 1: to how that kind of thing would work. So I'm 646 00:34:58,480 --> 00:35:00,600 Speaker 1: not being an alarmist. These are parts that have been 647 00:35:00,600 --> 00:35:02,840 Speaker 1: written year in and year out in the Defense Department. 648 00:35:02,920 --> 00:35:05,360 Speaker 1: It is a concern by war planners that this is 649 00:35:05,400 --> 00:35:08,080 Speaker 1: a kind of tactic that the Chinese would use in 650 00:35:08,200 --> 00:35:10,600 Speaker 1: order to turn out the lights in the United States. 651 00:35:11,040 --> 00:35:13,480 Speaker 1: And and I just think we should have zero tolerance 652 00:35:13,520 --> 00:35:15,600 Speaker 1: for this. And I would have actually had Lincoln go 653 00:35:15,640 --> 00:35:18,359 Speaker 1: to China. It's just the other China, Taiwan. I mean, 654 00:35:18,800 --> 00:35:20,959 Speaker 1: why not just head to Beijing and take a right turn, 655 00:35:21,440 --> 00:35:23,399 Speaker 1: you know, show up in Taiwan and say, you know what, 656 00:35:23,480 --> 00:35:25,239 Speaker 1: this is what you get when you mess with us 657 00:35:25,280 --> 00:35:29,799 Speaker 1: in our own borders. Uh. And I just why not? 658 00:35:30,160 --> 00:35:33,120 Speaker 1: I mean, you're obviously not being honest with us. Let's 659 00:35:33,239 --> 00:35:35,359 Speaker 1: let's call their cards. Well, So what do you think, John, 660 00:35:35,480 --> 00:35:37,879 Speaker 1: in terms of the example that's being set here. I mean, 661 00:35:37,920 --> 00:35:42,319 Speaker 1: does this invite other other potentially bad actors to be 662 00:35:42,400 --> 00:35:44,600 Speaker 1: floating stuff over the country here because they know we're 663 00:35:44,640 --> 00:35:46,520 Speaker 1: not going to do anything. You don't want to hurt 664 00:35:46,560 --> 00:35:49,719 Speaker 1: anyone on the ground. Sure, And I mean I mean 665 00:35:49,840 --> 00:35:53,400 Speaker 1: Rick raises some real valid concerns there. I think about 666 00:35:53,400 --> 00:35:57,160 Speaker 1: the statement that was released today from mild Boss and 667 00:35:57,200 --> 00:35:59,360 Speaker 1: the Home State senator from where this thing was floating 668 00:35:59,360 --> 00:36:02,120 Speaker 1: for a while, so Itor John Tester, and I think 669 00:36:02,120 --> 00:36:04,120 Speaker 1: he made a great point. He said, look, at the 670 00:36:04,160 --> 00:36:07,200 Speaker 1: end of the day, I want answers about all of us. 671 00:36:07,440 --> 00:36:09,719 Speaker 1: I want to know when this came in, when we 672 00:36:09,840 --> 00:36:12,600 Speaker 1: knew why it was allowed to enter our airspace, if 673 00:36:12,640 --> 00:36:16,040 Speaker 1: it was. I am confident that those are questions that 674 00:36:16,120 --> 00:36:18,960 Speaker 1: members of Congress and both parties, including the Select Committee, 675 00:36:18,960 --> 00:36:22,160 Speaker 1: are going to be asking um at the end of 676 00:36:22,200 --> 00:36:24,720 Speaker 1: the day. I just have to believe that the President 677 00:36:24,800 --> 00:36:27,440 Speaker 1: is using the best cost benefit analysis that his advisors 678 00:36:27,440 --> 00:36:30,520 Speaker 1: are giving him. But I will say I'm in complete 679 00:36:30,520 --> 00:36:32,680 Speaker 1: agreement with Rick, and I think actually the last time 680 00:36:32,719 --> 00:36:35,279 Speaker 1: we were on this program, we were talking about this 681 00:36:35,360 --> 00:36:38,240 Speaker 1: idea of the former Speaker of the House perhaps visiting 682 00:36:38,600 --> 00:36:41,880 Speaker 1: Um Taiwan. And I think I mean that would have 683 00:36:41,920 --> 00:36:45,319 Speaker 1: been quite a showcase of American strength and commitment that 684 00:36:45,400 --> 00:36:48,000 Speaker 1: I too would be fully behind. But at the end 685 00:36:48,040 --> 00:36:49,440 Speaker 1: of the day, I think this is going to be 686 00:36:49,480 --> 00:36:51,400 Speaker 1: something that we figure out the answers to, and the 687 00:36:51,480 --> 00:36:54,600 Speaker 1: more interesting piece of it is going to be why 688 00:36:54,920 --> 00:36:57,799 Speaker 1: the timing of this? Again, as Craig Singleton mentioned, being 689 00:36:57,920 --> 00:37:01,560 Speaker 1: so close to the Secretary's play and visit, there's something 690 00:37:01,600 --> 00:37:03,840 Speaker 1: really interesting about the timing here that has my like 691 00:37:03,920 --> 00:37:07,000 Speaker 1: Tom Clancy alarm bells going off. So I'll be really 692 00:37:07,080 --> 00:37:11,360 Speaker 1: interested to see that. Did they want to force Anthony B. 693 00:37:11,360 --> 00:37:14,120 Speaker 1: Lincoln to make a tough call here? Rick, to your point, 694 00:37:14,120 --> 00:37:16,200 Speaker 1: he could still have gone to Beijing and wagged his 695 00:37:16,280 --> 00:37:19,320 Speaker 1: finger at President She. Oh, let me tell you, I 696 00:37:19,600 --> 00:37:22,680 Speaker 1: have no doubt that she and his advisors are hanging around, 697 00:37:23,200 --> 00:37:26,759 Speaker 1: you know, the palace in Beijing saying, you know, hey, 698 00:37:27,200 --> 00:37:29,120 Speaker 1: we got this plan to run this balloon all the 699 00:37:29,120 --> 00:37:31,840 Speaker 1: way across the United States about the same time Blincoln's 700 00:37:31,880 --> 00:37:34,200 Speaker 1: come over here. Yeah, let's make it happen so that 701 00:37:34,239 --> 00:37:36,600 Speaker 1: we can embarrass him while he's here, you know, and 702 00:37:36,640 --> 00:37:38,920 Speaker 1: he'll turn red face and yell at us ha ha ha. 703 00:37:39,080 --> 00:37:41,800 Speaker 1: I mean, like, do we really do we really believe 704 00:37:41,920 --> 00:37:45,360 Speaker 1: that this wasn't calculated. That they sit there and think about, 705 00:37:45,440 --> 00:37:47,560 Speaker 1: you know, the fact that they're going to penetrate the 706 00:37:47,680 --> 00:37:51,879 Speaker 1: United States security. Um. Uh, you know, we have this 707 00:37:51,920 --> 00:37:55,360 Speaker 1: thing called strat Com that's supposed to protect our borders 708 00:37:55,719 --> 00:37:57,440 Speaker 1: and not allow these kinds of things that come on. 709 00:37:57,640 --> 00:38:00,040 Speaker 1: I mean, they're violating that. This is so how and 710 00:38:00,160 --> 00:38:01,600 Speaker 1: we let it in to begin with? I mean we're 711 00:38:01,600 --> 00:38:04,880 Speaker 1: talking about shooting this down over Montana or Florida, Like, 712 00:38:05,080 --> 00:38:07,800 Speaker 1: how come we didn't get it before it violated our airspace? 713 00:38:07,840 --> 00:38:12,440 Speaker 1: That would be protocol, wouldn't it. Look I cannot believe 714 00:38:12,480 --> 00:38:16,440 Speaker 1: that this thing entered the United States airspace. Uh, you know, 715 00:38:16,520 --> 00:38:19,560 Speaker 1: if it was over the illusions, I mean, there's nothing 716 00:38:19,600 --> 00:38:22,200 Speaker 1: out there. I mean, you know, I used to live 717 00:38:22,200 --> 00:38:23,960 Speaker 1: in the Puget Sound. You can knock it over and 718 00:38:24,040 --> 00:38:26,799 Speaker 1: most of the stata of Washington and nobody would even 719 00:38:26,800 --> 00:38:29,319 Speaker 1: know it happened. I mean, you know, the reality is 720 00:38:29,640 --> 00:38:31,799 Speaker 1: there are a lot of questions I think about what 721 00:38:31,840 --> 00:38:34,040 Speaker 1: the China motivations were and what they're really trying to 722 00:38:34,080 --> 00:38:36,319 Speaker 1: gather and this is not an accident, and why did 723 00:38:36,320 --> 00:38:38,319 Speaker 1: they do it at the same time Blincoln was coming over. 724 00:38:38,680 --> 00:38:40,200 Speaker 1: But I think we got a lot of questions too 725 00:38:40,239 --> 00:38:42,319 Speaker 1: about like, why in the world was this allowed to 726 00:38:42,320 --> 00:38:45,160 Speaker 1: happen to begin with, and did we really conduct the 727 00:38:45,280 --> 00:38:48,680 Speaker 1: kind of surveillance on the surveillance balloon that that needed 728 00:38:48,680 --> 00:38:51,440 Speaker 1: to have happened, and uh, and with all the technology 729 00:38:51,440 --> 00:38:54,320 Speaker 1: and knowledge we have, Uh, are we really showing a 730 00:38:54,400 --> 00:38:56,960 Speaker 1: vulnerability here by the fact that we're just, you know, 731 00:38:57,040 --> 00:38:59,600 Speaker 1: letting this thing enter the United States airspace and float 732 00:38:59,640 --> 00:39:02,360 Speaker 1: around for a week. I am awfully struck, Like I 733 00:39:02,440 --> 00:39:04,759 Speaker 1: keep saying that we're watching this in real time because 734 00:39:04,840 --> 00:39:06,799 Speaker 1: cameras are trained on this. You know, you walk by 735 00:39:06,840 --> 00:39:10,040 Speaker 1: a wall of TVs and you just see this white 736 00:39:10,120 --> 00:39:13,160 Speaker 1: moon looking thing as if we're in a sci fi 737 00:39:13,200 --> 00:39:16,799 Speaker 1: movie or something. And and Tony asked about this when 738 00:39:16,800 --> 00:39:20,080 Speaker 1: he was in the Pentagon briefing with with the General 739 00:39:20,120 --> 00:39:23,279 Speaker 1: pat Ryder, And you know, Tony's he's like, he's he's 740 00:39:23,280 --> 00:39:25,080 Speaker 1: a funny guy, has got a sense of humor. But 741 00:39:25,120 --> 00:39:27,319 Speaker 1: it's kind of what we were all asking. Listen, can 742 00:39:27,360 --> 00:39:30,080 Speaker 1: you confirm the photos that are out there that this 743 00:39:30,120 --> 00:39:31,520 Speaker 1: is not the man in the moon and that is 744 00:39:31,560 --> 00:39:36,919 Speaker 1: the actual Thanks Tony, so certainly aware of photos being 745 00:39:36,960 --> 00:39:40,200 Speaker 1: posted online I'm not going to get into the business 746 00:39:40,239 --> 00:39:43,439 Speaker 1: of confirming whether or not those are you know where 747 00:39:43,440 --> 00:39:45,680 Speaker 1: those photos come from. Again, I can tell you that 748 00:39:45,719 --> 00:39:49,560 Speaker 1: the US government nor AD is monitoring this closely, so 749 00:39:49,680 --> 00:39:52,200 Speaker 1: technically it could be the man on the moon, I guess, John, 750 00:39:53,040 --> 00:39:56,200 Speaker 1: But that does kind of it makes it difficult for 751 00:39:56,239 --> 00:39:58,239 Speaker 1: the Pentagon to control the narrative. They don't want to 752 00:39:58,239 --> 00:40:01,040 Speaker 1: be giving, as he said, our to our updates on this. 753 00:40:01,400 --> 00:40:05,920 Speaker 1: But we're watching this with our own commercial cameras and 754 00:40:05,960 --> 00:40:08,319 Speaker 1: it's going to be on TV until this thing is over. 755 00:40:09,200 --> 00:40:13,919 Speaker 1: That brings political risk, doesn't it. It's totally surreal. Yeah, 756 00:40:13,960 --> 00:40:16,120 Speaker 1: And it's one of these moments where you can feel 757 00:40:16,640 --> 00:40:19,360 Speaker 1: I can feel the visceral discomfort on the part of 758 00:40:19,360 --> 00:40:24,080 Speaker 1: administration spokespeople who you know don't pay any attention to 759 00:40:24,120 --> 00:40:27,840 Speaker 1: what's on your television and on Twitter right now. So, um, 760 00:40:27,840 --> 00:40:30,279 Speaker 1: it's a tough position there. And and again, you know, 761 00:40:30,440 --> 00:40:34,759 Speaker 1: Rick raises a very valid point, which is we need 762 00:40:34,800 --> 00:40:38,920 Speaker 1: answers about why and whether this was actually permitted to 763 00:40:39,080 --> 00:40:42,799 Speaker 1: enter US airspace. It does frankly showcase some kind of 764 00:40:42,880 --> 00:40:46,880 Speaker 1: vulnerability until we know otherwise. So these are questions of 765 00:40:46,880 --> 00:40:50,080 Speaker 1: the administration has to answer. But now, of course, because 766 00:40:50,120 --> 00:40:52,040 Speaker 1: we're in the situation where I'm where this is above 767 00:40:52,200 --> 00:40:55,680 Speaker 1: us soil for the moment, our spokespeople, I think are 768 00:40:55,760 --> 00:40:58,120 Speaker 1: kind of handcuffed, um, and we're probably not going to 769 00:40:58,200 --> 00:41:01,719 Speaker 1: get these answers right away. It's probably gonna take not 770 00:41:01,800 --> 00:41:03,960 Speaker 1: a matter of days, but weeks or months before we 771 00:41:04,000 --> 00:41:08,520 Speaker 1: know exactly what happened. And more broadly speaking, look, of course, 772 00:41:08,640 --> 00:41:10,440 Speaker 1: this is an issue the president is going to have 773 00:41:10,560 --> 00:41:14,360 Speaker 1: to address, even if everything winds up being told in 774 00:41:14,400 --> 00:41:16,399 Speaker 1: a way that it makes more sense than it does 775 00:41:16,440 --> 00:41:20,040 Speaker 1: to us. Now, there's never an issue as important to 776 00:41:20,080 --> 00:41:23,160 Speaker 1: the job of the president and frankly to American voters 777 00:41:23,200 --> 00:41:26,680 Speaker 1: heading into a presidential election, then the safety and security 778 00:41:26,719 --> 00:41:29,080 Speaker 1: of our country and of our community. So so that's 779 00:41:29,080 --> 00:41:31,280 Speaker 1: a question that's going to have to certainly be answered. 780 00:41:31,800 --> 00:41:35,080 Speaker 1: So so that brings the hearings um one way or 781 00:41:35,120 --> 00:41:37,920 Speaker 1: the other here, Rick, are they going to be investigating 782 00:41:37,920 --> 00:41:41,319 Speaker 1: why the Biden administration reacted a certain way or why 783 00:41:41,440 --> 00:41:43,919 Speaker 1: China sent this over here? You know, I would say 784 00:41:43,960 --> 00:41:47,640 Speaker 1: China is doing a great job of unifying Congress against themselves. 785 00:41:47,719 --> 00:41:51,040 Speaker 1: I mean, if there was not another opportunity to create 786 00:41:51,080 --> 00:41:55,399 Speaker 1: a bipartisan coalition uh TO uh TO TO to get 787 00:41:55,440 --> 00:41:57,920 Speaker 1: together in Congress. This is this is just a great 788 00:41:57,960 --> 00:42:02,680 Speaker 1: example of China unifying the United States around a common goal, 789 00:42:02,800 --> 00:42:05,560 Speaker 1: a common enemy, and they're making themselves that we're not 790 00:42:05,640 --> 00:42:08,799 Speaker 1: doing anything to cause these things to happen. And so 791 00:42:09,719 --> 00:42:12,319 Speaker 1: I think this is actually gonna be a unifying uh 792 00:42:12,719 --> 00:42:16,239 Speaker 1: you know, action in Congress, and it's gonna take that 793 00:42:16,280 --> 00:42:18,799 Speaker 1: Gallagher Committee and just put it on steroids. I mean, 794 00:42:18,840 --> 00:42:20,960 Speaker 1: these guys are gonna be watched by everybody in the 795 00:42:21,000 --> 00:42:23,680 Speaker 1: country now, and I think they're gonna agree more than 796 00:42:23,719 --> 00:42:27,000 Speaker 1: they disagree. But look, I mean, you know, we we 797 00:42:27,000 --> 00:42:28,919 Speaker 1: we definitely are gonna want to know why and how 798 00:42:28,960 --> 00:42:31,920 Speaker 1: this happened. Look, this is the new intelligence, right It's 799 00:42:31,960 --> 00:42:35,400 Speaker 1: all open sources. People with cameras over the world. We 800 00:42:35,480 --> 00:42:37,640 Speaker 1: know more about what's going on in Ukraine right now 801 00:42:37,680 --> 00:42:40,680 Speaker 1: because of just open source. And this is a classic example. 802 00:42:40,960 --> 00:42:43,800 Speaker 1: I think it's kind of the galvanizing O J moment 803 00:42:43,840 --> 00:42:46,800 Speaker 1: of the twenties first century. I mean, everybody watched o 804 00:42:46,960 --> 00:42:49,360 Speaker 1: J and that white Bronco driving around. You know what, 805 00:42:49,560 --> 00:42:51,640 Speaker 1: are the police gonna get him? And now it's a 806 00:42:52,520 --> 00:42:56,080 Speaker 1: Chinese weather balloon, right, it's so great as only Rick 807 00:42:56,160 --> 00:43:00,440 Speaker 1: Davis could put it. Uh, John, Boy, I don't know 808 00:43:00,640 --> 00:43:04,560 Speaker 1: what's going to come about over the course of this weekend, 809 00:43:05,360 --> 00:43:08,080 Speaker 1: but when you think about oversight here, I don't know, 810 00:43:08,360 --> 00:43:11,000 Speaker 1: it is going to make just a new level of 811 00:43:11,080 --> 00:43:14,920 Speaker 1: drama on that committee. For sure. Is Kevin McCarthy planning 812 00:43:15,280 --> 00:43:19,600 Speaker 1: the code Dell to Taiwan right now? Oh? I I 813 00:43:19,680 --> 00:43:23,120 Speaker 1: guarantee somebody in his organization is talking about it. And 814 00:43:23,360 --> 00:43:26,160 Speaker 1: you know, look, maybe not an O J moment, but 815 00:43:26,239 --> 00:43:28,719 Speaker 1: this is one of the more memorable things that has 816 00:43:28,760 --> 00:43:32,759 Speaker 1: happened as we enter this new election season. I think 817 00:43:32,840 --> 00:43:35,279 Speaker 1: Ricks exactly right. I think the oversight piece of this 818 00:43:35,400 --> 00:43:38,319 Speaker 1: and the solidarity and unity between the parties is going 819 00:43:38,360 --> 00:43:41,759 Speaker 1: to be evident. There's a dynamic here where you know, 820 00:43:41,840 --> 00:43:43,920 Speaker 1: I come from the world of the Senate as well, 821 00:43:44,000 --> 00:43:48,680 Speaker 1: and all of our Democrats who are up for reelection 822 00:43:48,719 --> 00:43:52,360 Speaker 1: in the Senate, almost without exception, are folks who have 823 00:43:52,560 --> 00:43:55,799 Speaker 1: been just as hawkish in terms of standing up to 824 00:43:55,920 --> 00:43:59,279 Speaker 1: Chinese respect. That to stop anytime soon, John and Rick 825 00:43:59,320 --> 00:44:04,840 Speaker 1: with finals this is Bloomberg. You're listening to Bloomberg. You 826 00:44:05,000 --> 00:44:10,959 Speaker 1: sound on with Joe Matthew on Bloomberg Radio Bloomberg sound 827 00:44:10,960 --> 00:44:13,200 Speaker 1: On is brought to you by Innovation Refunds. It's your 828 00:44:13,239 --> 00:44:16,160 Speaker 1: daily reminder from Innovation Refunds. See if your business is 829 00:44:16,200 --> 00:44:20,239 Speaker 1: eligible for employee retention credit assistance. With the team at 830 00:44:20,280 --> 00:44:23,680 Speaker 1: Innovation Refunds, they helped make the process easier, make it 831 00:44:23,760 --> 00:44:26,000 Speaker 1: less stressful, so you can focus on your business. Learn 832 00:44:26,040 --> 00:44:30,680 Speaker 1: more at get refunds dot com. So the Big State 833 00:44:30,680 --> 00:44:33,920 Speaker 1: of the Union, the super Bowl of politics next Tuesday night, 834 00:44:34,760 --> 00:44:36,920 Speaker 1: and we've talked a little bit. We're gonna be talking 835 00:44:36,960 --> 00:44:38,920 Speaker 1: about it as well on Monday and Tuesday leading up 836 00:44:38,920 --> 00:44:42,080 Speaker 1: to the speech in our special coverage. But we have 837 00:44:42,160 --> 00:44:46,640 Speaker 1: to focus on the Republican response. This is a huge deal, 838 00:44:46,840 --> 00:44:52,040 Speaker 1: of course for Sarah Huckabee Sanders, the daughter of Mike Huckabee. 839 00:44:52,280 --> 00:44:55,560 Speaker 1: She's now got her dad's old job as the governor 840 00:44:55,600 --> 00:44:59,360 Speaker 1: of Arkansas, right, and many will remember her as the 841 00:44:59,400 --> 00:45:02,640 Speaker 1: Press secret terry at the White House in the Trump administration. Here, 842 00:45:02,680 --> 00:45:05,239 Speaker 1: this will bring you back. The President talks about the fete. 843 00:45:06,160 --> 00:45:08,440 Speaker 1: Is he just venting at this point or is he 844 00:45:08,560 --> 00:45:11,400 Speaker 1: genuinely worried that if there is a rate hype tomorrow 845 00:45:11,719 --> 00:45:15,200 Speaker 1: that the economy will slow down. The President is stating 846 00:45:15,320 --> 00:45:19,440 Speaker 1: his opinion, which he is perfectly within his right to 847 00:45:19,560 --> 00:45:21,720 Speaker 1: do so. I think that is one of the reasons 848 00:45:21,719 --> 00:45:23,680 Speaker 1: people like him is because he does that, and he 849 00:45:23,719 --> 00:45:28,200 Speaker 1: does it regularly. That will be the response to Joe 850 00:45:28,200 --> 00:45:31,960 Speaker 1: Biden on Tuesday Night. The arguably the most high profile 851 00:45:32,040 --> 00:45:36,919 Speaker 1: opportunity of her career. Here, she's going mainstream and it's 852 00:45:36,920 --> 00:45:39,839 Speaker 1: a job that is of course fraught with risk, as 853 00:45:39,880 --> 00:45:46,120 Speaker 1: many have learned from Marco Rubio to Joe Kennedy. As 854 00:45:46,160 --> 00:45:49,720 Speaker 1: we seek some thoughts from the panel here, Rick Davis 855 00:45:49,760 --> 00:45:52,560 Speaker 1: and John la Bombard with us on sound on what 856 00:45:52,600 --> 00:45:54,520 Speaker 1: do you think of the choice? Rick? First of all, 857 00:45:54,600 --> 00:45:56,560 Speaker 1: you could have gone anywhere in the country on this one. 858 00:45:56,600 --> 00:45:59,560 Speaker 1: Is it a good choice? Yeah? I think picking a 859 00:46:00,200 --> 00:46:04,120 Speaker 1: a woman governor was a good choice. And within the 860 00:46:04,200 --> 00:46:08,120 Speaker 1: group that are represented by uh women in the gop 861 00:46:08,600 --> 00:46:12,080 Speaker 1: um Uh, Sarah Huckaby Sanders is sort of a commert right. 862 00:46:12,160 --> 00:46:16,800 Speaker 1: She's just gotten really elected, big name, big family presence, 863 00:46:17,440 --> 00:46:21,000 Speaker 1: important state for presidential cycle. So yeah, I mean it 864 00:46:21,040 --> 00:46:25,479 Speaker 1: makes sense. Uh obviously articulate. She made a living uh 865 00:46:25,520 --> 00:46:29,080 Speaker 1: speaking Uh, So I think there'd be an expectation that 866 00:46:29,160 --> 00:46:31,400 Speaker 1: she'd give a good speech. I'd have to give a 867 00:46:31,440 --> 00:46:35,120 Speaker 1: shout out to to another really interesting idea to do 868 00:46:35,160 --> 00:46:38,960 Speaker 1: a Hispanic response in Spanish, UH and UH. One of 869 00:46:39,000 --> 00:46:43,080 Speaker 1: my Arizona favorite UH. Congressman Juan Siskimonis has been picked 870 00:46:43,080 --> 00:46:46,360 Speaker 1: to do that. And he's a freshman, newly into Congress, 871 00:46:46,760 --> 00:46:48,400 Speaker 1: and I think it's smart on the part of the 872 00:46:48,400 --> 00:46:52,640 Speaker 1: GOP to offer up a Spanish alternative while they're out 873 00:46:52,640 --> 00:46:55,720 Speaker 1: there trying to recruit Hispanic votes. John Sarah Huggaby Sanders 874 00:46:55,760 --> 00:46:58,399 Speaker 1: will likely forever be associated with Donald Trump. She spent 875 00:46:58,440 --> 00:47:00,960 Speaker 1: two years defending him at the podium and had a 876 00:47:01,080 --> 00:47:05,719 Speaker 1: very difficult relationship with the press at the time. Interesting 877 00:47:05,880 --> 00:47:08,080 Speaker 1: that the party chose to go in that direction. They 878 00:47:08,120 --> 00:47:11,080 Speaker 1: could have chosen a woman who was not so closely 879 00:47:11,120 --> 00:47:15,200 Speaker 1: associated with the Trump brand. Sure, but you know, I 880 00:47:15,200 --> 00:47:17,640 Speaker 1: I smart think look, I look at this from the 881 00:47:17,719 --> 00:47:21,560 Speaker 1: outside looking in, and um, obviously I'm probably not going 882 00:47:21,600 --> 00:47:24,400 Speaker 1: to agree with everything that the governor says and her responses. 883 00:47:24,440 --> 00:47:28,200 Speaker 1: Democrat myself, but this is someone who there's there can't 884 00:47:28,200 --> 00:47:31,479 Speaker 1: be anything more anxiety producing than facing down the White 885 00:47:31,480 --> 00:47:36,160 Speaker 1: House press score, especially during Donald Trump's presidency. So she 886 00:47:36,320 --> 00:47:39,600 Speaker 1: has tried and contested in a way of talking publicly. 887 00:47:40,040 --> 00:47:43,040 Speaker 1: I think she cuts a good profile, and I frankly think, 888 00:47:43,320 --> 00:47:46,520 Speaker 1: you know, she is somebody who was somehow successful in 889 00:47:46,600 --> 00:47:49,880 Speaker 1: threading that needle of working for the Trump administration, but 890 00:47:50,080 --> 00:47:53,960 Speaker 1: not necessarily leaving with a kind of baggage that some 891 00:47:54,040 --> 00:47:57,280 Speaker 1: of his other enablers did. I think it's a probably 892 00:47:57,280 --> 00:47:58,880 Speaker 1: a good choice, even if I want to agree with 893 00:47:58,880 --> 00:48:01,760 Speaker 1: everything she says, and I will once again associate myself 894 00:48:01,800 --> 00:48:07,080 Speaker 1: completely with Rick's additional point. You know, Latino voters are 895 00:48:07,120 --> 00:48:09,200 Speaker 1: a bigger battleground than a lot of people in my 896 00:48:09,360 --> 00:48:11,800 Speaker 1: party assume they are, so I think that was a 897 00:48:11,840 --> 00:48:13,799 Speaker 1: smart choice on the part of the GOP as well. 898 00:48:13,840 --> 00:48:16,319 Speaker 1: But I also tend to think that President Biden has 899 00:48:16,360 --> 00:48:18,160 Speaker 1: a lot to tout in this speech, so I'm really 900 00:48:18,160 --> 00:48:20,640 Speaker 1: looking forward to it. There you have it. Two thumbs up, 901 00:48:20,640 --> 00:48:23,239 Speaker 1: How about it, Rick Davis, John La Bumbar, thank you both. 902 00:48:23,239 --> 00:48:27,719 Speaker 1: Two thumbs up. For Sarah Huckabee Sanders. You'll hear her response, 903 00:48:29,200 --> 00:48:32,160 Speaker 1: of course, as part of our special coverage on Tuesday night. 904 00:48:33,400 --> 00:48:38,319 Speaker 1: The speech, the standing ovations, the response, will have it all. 905 00:48:38,400 --> 00:48:40,480 Speaker 1: David Weston's coming down to d C. I'll be up 906 00:48:40,520 --> 00:48:43,719 Speaker 1: on Capitol Hill. Rick will be here Jeanie Schanzano as well, 907 00:48:43,719 --> 00:48:45,960 Speaker 1: and I hope you'll join us as we float our 908 00:48:46,000 --> 00:48:48,640 Speaker 1: way into the weekend and the fastest alcrin politics. This 909 00:48:49,280 --> 00:48:49,920 Speaker 1: is Bloomberg