WEBVTT -  Stuart Stevens & John Cassidy

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<v Speaker 1>Hi, I'm Molli John Fast and this is Fast Politics,

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<v Speaker 1>where we discussed the top political headlines with some of

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<v Speaker 1>today's best minds. And Russia has offered political asylum to

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<v Speaker 1>Elon Musk Perfect gotta love it. We have such a

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<v Speaker 1>great show for you today. The Lincoln Project's own Stuart

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<v Speaker 1>Stevens stops by to talk about the Elon and Trump

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<v Speaker 1>breakup and the case for nationalizing SpaceX and Starlink. Then

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<v Speaker 1>we'll talk to the New Yorkers John Cassidy about his

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<v Speaker 1>book Capitalism and Its Critics, a history from the Industrial

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<v Speaker 1>Revolution to AI.

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<v Speaker 2>But first the news, Mally, I'm going to let you

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<v Speaker 2>and Stewart do the discussion of the girls who are

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<v Speaker 2>fighting between Elon and the Trump and all that surrounds it,

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<v Speaker 2>because we have other fish to fry that got buried

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<v Speaker 2>in the news this week. This one is particularly horrifying.

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<v Speaker 2>You and I were both wretching as we read this

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<v Speaker 2>before this question swirl over who's running the CDC? Not

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<v Speaker 2>a headline you want to read?

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<v Speaker 1>This is not good? Okay. First of all, one of

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<v Speaker 1>the things that's happened in this administration which we should

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<v Speaker 1>all be thinking about, worrying about, and talking about is

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<v Speaker 1>that the Trump administration has given up on running the

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<v Speaker 1>federal government the way it's supposed to be run. And

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<v Speaker 1>the problem is they're disrupting things that we actually need,

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<v Speaker 1>like the CDC. Putting RFK Junior in charge of this

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<v Speaker 1>CDC is basically just giving it up right, and that's

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<v Speaker 1>what we're seeing here. Confusion over shifting Center for Disease

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<v Speaker 1>Control and Prevention COVID nineteen recommendations are reuniting questions in

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<v Speaker 1>the public health community about who's actually running the agency

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<v Speaker 1>and the answer is no one. And that is what

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<v Speaker 1>you should be scared of. This is really scary. We're

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<v Speaker 1>six months into the Trump administration. This health agency is

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<v Speaker 1>who we need to be tracking the avian flu, to

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<v Speaker 1>be following food borne diseases, to making sure that you know,

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<v Speaker 1>studies are being followed, that drugs that our dangerous are

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<v Speaker 1>being kept off the market, that you know there's the

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<v Speaker 1>CDC is a huge organization with a really important job.

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<v Speaker 1>And what we're seeing here is that RFK Junior, who

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<v Speaker 1>said he needed to be in charge of public health, well,

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<v Speaker 1>he is falling down on the job. He faced questions

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<v Speaker 1>about the direction of the agency and is send hearing

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<v Speaker 1>last month, and he really couldn't answer them. He said

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<v Speaker 1>things like couldn't answer questions, didn't understand what was happening.

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<v Speaker 1>So here's something important from the Health and Human Services

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<v Speaker 1>spokesperson said, the chief of staff has been carrying out

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<v Speaker 1>some of the duties of the CDC director as a

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<v Speaker 1>senior official. So you see what's happening here, right, They're

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<v Speaker 1>just not doing what they're supposed to be doing, and

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<v Speaker 1>it's very inefficient and we're going to see this is

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<v Speaker 1>going to be bad. This is like what we're seeing.

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<v Speaker 1>They're going to be wholes that need to be fixed.

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<v Speaker 1>It's not good. And you know that this is it

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<v Speaker 1>relates to our next story. So I don't want to

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<v Speaker 1>get ahead of ourselves, but this is the CDC that's

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<v Speaker 1>supposed to be following the bird flu and preventing another

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<v Speaker 1>once in a lifetime pandemic from catching hold. And now

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<v Speaker 1>let us move on to the next big problem coming

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<v Speaker 1>to us.

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<v Speaker 2>Yeah, as you said, it's really similar, which is that

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<v Speaker 2>DOSEE fired too many people. They took a chainsaw that

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<v Speaker 2>was really long to this when they should have been

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<v Speaker 2>in with a scalpel. And now we're seeing absolutely horrifying

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<v Speaker 2>issues with this report from the Washington Post.

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<v Speaker 1>So Jesse put this in our schedule to talk about.

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<v Speaker 1>I read it earlier and could not believe what I

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<v Speaker 1>read me And this is a piece. This's a big

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<v Speaker 1>expose in the Washington Post. And basically what they did was,

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<v Speaker 1>at every point they sent these emails and you could see,

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<v Speaker 1>well it was happening, that this was what was going

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<v Speaker 1>to happen. But it is I don't want to say gratifying,

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<v Speaker 1>because all of this is terrible and they're going to

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<v Speaker 1>be huge consequences that none of us can quite game

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<v Speaker 1>out yet. But basically, they offered these resignations to all

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<v Speaker 1>these people, many of whom needed to actually work in

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<v Speaker 1>the federal government. And this is where it is. So

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<v Speaker 1>this piece is really you should definitely read it. It

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<v Speaker 1>explains how at every point they fired people who were necessary,

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<v Speaker 1>then they listed jobs to try to get them to

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<v Speaker 1>come back. A lot of people didn't want to come

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<v Speaker 1>back because now they worry that the federal government is

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<v Speaker 1>not a reasonable place to work anymore.

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<v Speaker 2>Do you mean that essay for the hiring we talked

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<v Speaker 2>about in the last episode. It makes people not want

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<v Speaker 2>to work in an environment like that. I can't imagine

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<v Speaker 2>why they wouldn't want to work with people who did

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<v Speaker 2>a loyalty essay for Trump.

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<v Speaker 1>And it's also I would say, it's like the top

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<v Speaker 1>line is Elon is done with the federal government, but

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<v Speaker 1>the federal government has been just traumatized and injured by Elon.

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<v Speaker 1>And there are so many different parts of the government.

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<v Speaker 1>I mean, so, we just did a story about there's

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<v Speaker 1>no one running the CDC right the Center for Disease Control,

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<v Speaker 1>an extremely important part of the federal government that keeps

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<v Speaker 1>us healthy and safe. Now in this story, there's reporting

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<v Speaker 1>that all these other parts of the State Department, and

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<v Speaker 1>then they tried to rehire the people in the State

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<v Speaker 1>Department and they don't want to come back, and that's

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<v Speaker 1>security overseas. And then you have Trump doing these bands

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<v Speaker 1>from different countries, and you don't have the State Department

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<v Speaker 1>following up on what's happening in those other countries because

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<v Speaker 1>of these bands, and that's going to be really important.

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<v Speaker 1>And then you have in this article it talks about

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<v Speaker 1>how you have people that were fired from all different

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<v Speaker 1>sections like the Department of Agriculture, the Department of Housing

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<v Speaker 1>in Urban Development, the FDA. These are things food and

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<v Speaker 1>drug administration is housing in urban development, that's like housing,

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<v Speaker 1>that's different cities. And then agriculture that's our food safety.

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<v Speaker 1>So there are so many different parts of the federal

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<v Speaker 1>government that have been devastated by the richest man in

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<v Speaker 1>the world who thought it would be cool to pretend

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<v Speaker 1>to work government.

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<v Speaker 2>Yeah, nice cosplaying there, Speaking of people whose job qualifications

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<v Speaker 2>seem like cosplay. I would say yesterday was in the

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<v Speaker 2>top ten funnest days on the Internet. But I was

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<v Speaker 2>really really sad that something that would have made the

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<v Speaker 2>day fun no matter what, got buried, which was Howard

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<v Speaker 2>Blunick testifying in front of Congress and showing what an

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<v Speaker 2>absolute unqualified person years to be running anything this high up.

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<v Speaker 3>Let's listen.

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<v Speaker 4>What's the terriffon bananas? Americans, by the way, love bananas.

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<v Speaker 4>We buy billions of them a year.

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<v Speaker 1>I love bananas.

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<v Speaker 4>What's the terriffon bananas?

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<v Speaker 3>The tariffone bananas would be representative of the countries that

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<v Speaker 3>produced and what what's that terraff generally ten percent? Correct?

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<v Speaker 4>Ten percent? Walmart has already increased the cost of bananas

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<v Speaker 4>by eight percent.

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<v Speaker 5>As untrust who deals with us, that will go to

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<v Speaker 5>zero as countries do deals right now.

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<v Speaker 4>American consumer now and on the businesses with the confus Now,

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<v Speaker 4>mister Secretary, I believe you know better. I believe you

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<v Speaker 4>recognize that a trade deficit is not something to fear.

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<v Speaker 4>I believe you know that predictability, stability is essential for businesses.

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<v Speaker 1>I wish you would show that truth to this administration.

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<v Speaker 2>And I yeope, back ladies my mind.

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<v Speaker 5>Mister Tairman, if I make one quick comment to the end,

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<v Speaker 5>that'd be okay. I'm sorry, would you mind if I

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<v Speaker 5>make one quick comment to the representative?

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<v Speaker 3>Please? Uh?

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<v Speaker 6>There is no uncertainty.

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<v Speaker 5>If you build in America and you produce your product

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<v Speaker 5>in America, there will be no task.

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<v Speaker 1>We can't be hung as aling in.

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<v Speaker 3>America and pay no tax. You cannot, very very clear.

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<v Speaker 1>You cannot fighting build that as in America.

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<v Speaker 3>Time with the general Lady has expired.

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<v Speaker 1>Wait, you can't build bananas in America.

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<v Speaker 2>It is so far this discussion of on shoring things.

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<v Speaker 2>What it's like, so many these jobs we don't Americans doing,

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<v Speaker 2>and that was what we worked on for seventy five years.

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<v Speaker 2>And then there's just things that are not able to

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<v Speaker 2>be done in our climate.

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<v Speaker 1>Speak for yourself. I'm building American bananas right here. Baby, No,

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<v Speaker 1>this isn't completely insane. And what you don't see, because

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<v Speaker 1>this is audio and now video, is that he has

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<v Speaker 1>this enormous qrin on his face. That is absolutely it just.

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<v Speaker 2>Is so he thought he killed it.

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<v Speaker 1>Yeah, he thinks he killed it. I think that is

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<v Speaker 1>absolutely he thinks he killed it. And my man, he

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<v Speaker 1>did not kill it. It's just very annoying, I mean,

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<v Speaker 1>and also so insane.

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<v Speaker 2>We have more incompetent hires that are totally unqualified for

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<v Speaker 2>their job this time, though it's much more in the

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<v Speaker 2>comical way of that. We have a twenty two year

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<v Speaker 2>old former gardener picked to lead the Terrorism Prevention Department

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<v Speaker 2>of Homeland Security named Thomas Fugate.

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<v Speaker 1>Yeah. I mean, and this is you know, this is

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<v Speaker 1>this story relates to the story about the CDC, relates

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<v Speaker 1>to the story about everything else they are. They're defenestrating

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<v Speaker 1>the federal government, and they're going to be consequences. I

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<v Speaker 1>hope there aren't, but it really seems like they're going

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<v Speaker 1>to be. And it's just such a incredibly insane moment

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<v Speaker 1>in American life and just so fucked up. Excuse my

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<v Speaker 1>fact Stuart Stevens is a legendary campaign manager and the

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<v Speaker 1>author of the Conspiracy to in America Five Ways My

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<v Speaker 1>Old Party is driving our democracy to autocracy. Welcome to

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<v Speaker 1>Fast Politics, Stuart Stevens.

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<v Speaker 5>Thank you, Molly. I've got to use this as a

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<v Speaker 5>shout out for your book. It's really extraordinary. It really

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<v Speaker 5>is an amazing piece of writing.

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<v Speaker 1>Well, thank you. I really appreciate that. And you know,

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<v Speaker 1>Stuart is actually really incredible. You are a boot beautiful writer,

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<v Speaker 1>and you write tends not to be political, writing tends

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<v Speaker 1>not to be so lyrical, and you write very lyrically.

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<v Speaker 1>So I really appreciate that from you. And now we

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<v Speaker 1>must talk about your mad cap idea, which I love

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<v Speaker 1>it so much. It's also just super interesting. So talk

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<v Speaker 1>me through this idea.

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<v Speaker 5>The idea of nationalizing Starlink. And yeah, the deeply troubling

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<v Speaker 5>thing about this is that I seem to agree with

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<v Speaker 5>Steve mannon, but I'm trying to get over that. Look,

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<v Speaker 5>I mean this in all seriousness, never if we had

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<v Speaker 5>one person so deeply embedded into essential related national security industries.

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<v Speaker 5>Companies Starlink and SpaceX are critical elements of American national

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<v Speaker 5>security and of America's power in the world. So, I mean,

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<v Speaker 5>if I just woke up in the Middle nine and said,

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<v Speaker 5>what if we had a guy who you know, has

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<v Speaker 5>a well reported, very high level drug problem, unstable obviously

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<v Speaker 5>mental issues, and he's the person that runs these companies,

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<v Speaker 5>he'd probably say that's really not a great idea. There

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<v Speaker 5>is this thing called the Defense Procurement Act, which is

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<v Speaker 5>passed in nineteen fifty. It was actually updated in nineteen

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<v Speaker 5>seventy to specifically include anything related to space, and in

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<v Speaker 5>earlier versions, the first was around World War One they

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<v Speaker 5>came up with It gives the government in times of

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<v Speaker 5>national emergency the power to direct or nationalize industries, and

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<v Speaker 5>it's been used before from the railways to mining and

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<v Speaker 5>various ways with steel companies. So Republicans say that we

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<v Speaker 5>are in a national emergency, they say that we are

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<v Speaker 5>at war. That's what they used to justify the use

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<v Speaker 5>of the Alien Act, and they call it a regular warfare.

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<v Speaker 5>So if I was a Democrat, though now that Steve

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<v Speaker 5>Bannon has supported this idea, maybe you don't have to

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<v Speaker 5>be a Democrat, I.

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<v Speaker 3>Would take you face value.

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<v Speaker 5>Okay, great, right, we're in a national emergency where it

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<v Speaker 5>war that gives the government the power to nationalize SpaceX

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<v Speaker 5>and Starlink.

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<v Speaker 1>So as a conservative, it's a pretty bold idea. I

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<v Speaker 1>don't think it's wrong. But so the theory of the

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<v Speaker 1>case here is that I think Tesla it doesn't. It

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<v Speaker 1>is sort of a rounding error. But there are two

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<v Speaker 1>companies that Elon Muss that has had that our owns

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<v Speaker 1>that are where he is the largest stockholder of SpaceX

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<v Speaker 1>is actually a private company that he has built through

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<v Speaker 1>government subsidies and a lot of incentive advising with taxes,

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<v Speaker 1>and they have made him the richest band in the world.

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<v Speaker 1>And one is Starlink and one is SpaceX and starlink

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<v Speaker 1>is And again this runs to the idea that you

0:12:56.559 --> 0:13:00.800
<v Speaker 1>have a problem, which is you need SpaceX for satellites

0:13:01.120 --> 0:13:06.360
<v Speaker 1>and also space exploration. You need Starlink for all of

0:13:06.400 --> 0:13:10.000
<v Speaker 1>the stuff that's already in space and yeah, the communication.

0:13:10.320 --> 0:13:13.920
<v Speaker 1>And again Trump tweeted yesterday about canceling a lot of

0:13:13.920 --> 0:13:17.800
<v Speaker 1>Elon's contracts. But there is no other company that can

0:13:17.840 --> 0:13:23.239
<v Speaker 1>do this. So we got here because government refused to regulate.

0:13:23.440 --> 0:13:26.080
<v Speaker 1>I mean, explain is how we got here that we

0:13:26.160 --> 0:13:28.120
<v Speaker 1>have one company that does these things.

0:13:28.760 --> 0:13:33.400
<v Speaker 5>It's interesting because wearing my conservative hat. You could make

0:13:33.440 --> 0:13:35.599
<v Speaker 5>a good case that this goes to the efficiency of

0:13:35.640 --> 0:13:40.199
<v Speaker 5>the marketplace. You had a guy who is extraordinarily gifted,

0:13:40.240 --> 0:13:43.800
<v Speaker 5>if deeply disturbed. So had this been set up by

0:13:43.920 --> 0:13:47.280
<v Speaker 5>NASA from the beginning, you would have had security clearances

0:13:47.280 --> 0:13:49.599
<v Speaker 5>that would have include drug testing, and you wouldn't have

0:13:49.640 --> 0:13:53.880
<v Speaker 5>an elone muff anywhere near this thing. So that's positive.

0:13:54.200 --> 0:13:57.240
<v Speaker 5>But now that it is what it is, one person

0:13:57.240 --> 0:13:59.920
<v Speaker 5>should not be allowed to have this power, particularly someone

0:14:00.080 --> 0:14:03.880
<v Speaker 5>who has such terrible judgment, is obviously in some sort

0:14:03.920 --> 0:14:07.160
<v Speaker 5>of manic personal crisis. And we have a perfect example

0:14:07.200 --> 0:14:11.120
<v Speaker 5>of his insertion of himself in world events when he

0:14:11.240 --> 0:14:17.600
<v Speaker 5>refused in twenty twenty two Ukraine, Yeah, of twenty twenty

0:14:17.600 --> 0:14:21.120
<v Speaker 5>two to allow Ukraine, I mean, just picture this. Ukraine

0:14:21.120 --> 0:14:24.520
<v Speaker 5>had set up the first use of one of their

0:14:24.560 --> 0:14:29.200
<v Speaker 5>now sort of famous water drones, these water power drones

0:14:29.240 --> 0:14:34.400
<v Speaker 5>that carry explosives that they've used to somehow for a

0:14:34.400 --> 0:14:37.440
<v Speaker 5>country that didn't have a navy to defeat the Russian navy.

0:14:37.600 --> 0:14:42.080
<v Speaker 5>So they are seventy kilometers away from their target, which

0:14:42.200 --> 0:14:47.520
<v Speaker 5>was the Muskova flagship, and Elon musk turned off the

0:14:47.560 --> 0:14:50.560
<v Speaker 5>starlink and refused to turn it back on. That is

0:14:51.520 --> 0:14:56.480
<v Speaker 5>extremely dangerous, and there is this weird affinity would be

0:14:56.560 --> 0:14:59.560
<v Speaker 5>the most positive way to put it. Of this group

0:14:59.600 --> 0:15:03.760
<v Speaker 5>of South Africans that he is part of. Sex is

0:15:03.760 --> 0:15:10.040
<v Speaker 5>another one. They have this soft spot for Russia, probably

0:15:10.120 --> 0:15:15.160
<v Speaker 5>but no other reason. It's an oligarch's paradise and they

0:15:15.160 --> 0:15:20.680
<v Speaker 5>are oligarchs or would be firing and they have elections

0:15:20.680 --> 0:15:24.440
<v Speaker 5>that are performative, not determinative, which they obviously you know.

0:15:24.880 --> 0:15:28.240
<v Speaker 5>I just I think it should be done. I think

0:15:28.280 --> 0:15:32.120
<v Speaker 5>if you had any sort of seriousness about national security,

0:15:32.760 --> 0:15:36.280
<v Speaker 5>you would step back from this and say, regardless of

0:15:36.320 --> 0:15:40.320
<v Speaker 5>how we got here, we're here and we can't allow

0:15:40.360 --> 0:15:41.320
<v Speaker 5>this to continue.

0:15:41.560 --> 0:15:43.880
<v Speaker 1>I think it's going to be hard to convince people

0:15:43.920 --> 0:15:46.280
<v Speaker 1>to do that because I think the public markets aren't

0:15:46.280 --> 0:15:48.760
<v Speaker 1>going to like it. I understand the need for it

0:15:48.840 --> 0:15:53.240
<v Speaker 1>because Elon is very erratic, and he's running these companies

0:15:53.280 --> 0:15:55.560
<v Speaker 1>in a very erratic way, and there are certain things

0:15:55.560 --> 0:16:01.160
<v Speaker 1>that are needed from Starlank and SpaceX that you know,

0:16:01.400 --> 0:16:07.440
<v Speaker 1>his personal peccadillos are hurting right like, there are people

0:16:07.560 --> 0:16:10.840
<v Speaker 1>up in the space station who need to be okay,

0:16:10.920 --> 0:16:16.280
<v Speaker 1>there are people in Alabama or rural Kentucky or you know,

0:16:16.320 --> 0:16:20.040
<v Speaker 1>where they need to make sure the satellites, or Ukraine

0:16:20.320 --> 0:16:22.680
<v Speaker 1>where they need to make sure the satellites are working.

0:16:23.120 --> 0:16:27.560
<v Speaker 1>So there is a need that is beyond what Elon's

0:16:27.560 --> 0:16:30.360
<v Speaker 1>personal piccadillos are. But the worry I think a lot

0:16:30.400 --> 0:16:32.040
<v Speaker 1>of us on the both the left and the right,

0:16:32.160 --> 0:16:35.240
<v Speaker 1>is that once you start taking over private companies, it's

0:16:35.280 --> 0:16:36.840
<v Speaker 1>a very slippery slope.

0:16:37.040 --> 0:16:38.560
<v Speaker 3>Yeah, it's look, it's been used before.

0:16:38.600 --> 0:16:41.680
<v Speaker 5>It's always been unpopular with those that are connected to

0:16:41.720 --> 0:16:46.840
<v Speaker 5>the companies, right understandable, going back to when they nationalized

0:16:46.840 --> 0:16:49.840
<v Speaker 5>a lot of use of the railroads, uh, going into

0:16:50.400 --> 0:16:52.720
<v Speaker 5>the US entry into World War One. I think it's

0:16:52.840 --> 0:16:55.840
<v Speaker 5>like everything in life, you have to balance the good right,

0:16:56.640 --> 0:17:01.640
<v Speaker 5>And there's really no two companies that are as deeply

0:17:01.800 --> 0:17:04.000
<v Speaker 5>involved in national security.

0:17:04.400 --> 0:17:04.560
<v Speaker 3>You know.

0:17:04.640 --> 0:17:07.960
<v Speaker 5>This isn't a case of your nationalizing Tesla to get

0:17:08.000 --> 0:17:12.000
<v Speaker 5>FOURD to break or to help Toyota and Tesla, which

0:17:12.040 --> 0:17:14.359
<v Speaker 5>is really the source of most of his wealth. And

0:17:14.400 --> 0:17:16.119
<v Speaker 5>of course, which is one of the reasons they've had

0:17:16.200 --> 0:17:21.280
<v Speaker 5>this extraordinary higher technical fight is Trump wants to cut

0:17:21.320 --> 0:17:25.439
<v Speaker 5>to EV credits and until recently, the only money that

0:17:25.480 --> 0:17:29.280
<v Speaker 5>Tesla made was from EV credits. They were basically an

0:17:29.320 --> 0:17:32.520
<v Speaker 5>ev credit company that also made cars. You take that

0:17:32.600 --> 0:17:38.719
<v Speaker 5>away and the value Tesla's extraordinarily overvalued company.

0:17:38.880 --> 0:17:40.720
<v Speaker 1>Right, Yes, for sure it will.

0:17:40.520 --> 0:17:44.200
<v Speaker 5>Go down, but that's fine. I mean, Tesla's not necessary

0:17:44.560 --> 0:17:48.520
<v Speaker 5>to have financial security. I mean, all my neighbors in

0:17:48.560 --> 0:17:52.240
<v Speaker 5>Santa Monica can make do a print wood will survive.

0:17:54.320 --> 0:18:00.399
<v Speaker 5>But there ought to be responsible adults connected with the

0:18:00.440 --> 0:18:03.920
<v Speaker 5>best interest in the United States government that are at

0:18:03.920 --> 0:18:07.200
<v Speaker 5>this point running starlink and running SpaceX.

0:18:07.800 --> 0:18:09.160
<v Speaker 3>Right, pay him a bunch.

0:18:08.960 --> 0:18:11.240
<v Speaker 1>Of money, right by it from them.

0:18:11.480 --> 0:18:13.200
<v Speaker 5>United States government has a lot of money. You don't

0:18:13.200 --> 0:18:15.399
<v Speaker 5>have to just seize it. Pay them a lot of money.

0:18:15.440 --> 0:18:15.880
<v Speaker 3>That's fine.

0:18:15.960 --> 0:18:19.360
<v Speaker 1>So you feel like it's an imminent domain question.

0:18:19.119 --> 0:18:20.280
<v Speaker 3>Exactly like imminent domain.

0:18:20.320 --> 0:18:22.840
<v Speaker 5>That's a very good it's a very good example, and

0:18:22.880 --> 0:18:27.040
<v Speaker 5>we use it, and it's controversial, and those that are

0:18:27.200 --> 0:18:29.200
<v Speaker 5>eminently domained out usually don't worry.

0:18:29.240 --> 0:18:29.320
<v Speaker 3>Right.

0:18:30.119 --> 0:18:33.800
<v Speaker 5>But I just think that you can't unsee what we've

0:18:33.840 --> 0:18:36.440
<v Speaker 5>seen in the last forty eight hours.

0:18:36.080 --> 0:18:38.000
<v Speaker 1>Right, this is not a person who should be in

0:18:38.119 --> 0:18:39.480
<v Speaker 1>charge of National Saturday.

0:18:39.760 --> 0:18:41.920
<v Speaker 5>I mean you could say, okay, here's a guy. He's

0:18:42.000 --> 0:18:44.720
<v Speaker 5>jumping up and down behind it. You know, President of

0:18:44.720 --> 0:18:47.159
<v Speaker 5>the United States. You look at that footage in the

0:18:47.200 --> 0:18:51.000
<v Speaker 5>Oval Office, and you know, there's not a teenage in

0:18:51.040 --> 0:18:53.160
<v Speaker 5>America that would walk into their home in that kind

0:18:53.160 --> 0:18:55.080
<v Speaker 5>of condition and not know that they're going to be

0:18:55.119 --> 0:18:58.320
<v Speaker 5>busted by their parents. How deeply into drugs do you

0:18:58.400 --> 0:19:03.040
<v Speaker 5>have to be that you can't restrain yourself the morning

0:19:03.240 --> 0:19:05.800
<v Speaker 5>of knowing that you're going to have meeting in the

0:19:05.800 --> 0:19:09.200
<v Speaker 5>Oval Office that's going to be televised. You know, if

0:19:09.200 --> 0:19:11.639
<v Speaker 5>you can't kind of hold it together for that, that

0:19:11.760 --> 0:19:15.680
<v Speaker 5>is a serious indication of a serious problem.

0:19:16.080 --> 0:19:18.240
<v Speaker 1>Right. I mean, we don't want to speculate, but there

0:19:18.240 --> 0:19:23.040
<v Speaker 1>certainly has been reporting in the Wallstreet Journal about a

0:19:23.119 --> 0:19:25.040
<v Speaker 1>box of pills and this and that.

0:19:26.040 --> 0:19:28.520
<v Speaker 5>You also said, did he use this kind of meine? Right,

0:19:28.760 --> 0:19:32.200
<v Speaker 5>and we can now use Donald Trump as a source, right.

0:19:32.040 --> 0:19:35.400
<v Speaker 1>Well, Donald Trump, the two of them did definitely get

0:19:35.440 --> 0:19:41.280
<v Speaker 1>involved in a lot of pretty insane no name calling.

0:19:41.600 --> 0:19:45.080
<v Speaker 1>So right now there are a lot of people who

0:19:45.119 --> 0:19:48.880
<v Speaker 1>want Elan and Trump to sort of take it all down, right,

0:19:49.000 --> 0:19:53.640
<v Speaker 1>they are de accelerate, d you know whatever, stop fighting.

0:19:53.880 --> 0:19:57.000
<v Speaker 1>This is a bad situation for people like Mike Johnson.

0:19:57.680 --> 0:20:03.119
<v Speaker 1>This is a bad situation for people like Anna, Paulina

0:20:03.240 --> 0:20:06.879
<v Speaker 1>Luna or any member of the House goop who is

0:20:06.960 --> 0:20:10.760
<v Speaker 1>got to choose between their richest benefactor and their political

0:20:11.520 --> 0:20:15.400
<v Speaker 1>north star. Do you think, and this is something already

0:20:15.440 --> 0:20:19.080
<v Speaker 1>we're seeing this, do you think like this bill could

0:20:19.160 --> 0:20:25.439
<v Speaker 1>get crashed just by Elon? Should Democrats be pushing that

0:20:25.920 --> 0:20:32.119
<v Speaker 1>even if Elon pash the bill is something totally different

0:20:32.200 --> 0:20:34.240
<v Speaker 1>than why Democrats want to crash it.

0:20:34.840 --> 0:20:37.920
<v Speaker 5>I think that what Democrats have to learn to do

0:20:38.240 --> 0:20:41.400
<v Speaker 5>is to use whatever tools they have available and not

0:20:41.440 --> 0:20:43.520
<v Speaker 5>to feel that like this is beneath me or that

0:20:43.600 --> 0:20:47.320
<v Speaker 5>is right. You can't allow yourself to luxury of pretending

0:20:48.240 --> 0:20:50.439
<v Speaker 5>that the greater good is served by acting like a

0:20:50.520 --> 0:20:56.160
<v Speaker 5>normal governing party. Right, as Jonathan last that brilliantly pointed out,

0:20:56.240 --> 0:20:59.600
<v Speaker 5>we don't need opposition party now, we need a dissident movement.

0:20:59.840 --> 0:21:02.919
<v Speaker 5>So this is a terrible bill for any reason. So

0:21:03.000 --> 0:21:05.720
<v Speaker 5>he didn't need Elon, But the degree to which Elon

0:21:05.800 --> 0:21:09.560
<v Speaker 5>can be useful in this, I think they should grasp

0:21:09.600 --> 0:21:12.680
<v Speaker 5>it and beat him over the head with it. And look,

0:21:12.720 --> 0:21:15.399
<v Speaker 5>this is also just we should not lose sight of

0:21:15.440 --> 0:21:17.400
<v Speaker 5>the fact this is terrible for the country.

0:21:18.040 --> 0:21:21.360
<v Speaker 1>Right, no deep off medicaid.

0:21:21.320 --> 0:21:25.080
<v Speaker 5>Today's no, just this fight is terrible country. The bill

0:21:25.160 --> 0:21:29.719
<v Speaker 5>is terrible too, But today's anniversary of D Day. Yeah,

0:21:29.760 --> 0:21:32.679
<v Speaker 5>but think about what America was doing then and what

0:21:33.080 --> 0:21:38.520
<v Speaker 5>the leadership, the sacrifice, and the image that it secured

0:21:38.600 --> 0:21:43.040
<v Speaker 5>for America's place in the world as a flawed but

0:21:43.400 --> 0:21:48.920
<v Speaker 5>instrument of greater good compared to this fight between two

0:21:49.160 --> 0:21:54.720
<v Speaker 5>deeply flawed, horrible human beings who are two of the

0:21:54.760 --> 0:21:57.679
<v Speaker 5>most powerful people in the world. I mean, it's just

0:21:58.119 --> 0:22:01.239
<v Speaker 5>how far are we falling? Publicans are to blame for this.

0:22:01.640 --> 0:22:04.040
<v Speaker 5>They didn't have to tolerate this, and they've allowed it

0:22:04.080 --> 0:22:04.520
<v Speaker 5>to happen.

0:22:04.880 --> 0:22:08.240
<v Speaker 1>So talk to me about what this looks like now.

0:22:08.320 --> 0:22:12.320
<v Speaker 1>So Democrats really could and I think they should think

0:22:12.359 --> 0:22:14.840
<v Speaker 1>about trying to sink this thing with the help of

0:22:14.840 --> 0:22:18.200
<v Speaker 1>Elon Musk, because Keal and Musks people want it gone.

0:22:18.640 --> 0:22:21.680
<v Speaker 1>This bill, if it passes, will kick people off Medicaid,

0:22:21.760 --> 0:22:24.560
<v Speaker 1>it will cut food stamps for poor kids, It will

0:22:24.680 --> 0:22:28.440
<v Speaker 1>just do everything, and it will extend these ridiculous tax cuts.

0:22:28.640 --> 0:22:30.919
<v Speaker 1>And it will also open the door to no tax

0:22:30.960 --> 0:22:33.680
<v Speaker 1>on tips. How that will work, I have no idea

0:22:33.880 --> 0:22:34.560
<v Speaker 1>talk about that.

0:22:34.840 --> 0:22:37.920
<v Speaker 5>Look, I think the Democrats should have a greater ambition

0:22:38.040 --> 0:22:41.359
<v Speaker 5>than just stopping this bill. They should use what's happened

0:22:41.400 --> 0:22:44.439
<v Speaker 5>with Musk as one of the instruments to undo and

0:22:44.480 --> 0:22:48.240
<v Speaker 5>get all these Doze cronies out of government. I mean,

0:22:48.400 --> 0:22:51.040
<v Speaker 5>just stop and think the guy that we have seen

0:22:51.080 --> 0:22:53.760
<v Speaker 5>in the last twenty four hours. Would you trust him

0:22:53.760 --> 0:22:55.439
<v Speaker 5>to hire someone to paint your house?

0:22:55.960 --> 0:22:56.200
<v Speaker 1>Now?

0:22:56.320 --> 0:22:56.480
<v Speaker 3>No?

0:22:57.160 --> 0:23:01.360
<v Speaker 5>And he's what are these people like that he's hired.

0:23:01.640 --> 0:23:03.959
<v Speaker 5>They try to hide, they try to the big balls

0:23:04.000 --> 0:23:06.439
<v Speaker 5>in these crowds. They're going to be weird. They're not

0:23:06.480 --> 0:23:10.240
<v Speaker 5>going to have a sense of any patriotism, and they're dangerous,

0:23:10.440 --> 0:23:12.840
<v Speaker 5>right we are at this moment. I mean, anybody you know,

0:23:13.480 --> 0:23:15.400
<v Speaker 5>I think grusde has made this very good point.

0:23:15.720 --> 0:23:16.440
<v Speaker 3>Oh this is great.

0:23:16.480 --> 0:23:18.240
<v Speaker 5>You got one of these guys has all our personal

0:23:18.280 --> 0:23:21.920
<v Speaker 5>information in his pocket and the other has the nuclear codes. Right, yes,

0:23:22.560 --> 0:23:25.879
<v Speaker 5>well this is really great. So I think it just

0:23:26.320 --> 0:23:33.800
<v Speaker 5>indicates the recklessness and carelessness and lack of any sense

0:23:33.840 --> 0:23:39.280
<v Speaker 5>of responsibility that has driven this entire Doge effort.

0:23:39.600 --> 0:23:40.840
<v Speaker 3>They should try to undo this.

0:23:41.560 --> 0:23:44.800
<v Speaker 1>Yeah, it's it's interesting, and in fact, there's really good

0:23:44.840 --> 0:23:48.440
<v Speaker 1>reporting today from the Washington Post about how DOGE has

0:23:48.480 --> 0:23:53.240
<v Speaker 1>fired so many people, and there really is quite They're

0:23:53.359 --> 0:23:57.040
<v Speaker 1>trying to rehire these people that they fired. And I

0:23:57.119 --> 0:24:00.800
<v Speaker 1>do wonder if there is a question now if you could,

0:24:01.320 --> 0:24:03.920
<v Speaker 1>I mean, I think it would mean that you would

0:24:03.960 --> 0:24:07.080
<v Speaker 1>need to appeal to John Thoon. You would mean that

0:24:07.160 --> 0:24:10.520
<v Speaker 1>you would need to get Trump back on board to

0:24:10.640 --> 0:24:13.840
<v Speaker 1>try to stop sort of defenestrating the federal government. I'm

0:24:13.840 --> 0:24:18.760
<v Speaker 1>not sure. Like remember, part of why DOJE was allowed

0:24:18.800 --> 0:24:22.640
<v Speaker 1>to happen was because the Heritage Foundation really did want

0:24:23.160 --> 0:24:28.000
<v Speaker 1>to unravel the federal government. So there were two different

0:24:28.400 --> 0:24:29.840
<v Speaker 1>polls involved in that.

0:24:30.400 --> 0:24:33.840
<v Speaker 5>Talk to that, yeah, I think also, yes, that's true

0:24:33.880 --> 0:24:37.719
<v Speaker 5>the Heritage Foundation, of course, but there is a hidden

0:24:37.760 --> 0:24:40.560
<v Speaker 5>motive here of someone like Trump and someone like Musk.

0:24:41.640 --> 0:24:46.480
<v Speaker 5>They really don't believe in democracy. They believe in autocracies

0:24:46.920 --> 0:24:50.280
<v Speaker 5>and the sort of great Man theory of history. So

0:24:50.480 --> 0:24:54.200
<v Speaker 5>if you have a government that is working, that is functioning,

0:24:55.440 --> 0:24:59.199
<v Speaker 5>they see that as a reduction of their own ability

0:24:59.680 --> 0:25:04.560
<v Speaker 5>to be historic figures. This whole notion that goes back

0:25:04.600 --> 0:25:09.200
<v Speaker 5>to George Washington, that the president is just holds the

0:25:09.240 --> 0:25:12.520
<v Speaker 5>office temporarily and this is he's a steward of something greater.

0:25:13.600 --> 0:25:17.040
<v Speaker 5>That goes back to the oath of allegiances to the Constitution,

0:25:17.160 --> 0:25:20.520
<v Speaker 5>not to a man that is deeply alien to someone

0:25:20.560 --> 0:25:24.840
<v Speaker 5>like Trump and someone like Musk, and everything is personal

0:25:24.880 --> 0:25:27.440
<v Speaker 5>to him. So this is one of the reasons they're

0:25:27.440 --> 0:25:33.000
<v Speaker 5>so drawn to putin. And it is cruelty, it is ignorance,

0:25:33.359 --> 0:25:38.440
<v Speaker 5>it is a complete inability to imagine how government can

0:25:38.480 --> 0:25:43.200
<v Speaker 5>help others. But it also is a ploy to make

0:25:44.040 --> 0:25:47.240
<v Speaker 5>the need for a strong man essential. I think the

0:25:47.480 --> 0:25:50.879
<v Speaker 5>best fights you get in not because you know you're

0:25:50.920 --> 0:25:53.000
<v Speaker 5>gonna win, but you get in because you have to fight.

0:25:53.320 --> 0:25:55.479
<v Speaker 5>It's true of Ukraine, is true the Battle of Britain.

0:25:56.520 --> 0:25:59.040
<v Speaker 5>That's that is the Democrats should have. I mean, if

0:25:59.040 --> 0:26:01.000
<v Speaker 5>Democrats take over the House, the first thing I would

0:26:01.040 --> 0:26:02.679
<v Speaker 5>do is I would cut off all funding for the

0:26:02.840 --> 0:26:04.440
<v Speaker 5>executive branch every bit.

0:26:05.119 --> 0:26:08.920
<v Speaker 1>Yeah, such a good point, Such a good point.

0:26:08.400 --> 0:26:13.240
<v Speaker 5>Don't play this game by different rules, except that this

0:26:13.280 --> 0:26:16.720
<v Speaker 5>is the game that we're in, and use those rules.

0:26:17.160 --> 0:26:20.320
<v Speaker 5>Don't be like we were in World War One when

0:26:20.960 --> 0:26:25.040
<v Speaker 5>hesitant to establish intelligence because gentlemen don't read other gentlemen's mail.

0:26:25.359 --> 0:26:30.160
<v Speaker 1>No, right, that was the actual sense of Bidenism. Was

0:26:30.200 --> 0:26:33.280
<v Speaker 1>bringing a stuff to animal to a knife fight, was

0:26:33.920 --> 0:26:36.600
<v Speaker 1>refusing to meet these people where they were.

0:26:37.000 --> 0:26:39.240
<v Speaker 5>Yeah, I think that there's two ways to look at that.

0:26:39.400 --> 0:26:41.720
<v Speaker 5>I think that's what you just said is absolutely true.

0:26:42.280 --> 0:26:46.840
<v Speaker 5>I think also that Biden historically will have to plead

0:26:46.880 --> 0:26:54.560
<v Speaker 5>guilty to having a greater expectation of what America could

0:26:54.640 --> 0:26:57.520
<v Speaker 5>rise to than America chose to rise to.

0:26:57.880 --> 0:27:00.639
<v Speaker 1>That is really true. Thank you, thank you, thank you,

0:27:00.840 --> 0:27:02.000
<v Speaker 1>Stuart Stevens.

0:27:02.280 --> 0:27:03.440
<v Speaker 3>Thank you.

0:27:03.440 --> 0:27:09.439
<v Speaker 1>You're so smart. John Cassidy is a staff writer at

0:27:09.440 --> 0:27:12.720
<v Speaker 1>The New Yorker and the author of Capitalism and Its Critics,

0:27:12.760 --> 0:27:17.720
<v Speaker 1>A History from the Industrial Revolution to AI. So welcome

0:27:17.760 --> 0:27:19.320
<v Speaker 1>to Fast Politics.

0:27:18.880 --> 0:27:20.800
<v Speaker 6>John, thanks very much for inviting me on.

0:27:21.080 --> 0:27:23.639
<v Speaker 1>I am excited to talk about this book, but I

0:27:23.720 --> 0:27:26.840
<v Speaker 1>just want for a minute to talk about the progression.

0:27:27.160 --> 0:27:29.440
<v Speaker 1>So the last book he wrote was a book about

0:27:29.440 --> 0:27:33.800
<v Speaker 1>how markets fail, and this book is about capitalism and

0:27:33.960 --> 0:27:37.639
<v Speaker 1>perhaps how capitalism may have some failings. Is there a

0:27:37.720 --> 0:27:40.080
<v Speaker 1>connection here between this one and the next.

0:27:40.200 --> 0:27:43.320
<v Speaker 7>I'm recovering the sort of economics and finance. You knows

0:27:43.640 --> 0:27:45.320
<v Speaker 7>since I was in my twenties and I in my

0:27:45.400 --> 0:27:48.720
<v Speaker 7>sixties now, so we're talking nearly forty years. So if

0:27:48.720 --> 0:27:51.840
<v Speaker 7>you cover finance and economics, what makes news is always

0:27:51.840 --> 0:27:54.320
<v Speaker 7>the market failures. My first book about was it was

0:27:54.359 --> 0:27:57.360
<v Speaker 7>about the Internet boom and bust back in the late nineties.

0:27:57.800 --> 0:28:00.800
<v Speaker 7>My second book was really about the financial Christ's great

0:28:00.840 --> 0:28:04.000
<v Speaker 7>financial Crisis of two thousand and seven, two thousand and eight,

0:28:04.000 --> 0:28:06.720
<v Speaker 7>two thousand and nine, and the sort of economic failures

0:28:06.760 --> 0:28:07.280
<v Speaker 7>behind that.

0:28:07.520 --> 0:28:09.520
<v Speaker 6>And then I thought, well, I've done the two individual ones.

0:28:09.560 --> 0:28:12.359
<v Speaker 7>Why not go the whole hog and do a book about,

0:28:12.440 --> 0:28:15.440
<v Speaker 7>you know, the sort of full history of capitalism and

0:28:15.760 --> 0:28:18.880
<v Speaker 7>its critics. The pitch for this book is that it's

0:28:18.920 --> 0:28:22.280
<v Speaker 7>not just another boring history of capitalism. It's toiled through

0:28:22.320 --> 0:28:24.840
<v Speaker 7>the eyes of the critics. So I mean I turned

0:28:24.840 --> 0:28:27.200
<v Speaker 7>it into a series of mini biographies going all the

0:28:27.240 --> 0:28:30.399
<v Speaker 7>way back to Adam Smith and the luod Heites up

0:28:30.480 --> 0:28:31.119
<v Speaker 7>until today.

0:28:31.520 --> 0:28:32.720
<v Speaker 1>So it's working great.

0:28:32.840 --> 0:28:33.560
<v Speaker 6>Huh.

0:28:33.640 --> 0:28:36.640
<v Speaker 7>Well, I mean there's always two sided capitalism, right, I mean,

0:28:36.760 --> 0:28:40.480
<v Speaker 7>we generally regarded as better than the alternatives. We tried

0:28:40.520 --> 0:28:43.840
<v Speaker 7>an alternative in the twentieth century state socialism that eventually

0:28:43.880 --> 0:28:47.960
<v Speaker 7>broke down. I mean, capitalism has delivered a massive economic growth.

0:28:48.000 --> 0:28:49.800
<v Speaker 7>I mean, I've got a charge in my book showing

0:28:49.840 --> 0:28:52.760
<v Speaker 7>how if you just look at GDP since the year dot,

0:28:52.880 --> 0:28:55.960
<v Speaker 7>you know, it's basically a flat line until eighteen hundred,

0:28:56.360 --> 0:28:58.960
<v Speaker 7>when industrial capitalism comes on and then it takes off,

0:28:59.000 --> 0:29:01.480
<v Speaker 7>and it's been going up since. So I think the

0:29:01.520 --> 0:29:05.040
<v Speaker 7>reason capitalism survives is because it delivers the gods just

0:29:05.080 --> 0:29:07.719
<v Speaker 7>in terms of economic growth, but it brings with it

0:29:07.800 --> 0:29:10.800
<v Speaker 7>a lot of problems which have been there since, being

0:29:10.840 --> 0:29:16.440
<v Speaker 7>of the system, exploitation of workers and of consumers, inequality,

0:29:16.600 --> 0:29:21.000
<v Speaker 7>especially recent decades, that's been a huge problem. And now

0:29:21.560 --> 0:29:24.080
<v Speaker 7>technological displacement has always been an issue, and now with

0:29:24.160 --> 0:29:26.360
<v Speaker 7>AI it's an even bigger issue.

0:29:26.640 --> 0:29:28.600
<v Speaker 6>So you know, it's a two sided story.

0:29:28.800 --> 0:29:31.360
<v Speaker 7>I'm a sort of I come from a center left,

0:29:31.400 --> 0:29:34.280
<v Speaker 7>so I've always been critical of capitalism and thought it

0:29:34.320 --> 0:29:37.200
<v Speaker 7>can be improved, and I would describe myself as a

0:29:37.240 --> 0:29:40.160
<v Speaker 7>sort of Canesian social democrat. I think you've got to

0:29:40.400 --> 0:29:42.680
<v Speaker 7>keep the basics of the system, but you need to

0:29:43.120 --> 0:29:46.400
<v Speaker 7>manage it. I'm in favor of managed capitalism. That's the

0:29:46.520 --> 0:29:48.680
<v Speaker 7>argument I make in the book. And in sort of

0:29:48.760 --> 0:29:51.640
<v Speaker 7>terms of American politics, I guess you'd put me in

0:29:51.720 --> 0:29:55.280
<v Speaker 7>the sort of Elizabeth Warren Bernie Sanders camp.

0:29:55.440 --> 0:29:58.000
<v Speaker 1>There are many people on this podcast who are in

0:29:58.000 --> 0:30:02.280
<v Speaker 1>that camp too. It feels there is a real bit

0:30:02.520 --> 0:30:08.240
<v Speaker 1>of post free trade hangover happening right now, and we

0:30:08.320 --> 0:30:14.280
<v Speaker 1>saw it again. Biden poor at explaining things for any

0:30:14.360 --> 0:30:17.480
<v Speaker 1>number of reasons. He did. Chips and Sciences was largely

0:30:17.480 --> 0:30:21.080
<v Speaker 1>about entering manufacturing because of Taiwan and because of any

0:30:21.280 --> 0:30:25.960
<v Speaker 1>number of other reasons, Tariff's, Trump whatever. But theoretically the

0:30:26.000 --> 0:30:30.720
<v Speaker 1>thought behind it is entering manufacturing. So can you explain

0:30:30.840 --> 0:30:35.760
<v Speaker 1>to us where this sort of free trade I want

0:30:35.760 --> 0:30:39.640
<v Speaker 1>to say, it's a sort of like free trade regretism

0:30:39.960 --> 0:30:41.920
<v Speaker 1>comes from. That's not a real word.

0:30:42.120 --> 0:30:43.800
<v Speaker 7>I mean, I think you know you have to You

0:30:43.800 --> 0:30:45.200
<v Speaker 7>have to go back into history a bit.

0:30:45.280 --> 0:30:48.040
<v Speaker 6>Well, that's the problem with covering Trump. Everybody gets caught

0:30:48.120 --> 0:30:50.400
<v Speaker 6>up in the day to day headlines. I do it myself.

0:30:50.640 --> 0:30:53.960
<v Speaker 7>I just wrote about his comments about toys. But you

0:30:54.000 --> 0:30:56.960
<v Speaker 7>have to step back a bit here. Trump people attribute

0:30:56.960 --> 0:30:59.280
<v Speaker 7>too much to him. He is a react in a

0:30:59.320 --> 0:31:03.200
<v Speaker 7>part of a react against globalization and what he uses

0:31:03.320 --> 0:31:07.520
<v Speaker 7>neoliberalism basically sort of conservative economic policy from the sort

0:31:07.520 --> 0:31:11.480
<v Speaker 7>of nineties onwards and embrace of sort of unrestricted globalization

0:31:11.840 --> 0:31:15.120
<v Speaker 7>that produced in the US at least a lot of

0:31:15.800 --> 0:31:19.280
<v Speaker 7>a lot of job displacement, especially in Red States. Best

0:31:19.320 --> 0:31:22.440
<v Speaker 7>they joined the China Shock from about when China joined

0:31:22.440 --> 0:31:24.840
<v Speaker 7>the World Trade Organization in two thousand and one. If

0:31:24.880 --> 0:31:28.400
<v Speaker 7>you just look at the charts of manufacturing employment after that,

0:31:28.440 --> 0:31:32.000
<v Speaker 7>they go straight down, and that produce another There's always

0:31:32.000 --> 0:31:35.040
<v Speaker 7>this bigger, big debate about was Trump a product of

0:31:35.200 --> 0:31:39.240
<v Speaker 7>economic resentments or racial and cultural resentments. I think the

0:31:39.280 --> 0:31:43.000
<v Speaker 7>answer obviously is both, but economics definitely played a role.

0:31:43.280 --> 0:31:47.160
<v Speaker 7>So what we've seen since twenty sixteen, anyway, is a

0:31:47.160 --> 0:31:51.000
<v Speaker 7>big backlash against sort of free trade on both sides

0:31:51.000 --> 0:31:53.920
<v Speaker 7>of the aisle. Started off, obviously with Trump and his

0:31:54.080 --> 0:31:56.120
<v Speaker 7>tariffs in the first term, and he run in on

0:31:56.200 --> 0:31:57.280
<v Speaker 7>economic nationalism.

0:31:57.280 --> 0:31:58.800
<v Speaker 6>America First, America First.

0:31:58.880 --> 0:32:02.800
<v Speaker 7>That's basically a catchphrase for economic nationalism. The Democrats up

0:32:02.880 --> 0:32:05.680
<v Speaker 7>until you know, Clinton and Obama were very much in

0:32:05.680 --> 0:32:08.680
<v Speaker 7>favor of free trade. It was obviously Bill Clinton who

0:32:08.720 --> 0:32:11.479
<v Speaker 7>signed then After Agreement back in the nineteen nineties. So

0:32:11.520 --> 0:32:13.680
<v Speaker 7>the party had very much bought into the idea that

0:32:13.720 --> 0:32:16.479
<v Speaker 7>free trade and globalization was best for America, and there

0:32:16.520 --> 0:32:18.440
<v Speaker 7>are some strong arguments for it, but they'd sort of

0:32:18.440 --> 0:32:20.760
<v Speaker 7>ignored and say they ignored the downsides, but they didn't

0:32:20.800 --> 0:32:22.720
<v Speaker 7>do it, so they didn't do enough about them. So

0:32:22.760 --> 0:32:26.320
<v Speaker 7>Trump stepped into the sort of backlash that was building

0:32:26.640 --> 0:32:29.320
<v Speaker 7>and made it his own, you know, in twenty sixteen.

0:32:29.720 --> 0:32:32.760
<v Speaker 7>And Biden came in in twenty twenty and some people

0:32:32.760 --> 0:32:34.720
<v Speaker 7>thought he'd get rid of Trump's tariffs, but he did,

0:32:34.720 --> 0:32:36.080
<v Speaker 7>and he kept the way he did. He got rid

0:32:36.120 --> 0:32:38.360
<v Speaker 7>of the stuff on Europe and other things, but he

0:32:38.480 --> 0:32:42.560
<v Speaker 7>kept the tariffs on China and then introduced a very

0:32:42.560 --> 0:32:45.959
<v Speaker 7>aggressive industrial policy which he referred to the Chips Act,

0:32:46.360 --> 0:32:51.520
<v Speaker 7>the Infrastructure Act, and the part of the Green New

0:32:51.560 --> 0:32:55.000
<v Speaker 7>Deal aspects of the It wasn't really a green New Deal,

0:32:55.040 --> 0:32:59.760
<v Speaker 7>but a pro electric vehicles, pro green technology, aspects of

0:32:59.840 --> 0:33:03.000
<v Speaker 7>the American Rescue Act. And it was, you know, a

0:33:03.040 --> 0:33:05.840
<v Speaker 7>big shift for the Democrats to the sort of I

0:33:05.880 --> 0:33:08.680
<v Speaker 7>wouldn't say the Trumpian line, but in a more interventionist,

0:33:08.840 --> 0:33:11.480
<v Speaker 7>anti skepticism of tree trade.

0:33:11.640 --> 0:33:14.600
<v Speaker 6>So that and then at the end of his term.

0:33:14.440 --> 0:33:17.040
<v Speaker 7>Biden, when he was back, I think it was at

0:33:17.080 --> 0:33:20.120
<v Speaker 7>last September or October, he then doubled down on his

0:33:20.160 --> 0:33:21.800
<v Speaker 7>tariffs of China and raised them.

0:33:21.800 --> 0:33:22.800
<v Speaker 6>He remember he raised someone.

0:33:22.800 --> 0:33:25.280
<v Speaker 7>I think he raised the tariffs on electric vehicles Chinese

0:33:25.280 --> 0:33:27.600
<v Speaker 7>electric vehicles two one hundred percent, not as high as

0:33:27.640 --> 0:33:29.560
<v Speaker 7>Trump one hundred and forty five percent, but you know,

0:33:29.640 --> 0:33:32.840
<v Speaker 7>pretty high, more targeted. But you know, no way you

0:33:32.840 --> 0:33:35.440
<v Speaker 7>can describe that as a free trade policy. So I

0:33:35.480 --> 0:33:38.320
<v Speaker 7>think at this stage the sort of abandonment of the

0:33:38.360 --> 0:33:42.280
<v Speaker 7>old globalization model is a bi partisan thing. There are

0:33:42.360 --> 0:33:44.800
<v Speaker 7>few there are people on both sides who are still favorite,

0:33:44.880 --> 0:33:48.600
<v Speaker 7>but the sort of leadership of both parties have rejected

0:33:48.760 --> 0:33:52.080
<v Speaker 7>some extent. Now Trump has come in and taken that

0:33:52.120 --> 0:33:55.640
<v Speaker 7>sort of consensus and then twisted it, you know, tripled

0:33:55.640 --> 0:33:57.400
<v Speaker 7>down on it. I wouldn't say double down on it

0:33:57.440 --> 0:34:02.120
<v Speaker 7>with his blanket tariffs, tariffing countries, you know, tariffing poor countries,

0:34:02.320 --> 0:34:06.800
<v Speaker 7>putting huge tax on countries. Just Trump's not just anti

0:34:07.000 --> 0:34:10.520
<v Speaker 7>sort of unfair trade. Trump's anti all trade. It seems

0:34:10.560 --> 0:34:13.520
<v Speaker 7>like you eliminate all trade deficits, you know, and that

0:34:13.520 --> 0:34:16.000
<v Speaker 7>there's a huge difference between that and trying to just

0:34:16.040 --> 0:34:17.920
<v Speaker 7>target certain industries like Biden.

0:34:18.239 --> 0:34:19.239
<v Speaker 6>But that's where we stand out.

0:34:19.239 --> 0:34:20.880
<v Speaker 7>I don't think we're going back to the old model

0:34:21.239 --> 0:34:24.000
<v Speaker 7>of free trade agreements anytime soon.

0:34:24.440 --> 0:34:27.239
<v Speaker 1>Right, Trump seems to not like any trade. Now, is

0:34:27.280 --> 0:34:29.040
<v Speaker 1>he against trade because he's a racist?

0:34:29.320 --> 0:34:29.520
<v Speaker 5>Right?

0:34:29.719 --> 0:34:32.759
<v Speaker 1>Obviously? I mean I don't think anyone would think even

0:34:32.840 --> 0:34:36.000
<v Speaker 1>he might agree to that, or is he against free

0:34:36.000 --> 0:34:38.719
<v Speaker 1>trade because he doesn't understand how trade deficits work.

0:34:39.160 --> 0:34:40.480
<v Speaker 6>I think he doesn't really understand.

0:34:40.840 --> 0:34:43.080
<v Speaker 7>He doesn't have any real appreciation of sort of free

0:34:43.080 --> 0:34:45.200
<v Speaker 7>trade and the sort of arguments for it. Going back

0:34:45.239 --> 0:34:49.560
<v Speaker 7>to Adam Smith and David Ricardo featuring my book, you know,

0:34:49.760 --> 0:34:52.040
<v Speaker 7>the argument for free trade is if everybody does what

0:34:52.120 --> 0:34:55.200
<v Speaker 7>they're best at, then everybody can benefit the sort of

0:34:55.239 --> 0:34:57.200
<v Speaker 7>gains from trade. And if you know you can bring

0:34:57.200 --> 0:34:59.759
<v Speaker 7>it down to you can bring it down to individuals

0:35:00.080 --> 0:35:02.920
<v Speaker 7>trade every day. I mean the famous example is, you know,

0:35:03.000 --> 0:35:05.080
<v Speaker 7>going for a haircut or something. You could cut your

0:35:05.120 --> 0:35:07.640
<v Speaker 7>own hair. You know, you could be self sufficient in haircuts,

0:35:07.680 --> 0:35:10.640
<v Speaker 7>but it wouldn't be very good. You gain you gain

0:35:10.719 --> 0:35:12.879
<v Speaker 7>from hiring an expert to do it, and you pay them.

0:35:12.880 --> 0:35:15.640
<v Speaker 7>So you run a deficit with your barber or your hairdresser.

0:35:15.760 --> 0:35:17.800
<v Speaker 6>He doesn't he doesn't give you. He or she doesn't

0:35:17.840 --> 0:35:19.719
<v Speaker 6>give you any money, but you give them money. So

0:35:20.280 --> 0:35:24.279
<v Speaker 6>we all run trade differences in our daily lives with

0:35:24.320 --> 0:35:26.080
<v Speaker 6>all the people we deal with. That's what the free

0:35:26.080 --> 0:35:26.560
<v Speaker 6>market is.

0:35:26.600 --> 0:35:29.319
<v Speaker 7>That that's what I could you know, that's the capitalism

0:35:29.440 --> 0:35:32.440
<v Speaker 7>and I exchange you're based on the sort of gains

0:35:32.440 --> 0:35:35.520
<v Speaker 7>from trade among individuals. The argument for a free trade

0:35:35.520 --> 0:35:38.400
<v Speaker 7>among countries is very similar. That if we want to

0:35:38.400 --> 0:35:41.120
<v Speaker 7>buy avocados, it's probably a good idea to hire them

0:35:41.120 --> 0:35:43.520
<v Speaker 7>from Mexico, where they buy them from Mexico, where they

0:35:43.520 --> 0:35:46.720
<v Speaker 7>can make them in bulk more cheaply than we can, and.

0:35:46.840 --> 0:35:49.799
<v Speaker 6>We can call them you know, iPhones or whatever. They

0:35:49.800 --> 0:35:50.719
<v Speaker 6>don't have any and we do.

0:35:52.040 --> 0:35:55.120
<v Speaker 7>So it's a very basic Almost any you know, any

0:35:55.120 --> 0:35:57.880
<v Speaker 7>economist across the spectrum agrees with that. But Trump has

0:35:57.960 --> 0:36:00.239
<v Speaker 7>just got this idea in his mind. I mean, yeah,

0:36:00.280 --> 0:36:02.960
<v Speaker 7>I think if I said I used to cover Trump

0:36:02.960 --> 0:36:04.800
<v Speaker 7>back in the eighties when I worked on the London

0:36:04.840 --> 0:36:07.200
<v Speaker 7>Times as a sort of Wall Street correspondent, and even

0:36:07.239 --> 0:36:08.920
<v Speaker 7>back then he was pretty much the same. I mean,

0:36:08.920 --> 0:36:11.680
<v Speaker 7>there's this famous editorial. You know, used to buy himself

0:36:11.800 --> 0:36:14.320
<v Speaker 7>editorials in the New York Times, full page ads.

0:36:15.719 --> 0:36:15.920
<v Speaker 2>You know.

0:36:15.960 --> 0:36:18.280
<v Speaker 7>The famous one was the one against The most famous

0:36:18.280 --> 0:36:20.360
<v Speaker 7>and notorious one was when he called for sort of

0:36:20.440 --> 0:36:21.399
<v Speaker 7>death penalty for the.

0:36:21.960 --> 0:36:23.520
<v Speaker 1>Yeah for the Central Park.

0:36:23.960 --> 0:36:27.080
<v Speaker 7>But another one he took out was about imports, and

0:36:27.320 --> 0:36:30.640
<v Speaker 7>at the time, the threat to American jobs and industries

0:36:30.640 --> 0:36:32.920
<v Speaker 7>were seen to come from Japan. Japan was the sort

0:36:32.960 --> 0:36:36.520
<v Speaker 7>of mini China of its time, you know, Toyota, Nissan

0:36:36.760 --> 0:36:42.960
<v Speaker 7>Hondo making roads into American car market, and Trump called

0:36:42.960 --> 0:36:46.719
<v Speaker 7>for basically blanket bands on any imports made very exactly

0:36:46.880 --> 0:36:49.920
<v Speaker 7>in his saying they were basically cheating, they were stealing

0:36:49.920 --> 0:36:52.000
<v Speaker 7>our markets, same as things. He says, now you know

0:36:52.080 --> 0:36:55.000
<v Speaker 7>they were stealing our markets, taking our jobs away, and

0:36:55.040 --> 0:36:57.160
<v Speaker 7>it should be completely banned. I mean, I don't think

0:36:57.160 --> 0:37:00.160
<v Speaker 7>his views have changed in Iota, in you know, forty years.

0:37:01.080 --> 0:37:03.839
<v Speaker 7>It was all there in those editorials.

0:37:03.480 --> 0:37:05.400
<v Speaker 6>And I don't you can't really talk.

0:37:05.280 --> 0:37:05.719
<v Speaker 3>About a bit.

0:37:05.760 --> 0:37:07.839
<v Speaker 7>I mean, I'm sure some of his advisors do to

0:37:07.840 --> 0:37:10.960
<v Speaker 7>some to some extent try to when he you know,

0:37:11.080 --> 0:37:14.160
<v Speaker 7>when he says, let's put one hundred tariff on somebody,

0:37:14.200 --> 0:37:16.600
<v Speaker 7>I'm sure somebody says, are we sure about that, mister president,

0:37:16.800 --> 0:37:19.000
<v Speaker 7>But you know, he says, you're iron, and they just

0:37:19.040 --> 0:37:21.680
<v Speaker 7>go ahead. I mean, his argument is, you know, it's

0:37:21.719 --> 0:37:24.920
<v Speaker 7>all for bargaining purposes, but he talks across purposes. One

0:37:25.000 --> 0:37:27.000
<v Speaker 7>day he says, you know, we need it, we need

0:37:27.040 --> 0:37:30.560
<v Speaker 7>the huge tariffs because it'll strengthen our bargaining position and

0:37:30.600 --> 0:37:31.400
<v Speaker 7>they'll come beg in.

0:37:31.440 --> 0:37:32.800
<v Speaker 6>And then we'll greect great pills.

0:37:33.160 --> 0:37:35.439
<v Speaker 7>And then the next day he said, no, we we're

0:37:35.440 --> 0:37:36.760
<v Speaker 7>going to replace the tax system.

0:37:36.800 --> 0:37:38.840
<v Speaker 6>We don't need income tax anymore. We should switch to

0:37:38.960 --> 0:37:40.360
<v Speaker 6>just tariffs will make so much.

0:37:41.719 --> 0:37:45.880
<v Speaker 7>They those two things can't possibly fit together, because you know,

0:37:46.080 --> 0:37:48.120
<v Speaker 7>if it's the bargaining shape, you're bargaining away.

0:37:48.400 --> 0:37:50.400
<v Speaker 6>The idea is to bargain down the tariffs, and then

0:37:50.400 --> 0:37:50.880
<v Speaker 6>you wouldn't know.

0:37:51.760 --> 0:37:54.279
<v Speaker 1>Yes, I would love it if you could sort of

0:37:54.320 --> 0:37:56.640
<v Speaker 1>talk about where we are with the trade, because it

0:37:56.760 --> 0:38:01.600
<v Speaker 1>seems like we are on our way to a trade catastrophe.

0:38:01.640 --> 0:38:06.040
<v Speaker 1>But maybe I'm wrong. We don't have any deals yet.

0:38:06.280 --> 0:38:09.800
<v Speaker 1>From what I understand from the ports, from the information

0:38:09.880 --> 0:38:14.839
<v Speaker 1>on the ports, the ports are seem pretty spare. So

0:38:15.520 --> 0:38:17.720
<v Speaker 1>how does this how does this play out?

0:38:18.000 --> 0:38:21.080
<v Speaker 7>Yeah, we're in a sort of interregnant period of the moment, Molly,

0:38:21.160 --> 0:38:24.520
<v Speaker 7>I think here whereas the policies have been put into effect,

0:38:24.600 --> 0:38:26.719
<v Speaker 7>especially the ones on China, but they haven't really hit

0:38:26.800 --> 0:38:30.759
<v Speaker 7>home yet. Companies order goods in advance, so most of

0:38:30.840 --> 0:38:33.960
<v Speaker 7>the goods they're using at the moment, or most retailers

0:38:34.000 --> 0:38:36.000
<v Speaker 7>are selling, you know, they ordered a year ago or

0:38:36.040 --> 0:38:38.799
<v Speaker 7>six months ago or whatever. So as this sort of

0:38:39.080 --> 0:38:43.480
<v Speaker 7>several month period of several months where Trump's announced these tariffs.

0:38:43.640 --> 0:38:45.960
<v Speaker 7>The hammer won't come down until, you know, the empty

0:38:45.960 --> 0:38:49.840
<v Speaker 7>ships don't arrive. There's already been big reports of the

0:38:49.840 --> 0:38:52.239
<v Speaker 7>famous one was Seattle. There was some day whether we're

0:38:52.239 --> 0:38:55.000
<v Speaker 7>apparently known, you know, no shipping containers in the port.

0:38:55.280 --> 0:38:57.040
<v Speaker 6>But I think that maybe was a bit of a flu.

0:38:57.280 --> 0:38:59.279
<v Speaker 7>And people think that by the end of May is

0:38:59.360 --> 0:39:01.719
<v Speaker 7>start of June and it really will be hitting home

0:39:01.760 --> 0:39:04.279
<v Speaker 7>and the shortages will start to kick in. I mean

0:39:04.280 --> 0:39:06.520
<v Speaker 7>that's what the retailers I think told Trump down at

0:39:06.520 --> 0:39:09.680
<v Speaker 7>the White House, head of you know, Home Depot, Walmart,

0:39:09.719 --> 0:39:10.160
<v Speaker 7>et cetera.

0:39:10.200 --> 0:39:10.680
<v Speaker 6>Were in there.

0:39:10.800 --> 0:39:10.960
<v Speaker 3>You know.

0:39:11.000 --> 0:39:12.960
<v Speaker 7>Trump came out the next day and you know, said,

0:39:13.000 --> 0:39:14.560
<v Speaker 7>this is not really going to happen. It's going to

0:39:14.560 --> 0:39:16.600
<v Speaker 7>be here. You know, we're going to make deals.

0:39:16.760 --> 0:39:18.719
<v Speaker 6>But now he seems to be changing his turn, and

0:39:18.840 --> 0:39:20.680
<v Speaker 6>he made this argument last week. You know he's done.

0:39:20.680 --> 0:39:24.919
<v Speaker 7>Now he's forced to make arguments that kids don't need all, yes,

0:39:25.600 --> 0:39:27.840
<v Speaker 7>as many pencils, they can have five pencils instead of

0:39:27.840 --> 0:39:31.160
<v Speaker 7>five hundred pencils, which is a remarkable argument for a

0:39:31.160 --> 0:39:38.520
<v Speaker 7>Republican president to make, because arguing against consumerism. For all

0:39:38.560 --> 0:39:41.399
<v Speaker 7>my life, the arguments against mass consumerism have come from

0:39:41.400 --> 0:39:44.520
<v Speaker 7>the left. Now Trump is because he's in this political corner,

0:39:44.520 --> 0:39:46.600
<v Speaker 7>he's forced to sort of make some of those arguments.

0:39:46.640 --> 0:39:49.439
<v Speaker 7>And I wrote a piece facetiously arguing that he's become

0:39:49.480 --> 0:39:52.280
<v Speaker 7>a deep growth, which is in a very left wing position.

0:39:52.560 --> 0:39:56.040
<v Speaker 7>So I think, to get back to your question, if

0:39:56.080 --> 0:39:59.200
<v Speaker 7>he keeps the tariffs where they are now, there will

0:39:59.239 --> 0:40:02.560
<v Speaker 7>be an economic shock, and it will probably not the economy.

0:40:02.120 --> 0:40:04.759
<v Speaker 6>Into recession Wall Street. He's not going to do that.

0:40:05.000 --> 0:40:07.640
<v Speaker 1>Find someone who has faith in you the way the

0:40:07.680 --> 0:40:09.880
<v Speaker 1>public markets have faith in Donald Trump.

0:40:10.000 --> 0:40:12.120
<v Speaker 7>Well they I think, what the you know, the member

0:40:12.160 --> 0:40:15.279
<v Speaker 7>the Liberation Day, you know, when he his tariffs and

0:40:15.320 --> 0:40:18.120
<v Speaker 7>the markets basically collapsed, and when the markets collapsed, and

0:40:18.160 --> 0:40:21.800
<v Speaker 7>especially the bond market went into a tissy, Trump basically caved,

0:40:22.080 --> 0:40:23.359
<v Speaker 7>not basically he did cave.

0:40:23.400 --> 0:40:24.239
<v Speaker 6>You know, it came out.

0:40:24.480 --> 0:40:27.840
<v Speaker 7>He put the you know, he suspended all the ones

0:40:28.080 --> 0:40:30.040
<v Speaker 7>apart from China for ninety days.

0:40:30.200 --> 0:40:31.799
<v Speaker 6>He hinted that, you know, other ones that would be

0:40:31.800 --> 0:40:32.439
<v Speaker 6>coming down too.

0:40:32.840 --> 0:40:34.919
<v Speaker 7>So I think the markets took that as a sign

0:40:35.000 --> 0:40:36.960
<v Speaker 7>that when push comes to show, they.

0:40:36.880 --> 0:40:37.960
<v Speaker 6>Run things, not Trump.

0:40:38.239 --> 0:40:40.600
<v Speaker 7>They've had this remarkable comeback when the markets are basically

0:40:40.680 --> 0:40:42.440
<v Speaker 7>back to where you know, when he was elected. So

0:40:42.520 --> 0:40:44.560
<v Speaker 7>I think the market is maybe be where we're being

0:40:44.560 --> 0:40:47.799
<v Speaker 7>too optimistic because I think it's very difficult to predict Trump.

0:40:47.880 --> 0:40:50.840
<v Speaker 7>He does have this sort of got instinct that what

0:40:50.920 --> 0:40:52.759
<v Speaker 7>he's doing is right, and I think he would be

0:40:52.760 --> 0:40:54.360
<v Speaker 7>a huge climb down for him to get rid of

0:40:54.400 --> 0:40:57.200
<v Speaker 7>all his tariffs. But at the same time, he hates

0:40:57.239 --> 0:40:59.840
<v Speaker 7>the market going down. We know that judges every private

0:41:00.560 --> 0:41:03.120
<v Speaker 7>so he sort of is between a rock and a

0:41:03.160 --> 0:41:05.520
<v Speaker 7>hard place. Really, so I think we'll go We're going

0:41:05.560 --> 0:41:08.120
<v Speaker 7>to end up. He's just sort of more chaos with him,

0:41:08.360 --> 0:41:10.680
<v Speaker 7>you know, sort of bucking down on some things, up

0:41:10.719 --> 0:41:11.720
<v Speaker 7>in the stakes on others.

0:41:11.760 --> 0:41:11.920
<v Speaker 1>You know.

0:41:11.920 --> 0:41:14.960
<v Speaker 7>We so he announced this threatened this week that he's

0:41:14.960 --> 0:41:18.480
<v Speaker 7>got about a hundred percent tariffs on more in films.

0:41:19.200 --> 0:41:24.160
<v Speaker 1>Yes, those cash cass For a second, what I thought

0:41:24.200 --> 0:41:27.360
<v Speaker 1>was interesting about that chaos was that he was okay

0:41:27.360 --> 0:41:30.680
<v Speaker 1>with the market, the public markets creator but it was

0:41:30.719 --> 0:41:34.440
<v Speaker 1>when the bond market started freaking out. Now what I

0:41:34.640 --> 0:41:37.439
<v Speaker 1>think happened, and again, who the fuck knows, but it's

0:41:37.600 --> 0:41:41.160
<v Speaker 1>possible that someone went in and explained to him dollar flight.

0:41:41.680 --> 0:41:45.719
<v Speaker 1>I am like very interested in dollar flight. I just

0:41:45.760 --> 0:41:48.000
<v Speaker 1>read a really smart piece in The Economist about it.

0:41:48.520 --> 0:41:51.800
<v Speaker 1>Can you explain to us what dollar flight is and

0:41:52.400 --> 0:41:56.240
<v Speaker 1>why that is not an impossible I think it's unlikely,

0:41:56.320 --> 0:41:59.120
<v Speaker 1>but I think it's not impossible scenario right now.

0:41:59.120 --> 0:42:03.120
<v Speaker 7>Well, it's back up to the Liberation Day fiasco again

0:42:03.280 --> 0:42:06.319
<v Speaker 7>and the market reaction what really spoop people in the

0:42:06.320 --> 0:42:08.160
<v Speaker 7>markets and in the White House and in the FED

0:42:08.200 --> 0:42:09.040
<v Speaker 7>and everywhere.

0:42:09.040 --> 0:42:10.400
<v Speaker 6>Basically the stock.

0:42:10.160 --> 0:42:13.359
<v Speaker 7>Market went down, but the dollar and bonds went down

0:42:13.400 --> 0:42:17.000
<v Speaker 7>to Usually when you have a crisis, money floods into

0:42:17.000 --> 0:42:19.799
<v Speaker 7>the bond market because it's seen as as seen as

0:42:19.800 --> 0:42:23.200
<v Speaker 7>a safe reserve. The US bonds US treasuries. People switch

0:42:23.239 --> 0:42:24.960
<v Speaker 7>out of bonds and they buy US treasuries.

0:42:24.960 --> 0:42:26.160
<v Speaker 6>They do that all over the world.

0:42:26.200 --> 0:42:30.360
<v Speaker 7>So if you're in China or England or Germany or wherever,

0:42:30.400 --> 0:42:32.160
<v Speaker 7>and you're trying to buy US treasures, you have to

0:42:32.160 --> 0:42:33.960
<v Speaker 7>buy dollars first to do it, because you could only

0:42:33.960 --> 0:42:37.560
<v Speaker 7>buy obviously their dollar denominated. So people buy dollars to

0:42:37.600 --> 0:42:40.759
<v Speaker 7>buy treasuries. That boosts the value of the dollar. So

0:42:40.840 --> 0:42:43.360
<v Speaker 7>in a crisis, it's always been a case of almost

0:42:43.440 --> 0:42:46.880
<v Speaker 7>always that the stocks collapse, people freak out. But the

0:42:46.880 --> 0:42:50.920
<v Speaker 7>bond market bounces and the dollar goes up this time,

0:42:51.160 --> 0:42:54.160
<v Speaker 7>but the stock market collapsed, well actually nearly collapsed. It

0:42:54.200 --> 0:42:56.960
<v Speaker 7>went down a lot, but the bond market tanked with it.

0:42:57.120 --> 0:43:00.480
<v Speaker 7>People seem to be fleeing out of bonds and treasuries

0:43:00.480 --> 0:43:03.160
<v Speaker 7>as well the US bonds and buying things like gold

0:43:03.840 --> 0:43:07.920
<v Speaker 7>and other currencies, you know, maybe europe bonds issued in

0:43:07.960 --> 0:43:11.560
<v Speaker 7>Europe or even Japan or wherever. And that seemed to

0:43:11.640 --> 0:43:14.839
<v Speaker 7>especially be happening on the night of the Liberation Day

0:43:14.920 --> 0:43:18.960
<v Speaker 7>in Asia. It seems hedge funds or maybe Asian governments

0:43:19.040 --> 0:43:22.960
<v Speaker 7>or whatever, we're basically dumping dollars. And there are stories

0:43:23.239 --> 0:43:25.640
<v Speaker 7>in the markets which I've been told and not not

0:43:26.000 --> 0:43:28.720
<v Speaker 7>never been completely confirmed that Scott Less and the Treasury

0:43:28.760 --> 0:43:32.360
<v Speaker 7>Secretary was on the phone to hedge funds and foreign

0:43:32.400 --> 0:43:34.239
<v Speaker 7>governments in Asia saying, look, you know, you've got to

0:43:34.280 --> 0:43:34.680
<v Speaker 7>stop this.

0:43:34.719 --> 0:43:36.440
<v Speaker 6>We're going to deal with this crisis.

0:43:36.719 --> 0:43:39.680
<v Speaker 1>Working for Trump Man that it's not a good job.

0:43:40.320 --> 0:43:42.680
<v Speaker 7>So that happened. Then the question is, you know, are

0:43:42.680 --> 0:43:45.520
<v Speaker 7>we still vulnerable. Okay, he's reversed that, you know, he's

0:43:45.560 --> 0:43:47.319
<v Speaker 7>backed off. That could have happened again. I mean, the

0:43:47.360 --> 0:43:50.440
<v Speaker 7>problem is we're in a sort of overall situation in

0:43:50.440 --> 0:43:52.640
<v Speaker 7>which we are vulnerable because we run a huge you know,

0:43:52.640 --> 0:43:55.319
<v Speaker 7>we run a huge budget deficit and have have been

0:43:55.320 --> 0:43:57.600
<v Speaker 7>doing forever, and in order to in order to finance

0:43:57.600 --> 0:44:00.239
<v Speaker 7>that budget deficit, the treasury has to issue bonds, and

0:44:00.280 --> 0:44:02.600
<v Speaker 7>a lot of the buyers of those bonds historically over

0:44:02.600 --> 0:44:05.560
<v Speaker 7>the last decade or two have been foreigners, foreign governments,

0:44:05.640 --> 0:44:08.240
<v Speaker 7>including the Chinese government was famously.

0:44:08.080 --> 0:44:10.520
<v Speaker 1>Well, we are in a basically in a cold war

0:44:10.600 --> 0:44:14.440
<v Speaker 1>with at this point exactly, the unspoken assumption underneath Trump's

0:44:14.480 --> 0:44:16.200
<v Speaker 1>trade war is that we're the big guy on.

0:44:16.120 --> 0:44:18.040
<v Speaker 7>The block where the bully it can really do any

0:44:18.120 --> 0:44:20.000
<v Speaker 7>damage to us. Things are going to get bad, but

0:44:20.040 --> 0:44:23.400
<v Speaker 7>will come out best. Now, the fact that we're dependent

0:44:23.480 --> 0:44:29.359
<v Speaker 7>on foreign financing for the deficit sort of undermines that. So,

0:44:29.400 --> 0:44:30.839
<v Speaker 7>you know, maybe we're not as strong as we think

0:44:30.880 --> 0:44:33.160
<v Speaker 7>we are, or maybe as Trump thinks we are. So

0:44:33.239 --> 0:44:35.920
<v Speaker 7>that's always that's always the sort of tension here. And

0:44:35.960 --> 0:44:38.200
<v Speaker 7>you know, there's always this fear that maybe the Chinese

0:44:38.239 --> 0:44:41.360
<v Speaker 7>will start dumping bonds, maybe other governments will start dumping bonds,

0:44:41.600 --> 0:44:44.400
<v Speaker 7>and that would force you know, could in a crisis,

0:44:44.600 --> 0:44:47.919
<v Speaker 7>cause a collapse in the dollar and a big rise

0:44:47.920 --> 0:44:51.040
<v Speaker 7>in inflation. That's the sort of scenario we's developing countries

0:44:51.080 --> 0:44:53.799
<v Speaker 7>get into all the time, not the United States. I

0:44:53.840 --> 0:44:56.200
<v Speaker 7>think that's what we're so alarming to the markets and

0:44:56.280 --> 0:44:59.360
<v Speaker 7>to a lot of people. During the response to the Liberation,

0:44:59.440 --> 0:45:02.080
<v Speaker 7>Big Pretty Show. That's why they did a YouTube I

0:45:02.080 --> 0:45:05.640
<v Speaker 7>think basically made the same argument to child that I've

0:45:05.680 --> 0:45:08.080
<v Speaker 7>just made to you and said, we haven't ready to

0:45:08.080 --> 0:45:09.640
<v Speaker 7>go most choice, mister President.

0:45:09.680 --> 0:45:11.800
<v Speaker 1>We have to do something, and we can see that again.

0:45:11.960 --> 0:45:15.080
<v Speaker 1>Thank you, thank you, Thank you, John, and we're looking

0:45:15.120 --> 0:45:16.640
<v Speaker 1>forward to finishing the book.

0:45:16.640 --> 0:45:17.960
<v Speaker 6>Thanks very much for having me on.

0:45:20.160 --> 0:45:21.440
<v Speaker 3>No moment.

0:45:23.120 --> 0:45:25.800
<v Speaker 1>Jesse Cannon, Mali junk Fast.

0:45:26.400 --> 0:45:31.160
<v Speaker 2>New Mexico is feeling the wrath of the job course closure.

0:45:31.320 --> 0:45:33.840
<v Speaker 2>More than four hundred employees and students at Albuquerque and

0:45:33.920 --> 0:45:37.560
<v Speaker 2>Roswell campuses are impacted. According to the New Mexico Department

0:45:37.600 --> 0:45:38.680
<v Speaker 2>of Workforce.

0:45:38.280 --> 0:45:41.000
<v Speaker 1>Solutions, this is a moment of our grade that comes

0:45:41.040 --> 0:45:45.160
<v Speaker 1>directly from our friendly or in New Mexico. He just

0:45:45.480 --> 0:45:47.440
<v Speaker 1>sent me this thing. You know, you have this thing

0:45:47.520 --> 0:45:51.760
<v Speaker 1>called job Corpse. It's a small organization that helps people

0:45:51.840 --> 0:45:55.319
<v Speaker 1>get back on their feed. It is really good. It

0:45:55.400 --> 0:45:58.359
<v Speaker 1>trains kids to get jobs. It is like, these are

0:45:58.440 --> 0:46:01.360
<v Speaker 1>the things that we need our federal government to be doing.

0:46:01.560 --> 0:46:03.960
<v Speaker 1>It's not a huge amount of money to keep them going.

0:46:04.120 --> 0:46:10.360
<v Speaker 1>While Trump administration no more, Federal judge Wednesday temporarily block

0:46:10.480 --> 0:46:12.840
<v Speaker 1>job Corpse from closing by the end of the month

0:46:13.200 --> 0:46:17.359
<v Speaker 1>because this is money that Congress appropriated that the Trump

0:46:17.400 --> 0:46:22.000
<v Speaker 1>administration doesn't want to go towards the job Corpse, because

0:46:22.200 --> 0:46:25.239
<v Speaker 1>even though Congress created this and Congress should end it,

0:46:25.360 --> 0:46:29.160
<v Speaker 1>Trump has decided that the rounding error that is the

0:46:29.239 --> 0:46:32.839
<v Speaker 1>money to help these kids is not okay with him,

0:46:33.400 --> 0:46:40.960
<v Speaker 1>very very very annoying, upsetting, and also just unconstitutional. And that,

0:46:41.200 --> 0:46:45.040
<v Speaker 1>my friends, is our moment of fuck ray. That's it

0:46:45.200 --> 0:46:51.279
<v Speaker 1>for this episode of Fast Politics. Tune in every Monday, Wednesday,

0:46:51.480 --> 0:46:55.920
<v Speaker 1>Thursday and Saturday to hear the best minds and politics

0:46:56.000 --> 0:47:00.640
<v Speaker 1>make sense of all this chaos. If you enjoy this podcast, asked,

0:47:00.680 --> 0:47:04.080
<v Speaker 1>please send it to a friend and keep the conversation going.

0:47:04.560 --> 0:47:05.680
<v Speaker 1>Thanks for listening.