1 00:00:21,640 --> 00:00:24,879 Speaker 1: And welcome to the podcast. How are you welcome on 2 00:00:24,960 --> 00:00:28,160 this Wednesday? And today is the eleventh day of June, 3 00:00:29,199 --> 00:00:32,240 Year of Our Lord, twenty twenty five. My name is 4 00:00:32,280 --> 00:00:36,679 Tom Sullivan. So we start off, Yeah, we'll get all 5 00:00:36,759 --> 00:00:39,560 up to date on what's going on with Los Angeles, 6 00:00:40,520 --> 00:00:45,359 the China US deal, so to speak, some inflation report 7 00:00:45,439 --> 00:00:49,039 coming out today. I want to start though with we 8 00:00:49,200 --> 00:00:51,880 just got word just a little while ago that Brian Wilson, 9 00:00:52,679 --> 00:00:54,719 one of the brothers, one of the founders of the 10 00:00:54,759 --> 00:00:58,960 Beach Boys, passed away today at the age of eighty two. 11 00:00:59,039 --> 00:01:03,079 Does that make that makes you feel old? So I'm 12 00:01:03,119 --> 00:01:07,920 looking at the Beach Boys, and because podcast land there's 13 00:01:07,959 --> 00:01:11,040 all kinds of restrictions about music and everything else. I 14 00:01:11,079 --> 00:01:13,480 would love to play, you know, a little clips of 15 00:01:13,519 --> 00:01:15,400 some of the Beach Boys' biggest hits. And I looked 16 00:01:15,439 --> 00:01:18,439 at what are the biggest hits, and everybody's got a 17 00:01:18,439 --> 00:01:21,680 different list. I mean, there's one here called you know, 18 00:01:21,719 --> 00:01:26,040 wouldn't it be nice? They claim that's the biggest hit 19 00:01:26,359 --> 00:01:31,280 of Good Vibrations Surfing USA. God only knows. Don't worry 20 00:01:31,319 --> 00:01:35,280 baby Sloop John B. I mean, the list goes on 21 00:01:35,400 --> 00:01:39,280 and on and on even the The Wall Street Journal 22 00:01:40,200 --> 00:01:43,640 did a big oh bit on this say that he 23 00:01:43,840 --> 00:01:48,040 was he was inspired by melodies of Chuck Berry. I 24 00:01:48,079 --> 00:01:51,840 don't know about melodies. He's inspired by Chuck Berry and 25 00:01:51,920 --> 00:01:56,200 the harmonies of the Four Freshmen and Phil Spector's Wall 26 00:01:56,439 --> 00:02:00,079 of Sound style of production. And with all of that, 27 00:02:01,159 --> 00:02:04,439 he and a couple of his brothers and a cousin 28 00:02:04,480 --> 00:02:10,400 and a friend created the Beach Boys. So an era 29 00:02:11,120 --> 00:02:14,840 yes continues to keep moving down the road. But let's 30 00:02:14,840 --> 00:02:21,120 start today with speaking of southern California, and the Beach 31 00:02:21,159 --> 00:02:27,919 Boys brought the SoCal sound, the California sound, not California Girls, 32 00:02:27,960 --> 00:02:33,360 all that sort of stuff. Yep. But the the the protests, 33 00:02:33,599 --> 00:02:36,800 they're not protests. They're there. I shouldn't use the word protest. 34 00:02:36,840 --> 00:02:42,240 They're riots. And the people that are involved are professional agitators. 35 00:02:43,039 --> 00:02:47,000 They're anarchists. They show up. The police know who they are. 36 00:02:47,080 --> 00:02:50,120 They see them at any kind of these these sorts 37 00:02:50,159 --> 00:02:57,080 of events. They're not an unknown. They come well prepared 38 00:02:57,159 --> 00:03:01,639 and they come with good funding. If you've noticed, not 39 00:03:01,719 --> 00:03:03,680 only does a lot do a lot of people have 40 00:03:03,719 --> 00:03:09,240 the Mexican flags that just irritates people, But on top 41 00:03:09,319 --> 00:03:16,000 of that, you also have identical professional printed signs, so 42 00:03:16,599 --> 00:03:21,159 it's it's it's well done. And John Miller from r NYPD, guy, 43 00:03:21,319 --> 00:03:22,800 I'll play a clip for you here in just a 44 00:03:22,840 --> 00:03:26,360 second about the matching signs, and also he talks about 45 00:03:26,639 --> 00:03:30,319 He says, of course they're they're paid. Yes, this is 46 00:03:30,360 --> 00:03:33,879 this big money behind all of this. And there's various 47 00:03:33,919 --> 00:03:37,479 groups they operate as nonprofits that are the ones that 48 00:03:37,599 --> 00:03:40,919 are the people that organize and get all these people 49 00:03:40,919 --> 00:03:42,719 out there. And there's a lot to it. He says, 50 00:03:42,719 --> 00:03:45,039 there's you've got to bring you got to get everything 51 00:03:45,080 --> 00:03:46,599 set up, You've got to bring the signs, you got 52 00:03:46,599 --> 00:03:49,319 to bring water for the people to get them out there. 53 00:03:50,120 --> 00:03:51,919 So there's a fair amount of cost on the part 54 00:03:51,919 --> 00:03:53,639 of protesters. But one of the things I'll play it 55 00:03:53,639 --> 00:03:57,319 in the clip. He talks about the fact that because 56 00:03:57,360 --> 00:04:02,520 the police are using tear gas, that they now bring 57 00:04:02,639 --> 00:04:07,599 leaf blowers to the protest on the streets. And you go, 58 00:04:07,680 --> 00:04:10,039 what are they doing with leaf blowers on the streets 59 00:04:10,039 --> 00:04:12,000 of Los Angeles? I mean, they may be a leaf 60 00:04:12,080 --> 00:04:15,240 or two to clean up, but no, they do you 61 00:04:15,400 --> 00:04:19,120 go to a protest with a leaf blower? No, you 62 00:04:19,279 --> 00:04:22,079 go there because that's part of the equipment that you 63 00:04:22,240 --> 00:04:25,439 have to blow the smoke back and the tear gas 64 00:04:25,519 --> 00:04:28,519 back towards the police. So this is not These are 65 00:04:28,560 --> 00:04:31,839 not just accidental people on the streets of LA. This 66 00:04:32,160 --> 00:04:36,839 is highly highly prepared. And then on top of all 67 00:04:36,839 --> 00:04:41,279 of that, the whole Newsom Trump fight back and forth. 68 00:04:43,079 --> 00:04:45,439 I mean, on one hand, first of all, a lot 69 00:04:45,439 --> 00:04:48,319 of this going back and forth is not going to happen. 70 00:04:48,920 --> 00:04:53,439 Donald Trump is not going to arrest Gavin Newsom. Newsom 71 00:04:53,519 --> 00:04:57,040 does the barfight thing about come and get me tough guy. Well, no, 72 00:04:57,120 --> 00:05:00,920 he's not going to do that. But Newsom, I've said 73 00:05:00,920 --> 00:05:06,120 this before. Five years ago, I would kind of bark 74 00:05:06,240 --> 00:05:08,399 back at some of you about the fact that some 75 00:05:08,439 --> 00:05:11,079 of you from California would call and talk about Newsom, 76 00:05:11,560 --> 00:05:14,199 and I said, people don't know who you're talking about. 77 00:05:15,079 --> 00:05:19,120 They do now. And a lot of this Gavin Newsom 78 00:05:19,439 --> 00:05:24,879 is loving it because it gets him publicity and it 79 00:05:25,040 --> 00:05:28,480 moves him up the chain for the Democrats who are 80 00:05:28,519 --> 00:05:32,319 looking for somebody to fight back against Donald Trump, and 81 00:05:32,519 --> 00:05:37,519 here you go, it's absolutely made for him. So Newsom, 82 00:05:37,600 --> 00:05:41,600 who is skilled at self promotion, he's very good at 83 00:05:41,600 --> 00:05:45,079 promoting himself. He is going to milk this for all 84 00:05:45,199 --> 00:05:51,199 he can get at. Newsom threatened to withhold California tax 85 00:05:51,240 --> 00:05:54,879 dollars from the federal government. That's not going to happen either. 86 00:05:55,800 --> 00:05:57,879 The state, by the way, is not the one who 87 00:05:57,879 --> 00:06:02,439 writes the checks. It's the taxpayer in California that write 88 00:06:02,439 --> 00:06:07,600 the checks that it's called on their ten forty. So 89 00:06:08,000 --> 00:06:13,519 Trump is actually helping Gavin Newsom, making him the Democrat 90 00:06:13,639 --> 00:06:17,879 savior that will fight back against Trump. And yet on 91 00:06:17,920 --> 00:06:23,079 the other hand, well, I mean, Donald Trump could just 92 00:06:23,160 --> 00:06:27,959 sit back in Washington to let LA burn and then 93 00:06:28,079 --> 00:06:33,480 point out how feckless the leadership is in California. But well, 94 00:06:33,839 --> 00:06:38,800 there's also the accusation Donald Trump has overreacted by federalizing 95 00:06:38,879 --> 00:06:42,680 the National Guard and the threat of sending in the Marines. 96 00:06:42,720 --> 00:06:44,959 We haven't seen them yet. To keep talking about it 97 00:06:46,360 --> 00:06:50,279 all of that, people go, I don't know about the 98 00:06:50,399 --> 00:06:54,560 Marines on the streets of our cities against our own citizens. 99 00:06:55,240 --> 00:06:59,360 So I don't know who you believe is overreacting. Trump 100 00:06:59,519 --> 00:07:02,639 is getting a lot out of this too, because I mean, 101 00:07:02,680 --> 00:07:06,879 he could have waited until LA was more damaged, more 102 00:07:07,000 --> 00:07:14,680 people hurt, but nope, So Newsom is grabbing all the 103 00:07:14,680 --> 00:07:18,439 headlines he can, and I believe Donald Trump is actually 104 00:07:18,439 --> 00:07:21,560 helping Gavin Newsom. This may have backfired a little bit 105 00:07:21,600 --> 00:07:24,000 on him, or maybe that's the whole plan, is to 106 00:07:24,000 --> 00:07:26,319 get Newsom to be the guy to run against for 107 00:07:26,399 --> 00:07:29,199 the Republicans in twenty twenty eight. And that's the other 108 00:07:29,240 --> 00:07:32,279 part about this twenty twenty eight. It's awfully early. I 109 00:07:32,319 --> 00:07:35,240 don't think Newsom, no matter what he gets out of this, 110 00:07:35,399 --> 00:07:38,160 it will be sustained, other than people will probably know 111 00:07:38,240 --> 00:07:41,920 his name better. At first, I thought Gavin Newsom and 112 00:07:42,040 --> 00:07:47,000 Karen Bass looked rather weak. They didn't do anything. They 113 00:07:47,000 --> 00:07:50,480 didn't respond. It's the same thing out of Tim Walls 114 00:07:50,759 --> 00:07:56,240 in Minnesota when George Floyd, he didn't respond in Minneapolis 115 00:07:56,240 --> 00:08:02,480 suffered billions of dollars of damage. And Gavin Newsom and 116 00:08:02,560 --> 00:08:05,079 Karen Bass but basically all they did was say, now, 117 00:08:05,120 --> 00:08:08,519 with the bad people that we don't know, we don't 118 00:08:08,519 --> 00:08:12,079 support you, you people that are damaging property, you know, 119 00:08:12,160 --> 00:08:15,480 would you please stop what you're doing? It made them, 120 00:08:15,519 --> 00:08:20,560 I think, look rather weak. So Newsom is now crafting 121 00:08:20,600 --> 00:08:23,399 his image, trying to play the victim in a story 122 00:08:23,519 --> 00:08:26,040 like this. You need a victim, and you need a villain, 123 00:08:26,439 --> 00:08:29,720 and he's trying to craft that he's the victim and 124 00:08:29,839 --> 00:08:33,639 that big don Donald Trump, the mean president, is the 125 00:08:33,720 --> 00:08:36,600 villain and all of this so Trump gets what he wants. 126 00:08:37,399 --> 00:08:40,879 He has promised to be tough on crime, he promised 127 00:08:40,879 --> 00:08:45,480 to be tough on immigration. The polls are showing large 128 00:08:45,519 --> 00:08:50,200 support for him in this. I don't know how long 129 00:08:50,279 --> 00:08:53,080 that will stay, though, If you keep watching police cars 130 00:08:53,120 --> 00:08:56,879 burn on American city streets and now it's spreading to 131 00:08:56,960 --> 00:09:03,159 other cities, how long this will go before people start 132 00:09:04,240 --> 00:09:08,240 turning on the president or yet say wait a minute, 133 00:09:08,840 --> 00:09:11,279 you overreacted. I don't know which way this is going 134 00:09:11,360 --> 00:09:16,919 to go, but it's still somewhat early. But these are 135 00:09:17,080 --> 00:09:20,200 professional anarchists that are out there and they're going to 136 00:09:20,320 --> 00:09:24,360 try to turn the tables on Donald Trump to make 137 00:09:24,480 --> 00:09:30,320 him look like he's overplaying his hand. One of the 138 00:09:30,360 --> 00:09:36,960 things about Gavin Newso TikTok followers he had on June fourth, 139 00:09:37,200 --> 00:09:42,559 six hundred and three thousand followers June fourth, a week ago. 140 00:09:43,200 --> 00:09:46,960 He now has over one million TikTok followers. So he's 141 00:09:47,000 --> 00:09:50,639 getting followers on TikTok. I don't know if that will 142 00:09:50,720 --> 00:09:54,279 lead to him getting a nomination in twenty twenty eight 143 00:09:54,879 --> 00:09:59,240 Ken he sustained it. He's the master itself promotion. The 144 00:09:59,320 --> 00:10:01,600 problem is he starting to look kind of desperate. And 145 00:10:01,600 --> 00:10:04,799 it's a long way to two thousand and eight eight 146 00:10:05,480 --> 00:10:09,480 twenty twenty eight, and so far, we'll find out tomorrow. 147 00:10:09,559 --> 00:10:13,960 He's filed a lawsuit against Donald Trump and the judge 148 00:10:13,960 --> 00:10:16,919 has told them to just hold on. We're not going 149 00:10:16,960 --> 00:10:20,240 to do any changes until tomorrow. There's a hearing and 150 00:10:20,279 --> 00:10:24,159 we'll find out if But so far Newsom has not 151 00:10:24,279 --> 00:10:27,360 been successful in corporating. Maybe tomorrow we'll have to wait 152 00:10:27,399 --> 00:10:34,519 and see. Let's start with John Miller, former NYPD talking 153 00:10:34,600 --> 00:10:41,919 about the protesters they're not protesters, the rioters, and what 154 00:10:42,039 --> 00:10:42,679 they've been up to. 155 00:10:43,519 --> 00:10:46,279 Speaker 2: You know, it's interesting because every day that they are 156 00:10:46,320 --> 00:10:49,159 in contact with law enforcement, and some of these protesters 157 00:10:49,159 --> 00:10:51,399 aren't people who just came out on the migrant issue. 158 00:10:51,559 --> 00:10:55,679 These are experienced protesters involved in multiple issues. As they go, 159 00:10:55,799 --> 00:10:59,080 they learn. So let's talk about what police have been 160 00:10:59,120 --> 00:11:02,799 documenting in terms of what they've been facing from the protesters. 161 00:11:03,200 --> 00:11:07,679 They've talked about what weapons have the protesters armed themselves with, 162 00:11:08,039 --> 00:11:11,559 and over the course of the last four or five days, 163 00:11:11,600 --> 00:11:17,000 what they've seen is blunt force weapons, metal pipes, baseball bats, explosives. 164 00:11:17,000 --> 00:11:19,039 You saw a lot of that video right, commercial grade 165 00:11:19,120 --> 00:11:23,879 fireworks being fired at police, and so far one molotov cocktail. 166 00:11:24,080 --> 00:11:25,159 Speaker 1: A couple of nights ago. 167 00:11:25,480 --> 00:11:30,200 Speaker 2: That individual charge now with attempted murder, bottles, rocks, bricks, 168 00:11:30,480 --> 00:11:35,759 concrete blocks, and using their own chemical agents, deploying their 169 00:11:35,759 --> 00:11:39,840 own pepper spray, smoke grenades. Really interesting. When the police 170 00:11:40,159 --> 00:11:42,240 are going after people in the crowd who may have 171 00:11:42,320 --> 00:11:46,120 thrown or sprayed something at them, they deploy smoke so 172 00:11:46,159 --> 00:11:49,200 that the police can't see as they retreat. On the 173 00:11:49,240 --> 00:11:54,080 other hand, they also have defensive measures as aside from that, 174 00:11:54,120 --> 00:11:58,320 which is we've been seeing more gas masks being deployed, 175 00:11:58,840 --> 00:12:05,679 face shields, goggles, gloves. They've even been using leaf flowers. 176 00:12:05,879 --> 00:12:09,320 Think about that, when police are deploying gas leaf blowers 177 00:12:09,360 --> 00:12:13,480 to blow the gas back in the other direction. Communicating 178 00:12:13,519 --> 00:12:16,039 not on cell phones. They're operating with an assumption that 179 00:12:16,080 --> 00:12:19,039 their phones may be being monitored, which I think is 180 00:12:19,080 --> 00:12:22,799 a long shot. But they're using handheld encrypted radios, so 181 00:12:22,840 --> 00:12:25,720 we're seeing that level of sophistication increase by the day. 182 00:12:26,039 --> 00:12:31,000 Speaker 1: So they're not just pedestrians walking around. These are professional agitators. 183 00:12:31,559 --> 00:12:34,639 And again we'll see if the mood changes are not. 184 00:12:34,799 --> 00:12:38,480 So far, the president has got the public support. I mean, 185 00:12:38,519 --> 00:12:42,840 they don't like the illegal immigration problem, they support the 186 00:12:42,840 --> 00:12:46,799 president on that, and they certainly don't like crowds burning 187 00:12:46,919 --> 00:12:52,279 police cars and damaging property. So all of that is 188 00:12:52,320 --> 00:12:56,840 in favor of the president. And it's not helpful to 189 00:12:56,879 --> 00:12:59,440 Gavin Newsom, even though he's trying to play the victim. 190 00:13:00,279 --> 00:13:02,960 Why haven't you been Why didn't you jump on this 191 00:13:03,039 --> 00:13:08,200 the minute it started started Friday night? So we'll see. 192 00:13:08,320 --> 00:13:12,360 Harry Enton, the statistician from CNN, this is his update 193 00:13:12,399 --> 00:13:13,440 on all of this. 194 00:13:14,320 --> 00:13:17,679 Speaker 3: Yeah, let's just start off. If Gavin Newsom wanted to 195 00:13:17,720 --> 00:13:20,720 take on Donald Trump and loves the attention, he has 196 00:13:20,840 --> 00:13:21,639 one hundred percent. 197 00:13:21,759 --> 00:13:22,080 Speaker 4: Gotte it. 198 00:13:22,360 --> 00:13:22,960 Speaker 1: Take a look here. 199 00:13:23,039 --> 00:13:25,559 Speaker 3: Google searches of Gavin Newsom with Donald Trump. 200 00:13:25,639 --> 00:13:26,240 Speaker 1: Get this up. 201 00:13:26,600 --> 00:13:30,960 Speaker 3: Nine thousand, seven hundred percent versus a week ago. More 202 00:13:31,000 --> 00:13:35,000 folks are googling Gavin Newsom's name with Donald Trump than 203 00:13:35,120 --> 00:13:37,919 ever before in Google searches dating all the way back 204 00:13:37,960 --> 00:13:40,639 since two thousand and four. Donald Trump was able to 205 00:13:40,639 --> 00:13:42,960 make a name for himself through the Apprentice through all 206 00:13:43,000 --> 00:13:45,600 of his business adventures. He is now making a name 207 00:13:45,759 --> 00:13:48,879 for Gavin Newsom, who seems more than willing to relish 208 00:13:49,039 --> 00:13:50,240 in this fight. 209 00:13:50,559 --> 00:13:53,519 Speaker 5: One of the numbers, how can you kind of gauge 210 00:13:53,840 --> 00:13:57,039 why Newsom would see if we're taking this purely political, 211 00:13:57,240 --> 00:14:00,080 why Newsom would see benefit in taking on Trumpy? 212 00:14:00,240 --> 00:14:02,960 Speaker 3: Why is it that Gavin Newsom is more than willing 213 00:14:03,000 --> 00:14:05,120 to take on Donald Trump? And you know, it's all 214 00:14:05,159 --> 00:14:08,120 about twenty twenty eight, and it's all about where Democrats 215 00:14:08,360 --> 00:14:11,720 want their candidates to be. Should Democrats oppose Donald Trump more? 216 00:14:11,759 --> 00:14:15,799 Among Democrats? Look at this, eighty four percent, eighty four 217 00:14:15,879 --> 00:14:19,679 percent of Democrats nationwide say they want Democrats to take 218 00:14:19,679 --> 00:14:22,759 on Donald Trump more. This is not twenty seventeen anymore, 219 00:14:22,759 --> 00:14:26,000 where the majority of Democrats want to compromise with Donald Trump. No, 220 00:14:26,440 --> 00:14:28,799 they want a fighter with Donald Trump. 221 00:14:28,919 --> 00:14:29,480 Speaker 4: And at this. 222 00:14:29,399 --> 00:14:32,039 Speaker 3: Particular point, that is a big reason why Gavin Newsom, 223 00:14:32,080 --> 00:14:34,759 in my opinion, at least politically speaking, is leaning into 224 00:14:34,799 --> 00:14:36,840 this fight because he is thinking ahead to the future. 225 00:14:36,879 --> 00:14:39,000 He's thinking ahead to twenty twenty eight and with a 226 00:14:39,120 --> 00:14:41,360 vast majority. Look, you rarely get eighty four percent of 227 00:14:41,360 --> 00:14:44,000 Democrats degree and anything except for the dislike of Donald Trump. 228 00:14:44,120 --> 00:14:46,320 And that is what we see right now. They want 229 00:14:46,360 --> 00:14:48,759 that opposition of Donald Trump, and that is why Gavin 230 00:14:48,799 --> 00:14:51,159 Newsom seems to be more than willing to take. 231 00:14:51,080 --> 00:14:56,200 Speaker 5: Him on in the wildly too early, likely, unreliable. Look 232 00:14:56,240 --> 00:15:00,399 at where where things stand for the twenty twenty eight rays. 233 00:15:00,679 --> 00:15:02,960 Speaker 3: Yeah, this is so important to point out. Where is 234 00:15:03,000 --> 00:15:04,799 this race right now the top chances to be the 235 00:15:04,799 --> 00:15:07,159 twenty twenty eight nominee. Look, it's a clown car at 236 00:15:07,159 --> 00:15:10,240 this particular point, all these candidates swished together. But she'll 237 00:15:10,279 --> 00:15:12,399 notice that one name is ahead of the rest, and 238 00:15:12,440 --> 00:15:15,240 that's Gavin Newsom at twelve percent. You see a Kasya Cortes, ten, 239 00:15:15,399 --> 00:15:19,240 Buddha Judge ten, Shapiro six percent. But Gavin Newsom certainly 240 00:15:19,799 --> 00:15:21,919 is up there right now in certain terms of the 241 00:15:21,960 --> 00:15:24,919 candidates who are best composition to will get that twenty 242 00:15:24,960 --> 00:15:27,399 twenty eight nomination. And he knows that the best way 243 00:15:27,440 --> 00:15:30,240 to get this twenty twenty eight nomination is again to 244 00:15:30,279 --> 00:15:33,080 oppose Donald Trump. That eighty four percent of Democrats who 245 00:15:33,080 --> 00:15:35,440 want it, and at this particular point he's getting all 246 00:15:35,519 --> 00:15:38,120 that attention, as we've see in them Google searches up 247 00:15:38,200 --> 00:15:41,840 ninety seven hundred percent versus a week ago Newsom with 248 00:15:42,080 --> 00:15:42,799 Donald Trump. 249 00:15:43,159 --> 00:15:48,720 Speaker 1: So sadly, there is nothing anymore that is not related 250 00:15:48,759 --> 00:15:52,679 to politics. I know this is twenty twenty five, twenty 251 00:15:52,840 --> 00:15:55,879 twenty eight is three and a half years down the road, 252 00:15:56,320 --> 00:16:00,399 but they are already trying to figure out who going 253 00:16:00,440 --> 00:16:02,840 They're having trouble trying to find a Democrat leader, and 254 00:16:02,879 --> 00:16:06,240 they want somebody that will fight against Donald Trump. But again, 255 00:16:06,320 --> 00:16:08,559 if they try and make the race about vote for me, 256 00:16:08,679 --> 00:16:12,120 because I'm not Trump, that failed with Hillary, that failed 257 00:16:12,159 --> 00:16:15,799 with Biden, So they're gonna have to find something else. 258 00:16:15,840 --> 00:16:18,240 And the other thing about Gavin Newsom that the people 259 00:16:18,240 --> 00:16:22,799 of California know the rest of the country doesn't is 260 00:16:22,840 --> 00:16:27,080 how badly he has managed the state of California. And 261 00:16:27,120 --> 00:16:29,440 he's been a politician there for a long long time, 262 00:16:29,480 --> 00:16:32,159 working his way up to governor. But the state is 263 00:16:32,279 --> 00:16:37,519 financially upside down. They have the highest taxes in the nation, 264 00:16:37,679 --> 00:16:41,679 they have the highest gasoline prices because of state taxes 265 00:16:41,919 --> 00:16:47,399 in the nation. They've got homelessness that is beyond record setting. 266 00:16:47,639 --> 00:16:53,360 It's just one giant mess under his leadership, and the 267 00:16:53,399 --> 00:16:54,960 rest of the nation is going to find that out. 268 00:16:55,000 --> 00:16:57,919 I think some of the other Democrats that Harry mentioned 269 00:16:57,960 --> 00:17:02,080 probably will do much much better as the microscope starts 270 00:17:02,120 --> 00:17:04,920 to focus in on the Democrat candidates who want to 271 00:17:04,920 --> 00:17:09,279 be the next nominee. Tomorrow we get a hearing. The 272 00:17:09,440 --> 00:17:16,640 lawsuit that Gavenusom filed against Donald Trump will be heard tomorrow, 273 00:17:16,759 --> 00:17:18,160 at least a hearing. I don't know if we'll get 274 00:17:18,200 --> 00:17:21,920 a decision, but so far, the judge said to Gavin Newsom, 275 00:17:21,960 --> 00:17:24,279 just hold on. We're not going to stop the federal 276 00:17:24,279 --> 00:17:26,960 government from going about what they want to do, so 277 00:17:27,079 --> 00:17:31,079 we'll have a hearing on Thursday. Jonathan Turley, the Georgetown 278 00:17:31,160 --> 00:17:32,799 law professor, weighs in, I. 279 00:17:32,720 --> 00:17:35,880 Speaker 6: Think the important thing to remember is that the President's 280 00:17:35,920 --> 00:17:38,200 going to win at the end of the day because 281 00:17:38,200 --> 00:17:41,160 he has the authority and the resources to flood the 282 00:17:41,240 --> 00:17:44,000 zone with federal officers. He could do it in a 283 00:17:44,119 --> 00:17:47,519 number of ways, including the National Guard. He can even 284 00:17:47,599 --> 00:17:50,119 use the Insurrection Act, which is many of these California 285 00:17:50,160 --> 00:17:53,839 Democrats seem to be pushing him towards, which I don't understand. 286 00:17:54,559 --> 00:17:58,920 There seems to be a perfectly valid reason for calming 287 00:17:58,960 --> 00:18:01,599 the streets and getting security. You have a sheriff who 288 00:18:01,599 --> 00:18:04,480 said he was overwhelmed. You have National Guard that have 289 00:18:04,559 --> 00:18:07,400 been called out in other areas of the United States 290 00:18:07,440 --> 00:18:10,160 to make sure that these riots do not get out 291 00:18:10,160 --> 00:18:14,559 of control. Now, an issue with what's called Title ten 292 00:18:15,400 --> 00:18:18,240 is that it starts with a statement that the president 293 00:18:18,240 --> 00:18:20,400 has full authority to do this, and then it says 294 00:18:20,680 --> 00:18:24,279 the governor shall issue that order. And what the Trump 295 00:18:24,319 --> 00:18:27,440 administration is arguing is, look, that's a mandatory requirement. We 296 00:18:28,119 --> 00:18:32,079 can federalize the National Guard and you are to cooperate. 297 00:18:32,599 --> 00:18:35,240 Newsham is saying, no, we both have to sign off 298 00:18:35,279 --> 00:18:37,599 on it. The Court's going to have to decide. But 299 00:18:38,559 --> 00:18:40,599 this is going to happen. I mean, Trump has made 300 00:18:40,759 --> 00:18:43,400 very clear. President Trump has made very clear that he 301 00:18:43,519 --> 00:18:46,640 is going to do stabilized situation and flood the zone. 302 00:18:47,119 --> 00:18:49,319 Speaker 1: Them don't even understand why the troops are there. They 303 00:18:49,319 --> 00:18:51,240 think they're there to quell the riots. 304 00:18:52,079 --> 00:18:55,319 Speaker 6: Yeah, that's simply not true that they are being used 305 00:18:55,319 --> 00:18:58,640 to guard largely two buildings. But also the rhetoric here, 306 00:18:58,680 --> 00:19:00,920 of course, is going is getting out of control. You 307 00:19:00,920 --> 00:19:04,160 had a Democratic member, I believe yesterday you said, look, 308 00:19:04,319 --> 00:19:07,519 Ice has to simply retreat or these types of riots 309 00:19:07,519 --> 00:19:08,359 will continue. 310 00:19:08,599 --> 00:19:11,400 Speaker 4: Well, that's not going to happen. It's not exactly a. 311 00:19:13,599 --> 00:19:17,000 Speaker 6: Useful argument to say you have to stop enforcing federal 312 00:19:17,000 --> 00:19:19,640 immigration and then the riots will stop. It doesn't work 313 00:19:19,680 --> 00:19:22,079 that way. The federal government has a right to enforce 314 00:19:22,119 --> 00:19:23,319 federal immigration laws. 315 00:19:23,400 --> 00:19:24,240 Speaker 4: They're going to do that. 316 00:19:24,759 --> 00:19:29,880 Speaker 6: And the question is will local officials cooperate and also 317 00:19:30,079 --> 00:19:34,319 whether the governor will cooperate to try to stabilize this situation. 318 00:19:34,680 --> 00:19:37,880 But it's a non starter for Democratic members to say 319 00:19:38,200 --> 00:19:40,920 retreat or else. There is an argument to be made here. 320 00:19:40,960 --> 00:19:44,759 It depends how you read Title ten. But you know, 321 00:19:44,799 --> 00:19:47,519 there's a lot of confusion about what happened before that. 322 00:19:47,720 --> 00:19:51,400 President Trump just applied records that he didn't call, that 323 00:19:51,480 --> 00:19:53,279 he did in fact call Nusham. 324 00:19:54,200 --> 00:19:56,000 Speaker 4: Nusham made it very clear. 325 00:19:55,880 --> 00:19:58,039 Speaker 6: On air that he was not going to approve the 326 00:19:58,119 --> 00:20:02,680 use of the National Guard. The federal government has a 327 00:20:02,720 --> 00:20:04,359 separate responsibility. 328 00:20:04,160 --> 00:20:05,839 Speaker 4: They're not just pedestrians. 329 00:20:05,839 --> 00:20:08,079 Speaker 6: They don't have to just stand there and watch as 330 00:20:08,119 --> 00:20:11,440 another right occurs in Los Angeles. And this isn't hardly 331 00:20:11,480 --> 00:20:14,240 the first time that has happened. And so the question 332 00:20:14,319 --> 00:20:17,200 is when you act. And we saw in Minnesota with 333 00:20:17,640 --> 00:20:20,480 Governor Waltz that he waited too long to issue the 334 00:20:20,640 --> 00:20:22,519 order for the National Guard to go out there. He 335 00:20:22,559 --> 00:20:26,599 waited until massive damages had occurred and many people were injured. 336 00:20:27,039 --> 00:20:29,160 So this court's going to have a tough decision to 337 00:20:29,200 --> 00:20:32,680 make going forward. No court likes to be in this position, 338 00:20:33,039 --> 00:20:36,000 but generally the President of United States has this authority, 339 00:20:36,839 --> 00:20:41,000 and more importantly, he most certainly can bring federal resources 340 00:20:41,039 --> 00:20:41,839 into that city. 341 00:20:42,079 --> 00:20:45,119 Speaker 1: Yes, that hearing is tomorrow. We'll find out if the 342 00:20:45,200 --> 00:20:49,240 judge makes a ruling, and then one more for Wayne 343 00:20:49,279 --> 00:20:54,519 in on all of this. Michael Schellenberger is an independent journalist. 344 00:20:54,119 --> 00:20:57,920 He is an author. He's a professor at the University 345 00:20:57,960 --> 00:21:01,599 of Austin serves as the chair of the Politics, Censorship 346 00:21:01,640 --> 00:21:04,839 and Free Speech Department. He was the guy, one of 347 00:21:04,880 --> 00:21:08,440 the two guys that Musk brought in after he bought 348 00:21:08,480 --> 00:21:10,920 Twitter to go through the files to find out if 349 00:21:10,920 --> 00:21:13,559 there was any shenanigans, and they found all of the 350 00:21:13,599 --> 00:21:19,960 government censorship for conservative speech at Twitter. He was a 351 00:21:20,000 --> 00:21:22,920 big environment he still is a big environmentalist. He was 352 00:21:23,759 --> 00:21:27,119 active with Greenpeace. So he's been on the left side, 353 00:21:27,240 --> 00:21:29,559 he's been on the right side. That's why he says 354 00:21:29,880 --> 00:21:33,440 he's an independent journalist. This is his take on what's 355 00:21:33,480 --> 00:21:34,400 going on in LA. 356 00:21:35,000 --> 00:21:38,359 Speaker 7: I mean, look, I think the president is enforcing the law. 357 00:21:38,519 --> 00:21:41,039 You know, this is not that different from when the 358 00:21:41,079 --> 00:21:44,960 federal government moved to desegregate the South, and you had 359 00:21:44,960 --> 00:21:50,960 many Southern states in the sixties that resisted those actions. 360 00:21:51,079 --> 00:21:53,960 And you know, California is a pretty lawless place. I mean, 361 00:21:54,000 --> 00:21:57,440 we don't enforce many laws against public camping. That's why 362 00:21:57,440 --> 00:22:00,400 we have a homeless problem, open air drug dealing. You 363 00:22:00,400 --> 00:22:04,480 have a governor in Gavin Newsom, who cided against legislation 364 00:22:04,920 --> 00:22:08,599 ballot initiative that past last November with seventy percent support 365 00:22:09,079 --> 00:22:14,279 to crack down on fentanyl drug dealing. Since then, the 366 00:22:14,319 --> 00:22:18,920 governor has taken action to oppose enforcing that law. So 367 00:22:18,960 --> 00:22:21,480 we don't really have that law enforced right now. And 368 00:22:22,079 --> 00:22:25,680 you have a situation in LA where they've continually underfunded 369 00:22:25,680 --> 00:22:29,480 the police. Most people don't realize Los Angeles has almost 370 00:22:29,519 --> 00:22:32,960 half as many police officers per capita as New York City. 371 00:22:33,119 --> 00:22:36,440 So you've already got a very lawless California. And I 372 00:22:36,440 --> 00:22:39,720 think a lot of people are welcoming this kind of 373 00:22:39,759 --> 00:22:40,359 strong action. 374 00:22:41,559 --> 00:22:44,119 Speaker 1: And this is the clip from yesterday that we played 375 00:22:44,119 --> 00:22:48,240 for you. Harry Enton over on CNN talking about the 376 00:22:48,319 --> 00:22:49,440 support for the president. 377 00:22:50,400 --> 00:22:53,920 Speaker 3: Immigrant citizens, immigrant voters form ball and voters have gone 378 00:22:54,000 --> 00:22:57,240 tremendously to the right on this issue in twenty twenty 379 00:22:57,279 --> 00:22:59,119 four and twenty twenty five versus where they were in 380 00:22:59,119 --> 00:23:03,279 twenty twenty. That shift a forty point shift to the 381 00:23:03,359 --> 00:23:06,799 right among immigrant voters. The group of voters who became 382 00:23:06,880 --> 00:23:11,200 more hawkish on immigration were in fact immigrants themselves. Immigrants 383 00:23:11,319 --> 00:23:14,119 were registered to vote in this country. 384 00:23:14,720 --> 00:23:17,240 Speaker 7: Yeah, and we probably shouldn't be surprised that people that 385 00:23:17,279 --> 00:23:20,240 are here legally, immigrants that are here legally went through 386 00:23:20,279 --> 00:23:23,640 the difficulty of that process harbor a lot of anger 387 00:23:23,680 --> 00:23:26,799 and resentment of the folks that came here illegally, you know. 388 00:23:26,839 --> 00:23:28,839 I mean, I agree, I don't think there's any need 389 00:23:28,880 --> 00:23:32,920 for the Marines, for example, national Guard should be sufficient. 390 00:23:33,440 --> 00:23:35,759 But I think it's important to remember that the violence 391 00:23:35,759 --> 00:23:38,440 broke out in Los Angeles before the National Guard had 392 00:23:38,519 --> 00:23:42,200 been deployed. The governor had not called out the National 393 00:23:42,200 --> 00:23:45,200 Guard soon enough. He also failed to call the National 394 00:23:45,240 --> 00:23:46,359 Guards soon enough to deal with. 395 00:23:46,359 --> 00:23:47,319 Speaker 8: The LA fires. 396 00:23:48,160 --> 00:23:50,680 Speaker 7: These are folks that, as you know, your reporter mentioned before, 397 00:23:50,759 --> 00:23:53,799 there actually have been in the business of funding these 398 00:23:54,000 --> 00:23:57,000 very radical left groups. I mean, I think democrats outside 399 00:23:57,039 --> 00:24:01,039 of California don't realize just how radical the Democrats in 400 00:24:01,079 --> 00:24:04,839 California have been. I mean, they're openly you know, they 401 00:24:04,880 --> 00:24:08,599 really did not want to condemn the violence and the protesters. 402 00:24:08,640 --> 00:24:10,880 For a long time they insisted that there wasn't any 403 00:24:10,920 --> 00:24:13,559 need for federal help when as we saw, people are 404 00:24:13,599 --> 00:24:17,279 firing mortar fireworks at police officers, engage in all sorts 405 00:24:17,279 --> 00:24:20,039 of violence. So, you know, I think that when the 406 00:24:20,119 --> 00:24:23,960 dust settles, people are going to realize that we need 407 00:24:24,000 --> 00:24:27,960 a significant, you know, increase of law enforcement in California 408 00:24:28,079 --> 00:24:31,079 across the board, and certainly if the federal government is 409 00:24:31,119 --> 00:24:32,960 going to do what President Trump was elected to do, 410 00:24:33,039 --> 00:24:35,359 they're going to need that backup from the National Guard. 411 00:24:35,880 --> 00:24:38,680 Speaker 1: It really does stem back to the days of COVID 412 00:24:38,839 --> 00:24:43,319 and the defund the police movement after George Floyd. And 413 00:24:43,400 --> 00:24:47,000 that's what California did. They defunded the police and they 414 00:24:47,039 --> 00:24:51,640 are way understaffed, not only by normal metrics, but from 415 00:24:51,680 --> 00:24:54,119 what they used to have in the past. When all 416 00:24:54,160 --> 00:24:56,799 of a sudden done this basically is boiling down to 417 00:24:57,279 --> 00:25:00,799 a political event. I know it didn't start that way. 418 00:25:00,839 --> 00:25:04,440 But it certainly is there now, and so it's all 419 00:25:04,480 --> 00:25:07,920 great for television. They have the riots, they have the 420 00:25:07,960 --> 00:25:11,759 police cars, they have the police with their batons out. 421 00:25:12,240 --> 00:25:16,920 But Kate Bettenfield is a long time Democrat spokeswomen, She's 422 00:25:17,079 --> 00:25:21,079 very good at spinning for the Democrats, and listen to 423 00:25:21,119 --> 00:25:25,599 her on this, she's basically calling out the fact that 424 00:25:25,640 --> 00:25:30,200 this is Gavin Newsom trying to set up his future 425 00:25:30,920 --> 00:25:33,799 well to make a run a nominee for the Democrats. 426 00:25:34,319 --> 00:25:37,680 Speaker 9: Yeah, I think he's using this moment to channel some 427 00:25:37,839 --> 00:25:41,279 of the energy that they're a faction of the Democratic 428 00:25:41,319 --> 00:25:44,000 base wants to see from Democratic leaders. I think this 429 00:25:44,160 --> 00:25:47,480 is the kind of thing that people who feel frustrated 430 00:25:47,519 --> 00:25:49,880 that the Democrats are not taking on Trump more directly, 431 00:25:49,920 --> 00:25:52,200 this is exactly the kind of thing they want to 432 00:25:52,240 --> 00:25:55,039 see now. I think the question here, though more broadly 433 00:25:55,079 --> 00:25:58,880 for Democrats politically, is is this an effective message? I think, 434 00:25:59,160 --> 00:26:01,240 at the end of the day, what is you know? 435 00:26:01,279 --> 00:26:05,200 We know that the larger argument about Trump's lawlessness, about 436 00:26:05,240 --> 00:26:08,559 abuse of power, it can resonate. I thought it was 437 00:26:08,640 --> 00:26:12,039 very effective the way he called out Trump's hypocrisy around 438 00:26:12,079 --> 00:26:15,640 protecting law enforcement in January sixth, but we also know 439 00:26:15,839 --> 00:26:18,720 from the election that we just saw transpire in twenty 440 00:26:18,759 --> 00:26:22,680 twenty four that this argument about democracy, it doesn't hold 441 00:26:22,720 --> 00:26:25,759 the kind of urgency in people's lives across the country 442 00:26:26,240 --> 00:26:28,359 that it does for some who are the kind of 443 00:26:28,440 --> 00:26:31,680 most vocal, you know, champions the Democratic Party. And I 444 00:26:31,720 --> 00:26:34,359 think Democrats have to reconcile that. So, you know, when 445 00:26:34,400 --> 00:26:37,920 Gavin Newsom has an opportunity to command national attention as 446 00:26:37,920 --> 00:26:39,880 he does right now and to take on Trump directly, 447 00:26:40,200 --> 00:26:42,920 you know there is an opportunity there to go back 448 00:26:42,920 --> 00:26:45,240 to the economy, to go back to what people across 449 00:26:45,279 --> 00:26:46,720 the country are feeling in their day. 450 00:26:46,559 --> 00:26:47,200 Speaker 4: To day lives. 451 00:26:47,200 --> 00:26:50,920 Speaker 9: And I think that is that is the challenge from 452 00:26:50,960 --> 00:26:55,039 a political messaging standpoint that Democrats have to reconcile here 453 00:26:55,079 --> 00:26:56,279 and find a way forward on. 454 00:26:56,759 --> 00:26:58,640 Speaker 1: And I don't know what Gavin Newsom is going to 455 00:26:58,680 --> 00:27:01,119 do about some sort of that can gnomic speech because 456 00:27:01,920 --> 00:27:05,799 he's been in charge of a disaster economically in California. 457 00:27:06,519 --> 00:27:11,839 Speaking of the economy today, we got our inflation numbers 458 00:27:11,880 --> 00:27:18,920 out for last month, and well it's it's not where 459 00:27:18,960 --> 00:27:21,200 the Fed wants it to be, but inflation was up 460 00:27:21,240 --> 00:27:24,359 one tenth of one percent so you can barely see that, 461 00:27:24,880 --> 00:27:28,240 but that's a year over year two point four percent 462 00:27:28,359 --> 00:27:31,480 above last year's prices. Take out food and energy, you 463 00:27:31,519 --> 00:27:34,039 get to the core rate that was up two point 464 00:27:34,119 --> 00:27:38,480 eight percent. So it's still not down to what the 465 00:27:38,519 --> 00:27:42,960 Fed wants to be down to two percent flat. It's close, 466 00:27:43,519 --> 00:27:46,079 but it means prices are still going up. They're just 467 00:27:46,160 --> 00:27:50,759 going up at a slower rate than they were before. 468 00:27:51,200 --> 00:27:55,799 The other part about this number is where is the 469 00:27:55,920 --> 00:28:01,119 impact from the tariffs? And you have to get a 470 00:28:01,160 --> 00:28:04,319 microscope out to find some of the prices that have 471 00:28:04,480 --> 00:28:08,519 had big jumps. Let me pull up the Bureau of 472 00:28:08,559 --> 00:28:13,039 Labor Statistics, say they're showing the big drop. What pulls 473 00:28:13,039 --> 00:28:17,359 this number down is energy gas prices. Gas prices down 474 00:28:17,400 --> 00:28:21,960 twelve percent according to the Bureau of Labor Statistics versus 475 00:28:22,079 --> 00:28:26,279 a year ago. Energy services down eight percent. But then 476 00:28:26,319 --> 00:28:31,160 you look at what's this line fifteen utilities. Do you 477 00:28:31,200 --> 00:28:34,079 have a utility? Do you pay for gas, electric or whatever? 478 00:28:34,119 --> 00:28:37,680 It might be up fifteen percent in the year over 479 00:28:37,799 --> 00:28:41,319 year numbers. So some things are way up, some things 480 00:28:41,319 --> 00:28:46,319 are way down, but overall, inflation isn't seeing the impact 481 00:28:46,480 --> 00:28:49,759 of the tariffs yet. And I don't know. I presume 482 00:28:49,799 --> 00:28:53,599 we will. I mean, there's seventy billion dollars worth of 483 00:28:53,880 --> 00:28:58,400 tariffs collected and that money has to be passed on 484 00:28:58,559 --> 00:29:04,519 to somebody somewhere, retailer, the customer. So it's everybody keeps 485 00:29:04,559 --> 00:29:07,319 waiting in the economic world for the tariff impacts to hit, 486 00:29:07,920 --> 00:29:12,680 and they may not. They haven't asked of yet to 487 00:29:12,720 --> 00:29:16,519 any significance. And we'll see if they can work this 488 00:29:16,720 --> 00:29:20,160 deal out to where we don't have these tariffs anywhere. 489 00:29:20,200 --> 00:29:21,960 I would love to get rid of those. And speaking 490 00:29:22,000 --> 00:29:25,160 of that, the big talks in London between the US 491 00:29:25,200 --> 00:29:29,079 and China, Howard Lutnik was leading it as the Commerce Secretary. 492 00:29:29,519 --> 00:29:35,599 They spent Monday all day. They spent well twenty hours 493 00:29:35,599 --> 00:29:40,119 in total, twelve hours yesterday that the Chinese Vice Premier 494 00:29:40,160 --> 00:29:44,400 and Howard Lutnik and the team. We're talking about the 495 00:29:44,559 --> 00:29:49,160 agreement between the US and China, and when you look 496 00:29:49,240 --> 00:29:56,240 at it, I'm not sure if there's a real deals. 497 00:29:56,279 --> 00:29:58,960 The President put out a tweet on true social earlier 498 00:29:59,000 --> 00:30:03,880 today saying that the deal is done, done deal, except 499 00:30:03,920 --> 00:30:06,559 for it needs to be approved by the President himself 500 00:30:06,599 --> 00:30:11,160 and by the President of China. I'm not so sure 501 00:30:11,480 --> 00:30:15,279 it's much of a deal other than simply just a framework. 502 00:30:16,519 --> 00:30:18,599 A guy who knows his stuff backwards and forwards, as 503 00:30:18,680 --> 00:30:23,759 Derek scissors with the American Enterprise Institute, and that's all 504 00:30:23,799 --> 00:30:26,759 he does. He's a senior guy over at the AI, 505 00:30:27,319 --> 00:30:31,319 and that's what he follows, is about international trade. This 506 00:30:31,359 --> 00:30:35,079 is his reaction to this announcement after twenty hours of 507 00:30:35,160 --> 00:30:35,960 talks in London. 508 00:30:36,559 --> 00:30:38,759 Speaker 8: Does a lot of double talk being issued? 509 00:30:38,839 --> 00:30:42,319 Speaker 10: Now the President says it's a done deal, but it 510 00:30:42,359 --> 00:30:46,160 has to be reviewed by who he's the president, and 511 00:30:46,480 --> 00:30:48,880 I agree with you. We were told that we had 512 00:30:48,880 --> 00:30:51,079 a deal at the Geneva Framework, we never saw paper 513 00:30:51,119 --> 00:30:54,000 on that. Now again we have a deal reinforcing the 514 00:30:54,000 --> 00:30:58,000 Geneva Framework, and apparently Secretary Latinik doesn't want to say 515 00:30:58,079 --> 00:30:59,799 we're going to see any text showing what that deal 516 00:30:59,920 --> 00:31:03,160 is either. It looks very much like this is a 517 00:31:03,200 --> 00:31:07,559 temporary truce. The key event here is the Chinese saying. 518 00:31:07,319 --> 00:31:09,960 Speaker 8: It's six months of magnet exports. 519 00:31:10,119 --> 00:31:11,720 Speaker 10: That doesn't mean they're going to cut them off after 520 00:31:11,799 --> 00:31:14,400 six months. It means that they're not committed to this 521 00:31:14,480 --> 00:31:17,880 after six months, because they've already seen that the first 522 00:31:17,920 --> 00:31:20,200 deal didn't even last a month, and I think that's 523 00:31:20,200 --> 00:31:22,200 the way we have to understand it on the American side, 524 00:31:22,279 --> 00:31:24,000 even though the administration is being. 525 00:31:23,880 --> 00:31:26,640 Speaker 11: COI so who broke the original deal? 526 00:31:26,799 --> 00:31:27,000 Speaker 5: You know? 527 00:31:27,079 --> 00:31:29,400 Speaker 11: This really jumped to our attention when all of a 528 00:31:29,400 --> 00:31:32,039 sudden the automakers were saying, we're not getting access to 529 00:31:32,119 --> 00:31:34,799 rare earth magnets and those supplies had fallen by half. 530 00:31:35,359 --> 00:31:38,680 But that was in retaliation for what was it? The 531 00:31:38,720 --> 00:31:40,960 simple fact that we put tariffs on the Chinese? Again, 532 00:31:41,000 --> 00:31:43,599 this all came after the Geneva agreement, So why did 533 00:31:43,599 --> 00:31:45,920 they decide to restrict were earth magnets all of a sudden. 534 00:31:47,039 --> 00:31:49,519 Speaker 8: It's hard to know who broke the deal when there 535 00:31:49,559 --> 00:31:50,599 really wasn't a deal. 536 00:31:50,920 --> 00:31:53,640 Speaker 10: At some point, Secretary Vestend and President Trump were talking 537 00:31:53,680 --> 00:31:56,880 about major Chinese reforms and instead we get a six 538 00:31:56,920 --> 00:32:01,000 month moratorium on expar controls on magnets. I think what 539 00:32:01,119 --> 00:32:04,559 happened was the Geneva deal was about terrafs, and we 540 00:32:04,599 --> 00:32:06,559 got the tariff agreement and no one has broken it, 541 00:32:07,079 --> 00:32:10,240 but neither side thought it restricted their other behaviors. So 542 00:32:10,359 --> 00:32:13,279 the US has a lot of complaints about Chinese technology 543 00:32:13,319 --> 00:32:17,720 theft and coercive acquisition. We move forward on some export controls, 544 00:32:17,720 --> 00:32:20,480 and the Chinese said, oh, okay, you know new front 545 00:32:20,839 --> 00:32:21,880 in our trade conflict. 546 00:32:22,200 --> 00:32:24,599 Speaker 8: You have export controls. Now we have export controls. 547 00:32:24,759 --> 00:32:27,079 Speaker 10: So I don't think export controls were covered at Geneva 548 00:32:27,160 --> 00:32:28,720 and now they've had to add them. 549 00:32:29,079 --> 00:32:30,200 Speaker 8: I don't say this lightly. 550 00:32:30,279 --> 00:32:32,599 Speaker 10: Secretary Besson is out of his mind if he thinks 551 00:32:32,640 --> 00:32:35,359 we're going to reshape the Chinese economy. I don't think 552 00:32:35,400 --> 00:32:38,279 he actually thinks that. I think he would like it. 553 00:32:38,440 --> 00:32:40,480 I think he thinks there would be advantages to China 554 00:32:40,519 --> 00:32:42,240 for doing it. But I don't think he thinks Chi 555 00:32:42,279 --> 00:32:44,480 Jinping is going to wake up after twelve years of 556 00:32:44,519 --> 00:32:48,279 being you know, of of his culture, personality, dictatorship and 557 00:32:48,279 --> 00:32:49,480 say oh, I've been doing the wrong thing on the 558 00:32:49,519 --> 00:32:52,720 Chinese economy. So the US is going to have to 559 00:32:52,759 --> 00:32:56,160 proceed in fits and starts changing our policy and seeing 560 00:32:56,160 --> 00:32:59,240 what China's reaction is. That isn't very exciting. It's not 561 00:32:59,279 --> 00:33:01,279 something you want to enow to the press or tweet 562 00:33:01,319 --> 00:33:03,720 in all caps. But I think that's what we've seen. 563 00:33:03,799 --> 00:33:06,480 We jacked up tariffs, They jacked up tariffs. We have 564 00:33:06,519 --> 00:33:08,640 a higher tariff than we did in the first Rump administration, 565 00:33:08,720 --> 00:33:12,400 So we moved changed our policy there. Now we're messing 566 00:33:12,400 --> 00:33:14,680 with export controls, saying well, we're going to keep some 567 00:33:14,759 --> 00:33:17,920 export control changes that we've made, we're going to drop others. 568 00:33:18,240 --> 00:33:20,759 I think the US policy is incremental. I think that's 569 00:33:20,759 --> 00:33:22,920 what it has to be. I think the idea that 570 00:33:22,920 --> 00:33:25,759 we're going to get some big change in China is crazy. 571 00:33:26,279 --> 00:33:29,359 Speaker 11: So that all that said, they have achieved correct me 572 00:33:29,400 --> 00:33:31,920 if I'm wrong. Fifty five percent tariff right on China, 573 00:33:32,000 --> 00:33:34,000 which a lot of people, going back to the campaign 574 00:33:34,039 --> 00:33:36,319 trail and so forth, basically Forecaster said, you know, we 575 00:33:36,319 --> 00:33:38,480 think tariffs will probablyettle around sixty percent, and at the 576 00:33:38,480 --> 00:33:40,319 time that seemed extremely high. 577 00:33:40,640 --> 00:33:41,720 Speaker 8: Now it seems low. 578 00:33:42,359 --> 00:33:45,400 Speaker 11: Where where does a fifty five percent tariff if it's sticks, 579 00:33:45,519 --> 00:33:48,160 which Latinix said is not going to change now, is 580 00:33:48,200 --> 00:33:50,640 that enough itself to kind of prod the Chinese economy 581 00:33:50,640 --> 00:33:53,200 in a different direction or in the US economy as well. 582 00:33:54,119 --> 00:33:57,000 Speaker 10: No, the fifty five percent is the top line for 583 00:33:57,160 --> 00:33:59,640 US goods. So the maximum tariff charge of fifty five 584 00:33:59,640 --> 00:34:03,400 percent a USTR career, I think he US a forty 585 00:34:03,480 --> 00:34:06,319 nine percent figure. That's the average tariff. There are a 586 00:34:06,319 --> 00:34:10,000 bunch of exceptions in there. We could add more exceptions 587 00:34:10,000 --> 00:34:11,840 and keep the fifty five percent top line rate. 588 00:34:11,880 --> 00:34:14,599 Speaker 8: That is very much something that President Trump might be 589 00:34:14,679 --> 00:34:15,239 minded to do. 590 00:34:15,760 --> 00:34:18,920 Speaker 10: We have done very little to nothing public and maybe 591 00:34:18,960 --> 00:34:22,960 being done privately on transshipment. So Chinese exports to India 592 00:34:23,000 --> 00:34:25,480 and Ossian and a bunch of other countries are increasing, 593 00:34:25,800 --> 00:34:27,280 and some of those goods are coming. 594 00:34:27,039 --> 00:34:28,159 Speaker 8: To the United States. 595 00:34:28,440 --> 00:34:30,960 Speaker 10: We have a higher tariff rate. It doesn't mean nothing. 596 00:34:30,960 --> 00:34:33,599 It means something, but it is not nearly enough to 597 00:34:33,679 --> 00:34:35,440 change the direction of Chinese policy. 598 00:34:35,760 --> 00:34:37,920 Speaker 8: And I think when we tried to use tariff's. 599 00:34:37,559 --> 00:34:40,599 Speaker 10: Alone, it didn't work. So I don't know that tariffs 600 00:34:40,639 --> 00:34:43,039 will come down. We may get more exclusions. I do 601 00:34:43,159 --> 00:34:45,599 know that China is going to remain the same kind 602 00:34:45,599 --> 00:34:47,079 of poor partner that it has been. 603 00:34:47,679 --> 00:34:53,519 Speaker 1: So essentially, there is an agreement to a framework. It's 604 00:34:53,599 --> 00:34:57,719 kind of an agreement to agree to the agreement that 605 00:34:57,760 --> 00:35:00,239 we had from Geneva a month ago that ever body 606 00:35:00,280 --> 00:35:03,599 seems to have walked away from the only deal they have. 607 00:35:03,760 --> 00:35:05,679 This is what the President said, is that we are 608 00:35:05,719 --> 00:35:08,639 going to have continue to have fifty five percent tariff 609 00:35:09,039 --> 00:35:12,599 on products coming from China. That's the ten percent universal 610 00:35:12,639 --> 00:35:17,719 tariff plus twenty percent tariff for China sending fentanyl, and 611 00:35:17,760 --> 00:35:21,000 then a twenty five percent tariff on steel and aluminum. 612 00:35:21,320 --> 00:35:24,679 So fifty five percent is the max, but there's probably 613 00:35:24,679 --> 00:35:28,239 more like ten or twenty percent numbers for most products. 614 00:35:28,519 --> 00:35:32,199 The rare earth materials was the big deal. Automaker's jet 615 00:35:32,239 --> 00:35:36,599 engines saying help China cut it all off, and they 616 00:35:36,599 --> 00:35:38,599 were saying, we're running out of it. We can't make 617 00:35:38,639 --> 00:35:43,480 cars or jet engines without that. So China has agreed 618 00:35:43,519 --> 00:35:46,000 in this meeting in the last two days to a 619 00:35:46,119 --> 00:35:51,519 six month moratorium well on producing the rare earth and 620 00:35:51,559 --> 00:35:55,920 sending it to the United States. We have accused China 621 00:35:56,000 --> 00:35:59,960 of stalling on those exports, and Trump officials have angered 622 00:36:00,199 --> 00:36:04,519 the Beijing folks with new controls on chip design software, 623 00:36:05,280 --> 00:36:09,840 and so that's been lifted where they're now going to 624 00:36:09,880 --> 00:36:13,039 be able to China will be able to get some 625 00:36:13,159 --> 00:36:16,679 high tech chips, plus they will get jet engines that 626 00:36:16,679 --> 00:36:20,880 they've been asking for. Plus they will also get student 627 00:36:21,000 --> 00:36:25,400 visas for Chinese students that we're going to agree. So 628 00:36:25,480 --> 00:36:30,519 this is really about chips versus rare earth. Nothing else 629 00:36:30,599 --> 00:36:34,719 is a big at those two topics, but basically, they 630 00:36:34,800 --> 00:36:37,440 just agreed to the agreement that they made in Geneva 631 00:36:37,519 --> 00:36:41,519 a month ago, both accusing each other renegging on it, 632 00:36:42,119 --> 00:36:45,360 and now we wait to see if everybody will behave 633 00:36:45,760 --> 00:36:49,119 and if we can reduce even these fifty five percent 634 00:36:49,239 --> 00:36:53,079 tariffs and whatever they have on us thirty percent. I 635 00:36:53,119 --> 00:36:56,719 think it is before we get these tariffs. I would 636 00:36:56,760 --> 00:36:59,400 like to see them just absolutely gone, but that's not 637 00:36:59,440 --> 00:37:02,280 going to happen anytime soon. So that's what we have 638 00:37:02,400 --> 00:37:05,199 for today. When all was said and done, the market 639 00:37:05,239 --> 00:37:10,199 today barely moved. The Dow was higher. It finished down 640 00:37:10,480 --> 00:37:13,840 one point, the forty two thousand and eight sixty five, 641 00:37:14,079 --> 00:37:19,039 the SMP down sixteen, the Nasdaq down ninety nine. Gold 642 00:37:19,039 --> 00:37:21,960 went up twenty four dollars to thirty three sixty seven, 643 00:37:22,039 --> 00:37:25,599 and oil pretty big boost there, three bucks higher, up 644 00:37:25,599 --> 00:37:29,440 to sixty eight dollars now for one barrel of oil. 645 00:37:30,199 --> 00:37:34,159 That's it for today. Thank you for coming by. We'll 646 00:37:34,159 --> 00:37:36,159 try this again tomorrow. Hope to see you then,