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Trump Says Iran Violated Ceasefire With Hormuz Drone Attack · Balance of Power

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  Speaker 2: So it does seem to be a sleepy Friday overall, though,
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  Speaker 2: you are seeing some material action in the oil market,
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  Speaker 2: as Joe and I and Amy were mentioning, with prices lowered,
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  Speaker 2: despite the fact that the President is accusing Aaron and
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  Speaker 2: violating the ceasefire in the Street of Foor Moves, as
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  Speaker 2: he says, the US shot down three one way attack drones,
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  Speaker 2: but of course a fourth hit a ship that was
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  Speaker 2: still able to continue on, but nonetheless reignited some concern
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  Speaker 2: yesterday over the ability for ships to transit the Straight
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  Speaker 2: of four Moves after it, of course had been declared
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  Speaker 2: open via this memorandum of understanding. And we still have
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  Speaker 2: major outstanding questions as well, Joe about whether or not
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  Speaker 2: fees or poles are going to be imposed by Iran
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  Speaker 2: and Ohman. The different sides are saying different things about that.
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  Speaker 3: In particular, that's for sure.
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  Speaker 4: Fees the word that Iran likes to use here service fees,
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  Speaker 4: I think is what we're calling our administration. Yeah, it's
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  Speaker 4: like when you check into the hotel who made that
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  Speaker 4: reference to get the SPA charge, whether you use it
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  Speaker 4: or not. But there are three routes that are emerging
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  Speaker 4: here in the Strait, and the US is trying to
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  Speaker 4: keep its own under control here. But this is an
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  Speaker 4: indefinite presence of our military, it seems, in that part
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  Speaker 4: of the world.
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  Speaker 2: Yeah, and for how long is that going to be
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  Speaker 2: deemed sustainable when, of course the Pentagon is already requesting
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  Speaker 2: tens of billions of dollars more in funding from Congress
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  Speaker 2: for what has already taken place in the Middle East
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  Speaker 2: as we question the future.
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  Speaker 3: I've heard about this from President Trump.
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  Speaker 4: He was speaking at the Rose Garden Club just last
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  Speaker 4: evening about the status of talkses before the Truth Post
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  Speaker 4: earlier today.
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  Speaker 5: Listen, they want to make a deal with us very badly,
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  Speaker 5: and we probably will, I think we will. But the
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  Speaker 5: Strait is open yesterday, look at nineteen.
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  Speaker 6: Million barrels of oil.
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  Speaker 5: That's the most in the history of the Strait, and
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  Speaker 5: the oil prices are dropping like a rock. And you know,
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  Speaker 5: as goes oil, so goes everything else.
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  Speaker 4: That's the idea, and oil is lower sixty nine dollars
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  Speaker 4: for WTI. And that's despite the news here with the
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  Speaker 4: presidents saying, quote, this is a foolish violation of our
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  Speaker 4: ceasefire agreement. Bloomberg Washington correspondent Tyler Kendall joins us right
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  Speaker 4: now in studio here in Washington with the latest. Tyler,
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  Speaker 4: is this a one off posts or could there be
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  Speaker 4: a change here in the strait.
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  Speaker 7: Well, we're going to have to see how it evolves,
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  Speaker 7: because this does mark the first such attack that we've
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  Speaker 7: seen since the Memorandum of understanding was signed. President Trump
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  Speaker 7: giving us a little bit more details here beyond what
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  Speaker 7: we had been tracking last night when this news broke.
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  Speaker 7: He says that the US was able to intercept three
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  Speaker 7: out of four of these drones, but that one ultimately
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  Speaker 7: hit this vessel. Though damage was sustained, it was still
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  Speaker 7: able to continue transiting through. But you hit on a
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  Speaker 7: really key point, Joe, that I've been following closely here,
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  Speaker 7: which is that this attack happened in one of those
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  Speaker 7: roots that's considered to be the safer route. It's that
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  Speaker 7: corridor that hugs the Oman coast, where the US really
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  Speaker 7: has some leverage and control over, So in some regard,
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  Speaker 7: this has perhaps undermined some of the confidence. Bloomberg News
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  Speaker 7: was able to review a message that one major oil
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  Speaker 7: company did send its vessels to say hold put for now.
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  Speaker 7: We saw the UN's global shipper say that they're going
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  Speaker 7: to for now suspend evacuation operations in the.
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  Speaker 6: Wake of this.
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  Speaker 7: But still the data analyzed is showing us that it's
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  Speaker 7: not really having that big of an impact. Ships are
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  Speaker 7: still making their way ultimately through the Strait.
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  Speaker 2: Well, and of course there's the question on whether in
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  Speaker 2: order to guarantee safe transit through the Straight, ships eventually
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  Speaker 2: are going to have to pay. Bloomberg is reporting that
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  Speaker 2: Oman is telling European officials that there's no way of
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  Speaker 2: going back to the pre war status quo in the
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  Speaker 2: Strait of Horror News, and that transiting ships may have
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  Speaker 2: to be charged some fees. You questioned the President about
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  Speaker 2: this directly at the G seven and he made it
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  Speaker 2: pretty clear he did not want fees associated. The Secretary
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  Speaker 2: of State has said the same thing. So where's the
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  Speaker 2: disconnect here? I was going to bring that hut up.
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  Speaker 7: Just last night we had Mark Rubio reiterating to reporters
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  Speaker 7: that that's not going to be ultimately an option, but
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  Speaker 7: it's very clear that it's top of mind for Iran.
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  Speaker 7: Earlier this week it really came to the forefront because
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  Speaker 7: we saw Iran release this joint statement with Oman saying
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  Speaker 7: that they were working out some sort of fee structure,
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  Speaker 7: navigational fees, environmental fees along those lines. I think the
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  Speaker 7: Secretary of State said ultimately it would be semantics in
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  Speaker 7: his words, but any such charging of passage wouldn't be acceptable.
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  Speaker 7: But pair that with the Wall Street Journal report that
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  Speaker 7: I know we spoke yesterday about on this program, that
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  Speaker 7: Iran's estimating it could bring in forty billion dollars worth
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  Speaker 7: of revenue each year. But not only that, they're potentially
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  Speaker 7: going to pitch this to other countries in the Middle East,
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  Speaker 7: maybe even China, to share in on the costs but
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  Speaker 7: also the profit of operating such a system. It leaves
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  Speaker 7: a lot of big open questions. Maybe that's the most
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  Speaker 7: contentious point right now. But then also so as you
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  Speaker 7: both know, we're tracking very closely. Bresident Trump last night
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  Speaker 7: doubling down that unfrozen Iranian assets are going to go
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  Speaker 7: towards US farmers. That's the latest that we've also heard
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  Speaker 7: from Iran disputing that that's something on the table.
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  Speaker 3: Fascinating.
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  Speaker 4: Before we bring in the Congresswoman Tyler, what's going on
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  Speaker 4: with this latest tariff threat European countries discussing, he says
• 5:18
  Speaker 4: the imminent implementation of a digital services tax on American companies.
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  Speaker 3: To Kaylle's point, some already have this.
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  Speaker 4: Let this statement serve to represent any country imposing such
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  Speaker 4: attacks will immediately be met with a one hundred percent
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  Speaker 4: tariff on everything.
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  Speaker 3: On what grounds would that be made?
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  Speaker 7: If I could take an educated guest here, I would
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  Speaker 7: assume that the president is teeing up something under section
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  Speaker 7: three oh one. We know the administration actually already has
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  Speaker 7: investigations from the first Trump term under section three oh one,
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  Speaker 7: which is investigation into alleged unfair trade practices.
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  Speaker 6: And we've seen them before.
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  Speaker 7: Pull on investigations from the first Trump term and essentially
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  Speaker 7: repurpose them here. Typically these investigations take nine months, but
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  Speaker 7: they're able to essentially expedite that process if the work
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  Speaker 7: has already been done. Section three oh one is a
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  Speaker 7: very malleable tariff. I think it's fair to say it
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  Speaker 7: can go up to one hundred percent. There's no cap,
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  Speaker 7: and it also can be done indefinitely. You have to
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  Speaker 7: review it every four years, but would make sense maybe
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  Speaker 7: he's leaning towards that, whether or not this is a
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  Speaker 7: negotiating tactic. I mean you mentioned I was at the
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  Speaker 7: G seven last week. He said one hundred percent tariffs
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  Speaker 7: on French wine if France doesn't drop it quickly. I
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  Speaker 7: will add once we have seen a country drop it.
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  Speaker 7: That was Canada last year during the negotiations. They chose
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  Speaker 7: not to collect revenue. So wow, maybe it'll work all right.
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  Speaker 2: Well, I guess we'll see. We've seen one hundred percent
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  Speaker 2: tariff threatn before and they never actually became reality. So
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  Speaker 2: to some extent, we have to keep history in mind here.
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  Speaker 2: Bloomberg's Tyler Kendall, our Washington correspondent, Thank you very much.
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  Speaker 2: And for another perspective, now we turned a Democratic Congressman
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  Speaker 2: Madeleine Dean, who represents Pennsylvania's fourth district and serves on
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  Speaker 2: the House Foreign Affairs and Appropriations Committees. Congressman, welcome back
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  Speaker 2: to Balance of Power. I would love to begin with
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  Speaker 2: you on what we were just discussing with Tyler regarding
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  Speaker 2: the President accusing Aaron of violating the ceasefire in a
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  Speaker 2: way that he says was foolish.
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  Speaker 6: If this was a.
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  Speaker 2: Ceasefire violation, should the United States do something about it?
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  Speaker 8: Well, what I wish we had were diplomats actually negotiating
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  Speaker 8: the ceasefire. I'm sure by now everybody has read the
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  Speaker 8: fourteen point MoU and how weak it is, how clearly
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  Speaker 8: drafted by Iran and for Iran that it is. And
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  Speaker 8: it was only a memo to talk more, to negotiate more,
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  Speaker 8: And we do not have solid diplomats on the ground
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  Speaker 8: doing the work, the difficult, complex work of negotiating the seasfire.
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  Speaker 8: What we also see, and it was part of your
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  Speaker 8: last conversation, is just the chaos of this president, the
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  Speaker 8: whiplash that you can get from listening to him from
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  Speaker 8: one hour to the next, whether it is on signing
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  Speaker 8: bills that have been passed in a bipartisan way like
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  Speaker 8: the housing bill, or about the ceasefire in Iran. Think
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  Speaker 8: about it. This war that was named epic fury has
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  Speaker 8: actually been an epic failure.
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  Speaker 9: And I say that with no pleasure.
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  Speaker 8: Obviously, our men and women of the military have been exquisite,
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  Speaker 8: but we have lost thirteen members of the military, hundreds
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  Speaker 8: have been wounded. More than one hundred and fifty billion
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  Speaker 8: dollars at least has been expended. Our munitions are low.
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  Speaker 8: The presidents now asking for a supplemental even as he
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  Speaker 8: asks for more than a trillion dollars in a defense budget.
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  Speaker 9: The president's chaotic moves, whether it's.
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  Speaker 8: Domestic or it is international and a question of war
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  Speaker 8: and peace, frankly, have been very hard to follow and
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  Speaker 8: very hard to support. That's a serious problem for this country.
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  Speaker 4: You're on the Foreign Affairs Committee, as has been mentioned, Congresswoman,
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  Speaker 4: and I'm just wondering, what do you guys talk about,
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  Speaker 4: And is it Democrats in one circle and Republicans in
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  Speaker 4: another the stories that we keep hearing, or that you're
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  Speaker 4: not being briefed by the administration, that you didn't even
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  Speaker 4: see this MoU until it was already signed, or is
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  Speaker 4: it I don't say it until the Republicans together somehow
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  Speaker 4: because you're all living in the dark.
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  Speaker 8: I didn't see it until it was leaked and picked
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  Speaker 8: up by the press. We have not had a briefing
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  Speaker 8: from the administration. We haven't had a briefing on the
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  Speaker 8: on the war, on the so called epic fury, let alone,
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  Speaker 8: on what would be a cease fire and hopefully peace
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  Speaker 8: in the Middle East uh and and a restoration of
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  Speaker 8: some economic ability to recover the economy by this administration.
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  Speaker 9: After all, what is going on in my district.
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  Speaker 8: What my instituents care about are the issues of warren peace.
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  Speaker 9: They also care about the issues of costs.
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  Speaker 8: Everything the President has done has driven up costs. Originally
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  Speaker 8: with his reckless tariffs, and here you hear him threatening
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  Speaker 8: them again one hundred percent on you, one hundred percent
• 10:15
  Speaker 8: on you. But then his chaotic and inhumane immigration policy.
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  Speaker 8: I'd love to talk to you about my visits to
• 10:23
  Speaker 8: both dilly and the economic impact Dilley, Texas, and to
• 10:28
  Speaker 8: Moshannon in Pennsylvania. These for profit detention camps, some holding
• 10:34
  Speaker 8: children for months, terrorizing whole families.
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  Speaker 9: We have not been briefed. The President and his team
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  Speaker 9: have not briefed.
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  Speaker 8: US Secretary Haigseth has not come forward to either the
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  Speaker 8: Appropriations or the Foreign Affairs committees. This is an administration
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  Speaker 8: sadly out of its depth. Following an Emperor has no
• 10:59
  Speaker 8: Clothes has shown it over and over again, and it
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  Speaker 8: is very dangerous for our national security and extremely harmful
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  Speaker 8: to our economy.
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  Speaker 2: Well, you mentioned Secretary Hegseth not coming before the Appropriations Committee.
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  Speaker 2: We have seen a supplemental budget request handed down that
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  Speaker 2: includes almost seventy billion dollars for the Pentagon and much
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  Speaker 2: money for other things, including a Bola response and aid
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  Speaker 2: to farmers for example. What would the consequence be for
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  Speaker 2: our national security if the Pentagon doesn't need or doesn't
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  Speaker 2: get the funding it says it needs.
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  Speaker 8: Well, I'm looking at this list from the supplemental from
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  Speaker 8: the White House ask sixty seven billion for the war,
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  Speaker 8: one point four billion for a Bola, eleven billion for farmers,
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  Speaker 8: a billion for Penn station, and seven hundred and seventy
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  Speaker 8: million for Department of Energy security issues.
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  Speaker 9: What would it mean?
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  Speaker 8: How about they release the one hundred billion dollars I'm
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  Speaker 8: in touch with the defense industry, one hundred billion dollars
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  Speaker 8: from last year's big, beautiful bill. How about this administration
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  Speaker 8: doing its job appropriately in a straightforward fashion, even with
• 12:12
  Speaker 8: bills that I didn't approve of, but.
• 12:15
  Speaker 9: He got them signed into law.
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  Speaker 8: Why are they asking for a supplemental when they have
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  Speaker 8: not released one hundred billion dollars worth of defense spending from.
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  Speaker 9: His big, beautiful bill. And it's very jarring.
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  Speaker 8: Because, as you know, this week, we just marked up
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  Speaker 8: our final appropriations bill, the twelfth of twelve in the House,
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  Speaker 8: and it is the defense bill. For the first time
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  Speaker 8: in history, they have asked for more than a trillion
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  Speaker 8: dollars in defense spending. So why in God's name would
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  Speaker 8: we ever need another supplemental for this failed war.
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  Speaker 4: There are questions as an appropriator congresswoman about what's going
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  Speaker 4: to happen in September. There are questions about this defense
• 12:56
  Speaker 4: bill of Save America Act is attached to it. But
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  Speaker 4: what do you think about the narrative right now that
• 13:02
  Speaker 4: Chuck Schumer that possibly Hakim Jeffries, maybe yourself will not
• 13:08
  Speaker 4: be able to vote for a budget in time to
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  Speaker 4: fulfill our requirements in the next fiscal year, and we
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  Speaker 4: could have a shutdown ahead of the midterms.
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  Speaker 8: I hope we never have another shutdown. There is absolutely
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  Speaker 8: no reason for it. As appropriators have been doing our job.
• 13:25
  Speaker 8: The Senate needs to get doing theirs. Then the four
• 13:27
  Speaker 8: corners need to come together, but the administration has to
• 13:31
  Speaker 8: actually govern. And remember, we have a shutdown again, shutdown.
• 13:36
  Speaker 6: Is the wrong term.
• 13:38
  Speaker 8: The week collapsed underneath the chaotic behavior of the President
• 13:43
  Speaker 8: feeling to sign the housing bill and trying to attach
• 13:46
  Speaker 8: this falsely named Save America Bill a voter suppression bill,
• 13:51
  Speaker 8: and what happened with the Speaker of the House. He said,
• 13:54
  Speaker 8: send us all home early because he could not govern,
• 13:57
  Speaker 8: He could not get a rule pass so that legislation
• 14:02
  Speaker 8: could move forward. We should never have another shutdown, but
• 14:06
  Speaker 8: if we do, take a look at who's in power
• 14:09
  Speaker 8: in the presidency, Republicans in the House, Republicans in the Senate, Republicans,
• 14:15
  Speaker 8: and now we saw yesterday with some of the releases
• 14:19
  Speaker 8: of the Supreme Court decision, Republican appointed justices.
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  Speaker 9: They're in full control.
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  Speaker 8: They should be able to make sure we have a
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  Speaker 8: budget and no one suffers a shutdown.
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  Speaker 4: It's good to have you back, Congresswoman. Come see us
• 14:33
  Speaker 4: when you get back to Washington. From Pennsylvania's fourth district,
• 14:37
  Speaker 4: Democratic Congresswoman Madeleine Dean Hayley, we should know President actually
• 14:41
  Speaker 4: turn some fire on Republicans over this whole situation involving
• 14:45
  Speaker 4: the House on Truth socially said, House Republicans should unify,
• 14:47
  Speaker 4: stop voting down rules or threatening to do so, knowing
• 14:51
  Speaker 4: that there is a stoppage of all business on the
• 14:54
  Speaker 4: floor right now thanks to one Republican member.
• 14:56
  Speaker 2: Yeah, Congressman Anapauline Luna wants to see the s IT
• 15:00
  Speaker 2: Act on the Save America Act, so she's stopping action
• 15:04
  Speaker 2: on the floor of the House. Not sure that's going
• 15:06
  Speaker 2: to compel the Senate to do anything, but it certainly
• 15:08
  Speaker 2: makes the job of the Speaker much harder, which is
• 15:10
  Speaker 2: why he had to dispatch himself to the White House
• 15:12
  Speaker 2: yesterday to talk to Trump about it. Try to get
• 15:14
  Speaker 2: Trump to do a little public leaning on this particular number.
• 15:17
  Speaker 9: Perhaps.
• 15:18
  Speaker 4: Well, we're still here, Lee, We'll have a lot more
• 15:20
  Speaker 4: with our panel. They're here too, Rick and Janie. Next
• 15:22
  Speaker 4: only on Bloomberg. Stay with us on Balance of Power.
• 15:25
  Speaker 4: We'll have much more coming up after this.
• 15:30
  Speaker 1: You're listening to the Bloomberg Balance of Power podcasts. Catch
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• 15:49
  Speaker 4: The President upping the anti We got to figure out
• 15:52
  Speaker 4: how to get in this thing?
• 15:53
  Speaker 10: Right?
• 15:53
  Speaker 3: Can we get in one of these airplanes?
• 15:54
  Speaker 4: The President just posted on truth social that the fourth
• 15:58
  Speaker 4: of July air show, which was already scheduled, will be
• 16:01
  Speaker 4: the biggest by far in the history of the United
• 16:03
  Speaker 4: States of America. Hundreds of planes, he says, different type,
• 16:06
  Speaker 4: size of speeds will be on display. This is like
• 16:08
  Speaker 4: a ten hour from one in the afternoon eleven thirty
• 16:11
  Speaker 4: at night.
• 16:12
  Speaker 6: Uh.
• 16:15
  Speaker 4: I gotta see this as somebody who stops down for
• 16:18
  Speaker 4: air shows. Are we talking an air show here or
• 16:20
  Speaker 4: just a lot of flybys. There's a big difference. I
• 16:23
  Speaker 4: was lucky enough to fly with the Thunderbirds once in
• 16:26
  Speaker 4: an F sixteen out at Nellis Air Force Base broke
• 16:29
  Speaker 4: the sound barrier pulled nine. G's lost my lunch. I'm
• 16:31
  Speaker 4: not looking to do that again. Put me in a
• 16:33
  Speaker 4: big slow like a C one thirty or something. I
• 16:35
  Speaker 4: want to see the mall from up there. We'll got
• 16:39
  Speaker 4: a camera. You think Kaylee would go. She's probably got
• 16:42
  Speaker 4: a cookout.
• 16:44
  Speaker 3: You know.
• 16:45
  Speaker 4: We came in today on this Friday, thinking, gosh, maybe
• 16:47
  Speaker 4: maybe there are slow news days left. There's nothing going on.
• 16:53
  Speaker 4: Maybe we have some big think conversations with Rick and Jeanie.
• 16:58
  Speaker 4: But then, of course, as we walk in the studio,
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  Speaker 4: news breaks and today once again it was from the
• 17:03
  Speaker 4: President of the United States, and we're back to Iran.
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  Speaker 3: If you're just joining us. We talked to the admiral
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  Speaker 3: about this.
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  Speaker 4: It's an important development here as he accuses Iran of
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  Speaker 4: breaching the ceasefire. Iran shot at least for one way
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  Speaker 4: attack drones. He says, at ships traversing the Straight of
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  Speaker 4: Horror moves. One of them hit the upper deck, large,
• 17:23
  Speaker 4: very expensive cargo carrying ship. Damage was done. We knocked
• 17:26
  Speaker 4: out the three other drones. I'm skipping down here a
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  Speaker 4: little obviously. Quote this is a foolish violation of our
• 17:33
  Speaker 4: ceasefire agreement.
• 17:34
  Speaker 3: Unquote. What now?
• 17:36
  Speaker 4: Bloomberg Politics contributors Rick Davis and Jeanie Shanzano join. Rick
• 17:41
  Speaker 4: is back, our republican strategist and partner at Stone Court Capital.
• 17:43
  Speaker 4: Good to see my friend, and Jeanie is, of course,
• 17:46
  Speaker 4: our democratic analyst and democracy visiting fellow at Harvard Kennedy
• 17:50
  Speaker 4: School's Ash Center.
• 17:53
  Speaker 3: Rick, this isn't enough to go back to war over,
• 17:56
  Speaker 3: is it?
• 17:56
  Speaker 4: The Admiral A short time ago, Mark Montgomery suggested it
• 17:59
  Speaker 4: was not. But this is so delicate that I wonder
• 18:02
  Speaker 4: your thoughts on whether it could be different this time.
• 18:06
  Speaker 11: Yeah. I think all the pressure is to keep the
• 18:08
  Speaker 11: negotiations going on. All the pressure is to try and
• 18:11
  Speaker 11: keep the flow of oil coming out of the Gulf,
• 18:14
  Speaker 11: and there'll be a lot of willingness to look the
• 18:17
  Speaker 11: other way, to not overreact.
• 18:22
  Speaker 3: Sorry, Rick, go ahead, I'm sorry.
• 18:25
  Speaker 11: And so yeah, I think you know, when you look
• 18:27
  Speaker 11: at what the incentives are, I think you know, people
• 18:31
  Speaker 11: are going to look the other way. And even the
• 18:32
  Speaker 11: president's own comments sounded downright at ease with it. Oh yeah,
• 18:39
  Speaker 11: you know this happened. But we're not going to retaliate.
• 18:41
  Speaker 11: We're not gonna We're not going to blink. We don't
• 18:43
  Speaker 11: want that flow of oil to stop. So I think
• 18:45
  Speaker 11: we're in for a period of time where we're going
• 18:48
  Speaker 11: to have a lot of different obstacles to choose from
• 18:52
  Speaker 11: in the golf. You know, the Iranians are going to
• 18:54
  Speaker 11: constantly test our resolve, They'll test the resolve of other
• 18:58
  Speaker 11: allies in the region. And I think this administration says, look,
• 19:02
  Speaker 11: we got to push through.
• 19:03
  Speaker 3: We got sixty days to get a deal. Let's get
• 19:05
  Speaker 3: the deal done.
• 19:07
  Speaker 4: Sixty days, Genie, although Mark Montgomery so a little while ago,
• 19:10
  Speaker 4: you could have three or four of those sixty day
• 19:11
  Speaker 4: periods to get you past November, at which point the
• 19:13
  Speaker 4: presidents what did he say his decision making matrix.
• 19:17
  Speaker 3: I love it when military guys start with the.
• 19:20
  Speaker 4: Jargon like that things could feel different after November? Is
• 19:23
  Speaker 4: that right, Genie? You don't want to go to war
• 19:25
  Speaker 4: for the next couple of months. Maybe we do hit
• 19:28
  Speaker 4: a deal, but if we don't, we'll meet you in December.
• 19:31
  Speaker 3: What do you think?
• 19:34
  Speaker 12: I think that Donald Trump is not going to do much.
• 19:36
  Speaker 13: You know, oil, you were just talking about Joe downround
• 19:39
  Speaker 13: what sixty nine dollars. He's gonna abliviate, he's going to bluster,
• 19:43
  Speaker 13: he's gonna complain. But you're absolutely right, nothing he can
• 19:48
  Speaker 13: do before November.
• 19:49
  Speaker 12: And you know who knows that, Eran.
• 19:51
  Speaker 13: This is the same situation we've been in. They are
• 19:54
  Speaker 13: holding all the cards. Donald Trump is playing catch up.
• 19:57
  Speaker 13: And if you listen to Iran, what are they saying?
• 20:00
  Speaker 13: The ceasefire has been broken repeatedly, given what is going
• 20:03
  Speaker 13: on with hesblah and Israel in Lebanon. So Donald Trump,
• 20:07
  Speaker 13: we're going to hear a lot about these kinds of
• 20:09
  Speaker 13: statements frustration, but there's nothing he can do. The ceasefire
• 20:14
  Speaker 13: is fragile, and he's got no options now, and he
• 20:17
  Speaker 13: knows it to his credit, but to proceed forward and
• 20:20
  Speaker 13: try to get an agreement. And of course sixty days
• 20:23
  Speaker 13: isn't going to be enough. It's going to be a
• 20:25
  Speaker 13: number of sixty day periods, but certainly nothing pertaining to
• 20:30
  Speaker 13: like we saw in February before November.
• 20:34
  Speaker 4: Before we move on to something else, Rick, what do
• 20:36
  Speaker 4: you make of the market reaction or the lack of reaction?
• 20:40
  Speaker 3: This is pretty amazing.
• 20:41
  Speaker 4: I mean, I realized it's been a couple of months
• 20:42
  Speaker 4: of you know, on again, off again. The market just
• 20:44
  Speaker 4: doesn't seem to even care anymore. The President posts something
• 20:47
  Speaker 4: like this, you've got crude oil down four percent. We're
• 20:49
  Speaker 4: at sixty nine dollars a barrel. We were at sixty
• 20:52
  Speaker 4: seven before this thing started. Has Wall Street just moved on?
• 20:56
  Speaker 6: Well?
• 20:56
  Speaker 11: I think they feel like the commitment is there to
• 20:58
  Speaker 11: keep the flow of oil, and the President isn't disswaiting
• 21:02
  Speaker 11: them if he'd just said, hey, I'm bottling it up again,
• 21:05
  Speaker 11: because we've got to teacher Ana lesson I think you'd
• 21:07
  Speaker 11: have seen a different reaction, and that's the kind of
• 21:09
  Speaker 11: things he was saying and doing just a month ago.
• 21:12
  Speaker 11: So I think we've seen a sea change in policy.
• 21:15
  Speaker 11: Policy will dictate some of what Wall Street feels about this.
• 21:20
  Speaker 11: Before Wall Street thought we're in the middle of a
• 21:22
  Speaker 11: war and everything goes Now we're in the middle of
• 21:25
  Speaker 11: trying to make peace and stability should reign supreme. So
• 21:29
  Speaker 11: I can't imagine a scenario right now without all out
• 21:32
  Speaker 11: war breaking out again, which is in nobody's interest that
• 21:37
  Speaker 11: the markets don't sort of set this aside and say
• 21:39
  Speaker 11: call us when something really good or really bad happens.
• 21:43
  Speaker 4: Well, it's unclear when jd Vance is going to be
• 21:45
  Speaker 4: heading back overseas, assuming that stays in Switzerland or whatever
• 21:48
  Speaker 4: we do here. He's still the point man on negotiations.
• 21:51
  Speaker 4: We do not have a date or I think even
• 21:53
  Speaker 4: a suggestion that there'll be a second round of talks.
• 21:57
  Speaker 4: He is making news, however, about a very different topic,
• 22:02
  Speaker 4: and curious that he would pick this one to go
• 22:06
  Speaker 4: after Genie. Jd Vance spoke at the Richard Nixon Presidential
• 22:11
  Speaker 4: Library out in California. You've both probably been there. The
• 22:17
  Speaker 4: headlines that came from it, though, are fascinating. As I
• 22:19
  Speaker 4: read on the Washington Post, Vance dismisses watergate scandal, says
• 22:24
  Speaker 4: deep state went after Nixon. Vice president, says he admired Nixon,
• 22:28
  Speaker 4: drew parallels between the past president who resigned in nineteen
• 22:32
  Speaker 4: seventy four and Trump today.
• 22:35
  Speaker 3: All of it out loud. Listen to what he said.
• 22:38
  Speaker 10: If Watergate happened tomorrow, it would be like a twelve
• 22:41
  Speaker 10: hour news story. The idea that it would have taken
• 22:44
  Speaker 10: down a presidency is crazy.
• 22:46
  Speaker 6: And by the way.
• 22:47
  Speaker 10: If you look at the story of how the deep
• 22:52
  Speaker 10: state took down Richard Nixon, it's not all that different
• 22:56
  Speaker 10: from what the same groups of people, the same institutions
• 23:00
  Speaker 10: tried to do to Donald Trump in the first Trump administration.
• 23:03
  Speaker 6: There is a paralleg Wow.
• 23:07
  Speaker 4: Look, it's one thing to try to express sympathy for
• 23:11
  Speaker 4: Richard Nixon, maybe even the deep State, whatever you want
• 23:16
  Speaker 4: to do, But to then compare him to your current
• 23:19
  Speaker 4: boss is a strange move to make unless there is
• 23:26
  Speaker 4: a parallel. Jeanie, what do you make of this?
• 23:29
  Speaker 12: Yeah, and Joe, I have a question. Is he comparing
• 23:31
  Speaker 12: Donald Trump to Nixon?
• 23:32
  Speaker 13: Or is he comparing himself a vice president, you know,
• 23:36
  Speaker 13: surrounded by corruption, who doesn't do so well in sixty
• 23:40
  Speaker 13: but comes back strong.
• 23:41
  Speaker 12: So I don't know, JD. Vancer or whatever it is.
• 23:46
  Speaker 13: It is insane to sort of tease out why he
• 23:50
  Speaker 13: decided to talk at the library about Watergate in this way.
• 23:55
  Speaker 13: What political benefit is this to JD. Vance, except, of course, say,
• 24:00
  Speaker 13: I too can come back. But Joe, this has been
• 24:03
  Speaker 13: such an awkward, cringe worthy rollout of his book tour.
• 24:07
  Speaker 13: I'm sure you saw the knee tap that was heard
• 24:10
  Speaker 13: around the world with his lovely wife. I mean, from
• 24:14
  Speaker 13: start to finish, this thing has been awkward. So you know,
• 24:17
  Speaker 13: I'm stunned he raised it and then again looking at
• 24:20
  Speaker 13: the knee tap, and if people haven't seen it, you've
• 24:23
  Speaker 13: got to google it.
• 24:24
  Speaker 12: It's all a little bit cringe worthy. So I'm not surprised.
• 24:28
  Speaker 3: Genie always comes prepared, I swear, Rick. I don't know.
• 24:32
  Speaker 4: I'm not sure what to say about the book tour here,
• 24:36
  Speaker 4: but why call out your boss and compare him to
• 24:40
  Speaker 4: the only president who had to resign and scandal. It's
• 24:42
  Speaker 4: not just, of course, the break in and the plumbers
• 24:45
  Speaker 4: and all that, the enemy's list, the tapes, the anti
• 24:48
  Speaker 4: Semitic stuff.
• 24:48
  Speaker 3: I mean, how do we frame this well.
• 24:52
  Speaker 11: I don't want to look past the midterms, but I
• 24:55
  Speaker 11: for one, am really excited about the twenty twenty eight
• 24:58
  Speaker 11: presidential cycle because we can get this every day of
• 25:02
  Speaker 11: that cycle. I mean, it will be a circus, and
• 25:06
  Speaker 11: I want to take it to that.
• 25:08
  Speaker 6: Look.
• 25:08
  Speaker 11: I mean, is there this portends a really significant thing,
• 25:12
  Speaker 11: which is the culture and values we had in the
• 25:16
  Speaker 11: nineteen seventies is not the culture and values we have today.
• 25:19
  Speaker 11: I mean, these are guys who you know, they are
• 25:23
  Speaker 11: sending messages out to QAnon, they believe in conspiracy theories.
• 25:27
  Speaker 11: You know, they purge the Justice Department or to go
• 25:29
  Speaker 11: after their enemies. I mean, an enemies list with Nixon
• 25:33
  Speaker 11: was horrible, and an enemies list in the Trump administration
• 25:38
  Speaker 11: is applauded at every rally.
• 25:40
  Speaker 6: He even names names.
• 25:42
  Speaker 11: I mean, Nixon, you had to uncover this to find
• 25:44
  Speaker 11: out who his enemies were. Trump just tells you I'm
• 25:47
  Speaker 11: going after this list of people. And so I do
• 25:50
  Speaker 11: think it's something worth really understanding as to how different
• 25:55
  Speaker 11: the political culture is today. And what Vance said is
• 26:00
  Speaker 11: unfortunately the truth, which is things that were the violation
• 26:03
  Speaker 11: of the law. The present using you know, money to
• 26:06
  Speaker 11: silence people, burglaries to you know, try and win elections,
• 26:11
  Speaker 11: would not actually rise to the level of an impeachment
• 26:18
  Speaker 11: you know session in the Congress even today. So I
• 26:23
  Speaker 11: think it's actually a really sad moment because I think
• 26:26
  Speaker 11: what he's saying is more true than not, and it's
• 26:29
  Speaker 11: a horrible thing.
• 26:30
  Speaker 4: Wow, I'm so glad we brought this up. Then you're
• 26:33
  Speaker 4: just you guys are dead on here is there truth?
• 26:37
  Speaker 4: As Rick is saying, Genie, what was the line? If
• 26:40
  Speaker 4: Watergate happened tomorrow, it would be like a twelve hour
• 26:43
  Speaker 4: news story.
• 26:43
  Speaker 3: Is that the case?
• 26:46
  Speaker 13: I think it might be, but probably because we are
• 26:48
  Speaker 13: now desensitized to the level of corruption.
• 26:52
  Speaker 12: What is not true?
• 26:53
  Speaker 13: And I think has to have his Yale professors of
• 26:56
  Speaker 13: history sort of scratching their heads. I think he needs
• 26:58
  Speaker 13: to go back to Yale and take another history class.
• 27:01
  Speaker 12: Is that the deep state was going after Nixon?
• 27:04
  Speaker 13: Quite the contrary, It was Nixon using the deep state.
• 27:08
  Speaker 12: And the history is clear on this. This has been vetted,
• 27:12
  Speaker 12: this has been proven.
• 27:13
  Speaker 13: He was trying to use the deep state to go
• 27:16
  Speaker 13: after his political opponents. And guess what, it's the same thing.
• 27:21
  Speaker 13: Donald Trump is doing. You know, as we're all just
• 27:23
  Speaker 13: reading through the new Maggie Haberman and Jonathan Swan book,
• 27:27
  Speaker 13: there's a point there in which Donald Trump is talking
• 27:31
  Speaker 13: about Jerome Powell and says, in very colorful, off putting
• 27:35
  Speaker 13: language that I'll leave to you, Joe, you know, I
• 27:38
  Speaker 13: want his eth in something. And they talk about the
• 27:42
  Speaker 13: fact that he is.
• 27:43
  Speaker 12: You know, wants to go after him.
• 27:45
  Speaker 13: He wants to make his life miserable, and he's going
• 27:47
  Speaker 13: to do that any way he can. Can we use
• 27:49
  Speaker 13: this building, can we use the doj I mean, this
• 27:53
  Speaker 13: is what he's talking about.
• 27:54
  Speaker 12: So, you know, jd. Vance is trying.
• 27:57
  Speaker 13: To say that this is a deep state conspiracy on
• 27:59
  Speaker 13: both sides. It wasn't true about Nixon, it's not true here.
• 28:03
  Speaker 13: And we should all rewatch one of my favorite movies,
• 28:06
  Speaker 13: All the President's Men this weekend of great movie, great book,
• 28:10
  Speaker 13: Till and Go for journalists.
• 28:13
  Speaker 4: Social well mate to Janie's point, JD Vance, musing on
• 28:18
  Speaker 4: his own similarities to Nixon quote, young Senator vice President
• 28:22
  Speaker 4: writes some best selling books is hated by media. Kind
• 28:26
  Speaker 4: of sounds like JD. Vancy said, I've always liked Richard Nixon.
• 28:32
  Speaker 4: Our great panel is with us here on the Friday edition.
• 28:35
  Speaker 4: Stay with us on Balance of Power. We'll have much
• 28:37
  Speaker 4: more coming up after this.
• 28:42
  Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch
• 28:46
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• 28:49
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• 28:53
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• 28:56
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• 28:59
  Speaker 3: Friday. Trade start to improve here.
• 29:00
  Speaker 4: Maybe it will be in better shape as we get
• 29:02
  Speaker 4: closer to the bell, we'll see the news might impact this,
• 29:05
  Speaker 4: although so far no one seems to be blinking at
• 29:08
  Speaker 4: what's coming out of Iran. The President's saying that they
• 29:11
  Speaker 4: violated the ceasefire after shooting at a boat yesterday.
• 29:15
  Speaker 3: We told you about this.
• 29:16
  Speaker 4: WTI is still below seventy dollars a barrel, pretty remarkable.
• 29:21
  Speaker 4: The President making news on a couple of fronts here.
• 29:23
  Speaker 4: Bear with me before we bring in the Admiral. Numerous
• 29:26
  Speaker 4: European countries he just went up on this with truth
• 29:29
  Speaker 4: social have been discussing the imminent implementation of a digital
• 29:32
  Speaker 4: services tax on American companies. He've heard him talk about
• 29:35
  Speaker 4: this before. Some of these countries are close to actually
• 29:38
  Speaker 4: doing this. Please let this statement serve to represent that
• 29:42
  Speaker 4: any country that imposes such a tax, are you ready,
• 29:46
  Speaker 4: will immediately be met with a one hundred percent tariff
• 29:49
  Speaker 4: on any and all goods sent to the United States.
• 29:51
  Speaker 4: One hundred percent the tariff, he says, well, supersede trade
• 29:55
  Speaker 4: deals made with that country, whether implement it signed or not. Additionally,
• 29:59
  Speaker 4: one hundred percent terre we'll be immediately imposed if they proceed.
• 30:02
  Speaker 4: So you got that, Now you got the ceasefire. This
• 30:04
  Speaker 4: also came from Truth Social We actually haven't heard the
• 30:07
  Speaker 4: president talk yet today. He says, Iran shot at least
• 30:10
  Speaker 4: four one way attack drones it ships traversing the Strait
• 30:13
  Speaker 4: of Horror moves.
• 30:14
  Speaker 3: One of the drones.
• 30:15
  Speaker 4: Solidly hit the upper deck of a large and very
• 30:17
  Speaker 4: expensive cargo carrying ship. Damage done, he says, the ship
• 30:20
  Speaker 4: was able to proceed on its way. We knocked down
• 30:22
  Speaker 4: three other drones, a foolish violation of our cease fire agreement,
• 30:29
  Speaker 4: and talked about Iran and the Rose Garden, I should
• 30:33
  Speaker 4: call it the Rose Garden Club right last evening, flanked
• 30:36
  Speaker 4: by the American flags.
• 30:37
  Speaker 5: Listen, they want to make a deal with us very badly,
• 30:41
  Speaker 5: and we probably will. I think we will.
• 30:44
  Speaker 6: But the Strait is open.
• 30:46
  Speaker 5: Yesterday they took out nineteen million barrels of oil. That's
• 30:50
  Speaker 5: the most in the history of the Strait. And the
• 30:52
  Speaker 5: oil prices are dropping like a rock. And you know,
• 30:54
  Speaker 5: as goes oil, so goes everything else well, and.
• 30:59
  Speaker 4: Oil is lower still today. Deeply curious to hear what
• 31:02
  Speaker 4: the admiral has to think. We're lucky to have him
• 31:04
  Speaker 4: back today. Retired Admiral Mark Montgomery, former Destroyer Squadron Commander,
• 31:09
  Speaker 4: US Navy, Senior Fellow of the Center on Cyber and
• 31:12
  Speaker 4: Technology Innovation Foundation for Defensive Democracies. It's great to see you, sir,
• 31:16
  Speaker 4: Welcome back to Bloomberg. When you hear the President say
• 31:19
  Speaker 4: something like this and you now confirm the attack on
• 31:22
  Speaker 4: the cargo ship, does it make you think we're going
• 31:25
  Speaker 4: back to war?
• 31:29
  Speaker 6: This is a complex issue.
• 31:30
  Speaker 14: I think as a military officer, I would recommend a
• 31:33
  Speaker 14: proportionate counter strike against the drone launching areas of the IRGC,
• 31:39
  Speaker 14: you know, in around Bandera Bass or around the Strait
• 31:42
  Speaker 14: of hor Moves. But politically, the President really wants this
• 31:47
  Speaker 14: piece deal to pursue the negotiations to proceed. I think
• 31:51
  Speaker 14: he'll probably my gut reactions, you know, let this one go,
• 31:56
  Speaker 14: you know, and look what we're talking about here is
• 31:58
  Speaker 14: the Southern transit ski, the one we've been using since
• 32:01
  Speaker 14: about April second. We were getting through about a million
• 32:04
  Speaker 14: or two million barrows a day, so the ceasefire was assigned.
• 32:07
  Speaker 14: Then it was about nine million barrows a day. As
• 32:09
  Speaker 14: the President said, there was a big day yesterday. I'm
• 32:11
  Speaker 14: not sure it was a record. I think I've seen
• 32:13
  Speaker 14: higher numbers in that. But in any case, back to
• 32:15
  Speaker 14: normal flow yesterday. This is a transit scheme, generally mine
• 32:22
  Speaker 14: swept by the United States, protected by US aircraft and
• 32:25
  Speaker 14: ships on the edges of it. But you know, clearly,
• 32:29
  Speaker 14: you know, it's shot down a lot of drones over
• 32:31
  Speaker 14: the last four weeks, but clearly one here got through
• 32:35
  Speaker 14: hit a ship. The good news is, as he avert
• 32:38
  Speaker 14: to there, many of the drones have small explosive amounts
• 32:41
  Speaker 14: in them, so if they hit a superstructure the top
• 32:44
  Speaker 14: part of a ship known as a superstructure, you can
• 32:47
  Speaker 14: get the fire out quick, then the damage is minimal
• 32:49
  Speaker 14: to moderate.
• 32:52
  Speaker 4: Iron seems convinced it's going to be able to charge fees.
• 32:55
  Speaker 4: We don't call them tolls, which is a little bit
• 32:57
  Speaker 4: too cute. For most people, admirble, But I'm wondering what
• 33:00
  Speaker 4: you see is the future for the Straight. Could we
• 33:02
  Speaker 4: be in a world where these three separate routes are
• 33:04
  Speaker 4: maintained by three separate entities.
• 33:08
  Speaker 6: No, I don't think so.
• 33:09
  Speaker 14: I think Look, if they decide to charge transit scheme
• 33:13
  Speaker 14: through the northern transit lane, the one between Iranian islands
• 33:17
  Speaker 14: in Iran.
• 33:18
  Speaker 6: They may be able to get away with that.
• 33:20
  Speaker 14: But what happened is the only ships that are going
• 33:22
  Speaker 14: through there are the ones going to Iranian ports and
• 33:25
  Speaker 14: then ones going to other ports, you know, Katar, Kuwait,
• 33:28
  Speaker 14: Sadi Arabia, Emirates that go through the southern transit scheme.
• 33:32
  Speaker 14: I think we can keep Oman from violating international law
• 33:36
  Speaker 14: and going along with Iran, but that's going to talk.
• 33:38
  Speaker 14: I mean a lot of talks with them on But
• 33:40
  Speaker 14: I also tell you the other big deal is the
• 33:43
  Speaker 14: Saudis are going to build a second cross cross peninsula
• 33:47
  Speaker 14: from east to west pipeline, as is the United Emirates
• 33:51
  Speaker 14: a second one down to Fujaira outside the Straight of Hormus.
• 33:56
  Speaker 6: And you know they're not limited by like environmental impact
• 33:58
  Speaker 6: statements in osha An EPA.
• 34:01
  Speaker 14: They're going to be built fast, and once they do
• 34:04
  Speaker 14: it in a weird way by this overplay by Iran,
• 34:09
  Speaker 14: they will they're frittering away their leverage. This leverage will
• 34:13
  Speaker 14: expire when more pipelines are complete.
• 34:18
  Speaker 3: Fascinating.
• 34:18
  Speaker 4: Could we end up in a world and I know
• 34:20
  Speaker 4: you're not an energy analyst, Admiral, but you sure see
• 34:22
  Speaker 4: to know what you're talking about every time we get
• 34:23
  Speaker 4: together on this. When it comes to the oil industry,
• 34:27
  Speaker 4: could we be in a world where we create in
• 34:30
  Speaker 4: irrelevant straight or form most can you re route that
• 34:33
  Speaker 4: much oil?
• 34:34
  Speaker 14: So I think it has to separate it to crude
• 34:39
  Speaker 14: other oils LNG look financial gas and fertilizer, the other ones,
• 34:45
  Speaker 14: the non crude are going to.
• 34:46
  Speaker 6: Probably still have to come to the strait.
• 34:48
  Speaker 14: So I wouldn't call it irrelevant, but I would call
• 34:51
  Speaker 14: it less urgent or let you know, let let you know,
• 34:54
  Speaker 14: there's a lower ability to you know, drive an international
• 34:57
  Speaker 14: crisis because as we found out during this there other
• 35:00
  Speaker 14: sources of LNG, particularly the United States, can step in it.
• 35:03
  Speaker 14: We may be slightly more expensive than Kuwaiti or Katari LNG,
• 35:09
  Speaker 14: but when we're available, we're one hundred percent available because
• 35:13
  Speaker 14: no one's blockading our ports.
• 35:15
  Speaker 3: What's your thought.
• 35:16
  Speaker 4: On the status of Armada, of this massive fleet that
• 35:20
  Speaker 4: we have that was conducting the blockade. Of course, we've
• 35:23
  Speaker 4: got we've had multiple carrier strike groups there. We've got
• 35:26
  Speaker 4: I think fifty thousand men and women still in the region,
• 35:28
  Speaker 4: and we know that a lot of these deployments are extended.
• 35:31
  Speaker 4: We've talked about this before, Admiral. Do they all need
• 35:33
  Speaker 4: to stay in place for the balance of this sixty
• 35:35
  Speaker 4: day period.
• 35:37
  Speaker 6: Yes, and probably beyond.
• 35:39
  Speaker 14: You know, there's going to be about four sixty day
• 35:41
  Speaker 14: periods to get us at least passed early to mid November,
• 35:45
  Speaker 14: and then the President might have a different decision making matrix,
• 35:48
  Speaker 14: but I will tell you maybe a more aggressive decision
• 35:50
  Speaker 14: making matrix. But the aircraft, the Air Force squadrons that
• 35:56
  Speaker 14: are on the peninsul, on the Arabian Peninsula, and the
• 35:59
  Speaker 14: two Navy carriers groups and the seventeen or eighteen destroyers
• 36:02
  Speaker 14: are all critical, and so we're going to maintain those.
• 36:06
  Speaker 6: But will rotate the actual ships through there.
• 36:10
  Speaker 14: You know, we have eighty destroyers in the Navy, only
• 36:12
  Speaker 14: seventeen are there, so we have an ability to do that.
• 36:15
  Speaker 14: I will tell you if this goes on more than
• 36:17
  Speaker 14: another six months. There will be a long term impact.
• 36:20
  Speaker 14: The Navy will be able to do the mission for
• 36:22
  Speaker 14: the next year year and a half, but then three
• 36:25
  Speaker 14: years from now the Navy and the Air Force fighter
• 36:28
  Speaker 14: squadrons that are also playing in this are going to
• 36:31
  Speaker 14: have a significant readiness thing.
• 36:34
  Speaker 3: How's morale out there? What are you hearing from your contacts?
• 36:37
  Speaker 14: Look, they want to be on I have lots of
• 36:39
  Speaker 14: friends out there, relatives. They want to be on mission.
• 36:44
  Speaker 14: Every military soldier, sailor, eman, marine guardian wants to be
• 36:49
  Speaker 14: on mission. The ones in the Arabian Golf, the ones
• 36:52
  Speaker 14: in the Arabian Peninsula are on mission. So I think
• 36:55
  Speaker 14: morale is, you know, as one would expect, you know,
• 37:00
  Speaker 14: high at getting to do execute mission.
• 37:03
  Speaker 4: Well, we're so lucky to have this incredible volunteer Military Force. Admiral,
• 37:09
  Speaker 4: I have to ask you about reports this week the
• 37:12
  Speaker 4: Secretary of Defense, Pete hegg Seth forced out the man
• 37:16
  Speaker 4: who many people know is the last American service member
• 37:18
  Speaker 4: on the ground in the evacuation of Kablo. Is a
• 37:21
  Speaker 4: very famous night vision photograph of him walking up the
• 37:26
  Speaker 4: ramp the back of a military transport aircraft. Last boots
• 37:30
  Speaker 4: on the ground heg Seth forced out General Chris Donahue,
• 37:36
  Speaker 4: reportedly a fierce and beloved leader of our armed forces.
• 37:42
  Speaker 4: The brain drain at the Pentagon is real. Why did
• 37:44
  Speaker 4: this have to happen?
• 37:46
  Speaker 14: And this is a real own goal, a big mistake
• 37:48
  Speaker 14: by Setary HeiG Say so first, I'll say CD is
• 37:51
  Speaker 14: a Delta Force commander, eighty second airborne commander. He is
• 37:55
  Speaker 14: a soldier, soldier, strong leader. I spent a lot of
• 37:58
  Speaker 14: time in Ukraine working with their military. I learned a
• 38:00
  Speaker 14: lot about drones. When I come out. The one US
• 38:03
  Speaker 14: general that really senior officer that really understood drone warfare
• 38:07
  Speaker 14: correctly and how to counter drones was General General Donahue.
• 38:12
  Speaker 14: You know, so, from my perspective, this is a big
• 38:15
  Speaker 14: loss the army. I don't know what his next job
• 38:18
  Speaker 14: should have been, but I know he should have had
• 38:20
  Speaker 14: another job where we could use his talents leading us.
• 38:24
  Speaker 14: And he's you know, he's among about a dozen to
• 38:28
  Speaker 14: fifteen senior you know, three and four star admirals and
• 38:31
  Speaker 14: generals removed from service without explanation by Secretary Hegseth. And
• 38:37
  Speaker 14: I think this weakens our national security with no obvious payoff.
• 38:43
  Speaker 4: What's the House cleaning all about if we're losing this
• 38:47
  Speaker 4: much experience, is it a loyalty test?
• 38:50
  Speaker 14: I think for some of them, the initial ones, like
• 38:51
  Speaker 14: the head of our Navy, Admiral Frank Kenny. She's fantastic.
• 38:54
  Speaker 14: I'd known her for thirty five years. She was the
• 38:56
  Speaker 14: best version of the job. But she was a woman,
• 38:59
  Speaker 14: and Secretary Headset made it clear in his twenty four
• 39:02
  Speaker 14: book that he didn't have a lot of respect for her,
• 39:05
  Speaker 14: or in general, for women serving in combat, and so
• 39:09
  Speaker 14: I think he has a issue with that. It's misplaced.
• 39:13
  Speaker 14: Anything he puts in place now will be changed by
• 39:16
  Speaker 14: his successor. We absolutely need the fifty one percent of
• 39:20
  Speaker 14: our society that's female to be an important part of
• 39:24
  Speaker 14: our military across all services, in combat, in support roles
• 39:29
  Speaker 14: and everything. This is really misplaced effort by the Secretary
• 39:33
  Speaker 14: of Defense.
• 39:35
  Speaker 4: I really appreciate you weighing in on that, Admiral, and
• 39:37
  Speaker 4: it's always pleasure to spend some time with you. Thank you,
• 39:39
  Speaker 4: Retired Rear Admiral Mark Montgomery, US Navy Foundation for Defense
• 39:44
  Speaker 4: of Democracies. Thanks for listening to the Balance of Power podcast.
• 39:50
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• 39:53
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• 39:56
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• 39:59
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